FY 2009 Budget In Brief 

1 
FY 2009 Budget In Brief 
FY 2009 Budget In Brief 

Table of Contents 

Message from the Acting Administrator............................................................................................................... 1 

We are the FAA ....................................................................................................................................................... 5 

Building for the Future on Our Past ...................................................................................................................... 9 

Overview of FY 2009 Budget ............................................................................................................................... 11 

 We’ve Changed Our Look ............................................................................................................... 11 

 FY 2009 Request by Goal ................................................................................................................ 12

Preparing for the Future — NextGen ................................................................................................................. 15 

Facts & Figures.......................................................................................................................................................... 17 

Supplementary Charts............................................................................................................................................. 18 

 Comparison of Old and New Accounts........................................................................................... 18 

 Budget Authority by Appropriations Account................................................................................. 19 

 Personnel Resource Summary ........................................................................................................... 20 

 Airport and Airway Trust Fund......................................................................................................... 21 
FY 2009 Budget In Brief 
FY 2009 Budget In Brief 

1 

Message from the Acting Administrator 

Robert A. Sturgell

The FAA’s FY 2009 budget request follows 

through on the President’s commitment to a safe 

and efficient National Air Transportation System 

while continuing to focus on accountability and 

performance. Our request ensures that the 

world’s best aerospace system becomes even 

safer and more efficient during a time of increasing demand for FAA services. For several years, 

we have pushed to manage more effectively, 

rein in costs, and better respond to our customers. 

Our FY 2009 request moves FAA further along 

this continuum, toward the performance-based 

organization that the taxpayer and Congress 

demand that we be. 

Meeting Today’s Challenges

The budget request puts us on firm ground in 

critical areas that matter most: safety staffing 

and improving our nation’s air traffic control 

system. 

Safety continues to be our number one priority.

The FY 2009 budget includes funding to hire a 

net increase of 306 new controllers, a level 

consistent with the targets being developed for 

the updated staffing plan to be published in 

March 2008. The FY 2009 request also maintains the staff added to our Aviation Safety 

workforce in FY 2007—2008 while increasing 

staffing by 30 positions in FY 2009. This will 

allow us to continue to meet the safety management demands of a growing industry. 

In March 2008, FAA will submit to Congress its 

annual update to the Controller Workforce Plan, 

A Plan For the Future: The FAA’s 10-Year Strategy 

for the Air Traffic Control Workforce. As outlined 

in the Plan, almost three-quarters of the controllers hired after the 1981 PATCO strike will reach 

retirement age over the next decade. Steps to 

keep the system moving smoothly are already 

under way, and we plan on hiring more than 

17,000 new air traffic controllers through 2017. 

We need to maintain a continuous pipeline of 

recruits and trainees because it takes one to 

three years of on-the-job training for developmental controllers to achieve certified professional controller (CPC) status. 

The FAA’s goal is to have the right number of 

people in the right facilities at the right time. 

Our 10-year plan recognizes the dynamics of 

staffing to traffic as well as accounting for workloads at individual facilities. We have made 

significant progress in refining controller staffing 

requirements and in effectively staffing facilities 

by utilizing improved scheduling practices, new 

automated tools, and better management of 

leave. In its February 9, 2007 report, the DOT 

Inspector General found that FAA “has made 

significant improvements” in the controller hiring 

process, as well as “made progress in reducing 

the time and costs to train new controllers.” We 

understand how critical it is to have adequately 

staffed air traffic control facilities, and will continue to take action at the facility level should 

adjustments become necessary due to changes in 

traffic volume, unanticipated retirements, or other 

attrition. 

With the air traffic control system at capacity, 

the Next Generation Air Transportation System 

(NextGen) is the only way we can continue to 

meet demand. NextGen is intended to address 

today’s constraints and comprehensively modernize and transform the air transportation system. 

NextGen is a complex, comprehensive transformation that is already underway. It will mean 

new technologies, procedures, standards, as well 

as new roles for the humans in the system. Given 

the scope of this undertaking, substantial investment is required now to achieve near-term deployment of mature technologies, develop mod-
FY 2009 Budget In Brief 

2 

erately mature concepts for operational viability, 

and perform research to better define long-term 

capabilities. 

This multi-agency effort is led by the Joint Planning and Development Office (JPDO). Active 

participants in JPDO include the Department of 

Transportation (DOT), FAA, NASA, DoD, DHS, 

and Commerce along with numerous nongovernmental stakeholders. 

Over the past year, FAA has positioned itself to 

lead the implementation of much of the NextGen 

infrastructure. The new OEP, or Operational 

Evolution Partnership, is serving as a decision 

making venue. The OEP involves all major parts 

of our agency in setting NextGen priorities, as 

well as the place from which commitments will be 

shared with industry partners. The FY 2009 

budget represents strong collaboration between 

JPDO and the OEP to 

define and estimate the 

budgetary requirements 

for FY 2009. Moving 

forward, that collaboration will provide oversight and track progress, 

ensuring that NextGen 

objectives are achieved. 

In the past year, key 

NextGen defining documents have matured. 

JPDO released public 

versions of the Enterprise Architecture and Concept of Operations in June 2007. In July, the 

initial baseline of the NextGen Integrated Work 

Plan was completed. The work plan lays out the 

progression from the present to the future, with 

activities and responsible agencies identified. As 

envisioned, the work plan would guide the formulation of future budgets within partner agencies. 

Our NextGen investment portfolio includes programs and activities deemed “transformational,” 

i.e., those that will truly move toward the next 

generation system. The FY 2009 portfolio consists of $631 million in ATO Capital Programs, 

$57 million in Research, Engineering & Development, and $704 thousand in Safety & Operations, for a total of $688 million. This funding 

level includes $19.5 million to directly support 

the JPDO: $5 million from ATO Capital and 

$14.5 million from R,E&D. We expect this mix of 

funding to change in the future as NextGen 

matures and we capture other elements of FAA 

investment, such as Grants-in-Aid for Airports. 

Likewise, in the future we expect to depict not 

only investments, but operational savings as part 

of the NextGen transformation. 

FAA Funding Reform and Reauthorization: To 

support NextGen, our budget request emphasizes the need for a stable funding source, one 

that is based on our costs and the services we 

provide. Most of FAA’s current funding comes 

from the Airport and Airway Trust Fund, which in 

turn is funded primarily through ticket taxes (and 

other taxes to lesser extents). 

As it stands, there is no link between Trust Fund 

tax revenues and the actual cost to provide 

service. Since 2000, low-cost carriers and other 

factors have changed the business of aviation. 

The airlines also are favoring smaller jets. With the 

number of passengers 

increasing, this trend portends for a greater workload. Even general aviation activity is increasing 

and shifting toward highperformance jet aircraft, 

which increase FAA workload without a commensurate increase in revenue. 

