Hotline #20 - February 6, 1998

President Clinton on February 2 released his fiscal 1999 budget. While widely praised for being the first balanced budget in 30 years, there is -- as always -- plenty to worry about in the Amtrak department.

First, the budget calls for all 1999 Amtrak funding to come from the Highway Trust Fund. The Clinton Administration has tried this before, and failed. When Congress budget leaders reject Highway Trust Fund money for Amtrak, it will be very difficult for appropriators to carve out enough general funds for Amtrak. The fact that key appropriators are lukewarm or hostile to Amtrak does not help.

The Clinton budget breaks commitments made previously to passengers and employees. Though Clinton has said he wants a "high-quality, reliable rail service," the proposed amount of 1999 funding is a 40% reduction in Amtrak outlays -- the amount of cash actually spent on a program in a given year. The budget proposal raises doubts about whether Amtrak can honor last fall's maintenance-of-way labor contract, which ironically was brokered by the Administration's top transportation official, DOT Secretary Slater.

Finally, by making the new 1999 money only for capital items, Clinton proposes to achieve operating self-sufficiency eight months from now, which is three years ahead of schedule. That may be a foolhardy proposition in itself, but there is absolutely only one way that can work -- that is, if the allowable uses of appropriated capital are broadened to include things like maintenance of equipment. Other modes, notably transit, already enjoy this distinction, and applying it to Amtrak may be the key to Amtrak's survival in 1999.

Amtrak's spring timetable change this year will be May 17. At that time, Amtrak will restore through sleeping cars and coaches between Chicago and Los Angeles via San Antonio on the tri-weekly Texas Eagle/Sunset Limited. That's in addition to the new fourth Texas Eagle frequency, which begins this weekend. Restoration of the through cars is due in large part to the persistence of NARP President Jack Martin and the hard work of Bill Pollard and others.

Storms on the West Coast earlier this week shut down some of Amtrak's services. Flooding between Los Angeles and Salinas, Cal., disrupted service on the Coast Starlight and the San Diegans. Metrolink in Los Angeles added cars to its commuter trains to accommodate extra passengers.

Another storm in Florida caused Tri-Rail to urge commuters to find alternate transportation. Tri-Rail and Amtrak trains were delayed as trains had to be flagged through damaged grade crossings. The storm broke nineteen of 67 crossing gates on Tri-Rail.

A study presented to the Florida Transportation Commission yesterday said that the proposed high-speed rail service from Miami to Orlando and Tampa would attract 8.25 million passengers a year. That's almost as many passengers as on the Metroliners, Clockers, and NortheastDirect trains put together, which was 9.1 million in 1997. The projected ridership is more than enough to please the Florida DOT, but more analysis is needed. State and project officials also hope for some federal funding.

A Travel Weekly article (January 29) discussed the fact that travel agents are starting to charge customers service charges, as a way to counteract the effect of declining airline ticket commissions. Although Amtrak has kept its 10% commission for travel agents, some agents are including Amtrak tickets under their new service charges. Amtrak has complained, with good reason, since this practice puts Amtrak into sort of a double-jeopardy -- Amtrak pays high commissions to travel agents who then make Amtrak tickets more expensive for customers to buy.

Canadian National and Illinois Central have confirmed they are in merger talks.