oversight

National Airspace System: Review of FAA's Spending for Operations

Published by the Government Accountability Office on 1999-06-18.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

      United States
GAO   General Accounting Offkze
      Washington, D.C. 20548

      Resonrces, Community, and
      Economic Development Division


      B-282797


      June 18,1999

      The Honorable Robert E. Andrews
      House of Representatives

      Subject: National Airsnace Svstem: Review of FAA’s Snendin~ for Onerations

      Dear Mr. Andrews:

      The activities of the Federal Aviation AdmCstration (FAA) are financed through four
      major budget accounts: Facilities and Equipment Grants-in-Aid-Airports; Research,
      Engineering, and Development; and Operations. Historically, these accounts, except for
      the Operations account, receive all of their funding from the Airport and Airway Trust
      Fund (Trust Fund). ’ FAA’s operations costs, which include the salaries and related
      benefits of FAA staff as well as funds for operating and maintaining equipment and
      facilities used in carrying out the agency’s mission, are funded from both the Trust Fund
      and the U.S. Treasury’s General F’tmd.2 As figure 1 shows, appropriations for the
      Operations account increased steadily from fiscal year 199lthrough fiscal year 2000,
      raising the total by nearly 50 percent. This growth in funding for the Operations account
      contrasts markedly with the relative stability or slight fluctuation in funding for the
      other budget accounts.




      ’The Airport and Airway Trust Fund was created by the Airport and Airway Development and Revenue Acts of 1970 and
      receives aviation-related excise taxes paid by users. FAA estimates that the Trust Fund will have an uncommitted
      balance of about $6.8 billion at the end of Sept. 1999.
      ’ The spending amounts included in this report are based on budgetary accounting principles. Under these principles,
      spending is recognized when obligations are incurred. Obligations result from contracts, purchase orders, and similar
      events. Financial accounting principles recognize expenses when goods and senices are consumed, thereby facilitaG.ng
      a comparison of resource costs with related services or benefits provided.


                                               GAO/RCED/OGC/AIMD-99-222R              FM’s    Spending    for Operations
B-282797


Figure 1: FAA’s Budget History, Fiscal Years 1991-2000

Dollars in millions




    $5,000
    $6,000


    $4,000




                                  -+-Operations
                                  +-Grants-in-Aid-Airports
                                  -@-Facilities      and Equipment
                                  *Research,          Engineering,      and Development

 Note: Data for fiscal years 1991-99 represent appropriations, while data for fiscal year 2000 represent the
 administration’s budget request.

 Source: GAO’s presentation of data from FAA.




 You asked us to examine FAA’s spending from its Operations account. On the basis of
 discussions with your office, we agreed to answer three specific questions: (1) What is
 the history of funding FAA’s operations activities from the Trust Fund? (2) Does FAA
 have data to allow a determination of whether its spending for operations is cost-
 efficient and cost-effective? (3) What changes could FAA institute in its various
 programs, offices, and projects to reduce its spending for operations? On June 10,1999,
 we briefed your staff on the results of this work. Enclosure I contains the
                                                                          r
                                                                              materi& we
 presented at that time.




                                            GAOiRCED/OGC/AIMD-99-222R               FM’s    Spending     for Operations
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In summary, we found the following:

l    The Trust Fund was created to finance aviation infrastructure, some admimstrative
     expenses, research and development, and the maintenance and operation of the
     National Airspace System. During the 29year period from fiscal year 1970 through
     fiscal year 1998, the Trust Fund was used to pay for operations activities in 23 fiscal
     years3 Over this period, the percentage of spending for operations financed from
     the Trust Fund varied widely, from 0 percent to 100 percent, averaging about 27
     percent annually.

