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NTL Classification:NTL-AVIATION-Air Traffic Control;NTL-AVIATION-Airports and Facilities;NTL-AVIATION-Aviation Economics and Finance;NTL-AVIATION-Aviation Planning and Policy;
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Abstract:In June 1995, the FAA developed a "total requirements" estimate for the period
FY 97-FY 02 to help explain the difficulty of supporting a dynamic, growing
aviation industry under a federal budget picture which projected flat or reduced
funding for the agency. The FAA's estimate for the six-year period was $59.3B
in budget outlays. An update to this estimate in January 1997 produced a
slightly increased requirement of $60.3B. Projections for FAA's funding level
within a balanced budget framework have ranged from $45B to $50B. For purposes
of discussion, this paper will use the FAA's January 1997 estimates as the basis
for the future requirements. These estimates are for appropriated amounts
required over the six-year period. The $61.9B in budget authority equates to
$60.3B in outlays or a $1B increase over the initial $59B estimate. The
increase results from Gore Commission recommendations for additional security
and safety personnel as well as additional security equipment over the six-year
period. The Gore Commission recommendations to accelerate modernization have
not yet been included. The purpose of this paper is to explain the basis of
the FAA requirement estimate. The paper will include a section for each of the
following three appropriations areas: Section A: Operations; Section B:
Facilities and Equipment; and Section C: Research, Engineering, and Development.
The fourth appropriation area, the Airport Improvement Program (AIP) will be
addressed in a separate paper. Lastly, Section D entitled "User Investments,"
will discuss the investments required by the aviation system users to modernize
their avionics to be compatible with the FAA's future spacebased navigation
system. User investment in avionics will be a key component in reducing the
FAA's maintenance costs for land-based navigation systems. 12p.
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