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Aviation Finance: Observations on Potential FAA Funding Options
Gerald L. Dillingham (au)
The FAA, the Airport & Airway Trust Fund, & the excise taxes that support the Trust Fund are scheduled for reauth. at the end of FY 2007. FAA is supported by the Trust Fund, which receives revenues from excise taxes paid by users of the nat. airspace system (NAS). This report addresses the following questions: (1) What advantages & concerns have been raised about the current approach to collecting revenues from NAS users to fund FAA, & to what extent does available evidence support the concerns? (2) What are the implications of adopting alternative funding options to collect the revenues contributed by users that fund FAA’s budget? (3) What are the advantages & disadvantages of authorizing FAA to use debt financing for capital projects? Illus.
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