--- In BATN@xxxxxxxxxxxxxxx, "9/27 SF Examiner" <batn@xxxx> wrote: Published Tuesday, September 27, 2005, in the San Francisco Examiner SFO nears spending cuts Slashed funds could be spent on new cargo facility By Jo Stanley A San Francisco International Airport plan to slash capital spending over the next few years and use some of the savings to upgrade cargo facilities won initial backing Monday, when a supervisors' committee recommended that the full board approve it. But Supervisor Aaron Peskin, who chairs the Government Audits and Oversight Committee, was in no rush to release $25 million for Phase 1 of the Westfield Cargo redevelopment and suggested placing nearly all of it on reserve. Only $185,000 would initially be released upon approval by the Board of Supervisors for the publicly financed project, which would eventually replace and expand outdated cargo facilities,. Ben Kutnick, the airport's head of finance, explained that no new bond debt would be issued until 2007 under the latest plan that slashes five years' worth of spending through July 2009 from $901 million to $731 million. Eight projects, including an underground terminal tunnel lobby and employee transportation projects, are now deemed outdated and are being eliminated. Along with the impact of principal tenant United Airlines' bankruptcy, the reductions are part of the ongoing legacy of Sept. 11 terror attacks on the East Coast. "After 9/11," Kutnick said," all capital projects with the exception of safety and security projects were delayed." The cutbacks also include the official defunding of a controversial runway project. Roughly $125 million stayed in an account, but wasn't spent, for a project to fill portions of the bay to widen and separate runways. That project cost San Francisco International Airport more than $75 million before being halted due to concerns about environmental damage and lack of accountability. The $125 million for runways is one of the 8 projects being officially eliminated. Kutnick, who assumed his duties only recently, said he didn't know why the large amount wasn't removed from the runway account after supervisors ordered the defunding. "I hate passing laws that people don't comply with," Peskin said, adding that he found it perplexing that an outside audit of the agency had failed to note the mistake. "I would think that $125 million that was deappropriated would kind of show up," he said. Monique Zmuda, of the city controller's office, said she'd make sure this time. "We'll be checking the day after it's approved," she said. With a staggering $4.2 billion debt load, the airport has recently settled some of its financial uncertainties with United and seen its bond rating upgraded from "negative outlook" to "stable." SFO spokesman Mike McCarron said cargo business has "popped back up" but hasn't yet reached pre-Sept. 11 levels, so the cargo facilities would be upgraded gradually as needed. E-mail: jstanley@xxxx --- End forwarded message ---