Hotline #880 - June 2, 1995

The Senate voted, in effect, 49-50 against a Baucus resolution on May 25 to give a half-cent of the federal fuel tax to Amtrak for three years. Of the 49 who voted pro-Amtrak, 11 were Republicans -- Burns (Mont.), Chafee (R.I.), Cohen (Me.), DeWine (Ohio), Hatfield (Ore.), Jeffords (Vt.), Nickles (Okla.), Roth (Del.), Santorum (Pa.), Snowe (Me.), and Specter (Pa.).

Of the 50 who voted anti-Amtrak, seven were Democrats -- Breaux (La.), Glenn (Ohio), Graham (Fla.), Hollings (S.C.), Johnston (La.), Kohl (Wis.), and Moynihan (N.Y.). Mikulski (Md.) did not vote.

The Amtrak authorization bill passed by the House Railroads Subcommittee on May 25 may be considered by the Transportation and Infrastructure Committee around June 14. The current version of the bill generally freezes Amtrak at 1995 funding levels through 1998. While the bill shows a $60-million reduction compared to 1995 for basic Amtrak operating and capital funding, it also separately earmarks $10 million a year for the Farley building project and provides $50 million in loan guarantees.

Also, while the Northeast Corridor commuter agencies would pay more to use Amtrak-owned tracks, they would not pay fully allocated costs because the bill prohibits Amtrak from charging commuter authorities for general or administrative costs, corporate overhead costs, or certain return on investment costs.

The bill requires Amtrak to give states more advance notice of service discontinuations -- 180 days instead of 90 days. It postpones the deadline for Amtrak to retrofit old cars to retention plumbing by five years, until 2001. The bill repeals the statutory obligation to maintain a basic nationwide network, though the committee's intent seems to be to preserve such a network.

The bill may reduce Amtrak's willingness to perform contract work such as track work. Anyone who feels Amtrak has contracted such work below cost can litigate against Amtrak, but Amtrak is not given power to litigate against others. The ability to contract out has cut Amtrak's subsidy needs by letting its track equipment and maintenance facilities earn cash when not needed for Amtrak work.

Many observers are concerned about the policy implications of the bill's depriving the federal government of its preferred Amtrak stock and its lien on the Northeast Corridor, and vagueness about to whom the board would report.

Of the 195 Superliner cars on order, Amtrak had received 111 as of April 30. Amtrak expected to get six more in May; three diners, two lounges, and one all-bedroom sleeper. A new GE dual-mode locomotive was handed over to Amtrak at Philadelphia on April 6 and is being tested. All ten locomotives should be delivered by the end of this month.

Amtrak hoped to have all 50 Viewliner sleepers in service by the summer of 1996, but deliveries could be set back a year if Morrison Knudsen fails and another manufacturer takes over. The May 29 Barron's magazine, which is newsstands at least through tomorrow, has a long, very bleak report on MK's prospects.

The biennial budget approved by a Wisconsin legislative committee raises the state gas tax by 3.5 cents, but deletes state planning for light-rail projects in Milwaukee and Madison.

The last of the series of Federal Railroad Administration outreach sessions on high-speed rail was held yesterday at Chicago.

Amtrak President Tom Downs will speak at a Transportation Research Forum luncheon on June 14 in Washington. It costs $20 for non-members, call 202/225-3274 to sign up.