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    More to FAA shutdown than air service subsidies

    WASHINGTON (AP) — On the surface, the partial shutdown of the Federal Aviation Administration is about whether to cut $16 million in air service subsidies, a pretty small amount in this town. Underneath are layers upon layers of political gamesmanship that, at its heart, is about whether Democrats or Republicans get to call the shots in Congress.

    The immediate price is high. Already, 4,000 FAA employees have been furloughed, more than 200 construction projects have been halted and an estimated 70,000 other private-sector workers affected. Air traffic controllers and safety inspectors remain on the job because the agency still has money from another pool of funds to pay them.

    The government has been losing about $30 million a day in uncollected airline ticket taxes since the shutdown began on July 23, when FAA's operating authority expired. If it's not resolved until after Congress returns from its August recess in early September, lost revenue will tally about $1.2 billion.

    The political stakes are even higher.

    Democrats complain that Republicans, by manufacturing crisis after crisis, are trying to force them to accept painful policies that haven't been negotiated through normal legislative processes.

    Earlier this year, it was the prospect of a government shutdown over tax breaks for higher-income Americans. More recently it was a potential default on the government's financial obligations. Now it's a continued shutdown of the FAA unless Democrats accept the air service subsidy cuts.

    "This is becoming a very disturbing pattern: A small, uncompromising group, feeling the righteousness of their cause, hurt tens of thousands of innocent people and takes them hostage until they get their complete way," Sen. Chuck Schumer, D-N.Y., said. "These debates should not be determined by which side is willing to take the most casualties.

    In this case, what Republicans are really demanding isn't token cuts in air service subsidies but reversal of a federal labor rule in order to make it more difficult for airline workers to unionize, Democrats said.

    Republicans deny that, saying the labor issue is a separate matter. Rather, they said they simply have to use the tools available to them because Democrats are unreasonable about cutting spending.

    "If we're having this fight over $16 million in subsidies, how are they going to get trillions (of dollars in cuts) from government? It's not a good start," Rep. John Mica, R-Fla., chairman of the House Transportation and Infrastructure Committee, said in an interview with The Associated Press. "This may be emblematic of what we face getting any cuts."

    But Democrats said if they accept the air service cuts now, Republicans will demand a higher price — possibly including labor concessions — when the next short-term FAA extension bill must be passed, which is expected to be in mid-September.

    Mica made the first move leading up to the shutdown in July when he attached a provision eliminating subsidies for air service to 13 rural communities to a bill to extend FAA's operating authority. The FAA has been operating under a series of 20 short-term extension bills since 2007, when the agency's last long-term funding bill expired.

    The Senate approved a long-term bill in February and the House its own bill in April. More than 200 differences between the two bills have been worked out, but a dozen thorny issues remain.

    One of those issues is the air service program, which was created after airlines were deregulated in 1978. It pays airlines to fly less profitable routes to remote communities. The entire program costs about $200 million a year, about the same as what the government is losing each week the FAA shutdown continues. Critics say some of the communities don't deserve aid because they are within a reasonable drive of a hub airport or because their subsidies are exorbitantly high — more than $1,000 per passenger.

    Since both long-term bills would reduce funding for the program, although in very different ways, it has been clear for months that some cuts will be made, lawmakers said.

    The more politically difficult issue is a GOP proposal to overturn a National Mediation Board rule approved last year that allows airline and railroad employees to form a union by a simple majority of those voting. Under the old rule, workers who didn't vote were treated as "no" votes.

    Democrats and union officials say the change puts airline and railroad elections under the same democratic rules required for unionizing all other companies. But Republicans say the new rule reverses 75 years of precedent to favor labor unions.

    The GOP labor provision has the backing of the airline industry. The biggest beneficiary would be Delta Air Lines, the largest carrier whose workers aren't primarily union members.

    Last month, in comments to the House Rules Committee and separately to reporters, Mica said the labor provision was the only issue standing in the way of the House and Senate reaching an agreement on a long-term FAA bill. He said Senate Majority Leader Harry Reid, D-Nev., has refused to negotiate with Republicans on the issue.

