Integration of Airspace ad Capital Programs

Federal Aviation Administration AIP/PFC Past, Present, & Future Presented to: FAA Airports (Southwest Region) Fall Conference By: Cameron Bryan, Manager, Airports Planning & Programming Branch (Southwest Region) Date: October 25, 2007 Partnering to maintain a safe & efficient NAS Objectives Initiatives/Goals 1. To provide FY 2007 AIP/PFC recap (Past). 2. To discuss latest developments with FAA’s finance reform bill proposal (Present). 3. To introduce new AIP performance metric (Future). Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 2 2 Partnering to maintain a safe & efficient NAS Success in FY 2007! Thank You!! • FAA Flight Plan (FY 2007 – 2011) – Increased Safety, Greater Capacity, International Leadership, Organizational Excellence • AIP/PFC Efficiency Metrics – Partnership (working together) – Commitment (common goal) – Buy-in (process) Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 3 3 Partnering to maintain a safe & efficient NAS AIP Efficiency Metrics 1. 2. 3. 4. Award 90% of grants based on construction bids – – – Goal met: 100% Goal met: 78/81 (96%) Goal met: 67/68 (99%) Close 95% of grants 4 years and older Take action on 99% of grants with 18-month inactivity Approve 90% of grants for congressional notification within 60 days of funding allotment (discretionary) – Goal met: 90% w/in 30 days, 99% w/in 60 days Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 4 4 Partnering to maintain a safe & efficient NAS AIP (FY 2007) FY 2007 Grants Service Level Primary Non Primary Other 289 337 45 Open (start of FY 2007) Closed New Open (start of FY 2008) 671 251 220 Drawdown rate for FY 2007 86 76 grants was 9% 157 8 131 13 640 279 311 50 Original Grant Amount Grant Amount Remaining $1.71b $681m $485m --- $406m $372m (91%) $1.631b $687m Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 5 5 Partnering to maintain a safe & efficient NAS FY 2007 Grant Tracking • Expediting grant process is the key to increasing current year drawdown rate!! • Grant allotment sent on March 27, 2007 • It took an average of 3 months to process a grant • Time from grant acceptance to construction start unknown (60 days?) Airports (Southwest Region) Fall Conference October 2007 FY 2007 Allotment to Initiate in ASW Initiate in ASW to Congressional Notification Congressional Is (60) days Notification to Grant Offer realistic? Grant Offer to Grant Acceptance Time to Process Grant Days Weeks Months 20 22 28 20 90 3 3 4 3 12/13 <1 <1 1 <1 3 Federal Aviation Administration 6 6 Partnering to maintain a safe & efficient NAS How do we do it? • Continue to work towards accomplishing common goal. “Maintain a safe and efficient National Airport System” 1. Identify where there are system deficiencies and target AIP funds toward those deficiencies • Apply Capital Planning Principles 2. Award grant in timely manner to realize full benefit of improvement when needed • Early bid-based grants • Direct correlation between expenditures and project implementation Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 7 7 What types of projects did we target in FY 2007? Pavement accounts for 59%* of all grant awards Equipment 3% Land for Development 1% Terminal Buildings 8% Noise 9% TX State Block Grant 14% Planning 2% Partnering to maintain a safe & efficient NAS Safety 4% *TX SBG Runway 29% Apron 9% Taxiway 21% Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 8 8 Partnering to maintain a safe & efficient NAS FY 2007 AIP Grant Distribution Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 9 9 Partnering to maintain a safe & efficient NAS PFC (FY 2007) FY 2007 Applications Hub Type Large Medium Small Non/Other Open (start of FY 2007) Closed 5 1 0 3 1/0 ------- New Open (start of FY 2008) 87 6 12 29 37/3 $7.753b $1.897b $1.612b 8Closeout goal 90 for FY 2008 is 8 applications 5 0 1 3 4/0 (17 apps completed collections) 13 29 40/3 $7.814b $2.009b $1.717b Impose Authority $60.3m ----Federal Aviation Administration Collections Disbursements Airports (Southwest Region) Fall Conference October 2007 10 10 Partnering to maintain a safe & efficient NAS What project types were approved in FY 2007? Terminal 6% Building construction accounts for 57% of all PFC approvals Apron Building Equipment 0% Financing 6% 0% Noise 1% Ground Transportation O ther 0% 3% Planning 17% Terminal 57% Runway 7% Taxiway 3% Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 11 11 Partnering to maintain a safe & efficient NAS Yes! Summary In FY 2007 met partnership, we all program goals. • Did we have a successful year from a program perspective? – Invested majority of AIP in pavement and focused that investment where the greatest need exists – Invested majority of PFC in terminals • Where can we improve? – Awarding grants earlier in the year (requires buy-in) • Results in better bids and timely project accomplishment Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 12 12 Partnering to maintain a safe & efficient NAS Reauthorization Legislative Update No guarantees…many scenarios…lots of uncertainty!!! Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 13 13 Partnering to maintain a safe & efficient NAS Reauthorization Legislative Update • Current authorization & aviation taxes expired on September 30, 2007 • Three Proposals – Administration – Senate: S. 1300 – House: H.R. 2881 • Continuing Resolution through November 16, 2007 Airports (Southwest Region) Fall Conference October 2007 Courtesy: Airport Consultants Council Federal Aviation Administration 14 14 Partnering to maintain a safe & efficient NAS Reauthorization Legislative Update • Potential Impacts of a Delay in Reauthorization – Airport and Airway Trust Fund uncommitted balance will run out in 2 to 3 months – Significant delays and/or reductions in grants – Letters of Intent could not be fully funded – A series of short-term extensions would force the FAA to administer AIP as a series of grant programs – Passenger and Non-Primary airport entitlement amounts would be dramatically affected – Lost PFC revenue due to delay in PFC increase Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 15 15 Partnering to maintain a safe & efficient NAS Does this mean we should stop the process? • No. We must place ourselves in a position to award/accept grants in “short order” – Plan in accordance with FY 2007 allotments – Follow capital planning principles – Prepare associates for worst case scenario • Potential effects of short timeframe to award grants – Design only grants – Project phasing Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 16 16 Partnering to maintain a safe & efficient NAS Future - Measuring AIP Performance What are we doing today to insure timely investments? Process grants expeditiously upon receiving appropriation Represents improvement of internal efficiencies Award grants based on bids Represents timely construction Prevent grants from remaining idle for 18-months or longer Represents spending the federal dollar efficiently Close grants 4-years and older Represents the realization of airport improvements when they are needed Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 17 17 Partnering to maintain a safe & efficient NAS Are the existing metrics serving a worthwhile purpose? Yes! They serve as good “policies” for administering an efficient program – They are not an all-inclusive list for determining the level of efficiency through which we should measure performance – Output based rather than outcome based – Have contributed toward a 17% 2-year reduction in expenditures Has helped maintain focus on fiscal accountability Has helped maintain focus on timely conversion of Trust Fund resources into airport improvements Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 18 18 Partnering to maintain a safe & efficient NAS What is the new metric? Moving from output-based to outcome-based metrics – Beginning in FY 2009, we will implement a single metric to serve as a replacement for the existing four. – Measures the rate at which grant funds are expended (i.e., disbursed to the sponsor) • Establishes an annual end-of-year target for AIP funds remaining in the US Treasury for all grants prior to the current fiscal year Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 19 19 Partnering to maintain a safe & efficient NAS Target Expenditure of AIP Funds 2006 2007 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Year of Appropriation 18% 82% 1st Year after Appropriation 60% 40% 2nd Year after Appropriation 81% 19% 3rd Year after Appropriation 91% 9% 4th Year after Appropriation 96% 4% 2006 2005 2004 2005 2004 2003 2002 2003 To be expended Maximum to remain Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 20 20 $5.6b Partnering to maintain a safe & efficient NAS Target: Start Year w/ $5.2b Target: $2.77b Actual: in invested $3.21b invested in system system improvements improvements Goal: End Year w/ $2.43b $2.39b Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 21 21 Partnering to maintain a safe & efficient NAS Benefits of the New Metric Significantly better indicator of actual conversion of Trust Fund resources into useful aviation infrastructure. (Money sitting in the Trust Fund isn’t helping the system) Helps articulate why the underlying policies are in place (e.g., Why grants should be closed in a timely manner) Allows us to ask the right questions (e.g., Why isn’t a project being implemented as swiftly as expected?) Allows us to identify where resources are being used most effectively, and to make better decisions about where to focus future resources Helps communicate AIP performance to decision-makers to improve program competitiveness during challenging budgeting periods Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 22 22 Partnering to maintain a safe & efficient NAS Thank You! Airports (Southwest Region) Fall Conference October 2007 Federal Aviation Administration 23 23