Hotline #45 - July 31, 1998

The House passed its 1999 transportation appropriations bill early yesterday on a vote of 391-25. The bill has full Amtrak funding of $609 million, thanks to skillful work by Subcommittee Chairman Frank Wolf (R.-Va.) and his staff. An amendment by Representative Andrews (D.-N.J.) added language already in the Senate bill denying the Amtrak Reform Council the ability to spend appropriated funds on consultant services. The stated rationale is that Council members were selected for their technical expertise. However, as Chairman Wolf indicated in a C-SPAN interview shortly before the House took up the bill, many Representatives are concerned about the ARC's broad jurisdiction. Indeed, one could argue that the Council's statutory ability to determine as early as December 1999 that Amtrak is not adhering to its business plan constitutes, if you will, a time bomb that could destroy intercity passenger rail.

The new, four-member Amtrak Board held its first regular meeting on July 29. The board members are thrilled by the positive results Amtrak has shown through the first three quarters of fiscal 1998.

Wisconsin Gov. Tommy Thompson (R.) said of Amtrak, "You have your ridership up, your on-time performance up, and a newfound love of railroads in America. I think you're on the dawn of a new era." Thompson said the board will unveil more plans for expansion but he did not specify a date. "We've got a lot of plans going right now. We're going to be revealing a Midwest plan. We have to go to Congress and get that clarified. Growing ridership and improving financial performance show that Amtrak is on the right track to improve service, modernize its business, and strengthen passenger rail service. I think we've got a story to tell and I'm more than willing to tell that story."

Meridian Mayor John Robert Smith said, "This board is not about allowing Amtrak to gasp for breath. It's about reinvigorating this system, and high-speed rail is not just a metropolitan solution; it is a solution also for my part of the country."

Secretary of Transportation Rodney Slater said, "We are delighted with the third quarter results and look to Amtrak as a vital element in our 21st-century transportation system. Last December, President Clinton signed the Amtrak Reform and Accountability Act of 1997 that provided Amtrak with the three things it needed to succeed -- freedom to operate like a business, financial resources necessary to rebuilt a railroad, and partnership with its employees." Referring to labor officials, Slater said, "When you think about their participation, you have, for the first time, basically everything that's always been needed."

The fourth board member, former Massachusetts Gov. Michael Dukakis, said, "In the Northeast Corridor, the kind of capital investment Congress has been kind enough to provide is going to create enormous new revenue." Dukakis, noting growing congestion at airports and on highways, said, "We're not going to double-deck them. Rail's the answer."

Amtrak's through Eagle-Sunset cars are now open for reservation through May 31, 1999.

The Surface Transportation Board issued its 424-page written decision on the Conrail takeover by Norfolk Southern and CSX. Lawsuits must be filed within 60 days from the issue date, July 23. Requests for board reconsideration are due August 12. Barring a successful challenge, the break-up could begin as early as August 22, but the acquiring railroads have said they will not act that fast. Rep. Jerrold Nadler (D.-N.Y.) is disappointed that the STB did not order competition east of the Hudson River. He said he was preparing a lawsuit in the federal appeals court in New York and will separately ask the STB to reopen the case. He wants the break-up delayed by up to a year so that the city can continue its talks with the railroads.