National Association of Railroad Passengers: www.narprail.org

Hotline #403

The House Appropriations Committee’s Subcommittee with jurisdiction on Amtrak “marked up” (wrote) the fiscal 2006 transportation funding bill on Wednesday.  While increases in highway (5.4%) and aviation (6.4%) spending were approved, Amtrak was subjected to a 55% cut: $550 million.

The subcommittee claims that the mark was made so that “80% of Amtrak passengers would still receive service,” because it states that the $550 million would permit continued operation of most Amtrak corridor operations (including the Northeast Corridor, Midwest, California, and Pacific Northwest).  The reality is that even if Amtrak could somehow waive a magic wand and eliminate all the “unprofitable longer distance trains” overnight, at no cost (which it cannot), Amtrak’s debt service and mandatory railroad retirement payments would require most of the $550 million before even one train was operated.

In a news release and special addendum focused on “Smarter Funding for Amtrak,” the committee explained their rationale for the Amtrak cuts, saying, in part, “The proliferation of low cost airfares makes national railroad service less necessary. For example, a rider taking a train from Orlando to Los Angeles receives a $466 taxpayer subsidy on top of a $165 ticket for a trip that takes more than 71 hours. For $211 – less than half of the federal subsidy alone – a traveler could fly from Orlando to Los Angeles in just six hours.” Language was also included in the mark that prohibits federal funding of any train that loses more than $30 per passenger which—despite the fact that loss per passenger is not the transportation industry standard for measuring performance—would mean an end to all of Amtrak’s long distance trains.

In NARP’s ”Amtrak Fact Check” (updated on Wednesday to reflect inaccuracies in the subcommittee’s release and other recent events), Executive Director Ross B. Capon wrote, “The committee completely ignores the fact that many passengers on Amtrak’s national network trains are riding between intermediate points. Many of these communities lack attractive air service: more than 100 Amtrak-served communities have no commercial air service and many more have no access to the discount air services that the committee’s release trumpets.  In addition, Americans are presented with transportation options and make conscious decisions to choose rail. Some citizens do not want to fly or are medically unable to fly.”

(In addition to updating Fact Check, NARP also issued a news release on Wednesday.  Both Capon and Assistant Director David Johnson conducted several media interviews in the wake of the markup.)

Bi-partisan outrage to the mark was quick to come forward.  “There will be 31 states who lose all passenger rail service completely,” Rep. John Olver (D-MA) told the Associated Press.  Rep. Dennis Rehberg (R-MT) told the Great Falls Tribune, “I’m going to fight these Amtrak cuts in the full committee.  If I have to, I’ll take our fight for the Empire Builder to the floor of the House.”

Finally, the committee did acknowledge that the increases in highway and aviation funding were due primarily to, “unique preferential treatment…not afforded to any other discretionary program including Veterans Medical Care, Homeland Security funding or National Defense programs.” These so-called “firewalls” guarantee yearly increases in these funds and are yet another example of legislative bias against rail.

The next step is approval of the bill by the full Appropriations committee.  This will occur next Tuesday or Wednesday (June 21 or 22).  The goal is to go to the floor of the House before the Fourth of July recess (last day: June 30).

It is important to note that the subcommittee’s markup is the first step in a very long appropriations process.  However, the number is very concerning and, if eventually passed, would lead to Amtrak’s bankruptcy.  Rail advocates must contact their House of Representatives member this afternoon or Monday morning and express outrage at the subcommittee’s Amtrak figure.  More detailed information is in our Action Alert, updated this afternoon.

Congressional leaders and rail advocates traveled from Washington to Baltimore on Amtrak’s Regional service on Monday to draw attention to Amtrak’s plight.  “If we don’t properly fund Amtrak, then Amtrak goes down the tubes,” said Rep. Elijah Cummings, a Maryland Democrat and member of the Transportation Committee. “Amtrak is safe, it is clean, (and) it is efficient. And yet, the president has basically written Amtrak off.” In introducing NARP Executive Director Ross B. Capon, Congresswoman Corrine Brown (D-FL) said, “Our next speaker is for you in the media. He testified before our subcommittee last week. He has lots of facts. You need to have them.”

The Blue Water and Pere Marquette will end on October 1 if funding legislation approved by both the Michigan House and Senate is signed by Governor Jennifer Granholm.  The Michigan Senate approved its fiscal 2006 funding bill which includes a $1 million cut to Amtrak funds.  State Senator Jud Gilbert (R-Algonac) summed up the current debate in Michigan which is also very applicable to the national battle and the danger of state-by-state subsidy of trains, “Part of the problem we have is this is a regional issue,” he said.  “There are only three or four senators for whom it makes a difference, and there’s a limited amount of money in this (budget). I had hoped full funding would be put in place. I don’t think this is the final word.” Governor Granholm has indicated that she does not support the funding cut.  However, her only ability to change it is to veto the entire bill and send it back to the Michigan legislature.  Michigan residents need to contact her and encourage her to do that.

Amtrak’s Hiawatha service is also in jeopardy due to state funding fights.  The current funding split is 75% Wisconsin / 25% Illinois.  However, Illinois has frozen its funding for 2005, which will either cause Wisconsin to pay a higher percentage, or institute service cuts.  This comes at a time of—like the Blue Water and Pere Marquette—all-time high ridership.  This increase is spurred primarily by the opening of the Milwaukee Airport rail station and also the higher cost of gas and recently-raised tolls on Interstate 94.

Unlike the United States, China is properly funding and developing its rail network. The Chinese government’s Xinhua News Agency reports (italic emphasis added by NARP), “China started building a 200 kilometer-per-hour passenger railway Saturday on the border of northern Hebei and Shanxi provinces. The line is the first passenger line of nine to start construction in the country this year. With an investment of 12.64 billion yuan ($1.5 B US funds), the line will be completed in 2008.  China will build 120,000 kilometers of passenger lines by 2020.”

Colorado has “a vision” for commuter rail and should take advantage of it, said United States Senator Ken Salazar (D-CO) who addressed the Front Range Commuter Rail Conference last Saturday in Jefferson City.  The proposed service—which would link Fort Collins, Denver, Pueblo and eventually as far north as Cheyenne, WY and as far south as Albuquerque, NM—is riding on the coattails of FasTracks, the $4.7 billion transit referendum passed last November.  Other rail and business leaders addressed the Conference, including Amtrak Vice President of Strategic Planning Gil Mallory, California Joint Powers Board General Manager Eugene Skoropowski, and Federal Transit Administration Regional Director Lee Waddleton.