What’s at Issue
On May 7, 2009, the Office of Management and Budget (OMB) released the Budget Appendix for fiscal year 2010 (FY10), one week after Congress approved a $3.4 trillion budget. The budget contains funding details for each agency and program within the federal government. In addition, the budget contains $17 billion in funding cuts across approximately 120 federal programs, which accounts for a savings of less than 1% that Obama claims will help reduce the deficit during his term as president. He also called on Congress to reinstate pay/go rules requiring spending increases to be offset by equal spending cuts. The proposal will be modified according to the decisions made by the House and Senate Committee on Appropriations.
Why It’s Important
Agencies important to NATA members including the U.S. Department of Transportation (DOT) and the U.S. Department of Homeland Security (DHS) have received increases in budgetary resources for FY10. More specifically, the DOT will receive an increase in total budgetary resources, from $71.4 billion in FY09 to $73.25 billion in FY10. Of the nearly $16 billion provided for the Federal Aviation Administration (FAA), $865 million is set aside for the NextGen air traffic control system. The budget also includes $180 million, a $9 million increase, for research and development to improve safety and expand capacity, which NextGen intends to accomplish. The obligation limitation on Airport Improvement Program (AIP) grants remains the same at $3.515 billion.
The budget proposes to increase spending for FAA Operations from FY 2009’s $9.042 billion to $9.336 billion. $6.208 billion of that amount would come from the Airport and Airway Trust Fund, up from a 60 percent share in FY 2009. Funding for FAA Facilities and Equipment would rise from $2.742 billion in FY 2009 to $2.925 billion in FY 2010.
Major Provisions
The following are various provisions affecting the general aviation industry in the FY10 budget proposal, including funding levels for agencies important to NATA members:
Federal Aviation Administration:
Fixed Base Operators Reimbursement
- Funds provided for reimbursement to fixed base operators for financial losses incurred as a result of September 11, 2001, will be rescinded. The remaining balance in this account ($4 million of the $17 million) is not needed according to OMB, and will be transferred to another account.
User Fees/Essential Air Service:
- The FAA is prohibited from using funds to implement any regulation that would promulgate new aviation user fees.
- $50 million is provided as a permanent appropriation for the Essential Air Service program and rural airport improvements. If fee collections fall below $50 million, the law requires the difference to be covered by FAA funds. The administration intends to work with Congress to develop a more sustainable program model that will fulfill its commitment to maintaining small communities’ access to the National Airspace System.
War Risk Insurance:
- Continuation of War Risk Insurance coverage is extended through the Federal Aviation Administration Extension Act of 2009. The Secretary of the DOT is authorized to limit an air carrier’s third-party liability to $100 million, when the secretary certifies that the loss was from an act of terrorism.
Aviation Safety Standards:
The Secretary of the DOT must utilize $10,000,000 of the funds provided for aviation safety activities to pay for staff increases in the Office of Aviation Flight Standards and the Office of Aircraft Certification. In addition, the funds may be used to enter into a grant agreement with a nonprofit standard-setting organization to assist in the development of aviation safety standards.
Teterboro Airport:
- Prohibits funds from being used to change weight restrictions or prior permission rules at Teterboro Airport in Teterboro, New Jersey.
Slot Auctions:
Prohibits the Secretary of the DOT to promulgate regulations or take any action regarding the scheduling of airline operations at any commercial airport in the United States such as auctioning airline operations at an airport, implementing congestion pricing, or charge a fee for permission to use navigable airspace.
NY/NJ Airspace Re-design:
Within 60 days of the publication date of any Government Accountability Office (GAO) report reviewing the FAA’s project to redesign the airspace over the New York, New Jersey, and Philadelphia region, the FAA administrator must report in writing to Congress any actions the agency intends to take in order to address concerns and recommendations identified in the GAO report.
Department of Homeland Security:
The Department of Homeland Security (DHS) budget includes $42.7 billion in discretionary spending, compared to $40.1 billion Congress enacted for FY09. $5.3 billion is provided for the Transportation Security Administration (TSA) in FY10, $4.75 was appropriated for FY09.
Aviation Security:
- $5.3 billion is included for the TSA’s aviation security activities.
- Of this amount, an estimated $2.3 billion is financed by offsetting collections from passenger security fees, air carrier security fees, and user fees supporting civil aviation security services. Included in the offsetting collections amount is $20 million in user fees for air cargo, general aviation at the Ronald Reagan Washington National Airport, Secure Identification Display Area checks, and the Certified Cargo Screening and Large Aircraft Security programs.
- $84.5 million is provided for the purchase and installation of certified explosives detection systems at medium- and small-sized airports.
Transportation Threat Assessment and Credentialing:
- $191 million is provided for the development and implementation of screening programs in the Office of Transportation Threat Assessment and Credentialing.
- The TSA must determine if the Secure Flight program no longer needs to check airline passenger names against the full terrorist watch list, and certify to Congress that no significant security risks are raised by screening airline passenger names only against a subset of the full terrorist watch list 2011.
- $220 million is included for Vetting and Credentialing programs to enhance the interdiction of terrorists and the instruments of terrorism by streamlining terrorist-related threat assessment by coordinating procedures that detect, identify, track, and interdict people, cargo, conveyances, and other entities and objects that pose a threat to homeland security. This appropriation includes the following programs: Secure Flight, Crew Vetting, Other Vetting Programs, Transportation Worker Identification Credential, Alien Flight Student, and Hazardous Material Commercial Driver’s License Endorsement.
DHS General Provisions:
Funds from this or previous appropriations are prohibited from deploying or implementing the Secure Flight program or any other successor passenger prescreening program until the Secretary of DHS certifies that all ten of the conditions contained in paragraphs (1) through (10) of section 522(a) of Public Law 108-334 (118 Stat. 1319) have been successfully met.
Air Cargo Screening:
- The Secretary of the DHS shall research, develop, and procure new technologies to inspect and screen air cargo carried on passenger aircraft by the earliest date possible.
- Existing checked baggage explosives detection equipment and screeners shall be utilized to screen air cargo carried on passenger aircraft until new technologies are available.
- TSA shall work with air carriers and airports to ensure that the screening of cargo carried on board passenger aircraft increases incrementally each quarter.
NATA Position
NATA is pleased with the increase in funding for FAA Operations and Facilities and Equipment that will support NextGen. However, for the fourth year in a row AIP funding has remained the same. As AIP projects continue to increase, the funding level hasn’t increased to support additional airport projects. In addition, NATA supports the provision prohibiting the DOT from allowing any kind of slot auction at airports.
NATA is not pleased with the rescission of funds that was appropriated for financial disbursement to fixed base operators and believes that the FAA should continue to support reimbursement.
Status
Both the U.S. House of Representatives and the U.S. Senate Committees on Appropriations began holding budget hearings the week of May 11, 2009. When the Transportation and Homeland Security bills are introduced, NATA will update members on the details.
Staff Contact: Kristen Moore
Director, Legislative Affairs
kmoore@nata.aero