Sat, May 01, 2010
Flight Schools Being Regulated Like Private Colleges And Trade
Schools
NATA President James K. Coyne
(pictured) addressed California Governor Arnold Schwarzenegger
this week in a letter asking that the state reconsider its
inclusion of flight training providers in regulations issued by the
Bureau of Private Post Secondary Education. These regulations are
designed to ensure that students attending private colleges and
trade schools are treated fairly and receive a quality
education.
Proposed regulations issued by the bureau would require that
affected flight training facilities, those with commercial pilot
programs, submit an application for approval to operate within the
state along with a $5,000 application fee. In order to receive
approval to operate, a flight training facility would also have to
submit third-party audited financial statements showing that the
company has at least a 1:1 asset to debit ratio, remit 0.75% of its
annual revenue to the California Student Tuition Recovery Fund and
comply with numerous other administrative and recordkeeping
requirements.
In his letter to Governor Schwarzenegger, Coyne points to the
differences between the small businesses that provide flight
training and the entities that the bureau was designed to
regulate.
"One of the most burdensome requirements is that these flight
training providers must submit audited financial statements
demonstrating a 1:1 asset to liabilities ratio. Like most other
small businesses, flight training providers do not have the
resources or staff time available to submit to annual audits,"
Coyne concluded. "These providers cannot bear the cost of the[se]
new regulations. [and] will be forced to leave the state.
California cannot afford the cost of imposing unreasonable
regulations on such a unique and valuable industry."
Under the current regulations, affected flight training
providers must submit their first quarter Student Tuition Recovery
Fund payments by May 17th and must submit their application for
approval to operate along with the $5,000 fee by August of this
year.
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