Hotline #967-A - February 6, 1997

"All talk and no action," is how NARP described the President's proposed budget for 1998, which was released yesterday. That is because Clinton Administration officials repeatedly talk about Amtrak operational self-sufficiency, yet the Administration refuses to provide Amtrak the most important tool to reach that goal -- a dedicated source of capital funding, such as the half-cent proposal. Overall, the Clinton budget cuts Amtrak funding 9%, or $75 million, below the current level, even though Amtrak is expected to seek an increase consistent with the dedication of a half-cent of the federal gasoline tax to Amtrak capital improvements.

If Congress does not improve upon the Clinton request, Amtrak may not survive 1998. Clinton's proposed operating grant would force Amtrak to choose between running the whole system until the money runs out, or lopping off even more routes. The most likely candidates for 1998 cuts would be the Sunset Limited, Crescent, City of New Orleans, and Cardinal. That, along with loss of other routes this year, would leave a national system too small to attract adequate Congressional support. This would kill even the corridors that the Administration talks about so favorably.

For Amtrak operations, the President proposes $202 million. Amtrak is requesting $245 million. Amtrak got $222.5 million in 1997, and $285 million in 1996. The Administration and Amtrak agree on $142 million for mandatory payments.

For system capital, the President proposed $200 million, down from $223 million this year. The Northeast Corridor also would get $200 million, down from $255 million this year. The Farley project in New York would get another $23 million.

All Amtrak capital would add up to $423 million, far short of the $750 million that a gas-tax half-cent would provide. The Clinton request also would mean that Northeast high-speed service could not start as planned in 1999. This is the service that Federal Railroad Administrator Jolene Molitoris last month called that service the "economic engine" that will make a profit, and whose revenues will support other Amtrak trains.

NARP members must tell their Members of Congress that they need to do better to improve on the Clinton budget both by providing higher funding levels and by enacting an Amtrak gas-tax half-cent.

The Senate Commerce Committee approved the nomination of Rodney Slater for Transportation Secretary on a voice vote yesterday. The full Senate likely will approve Slater later this afternoon.

Amtrak's northbound Silver Meteor hit a tractor-trailer truck yesterday, 13 miles north of Jacksonville, Fla. Fifteen were injured. The locomotive and baggage car derailed and overturned. The first two passenger cars, both coaches, derailed but remained upright. Passengers were transferred at Jacksonville to the Auto Train, which made all Silver Meteor stops up to Richmond, when passengers were transferred again to another train. The truck was trying to make a U-turn across the tracks and got stuck.

Cable TV viewers in New Jersey, Connecticut, and parts of New York can watch the Regional News Network channel tonight at 6:30, and see Ross Capon of NARP talk with Wendell Cox, who co-authored the recent, very bad Cato Institute report on cutting off Amtrak funding.