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Monday, November 17, 2008

Aviation Infrastructure Investment Benefits Economy

Expanding the Federal Aviation Administratin’s Airport Improvement Program to include not only current projects but investment and deployment of NextGen technology provides should be part of the next economic stimulus package, according to Aerospace Industries Association Vice President of Civil Aviation Dan Elwell, who testified before Congress last week. He also recommended accelerated depreciations of aircraft purchases, low interest loans for fuel-saving equipment and environmental tax credits, all of which, he said, would keep the aerospace industry employed.

"The aerospace industry is a vital economic engine," Elwell told the House Committee on Transportation and Infrastructure. "The industry provides thousands of high paying jobs and a $60 billion trade balance that bolsters the entire U.S. economy. Funding NextGen is a great two-for-one option at a time when Congress is seeking opportunities to promote economic recovery and policies to protect our planet from global warming." He urged Congress to provide a real commitment to the deployment of Next Generation Air Transportation System as well as a predictable schedule for that deployment.

The testimony came on the heels of an election report showing taxpayers favor infrastructure investment. Voters who cast ballots on transportation initiatives overwhelmingly said they support tax increases to fund transportation improvements according to a post-election report from the American Road & Transportation Builders Association (ARTBA). While it is assumed that none of the ballot initiatives dealt with aviation spending, it did show widespread report for infrastructure improvement in general, something many in aviation want in the next economic stimulus package aimed at creating jobs.

In total, the measures would generate more than $71 billion in new revenue for transportation infrastructure work, a post-election report finds. ARTBA tracked 37 state and local transportation funding-related ballot initiatives in 17 states. Of the 37 measures, 32 -- or 86 percent -- asked voters to initiate, extend or increase taxes, or approve bonds to fund transportation improvements. Twenty-five -- 78 percent of the bond and tax measures -- were approved with an average vote of 63 percent.

The measures included five statewide initiatives. Among them: voters in California approved a bond issue of up to $9.9 billion to partially finance an 800-mile high speed train between San Francisco and Southern California. Alaska authorized the state government to issue bonds for up to $315 million for transportation, and voters in Rhode Island approved $87.2 million in transportation bonds to match available federal funds for highway, road and bridge improvements.

Local measures included 12 initiatives to extend or renew an existing sales tax for transportation purposes (10 were approved), five bond authorizations (all were approved), two new taxes for transportation (one was approved) and 10 increases in existing sales or property taxes (five were approved).
The 2008 transportation ballot initiative results demonstrate continued strong public support for transportation investment for the third straight election. There were 30 state and local ballot initiatives in 2006. Of the 27 asking voters to increase revenue for transportation infrastructure, 77 percent, valued at over $40 billion, were approved. In 2004, voters supported $28 billion for transportation investment through 55 ballot initiatives. Thirty-six initiatives -- representing 78 percent of the bond and tax measures -- were approved.