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THE SECRETARY OF TRANSPORTATION |
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July 11, 2002
Dear Mr. Chairman: I am writing to thank you for your support of the Federal Aviation Administration's (FAA) supplemental request by including $100 million in the Senate passed emergency supplemental bill and to request your assistance in passing legislation that achieves the goals set by the President I am grateful for your leadership in securing the $100 million in FAA funding. These funds are critical to continue the safety and air traffic control operations at the FAA. The President requested $100 million in transfer authority for the FAA more than 90 days ago. However, because the supplemental is still pending, the FAA is facing a funding crisis. Without much needed flexibility, the FAA will soon be forced to reduce services to the public to unacceptable levels. After September 11th, the FAA decided it had to increase security at over 300 manned air traffic control facilities, such as air traffic control towers. In the short term, this included the immediate hiring of additional guards to secure these facilities. Since then, the FAA has replaced most of these guard services by substituting in their place increased physical security, i.e., improved fencing, video cameras, and better access controls, significantly reducing the costs associated with guard service. These higher unexpected security costs in fiscal year 2002 totaled $90 million. In addition to the higher security costs, the FAA also has faced other unbudgeted costs this fiscal year such as higher contract weather monitoring and telecommunications charges, higher technician employment, and the higher than expected government-wide pay raise. The total of all of these unexpected costs was over $200 million. The FAA has taken a number of cost cutting measures to partially absorb these costs. The agency has already identified offsets of about $90 million including a total freeze on non-controller and non-maintenance technician hiring and reductions to travel, training, supplies and contracts. The President's emergency supplemental request proposed that the FAA be allowed to transfer $100 million from its Facility and Equipment account and from the Airport Improvement Program (A/P). The use of AIP for security is not inconsistent with the programs purpose, since most of the facilities that received additional guard service are located at airports and Congress made security expenses eligible from AlP for fiscal year 2002. The transfer would not increase the budgetary resources appropriated to the FAA. Should the supplemental funding requested for the FAA not materialize, the FAA would have to furlough 35,000 Air Traffic Services employees, potentially from five to eight days at the end of the fiscal year. The impact on the aviation system would be felt throughout the Nation during the summer travel season with the airlines and other airspace users experiencing significant delays and service disruptions. Although I hope this will not become necessary, due to contractual requirements, notification of our contingency planning to the unions representing the affected employees has taken place. I appreciate the many challenges before you today in addressing the funding priorities for our Nation. However, I feel compelled to share with you the impact of further supplemental funding delays on our ability to keep the air transportation system working without significant disruption. Thank you for your support and, as always, I look forward to working with you on these important issues. A similar letter has been sent to the Ranking Member, Senate Committee on Appropriations, to the Chairman and Ranking Member of the House Committee on Appropriations, and to the Chairmen and Ranking Members of the House and Senate Subcommittees on Transportation, Committees on Appropriations.
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