GARY | The Gary/Chicago International Airport plans to join a host of other taxing units statewide in appealing its tax cap to the Indiana Distressed Unit Appeal Board.

The state-mandated caps on local property tax bills will shave $780,000 off the airport's tax levy, an amount which will put the airport perilously close to cutting essential services, airport Director Chris Curry said.

Airport officials in July proposed a tentative general budget of about $3.1 million for 2009 -- a 15 percent cut from this year's budget of about $3.6 million.

A budget of that size would leave the airport financially exposed if it runs into unexpected equipment outages, an emergency situation or even severe winter, Curry said.

"Under that concept, nothing unexpected can happen," Curry said after Thursday's airport authority board meeting.

While the effect of state-mandated tax caps on cities such as Gary and East Chicago has grabbed headlines, other taxing entities such as airports, libraries and special purpose districts will also feel the pinch.

The airport will make up for much of the $780,000 shortfall by covering some expenses with revenue received from the City of Chicago under its bi-state airport agreement, Curry said. It also is considering raising fuel fees and landing fees.

The airport also has started taking advantage of opportunities to raise revenue, such as the Gary South Shore Air Show and the Chicago Air Show, Curry said. The airport is the base for all aircraft used in the two shows.

The airport raised $10,900 from parking fees for the "pre-shows" the airport hosts for each show. It also raised $1,000 from charging food concessionaires and another $1,000 by selling T-shirts this year.

When all expenses were tallied up, including that for a public communications system and portable toilets, the airport made about $1,500, according to airport figures.

GARY | The Gary/Chicago International Airport plans to join a host of other taxing units statewide in appealing its tax cap to the Indiana Distressed Unit Appeal Board.

The state-mandated caps on local property tax bills will shave $780,000 off the airport's tax levy, an amount which will put the airport perilously close to cutting essential services, airport Director Chris Curry said.

Airport officials in July proposed a tentative general budget of about $3.1 million for 2009 -- a 15 percent cut from this year's budget of about $3.6 million.

A budget of that size would leave the airport financially exposed if it runs into unexpected equipment outages, an emergency situation or even severe winter, Curry said.

"Under that concept, nothing unexpected can happen," Curry said after Thursday's airport authority board meeting.

While the effect of state-mandated tax caps on cities such as Gary and East Chicago has grabbed headlines, other taxing entities such as airports, libraries and special purpose districts will also feel the pinch.

The airport will make up for much of the $780,000 shortfall by covering some expenses with revenue received from the City of Chicago under its bi-state airport agreement, Curry said. It also is considering raising fuel fees and landing fees.

The airport also has started taking advantage of opportunities to raise revenue, such as the Gary South Shore Air Show and the Chicago Air Show, Curry said. The airport is the base for all aircraft used in the two shows.

The airport raised $10,900 from parking fees for the "pre-shows" the airport hosts for each show. It also raised $1,000 from charging food concessionaires and another $1,000 by selling T-shirts this year.

When all expenses were tallied up, including that for a public communications system and portable toilets, the airport made about $1,500, according to airport figures.