FAA Financial Requirements
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FAA Financial Requirements

Filetype[PDF-61.38 KB]


  • English

  • Details:

    • Resource Type:
    • Geographical Coverage:
    • NTL Classification:
      NTL-AVIATION-Air Traffic Control;NTL-AVIATION-Airports and Facilities;NTL-AVIATION-Aviation Economics and Finance;NTL-AVIATION-Aviation Planning and Policy;
    • 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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