Groups object to user-fee items in Clinton budget

WASHINGTON -- Several travel trade groups have lined up against the Clinton administration's $1.84 trillion, 2001 federal budget, which revives from last year's budget several controversial aviation and waterways user-fee proposals that were ultimately torpedoed in the House and Senate.

The administration has proposed cost-based user fees for virtually every federal agency as a method of improving the "efficiency and equity of certain government activities."

The administration contends that taxpayers generally "finance activities whose benefits accrue to a relatively limited number of people," whereas user fees do the opposite.

However, some lawmakers and travel industry representatives opposed many of the fees when they were proposed last year, arguing that they were unnecessary since the government already had surpluses that sit unused in certain trust fund accounts.

This year, the administration once again has proposed collecting an estimated $1 billion to improve the aviation system by reducing the existing aviation excise taxes over time and replacing them with cost-based user fees for air travel service.

And once again, the plan has received a cool reception from Rep. Bud Shuster (R-Pa.), chairman of the House Transportation Committee. Shuster said that although he supports increased spending on the aviation system, he's against a new fee.

"Every year we collect almost $10 billion from air travelers and invest only $8 billion, leaving the rest in government accounts to offset other spending," Shuster said.

Similarly, cruise lines and other maritime groups are expected to renew their opposition to a proposed harbor services fee that the administration said would "finance construction, operation and maintenance of harbor activities."

"Not that [the fee] would be any great amount of money assessed to the cruise industry," said Michael Crye, a lobbyist for the International Council of Cruise Lines, which represents major cruise lines.

But the maritime industry maintains that a user fee would "generate a lot more money than it would spend on harbor improvement," Crye said.

The administration also has resurrected a proposal first floated last year that would tax as unrelated business income of $10,000 or more that is earned through investments by trade associations.

Associations, which have been joined by hotel groups in opposing the proposal, have called it a back-door tax on their income.

"I trust and hope it will be killed," said John Gay, Washington representative for the American Hotel & Motel Association. "We have to act to make sure the administration knows we've seen [the proposal] and we don't like it."

Meanwhile, Amtrak would receive $521 million, $50 million less than last year, under the Clinton administration's 2001 federal budget. However, the budget also creates a $468 million match-grant program to help communities work with Amtrak to develop high-speed rail corridors.

Amtrak president George Warrington "applauded" the proposal for supporting the continued development of a "strong national intercity rail network." Amtrak also received praise from DOT Secretary Rodney Slater, who predicted the rail line would reach its congressionally mandated goal of becoming self-sufficient by 2002.

"We are on track for that," Slater said. "It is an organization that is delivering quality service."

The budget also proposes: