The once-hefty balance in the Airport and Airway Trust Fund has shrunk dramatically, and many say changes are needed to fix the problem. Construction interests are watching the issue because the fund pays for the Federal Aviation Administration Airport Improvement Program. This year AIP will pour about $3.5 billion into runways and other infrastructure. "We are concerned about the financing of aviation programs and the dropoff in the [aviation] trust fund balance," says David Bauer, American Road & Transportation Builders Association senior vice president for government relations.
Aviation taxes and FAAs authorizing statute dont expire until 2007. But House aviation subcommittee Chairman John L. Mica (R-Fla.) is airing trust fund questions now. FAA Administrator Marion C. Blakey told Micas panel on May 4 the funds uncommitted balance tumbled from $7.3 billion in 2001 to $2.4 billion last year. Air Transport Association President and CEO James C. May said the surplus has been so drained that "the bottom of the pot is coming into view." Even worse, if aviation tax revenue is 10% less than projected, the balance would hit zero in 2007, said Gerald L. Dillingham, Government Accountability Office director for physical infrastructure issues.