Throwback Thursday: FAA Wasted $135 Million On Vacant Land
In 1985, the Federal Aviation Administration wasted $48 million – about $135 million in 2023 dollars – by letting Florida airports allow valuable land to sit idle, while leasing other land for below market prices.
Sen. William Proxmire, a Democrat from Wisconsin, awarded the FAA his Golden Fleece Award for this financial malpractice.
According to Proxmire, a policy of allowing small airports to use surplus federal land and buildings began in 1944. The policy was meant to help up-and-coming airports pay their operating costs under the supervision of the FAA.
Unfortunately, Florida airports began accumulating land without a clear use for it. By 1985, 23 Florida airports had accumulated 9,300 acres of unused government property worth $32 million per year that could have been leased for a profit.
On the land these airports did lease, they did so at below-market rates. In one case, an airport leased out 417 acres for use as a golf course and stables. The market rate was $14,000 per acre, but the airport charged only $240 an acre. In another example, land was rented to a speedway at $11 per acre while fair market value was $8,000 an acre.
While airports lost millions on the rentals, the 23 airports involved in this boondoggle received $112 million in federal grants, Proxmire found.
Beneficiaries of special government benefits like airports have a responsibility to ensure taxpayers’ money and assets are being used wisely, and the government must ensure strong oversight is in place so bad deals like this don’t happen.
The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com
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