-Caveat Lector- if by clarifying you mean obfuscating then I'm right there with ya buddy!
M -----Original Message----- From: Euphorian [mailto:[EMAIL PROTECTED]] Sent: Tuesday, January 22, 2002 2:42 PM To: [EMAIL PROTECTED] Subject: [CTRL] Rush vs Reality -Caveat Lector- >From http://communities.msn.com/RushversusReality/rvrjanuary.msnw >>>Whether you like Rush or not, he IS useful when it comes to clarifying some issues as they relate to us all. A<>E<>R <<< }}}>Begin Rush v Reality 2002 January 3, 2002 RUSH: Upon learning that heightened airport security in the aftermath of September 11th would come with a hefty price tag, Rush sensed yet another insult heaped on the American taxpayer. Government's incessant appetite for taxes was bad enough, but really galling was the outright deception. "Now get this: travelers already pay up to $18 per round trip in passenger facility charges which are used to help pay for airport improvements. Well what the hell is improved or increased baggage screening if not an airport improvement? This has been another point of mine all along! We've already got a tax that we're being charged to pay for this kind of stuff, but they never tap that fund, folks! They-whenever they make airport improvements they issue bonds or whatever-they never tap this fund! They just keep adding to it-it becomes part of the general fund, just like Social Security, and gets used to balance the budget. Just-the whole thing is just a-just a-typical crock!" [Listen to Rush - Documents - Audio 2002 - Jan 03 Airline Taxes] REALITY: This does indeed have all the attributes of a typical crock. The question is, whose? According to Rush, the Passenger Facility Charges (PFC) fund is "never" tapped, while the money collected from weary travelers "becomes part of the general fund." According to the FAA, as well as a major airline association, not only are PFC funds not integrated with general tax revenues, they are spent, as intended, on airport improvements. >From the FAA's fiscal year 2000 Annual Report: · Passenger Facility Charge (PFC) Program. The collection of PFC's, which must be approved by the FAA, provides an additional source of capital funding for improving airports. The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) signed into law on April 5, 2000, authorized the collection of new $4.00 and $4.50 PFC levels. Prior to AIR-21, the highest authorized PFC level was $3.00 per enplaned revenue passenger. The uniform industry-wide start date for collection of the new levels is April 1, 2001. http://www.faa.gov/aba/html_fm/ files_pdf/annrpt2000.pdf The American Association of Airport Executives (AAAE), Office of Legislative Affairs publication (May 1999) provides more background on PFCs: In 1990, Congress became concerned that the AIP would not be able to meet the future infrastructure needs of U.S. airports. Consequently, the 1990 AIP reauthorization law permitted an airport to assess a fee on passengers . This is known as the Passenger Facility Charge (PFC). PFCs are collected by the airlines and paid directly to the airport without going through the federal treasury. They are intended to supplement AIP by providing more money for runways, taxiways, terminals, gates and other airport improvements (for a project to be PFC eligible, it must also be AIP eligible or involve the construction of gates). According to the FAA, in 1996, the $1.1 billion in PFC funds were authorized as follows: 35% for airside projects such as runways, taxiways and safety related projects; 30% for landside projects, primarily terminal buildings; 17% to pay interest on bonds; 11% for noise abatement projects; and 6% for roads. http://www.airportnet.org/depts/federal/PFCs/ pfcbackground.htm In his statement, Rush also used the term "airport improvements." While it's fairly clear he was focusing on the use of PFCs, there is an additional major airport funding source called the Airport Improvement Program (AIP ). Just in case Rush meant to include AIP funds, it should be noted that AIP is also (1) funded from user taxes (primarily fuel taxes paid by the airlines), and, yes, (2) the AIP fund is also "tapped." From the FAA's 2000 Annual Report: · Grants-in-Aid to Airports: FAA distributes grants through the Airport Improvement Program (AIP) to maintain and enhance airport safety, preserve existing airport infrastructure, expand capacity and efficiency throughou t the airport system, and reduce the impact of airport noise on the surrounding community. The AIP, which receives funds from the Airport and Airway Trust Fund maintained through the payment of user taxes, makes it possible to fund one-fourth to one-third of all capital development at the Nation's public use airports. In FY 2000, FAA's office of the Associate Administrator for Airports awarded approximately $1.9 billion in new AIP grants-in-aid obligations to improve and expand the Nation's airports. Rush Limbaugh: crock radio. 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