Hotline #10 - November 28, 1997

The Amtrak reauthorization bill, S.738, passed by both Houses of Congress on November 13, finally was presented to the President on November 20. He has ten days to sign the bill.

Chairman Chafee's six-year ISTEA reauthorization bill is expected on the Senate floor January 28. The House likely will take up its version several weeks later. Chairman Shuster wants significantly increased highway spending authority and the Speaker reportedly has said this would not be possible before a budget is passed reflecting the anticipated "excess revenues." A big debate is likely about the use of those revenues.

Sen. Robert Byrd (D.-W.Va.) and Sen. Phil Gramm (R.-Tex.) likely will offer an amendment that would shift to highways the 4.3 cents in federal gasoline taxes that now go to deficit reduction and allow these funds to be spent. This will produce a big debate. The key role the Senate Finance Committee may play in the outcome of this debate is the reason Amtrak still could get the half cent. The half cent always was intended to come out of the 4.3 cents and the failure of Congress to deal with the 4.3 cents this year is the reason Finance Chairman Bill Roth (R.-Del.) got the special $2.3 billion tax refund arrangement.

The Washington Post on November 24 printed a letter from Illinois Association of Railroad Passengers Ken Bird that criticized NARP and the High Speed Ground Transportation Association. Bird said, "Substantial federal funding continues to be wasted on trains that don't have a prayer of success." His letter does not represent the views of the group he heads, according to its other officers, including its Vice President, Secretary, and Director of Public Affairs.

The FAA had planned to rule last week on whether the Port Authority of New York and New Jersey may use $1.2 billion in passenger departure tax money for the planned rail link to Kennedy Airport. The New York Times yesterday reported that the delay probably is due to extraordinary pressure for and against the project. The airlines are opposed, but the Times quoted Janine Bauer of the Tri-State Transportation Campaign expecting FAA to rule in favor of the Port Authority. She said, "This region, where it is very hard to get big projects built, has now come to a consensus that this is what we want. It would be an outrage to turn them down based on airline lobbying and/or a narrow interpretation of the law."

The Times noted that last year, FAA allowed the Port Authority to spend departure tax money on a $250-milion connection from the Newark Airport monorail system to Amtrak's Northeast Corridor. That project should be finished by the end of 2000.

Pennsylvania House Transportation Committee Chairman Rick Geist of Altoona says the State General Assembly last week approved nearly $300 million in rail projects, including $155 million for four high-speed train sets and related facilities. The sets could be coupled onto Amtrak's American Flyer order, or bid separately, and would be used first between Philadelphia and Harrisburg. Geist hopes they will go also to Pittsburgh one day. These trains are in addition to seven diesel trains already ordered. The governor would have to release the new funds before the purchases are made.

Other items in the authorization include a statewide comprehensive passenger rail study, a new Amtrak station at Paradise, Pa., to connect with the Strasburg tourist railroad, locomotives for the proposed Scranton-New York service on the old Lackawanna line, purchase of part of that line still owned by Conrail, and several transit items in Philadelphia and Pittsburgh. Also authorized is a $26 million maglev assembly plant for a proposed, controversial line to the Pittsburgh Airport.