Hotline #863-A - February 7, 1995

President Clinton's proposed budget for fiscal year 1996 was released yesterday. For Amtrak operations, the budget has $300 million, 23% below this year's $392 million. The budget evidently assumes every element of Amtrak's ambitious business plan will fall into place, including highly speculative revenue retention estimates. Either that, or there will no longer be a national system.

Amtrak capital stays at $230 million, far below what Amtrak modernization requires. Mandatory excess retirement and unemployment payments drop to $120 million. The Northeast Corridor would be $235 million, up from $200 million. In addition, $10 million would go to a Corridor freight track in Rhode Island.  The Farley Building in Manhattan would get $50 million. A total of $68 million is requested for high-speed rail, but nothing for corridor assistance. Of that, $33 million is for research and development.

Clinton proposes to fund Amtrak through a new, unified transportation trust fund, which is a sound concept. But it already has been criticized by key legislators -- including Reps. Bud Shuster (R.-Pa.) and William Lipinski (D.-Ill.) -- as well as the highway lobby and the Journal of Commerce. The problem is complicated by a simultaneous proposed drop in transit's trust fund share from $2.9 billion to $1.3 billion. Deputy DOT Secretary Downey, answering a question from NARP at last night's budget briefing, said the Administration stands by its Amtrak numbers whether or not the trust fund proposal wins, but it is unclear where the money would come from if it does not. In any event, Members of Congress need to hear from citizens that buying a gallon of gasoline is not the same as voting for more highways everywhere forever.