[Federal Register Volume 70, Number 176 (Tuesday, September 13, 2005)]
[Notices]
[Pages 54100-54101]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-18145]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration


Aviation Financing Reauthorization

AGENCY: Federal Aviation Administration, DOT.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The current taxes and fees paid into the Aviation Trust Fund, 
which provide funding for the National Aviation System, are only 
authorized through September 30, 2007. Since there is only a small and 
declining balance in the Trust Fund, it is critical that the financing 
not be allowed to lapse. The new financing structure should generate 
stable and predictable revenue, maintain the appropriate levels of 
service, and enable FAA to make long-term investments and tie revenues 
raised for the system to the infrastructure and operational costs of 
the system. The FAA has developed a series of data packages in 
examining FAA costs, paid for through the Trust Fund, from a managerial 
reporting standpoint. These packages will advance everyone's 
understanding of FAA costs and what the Agency faces as it considers a 
range of future funding options. They are available at http://
www.faa.gov/about /office--org/ headquarters--offices/aep/aatf/.

FOR FURTHER INFORMATION CONTACT: Robert E. Robeson, Manager, Systems 
and Policy Analysis Division, Office of Aviation Policy and Plans, 
Federal Aviation Administration, 800 Independence Avenue, SW., 
Washington, DC 20591.

SUPPLEMENTARY INFORMATION: 

Background

    In April 2005, the FAA hosted a Trust Fund Forum with major 
aviation stakeholders. A variety of ideas on options to fund the FAA 
were discussed. At the Trust Fund Forum, FAA began the dialogue on the 
need to reauthorize the Airport and Airway Trust Fund. The current 
taxes and fees are only authorized through September 30, 2007 and since 
there is only a small and declining balance in the Trust Fund, it is 
critical that financing not be allowed to lapse.
    The new financing structure should generate stable and predictable 
revenue, maintain the appropriate levels of service, and enable the FAA 
to make long-term investments not only in modernization but also in the 
Next Generation Air Transportation System. The funding mechanism chosen 
should tie revenues raised for the system to the infrastructure and 
operational costs of the system. It should also create incentives for 
the FAA to become increasingly productive.
    The FAA spent the last several months analyzing cost and activity 
data as well as funding options. While this analytical work has reached 
a fairly mature level, it is expected to continue through the fall. FAA 
is examining the contributions of various stakeholder groups to the 
Trust Fund under the current tax structure, as well as the impact of 
different funding mechanisms on the FAA, the flying public, and those 
stakeholder groups.
    One major component of this work is an ongoing study that would 
allocate FAA's air traffic control costs to users of the system. This 
ongoing study uses cost accounting data from fiscal year 2004, which is 
the best available data at this time. While the FAA's cost accounting 
system will provide detailed source data in this effort, fiscal year 
2004 cost reports apply allocation rules to this data to produce 
managerial reports so that ATO management can understand costs at the 
national and facility levels. It is important to note that the cost 
accounting system continues to improve, so that fiscal year 2006 
managerial reports will be based on more refined allocations. Another 
set of allocation rules would be required to support analysis to 
determine the most viable proposal to fund the system. In developing 
these allocation rules, the FAA seeks stakeholder input in order to 
fully consider principles such as marginal system use, use of congested 
space and scarce resources, aircraft weight, distance, and other 
criteria. The allocation rules, of course, must be applied with 
transparency and would need to be validated by the user community.
    In addition, the FAA's Safety and Airports organizations have 
identified areas where services can be matched to the revenue needed 
for those programs. Because the FAA cost accounting system will not 
deliver such reports for these organizations until the middle of 2006, 
the FAA will use data from its Labor Distribution Reporting system, 
annual budgets, and grants issued to help develop options for future 
funding in the meantime.
    The Administration's intention is to develop a proposal that has 
stakeholder support. On September 6, 2005, the FAA Administrator sent a 
package to key stakeholders. Besides a cover letter that contained the 
information summarized above, the package also contains questions for 
stakeholders and the data packages developed to use in examining FAA 
costs from a managerial reporting standpoint. These packages will 
advance the understanding of FAA costs and what the Agency faces as it 
considers a range of future funding options.
    The stakeholder package available on the FAA's Web site contains 
data packages on the Air Traffic Organization including technical 
background and supporting detail, Airports, Aviation Safety, and 
International Aviation. Also included are questions regarding:
    1. Providing the Right Types of ATC Services.
    2. Revisions to Current Tax System.
    3. Other Funding Alternatives for Cost Recovery of ATC Services and 
Cost Allocation.
    4. General Fund Questions.
    5. Airport Related Issues.
    6. Charging for Certification and Other FAA Services.
    7. Lessons Learned from Other Countries.


[[Page 54101]]


    Issued in Washington, DC, on September 7, 2005.
Robert E. Robeson,
Manager, Systems and Policy Analysis Division, Office of Aviation 
Policy and Plans.
[FR Doc. 05-18145 Filed 9-8-05; 2:45 pm]
BILLING CODE 4910-13-P