http://online.wsj.com/article/0,,SB107524938143813537,00.htmlBy STEPHEN POWER
Staff Reporter of THE WALL STREET JOURNAL
WASHINGTON -- The Bush administration plans to propose a 16% cut in spending on air-traffic-control equipment and facilities, saving nearly half a billion dollars a year but postponing or scaling back projects aimed at making air travel more efficient.
The proposed $471 million cut in the Federal Aviation Administration's facilities and equipment budget, currently at a level of $2.9 billion, comes partly in response to government audits critical of the agency's spending habits, according to people familiar with the matter. Just like the industry it regulates, the FAA is under pressure to rein in spending, which has expanded 70% since 1996 to $14 billion this year. The increase has been fueled partly by the agency's "lack of basic contract oversight," the Department of Transportation's inspector general told Congress in October.
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It isn't clear which FAA programs would be targeted under Mr. Bush's proposed reductions. The FAA's facilities and equipment budget typically pays for projects to modernize the agency's vast network of radars, navigation and communications equipment. A proposal to cut spending on those projects during the next fiscal year that begins in October wouldn't immediately have an impact at airports that are experiencing delays, such as Chicago's O'Hare International. The problems identified at O'Hare -- whose percentage of on-time flights has fallen below 60% in recent months -- include alleged overscheduling of flights by major airlines there and, according to the National Air Traffic Controllers Association, a shortage of controllers needed to handle planes.
Still, the size of the proposed cuts is likely to face stiff resistance in Congress, which recently approved legislation that authorizes the FAA to spend $2.9 billion during the 2005 fiscal year. The proposal also comes as the administration is trying to draw attention to its efforts to prevent the kind of gridlock that disrupted air travel before the Sept. 11, 2001, attacks. Last week, the administration took the unusual step of announcing that it had secured agreements from UAL Corp.'s United Airlines and AMR Corp.'s American Airlines to reduce their flight schedules at O'Hare during the busiest hours of the day by 5%.
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