    "There is only one issue — have I not been clear? It's up to Mr. Reid," Mica told the committee. He added that including the subsidy cuts to the extension bill "forces the Senate's hand to act."

    One of the communities that would lose subsidized service is Morgantown, W.Va., in the home state of Democratic Sen. Jay Rockefeller, who, as transportation committee chairman, is Mica's Senate counterpart. Reid and Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee, which handles the tax aspects of the bills, also have communities on the list.

    Besides Morgantown, the cities on the list are Athens, Ga.; Glendive, Mont.; Alamogordo, N.M.; Ely, Nev.; Jamestown, N.Y.; Bradford, Pa.; Hagerstown, Md.; Jonesboro, Ark.; Johnstown, Pa.; Franklin/Oil City, Pa.; Lancaster, Pa.; and Jackson, Tenn.

    "Yes, I did work with our leadership to find some pressure points to get leverage on the (long-term) bill," Mica told the AP. "I didn't ask for a lot."

    Sen. Kay Bailey Hutchison of Texas, the senior Senate GOP negotiator on the FAA bill, called Mica's inclusion of the subsidy cuts in the extension bill a "procedural hand grenade."

    It has been House Republicans who have refused to negotiate with the Senate unless Democrats agreed to concessions on the labor issue, Hutchison said.

    The House bill was approved on July 20 by a mostly party-line vote. Senate Democrats have introduced their own FAA extension bill with no strings attached, but Republicans have repeatedly blocked votes on the measure. Democrats have responded in kind, blocking votes on the House-passed bill containing the subsidy cuts.

    A few days ago, House Speaker John Boehner, R-Ohio, indicated to Democrats that he'd be willing to accept their extension bill without the subsidy cuts in exchange for concessions on the labor issue, but Democrats refused the offer, Rockefeller said.

    Boehner didn't respond to a request for comment.

     

