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Chairman Norman Y. Mineta
National Civil Aviation Review Commission
400 7th Street, S.W., Room 8332
Washington, DC 20590
October 17, 1997

Dear Chairman Mineta:

I would like to take this opportunity to thank you and the entire National Civil Aviation Review Commission for your efforts in the preparation of this comprehensive preliminary Finance Task Force report, "Avoiding Aviation Gridlock: A Consensus for Change." It is a very thoughtful and thorough report. I fully recognize the difficulty in reaching a consensus on recommended solutions to a range of complex and often conflicting issues. All of your efforts are to be commended, and I believe the direction you outlined for the FAA is a very positive one.

The Commission's consensus for change is necessary because the status quo on the funding and budgeting, management, and organization of the FAA is unlikely to deliver the future safety, security, and system efficiency demanded by the American public and could lead instead to aviation gridlock and threats to our international competitiveness and future economic growth. The Administration shares many of the Commission's beliefs regarding how this status quo should be changed, including the following: (1) civil aviation services and programs should be funded by cost-based user fees that are based on reliable and accurate cost data; (2) revenues from these cost-based fees should be made available to fund the programs and activities for which they are collected; (3) FAA's management should become more performance-based and FAA should control its operating costs more effectively; and (4) the Nation's aviation infrastructure investment needs should be met jointly by all parties involved.

While many of the specific details need to be worked out and discussed, the Commission report provides a valuable foundation for the implementing legislation that is called for under the FAA Reauthorization Act of 1996. In particular, we will need to discuss further the Commission's proposals for certain budget scoring waivers, the design of cost-based user fees to avoid legal and procedural issues, the authorities to borrow and invest funds, the budget treatment of revenues that are not derived from true, cost-based user fees, the degree of general fund support, and the governance of the proposed Performance Based Organization. As we move forward, it is critical that we work closely to ensure continued support for our efforts. Too often in the past, reform attempts have foundered because of the lack of such close cooperation. I believe that we, working as a team, and in concert with Congress, will be successful in fostering a consensus for change.

Once again, thank you for your efforts. The direction you outlined for the FAA is a very positive one.

Sincerely,

Rodney E. Slater