Hotline #902 - November 3, 1995

The Senate Finance Committee yesterday approved S.1318, the Senate Amtrak authorization bill, after removing tax-related language from it. Concerns about the bill's energy provisions -- especially from Senator Murkowski -- mean S.1318 is still not ready for floor action.

Then the Finance Committee approved a separate bill with the provision giving a half cent of the gas tax to Amtrak, along with a provision aimed at protecting transit.

Under this new bill, Amtrak would get less than the over $700 million a year a half cent would produce. Amtrak would get $125 million in 1996 and $650 million a year from 1997 through 2000. Also, the transit-protection provision would insure that -- in the unlikely event the balance in the mass transit account of the Highway Trust Fun falls below a certain level -- necessary spending cuts would be imposed on Amtrak, rather than on transit.

This made the provision acceptable to both New York Senators and should satisfy all transit advocates.

The Committee dropped two other tax provisions, but gave Amtrak the estimated budgetary cost of these provisions -- an additional $47 million over five years. One provision would have made tax-free Amtrak's incentive payments to freight railroads for good on-time performance. At a time when other budget cuts are exacting sacrifices from so many people, the Committee opposed giving what looked like a new tax break to big, profitable corporations.

The other provision would have let Amtrak issue tax-exempt bonds. Key Senators considered this bad tax policy.

Clearly, Amtrak has benefited from the fact that Finance Committee Chairman William Roth (R.-Del.) cares about Amtrak. The big question is whether all this will become law. Amtrak's chances may be better if President Clinton vetoes the big reconciliation bill, rather than signing the first version he gets. However, it is also possible that the half cent could be attached to another tax measure expected in the next few months.

In any event, Speaker Gingrich and Chairman Bill Archer of the House Ways and Means Committee need to hear support for what Senate Finance did yesterday.

As for ISTEA flexibility for passenger rail, conferees on the National Highway System bill still have not finished their work and still need to hear support for giving states the right to spend gas-tax funds at their discretion on intercity passenger rail.

The House Amtrak authorization bill, H.R.1788, will go to the floor November 9 at the earliest.

The Senate passed the post-conference version of the 1996 transportation appropriations bill on October 31, 87-10. It was passed by the House last week. It now goes to President Clinton for signature.

Amtrak issued a release criticizing the freight railroads for recent on-time performance. Amtrak said freight railroads were the cause of 45% of all Amtrak delays in July, August, and September.

NARP Executive Director Ross Capon will be interviewed on the television news series produced by The New Electric Railway Journal. The topic is high-speed rail. The show airs tomorrow at 6:00 pm (Eastern) and has a repeat schedule. The show is on satellite -- Galaxy 7, Transponder 20-V -- but is also on a few cable stations.

A new commuter rail service opened on November 1 from Mission, B.C., to Vancouver, a distance of 40 miles. It's called West Coast Express. Five peak-time round trips operate over the Canadian Pacific main line, terminating at the old CP station downtown, with direct connections to the Skytrain and the ferry to North Vancouver.