National Association of Railroad Passengers: www.narprail.org

Hotline #487

The Senate is considering H. J. Res. 20 that would fund all government programs for the remainder of Fiscal 2007 (through September 30).  Amtrak funding for Fiscal 2007 would be frozen at the Fiscal 2006 level of $1.29 billion.  The bill must be passed and signed by President Bush before February 15, when the current CR expires.  Senate Majority Leader Harry Reid initiated a procedural move called “filling the tree” to limit or even prevent the offering of amendments to the bill which will speed passage, but has angered Republicans.

H.J. Res. 20 freezes Amtrak at the Fiscal 2006 level, but that is a $200 million improvement over what Amtrak gets in the existing continuing resolution.  To strengthen Amtrak’s hand in the funding process in years to come, contact your Senators and ask them to support S. 294 and tell your House member to urge introduction of companion legislation.  Go to our Action Alert center for full details including a list of co-sponsors.  This bill likely will get a hearing in the Senate committee next month. 

President Bush’s Fiscal 2008 budget would cut Amtrak funding to $800 million, a 39% reduction from this year.  The $100 million reduction from last year’s request was explained this way by NARP Executive Director Ross Capon, quoted in NARP’s news release condemning the request:  “The Administration is trying to take credit for creating the long-awaited federal-state partnership program without providing new money.  They simply reduce an already comically-inadequate $900 million request by $100 million, and assign the latter amount to ‘capital matching grants to States for intercity passenger rail projects.’”

Capon also said, “In a world that must emphasize environmentally benign and energy efficient transportation, cutting Amtrak funding makes no sense either as a stand-alone proposal or in context of this Administration’s proposal to continue increasing highway spending…they still don’t get it.”  NARP’s release can be found here on our website.

The Administration requested $500 million for capital improvements, but ignored nearly $300 million in debt service needs, and proposed a completely unworkable $300 million operating grant (down from $485 million in FY 2006 and probably 2007). 

Objection to the Amtrak number was universal.  New Mexico Senator Jeff Bingaman (D.) said, ““Passenger rail service is a crucial element in helping to attract businesses and new jobs to our state…The end of Amtrak services in the state could have a negative economic impact on those communities that depend on its services.”  Representative Nick Rahall (D-WV) told the Charleston Gazette, “It’s worse than a broken record. When is this president going to figure out that Amtrak is essential to meeting the transportation needs of our citizens?”

Energy efficiency also figured prominently in yesterday’s Senate Appropriations subcommittee hearing, where the only graphic—based on the same Oak Ridge National Laboratory figures NARP has been touting—showed Amtrak’s superior energy efficiency compared with airlines and automobiles.  It was presented by Sen. Frank R. Lautenberg (D-NJ).  DOT Secretary Mary Peters, accompanied by Assistant Secrtary for Budget and Programs Phyllis Scheinberg, were the sole witnesses.  Observing Lautenberg’s graphic, Peters said “that chart makes a compelling argument for greater use of rail”—a tacit admission that the Bush budget is out of step. 

Lautenberg also grilled her on the $309 million shortfall between the supposed guarantee for transit in SAFETEA-LU and what Bush requested.  She responded, “We were asked to limit non-defense discretionary spending growth to 1%.  We’re not leaving any transit projects ready to receive funding” out in the cold.  The truth, of course, is that the Administration has constricted the pipeline, that is, the whole “New [transit] Starts” process is designed to minimize the number of projects “ready to receive funding.”

Of course, highways got the full SAFETEA-LU guarantee of almost $41 billion.  This is an increase, but some senators, including Kit Bond (MO), the subcommittee’s top Republican,  lamented the absence of $631 million than would have been permitted by SAFETEA-LU’s the RABA (“Revenue-aligned budget authority”) feature, which was continued over from the previous highway/transit authorization.  However, the administration was on solid ground to exclude RABA, because gasoline tax revenues are declining, making the “look-back” mechanism for calculating RABA inaccurate. 

Asked by Murray how DOT would avoid putting the Highway Trust Fund into bankrtupcy, Peters cited the absence of that $631 million.  She also said highway funds would be “flexed” to transit [where states decide to spend the money on transit] “as needed” rather than in a big lump sum.  This could be the first act in a drama where transit is sacrificed to help solve the highway funding problem; if this approach is adopted (unlikely because Congressional Budget Office does not want to set a precedent for other ‘trust funds’), transit could be shortchanged the next time around.