The bottom line is that the 

current system draws little connection between 

revenue and FAA’s workload. 

After extensive consultation with our stakeholders, we developed and submitted to Congress early in 2007 an FAA reauthorization 

proposal that provides a stable, fair, and costbased funding structure to ensure that our costs 

and revenues are better aligned and that our 

stakeholders are treated equitably. Our proposal also maintains a well-supported general 

fund contribution for public good services and 

provides strong incentives for FAA to continue to 

control costs and meet demand efficiently, via 

ongoing stakeholder consultation. Both the House 

and Senate have debated the Administration’s 

proposed legislation and developed their own 

plans. The Administration continues to support the 

major themes of maintaining safety, building 

capacity, and facilitating the transformation of 

the system into NextGen, while helping FAA 
FY 2009 Budget In Brief 

3 

continue its momentum of operating more like a 

business. FAA’s budget request assumes that FAA 

will implement it’s new financing system starting 

in 2010. 

A Responsible Request

The FAA is doing more than ever to manage itself 

responsibly, and it is paying off. At the same 

time, airlines continue to face financial uncertainty and evolve their business models. Without 

question, we must prepare for the future, and the 

future begins with responsible investments in 

capital and a highly capable workforce. Given 

the vital role aviation plays in the Nation’s economy and the need to prepare for the future, our 

funding request is designed to support America’s 

growing demand for aviation-related services. 

Moving America safely. It’s what we do. 

Robert A. Sturgell 

Acting Administrator 
FY 2009 Budget In Brief 

4 
FY 2009 Budget In Brief 

5 

WE ARE THE FAA 

FAA -- Like A Business with a Public Mission

At FAA, “acting more like a business” isn’t just a 

slogan. We’re actively engaging in a comprehensive pay-for-performance program, consolidating operations, improving internal financial 

management, and increasing benefits to our 

customers. Our beacon will always be our mission – to provide the safest, most efficient aerospace system in the world. Our bottom line is 

results for our stakeholders, including the taxpayer and traveling public. 

The transformation over the past five years has 

been steady and relentless, as we’ve embraced 

the vision of the President’s Management Agenda 

(PMA) and its aggressive strategy to improve 

management throughout the federal government. 

The evolution of the PMA complements the strategic vision of our Flight Plan. It contains a number 

of management performance measures, including 

a cost control performance measure requiring 

each organization to contribute cost efficiencies 

that save money or avoid costs for the agency. 

Through the Flight Plan and PMA, we’ve made 

dramatic gains in human capital, competitive 

sourcing and consolidations, financial performance, and, ultimately, accountability to the bottom line of our customers.

What may be our most difficult challenge in 

2010 is upon us. Our proposed financing of Air 

Traffic Services will radically reform the way 

FAA is funded. It will also increase the scrutiny, 

and therefore the transparency, of our services. 

Providing better links between the costs of services being provided and amounts paid by service beneficiaries is critical. This budget request 

embarks the agency on this path, and we are 

ready for the challenge. 

Pay-for-Performance – Human Capital Reform 

Personnel reform for the agency, granted in 

1998, is starting to bear fruit, with conversion 

from the traditional GS-Schedule pay system to 

pay for performance. Accountability for results is 

systemic throughout our organization, with 90 

percent of our employees on the pay-forperformance system, including our executives. 

Flight Plan performance targets must be achieved 

before annual pay raises are calculated. Executives and managers have a good deal of discretion in rewarding high-performing employees, 

and incentives are present to ensure quality work 

and innovation are rewarded. Executives are 

also eligible for short-term incentive increases 

when specific performance thresholds are met or 

exceeded. This conversion is allowing the agency 

to flatten pay bands and tie performance incentives to pay increases. 

Major Competitive Sourcing, Consolidations & 

Asset Management Efforts

In October 2005, we completed the largest nonmilitary A-76 competition in history. The first 

three years will see cost savings of $66.4 million 

in FY 2007, $51.7 million in FY 2008, and $14.8 

million in FY 2009, for a cumulative cost savings 

and avoidance of over $317 million by the end 

of FY 2009. Our network of automated flight 

service stations, which provide weather guidance 

and other assistance to the pilots of small airplanes, has been reduced from 58 to 18 in the 

fourth quarter of FY 2007. The latter comprises 

15 previously existing flight service stations and 

3 new ones built by Lockheed Martin. The contract not only saves money, it also commits the 

vendor to modernize and improve the flight 

services we provide to general aviation pilots. In 

addition, the employees who left federal service 

as a result of this transition were given offers to 

work for Lockheed Martin, the successful bidder 

of the contract. 

In FY 2006, the Air Traffic Organization (ATO) 

Where Safety, Accountability and Innovation Come First 
FY 2009 Budget In Brief 

6 

began its Service Area Consolidation effort to 

consolidate its administrative and staff support 

functions from nine service areas to three. This 

will allow us to provide better service to customers while saving an estimated $360 to $460 

million over the next 10 years. In FY 2008, we 

anticipate savings of $13 million from Service 

Area Consolidation. Also in FY 2006, FAA completed the consolidation of 11 accounting offices. 

In FY 2005, we began centralizing responsibilities for real property management into a Real 

Estate Management System (REMS). In FY 2006, 

we continued to enhance the REMS for tracking 

and managing the Department’s assets into a 

newly created Aviation Logistics Organization. 

We established a baseline for performance 

metrics and set targets in an Asset Management 

Plan. This plan will be used to monitor our progress during FY 2009. Cost savings are anticipated through the consolidation and disposal of 

real property assets, as well as termination and 

renegotiation of federal property leases. 

We will continue to pursue efforts for competitive 

sourcing, consolidation and asset management as 

we scrutinize our organization and mission requirements. 

Strategic Information Technology (IT) 

Improvements

As in most businesses, IT investments can be expensive and quickly become obsolete. The FAA 

is being more proactive about IT decisions. For 

example, the Server Consolidation project is an 

FAA-wide initiative overseen by the IT Executive 

Board (ITEB) to consolidate computer servers as 

well as the physical facilities that support servers. 

The approach includes identifying, targeting, and 

shutting down unnecessary servers, data centers 

and applications. This endeavor saved $3.8 

million during FY 2007. 

The renewal of the Oracle Enterprise License 

Agreement (OELA) brought FAA and DOT extended services (10,000 more seats) and increased Oracle products and services at reduced 

costs. The other DOT modes will now contribute 

to the annual costs in the amount of their existing 

Oracle license support costs. This will result in a 

direct cost reduction for Oracle products of approximately $5.5 million over a 6 year period 

(FY 2005 through FY 2010) for DOT. 

