Hotline #129 - March 10, 2000

Last week, we reported on a three-year aviation reauthorization bill that is likely to increase aviation spending from $10 billion to $12.7 billion next year. The Senate approved it on March 8, on a lopsided 82-17 vote, with easy House passage and Presidential approval expected. This makes it even more essential for the Budget Committees to provide much higher allocations for fiscal 2001 transportation programs -- or it will be difficult or impossible for the appropriators to fund "non-protected" programs like Amtrak, the Coast Guard, and the National Transportation Safety Board.

Sen. Frank Lautenberg (D.-N.J.) opposed the bill. He said conferees in effect were saying, "Aviation proceed, and the rest of the budget be damned." At a March 9 hearing (below), he said, "This bill is misguided and, I believe, over time, the Members will discover their mistake."

The Senate Transportation Appropriations Subcommittee held a hearing March 9 on fiscal 2001 transportation funding issues, with Amtrak the main focus. Chairman Richard Shelby (R.-Ala.) complained that over $23 billion has been spent on Amtrak during its nearly 30-year history and that Amtrak likely would ask for even more capital funding in the future, whether or not it achieves "operational self-sufficiency." Shelby asked, "When do we begin damage control? When do we back away from the cliff, and start to show some fiscal responsibility with the taxpayers' money?"

But Senator Lautenberg, the ranking Democrat, warned against "looking at Amtrak without looking at what we spend on other modes." He said that $85 billion in federal funds have been spent on aviation alone in the last decade, but that "no matter what we put into the aviation system, if we think we can put unlimited numbers of people into the air without any problems, we're kidding ourselves." He said too much airspace is used by short-haul flights in markets "that would better be served by high-speed rail." Because he is retiring this year, Lautenberg said this likely was his last Amtrak hearing.

Also discussed was Amtrak's recent National Growth Strategy. Shelby complained it had no route eliminations, claiming an analysis with network growth was "against this Committee's intent." Slade Gorton (R.-Wash.) said it was "very difficult" for him to see a need for long-distance trains. Robert Bennett (R.-Utah) agreed, but was "delighted" to learn about Amtrak's efforts to compete with trucks by carrying more mail and express. Wisconsin Governor and Amtrak Board Chairman Tommy Thompson (R.) responded that past efforts by Amtrak to "shrink to profitability" failed because there were still fixed costs "unless you eliminate the entire system." He said growth strategy actions would improve Amtrak's bottom line by $65 million.

The Senate has again postponed a vote on S.1144, the bill allowing states to spend some of their federal transportation funds on passenger rail. The Senate is out of session until March 20. Delays evidently relate to an anti-passenger-rail amendment that could pass, so it's important to tell your Senator that this bill is important to you. The amendment could be offered by Christopher Bond (R.-Mo.).

Amtrak on March 3 announced it was settling a racial discrimination lawsuit for $16 million in damages and promises to change related personnel policies. The suit was brought by 13 black members of the Brotherhood of Maintenance of Way Employes on the Northeast Corridor. The suit alleged, among other things, that black and white employees were separated into work crews by race, with the white crews given better assignments and protection from being "bumped" by more senior black employees. While Amtrak admitted no wrongdoing in the settlement, President George Warrington said it was the right thing to do and made good business sense.

Pending appropriations bills in both houses of the state legislature in Washington include $500,000 to help Amtrak ship fruit out of the state in refrigerated cars.

The Oklahoma Senate approved Senate Joint Resolution 37 on March 6, 39-8. This bill would put a question on the November state ballot asking voters whether to finance expanded passenger-rail service in Oklahoma (and continue the Heartland Flyer) with a one-cent gas-tax increase. The bill still needs House approval -- a similar bill passed by the Senate last year died in a House committee.

The Sierra Club is looking for a November ballot issue in Denver for an extra 0.0005% city sales tax to go for diesel commuter service between Union Station and the airport.

A new group called the Floridians for 21st Century Travel Connections and Choices has gathered 63,000 signatures (of the half-million needed by August 3) to put an issue on the November state ballot in favor of high-speed rail in Florida. The group is backed by a wealthy, retired Lakeland businessman and Republican Party activist, C. C. "Doc" Dockery. He was chairman of the Florida High Speed Rail Commission in the 1980's. More recent plans for high-speed rail were killed by Gov. Jeb Bush (R.) in January 1999.