Hotline #992 - July 25, 1997

Bi-partisan meetings of House and Senate conferees on the tax and budget reconciliation bill -- and White House officials -- began July 23. It appears that Amtrak's $2.3 billion in capital funding will be part of any overall deal. The big question is when -- or if -- an overall deal will be reached. It could take into September.

Another likely outcome would be to shift all of the 4.3 cents of the federal gas tax now going to deficit reduction into the Highway Trust Fund, but with no mechanism to actually spend it. No decision has been made on whether to divide it between highways and transit on an 80-20 split, as has been the practice for the last 15 years.

Amtrak would get its $2.3 billion as a tax refund tied to certain pre-1971 taxes paid by the private railroads whose passenger operations Amtrak took over. This refund is called a "net operating loss carryback." Most businesses can reduce their tax liability by writing off their losses. Until now, Amtrak has never enjoyed a similar benefit because it has not paid taxes. The money would be used only for capital, and would be subject to passage of a reform reauthorization that addresses labor and liability issues.

The Senate Amtrak reauthorization bill, S.738, likely will go to the Senate floor after Labor Day. But there could be trouble in the House. Chairman Bud Shuster (R.-Pa.) of the House Transportation and Infrastructure Committee has drafted a bill virtually identical to his bill that the House passed on a 406-4 vote two years ago. Unfortunately, even though the bill includes the modifications that labor interests advocated two years ago, labor now opposes those provisions. Therefore, it is not clear what will happen July 30, when Shuster's committee marks up this bill. Shuster needs to hold onto all of the Republican votes or get a few Democratic votes to prevail.

If he fails, there is a danger that the House leadership will lose interest in passing an Amtrak bill. This could be fatal, because Amtrak would never get the $2.3 billion in capital funds and could suffer in the appropriations process as well. NARP's only major objection has been to the bill's restructuring of the Board of Directors, but this issue can be addressed in conference.

The Senate Appropriations Committee approved S.1048, the 1998 transportation funding bill, on July 22. An amendment by Senator Lautenberg (D.-N.J.) was approved, bringing the Amtrak mandatory retirement payments figure back up to the $142 million level agreed upon by Amtrak and the Administration. That is $61 million more than the House level, so conferees will have to work that out later. S.1048 likely will be on the Senate floor on July 28.

The full House voted July 23 to approve H.R.2169, their version of the 1998 transportation funding bill. Acting on a point of order raised by Chairman Shuster, the House took out the Amtrak route-closing language that Transportation Subcommittee Chairman Wolf (R.-Va.) had included. Wolf took the occasion to emphasize the importance of passing a reform authorization bill.

Sponsorship on H.R.1437, the House half-cent bill, reached 80 as of yesterday.

After August 1, up to four unboxed bikes will be allowed on the Cardinal. Reservations and a $15 fee are required. This is the first overnight train to allow this service. Bikes will be stored in one of the two baggage racks in the lower level of the coach-smoking car. NARP and the League of American Bicyclists have been working on such an idea for several years.