l    Because FAA lacks complete and timely cost accounting data and has other
     weaknesses in financial management, the ability to perform a valid and reliable
     financial accounting determination of whether the agency’s spending for operations
     is cost-efficient and cost-effective is limited. Such a determination would require
     the ability to compare the full cost of FAA’s operating activities-including the
     identification of the direct and indirect costs of these activities-to output
     measurements. Cost accounting data facilitate this comparison. In the absence of
     complete and timely financial cost accounting data, we analyzed FAA’s largest
     operating cost-payroll-and       compared the agency’s annual growth in payroll
     spending with that of the federal government as a whole.4 We found that for fiscal
     years 1990-97,FAA’s and the federal government’s spending for payroll followed
     generally similar patterns. For fiscal years 1998 and 1999, FAA’s spending grew at a
     siguificantly greater rate. Among the factors that contributed to this difference was
     that a higher concentration of FAA employees work in technical or safety areas,
     where pay and benefits tend to be higher. The average grade of FAA employees is
     GS-12,whereas the average grade for federal employees is GS9. Additionally,
     during this tune period, FAA added safety-related staff to its workforce to bolster
     the agency’s mission. In fiscal year 1998, the number of safety-related staff
     increased by over 1,100 employees. Finally, the growth in payroll spending during
     these 2 years can be attributed to increases associated with a new pay system for air
     traffic controllers, which went into effect on October 1,1998. FAA estimates that
     the costs associated with this new system will require approximately $1 billion in
     additional funding over 5 years beginning in fiscal year 1999.

m GAO and the Department of Transportation’s Inspector General have recommended
  that FAcl. correct weaknesses in its accounting system to accurately accumulate
  reliable, cost-based data In addition, the Jnspector General has recommended that
  FAA correct weaknesses in its underlying accounting system to produce a set of
  auditable financial statements. 5 FAA plans to correct these weaknesses by the end
  of September 1999. FAA’s cost accounting system is currently under development
  and is scheduled to be fully implemented by September 2001. FAA’s successful

’ Enclosure II provides a history of the Trust Fund, and table 11.1in that enclosure presents the appropriations and
tirmncing sources for FAA’s major accounts, by fiscal year, for fiscai years 1970-98.
’Payroll spending for the federal government includes both civil and rniIitary personnel. For this analysis, we used gross
obligations.
’ See Air Traffic Control: Immoved Cost Information Needed to Make Billion Dollar Modernization Investment Decisiom
(GAO/AIMTr97-20, Jan 22,1997) and Fiscal Year 1998 Financial Statements. Federal Aviation Administration (DOT/OIG-
72-1999-070,Mar. 8,1999).


3                                         GAO/RCED/OGCMMD-99-222R                  FAA’s    Spending    for Operations
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    completion of these tasks is critical to the development and implementation of a
    cost accounting system that can identify costs and potential opportunities for
    savings within FAA’s programs, offices, and projects. In addition, FAA has actions
    under way, such as contracting for the operation of low-activity air traffic control
    towers, that have reduced its operating costs6 Expanding this and other efforts and
    implementing the recommendations that GAO and others have made could further
    increase the effectiveness and efficiency of FAA’s spending for operations.
    Moreover, two recent bills call for FAA to take additional actions to reduce its
    operating costs.’ One of the bills, the Aviation Investment and Reform Act for the
    21” Century (H.R.lOOO),has provisions related to sharing the costs of contracted
    operations at the low-activity air traffic control towers, implementing management
    reforms at FAA, and verifying FAA’s costs that would help .ensure more effective and
    efficient operations.

Agency Comments              and Our Evaluation

We provided a draft of this report to the Department of Transportation and FAA for
review and comment. We met with FAA officials, including the Manager, Office of
Financial Management. According to FAA, problems with the lack of a cost accounting
system-namely, problems with property, plant, and equipment-are related to FAA’s
Facilities and Equipment account and not to the Operations account. While
acknowledging that a cost accounting system would help the agency manage its
operations, FAA commented that such a system was not requjred to review its spending
for operations. FAA officials made other clarZying comments, which have been
incorporated as appropriate.

We agree that the major problems with FAA’s accounting data identified to date relate
to property, plant, and equipment, which fall under the Facilities and Equipment
account. However, our objective was to assess whether FAA has data to allow a
determination of whether its spending for operations is cost-effective and cost-efficient.
Making such a determination requires the ability to compare the full cost of operating
activities with output measures. Determinm g the full cost of output measures requires
the ability to identify and assign the indirect as well as the direct costs of these
activities. The data that are currently available provide a picture only of what is spent
on operations, not of the full cost of operations. We maintain that cost accounting data
are important to make a valid and reliable determination of whether FAA’s operations
spending is cost-effective and cost-efficient.

