Sequestration will hit FAA operations, White House says

The FAA could see its budget slashed by more than $1 billion if sequestration goes ahead as planned according to the White House Office of Management and Budget (OMB).

OMB reported that the FAA will have its $15.9 billion budget reduced by $1.04 billion annually, stating that the FAA’s “ability to oversee and manage the Nation’s airspace and air traffic control will be reduced.”

The OMB analysis shows that the portion of the FAA’s operations account will lose $792 million. As the FAA already faces challenges in operational funding, the cuts could significantly hinder many areas, including inspections and certification programs. Other FAA accounts will also see reductions, including $229 million to the facilities and equipment budget and $14 million in funds dedicated to research engineering and development. The Airport Improvement Program (AIP) will not be impacted by sequestration.

The FAA faces the lion’s share of potential cuts to the Department of Transportation. While the distributions of any potential cuts remain unknown, analysts predict that simply delaying projects or staff attrition will not likely allow it to meet its reduced budgetary authority.

An earlier study commissioned by the Aerospace Industries Association also indicates the enormous economic implications of sequestration. Lost output by the aviation industry is estimated between $9.2 billion and $18.4 billion, leading to approximately 132,000 jobs lost. Furthermore, should sequestration delay implementation of NextGen, roughly $40 billion and 700,000 jobs could be lost by 2021 due to an overworked, outdated, and inefficient air transportation control system. Those figures increase to $80 billion and 1.3 million jobs by 2035.

Congress must come up with a mechanism by the end of the year to prevent these catastrophic cuts. Visit ARSAAction.org to tell your lawmakers that our industry and our economy cannot take this blow.

~~~ posted 10/4/12 ~~~