    820 comments

    • Jerry  •  9 mths ago
      Shut them down screw reid and the rest of the scumballs
    • speedo  •  9 mths ago
      Washington is corrupt, broken and incompetent....time to start over.
      • Rahul 9 mths ago
        Can we start over? With who? Sarah Palin...
      • speedo 9 mths ago
        She is one of them.
    • Johnny L  •  9 mths ago
      I say cut all subsidies given to ALL companies, let everyone pay their fair share, especially those research subsidies given to oil companies, what have they done for the people lately. NO MORE SUBSIDIES, NO MORE TAX BREAKS, CLOSE THE LOOPHOLES.
      • MEL 9 mths ago
        GE got subsidies, green energy gets subsidies, Railroads get subsidies, agriculture gets subsidies, oil companies get subsidies, drug companies get subsidies..................................
      • TheThinker 9 mths ago
        Lets look at facts for a minute. Exon made around $10 billion in profits last quarter, paid around $28 billion in taxes. GE on the other hand paid $0 in taxes and collected $100's of billion in green subsidies and will now open a plant in China. Why does Johnny not mention this?
      • spike8008 9 mths ago
        Thinker- better go think some more. To get that figure, Exxon counts sales tax, which is actually paid by the consumer, payroll taxes, which are taken out of the employee's check, and property taxes which come out before profit. This is not income tax. They didn't pay any tax on the $10 billion in profit.
    • Jesse  •  9 mths ago
      Sounds like a bunch of kids on a play ground... You block me, I'm going to block you... Speaking of playgrounds... Recess really? They are losing $30 million a day on this and they are going to take a recess?!?!?! WHAT!!! Term limits for Congress and the Senate...
      • Ndn_nfl 9 mths ago
        There ARE term limits,,,its called elections!
      • sheik yerbouti 9 mths ago
        30 million per day over 16 million total in subsidies. Way to go Tea Party!
      • mrl1978 9 mths ago
        "I hope Obama fails!"--Bet Rush is happy.
    • Steven  •  9 mths ago
      Fire the poloticians... wast a billion to save a nickle... come on! Only in Washington do these dorks think they are doing something.
      • tufstuf 9 mths ago
        Yes, that's all we need in an already bad economy, losing $300,000 million/week, and thousands of decent paying jobs. Go figure! The repulicans are nothing but global anarchists.
    • Joey S  •  9 mths ago
      I am so mad I could SPIT! Lose $30 million a day so they can save $16 million a year. They do not care about the country or us the people that voted for them. Not to mention putting 4000+ people out of work. Fire them all NOW!
      • Terry Thomas 9 mths ago
        Unions
      • Maaack 9 mths ago
        Sometimes sticking to your principles is tough to do.
      • A Yahoo! User 9 mths ago
        Hardly 30 million from PRIVATE airports.I dont know about you, BUT I DONT like paying for a PRIVATE airport for rockefeller.He stated he WOULD IGNORE hr2553 then went on VACATION
    • T.A.M.I.A.  •  9 mths ago
      Yeah...never mind jobs, huge tax revenues, progress...we're CONGRESS. We bicker over power, not the public's interests.
      Freakin' SCUMBAGS. }8^[
    • larry  •  9 mths ago
      vote them out!!!!!!
    • Arthur  •  9 mths ago
      Why doesn't someone sue Congress for failure to do their jobs? They took a month off when they could have handled this? This should be criminal!
    • mmm  •  9 mths ago
      Here come the cuts.... Alamogordo, NM is a rural town, population 36,000, in a red county. Closest big airport is El Paso, 90 miles away. Next closest is Albuquerque, NM, 210 miles away, a 7 hour round trip. I think the loss of the subsidy will mainly affect air shuttle service to Albuquerque, which is also where the closest veteran's hospital is.
    • Save the USA 2012  •  9 mths ago
      Let's see here...$30 Mil a day cost, no jobs, no hiring, consumers not buying, 3 wars, stock market dead in the water and our Congress are resting up on a holiday until....? Again no sense of urgency, business as usual both houses and all parties. Sickening.
    • Skeptical  •  9 mths ago
      If mgt at my company went on vacation, allowing $30 million a day in lost revenues, they wouldn't have jobs to come back to. Plus allowing 4,000 people to be unemployed in a bad economy. We need to fire all these people!
    • larry  •  9 mths ago
      that shows the incompence of our congress we the people will show them the next election
    • Charles  •  9 mths ago
      HEY GUYS! GET BACK TO WORK! TAKE YOUR "VACATION" AFTER YOUR INBOX IS EMPTY. I think Obama is a really lame president, but on this one he's right: the congress packed its bags and took a hike and left thousands of people stranded. They need to get back to Washington and do their freaking job.

      Then in 2012 we need to fire every stinking one of them.
    • wayner  •  9 mths ago
      It's clear that a paid one month vacation for Congress and the Senate is far more important than the American people. I had hoped they would be creating jobs rather than dismantling them.
    • Chuckie  •  9 mths ago
      America's government has long passed its capable functionality. Our entire government needs to be overhauled beginning with the ENTIRE administration. Our system is a relic. PERIOD.
    • eliachen  •  9 mths ago
      Foro 16 Million they would give up a billion in one month. This kind of politics need to stop.We have elected the most poisonous snakes as our representatives. May be the Should shut down service to the airports where these crazies travel from.
    • reddotmiami  •  9 mths ago
      GOP sure don't like unions.
    • Daniel  •  9 mths ago
      Those subsidies are primarily to keep airports open and subsidise flights into rural areas, i.e. red states. So people don't have to drive halfway across Montana to get on a plane. We also subsidise phone, mobile, internet, and emergency services out there. Thats' why most red states that aren't Texas get more in federal tax money than they pay.
    • Daniel  •  9 mths ago
      40 aviation safety inspectors working for no pay to keep us safe. God bless you.
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