LEXIS-NEXIS® Congressional Universe-Document

LEXIS-NEXIS® Congressional

March 1, 2000, Wednesday

SECTION: PREPARED TESTIMONY

LENGTH: 425 words

HEADLINE: PREPARED STATEMENT BY JEFFREY FEGAN CHAIRMAN, AIRPORTS COUNCIL INTERNATIONAL-NORTH AMERICA (ACI-NA)

BEFORE THE HOUSE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE AVIATION SUBCOMMITTEE

SUBJECT - ADMINISTRATION'S FY 2001 BUDGET REQUEST AND FUNDING NEEDS FOR THE FEDERAL AVIATION ADMINISTRATION (FAA).

BODY:
Among the top priorities of the nation's airports, unlocking the Airport and Airway Trust Fund to achieve greater Airport Improvement Program and FAA funding and increasing the federal cap on Passenger Facility Charges are critical ingredients that must be enacted in the final FAA Reauthorization bill.

On behalf of ACI-NA and the American Association of Airport Executives (AAAE), Fegan provided the following specific statements:

Passenger Facility Charges

At Dallas/Fort Worth (DFW) International Airport, the current $3.00 PFC is committed for the next 35 years. DFW needs an additional $3.00 PFC to cover the cost of a new runway. "We appreciate the fact that the $3.2 billion AIP authorized level, that the House and Senate conferees have tentatively agreed on, is significantly higher than the current $1.85 billion appropriation, but it doesn't get us where we all agree we need to be. That's why we so strongly support an increase in the federal cap on locally imposed Passenger Facility Charges, like the one endorsed by this Committee and passed overwhelmingly by the House of Representatives."

Airport Improvement Program

The Administration's FAA budget for fiscal year 2001 proposes the same level for AIP as last year, $1.95 billion - far short of the $7 billion in projects that are eligible for AIP funding each year. But from the $1.95 billion recommended for AIP, the Administration proposes taking $60 million for the administration of the FAA Office of Airports, plus an additional $28 million for the Essential Air Service, resulting in an actual recommendation of only $1.862 billion.

"Let me be clear, we support full funding for the FAA Office of Airports and full funding for the Essential Air Service program, but not from the Airport Improvement Program. AIP should be used for investments in infrastructure, not for operational costs."

General Fund Contribution

The AIP level is further threatened by the Administration's proposal to eliminate the general fund contribution to FAA operations costs, which could cause even more AlP to be diverted to cover FAA expenses, instead of invested in airport capacity and expansion improvements.

"ACI-NA and AAAE also object to the Administration's decision not to include a general fund contribution to aviation programs. Without a general fund contribution, we are convinced that over time AIP funding will be crowded out at the expense of other FAA programs, expanding an already large airport funding gap."

END

LOAD-DATE: March 2, 2000