GREETINGS! First, Here’s an update from Washington, D.C. In late April, the Department of Transportation and Federal Aviation Administration invited representatives of the industry trade groups, air carriers, international aviation reps, and others to an alternative funding forum in Washington, D.C. The goal: To help determine how FAA will be funded in the years ahead in light of declining airline passenger ticket tax revenues, the main source of monies for the Airport and Airway Trust Fund.
According to FAA Administrator Marion Blakey, the Trust Fund currently accounts for some 80 percent of the agency’s funding. The Administration’s proposed FY2006 budget calls for that to increase to 88 percent while general tax revenues directed to FAA would be cut from the cur any $2.8 billion to $1.55 billion in 2006.
In a separate report, the National Air Traffic Controllers Association charges that Trust Fund revenues will actually be rising because of an increase in passenger traffic, and projects that such revenues will jump to $17 billion by 2013.
Secondly, A fight brewing in Washington, D.C., could have profound and far-reaching effects on all who enjoy the freedom of flight in America. As with most arguments in our nation’s capital, it’s about money; in this case, how to adequately and predictably fund the FAA.
Commercial aviation and the financially struggling airlines favor user fees because they’d like to shed any costs they can, expecting others, including general aviation, to pick up the slack. MPA, USPA, AOPA, EAA, and other general aviation organizations strongly and unanimously oppose user fees, especially without clearly defined system modernization plans and effective cost controls, and accountability for capital improvement programs.
Thirdly, FAA says more money needs to be brought into the system with a “consistent, predictable funding stream.” MPA, and USPA contends that if the FAA operations budget was properly funded as intended, out of the general fund, and capital improvements were covered as intended, by the Aviation Trust Fund, then there wouldn’t be a funding “crisis.”
The trust fund, which is funded by General Aviation fuel taxes and an airline passenger tax, was created to pay for the Airport Improvement Program (AIP) and Facilities and Equipment (F&E).
Day-to-day operations are funded by congressional appropriation taxes. However, in recent years, because of budgetary constraints, the trust fund has been funding large portions of the FAA’s operations budget and merely maintaining F&E, not replacing and upgrading. Consequently there is no money for critical capital improvements and the modernization of the National airspace System, which is currently projected to cost upwards of $32 billion.
Fourthly, Here’s what you can do as members of MPA and USPA, write and call your Senators and Congressmen tell them General Aviation pays its fair share of taxes, and to Vote for “NO USER FEES.” If you want to continue to have the freedom of flight in America. Or you can do nothing, and lose, because you will be taxed for every service funded by the FAA.
Fifthly, here’s an update concerning Missouri Aviation. The only airports and aviation bills are as follows:
HB 38 --- Sponsor: Jackson, Jackson
Authorizes an income tax designation to the Airborne Law Enforcement Fund
HB 306 --- Sponsor: Dempsey, Tom
Extends the expiration of the aviation jet fuel sales and use tax exemption
HB 713 --- Sponsor: Cooper, Nathan D.
Extends the expiration date of the transfer of jet fuel sales tax into the State Aviation Trust Fund and increases air control tower funding
SB 169 --- Sponsor: Gross, Charles
Renews aviation sales tax until 2010
SB 396 --- Sponsor: Crowell, Jason
Extends sunset of transfer of jet fuel tax to the aviation trust fund and increases air control tower funding
SB 498 --- Sponsor: Mayer, Robert
Amends sales and use tax exemption for aircraft sales to not-for-profit organizations.
Last Updated May 26, 2005 at 4:06 pm _
Note: Here’s your web site address for Texas Legislation: www.texas.gov. Look for Transportation-Aviation, to search all your Aviation Bills.
Web site address for Illinois Legislation: www.illinois.gov. Look for Transportation-Aviation, to search all your Aviation Related Bills.
All other can do the follow the same format to search you Aviation Bills.
Now, In Conclusion, remember we as USPA, MPA, TPA, IPA, NMPA, NPA, EAA, AOPA, or other state pilot associations of which you may be a member, all have a powerful voice, be it here in Missouri, Indiana, Texas, Illinois, or whatever state you may represent. Every group of taxpayers, and pilots carries a strong voice to Washington, D. C. and –§Vhe state and local government level.
&løŸ1Úgt;So Let’s not forget to exercise our rights and privileges, so we can continue to make a “Difference for General Aviation.”UNTIL NEXT TIME!
SAFE FLYING!
Larry G. Harmon
Vice President Government & Technical Affair
United States Pilots Association
Posted by JC at June 7, 2005 12:17 PM