General Aviation Unfairly Overlooked

Editor's Note: On Tuesday, we put out the call for several aero-organizations to weigh in on President Bush's fiscal year 2007 budget -- specifically, in how it relates to the FAA and aviation interests as a whole. Today, we present the National Air Transportation Association's response, unedited (except for highlighted portions of interest, in bold type) below.

Stay tuned to ANN as we present more views on what the 2007 budget holds for the world of aviation.

National Air Transportation Association (NATA) President James K. Coyne called the FY 2007 budget released earlier this week by the White House a poorly timed retreat from the nation's responsibilities to aviation at a time when the air transportation industry needs to advance most.

The President's budget would fund the Federal Aviation Administration (FAA) at a level of $13.7 billion for the year, down from $14.3 billion approved by Congress last year. Both the Facilities and Equipment and Research and Development accounts would experience cuts in funding.

"We are disappointed that the President's budget has wrongly shortchanged America's air transportation system," Coyne said. "To curb aviation spending at a time when more people than ever are returning to the skies and aviation trust fund balances are sharply rising will slow national economic growth, particularly in rural America. To increase economic activity and further improve the quality of life in our nation, it is imperative that Congress fully fund the FAA's Facilities and Equipment and Research and Development budgets so the FAA can plan for the future of American air transportation. There are sufficient funds from the aviation trust fund to accomplish this goal.

Among the programs hit the hardest is the Airport Improvement Program, which would be funded at a level of $2.75 billion for the year, compared to $3.5 billion approved by Congress last year, and $3.7 billion congressionally authorized for FY07. The proposed budget would have a disproportionate effect on general aviation businesses and pilots. Many of the cuts, including a complete elimination of the Small Community Air Service Program, will stifle air service to rural America, where air transportation is the most efficient means of travel.

"The FAA must look to improving the nation's aviation infrastructure at all facilities, including small communities where general aviation plays a critical role," said Coyne.

NATA also is wary of any attempt to impose a user fee system on the aviation industry. Although the President's budget does not call for the implementation of any FAA user fees in FY07, the Administration has left the door open for the introduction of fees in the future.

The budget released by the White House proposes to remove the protection against aviation user fees included in the FY06 Transportation Appropriations bill signed into law last fall. Additionally, at a briefing discussing the Department of Transportation"s FY07 budget on Monday, Transportation Secretary Norman Y. Mineta reiterated the Administration's position that a new funding structure is needed and that the current system of excise taxes based on ticket prices would need to be restructured. Mineta said that the department would release the new proposal sometime this spring.

"NATA will vigorously oppose any FAA funding proposal that relies on user fees and the association will fight such a proposal on Capitol Hill. User fees are the wrong way to raise revenues to fund the air traffic control system and have the potential to wreak havoc on the general aviation industry, resulting in fewer Americans flying," Coyne (above) said.

The budget does reverse a negative trend that has developed over the last few budget cycles. The President's FY07 budget funds a substantial portion of the $8.336 billion provided for FAA operations from the general fund instead of relying completely on the Airport and Airway Trust Fund. The budget proposes $2.9 billion, approximately 35 percent, of the operations budget to come from the general fund.

"I am pleased to see the President has recognized the value of a healthy contribution from the general fund for FAA operations. The national air transportation system provides invaluable benefits to all Americans, not just air passengers, and is the lifeblood of our nation"s economy. It is important that a significant part of the FAA be funded through the general fund," Coyne said.

"As the budget process now begins in earnest, we will work with the Congress to help restore the funds that are being denied to vital infrastructure improvements," Coyne concluded.

FMI: www.nata.aero