Operations (Airport and Airway Trust Fund)

For necessary expenses of the Federal Aviation Administration, not otherwise provided for, including administrative expenses for research and development, establishment of air navigation facilities; purchase of three passenger motor vehicles for replacement only; and purchase and repair of skis and snowshoes; $8,963,000, to be derived from the Airport and Airway Trust Fund: Provided, That there may be credited to this appropriation funds received from states, counties, municipalties, other public authorities, and private sources, for expenses incurred in the maintenance and operation of air navigation facilities: Provided further. That the unexpended balance of the appropriation for "Operations" for the current fiscal year, but excluding the balance of the amount appropriated for safety regulation activities, shall be transferred to this appropriation.

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This proposed supplemental of $8,963,000 is for maintenance and logistics support of the air traffic control and navigation system. includes funds to implement new staffing classification guides which have been established for airways facilities electronic technicians and funds to finance increases in TELPAK tariffs recently approved by the Federal Communications Commission and increases in the cost of using the Alaskan communications system, the operation of which has now been turned over by the Department of Defense to a commercial carrier.

Amounts are included in the estimate to cover the costs of fuel and aircraft taxes which are required to be paid under the provisions of the Airport and Airway Revenue Act of 1970.

GENERAL STATEMENT

The proposed fiscal year 1971 supplemental estimate under Operations reflects an increase of $9,000,000 over amounts included in the 1971 budget estimate submitted to the Congress.

Of the increase, $5,414,000 represents the changes in Civil Service Commission classification standards for maintenance technicians assigned to critical tasks related to air navigation facilities. An additional $3,586,000 is required as a result of action by the Federal Communications Commission resulting in a tariff increase for leased communications facilities (TELPAK); Department of Defense policy to divest itself of operating Alaskan Communications Sys cems, of which the FAA shared in system usage and must now directly finance along with an associated rate increase; and the agency costs associated with Title II, "Airport and Airway Revenue Act of 1970" of Public Law 91-258.

The specific program increases included in this fiscal year 1971 supplemental budget estimate relate to the gross cost of the programs. Separate identification of the sources of funding, i.e., between Federal Funds (General) and Trust Fund, have been annotated on the individual supporting activity schedules.

Appropriation:

Effective February 1, 1970, the Federal Communications Commission approved a TELPAK tariff increase. This action results in an additional cost estimated at $4,669,000 during fiscal year 1971. The agency has no option but to finance this additional cost. The projection is based on data developed by the Defense Commercial Communications Office (DECCO) for all operational communications services leased through June 30, 1970, and for those new services proposed in the 1971 Congressional request. As a result of delays experienced in implementing some new services planned during fiscal year 1970, it is proposed that $2,973,000 of the funds included in the 1971 Congressional request for continuing operations be applied to meet the cost of the TELPAK rate increase, thus leaving a net funding deficit of $1,696,000.

In connection with the administrative Federal Telecommunications System for long distance telephone services, we have been notified by the General Services Administration that our pro rata share of additional costs for the TELPAK rate increase will require $321,000 in fiscal year 1971. This increase was not included in the development of the 1971 Congressional estimate and there is no alternative but to finance the additional cost.

In line with Department of Defense policy to divest itself of operating responsibility for the Alaska Communications System, award has been made recently to RCA to operate as a commercial carrier for Alaskan long haul Communications networks. As a result of RCA reroutes of Dew-Line circuits and a rate increase related to limited channels for expanded North Slope capabilities, funding requirements for fiscal year 1971 will increase by an amount of $200,000.