The Office of Information Technology (AMI) of 

the Mike Monroney Aeronautical Center 

awarded a five-year blanket purchase agreement (BPA) with Dell Corporation for IT commodity equipment for use during FY 2006. The FAA 

exercised the option to continue the agreement in 

FY 2007. IT equipment available for purchase in 

the BPA includes desktops, laptops and servers; 

and peripherals such as printers and monitors. 

The BPA was established with a “firm fixed discount” approach securing a guaranteed discount 

so that equipment can be purchased at a significant discount despite any retail price fluctuations 

that occur during the year. Administrative costs 

are minimized by establishing a process for any 

organization to order directly from Dell under 

the BPA. In FY 2007, cost savings from this activity totaled $9.6 million. 

Based on past studies and reports of best practices, the FAA is pursuing a strategy to consolidate its helpdesk support. The intent is to move 

from a dispersed set of helpdesk provider organizations with varying practices and levels of 

maturity to a single provider that aims to provide 

mature levels of service with effective automated 

tools. The agency goal is to reduce the cost of 

helpdesk and call centers through consolidation. 

Through consolidation, the agency anticipates it 

will realize cost savings that industry has claimed 

from similar initiatives. This includes reductions in 

staffing required for helpdesk support, reduced 

numbers of level one and two helpdesks, higher 

reliance on automated tools to enable remote 

systems administration (at less cost than being 

physically at the desktop), and greater standardization of helpdesk and desktop support. 

This consolidation is expected to save approximately $3.4 million in FY 2008. 

Improved Financial Management Performance 

A major focus for the entire agency is controlling 
FY 2009 Budget In Brief 

7 

costs. Our strategic and budget planning goals 

are more closely aligned than ever, and they 

both include explicit cost savings initiatives. They 

are integral to FAA’s strategy of improving our 

efficiency by integrating budget and performance planning. 

Slowing Growth of Operating Costs -- We 

know that labor costs drive a significant share of 

our budget, and we are slowing the rate of 

growth in labor costs, such as back-filling positions with new employees at lower pay grades 

when possible. We are also increasing workforce productivity in several ways: 

Through proactive management of our worker’s 

compensation caseload we’ve slowed the growth 

of this program, which has resulted in $5.5 million 

in avoided costs in FY 2005 and $7 million in FY 

2006. For example, we now follow up on all 

newly filed claims to ensure the 

employee returned to work as 

soon as practical following a 

work-related injury or sickness. 

In addition, the ATO has taken 

steps to bring back employees 

who have been on workers 

compensation rolls for more than 

one year. In FY 2007, this effort 

yielded over $20.3 million in 

avoided costs. 

Over the last several years, 

ATO reduced its overhead expenses by cutting multiple levels of senior management, reducing its executive ranks by 20 

percent. In addition to the Service Area Consolidation noted above, ATO has used an Activity 

Value Analysis to help streamline its operations, 

and eliminate and consolidate administrative 

staffs and support functions. Since FY 2003, the 

ATO non-safety workforce was reduced by 16 

percent. In FYs 2005 and 2006, this reduction 

resulted in a savings of over $84 million that 

carries forward to the future. The long-term 

value of this downsizing exceeds $100 million 

per year. 

Smarter Capital Investment Choices -- A capital 

investment team was created in 2004 to review 

financial and performance data. The team completes an evaluation of baseline performance 

and includes associated variances, obligations, 

schedule milestones and earned value management (EVM) data. EVM will provide an early 

warning for potential and actual variances as 

well as help the program manager develop 

corrective actions. The team continues to thoroughly evaluate the performance of capital 

programs. In the past, these business case reviews 

have identified $460 million in lifecycle savings 

by restructuring/terminating 10 programs, 6 of 

them major. To date, over 165 projects were 

reviewed in various stages of acquisition, capital 

formulation, and business case development. 

SAVES -- The Strategic Sourcing for the Acquisition of Various Equipment and Supplies (SAVES) 

initiative is an ambitious effort begun in FY 2006 

to implement best practices from the private 

sector in the procurement of administrative supplies, equipment, and IT hardware. It is expected to achieve $9 million in savings annually. 

Clean Audit -- After five 

years of unqualified audit 

opinions, we received a qualified opinion on our FY 2006 

financial statements due to 

lack of documentation supporting our Construction in 

Progress (CIP) balance. After 

an intensive, year-long effort 

to review the balance and 

restate our FY 2006 financial 

statements, the auditors issued 

a revised – now unqualified – 

opinion for that year. In addition, we received an unqualified opinion on our 

FY 2007 financial statements, with a material 

weakness related to the timely processing of 

transactions and accounting of Property, Plant, 

and Equipment, including the CIP account.

Performance Improvement Initiative -- The main 

objective of the Performance Improvement PMA 

initiative (formerly called the Budget and Performance Integration initiative) is to improve 

program performance. The integration of performance information into budgetary decisionmaking is one way we do this. In support of this 

initiative, FAA shows how increases or decreases 

in our budget affect those activities and drive 

performance, and how the activities across the six 

goal areas work together. The initiative uses 

performance measures to track program viability, which is one of six criteria to reach “green” 

status on the PMA report card. 
FY 2009 Budget In Brief 

8 

Throughout the agency, resources are focused on 

tracking efficiency measures. As our Cost Accounting System (CAS) data improves with the 

expansion to all of our Lines of Business, we will 

be able to capitalize on analysis of how well 

we’re doing, or where we need to improve. 

Among the efficiency measures developed to 

track progress are measures for each program 

assessed through a Program Assessment Rating 

Tool (PART) review, examples of these include: 

ATO is tracking its overhead rate, comparing 

non-facility labor dollars to total labor dollars. 

Targets have been established and provide a 

compass for future decision-making. 

The Airport Improvement Program (AIP) is making 

best practice improvements throughout its regions 

based upon its evaluation of its efficiency measures of grant administration. 

The Research, Engineering & Development’s 

(RE&D) efficiency measure is to maintain a RE&D 

management workforce comprising no more than 

10 percent of its overall RE&D workforce. In FY 

2007, this allowed RE&D to redirect $1.2 million 

into its direct research program. 

Enhanced Capacity for Our Customers

America’s economic success depends on the efficiency of our transportation network. Every day, 

our capacity accomplishments, such as Domestic 

Reduced Vertical Separation Minimum (DRVSM), 

help provide more economical and efficient 

aircraft operations. DRVSM created an additional six layers of cruise levels at higher altitudes enabling aircraft to operate at more fuelefficient cruising altitudes while also increasing 

system capacity. Implemented in FY 2005, 

DRVSM was estimated to yield over $5.3 billion 

in savings from FY 2005 through FY 2016, but 

with the rise in jet fuel prices, the savings will 

exceed $13.4 billion, a 152 percent increase. 

Advanced Technologies and Oceanic Procedures 

(ATOPs) are now available in 24 million square 

miles of airspace. Using ATOPs, the Atlantic 

routes will save airlines 6.5 million pounds of fuel 

and $8 million per year. 

