Hotline #25 - March 13, 1998

The Senate passed its ISTEA renewal bill, S.1173, yesterday. This bill still provides states the flexibility to spend some of their federal transportation funds on intercity passenger rail projects, if they choose to do so. This important feature is not in the House bill, H.R.2400, and so will have to be worked out in conference. Also, S.1173 does not address the question of gas-tax money for Amtrak. However, Amtrak's current plan is to rely instead on a combination of the Taxpayer Relief Act money and a broader, new definition that allows capital funds to be used for all types of maintenance work.

One amendment that passed this week that is of interest to rail passengers was one from Don Nickles (R.-Okla.) letting states without Amtrak service use some of their transit funds to get Amtrak service. Another approved amendment, from Carol Moseley-Braun (D.-Ill.) increases annual grade-crossing spending on high-speed rail corridors from $5 million to $20 million.

There was a hearing March 11 in the House Transportation Appropriations Subcommittee on Amtrak and FRA funding for 1999. The witnesses were Federal Railroad Administrator Jolene Molitoris, Acting Amtrak President George Warrington, and Amtrak board members Sylvia de Leon and Amy Rosen.

The hearing generally was positive. Warrington and the two board members made a strong case that the BMWE agreement is in Amtrak's best interest. Warrington showed that Amtrak pays much less for some types of work than the Long Island and Metro North commuter railroads. He said it is costly when Amtrak has to keep training new employees because Amtrak loses workers to higher-paying railroads. He also said Amtrak's labor contracts are far better than any freight or commuter railroad has been able to negotiate regarding productivity gains and work rules.

Chairman Frank Wolf (R.-Va.) seemed to have an open mind about the new definition of capital Amtrak is seeking, though he called it a "shell game." There also were questions about taking all new Amtrak funding from the Highway Trust Fund.

Amtrak witnesses said that, after counting for work rule savings and cost-of-living raises that would have happened anyway, the BMWE agreement applied to all unions would cost $38 million a year. They said that was not much compared to Amtrak's annual payroll of $1 billion, and not much compared to the $3.8 million a day that a strike would have cost.

The only really sour note was a promise from Subcommittee member Sonny Callahan (R.-Ala.) that he would try to cut Amtrak funding this year.

House Transportation and Infrastructure Chairman Bud Shuster (R.-Pa.) has appointed Bob Franks (R.-N.J.) as the new chairman of the Railroads Subcommittee. This position has been vacant since Susan Molinari (R.-N.Y.) left the House last summer. Issues before the Subcommittee this year include the reauthorization of the Federal Railroad Administration, the Surface Transportation Board, and the Railroad Safety Act. Also, Shuster appointed Jerry Moran (R.-Kans.) to the Railroads Subcommittee.

Amtrak West resumed full service on the Coast Starlight route on March 11, after two weeks' interruption due to a flood-damaged bridge near Ventura, Cal. San Diegan service north of Los Angeles resumes March 16. All trains north of Los Angeles are subject to delay.

Senate Majority Leader Trent Lott (R.-Miss.) has put a hold on the nomination of William Clyburn to the Surface Transportation Board, according to the Journal of Commerce. He was nominated by President Clinton last August to fill a vacancy on the three-member board. The hold is apparently because the DOT Office of the Inspector General is investigating board member Gus Owen (R.), over a possible conflict of interest.

Amtrak shifted its Cardinal stop from Catlettsburg, Ky., to a new intermodal facility in the old C&O freight house in downtown Ashland, on March 11.