In their own words: Sen. McCain, Rep. Shuster talk aviation
By Rep. Bud Shuster, Chairman, House Transportation & Infrastructure Committee
On building a system for the 21st Century ...
We are on the brink of a fundamental crisis in our aviation industry that requires significant resources beyond what Congress and the Administration have been willing to commit to date. We must invest adequately in the coming decade to ensure that our aviation system remains safe and efficient.
I have called 1999 the Year of Aviation because I believe now is the time to address the critical funding issues that plague the FAA and airports around the country. I am committed to enacting a multi-year reauthorization of all FAA programs that prepares us to meet the challenges of the 21st Century.
Signs of strain abound. FAA cites 27 of our largest airports as seriously congested, each with more than 20,000 hours of flight delays annually, costing the airlines $2.5 billion, and the American people $7 billion in lost productivity. A MITRE study estimates that a 60 percent increase in airport capacity will be needed by 2015 just to maintain delays at current levels. The General Accounting Office estimates that $17 billion will be needed just for Air Traffic Control modernization in the next five years.
Airports estimate and GAO agrees that infrastructure needs will be about $10 billion a year for at least the next five years. Airports have access to about $7 billion from all sources—Airport and Airways Trust Fund, Passenger Facility Charges, and bonds. A $3 billion annual gap exists.
On the Trust Fund debate ...
The good news is that much of the money needed could be made available without raising federal taxes. In 1998, the American people paid about $8.6 billion into the Aviation Trust Fund but only $5.9 billion was spent: $4 billion on airport infrastructure and ATC modernization and $1.9 billion on FAA salaries and expenses.
Just as Congress unlocked the Highway Trust Fund last year to spend the user taxes for their intended purpose, so too should Congress unlock the Aviation Trust Fund so the revenue flowing in can be spent to improve America's aviation system. Today there is more than $10 billion in the Trust Fund; if not unlocked, that balance will soar to over $103 billion in the next ten years under historical spending patterns. It's time to unlock the fund to keep air travel safe and efficient.
Our Committee's preferred method for protecting the Trust Fund is to take it out of the unified federal budget. That is why we have introduced H.R. 111, the "Truth In Budgeting Act," to take the Aviation Trust Fund (and two smaller transportation trust funds) off budget. This would discourage Congress from withholding Trust Fund revenues to offset spending elsewhere in the federal budget.
In last year's surface transportation reauthorization, entitled "the Transportation Equity Act for the 21st Century" (TEA-21), the House compromised with the Senate and accepted the establishment of "firewalls" within the budget to protect the Highway Trust Fund money (as opposed to the House-passed off-budget provision). The President's budget honored those firewalls, and, for the first time in the history of the Highway Trust Fund, there is a link between revenues and spending. I hope that we can find similar common ground.
On other critical budget issues ...
First, we must preserve the general fund contribution to FAA operations — historically about 30 percent of FAA's total budget — to cover the government's use of the system and the benefits to the public of a safe and efficient system. Efforts by both the Appropriators and the President to cut this contribution must be deterred. In FY1999, the Omnibus Appropriations Act cut the general fund contribution in half without consulting our Committee and without public deliberation. The President's budget seeks to completely eliminate the general fund contribution, making up the shortfall through a series of new user fees. I hope that you will join me in opposing these.
Chance for Relief Initiatives being pushed in the U.S. House offer long-term funding solutions for airports, states BY Henry M. Ogrodzinski, President & CEO, Nasao June 1999...
Industry Comment By Sen. John McCain, Chairman, Senate Commerce Committee March 1999 On his 2-year authorization bill, and the potential for longer term legislation ... This...
'Year of Aviation' With raised expectations, industry looks for long-term funding reform. Here are the basics of the debate BY John F. Infanger, Editorial Director March 1999...
FAA 'Funding Crisis' Manufactured by the Administration and the Airlines, Claims World's Largest Aviation Organization
Phil Boyer of AOPA said the FAA budget proposal would set the stage for a radical new user-fee based funding system and dramatic tax increases for aviation users.