The Department of Transportation has released $25 million of funding for the CREATE project in Chicago.  This is part of a larger, $1.5 billion project to untangle railroad bottlenecks in and around the city.  Five of the six Class I railroads that serve Chicago—CSX, NS, CP, BNSF, and UP—have contributed $100 million, the City of Chicago $30 million, and the State of Illinois $100 million.  Two of the intial projects will benefit Amtrak’s Chicago-St. Louis service and Metra’s “Heritage Corridor” Chicago-Joliet service: Brighton Park will be automated and another crossing just south of Brighton Park will have speeds increase and reverse-direction signaling installed.  Among the other CREATE projects (yet unfunded) is the long-anticipated Grand Crossing connection, which will permit Chicago-Carbondale trains and the City of New Orleans to come directly into Union Station without negotiating the St. Charles Airline and major grade separation projects at Englewood and Gresham, which will segregate Metra trains from freight operations and also permit Metra’s Southwest Service to switch to LaSalle Street Station.

Construction was completed this week on a new commuter rail route in Boston. Massachusetts Transportation Secretary Bernard Cohen and other dignitaries drove a ceremonial golden spike at Braintree (the connection with the existing lines to Plymouth and Middleburg) for the Greenbush line.  The long-delayed, controversial project is due to open for revenue service by October.  Some final design work on the stations is left to be done, as well as crew training and familiarization and signal testing.

Efforts are underway to bring commuter rail to Duluth, MN.  Local activist and leaders traveled to St. Paul on Monday to lobby their state elected officials to approve the project.  The initial construction costs would be around $120 million, which would provide for 2 ½ hour service between the two cities.  The project’s chances look better with Duluth’s Congressman, Rep. Jim Oberstar (D.) as the chairman of the House Transportation and Infrastructure Committee.

A Virginia State Senator is threatening to withhold $20 million in track and signal improvements slated for CSX’s former RF&P mainline between Washington and Richmond.  State Senator Edd Houck (D-Spotsylvania) wants a better explanation from CSX about perennial delays to Virginia Railway Express trains, namely heat restrictions placed on CSX lines in the summer.  CSX is the only railroad in North America that institutes such restrictions, which cause numerous delays to commuter railroads and Amtrak passengers.  “I’m to the point where I’m willing to pull the plug on the funding if CSX is not willing to be a participating player to resolve the delays,” he said.

Vietnam will build a 1000 mile high speed rail network using Japanese technology and financial assistance.  The network would link Hanoi and Ho Chi Minh City and cut travel times from 30 hours to 10.  Many Asian countries are providing financial assistance to Vietnam to help it upgrade its infrastructure.

Laidlaw International, Inc., primarily a schoolbus operator but also Greyhound’s owner, announced today it had agreed to acquired by FirstGroup, the Scottish operator of UK buses and trains.  Laidlaw said the all-cash transaction was “valued at approximately $3.6 billion, including the assumption of $800 million of debt…The merger is conditioned upon approval by the stockholders of both Laidlaw and FirstGroup and certain regulatory approvals, as well as other customary closing conditions.” 

Today’s Financial Times reported that Laidlaw’s annual revenues are $3.13 billion of which Greyhound represented $1.24 billion.  FT said, “A deal would transform the Scottish company (FirstGroup), whose main business is running buses and trains in the UK, into the largest single operator of school buses in the US.  The International Brotherhood of Teamsters, which represents many of the school bus drivers, has vowed to oppose a deal…[Greyhound] provides less than half of profits and is the poorest fit with FirstGroup’s operations in the US. But FirstGroup may consider retaining the business, using its expertise from running long-distance trains in the UK.”

“Why we must get Europe’s trains on track,” by Guillaume Pepy, chief executive of SNCF and chairman of Eurostar (operator of trains using the Channel Tunnel), is an op ed piece that also ran in today’s FT.  Pepy urged greater coordination among European railways for successful high speed rail development.  He wrote that “more than $197 billion is scheduled for investment in the region’s rail infrastructure in the years up to 2020.  By then the pan-European network should have doubled, with more than 4,000-km of high-speed lines…”

There is a minor schedule change to Amtrak train #196 (Monday-Thursday) and #136 (Friday).  Effective Monday (February 12), these trains will depart all stations Washington-Wilmington 5 minutes earlier.  The trains will resume their printed times between Philadelphia and New York (and onto Springfield on Friday).

Amtrak is celebrating Black History Month by sponsoring several events.  “A Portrait of Dignity” celebrates the contributions of African American women to the cultural, educational, and political landscape throughout the years and will be held on February 17 at the Jacksonville Amtrak Station.  Representative Corrine Brown (D-FL) will be in attendance.  New York Penn Station will host a music exposition on every Thursday, Friday, and Saturday, as well as Feb. 19th and 28th.  Entertainment will be supplied by such groups as the Ebony Hillbillies, the Irving Louis Latin Jazz Ensemble, and the Amtrak bagpipers; there will also displays by African American vendors and artists.