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U.S. NEWS Thursday 30 March 2017
Trump’s budget priorities set small businesses strategizing

HIGHER DEFENSE SPENDING, pects that his company’s Administration regulations
HIGHER SALES first-quarter revenue will slowed the progress of the
Inquiries about Frontline rise 10 percent to 15 per- company’s startup three
Selling’s sales manage- cent from a year ago, and years ago.
ment software shot up after there’s a growing backlog “For the better part of a
the call for higher defense of orders to fill. He’s opti- year, we were significantly
spending was released, co- mistic enough about gov- impeded by rules,” Mark-
owner Mike Scher says. His ernment spending that he man says.
customers, technology pro- plans to hire five employ- “The new administration
viders to government con- ees in the next quarter, in- recognizes the need for
tractors and subcontrac- creasing his staff to 55. greater regulatory predict-
tors, are hoping for a jump ability.”
in sales under the budget HOPES FOR FEWER REGULA- The budget proposal did
plan and from Trump’s call TIONS not mention regulations,
during a speech to Con- Charles Markman looks at but Markman noted that
gress for $1 trillion in govern- the budget proposal’s call Trump signed an executive
In this Tuesday, March 28, 2017, photo, Air Choice One CEO ment and private spending for a 13 percent reduction order in January requiring
Shane Storz poses for a photo with one of his company’s aircraft on infrastructure. in Department of Transpor- federal agencies to iden-
in St. Louis. Air Choice One is an airline based in St. Louis that
flies small planes to destinations in the Midwest and participates “They believe that’s going tation funding and hopes tify two regulations they
in the Department of Transportation’s Essential Air Service sub- to come to fruition,” says that would mean no new will eliminate for every one
sidy program. Scher, whose company regulations governing the they request.
(AP Photo/Jeff Roberson) is based in Alpharetta, drone industry. Markman expects the
Georgia, an Atlanta sub- The co-owner of Galaxy budget that ultimately
JOYCE M. ROSENBERG affect them: urb. “They’re ramping up Media, which uses drones goes to Congress will pre-
AP Business Writer their business.” for aerial photography in vent the FAA from adding
NEW YORK (AP) — The AN END TO SUBSIDIES? That has already helped central and southern Flor- staff who would write new
priorities laid out in Presi- Air Choice One would lose Frontline Selling. Scher ex- ida, says Federal Aviation regulations.q
dent Donald Trump’s bud- revenue if the administra-
get message have some tion succeeds in ending
small business owners strat- funding for the Essential
egizing how they might Air Service program, says
benefit from a big boost Shane Storz, the com-
in defense spending, and pany’s CEO. The St. Louis-
others thinking about how based carrier gets federal
to make up for revenue subsidies under the pro-
they could lose to cuts in gram aimed at making
grant programs and sub- it easier for people who
sidies. While Trump’s plan, live in rural areas to catch
released March 16, is far flights nearer their homes.
from the final word on the The company has 56 sub-
subject, he has called for sidized flights a day, send-
a $54 billion increase in the ing eight-seater turboprops
Pentagon’s budget. He has carrying about 2,000 pas-
proposed cuts elsewhere, sengers a month to seven
such as the Environmental small cities in Iowa, Illinois,
Protection Agency and the Michigan, Tennessee and
Commerce Department, Arkansas. The federal pro-
and no funding at all for gram subsidizes 60 percent
19 agencies including the to 70 percent of the cost
National Endowment for of Air Choice One’s flights,
the Arts. Departments and Storz says. If the program’s
agencies across the gov- funding is reduced or elimi-
ernment have programs nated, the airline would
that benefit small compa- have to cut flights, forcing
nies or offer them contract- many passengers to drive
ing opportunities. two or more hours to an air-
“It’s the opening bid in the port served by a major air-
negotiations,” says David line. “We get a lot of elderly
Primo, a professor of politi- travelers who don’t want to
cal science and business at drive,” Storz says.
the University of Rochester. Air Choice One’s subsi-
The formal request that will dized flights run at 80 per-
go to Congress is expected cent of capacity, a num-
in May, and even that ver- ber consistent with major
sion will be subject to nego- carriers. Storz is trying to
tiations among lawmakers. increase ridership so the
Still, the proposal does give subsidized routes can be
small business owners a sustained even if funding
sense of Trump’s goals, not is cut. The Trump adminis-
only for the fiscal year that tration says ending fund-
begins Oct. 1, but for the ing entirely would save the
rest of his term. government $175 million.
A look at how four busi- “If the program ended, it
ness owners believe would hurt tremendously,”
Trump’s objectives could Storz says.