We also have Required Navigation Performance 

(RNP) approaches and departures that let aircraft use runways in low visibility conditions that 

would otherwise have been inaccessible. RNP is 

truly a game changer for opening up airports in 

challenging environments and that could mean 

fewer canceled or diverted flights, thereby resulting in a savings of lost time and money.

In conclusion, our results are not only marked by 

cost savings and increased capacity in the system, but by an enviable safety record that makes 

us a model for aviation safety practices throughout the world. We keep in front of us the beacon 

of our mission and will allow nothing to divert us 

from our course. 
FY 2009 Budget In Brief 

9 

BUILDING FOR THE FUTURE 

ON OUR PAST

Accomplishments — The Past Year in Review 

With a workforce of 45,416 and an annual 

budget of $14.5 billion in FY 2007, FAA operates and maintains the most complex air traffic 

control system in the world. More than half of the 

world’s air traffic is managed by the FAA. We 

conduct research to improve aviation safety and 

efficiency, and provide grants to improve almost 

3,400 eligible public-use airports in the United 

States. FAA also regulates commercial space 

launch activities to ensure public safety. Under 

the steady leadership of Administrator Marion 

Blakey and her successor, Acting Administrator 

Robert Sturgell, FAA achieved a number of significant undertakings in FY 2007, including: 

NextGen. NextGen promises a system that will 

be safer, able to meet growing demand, and 

responsive to evolving business models. The new 

system will integrate satellite-based navigation, 

surveillance, and networking. This year, the FAA’s 

Joint Planning and Development Office (JPDO) 

completed NextGen’s three planning documents 

that will guide us through the next 15 years and 

beyond. We also created a partnership of FAA 

executives and a new executive-level position to 

guide the implementation of the NextGen plan. 

We fully funded the development of SWIM, a 

networking-based initiative that is an essential 

part of NextGen’s initial Network-Enabled Operations (NEO) capability and a high priority for 

the JPDO and the NextGen partner agencies. 

In August 2007, FAA approved a contract with 

ITT Corporation to provide ADS-B services. ADSB is a satellite-based technology that broadcasts 

aircraft identification, position and speed with 

once-per-second updates. Under the contract, ITT 

will install, own, and maintain the ground infrastructure, while FAA pays for the surveillance and 

broadcast services. We issued a Notice of Proposed Rulemaking (NPRM) in October 2007 to 

mandate ADS-B avionics in the cockpit for controlled airspace and busy airports. 

Flight Plan Goals. We made significant progress 

in achieving the four goals detailed in our strategic plan—the FAA Flight Plan: ensuring safety, 

increasing capacity, demonstrating international 

leadership, and achieving organizational excellence. All of these achievements play an integral 

role in our efforts to implement NextGen. 

Safety. Over the past 5 years, we have achieved 

the highest safety standards in the history of 

aviation. Even so, our goal is—as always—to 

continue to improve safety. The number of general aviation fatal accidents is below our not-toexceed ceiling again this year, ending at 314 

fatal accidents. While aviation accidents in 

Alaska decreased 9 percent from the past fiscal 

year, we had 10 fatal accidents: four in Part 

135 (commuter and on-demand operations) and 

six in general aviation. 

With the first private human space flights expected to take place in 2009, we issued regulations for crew and space flight passengers who 

want to experience this type of travel. The new 

rules maintain FAA’s commitment to protect the 

safety of the uninvolved public and call for 

measures that enable passengers to make informed decisions about their personal safety. 

Capacity. FY 2007 saw a six percent increase in 

National Airspace System (NAS)-related flight 

delays over last year, an indicator that the sys-
FY 2009 Budget In Brief 

10 

tem is rapidly reaching critical mass. Capital projects, including the opening of two runways and 

an innovative new type of taxiway, have expanded capacity at three of the nation’s busiest 

airports. 

In November 2006, a new runway at Boston 

Logan Airport was commissioned, providing delay reduction benefits. In 

April 2007, an innovative 

end-around taxiway 

opened at Atlanta’s 

Hartsfield-Jackson International Airport, eliminating about 600 runway 

crossings per day and 

thereby increasing the 

safety and efficiency of 

the busiest airport in the 

United States. 

International Leadership. Collaboration with 

aviation authorities 

throughout the world is 

essential to shaping a 

seamless global aerospace system. We 

gained approval to open 

an office in Brazil, our 

first office in Latin America in 10 years. We also 

hired new senior representatives to lead offices 

in Abu Dhabi, Moscow, 

and Dakar. 

NextGen technologies 

and concepts must be harmonized, interoperable, 

and compatible with other international systems; 

we collaborated with aviation authorities worldwide to make this happen. We signed cooperative agreements with several key nations across 

the world, which will allow us to spur acceptance 

of NextGen technologies. We signed a formal 

agreement establishing a trilateral, cooperative 

NextGen strategy group with Canada and Mexico. 

We also created a new international program 

aimed at further reducing aviation’s environmental impact. The Atlantic Interoperability Initiative to Reduce Emissions (AIRE), a scientific and 

research venture between FAA, the European 

Commission, and industry partners, will focus on 

upgrading air traffic control standards and procedures for trans-Atlantic flights. 

Organizational Excellence. We continue to 

transform business practices to improve efficiency 

throughout the agency. New initiatives this year 

resulted in $79 million in 

cost efficiencies. Consolidation of our financial 

accounting and workers’ 

compensation functions 

resulted in over $20 million in cost efficiencies. 

Over the next decade, 

approximately 72 percent of the air traffic controller workforce will become eligible to retire. To 

meet the challenges of 

this wave of retirements 

and the increasing demand for air travel, we 

updated the Air Traffic 

Controller Workforce 

Plan, which provides a 

comprehensive strategy 

to make sure we have the 

right number of controllers in the right place at 

the right time. The plan 

calls for hiring and training more than 17,000 

new air traffic controllers 

over the next 10 years. 

Our workplace and our workforce are changing, 

and we must be robust and flexible enough to 

compete for and retain qualified, high quality 

employees. We are implementing creative 

strategies to recruit Air Traffic Controllers and 

Aviation Safety Specialists. We expanded our 

Collegiate Training Initiative (CTI) schools from 

14 to 23. We marketed employment opportunities at universities, military transition centers, state 

and local employment services, and Government 

recruitment centers. We’ve also used technology 

to expand our reach and have promoted the 

agency on MySpace, FaceBook, and CraigsList, 

as well as through newspaper and radio ads. 
FY 2009 Budget In Brief 

11 

We’ve Changed Our Look 

FAA has prepared this budget request in a new 

account structure aligned with our lines of business and consistent with the agency’s reauthorization proposal. Starting in FY 2009, the Operations and Facilities & Equipment accounts will no 

longer receive appropriations. Instead, funding 

is requested in two new accounts: Safety & Operations and Air Traffic Organization. The new 

accounts each include funding from both of the 

traditional Operations and Facilities & Equipment 

accounts. The Research, Engineering & Development and Airport Improvement Program accounts 

will remain essentially unchanged under the proposal. 