Scope and Methodology

To determine the history of funding FAA’s operations from the Trust Fund, we reviewed
the Trust Fund’s legislative history and analyzed the funding profile for F&4’s
operations activities. To analyze FAA’s spending for operations activities, we reviewed


6 Until recently, FAA classified air traffic control towers as level I (least busy) through level V (busiest). Low-activity
towers generally include those at level 1. Beginning in Oct. 1998, FAA reclassified these facilities into 14 levels,
according to the volume of air traffic and the complexity of operations.
‘Aviation Investment and Reform Act for the 21” Century (H.R. 1000). (See sections 131,302,303,304, and 307).
Department of Transportation and Related Agencies Appropriations Bill, 2000 (H.R. 20&I), House Report 106180.


4                                            GAO/LLCED/OGCh.IMD-99-222R                 FAA’s Spending       for Operations
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financial audit reports ‘prepared by the Department of Transportation’s Inspector
General to ascertain whether FAA produced accurate and reliable cost information that
could be used as a basis for determinin g how effectively and efficiently the agency was
spending its operations funds. To compare F&I’s and the federal government’s growth
in spending for payroll, we analyzed budget data from fiscal year 1990 through fiscal
year 1999 and consulted with the Oftke of Personnel Management on the federal
government’s payroll costs and characteristics.



We performed our review from April through June 1999 in accordance with generally
accepted government auditing standards.

Unless you publicly announce its content earlier, we plan no further distribution of this
report until 5 days after the date of this letter. At that time, we will send copies of the
report to the Honorable Rodney E. Skater, Secretary of Transportation; the Honorable
Jane F. Garvey, Adminktrator, Federal Aviation Administration; and other interested
parties. We will also make copies available to others on request.

If you have any questions about this report, please call me at (202) 5122834. Key
contributors to this report were John Fretwell, Belva Martin, John Noto, and Susan
Poling.

Sincerely yours,




Associate Director,
 Transportation Issues

Enclosures - 2




5                                GAO/RCED/OGC/AIMD-99-222R     FAA’s Spending   for Operations
Enclosure I




       GAO




              Review of FAA’s Spending
                    for Operations




 6                        G4O/RCED/OGCMMD-99-222R   FAA’s   Spending   for Operations
Enclosure I




       GAo         Research Questions

              l   What is the history of funding the Federal Aviation
                  Administration’s (FAA) operations activities from
                  the Airport and Airway Trust Fund (Trust Fund)?

              l   Does FAA have data to allow a determination       of
                  whether its spending for operations is cost-
                  efficient and cost-effective?

              l   What changes could FAA institute in its various
                  programs, offices, and projects to reduce its
                  spending for operations?




7                                      GAO/RCED/OGC/MMD-99-222R   FAA’s   Spending   for Operations
Enclosure I




       GAO History of Funding Operations                   From the
           Trust Fund

          l   The Airport and Airway Trust Fund was created in
              1970 under the Airport and Airway Development and
              Revenue Acts to finance
              a>aviation infrastructure,
              s>some administrative expenses,
              )a research and development, and
              >athe maintenance and operation (operations) of the National
                 Airspace System.




8                                      GAO/RCED/OGC/AIMD-99-222R    FAA’s    Spending   for Operations
Enclosure1




       GAO         History of Funding Operations From the
                   Trust Fund (cont.)

             l   During the 29-year period from fiscal year 1970
                 through fiscal year 1998, the Trust Fund was used
                 to pay for operations activities in 23 fiscal years.

             l   The percentage of spending for operations
                 financed from the Trust Fund varied widely, from 0
                 percent to 100 percent, averaging 27 percent
                 annually.




                                       GAO/RCED/OGC/AIMD-99-222R   FAA’s   Spending   for Operations
Enclosure I



       GAO Does FAA Have Data to Determine Whether Its
                   Spending for Operations Is Cost-Efficient         and
                   Cost-Effective?
              l   In fiscal year 1999, FAA’s operations budget
                  totaled approximately $5.6 billion, which is 57
                  percent of the agency’s total budget.

              l   FAA estimates that by fiscal year 2004, the
                  operations budget will grow to approximately
                  $7.6 billion and will represent 67 percent of its
                  total budget.

              l   As figure I shows, FAA’s operations budget is
                  primarily payroll-driven.




                                         GAO/RCED/OGC/AIMD-99-222B         FAA’s   Spending   for Operations
Enclosure I




       MO           Does FAA Have Data to Determine Whether Its
                    Spending for Operations Is Cost-Efficient and
                    Cost-Effective? Icont.1
         Fiaure I: Fiscal Year 1999 Otmations Budaet, bv Cateaory
         Dollars in millions

                                 Contracts, services,
                                 and other costs -
                                 $690 (12%)                  Supplies   and office




         Note: Percentages do not total 100 percent because of rounding.




