President’s Budget Released For Fiscal Year 2011

Back Industry News / February 5, 2010

PRESIDENT’S BUDGET RELEASED FOR FISCAL YEAR 2011

President’s Budget Released For Fiscal Year 2011

February 5, 2010

What’s at Issue
On February 1, 2010, the Obama administration released a $3.8 trillion dollar federal budget proposal for fiscal year 2011 (FY11).  The proposed budget is the president’s recommendation, given to Congress, on funding levels of the federal government. 

Why It’s Important
President Obama proposed a three-year freeze on discretionary spending, which accounts for 1/6 of the federal budget – a minimal amount that only applies to 17% of federal spending and has little impact on the $1.4 trillion federal deficit.  In addition, the budget provides increased funding for the Federal Aviation Administration (FAA), including $1.1 billion for Next Generation Air Transportation System.

The Obama administration did not include a user fee proposal on general aviation to help finance the Federal Aviation Administration’s (FAA) Airport and Airways Trust Fund. 

Major Provisions
Department of Transportation

  • $75.3 billion is provided for the department, which includes all modes of transportation under its jurisdiction such as the FAA, $1.2 billion below FY10 funding levels.
  • $16.5 billion is provided for the FAA, an increase of $275 million over FY10 enacted levels, a 32% increase.
  • Next Generation Air Transportation System (NextGen) – $1.1 billion is provided for the FAA’s long-term plan to improve the efficiency, safety, and capacity of the air traffic control system. The budget supports an integrated plan to speed delivery of NextGen’s benefits to the traveling public. 
    • Air-Ground Data Communications – $153 million is provided, a $106 million increase, to accelerate the transition from the current voice-based communication system to the data communications system.
    • Automatic Dependent Surveillance Broadcast – $176 million is included for the implementation of satellite-based surveillance capabilities.

    • FAA Operations – $9.8 billion is included for operations to continue to promote aviation safety and efficiency. 
    • Facilities & Equipment (F&E) – $3 billion is provided to allow the FAA to maintain the capacity and safety of the current national airspace while progress is made with NextGen.
    • Airport Improvement Program (AIP) Level funding of $3.5 billion is included for FAA’s Grants-in-Aid for Airports or AIP program.  This funding is for safety-related development projects at airports including infrastructure improvements and aviation safety management.
    • Research, Engineering & Development – $190 million is provided to continue research, including environmental research for aircraft technologies and alternative fuels and advance NextGen
  • Other provisions:

    • Prohibits funds in this Act from being made available for the FAA to finalize or implement any regulation that would promulgate new aviation user fees not specifically authorized by law.
    • Prohibits funds in this Act to be used to change weight restrictions or prior permission rules at Teterboro Airport, Teterboro, New Jersey.

    Department of Homeland Security

    • $56.3 billion is provided for the department, a 2% increase over FY10
      • Transportation Security Administration (TSA) – $8.2 billion is included for the TSA, a $507 million increase over FY10.

    Aviation Security: 

    • $5.8 million is provided for civil aviation security, including screening operations, explosives detection systems, aviation regulation and enforcement activities, and air cargo screening operations.

    NATA Position
    While NATA is pleased with the Obama administration’s omission of a user fee proposal in the FY11 budget, the industry must remain vigilant to ensure that any future user fee proposal remains unsuccessful in Congress.  NATA is pleased with President Obama’s decision to ensure NextGen remains a priority by increasing funding to modernize our air traffic control system.  Funding for critical aviation programs has been delayed due to Congress’ inability to pass comprehensive legislation to reauthorize the FAA.

    Status
    Congress will begin the year by holding hearings on portions of the budget before drafting legislation to fund all federal government agencies.  To view the entire FY11 budget request, please click here www.whitehouse.gov.

    Staff Contact:  Kristen Moore
    Director, Legislative Affairs
    kmoore@nata.aero

    View in PDF format.