FAA Blocks LAX's Use of Funds
By Steve Hymon
Times Staff Writer
May 19, 2006
The Federal Aviation Administration told Los Angeles International Airport officials this week that they cannot use $3.3 million in airport revenues for an LAX jobs program meant to attract residents affected by airport operations.
The program is a key part of the city of Los Angeles' settlement last year with residents who had sued over plans to renovate the airport. The idea is to use the program to hire people from neighborhoods most affected by LAX air and ground traffic.
(snip)
Airport officials were going to use their own revenues to fund the program. The problem is that LAX receives federal money for improvement projects and therefore must comply with a law that prohibits it from using its own revenues on anything other than aviation activities.
In the agency's letter, officials from the FAA's regional office stated that those activities do not include "general economic development, marketing and promotional activities, that are unrelated to the airport."
(snip)
http://www.latimes.com/news/printedition/california/la-me-lax19may19,1,3626645.story?coll=la-headlines-pe-california