The following table displays the FY 2009 budget 

in the proposed new account structure, along with 

enacted amounts for the past two years: 

OVERVIEW OF FY 2009 BUDGET

FY 2007 FY 2008 FY 2009

Enacted Enacted Request

Operations $8,374 $8,740 

Air Traffic Organization (ATO) 6,740 6,966

Aviation Safety (AVS) 1,003 1,082

Commercial Space Transportation (AST) 12 13

Staff Offices 619 680

Facilities & Equipment $2,518 $2,514 

Safety & Operations $2,052 

Aviation Safety (AVS) 1,187

Commercial Space Transportation (AST) 14

Staff Offices 851

Air Traffic Organization $9,670 

Salaries & Expenses 7,079

Capital Programs 2,591

Research, Engineering & Development $130 $147 $171 

Grants-in-Aid for Airports (Ob Lim) $3,515 $3,515 $2,750

TOTAL: $14,537 $14,915 $14,643 

Comparison of Budgets - FY 2007-2009

($ in millions)
FY 2009 Budget In Brief 

12 

FY 2009 Request by Goal 

The FAA mission is to promote aviation safety 

and mobility by building, maintaining, and operating the Nation’s air traffic control system; overseeing commercial and general aviation safety 

through regulation and inspection; and providing 

support to improve the capacity and safety of 

our airports. The FY 2009 budget request of 

$14.6 billion reflects the Administration’s commitment to increase the performance and capacity 

of our aviation system and is directly related to 

the agency’s Flight Plan 2008-2012. 

Safety – The FAA’s safety goals for FY 2009 are 

to reduce U.S. commercial airline fatalities per 

100 million people on board to fewer than 8.31 

and to reduce the rate of general aviation fatal 

accidents. To achieve these goals, FAA’s FY 

2009 budget request includes $9.9 billion to 

operate and maintain the air traffic control system, inspect aircraft, certify new equipment, 

ensure the safety of flight procedures, oversee 

the safety of commercial space transportation, 

and develop a replacement air traffic data and 

telecommunications system. 

The request includes an increase of $11.3 million 

to hire and train sufficient air traffic controllers to 

achieve our hiring targets set in the 10-Year 

Strategy for the Air Traffic Controller Workforce. 

It also includes $800,000 for 30 new positions to 

support continued development of the Air Traffic 

Oversight office, which was formed in FY 2004 

to improve the delivery of air traffic services, 

and maintains the staffing gains to our aviation 

safety workforce during FY 2007-2008. Total 

aviation safety staffing will reach 7,069 by the 

end of FY 2009. 

In response to the Office of Inspector General’s 

FY 2007 Aviation Safety Management Challenge, FAA will continue working to reduce the 

precursors of aircraft accidents, runway incursions 

and operational errors. To better map movements on the ground and in the air over airports 

and thus reduce the risk of runway incursions, the 

agency will deploy nine Airport Surface Detection Equipment Model X systems in FY 2009. In 

FY 2007, for the sixth year in a row, FAA met its 

target for decreasing serious runway incursions. 

We’ve worked to increase the level of safety by 

implementing new technology and procedures. 

FY 2009 Request by Goal

$ in millions

Safety, $9,855

67%

Organizational Excellence, $481

Security, Preparedness & 3%

Response, $219

2%

Global Connectivity, $63

1%

Environmental Stewardship, 

$352

2%

Reduced Congestion,

$3,673

25%
FY 2009 Budget In Brief 

13 

Required Navigational Performance approaches 

enable pilots to fly much more precise routes into 

airports. We put 40 in place in FY 2007 including ten at Atlanta and another three in Dallas/

Fort Worth. Precision and safety go hand in 

hand. While FAA met its target for operational 

errors, reducing them further as traffic continues 

to increase remains one of the agency’s top 

priorities. To address this challenge, FAA will 

continue to concentrate on outreach, awareness, 

technology, and improved procedures and infrastructure. 

FAA’s efforts during the past ten years have also 

resulted in reduced general aviation fatal accidents, which are at their lowest recorded levels in 

history. General aviation (GA) fatal accidents 

trended lower than target in FY 2007 with a 

preliminary estimate of 314 fatal accidents. 

Rotorcraft, including Emergency Medical Service 

(EMS) flights, showed a sharp decline. The FAA 

worked with various members of the GA community during the year, including aeromedical 

evacuation and charter services, to promote 

education and training on instrument check guidance and effective pilot/instructor mentoring 

programs. 

Reduced Congestion – The aviation industry is 

responsible for moving people and products, and 

it contributes approximately $640 billion to our 

economy. Over two million people a day travel 

on our Nation's airlines and more than one-third 

of the value of all goods is moved by air. Passenger traffic exceeds pre-9/11 levels at most 

of the nation’s top airports. Passenger totals are 

increasing and expected to more than double in 

the next decade. Commercial aviation will be 

flying more than a billion passengers by 2015. 

By FY 2011, air carrier, commuter, and air taxi 

operations are anticipated to increase approximately 10.7 percent from FY 2006. By FY 2014, 

without any changes to the system, we expect to 

see delays 62 percent higher than they are 

today. 

The multi-agency Joint Planning and Development 

Office (JPDO) is charged with developing a 

vision for the air transportation system’s longterm transformation. FAA’s challenge is to realize JPDO’s vision for the Next Generation Air 

Transportation System (NextGen). Ready to 

embrace the hard work necessary for transformation, FAA has expanded its existing capacityenhancement plan, formally known as the Operational Evolution Plan (OEP), to become the chief 

operational implementation plan for its NextGen 

responsibilities. The expanded OEP – now the 

Operational Evolution Partnership – details the 

path to the NextGen system, integrating a myriad of FAA planning activities into one comprehensive, high-level blueprint. 

To achieve an on-time arrival rate of 88.22 

percent of flights in FY 2009 and to increase 

average daily capacity at major airports, the 

Department requests $3.7 billion, primarily for 

FAA’s Air Traffic Organization (ATO), Safety & 

Operations Capital Accounts, and Airport Improvement Grants. This includes funding to replace obsolete radars and to continue automating terminal control facilities, as well as $21 

million for oceanic automation to improve flight 

route flexibility. Programs that will form the core 

of NextGen are also funded, including $41 

million to develop an internet-like System-Wide 

Information Management network and $300 

million to continue implementing Automatic Dependent Surveillance Broadcast technology 

throughout the National Airspace System. $14 

million is included in FY 2009 Research, Engineering and Development (RE&D) funding to support 

the JPDO. The FY 2009 Airport Improvement 

Program request includes $1.3 billion aimed at 

reducing congestion, largely through the building 

and maintaining of runways. 

