Hotline #889 - August 4, 1995

The Senate Appropriations Committee passed its version of H.R.2002, the fiscal 1996 transportation funding bill, today. Amtrak operations got $185 million, less than half the amount Amtrak got in 1995 and $75 million less than Amtrak says it needs for 1996. The transportation subcommittee on August 2 gave Amtrak $100 million for "transition costs;" $38 million more than in the House bill. Amtrak's current estimated need is between $92 million and $118 million, depending on labor protection costs. For mandatory retirement and unemployment costs, there is $120 million; the same as the House, but $30 million less than Amtrak needs.

Capital is $200 million, which is $30 million less than in the House. The subcommittee provided more than the House in the following areas -- Northeast Corridor at $130 million, Farley Building at $25 million, high-speed rail at $25 million.

The low Amtrak figures underline the importance of passing an authorization soon that enables Amtrak to operate more efficiently.

After development of a new version of H.R.1788, the House Amtrak reauthorization bill, which seemed to please everyone, labor on the evening of July 31 found a new complaint about language that had been in the bill since May 5 and in the Quinn amendment. Lacking assurances that Democrats would not offer an amendment, Chairman Shuster on the morning of August 2 cancelled a mark-up session scheduled for that day.

Without a unanimous green light for rail labor -- whose unions are divided on whether to push this issue on this bill -- the Democrats appear unwilling to assure Shuster they will offer no amendment. Shuster is unwilling to risk the need for Republicans to cast another anti-labor vote.

Therefore, Committee Democrats need to hear from us about the importance of letting the bill go forward as is, and telling Representatives Mineta and Lipinski, the ranking Democrats on the full committee and Railroads Subcommittee, to tell Shuster that the Democratic leadership will not offer an amendment. Shuster's and Mineta's statements on this latest fiasco are available from NARP -- send $2 and an s.a.s.e.

Meanwhile, the Senate Finance Committee needs to hear support for the provision in the Senate Commerce Committee's Amtrak bill that would give to a new passenger-rail trust fund a half cent of the 2.5 cents in gas-tax money now going to deficit reduction.

The Highway Users Federation has launched a nationwide advertising campaign against the Roth-Biden amendment to the Senate-passed National Highway System (NHS) bill. This amendment would let states spend certain highway funds on passenger rail. The House NHS bill's legislative journey is expected to start right after Labor Day in Shuster's Subcommittee on Surface Transportation, chaired by Thomas Petri (R.-Wis.).  Ranking Democrat there is Nick Rahall (W.Va.).

Both Senate Finance and House Ways and Means Committees need to hear support for equitable treatment of airlines, Amtrak, and buses regarding the 4.3-cent deficit-reduction tax. The airlines got a two-year exemption from this tax when it was imposed two years ago and 218 Representatives, including 19 on Ways and Means, are co-sponsoring a bill that would extend the exemption. Moreover, airline profits have gone through the roof, with United's second-quarter earnings 52% above Wall Street expectations and Southwest more than 20% above forecasts. Extending the airline exemption would cost the federal government $530 million a year in revenues. Exempting Amtrak and intercity bus would cost only another $10 million.

We are optimistic that Amtrak will continue the Cardinal to Chicago, but less hopeful they will change plans to drop the Broadway Limited.