Praises Increased Funding For NextGen Transition, Absence Of User Fees

The NBAA said Monday that the Obama Administration's Fiscal Year 2012 budget strengthens the national aviation system and preserves funding for small and mid-size airports without imposing new, onerous user fees.

"While it will take time to analyze the full impact of the president's budget, upon initial review, NBAA is encouraged that it demonstrates a commitment to maintaining a national network of airports of all sizes across the country and increases funding for the transition to a Next Generation ("NextGen") air transportation system while relying on the proven and efficient fuel tax instead of user fees," said NBAA President and CEO Ed Bolen in a news release.

While President Obama's FY2012 budget decreases some Airport Improvement Program funding, it preserves crucial funding for small and mid-size public-use airports. By setting aside $1.1 billion for NextGen - an increase of $347 million over 2010 funding levels - the president's budget also shows a commitment to air transportation system modernization.

The president's budget proposal comes as Congress also continues work on reauthorization legislation for theFAA. Last week, the Senate Finance Committee approved its version of FAA reauthorization legislation, and the full Senate is expected to take up the comprehensive bill this week. The bill would increase taxes on Jet-A fuel to 35.9 cents per gallon - instead of imposing user fees - to help fund aviation system modernization. Also last week, the House Transportation and Infrastructure Committee's Aviation Subcommittee held hearings on FAA reauthorization, for which Bolen submitted written testimony, and work continued on a House reauthorization bill.

"As Congress and the administration consider funding and modernization for the nation's aviation system, we're encouraged that the proposals we've seen so far, including the president's FY2012 budget, reflect an understanding of the value and priorities of business aviation," said Bolen. "We look forward to working with Congress and the Administration to keep America's aviation system the safest, largest and most efficient in the world."

FMI: www.nbaa.org