FAA funding

Finally

Aug 5th 2011, 5:14 by R.W. | NEW YORK

HARRY REID, the Senate majority leader, announced yesterday afternoon a "bipartisan compromise" (a novel concept in these decidedly partisan times) that should end the partial shutdown of the Federal Aviation Administration (FAA). Congress had been unable or unwilling to resolve a minor disagreement over the extension of the agency's operating-authority bill, which expired on July 22nd. Under the compromise, the democratic-controlled Senate will pass, by unanimous consent, the Republican House bill. Although neither chamber has formally adjourned, most of Congress has already left Washington for the summer, so tomorrow's Senate vote will be a pro-forma session.

The main sticking point in the House Republican bill was a $16.5m cut in federal subsidies for passengers at a dozen or so remote rural airports. Democrats also opposed wording that would make it more difficult for aviation industry workers to unionise. However the new deal does not resolve the contentious differences. Instead, Ray LaHood, the transport secretary, will use his authority to waive the subsidy cuts. Apparently, he had to the authority all along to grant waivers to any community that convincingly requested one, but the White House was loath to use it as an option.

President Obama called the agreement a "step forward" and said "[we] can't afford to let politics in Washington hamper our recovery." Certainly the announcement will be welcome news for the 4,000 furloughed FAA employees and the 70,000 workers affected by the suspension of more than 200 construction and research projects. Taxpayers should be happy too. About $30m a day was lost in uncollected federal taxes, as the FAA was not authorised to collect taxes on airline tickets. Kathy Hochul, a New York democratic congresswoman, estimated the standoff between the two parties caused "over $350m in damage to our economy."

But the compromise does not truly resolve the funding issue. The House bill only temporarily extends the aviation agency's operations. It expires on September 16th. Congress really needs to sort out FAA funding once and for all. The FAA's long-term funding bill expired four years ago. Since then Congress has passed, with relatively little fuss, 20 stopgap bills. Mr Reid admitted that "this agreement does not resolve the important differences that still remain. But I believe we should keep Americans working while Congress settles its differences, and this agreement will do exactly that."

Source

http://www.economist.com/blogs/democracyinamerica/2011/08/faa-funding?fsrc=scn/tw/te/bl/finally