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 user-fee system, replacing existing excise taxes, to fund the agency, a move influenced by airline industry lobbying.
- General aviation groups strongly oppose the proposal, citing projected nearly fourfold increases in GA fuel taxes, new fees for congested airspace, and significantly higher costs for aircraft registration and pilot/medical certificates.
- Critics argue the new funding scheme is unnecessary and would actually raise less revenue than current taxes, while the author warns that increased costs could compromise aviation safety by reducing flying activity and pilot proficiency.
Key takeaways sponsored by Aviator Pro | Start Your Training ->
See a mistake? Contact us.