In addition, the Department proposes to budget 

$21 million to provide for the assessment, development, acquisition, implementation, operation, 

and sustainment of additional civil capabilities to 

the Global Positioning System beyond the second 

and third civil signals already contained in the 

current Global Positioning System. These capabilities provide continuous, world-wide civil 

space-based positioning, navigation and timing 

services free of direct user fees for civil, commercial, scientific and homeland security uses. 

Global Connectivity – The request includes 

$63.1 million to expand the agency’s international leadership role and to help improve 

safety. FAA will expand training and technical 

assistance programs that help civil aviation authorities meet international standards, as well as 

promoting seamless global operations. 

The FAA will continue to promote increased ex-
FY 2009 Budget In Brief 

14 

ternal funding for training and technical assistance programs that help civil aviation authorities 

around the world meet international safety standards. FAA will also continue to work with its 

international partners and the International Civil 

Aviation Authority to harmonize global technological standards, and to expand the use of 

global satellite navigation systems. 

Environmental Stewardship – The budget request includes $276.8 million for FAA in FY 2009 

to ensure that the number of people in the United 

States who are exposed to significant aircraft 

noise levels—a Day/Night Average Sound Level 

of 65 decibels or more—continues to decline. 

FAA will address the environmental impacts of 

airport projects, primarily aircraft noise. FAA 

will also provide expertise and funding to assist 

in abating the impacts of aircraft noise in 

neighborhoods surrounding airports by purchasing land, relocating persons and businesses, 

soundproofing residential homes or buildings 

used for educational and medical purposes, 

purchasing noise barriers and monitors, and 

researching new noise prediction and abatement 

models and new technologies. The FY 2009 

request includes $10 million in new RE&D funding 

for the Continuous Low Emissions, Energy and 

Noise Technologies program to accelerate the 

introduction of quieter and cleaner technology in 

commercial fleets, and to initiate a NextGen 

Environmental Management System. 

Regulatory factors at the local, State, and federal levels are also considered in the decisionmaking process. FAA funds pollution prevention; 

complies with occupational safety, health and 

environmental regulations; promotes good energy management practices; and conducts environmental impact analyses. 

Security, Preparedness, and Response - While 

NAS security is critical to the security of the flying 

public, most of the $218.6 million requested 

focuses on enhancing the security of its personnel, 

facilities, and communications. 

FAA ensures the operability of the national airspace through the facilities, equipment and personnel of the air traffic control system, which is 

essential to the rapid recovery of transportation 

services in the event of a national crisis. Additionally, the budget request includes funding to 

continue upgrading and accrediting facilities, 

procure and implement additional security systems, and upgrade the Command and Control 

Communications equipment. 

Organizational Excellence - The request includes 

$481.2 million to support the Department’s Organization Excellence goals and to ensure the 

success of FAA’s mission through stronger leadership, a better-trained and safer workforce, enhanced cost-control measures, and improved 

decision-making based on reliable data. The 

funding required to support FAA’s management 

reform initiatives allows the agency to strengthen 

its internal systems, paving the way for the 

achievement of other strategic goals set forth in 

the Flight Plan. The request supports activities 

for two primarysets of goals: The President’s 

Management Agenda initiatives and the Flight 

Plan Organizational Excellence performance 

targets. The agency’s contributions to DOT’s major 

acquisitions and federally-funded infrastructure 

programs performance measures improve the 

management of the Department’s capital investments. These contributions result from FAA’s major 

air traffic control systems and airport infrastructure projects that are on schedule and within estimated costs. 
FY 2009 Budget In Brief 

15 

PREPARING FOR THE FUTURE — 

NEXTGEN

Preparing for 2015 

In 2004 the Bush Administration launched the 

Next Generation Air Transportation system – 

(NextGen). NextGen involves an unprecedented 

collaboration between government and industry. 

Involving four cabinet level departments, Transportation, Commerce, Defense, Homeland Security, and NASA, the FAA, and the White House 

Office of Science and Technology, NextGen is 

about developing the national aviation transportation system of the future. It envisions a system 

that is far more efficient and scalable in order to 

meet expected future demands in capacity and 

handle the wide range of new aircraft and aviation business models. 

NextGen represents a long term and continuing 

transformation of the National Air Transportation 

System and covers a period of nearly two decades. However, to achieve benefits in improved 

capacity and in the management and efficiency 

of air traffic in the nearer term, and certainly by 

2015, certain key NextGen investments in new 

technologies and capabilities need to be made 

now. 

Two critical investment areas that will form much 

of the technological foundation for NextGen are 

Satellite Based Navigation and Network Enabled 

Operations. These will form the basis for applications and capabilities that will lead to a more 

scalable and flexible air transportation system. 

Automatic Dependent Surveillance Broadcast 

(ADS-B) is a critical part of developing our initial 

capabilities in satellite based control and navigation. ADS-B allows an aircraft to continuously 

transmit its location, speed and altitude to other 

planes, pilots, and controllers. And it does it with 

more accuracy than today’s radar. In practical 

terms, ADS-B will give real-time cockpit displays 

of traffic information, both on the ground and in 

the air, to all users, throughout the system. ADSB provides an essential capability for reduced 

separation and allowing for greater predictability in departure and arrival times. ADS-B has 

been tested in Alaska, and in the areas where it 

has been in use, the accident rate for ADS-B 

equipped aircraft has dropped substantially. 

A significant aspect of NextGen is the level of 

interagency alignment and collaboration that has 

been achieved. Working with all of the JPDO’s 

partner agencies, critical research, investment, 

and deployment plans are being aligned. This is 

a challenging undertaking, but essential if 

NextGen is to provide the benefits to our traffic 

system and our national economy. 

Aviation and aerospace in both primary and related industries make up as much as nine percent 

of America’s Gross Domestic Product and at the 

same time represent the fastest growing source 

for technological exports. However, if America is 

to retain its leadership in this industry, if it is to 

assure the smooth flow of passengers and cargo 

to support our economy, then NextGen needs to 

be a part of our future. 

Another key capability is network enabled operations. Through the System Wide Information 

Management (SWIM) Program and working with 

our partner agencies, the JPDO is setting the 

stage for a major change in the way air traffic 

data is shared throughout the system. This is a 

joint agency initiative that involves not only 

shared information on 

aircraft position and intent, but also weather 

and security information. 

The impact of this emerging technological capability will be a dramatic 
FY 2009 Budget In Brief 

16 

improvement to manage air traffic, better forecast weather conditions, and deal with security 

concerns. 

