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 fund the agency, replacing existing aviation excise taxes.
- General aviation groups are strongly protesting the proposal, anticipating significant cost increases through higher fuel taxes, fees for congested airspace, and charges for pilot and medical certificates.
- Critics argue the new funding model may raise less revenue than current taxes and could negatively impact aviation safety by discouraging flying activity and proficiency due due to increased financial burdens.
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