Hotline #938-A - July 17, 1996

The Senate Transportation Appropriations Subcommittee yesterday approved its version of the 1997 DOT funding bill, H.R.3675. The full committee is expected to approve it tomorrow, but changes affecting Amtrak are not expected then.

In total, Amtrak did very well in the Senate bill, compared to in the House. The Amtrak total is $872 million, which is 61% higher than the House bill and 16% higher than current year funding. System capital is at $250 million, compared to $120 million in the House. Northeast Corridor funding is $200 million, compared to zero in the House. Both bills contain $142 million for mandatory retirement payments and $80 million for high-speed trains and maintenance facilities.

Unfortunately, the Senate followed the House and President Clinton in approving $200 million for operations. This is $50 million less than the Amtrak request. It is no surprise that a Republican-controlled legislature will not give operations more than the Democratic president requested. Nevertheless, this is bad news, since it is becoming clear that the current Amtrak route structure would not survive 1997 even on the $250 million Amtrak requested for operations. The scope of route cuts remains unclear. The timing is, too, but cuts appear possible in early January.

Senate leaders hope to pass H.R.3675 by August recess. It is critical that the conference committee adopt the Senate numbers and resist the temptation to "split the difference" -- or move even an inch towards the more destructive House numbers.