Obama Budget Would Raise Airport Security Fees, Air Traffic Control Funding

President Barack Obama today broadly outlined his administration's 2010 budget plan, which proposes to increase passenger fees for airport security, heavily invest in high-speed rail programs, increase subsidies for small community air service and further fund next-generation air traffic control projects.

The budget outline proposes to increase in 2012 the $2.50 per-segment Aviation Passenger Security Fee. Though the budget gives little detail on the increase, it notes the current fee "only captures 36 percent of the cost of aviation security." An increase, the budget outline notes, "will offset costs associated with Transportation Security Administration screening of aviation passengers."

The Air Transport Association, the dominant lobbying group for domestic airlines, categorically opposed the proposal to raise user fees. "We continue to oppose requiring the airlines and their passengers to fund aviation security programs," vice president of communications David Castelveter said. "This is a government responsibility, plain and simple. It should be funded by government, not by airlines and airline passengers."

ATA said it was awaiting further detail on proposals in the budget that affect the airline industry, which will come to light as the budget winds its way through the Congressional process in the coming months.

The budget also proposes $800 million in funding to support the Next Generation Air Transportation System, which aims to help modernize air traffic control from a radar-based to a satellite-based system. "Because of an outdated air-traffic control system and over-scheduling at airports already operating at full capacity, an ordinary trip to a business meeting or to visit family can become marred by long delays," the budget notes.

Castelveter said ATA looked favorably upon funding of the air traffic control system, though noted the devil is in the details. "You know the airlines have been very supportive of funding for Next-Gen so we can begin this process of reducing congestion and allowing growth. We don't know to what extent that will be funded, over what period of time and for what projects."

The budget proposes an additional $55 million over 2009 funding levels to subsidize air service to small communities, which disproportionately have been hit by airline capacity cutbacks in the past year. "However, the program that delivers this subsidy is not efficiently designed," the budget notes. "Through the budget process, the administration intends to work with the Congress to develop a more sustainable program model that will fulfill its commitment while enhancing convenience for travelers and improving cost effectiveness."

The proposal also includes allotting $1 billion per year to a high-speed rail grant program for states, "in addition to the $8 billion provided" in the American Recovery and Reinvestment Act, signed by the president last week. The budget proposal states that the high-speed rail plan "marks a new federal commitment to give the traveling public a practical and environmentally sustainable alternative to flying or driving" and would "lead to the creation of several high-speed rail corridors across the country linking regional population centers."

President Obama in remarks today said the administration would "develop a full budget that will come out this spring." The budget requires congressional approval before going into effect for the federal government's fiscal year, which begins Oct. 1.