11                                                      GAO/RCED/OGC/AlMD-99-222R    FAA’s   Spending   for Operations
Enclosure I




       GAO          Does FAA Have Data to Determine Whether Its
                    Spending for Operations Is Cost-Efficient and
                    Cost-Effective? (cont.)
              l   Because FAA lacks complete and timely cost
                  accounting information and has other weaknesses
                  in financial management, the ability to perform a
                  valid and reliable financial accounting
                  determination of whether the agency’s spending
                  for operations is cost-efficient and cost-effective is
                  limited.




                                                                                                           ‘5..




                                                                                                            :




                                                                                                            i

                                                                                                           ._

                                                                                                       I




 12                                       GAO/RCED/OGC/MMD-99-222R   FAA’s Spending   for Operations
Enclosure I




        ~0        Does FAA Have Data to Determine Whether Its
                  Spending for Operations Is Cost-Efficient and
                  Cost-Effective? (cont.1

              l   For example, without reliable cost information,
                  FAA cannot measure the actual cost of
                  operating a facility or maintaining a project,
                  compare these costs against established
                  baselines, or use this information to help
                  improve future’cost estimating efforts.




13                                   GAO/RCED/OGC/AIMD-99-222R   FAA’s Spending   for Operations
Enclosure I




       GAO Does FAA Have Data to Determine Whether Its
                   Spending for Operations Is Cost-Efficient and
                   Cost-Effective? (cont.)
              l   In the absence of complete and timely cost
                  accounting data, we examined FAA’s largest
                  operations expenditure--payroll--and compared
                  the agency’s annual growth in payroll spending
                  with that of the federal government as a whole.




 14                                     GAO/RCED/OGC/AIMD-99-222R   FAA’s   Spending   for Operations
Enclosure I




       GAO          Does FAA Have Data to Determine Whether Its
                    Spending for Operations Is Cost-Efficient and
                    Cost-Effective? (cont.1
              l   Our comparison of FAA’s zind the federal
                  government’s annual growth in payroll spending
                  shows initial similariiies and some differences:
                  B’For fiscal years 1990-97, FAA’s and the federal
                    government’s spending for payroll generally followed
                    similar patterns.
                  >’For fiscal years 1998 and 1999, FAA’s spending grew at
                    a significantly greats+ rate, in part because
                     )’a higher concentration of FAA employees work in
                       technical or safety areas, where pay and benefits tend
                       to be higher, and
                     >>several hundred additional safety-related staff were
                       hired bv the aaencv. (See fia. II for details.)




15                                        GAO/RCED/OGCLAlMD-99-222R     FAA’s   Spending   for Operations
Enclosure I




       GAO          Does FAA Have Data to Determine Whether Its
                    Spending for Operations Is Cost-Efficient and
                    Cost-Effective? (cont.1
       Fiaure II: Growth in Pavroll SDendina-FAA   vs. the Federal Govemr
           I


              6%

              6%

              4%

              2%

              0%

              -2%




 16                                     GAO/RCED/OGC/AIMD-99-222B     FAA’s   Spending   for Operations
Enclosure I




     GACI How Could FAA Reduce Its Spending for
          Operations?
          l    Without reliable cost information, FAA is limited in its
               ability to meaningfully improve the performance of its
               programs, offices, and projects.
         l    . To develop reliable cost information, GAO and/or the
                Department of Transportation’s Inspector General
                have, among other things; recommended that FAA
               >’correct weaknesses in its accounting system to
                 accumulate the reliable data needed for producing
                 auditable financial statements (currently scheduled for
                 Sept. 1999) and
               a’complete the development and implementation of a cost
                 accounting system (currently scheduled for Sept. 2001).




17                                       GAO/RCED/OGChIMD-99-222R      FAA’s   Spending   for Operations
Enclmure I




      ~0           How Could FAA Reduce Its Spending for
                   Operations? (cont.)

             l   The agency has the potential to further reduce
                 costs and gain efficiencies through actions such as
                  )>fully implementing its new personnel management system
                    and provisions of its recent collective bargaining
                    agreement with air traffic controllers, both of which would
                    allow more efficient use of staff resources, and
                  a’continuing to contract for the operation of low-activity
                    towers, to consolidate flight service stations, and to
                    restructure headquarters and regional offices.




