The Bush administration is again asking Congress to scrap full subsidies for rural air service and to force 140 communities to shoulder part of the tab, under a proposal discussed by a Senate committee Thursday.
This year the federal government paid for the entire $109 million Essential Air Services (EAS) program, which offsets airlines' costs for serving remote airports that would otherwise receive little or no service.
The proposal, which came before the Senate Aviation Subcommittee, is not the first time the Bush administration has tried to tinker with the EAS budget. The changes are necessary because the current EAS program has ballooned in cost, is inefficient and doesn't encourage rural communities to develop profitable and sustainable air service, Michael Reynolds, an acting assistant secretary with the Department of Transportation, told the committee.
"Under the administration's proposal, communities are asked to become partners in the financing of their air services, but in exchange are given a much bigger role in determining the nature of that service," Reynolds said.
Reynolds said the administration wants to make the following changes to EAS:- Airports greater than 210 miles from the nearest large or medium hub airport would be required to pay 10 percent of the total EAS subsidy.
- Communities that are within 100-miles of a large or medium airport hub, 75 miles of a small hub or 50 miles of a non-hub with jet service would not qualify for subsidized air service, but could receive 50 percent of subsidies for providing ground transportation to that hub.
- All other EAS communities would have to cover 25 percent of the subsidy costs for air service.
The proposal comes ahead of next year's reauthorization of the funding bill for EAS and Federal Aviation Administration (FAA) programs. Currently, Congress has proposed an $8 million increase in EAS funding for 2007 to $117 million. The administration wants $50 million in funding for the program. In a report released Thursday, the General Accountability Office said if subsidies are removed some communities could lose air service.
A handful of rural state senators on the Aviation Subcommittee, including Sen. John D. Rockefeller, D-West Virginia, and Sen. Trent Lott, R-Mississippi, said the federal government needs to provide more funding for the programs saying a critical lifeline for rural communities is in danger of disappearing.
Rockefeller said he would work to create a "dedicated and robust" funding stream that doesn't rely on annual appropriations for EAS and another program that encourages service to rural airports, the Small Community Air Service Development Program. In his initial 2007 budget proposal, Bush offered no funding for the program.
"Unfortunately, these two programs have not received support from this administration or the adequate funding from Congress. That has to change," Rockefeller said.
The administration has talked about - but not proposed - a user fee on all parties to underwrite the FAA. If Congress creates a "user fee," Rockefeller said he would push for a dedicated fund to pay for both programs. If Congress keeps the current funding structure, he will seek "other options" to fund the programs.
