Trust fund lags FAA’s money needs
In fiscal 2010, the Federal Aviation Administration’s expenditures totaled $15.5 billion, with revenues from the trust fund covering about $10.2 billion, or 66 percent, of that amount, the Government Accountability Office found. Total FAA spending increased by 60 percent from 2000 through 2010, but the fund’s revenue contribution increased only 12 percent during that time, the GAO said.
Congress needs to work with the Federal Aviation Administration to find better ways to pay for the agency’s operations because its needs are exceeding the revenues of a fund that provides money for the aviation system’s capital projects as well as FAA operations, Congress’ investigative arm said Thursday.
Lawmakers and the FAA must find ways to ensure that the Airport and Airway Trust Fund’s revenues are sufficient to cover the FAA’s obligations, including an ongoing modernization of the air traffic control system, in order to avoid disrupting funding for aviation projects and programs, the U.S. Government Accountability Office said in a report to Congress.
The FAA, in addition to its responsibility for aviation rules and safety, provides funding for airport improvement projects. Congress has currently only funded FAA programs and spending authority through March 31.
The trust fund’s financial health is a concern, but it is part of the bigger issue of ensuring adequate funding for all FAA operations year after year, said Stanley Earley, Dayton’s deputy city manager, who oversees Dayton International Airport and Dayton-Wright Brothers Airport.
“The issue of adequately funding the operating costs of the FAA — as opposed to the capital (account) — needs to be appropriately considered,” Earley said.
Congress is part of the problem because it has raided the trust fund over the years, requiring the FAA to rely more heavily on general revenues from the Treasury Department, said aviation consultant Michael Boyd, president of Boyd Group International Inc.
That led to creation of the passenger facility tax, a fee of up to $4.50 levied on boarding passengers at commercial airports to pay for airport capital projects, Boyd said.
The trust fund, created in 1970, is funded primarily through excise taxes imposed on airline ticket purchases, aviation fuel and cargo shipments. Revenues deposited in the trust fund are subject to congressional appropriations, the GAO said.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.
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