In early February, the FAA released its proposed budget for fiscal year 2008, which begins October 1, 2007. To no ones great surprise, it calls for creating a new system of user fees in place of the existing excise tax levies to fund the agency and its programs for enhancing ATC and expanding airports. The new proposal comes after months of statements from the FAA and its parent Department of Transportation calling for fundamental changes in how the agency is 288
Game On
In early February, the FAA released its proposed budget for fiscal year 2008, which begins October 1, 2007. To no ones great surprise, it calls for creating a new system of user fees in place of the existing excise tax levies to fund the agency and its programs for enhancing ATC and expanding airports.
Key Takeaways:
- The FAA's proposed FY2008 budget introduces a new system of user fees to replace excise taxes for funding, drawing strong protests from general aviation (GA) groups.
- The proposal includes substantial increases for GA, such as nearly fourfold higher fuel taxes, new fees for operating in congested airspace, and increased costs for pilot and aircraft certifications.
- Critics argue the new system may generate less revenue than current taxes, while the article warns that increased costs could reduce flying activity and proficiency, potentially compromising aviation safety.
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