Hotline #993 - August 1, 1997

A fight between Labor and Congressional Republicans threatens to bankrupt Amtrak by January unless President Clinton acts independently. The key question is whether Congress and President Clinton can agree this year on an Amtrak reauthorization bill. Only if such a bill is enacted can Amtrak receive the $2.3 billion capital fund that is part of the final budget reconciliation package. The budget package language replaces Senator Roth's original half-cent language, but provides the same amount of money.

Knowing how hard it is to pass a separate Amtrak reauthorization, Senator Roth tried hard this week to make a deal with the White House to put an Amtrak reauthorization into the budget package too. Roth got fellow Republicans to agree to compromises on liability reform, on Amtrak Board of Directors provisions, and on the Senate's shut-down commission. He also offered something President Clinton wants very much, relating to Caribbean trade issues -- if Clinton would agree to the Amtrak reauthorization.

But Clinton refused to agree to the labor reforms that Republicans see as vital -- even though labor itself supported these reforms two years ago, and even helped write them.

Under the budget package, Amtrak would get its $2.3 billion in the form of tax refunds from the IRS, in two equal amounts in January 1998 and January 1999. So enactment of a reauthorization any time this year would let Amtrak get its "pot of gold" on time.

However, time is short, and there is such bad blood over this issue, that the outlook is mixed at best. Republicans might not return to the new compromises they offered this week. Indeed, the House Transportation and Infrastructure Committee yesterday passed an Amtrak reauthorization, H.R.2247, without these compromises.

Moveover, the AFL-CIO on July 30 wrote to President Clinton attacking Amtrak President Tom Downs, because he supports the labor reforms essential to save Amtrak -- again, the same labor reforms the unions themselves endorsed two years ago.

President Clinton needs to hear from you right now. He needs to know that you know there is a choice. President Clinton can act responsibly to save intercity passenger rail and 23,400 jobs at Amtrak, or he can keep taking dictation from rail labor on every detail and watch Amtrak collapse "on his watch," probably within five months. You can call the White House comment line at 202/456-1111, or send a fax to 202/456-2461.

Also this week, the full Senate approved S.1048, its transportation appropriations bill, with a 21% increase for highways and a 16% increase for airports. A House-Senate conference is expected after Labor Day, but staff work will come sooner. The key problem for Amtrak is getting the full $142 million for excess mandatory retirement payments. The House bill is $61 million short there. The Senate bill has the full amount, only because it was forced in committee onto the unsympathetic Subcommittee Chairman, Richard Shelby (R.-Ala.). Conferees must keep that money, which the Senate approved, in the final bill.

Sponsorship on H.R.1437, the House half-cent bill, has reached 81. While the bill itself will not be passed, all the efforts of NARP members to get House co-sponsors where still useful in getting the $2.3 billion in Amtrak money in the final budget package.

Amtrak has announced that it will run the Texas Eagle indefinitely beyond September 30. That was the date specified in the loan worked out between Amtrak and the State of Texas in May. A sticking point for train supporters all summer long has been that Amtrak would not open Eagle reservations for any date beyond September 30. Now, Amtrak has opened the period from October 1 through October 25, which is the last day of the summer timetable. Reservations beyond that will be opened when the fall timetable is finalized.