Hotline #76 - March 5, 1999

The annual hearing on Amtrak funding in the House Transportation Appropriations Subcommittee, chaired by Frank Wolf (R.-Va.), was yesterday. The witnesses were Amtrak President George Warrington, Federal Railroad Administrator Jolene Molitoris, and DOT Inspector General Kenneth Mead. The hearing was upbeat, with Wolf saying is was the best presentation he had ever seen from Amtrak. He said, "I'm impressed with what you are doing. It's one thing to fund bad service, it's quite another to have quality service with friendly personnel." Wolf regularly visits his daughter in New York and evidently has noted an improvement in service quality.

Warrington was confident that Amtrak would reach operational self-sufficiency by the end of 2002. He said that Amtrak would need significant capital funding beyond that, like other modes get. Wolf seemed to agree, saying, "Everyone should know there is going to be a subsidy for a long time." He said he would do everything possible to get Amtrak the $571 million and he urged the Administration to work out budget scoring issues.

Amtrak says it has adequate capital for the next few years, but that there will be a $47 million cash shortfall next year if the company can't spend its appropriated funds on maintenance-of-way and of equipment. In 1999, Amtrak plans to spend 79% of such funds on maintenance items, 63% in 2000, and less in following years.

Meanwhile, despite Wolf's good intentions, full funding of Amtrak may be impossible. This is because of the combined impact of TEA-21's highway and transit spending guarantees, and a decision this week by Republican leaders not to seek an increase in budget caps established in 1997 -- even as they increase spending on defense and education, and cut taxes. Many people believe the caps must eventually be lifted for Congress to write a budget that can pass, but this will require the White House to hold firm throughout the process.

Another Amtrak funding hearing will be on March 10, in the Senate Transportation Appropriations Subcommittee, chaired by Richard Shelby (R.-Ala.). Amtrak board chairman and Wisconsin Gov. Tommy Thompson will testify.

The locomotive of an Amtrak Cascade train derailed at Castle Rock, Wash., after hitting a mud slide, on February 28. The train's new Talgo equipment was not damaged, but Amtrak service between Seattle and Portland was annulled for a couple of days. Also, Amtrak service between Seattle and Everett was canceled for one day because of imminent threat of a mud slide.

A May start-up date for Amtrak service between Fort Worth and Oklahoma City could slip, according to the Daily Oklahoman (March 2). We understand, however, that Amtrak is still prepared to start an Oklahoma City-Fort Worth service in mid-May, as initially requested by the state.

Thanks to the efforts of Missouri State Rep. Joan Bray, the Missouri House Budget Committee yesterday restored the governor's full request of $6.2 million for Amtrak. Earlier, the House Appropriations Committee had cut the figure down to $5 million. Next steps are the House floor and then the Senate, where there is a new appropriations chairman, and continued pressure is needed.

Sleeping cars will be added to the Three Rivers on April 1, and the space is already available for sale. There will be one refurbished Heritage sleeping car per train.

Some details of an Empire Corridor schedule change April 11 are now known. There will be a 12th Albany train. The northbound Adirondack will run two hours earlier than it does now, for better Montreal connections -- but worse connections from south of New York. The westbound Lake Shore Limited will leave New York about two hours earlier, providing a better time there, but a worse time at Cleveland. Still, it will provide more reliable connections at Chicago.