At Aviation Industry Expo in Las Vegas ...

NATA’s Jim Coyne expresses concern about Obama’s proposed raid on the aviation trust fund. Coyne is president of the National Air Transportation Association, which is hosting its Education Week in conjunction with the Expo at the convention center here in Vegas. “It’s a free-for-all with trust funds in D.C.,†comments Coyne. NATA and other aviation groups in Washington are up in arms about the President’s proposal to remove the ‘firewall’ on the aviation trust fund, announced in Obama’s FY2010 Budget Blueprint. We’ve been here before. In the late ‘90s, Rep. Bud Shuster of Pennsylvania became a hero of sorts to the aviation community when he able to put into legislation the firewall which would keep funds from the Aviation and Airway Trust Fund (AATF) from being handled in the same manner as general revenue in the overall appropriations process. Prior to that, Reagan, Bush, and Clinton all kept the aviation monies at bay, in an attempt to make their overall budgets look better. We’re talking billions being held hostage in the name of appearance. It was Shuster’s leadership that led to the unprecedented levels of funding in this decade for the Airport Improvement Program. Coyne terms the potential raid on the trust fund as a “tiny ripple in a perfect storm†that is brewing in Washington, in which there is a game going on to look at “anti-populist taxes.†This goes hand-in-hand with the President’s suggestion that new user fees may be on the horizon for aviation. Coyne’s reaction echoes that of Greg Principato, president of Airports Council International – North America, who last week sent a letter to DOT Secretary Ray LaHood to highlight the issue. “Converting mandatory contract authority into discretionary budget authority threatens the unique structure of the trust fund system, and could undermine the budgetary firewalls which ensure that receipts from aviation excise taxes and user fees are reinvested in infrastructure,†said Principato in the letter. “At a time when the President has identified rebuilding our transportation infrastructure as a national priority, we should not alter this proven system.†The good news on the issue is that 14 House and Senate members have also publicly stated their displeasure with the idea, including key powerbrokers Oberstar, Mica, and Rockefeller. Looks like it’s business as usual in Washington. So much for that ‘change’ thing. Thanks for reading. jfi