Hotline #968 - February 7, 1997

"All talk and no action," is how NARP described the President's proposed budget for 1998, which was released February 5. 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.

The Clinton budget cuts total Amtrak funding 9%, or $75 million, below the current level, at a time when Amtrak is expected to seek an increase consistent with the dedication of a half-cent of the federal gasoline tax to Amtrak capital improvements. Total federal spending is up 3%, transit is unchanged, and highways and aviation are cut about 2%.

This budget would kill Amtrak by forcing 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. Even corridor services would end, at that point.

For Amtrak operations, the President proposes $202 million. Amtrak is expected to seek $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 that some reports lump together with operations.

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.

Clinton's request for total Amtrak capital is $423 million, far short of the $750 million that a gas-tax half-cent would provide. It would mean that Northeast high-speed service could not start as planned in 1999. Last month, Federal Railroad Administrator Jolene Molitoris called that service the "economic engine" that will make a profit, and whose revenues will support other Amtrak trains. Finally, Clinton wants to sell off Washington station air rights that Amtrak is counting on to generate future income.

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 unanimously confirmed Rodney Slater as Transportation Secretary yesterday.

Amtrak's northbound Silver Meteor hit a tractor-trailer truck on February 5, 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.

Amtrak, Missouri DOT, and ADtranz have announced that the IC-3 Flexliner will run in revenue service on trains 301 and 306, the Mules, from April 8 to May 1. There also will be public displays at St. Louis April 5, Kansas City April 6, and Jefferson City April 7. The Flexliner is also expected to be in Phoenix in March.

The League of American Bicyclists is launching a post card campaign directed at Amtrak. Amtrak had told the League that Superliner baggage-coach cars would get roll-on bike access. Now, Amtrak instead plans to use the same space for smoking lounges. Amtrak's quiet decision to reassign that space could lead to political problems. One strong bike supporter is James Oberstar (D.-Minn.), ranking member on the House Transportation and Infrastructure Committee, who will be important to the ISTEA renewal process.

A bill to reinstate the aviation ticket tax was released by the Senate Finance Committee on February 5.