President's Position

What you need to know about FAA funding

There is a lot of information to absorb as you learn to fly--the fundamentals of flight, aircraft systems, navigation, communications, regulations. There is other important information that you don't necessarily need to know right away. For example, neither the knowledge test nor the practical test for your pilot certificate will include any questions about how the FAA is funded. Don't be fooled; the FAA's financial situation is something that very much could affect the cost--and safety--of your flying. The fact is that you contribute to the FAA's operational expenses every time you fly.

Although you may not have had any knowledge of FAA funding before you read my previous paragraph, you will be hearing a lot about the subject this year. The FAA's future funding is up for review, and the FAA, the airlines, and others are proposing changes to how funds are collected and how much is collected. If the FAA and the airlines have their way it's bad news for general aviation--and all of us. That's why this issue is your association's most important priority for 2007, and is truly the most important issue in GA's history.

Today, every user of the aviation system pays to use and maintain that system through a series of taxes. As general aviation pilots, we pay a tax on the aviation fuel that we use. Airline passengers pay a tax on their tickets. There's a tax on domestic air freight cargo waybills. Revenue from these taxes goes into the Aviation Trust Fund and provides the majority of the money needed to keep the aviation system operating safely and effectively. A little less than one-quarter of the money comes from the General Fund, which is an enormous pool of tax money that funds a wide range of services that are important for the public good--think of the national highway system, something we all help to pay for because it benefits all Americans, even though we don't all use those roads.

This process has worked well for almost 40 years, and it has helped the United States to create the biggest, best, safest, and most efficient aviation system--who would want to tinker with that success? Well, the airlines are now arguing that the current funding system is inadequate or unfair. Many are suggesting a move to a fee-for-service or user fee system. Such a system could require us to pay a fee for every weather briefing we obtain, any flight plan we file, each landing that we make--and for every radio contact with an air traffic controller.

User fees could have a significant impact on your flight training. In Germany, for example, a weather briefing will cost you $1.50 per minute. In Austria, you will pay $70 to land a general aviation aircraft. And in the Netherlands, a private pilot knowledge test will set you back up to $1,000. One of my concerns about the cost is the implication to safety--I don't want to see accident rates increase because cash-strapped pilots don't update weather briefings or avoid optional air traffic control services.

Today the U.S. Congress authorizes the FAA to spend its annual budget. Congress also controls how the FAA divides its annual budget among the agency's four main areas of responsibility: airport improvements; air traffic control enhancements; FAA operations; and research and development. The FAA's multiyear congressional authorization is set to expire on September 30--opening the door for changes to the funding system. Congress will try to answer some important questions during the reauthorization process: What are the FAA's future budget needs? Does the current system provide adequate funding for them?

Some facts must be considered before any action can be taken:

• The Aviation Trust Fund--the primary source of FAA funding--is growing and will continue to grow in the future. Despite what you may hear in the coming months, it is not running out of money.
• The fee collection mechanisms now in place work efficiently; a new system would require new--and costly--infrastructure.
• The U.S. air transportation system leads the world in efficiency with more operations at a lower cost per operation than other countries. As a result, what works in a small country like Germany or even a large one like Australia--both of which assess user fees--may not work here. User fees have stifled (at best) GA in many European countries.

AOPA believes, and the evidence shows, that the current FAA funding system not only works, but also allows for sufficient FAA budget growth in the coming years for needed modernization. The air transportation system is an important national asset that deserves the support of taxpayers through a General Fund contribution, and Congress must continue to serve as the FAA's Board of Directors. We may need your help to present this case to the national leadership. Please respond when the call comes--the future of general aviation flying is too important to ignore.