 18                                           GAO/RCED/OGC/AI1MD-99-222B       FAA’s   Spending   for Operations
Enclosure I


                               Eistorv     of the Airport   and Airway   Trust F’und


The Airport and Airway Trust Fund was created in 1970 when the Congress enacted the Airport
and Airway Development and Revenue Acts to deal with the inadequacy of the nation’s airport
and airway system to meet the current and projected growth in aviation.* The 1970 act
comprises two titles: title I, the Airport and Airway Development Act of 1970, and titIe II, the
Airport and Airway Revenue Act of 1970. We wilI refer to these two laws simply as the 1970 act.
Title I authorized federal funds, at least $250 million a year for 5 years, for the acquisition,
estabbshment and improvement of air navigational facilities and another $280 milhon a year for
5 years for airport development. Title II established the Trust Fund, made up of aviation-related
excise taxes, to finance these activities. The aviation excise taxes included an increase in the
gasoline tax on generaI aviation, an increase in the passenger ticket tax for domestic flights, a
new tax on international commercial passengers, a new tax on air freight waybills, and a new
annual aircraft registration tax.

Provisions      of the 1970 Act

Under the 1970 act, sections 14a, 14b, and 14c authorized airport development, which was
defined as any work involved in constructing, improving, or repairing a public airport.” It
included the removal, marking, and lighting of airport hazards; the installation of navigational
aids and safety equipment; and the acquisition of land for future airport development and air
navigational facilities. The Senate report that accompanied the 1970 act referred to airport
development grants and air navigation and control facilities as capital investments.‘o

Section 14(d) of the 1970 act required that the balance of the monies available in the Trust Fund
be aUocated for administrative expenses incident to the airport development grants, for the
maintenance and operation of air navigation facilities, and for research and development
activities.

In addition to section 14, section 208(f) of title II of the 1970 act set forth the categories of
expenditures that could be paid from the Trust Fund. Section 208(f)(l)(B) stated that the Trust
Fund was avaiIable for obligations that were attributable to “planning, research and
development, construction or operation and maint&ance of: (i) air traffic control, (ii) air
navigation, (iii) communications, or (iv) supporting services for the airway system.” Section
208(f)(l)(C) also allowed FAA administrative expenses incident to airport development to be
paid from the Trust Fund.

There is some indication that the Senate Commerce Committee believed that at the outset, most
of the revenues from the Trust Fund would be earmarked for capital improvements while
general tax revenues would be appropriated to continue to finance the operation and



‘Pub. L No. 91-258,& Stat. 219 (1970).
’ Pub. L No. 91-258,sec. 11,84 Stat 219,220.
”&   S. Rep. No. 91-565,at 20 (1969).


19                                                GAO/RCED/OGC/AIMD-99-222B    FAA’s   Spending   for Operations
Enclosure II


maintenance of the air traffic control system.” The Senate report accompanying the bill
explained,


         The reported bill allocates, for specific capital investment purposes, portions of
         the total user charge-derived revenues and provides that no other user charge
         derived trust fund revenues should be obligated for other purposes until the
         minimum amounts have been allocated to the capital investment portions of the
         program.... After these allocations have been made, remaining trust fund
         revenues accruing from user charges and from general appropriations may be
         expended for the other purposes. . . . 12

However, the Senate Finance Committee, with jurisdiction over the Trust Fund, did not set
priorities between capital improvement spending and operation and maintenance spending. Its
report said simply, “The Trust Fund is created in order to insure that the aviation user taxes are
expended only for the expansion, improvement and maintenance of the air transportation
system.*13The language of section 208 reflects this lack of prioritization.


Taken together, sections 14 and 208 in the 1970 act explicitly authorize the use of the Trust Fund
for certain admimstrative expenses, for the operation and maintenance of the air traffic control
system, and for research and development.

