Hotline #879 - May 26, 1995

The House Railroads Subcommittee, chaired by Susan Molinari (R.-N.Y.), yesterday approved a four-year Amtrak authorization bill. Six significant amendments were made to her May 19 draft bill. The Transportation and Infrastructure Committee may take the bill up in early June, but Chairman Bud Shuster (R.-Pa.) said the toughest battles to save Amtrak this year will be on the House floor.

The bill is called the Amtrak Reform and Privatization Bill of 1995. "Privatization" here means increased freedom for management to run Amtrak like a business. Here are some features of what the Subcommittee passed yesterday:

• Contracting out is allowed.
• The Subcommittee voted 13-3 for a Quinn (R.-N.Y.) amendment pushed by rail labor to subject the labor-protection issue to a complicated bargaining process.
• Funding levels match the House budget resolution -- a three-year freeze at 1995 levels, then a cut in the fourth year.
• The Northeast Corridor could get $200 million a year, all four years; and the Farley building $10 million a year.
• Amtrak could get $50 million in "4-R" loans each year.
• Northeast Corridor commuter agencies pay more to Amtrak, but all states get more access to Amtrak's books.
• Outstanding Amtrak stock would be redeemed and the DOT lien on the Northeast Corridor terminated. It is unclear who would pick future Amtrak board members.
• Punitive damages are capped in line with the House-passed approach to product liability. Non-economic compensatory damages are capped at $250,000 per person. Amtrak and the railroads had jointly sought a total ban on punitive damages.

The Senate passed its budget resolution yesterday. Though appropriations committees will make precise spending decisions, the resolution apparently assumes Amtrak operating grants will drop to zero in phases.

A non-binding resolution favorable to Amtrak failed by one vote on the Senate floor yesterday. Max Baucus (D.-Mont.) proposed assigning one-half cent of the federal fuel tax to Amtrak for three years. The vote against Amtrak was 49-50, but this was still a strong showing for Amtrak on a controversial question.

A poll commissioned by NARP and carried out last weekend by an independent market research firm showed strong support for an Amtrak gas-tax penny and for letting states spend ISTEA money on Amtrak. Telephone interviews were completed among a random, nationally representative sample with 1,006 responses. Both questions drew 63% positive replies.

The Michigan Transportation Commission has decided that the Grand Rapids train can run beyond June 30 only if a legal entity composed of local interests is formed to oversee the service. The entity must work with Amtrak and Michigan DOT on aggressive marketing and cost control aimed at breaking even operationally by October 1. That may be impossible, but the Commission may relent if good progress is made.

Caltrans and Amtrak add a new weekend-and-holiday San Diegan round-trip on June 3, departing San Diego at 8:00 am, and Santa Barbara at 4:45 pm. Also, the 6:15 pm from Santa Barbara to San Diego will be replaced on weekends with a train that runs 30 minutes later.

The new Charlotte-Raleigh train, the Piedmont, and the new Seattle-Vancouver train, the Mount Baker International, are both running now.