The future of NextGen is being defined in two 

key products – The Enterprise Architecture and 

the Concept of Operations. Both of these documents, developed jointly by the member agencies 

and with substantial industry involvement were 

rolled out in 2007. These tools explain how the 

system will work and in particular provide a description of the development and deployment of 

the essential NextGen capabilities. They are 

definitional documents and provide the framework for the future of America’s Air Transportation System. 

The FY 2009 budget would also fund NextGen 

demonstrations and infrastructure engineering 

activities, critical to identifying early implementation opportunities and reducing programmatic 

risks. Some of this funding would be used to 

demonstrate and refine the concept of trajectory 

based operations. When operational, this concept will allow flights to follow their preferred 

and most fuel-efficient routes. The following table illustrates the NextGen Investment Portfolio: 

ATO Capital

FY 2008

Enacted

FY 2009

Request

NextGen Network Enabled W eather (NNEW ) 7,000 20,000

Data Communications for Trajectory Based Operations 7,400 28,800

Demonstrations and Infrastructure Development 50,000 28,000

NextGen – System Development - 41,400

NextGen – Trajectory Based Operations - 39,500

NextGen – Reduced W eather Impact - 14,400

NextGen – High Density Arrivals/Departures - 18,200

NextGen – Collaborative ATM - 27,700

NextGen – Flexible Terminals and Airports - 37,100

NextGen – Safety, Security and Environment - 8,000

NextGen – Networked Facilities - 17,000

NextGen – Integrated Airport 1,960 -

System-W ide Information Management 23,358 41,000

ADS-B NAS Wide Implementation – Segment 1b 85,650 300,000

ADS-B Air to Air 9,350 -

NAS Voice Switch 3,000 10,000

SubTotal ATO Capital 187,718 631,100

Research, Engineering and Development (RE&D) 

Flight Deck/Maintenance/System Integration Human Factors * 1,000 -

Air Traffic Control/Technical Operations Human Factors * 1,000 -

W ake Turbulence 8,000 7,370

NextGen – Air Ground Integration - 2,554

NextGen – Self Separation - 8,025

NextGen – Weather in the Cockpit - 8,049

NextGen Environmental Research – Aircraft Technologies, Fuels and 

Metrics - 16,050

NextGen – JPDO 14,321 14,494

SubTotal RE&D 24,321 56,542

Safety & Operations

NextGen – Environmental Performance - 704

SubTotal Safety & Operations 0 704

Total NextGen Programs 212,039 688,346

JPDO Program Management (non-add to NextGen Total)

RE&D - JPDO Support 14,321 14,494

ATO Capital - JPDO Support 3,500 5,000

SubTotal NextGen- JPDO 17,821 19,494

NextGen Programs

($ in Thousands)

* In the FY 2009 Budget FAA has consolidated most NextGen funding in the RE&D appropriation into new line items in order to facilitate tracking 

NextGen investments. Some funds from the core RE&D Human Factors program in FY 2008 (flight deck ATC) have been moved and integrated 

into the new NextGen programs for FY 2009 (e.g. Air Ground, Self Separation and Weather Technology in the Cockpit). 

The request for FY 2009 includes FAA program support for the Joint Planning and Development Office of $19.5 million ($14.5 million from the 

RE&D appropriation and $5 million from the ATO demonstration projects). In FY 2008 FAA support for JPDO totaled $17.8 million ($14.3 million 

from RE&D and $3.5 million from ATO). 
FY 2009 Budget In Brief 

17 

FY 2009 Budget

Air Traffic Organization: The FY 2009 budget 

requests $ 9.7 billion for the Air Traffic Organization (ATO) account. This account provides 

funds for the operation, maintenance, communications, and logistical support of the air traffic 

control and air navigation systems. 

Safety & Operations: The FY 2009 budget 

requests $2.1 billion for the Safety & Operations 

account. This account provides funds for the 

administrative and managerial costs for the 

FAA’s regulatory, international, medical, engineering and development programs as well as 

policy oversight and overall management functions. 

Research, Engineering, and Development: The 

FY 2009 budget requests $171 million, including 

$91 million for continued research on aviation 

safety issues. The remaining research funding is 

for reduced congestion and environmental issues, 

including $14 million for the Joint Planning and 

Development Office. 

Grants-in-Aid for Airports: The FY 2009 budget 

requests include $2.75 billion for planning and 

development of the Nation's airports, including 

grants for security, safety, capacity, and noisereduction projects. This includes $87 million for 

administrative expenses, $15 million for Airport 

Cooperative Research, and $19 million for airport technology research.

FACTS & FIGURES

Federal Aviation Administration 

Capital Programs

(Dollars in Millions)

Safety

Wide Area Augmentation System 99

Airport Surface Detection Equipment - Model X 33

Safety Database and Computer Systems 41

Runway Status Lights 27

NextGen System Development 41

Advanced Technology 8

Other (including mission support) 112

Personnel compensation, benefits, and travel 75

Reduced Congestion

Automatic Dependent Surveillance-Broadcast (ADS-B) 

implementation 300

NextGen Demonstrations and Concepts 190

Air Traffic Management 90

Data Communications for NextGen 29

Oceanic Automation 21

En Route Automation 218

Terminal Automation 36

Terminal Digital Radar 17

Improve Weather Systems 34

Improve Voice Communications 106

Infrastructure Improvements 313

Other (including mission support) 233

Personnel compensation, benefits, and travel 322

Environmental Stewardship

Replace Fuel Tanks 6

Hazardous Materials Clean-Up 18

Personnel compensation, benefits, and travel 5

Security and Emergency Response

Facility Risk Management 15

NAS Recovery Communications 10

Information Security 12

Personnel compensation, benefits, and travel 8

Organizational Excellence

System-wide Information Management (SWIM) 41

Other 213

Personnel compensation, benefits, and travel 52

Total 2,724
FY 2009 Budget In Brief 

18 

SUPPLEMENTARY CHARTS

Comparison of Budgets - FYs 2007-2009 - Old Versus New Accounts

($ in millions)

