Avoiding Aviation Gridlock: A Consensus for Change National Civil Aviation Review Commission Preliminary Funding Task Force Report Norman Y. Mineta, Chair September 10, 1997 Table of Contents I. COMMISSION FINDINGS AND RECOMMENDATIONS A. Commission Findings B. Commission Recommends an Integrated and Comprehensive Package II. INTRODUCTION: WASHINGTON, WE HAVE A PROBLEM A. Without Change, Delays and Congestion Will Become Overwhelming B. Without Change, Anticipated Growth in Aviation Will Stop and Economic Growth Will Be Constrained C. Without Change, Air Traffic Control Will Live Increasingly Hand-To-Mouth D. Without Change, Federally-Authorized Investment in Airport Infrastructure Will Remain Inadequate E. Without Change, FAA Will Remain Disconnected from Its Customers' Needs F. Without Change, the Economics of Air Traffic Services Will Be Poorly Understood and, Hence, Poorly Managed G. Without Change, the U.S. Global Competitive Posture Will Be Harmed H. Without Change, Maintaining Safety Standards Will Become a Real Challenge   III. FAA'S BUDGET TREATMENT MUST CHANGE A. Recommendation B. Background C. The FAA's Revenues and Spending Should Be Linked and Spending Shielded from Budget Caps 1. Current Situation 2. Commission Recommendations 3. Budget Scoring IV. FAA MANAGEMENT MUST BECOME PERFORMANCE BASED A. Recommendation B. Performance Based Organization for the Air Traffic System 1. Performance Based Organization Board 2. Creation of the Position of the Chief Operating Officer 3. First Steps in Establishing the PBO 4. Establishing Specific Measures for FAA Operational and Financial Performance 5. Structural Recommendations to Achieve Effective FAA Financial Reform C. Institute Management Reforms in AU Components of the FAA D. Summary   V. FAA'S REVENUE STREAM MUST BECOME COST-BASED A. Recommendation B. Present Method of Financing the FAA C. Why Change Is Needed D. Future Method of Funding the FAA 1. Future User Charge System 2. Air Carriers Should Pay Cost-Based User Charges 3. General Aviation Should Continue to Pay a Fuel Tax 4. There Should Continue To Be a General Fund Contribution 5. Process for Getting to Cost-Based User Charges   VI. FAA MUST BETTER MANAGE AIR TRAFFIC CONTROL OPERATING COSTS AND INCREASE CAPITAL INVESTMENTS A. Recommendation B. The FAA's Requirements Estimates 1. Operations 2. Facilities and Equipment 3. Research. Engineering & Development C. Potential Budget Savings from the FAA Requirements Baseline   VII. AIRPORT CAPITAL FINANCING REQUIREMENTS MUST BE MET A. Recommendations B. Background C. Other Recommendations and Findings   VIII. CONCLUSION