Awaits 'Explanation' Of FAA Funding Proposal, Including User Fees

The Fiscal Year 2008 (FY2008) budget submitted to Congress Monday by President Bush continues to stir comments from aviation letter groups, with National Air Transport Association President James K. Coyne the latest to weigh in on the controversial plan.

Coyne (above) says the budget request would cut the Airport Improvement Program (AIP) by nearly $800 million from its current enacted level. The budget proposes funding the popular program at a level of $2.75 billion, compared to the $3.5 billion under which the program currently operates. The overall FAA budget request of $14 billion is slightly more than the $13.8 billion requested last year.

"We are disappointed that, once again, the President’s budget request significantly underfunds FAA programs, including the critical Airport Improvement Program," Coyne told ANN. "By shortchanging such a valuable program, the Administration guarantees that large airports will receive a disproportionate amount of AIP funds at the expense of rural and general aviation airports. Such a low funding level would essentially eliminate support for general aviation airports within AIP, a program that for some airports is the only guaranteed funding they receive. It is imperative that Congress restores AIP funding to a level of at least the $3.5 billion currently in place."

Coyne states the proposal calls for radical changes to the Federal Aviation Administration's (FAA's) funding stream, including the elimination of passenger ticket taxes in favor of a "user fee" system. The details of the new financing plan were not released, and are expected to be submitted to Congress sometime this month as part of the FAA's reauthorization proposal.

"We also have concerns regarding the FAA's proposal to alter the current trust fund financing system radically in favor of a new, user fee system," Coyne said. "The current system of excise and fuel taxes has proven successful for decades, and trust fund revenues continue to increase. Before this radical proposal can be seriously considered, the FAA must answer important questions about its plan, including providing more information regarding the agency's blueprint for modernizing the air traffic control (ATC) system. The FAA also needs to demonstrate to all aviation stakeholders that the economic impact of a new user fee system will not cripple or unfairly disadvantage any sector of the aviation industry. The ATC system as it exists today is the safest and most efficient in the world and, so far, I have yet to see a strong argument to support radical change in how it is financed."

"Nevertheless, I look forward to reviewing the FAA's new funding proposal," Coyne concluded. "We will carefully evaluate the FAA's new plan, and analyze the financial impact the proposal would have on all NATA members. We look forward to sharing the real-world result of that economic analysis with the FAA and Congress as we move forward with the FAA reauthorization process."

FMI: www.nata.aero