Our Views: Airport plan needs study
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When lawmakers can’t reach consensus, they often authorize more study before moving ahead. While that gesture isn’t always productive, we believe it was the right thing to do about a proposal to have the state buy and operate Louis Armstrong New Orleans International Airport.
Legislation approved in the recent session of the Legislature would establish a panel to determine the value of the airport property and govern the airport if it were sold to the state. The panel also could have a hand in developing a possible finance mechanism for the state to purchase the airport.
Louisiana Speaker of the House Jim Tucker wants the state to buy and operate the airport, and a number of business leaders in New Orleans and Baton Rouge seem to think that’s a good idea.
That support aside, we think the governor, lawmakers and the public should think carefully about this proposal before going forward.
Tucker, R-Terrytown, said that because the airport is run by New Orleans but operates in the nearby suburb of Kenner, expansion of the airport has been difficult.
The assumption is that the state also would have more money to improve and expand the airport.
But the details of how much the state would pay for the airport and where the money for the purchase would come from are still vague. These are important questions, and they should not be explored in haste.
Tucker has suggested the state could pay about $500 million to the city. The state could finance the purchase with bonds that could be paid off over 20 years using gambling revenue. Tucker said the sale would give New Orleans millions of dollars for hurricane recovery.
That might be a good deal for New Orleans, but what are the precise benefits for the state and its economy from a state takeover of the airport? And how predictable is the gambling revenue on which a deal might be based? Whatever the terms of such a deal, the state would be on the hook for a lot of money.
This idea could very well benefit Louisiana’s economic development climate far beyond New Orleans. But Louisiana’s taxpayers need to know in greater detail what they stand to gain or lose in the bargain, which is why we hope officials will take their time in reviewing this plan.
Legislation approved in the recent session of the Legislature would establish a panel to determine the value of the airport property and govern the airport if it were sold to the state. The panel also could have a hand in developing a possible finance mechanism for the state to purchase the airport.
Louisiana Speaker of the House Jim Tucker wants the state to buy and operate the airport, and a number of business leaders in New Orleans and Baton Rouge seem to think that’s a good idea.
That support aside, we think the governor, lawmakers and the public should think carefully about this proposal before going forward.
Tucker, R-Terrytown, said that because the airport is run by New Orleans but operates in the nearby suburb of Kenner, expansion of the airport has been difficult.
The assumption is that the state also would have more money to improve and expand the airport.
But the details of how much the state would pay for the airport and where the money for the purchase would come from are still vague. These are important questions, and they should not be explored in haste.
Tucker has suggested the state could pay about $500 million to the city. The state could finance the purchase with bonds that could be paid off over 20 years using gambling revenue. Tucker said the sale would give New Orleans millions of dollars for hurricane recovery.
That might be a good deal for New Orleans, but what are the precise benefits for the state and its economy from a state takeover of the airport? And how predictable is the gambling revenue on which a deal might be based? Whatever the terms of such a deal, the state would be on the hook for a lot of money.
This idea could very well benefit Louisiana’s economic development climate far beyond New Orleans. But Louisiana’s taxpayers need to know in greater detail what they stand to gain or lose in the bargain, which is why we hope officials will take their time in reviewing this plan.
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