DOT To Push for User Fees
By Adrian Schofield
While the Obama administration says it will not pursue unpopular aviation policies such as airport congestion pricing and slot auctions, it is leaving the door open for the introduction of user fees to help pay for air traffic control.
The fiscal 2010 budget request produced few funding surprises for commercial aviation, and the industry was watching closely to see if there were any hints on controversial topics such as user fees. The budget ruled out this approach for FY2010, but the administration is developing a user fee policy for 2011 and beyond, and it will outline details in its FAA reauthorization proposal later this year.
The Transportation Dept. confirms that the longer-range reauthorization plan will include “cost-based user charges for air traffic services starting in 2011.” The specifics “are under development and some time will be needed to implement the charges once approved,” which is why they do not appear in the 2010 budget.
DOT has been cagey about its user-fee stance since the administration change. A budget framework released in February indicated that it would transition some aviation taxes to user fees, but since then details have been scarce. The department is more emphatic in discontinuing the Bush administration’s attempts to manage demand by auctioning slots at congested airports.
Budget language stresses that no funds be used by the DOT or the FAA to auction slots, withdraw operating rights, or charge a fee for the use of airspace. However, it appears that this user-fee prohibition will apply only to FY2010.
Rep. John Mica (R-Fla.), the ranking member on the House Transportation and Infrastructure Committee, noted that while the 2010 budget “does not take a final position” on user fees, the administration has retained a “direct user fee placeholder” for subsequent years.
Meanwhile, Transportation Committee Chairman James Oberstar (D-Minn.) told lawmakers yesterday that while general aviation users should see a fuel tax increase, the current funding structure should remain intact. His committee has already finalized its version of FAA reauthorization, with no mention of user fees. Oberstar has been one of the fiercest opponents of this approach.
Commercial aviation generally fared well in the FY 2010 budget request, with the FAA seeing a slight funding increase. No FAA efforts were included in a list of government-wide program cuts.
The FAA overall would receive just under $16 billion, which at first glance appears to be a decrease from the $17 billion provided in fiscal 2009. However, the 2009 total includes about $1.3 billion provided separately for airports and FAA facilities in an economic stimulus package. Ignoring the stimulus funds, FAA sees an increase.
Within FAA’s 2010 total, $9.3 billion will be spent on operations, up from the $9 billion in the previous fiscal year. The facilities and equipment line will receive $2.9 billion — about the same as this year if the stimulus money is included.
The airport grant total has actually been reduced — $3.5 billion for 2010 compared to $4.9 billion in 2009, which is a decrease even if the $1.1 billion in stimulus funds is deducted. Airports Council International-North America said it was disappointed that airport grant funding was not increased. The American Association of Airport Executives said it will also oppose the reduction. Both airport groups expressed concern that the budget has no money for the Small Community Air Service Development program. However, the budget did increase Essential Air Service funding.
Photo: White House
