Hotline #984 - May 30, 1997

House Transportation and Infrastructure Chairman Bud Shuster (R.-Pa.) had hoped to begin the process of marking up an ISTEA reauthorization bill last week, but the budget resolution process slowed things down. Shuster was unsuccessful in his attempt to get more highway and transit money added into the budget resolution.

Now, Shuster must go forward with his ISTEA plans in a restrictive budget environment. Here are three possible choices. First, he could write a multi-year bill conforming to the lower budget levels. Second, he could write a bill with higher funding levels, and with higher fuel taxes. Higher taxes, however, probably would be a hard sell. Third, he could write a one-year bill to keep highway and transit programs alive until 1998, an election year, if he thinks the political climate will be better for him then.

Howe any of these possible scenarios affect Amtrak is unclear.

The House and Senate still have to reconcile their versions of the budget resolution when they return from Memorial Day recess June 3.

Chairman Shuster's "blue ribbon" panel on Amtrak will have its fourth and last meeting June 11 and 12 in Washington.

Rep. Joel Hefley (R.-Colo.) introduced on May 20 H.R.1666, entitled the "Amtrak Privatization Act." It would make Amtrak subject to taxation, remove the federal government as its owner, remove the mandate for a basic system, repeal the Northeast Corridor Improvement Project, ban the six years' labor protection that some laid-off Amtrak workers get, and release Amtrak from the Federal Employers Liability Act. In short, it would require a private Amtrak to compete with public highways and airports. This is a kill-Amtrak bill.

Rep. Susan Molinari (R.-N.Y.), who chairs the House Railroads Subcommittee, yesterday announced she would resign from Congress August 1 to accept a position at CBS Television.

Guilford, the freight railroad serving northern New England, wrote to DOT Secretary Rodney Slater last week, offering to buy or lease Amtrak's Northeast Corridor. Guilford President David Fink said privatization -- which he did not define -- and total shutdown were the only two choices the government faces with Amtrak. He ignored a third choice -- legislative reform and the half cent -- which is what NARP has been working toward and which enjoys much favor among the New England Congressional delegation. The Associated Press quoted Amtrak's Rick Remington saying, "We don't take it seriously."

Also this week, Guilford filed a motion against the Surface Transportation Board to dismiss the proceeding involving Amtrak access to Guilford's line to Portland, Me., based on Guilford's allegations about Amtrak's weak financial position. Amtrak took the case to the STB because Guilford refused to accept the contractual conditions that all other freight railroads contracting with Amtrak have accepted.

The IC3 Flexliner will be on the Chicago-Milwaukee line, running in Hiawatha service from June 6 through June 29. It will cover most, but not all schedules. The train will be on display at Milwaukee on June 4 from 12:00 noon to 6:00 pm, and on June 7 from 10:00 am to 4:00 pm; and at Chicago on June 5 from 11:00 am to 2:00 pm.

Amtrak's Capitol Corridor trains began serving Hayward, Cal, yesterday, just south of Oakland.

As of today, Amtrak is still studying whether to restore the Los Angeles through-cars on the Texas Eagle. We cannot confirm that they will resume June 5, as reported in the May newsletter.