Amendments          to the 1970 Act

Debate over the proper use of the Trust Fund and what proportion could be spent on the
operation and maintenance of the air traffic control system began almost immediately. Six
months after the passage of the 1970 act, the Department of Transportation (DOT), in a
supplemental budget request for fiscal year 1971, proposed using only $100 mihion of the $280
million authorized in section 14 for airport development and $226 million rather than the $250
million authorized for air navigation facilities and equipment. DOT proposed using the rest of the
money from the Trust Fund to fund FAA’s operation and maintenance programs.14



I’& at 20, ‘21(1969), and comments by Senator Magnuson, Chairman of the Senate Commerce Committee and floor manager for the
bill, 116 Cong. Rec. S2266 (daily ed. Feb. 24,197O) [statement of San. Magnuson].
I* S. Rep. No. 91665, at 20,21 (1969).
I3S. Rep. No. 91-706,at 10 (1970).
” During the course of this dispute between the Nixon administration and the House and Senate authoriaing committees, the General
Accounting Office was asked whether the administration’s actions constituted an illegal diversion of funds. Since neither the regular
nor the supplemental appropriation had yet been enacted, we found it premature to make findings. H-77406, Dec. 29,197O. We did
note that “it appears that the Administration’s supplemental funding request will result in less expenditure for airport capital
improvements and thus such improvements will not be accorded the priority which the Senate Committee on Commerce apparently
desired. . . .Of course, if the Congress now feels that amounts over and above those requested by the Administration should be made
availabie to carry out such expressed intent, such additional amounts may be appropriated by the Congress.” In response to a
request from San. Magnuson, Chairman of the Senate Commerce Committee, for bii comments, the Comptroller General wrote in a
June 23,1971, letter, “whether the Congress intended to require that the minimum amounts specified in Section 14 of the 1970Act be
expended or reserved in the Trust Fund before monies in the fund could be expended for other purposes has been the subject of
considerable controversy between the admin&ation and the Congress. Accordingly, it would appear desirable that the intent of the
 Congress in this matter be clarified.” B-77406, June 23,197l.


 20                                                   GAO/RCED/OGC/AIMD-99-222R                FAA’s   Spending    for Operations
Enclosure II


Table 11.1: FAA’s Budget Information:            Airport and Airway Trust Fund and General Fund Shares

Dollars in millions




The Trust Fund generally financed 100 percent of the Grant-in-Aid Airports; Facilities and Equipment; and Research, Engineering,
and Development appropriations. To cover shortfalls during the transition years-fiscal years 197~72--General Fund revenues
totaling $495 million ($255 million in fiscal year 1970, $215 million in fiscal year 1971 and $15 million in fiscal year 1972) were also
used to finance these appropriations. For these years, FAA’s data did not fully break out the amounts of General Fund revenues
financing each of these appropriations.

Source: GAO’s presentation of data from FAA.




23                                                      GAO/IZCED/OGC/AfMD-99-222R                FAA’s   Spending    for Operations
Enclosure II

Dollars in millions
I                                                              I                                     Fiscal    vear                                  I
Account/appropriation                                          I        19761          19771         19781             19791        19801     1981
Grants-in-Aid-Airports                                                $515.01       $510.0~        $555.01            $644.01     $677.01   $570.0




    Fund
    Percentage of FAA’s appropriations     from the                      65%            59%           59%               56%          57%      54%
    General Fund
    Percentage of FAA’s Operations appropriation                          0%            14%           14%               15%          15%      22%
    from   the Trust   Fund

The Trust Fund generally financed 100 percent of the Grant-in-Aid Airports; Facilities and Equipment; and Research, Engineering,
and Development appropriations. To cover shortfalls during the transition years-fiscal years 1976-72--General Fund revenues
totaling $495 million ($265 million in fiscal year 1970, $215 million in fiscal year 1971 and $15 million in fiscal year 1972) were also
used to finance these appropriations. For these years, FAA’s data did not fully break out the amounts of General Fund revenues
financing each of these appropriations.

Source: GAO’s presentation of data from FAA.




    24                                                    GAO/RCED/OGCLAIMD-99-222R                FAA’s      Spending     for Operations
Enclosure II

Dollars in millions
                                                                                                      Fiscal year




Fund
Percentage of FAA’s appropriations from the General                      48%            32%            59%           30%           48%     47%
Fund
Percentage of FAA’s Operations appropriation                             35%            50%             0%           41%            16%    21%
from the Trust Fund

The Trust Fund generally financed 100 percent of the Grant-in-Aid Airports; Facilities and Equipment; and Research, Engineering,
and Development appropriations. To cover shortfalls during the transition years-fiscal years 1970-72-General Fund revenues
totaling S495 million ($255 million in fiscal year 1970, $215 million in fiscal year 1971 and $15 million in fiscal year 1972) were also
used to finance these appropriations. For these years, FAA’s data did not fully break out the amounts of General Fund revenues
financing each of these appropriations.

