Hotline #62 - November 27, 1998

The Administration is already working on its fiscal 2000 budget. This will be another tough year for programs like intercity passenger rail that are outside so-called firewalls. Last year, the Administration promised $571 million for Amtrak in fiscal 2000. For high-speed rail, authorized levels for 2000 are $15 million for grade crossing work and $10 million for planning. Call or e-mail the President quickly and ask for full funding of Amtrak and high-speed rail in 2000. The White House comments numbers is 202/456-1111. The White House e-mail address can be found on the NARP web site.

The Amtrak Reform Council met November 24 and decided to interview and hire for the position of executive director, who would be a temporary federal employee. They heard a report from Joe Bress, Amtrak's Labor Relations vice president. He said Amtrak was negotiating with a private company to take over the commissaries; Amtrak has offered $35,000 in buy-outs to affected employees. Referring to Amtrak's acting president, Council Member Clarence Monin, president of the Brotherhood of Locomotive Engineers, said, "I have a lot of confidence in George Warrington. He's a hands-on guy."

Council member Joe Vranich said Amtrak's total losses jumped $61 million (or 8%) from 1997 to the 1998 level of $823 million. But this includes non-cash expenses, primarily depreciation. Non-cash expenses rose 21% to about $300 million. In fiscal 2002, when Amtrak projects it will meet the test for self-sufficiency, Amtrak says its total lose will be $752 million, of which $487 million will be non-cash expenses, $185 million excess mandatory railroad retirement and unemployment payments, and $80 million capital for progressive equipment overhauls. So the mountain Amtrak must climb is smaller than many think. Thus, Federal Railroad Administrator Jolene Molitoris' statement of concern that fellow Council members "talk too much about what we're going to do when Amtrak fails." Paul Weyrich said high-speed rail's performance will play a key role in Council projections of whether Amtrak is going to hit its target. Molitoris said mail has great potential.

After the Council met privately with DOT Inspector General Ken Mead, Weyrich said Mead's report on Amtrak, along with Amtrak's comments, would be released December 1.

The leadership of the United Transportation Union and the Brotherhood of Locomotive Engineers on November 23 agreed to merge and form a new North American Rail and Transportation Union. The plan must be ratified by 90,000 active members in the U.S. and Canada.

There will be ceremonies along the Cascade Corridor on November 30 to inaugurate the new Talgo train sets. However, due to a delay in delivery of some on-board components, start of revenue service for the three new train sets will come later in December. The ceremonies are at Bellingham at 12:15 pm, Mount Vernon at 1:00 pm, Seattle at 8:30 am, Olympia at 10:25 am, Centralia at 10:45 am, Portland at 12:45 pm, and Eugene at 4:30 pm.

DOT Secretary Rodney Slater, Amtrak officials, and state officials from four states -- Virginia, Georgia, North Carolina, and South Carolina -- will meet in Charlotte on December 1 to discuss high-speed rail matters in the Southeast.