FAA Budget Questions

SENATOR POINTS OUT ADMINISTRATION'S USER FEE SCHEME WOULD RAISE LESS
MONEY
WASHINGTON, DC, February 8, 2007 - Today, the General Aviation
Manufacturers Association (GAMA) welcomed questioning by Congressional
leaders regarding the Administration's contention that they must
establish user fees to achieve transformation of the national airspace
system.

Senator Sam Brownback (R-KS) questioned Secretary of Transportation Mary
Peters this morning before the Senate Appropriations Committee,
Subcommittee on Transportation, Housing and Urban Development, and
Related Agencies. The Senator questioned the Secretary on her plans to
implement user fees and significantly raise aviation fuel taxes.

He began by pointing out that the President's budget shows that the
upcoming FAA reauthorization bill and its user fees and fuel tax scheme
would raise LESS revenue than simply extending current law and tax
rates. Administration budget documents show that between 2008 and 2012,
the new user fee scheme will raise approximately $1 billion less than
the current funding mechanism.

The Senator went on to ask, "How can you say your funding proposal is
needed to modernize our nation's air traffic control system when you
would raise less revenue over the next five years?²

"I'm pleased to see that within days of the Administration releasing its
budget, Members of Congress are asking tough questions about this
ill-advised funding scheme. We hope that more Members of Congress will
challenge the Administration's rhetoric that our aviation system cannot
be modernized without implementing user fees," said Pete Bunce, GAMA's
President and CEO.

john smith quoted a news report that said
... Senator Sam Brownback (R-KS) ...
[pointed] out that the President's budget shows that the
upcoming FAA reauthorization bill and its user fees and fuel tax scheme
would raise LESS revenue than simply extending current law and tax
rates.

Since FAA wants to increase revenue and since implementing user fees would
reduce FAA revenue, FAA should pay user rebates.

Paying user rebates will encourage pilots to fly more hours which will cause
them to buy more fuel which will increase fuel tax revenue.