Source: GAO’s presentation of data from FAA.




25                                                      GAO/RCED/OGC/‘MD-99-222R                  FAA’s Spending      for Operations
Enclosure II

Dollars in millions

                                                                                                    Fiscal year
 Account/appropriation                                                 19881          19891          19901       19911             19921       1993
 Grants-in-Aid-Airports                                         1 $1,268.71       $1,400.01      $1,425.01 $1,800.01          $1, 900.01   $1.800.0
 Facilities and Equipment                                          1 ,I 08.11      1,384.21       1,721.21    2,095.41         2.409.01     2,301.7
IResearch, Engineering, and Development                               153.41         159.91         170.21      205.01            218.11      230.0
 Operations                                                     1  3J84.01         3,445.0[       3,824.6/    4,036.91         4,360.0(     4,530.vj
   Trust Fund share
   General Fund share
 Total FAA appropriations                                       1    5,714.2(       6,
   Share of FAA’s budget from the Trust Fund                    1    3,356.2(       3,415.4(       4
   Share of FAA’s budget from the General Fund
 Percentage of FAA’s appropriations from the Trust
 Fund       -
 Percentage of FAA’s appropriations from the General                     41%            47%            . 42%         25%           25%         25?
 Fund
 Percentage of FAA’s Operations appropriation                            26%            14%             21%          50%           48%         500/
 from the Trust Fund                                                                                                                                   I


The Trust Fund generally financed 100 percent of the Grant-in-Aid Airports; Facilities and Equipment; and Research, Engineering,
and Development appropriations. To cover shortfalls during the transition years-fiscal years 1976-72-General Fund revenues
totaling S495 million ($265 million in fiscal year 1970, $215 million in fiscal year 1971 and $15 million in fiscal year 1972) were also
used to finance these appropriations. For these years, FAA’s data did not fully break out the amounts of General Fund revenues
financing each of these appropriations.

Source: GAO’s presentation of data from FAA.




 26                                                      GAO/RCED/OGCL4IMD-99-222R                 FAA’s Spending       for Operations
Enclosure      II


Dollars in millions

t                                                             I                                 Fiscal    vear                                    1
IiGGuntlarxwotx . siation                                                     1994           1995             1996         1997            1998
 Grants-in-Aid-Airports                                                   $1,690.0       $1,450-O        $1,450.0      $1,460.0        $1,700.0
 Facilities and Equipment                                                  2,054.7        1,960.4         1,855.l       1,937.7         1,900s
 Research, Engineering, and Development                                      254.0          251.6            185.7        208.4           199.2
 Operations                                                                4,579.0        4,572-i         4,642.7       4,954-g         5,336.5
  Trust Fund share                                                         2,294.5        2,450.3         2,222-g       1,700.4         1,901.6
  General Fund share                                                       2,284.5        2,121.8         2,419.8       3,254.5         3,434.g
 Total FAA appropriations                                                  8,577.7        8,234.i         8,133.5       8,561 .O        9,136.2
  Share of FAA’s budget from the Trust Fund                                6,293.2)       6,112.2)        5,713.61      5,306.5)        5,701.3
r Share of FAA’s budget from the General Fund 1                            2,284.5/       2J21.91         2,419.9/      3,254.51        3,434.g
 Percentage of FAA’s appropriations from the                                  73%            74%              70%          62%             62%
 Trust Fund
 Percentage of FAA’s appropriations from the                                    27%            26%            30%            38%           38%
 General Fund
 Percentage of FAA’s Operations                                                 50%            54%            48%            34%           36%
 appropriation    from the Trust Fund

The Trust Fund generally financed 100 percent of the Grant-in-Aid Airports; Facilities and Equipment; and Research, Engineering,
and Development appropriations. To cover shortfalls during the transition years-fiscal years 1970-72-General Fund revenues
totaling $495 million ($265 million in fiscal year 1970, $215 million in fiscal year 1971 end $15 million in fiscal year 1972) were also
used to finance these appropriations. For these years, FAA’s data did not fully break out the amounts of General Fund revenues
financing each of these appropriations.

Source: GAO’s presentation of data from FAA.




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27                                                     GAO/RCEDIOGCL4IMD-99-222B                 FAA’s   Spending     for Operations
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