Accounts

FY 2007 

Enacted

FY 2008 

Enacted

FY 2009 

Request

2008-2009 

Change

Operations 8,374 8,740 8,998 3.0%

Facilities and Equipment 2,518 2,514 2,724 8.4%

Research, Engineering & 

Development 130 147 171 16.3%

Airport Improvement Program 

(Ob Lim) 3,515 3,515 2,750 -21.8%

FAA Total 14,537 14,915 14,643 -1.8%

Accounts

FY 2007 

Enacted

FY 2008 

Enacted

FY 2009 

Request

2008-2009 

Change

Safety & Operations 1,769 1,893 2,052 8.4%

[Salaries & Expenses] 1,634 1,774 1,920 8.2%

[Capital Programs] 135 119 132 10.9%

ATO 9,123 9,361 9,670 3.3%

[Salaries & Expenses] 6,740 6,966 7,079 1.6%

[Capital Programs] 2,383 2,395 2,591 8.2%

Research, Engineering & 

Development 130 147 171 16.3%

Airport Improvement Program 

(Ob Lim) 3,515 3,515 2,750 -21.8%

FAA Total 14,537 14,915 14,643 -1.8%
FY 2009 Budget In Brief 

19 

FY 2007 FY 2008 FY 2009

Actual Enacted REQUEST

Operations1 $8,374,217 $8,740,000

 General $2,746,316 $2,342,939

 AATF $5,627,900 $6,397,061

Facilities & Equipment1 $2,517,520 $2,513,611

Safety & Operations2 $2,052,094

 General $1,293,533

 AATF $758,561

Air Traffic Organization2 $9,669,878

 General $1,423,956

 AATF $8,245,922

Research, Engineering $130,234 $146,828 $171,028 3

& Development

 General $0 $0 $15,025

 AATF $130,234 $146,828 $156,003

Grants in Aid for Airports: $3,671,480 -$168,947 $2,750,000

 Contract Authority $4,292,480 $16,553 $2,750,000

 Rescission ($621,000) ($185,500)

TOTAL BA: $14,693,451 $11,231,492 $14,643,000

 [Mandatory] $3,671,480 -$168,947 $2,750,000

 [Discretionary] $11,021,971 $11,400,439 $11,893,000

3

 In FY 2009, the Research, Engineering, & Development account will be funded by the Airport and Airway 

Trust Fund and the General Fund.

BUDGET AUTHORITY BY APPROPRIATIONS ACCOUNT

($000)

2

 New account starting in FY 2009. Includes both traditional Operations and Facilities & Equipment funds.

1

Starting in FY 2009, this account will no longer receive new appropriations. New Funding is requested in the 

Safety & Operations and ATO accounts.
FY 2009 Budget In Brief 

20 

FY 2007 FY 2008 FY 2009

ACTUAL ENACTED REQUEST

DIRECT FUNDED BY APPROPRIATION

Operations1 39,610 40,442

Aviation Insurance Revolving Fund 5 5

Facilities & Equipment1 2,738 2,884

Safety & Operations2 9,761

Aviation Insurance Revolving Fund 5

Air Traffic Organization2

Salaries & Expenses 31,134

Capital Programs 2,737

Research, Engineering & Development 262 298 303

Grants-in-Aid for Airports 513 540 550

SUBTOTAL, DIRECT FUNDED 43,128 44,169 44,490

REIMBURSEMENTS/ALLOCATIONS

Operations1 133 124

Facilities & Equipment1 10 55

Safety & Operations2 20

Air Traffic Organization2

Salaries & Expenses 104

Capital Programs 55

Grants-in-Aid for Airports 4 6 6

Administrative Services Franchise Fund 1,293 1,428 1,428

SUBTOTAL, REIMBURSE./ALLOC. 1,440 1,613 1,613

TOTAL FTEs 44,568 45,782 46,103

2 New account starting in FY 2009. Includes both traditional Operations and Facilities & Equipment funds.

1

 Starting in FY 2009, this account will no longer receive new appropriations. New funding is requested in the 

Safety & Operations and ATO accounts.

PERSONNEL RESOURCE -- SUMMARY

TOTAL FULL-TIME EQUIVALENTS
FY 2009 Budget In Brief 

21 

Airport and Airway Trust Fund 

Section 9502 of Title 26, U.S. Code, provides for amounts equivalent to the funds received in the Treasury for the passenger ticket tax and certain other taxes paid by airport and airway users to be transferred to the Airport and Airway Trust Fund. In turn, appropriations are authorized from this fund to meet 

obligations for airport improvement grants, FAA staff offices, the Air Traffic Organization, payment to 

air carriers, and the Bureau of Transportation Statistics Office of Airline Information. 

1 Due to the expiration of AIP contract authority in December 2007, the 2009 Budget only includes $17M in new AIP contract 

authority in 2008. This results in a significant increase in the uncommitted balance of the Airport and Airway Trust Fund in FY 

2008 and FY 2009. If Congress were to enact additional contract authority for FY 2008, the estimated year-end uncommitted 

balance would be lower in FY 2008 and FY 2009. 

Status of Funds (in millions of dollars) 

Identification code: 20-8103-0-7-402 

FY 2007 

Actual 

FY 2008 

Estimate 

FY 2009 

Request 

Balance, start of year: 

0100 Balance start of year................................................................ 10,366 10,103 10,181

 Adjustments: 

0191 Kerosene tax adjustment................................................................ -164

0199 Total balance, start of year....................................................... 10,172 10,103 10,181

Cash Income during the year: 

 Current law: 

 Receipts 

1200 Interest: Airport and Airway Trust Fund................................... 472 493 470

 Offsetting governmental receipts: 

1260 Excise Taxes, Airport and Airway Trust Fund............................. 11,468 11,871 12,570

 Offsetting collections: 

1280 Grants-in-aid for Airports (Airport and Airway Trust Fund) ........ 4 1 1

1282 Facilities and equipment (Airport and Airway Trust Fund) .......... 224 135 

1281 Research, Engineering and Development (Airport and Airway 

Trust Fund) 1 16 

1299 Income under present law........................................................ 12,169 12,516 13,041

3299 Total cash income ................................................................... 12,169 12,516 13,041

Cash outgo during year: 

 Current law: 

4500 Payments to air carriers .. ....................................................... -65 -44 -24

4501 Grants-in-aid for airports (Airport and Airway Trust Fund) ......... -3,878 -2,971 -4,091

4502 Facilities and Equipment (Airport and Airway Trust Fund) .......... -2,514 -2,839 -1,628

4503 Research, engineering and development (Airport and Airway 

Trust Fund) ............................................................................ -153 -185 -84

4504 Trust Fund Share of FAA Activities (Airport and Airway Trust 

Fund)...................................................................................... -5,628 -6,399 -9,161

4599 Outgo under current law (-) ..................................................... -12,238 -12,438 -14,988

6599 Total Cash outgo (-) ............................................................... 12,238 12,438 14,988

Unexpended balance, end of year: 

8700 Uninvested balance (net), end of year.......................................... 2,172 2,231 1,807

8701 Airport and Airway Trust Fund....................................................... 7,931 7,950 6,427

8799 Total balance, end of year........................................................ 10,103 10,181 8,234

Commitments against unexpended 

balance, end of year: 

9801 Obligated balance (-) ............................................................... -7,303 -4,199 -1,702

9802 Unobligated balance (-)............................................................ -1,267 -1,034 -455

9899 Total commitments .................................................................. -8,570 -5,233 -2,157

9900 Uncommitted Balance, end of year1 .......................................... 1,533 4,948 6,077