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FAA Funding

FAA Funding. Who Currently Pays. Who Currently Pays. The Aviation Trust Fund is utilized to cover approximately 75% of the costs of operating the National Airspace System (NAS) & maintaining the Public Use Airports Taxes on GA fuel Taxes on commercial airline passengers

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FAA Funding

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  1. FAA Funding

  2. Who Currently Pays

  3. Who Currently Pays • The Aviation Trust Fund is utilized to cover approximately 75% of the costs of operating the National Airspace System (NAS) & maintaining the Public Use Airports • Taxes on GA fuel • Taxes on commercial airline passengers • Taxes on air-freight packages • The remaining 25% comes from the General Fund

  4. What Happened Current funding mechanism expires Sep. 30, 2007 March 07, FAA proposed new budget titled Next Generation Air Transportation System Financing Reform Act of 2007 It was supposed to help modernize the FAA Key features • Tax break for airlines • Huge tax increase on GA fuel • User fees for GA • Turn over management of airspace to body made up largely of airline personnel • Greatly reduce AIP funding • AOPA testimony

  5. At Risk • U.S. has largest aviation fleet in the world • U.S. has more airports than anyplace else in the world • Current funding method has worked for past 40 years • Stability of ATC system • US ATC personnel handle more aircraft, safer and at a lower per/unit cost than anywhere else in the world.

  6. Issues • FAA wants to modernize and claims to not have enough money to do so under current funding method • FAA (and Bush Administration) want user fees enacted • Airlines want a tax break • Airlines want GA to pay MUCH more • Airlines want to control airspace • GA community doesn’t want a significant change

  7. Currently • Senate bill S.1300 includes $25.00 user fee for turbine GA aircraft • House bill H.R. 2881 is supported by many GA users except for • Re-negotiate with controllers • Authorization for Fed-Ex drivers to unionize

  8. Currently • House Ways and Means committee has jurisdiction over all taxes • Last week they • voted to keep all airline taxes as-is • Increase avgas tax from 19.3 to 24.1 cent/gal • Increase jet fuel tax from 21.8 to 35.9 cents/gallon

  9. Currently This week congress will likely extend the current authorization through the end of this year. H.R. 2881 finished for the time being Senate Majority Leader Harry Reid (D-Nev.) will schedule a time for S.1300 to be debated on the Senate floor. That probably won’t happen until mid-October. Once S.1300 is approved by the Senate, a conference committee will be appointed by members of each House. The conference committee will iron out the differences between the two bills

  10. What would User Fees be Like? • The Trip • Michael Erb • Steve Copeland • British Flight School

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