The five-member governing board for the Port of Los Angeles on Thursday adopted a $977 million 2011-2012 fiscal year budget, a 7.4 percent or $67 million increase from 2010-2011 FY budget.
The budget increase, according to port officials, reflects higher total receipts from both operations and grants activity, which in turn allowed greater appropriations for both operations and capital projects in comparison to the current fiscal year budget.
“Local, national and global economies have regained stability and forward momentum,” Los Angeles Harbor Commission President Cindy Miscikowski said. “This year’s port-approved budget strikes the right balance between ensuring competitiveness and financial strength, but with a disciplined use of resources to achieve these objectives.”
“Our budget plan supports the long-term vision for the Port, with priorities based on collaborative input from our divisions and board members,” Port Executive Director Geraldine Knatz said. “Together, we have developed a fiscally responsible plan that will establish and maintain competitive operations, build stronger customer and community relationships, and enhance our organization’s financial strength for the future.”
During the 2010-2011 FY, the port remained the Western Hemisphere's busiest container port, posting a 16 percent increase in containerized cargo.
The port’s 2011-2012 FY budget projects operating revenues of $405.4 million, close to 2010-2011 FY levels. The new budget also projects a $23.2 million, or 2.3 percent decrease, in total estimated expenditures from the current fiscal year.
With a port goal of maintaining competitive operations, the new budget sets a capital budget of $291 million, including $10.7 million in terminal improvements at the TraPac Container Terminal and $5.6 million at the Berth 301-306 APL facility. Another $45 million in the capital budget is allocated for L.A. Waterfront project construction, and $44 million for surface transportation infrastructure to improve goods movement for both commercial and noncommercial users of port-owned and non-port-owned roads.
The new budget also projects the port spending approximately $7.2 million environmental efforts related to the port's Clean Air Action Plan, including $2.7 million for the Clean Truck Program, $2.5 million for the Vessel Speed Reduction Program, $1.5 million for the Technology Advancement Program, and $500,000 for the TraPac AMP ship-to-shore power demonstration project.
The port board also approved $24 million to enhance port security and protection, including projects for Port Police surveillance, threat detection, and criminal activity detection, deterrence and apprehension.
