Hotline #157 - September 22, 2000

Chairman Bill Roth (R.-Del.) of the Senate Finance Committee on September 18 released his "chariman's mark" version of H.R.4923, the Senate version of the Community Renewal Act, that includes the text of S.1900, the Senate version of the High Speed Rail Investment Act. [Sponsorship of the rail bill -- so important to the future of passenger rail -- increased this week to 55 in the Senate and 159 in the House. See our web site for the full list.]

Committee discussion and approval vote (a "mark-up" session) was set for September 20, then postponed twice, and now may happen Wednesday, September 27. The reason for the postponement is the emergence of anti-Amtrak amendment(s) by member(s) of the Finance Committee. One would come from Gramm (R.-Tex.), stripping out all S.1900 language from the larger bill. Gramm and Commerce Chairman McCain (R.-Ariz.) wrote to Roth on September 18 in opposition to the S.1900 language -- through one Texas newspaper noted that Gramm's opposition could ultimately kill his own state's attempts to get a high-speed rail corridor designation for the Texarkana-San Antonio portion of the Texas Eagle route.

Ignoring strong demand by states for meaningful federal partnerships in funding passenger rail, the Gramm-McCain letter calls the bill "yet another bailout for Amtrak" and laments that the Commerce and Banking committees have not yet held hearings. (However, Commerce has scheduled an Amtrak hearing for September 26, the day before the Finance mark-up). Also -- no matter who operates passenger trains in the future -- capital funding will be needed. Pressure for this is growing, due in part to record problems in highway and aviation travel.

Another amendment that may be offered is from Baucus (D.-Mont.), who wants S.1900 to ensure that states will not gain flexibility to use TEA-21 federal surface transportation funds on intercity passenger rail. Congressional protests about such flexibility are usually put in terms of protecting the "sanctity" of the Highway Trust Fund, even though TEA-21 allows federal gasoline tax dollars to flow to virtually every other form of surface transportation. At any rate, as it has always been written, S.1900 uses no funds from the Highway Trust Fund.

At this time, we expect the Gramm amendment will be offered in the committee mark-up -- if your Senator is a Finance Committee member, please urge him right away to defeat any Gramm anti-rail amendment that may come up. See the Senate web site for a list of committee members; and see our web site for ways to contact them.

The status of a Baucus amendment is unclear at this moment, though we note that even as harmful as such an amendment would be, it may be essential to allowing S.1900 itself to advance. We will keep NARP members updated by e-mail as events unfold.

The Department of Transportation Office of Inspector General (OIG) on September 19 released its "2000 Assessment of Amtrak's Financial Performance and Requirements" (CR-2000-121). The report found that Amtrak would not meet its mandate to achieve operational self-sufficiency by 2003 without "major corrective action." It said that progress in revenues was not an issue so much as problems relating to growing expenses, and looked to Amtrak management to address this in greater detail in future business plans. Also, the report calls Amtrak's capital outlook "grave."

OIG calls on Amtrak to concentrate its limited resources on mandatory capital costs and operational reliability, rather than other projects such as those related to growth. However, Amtrak believes that growth projects are needed to increase revenues. The OIG in effect advocates that Amtrak increase spending in the Northeast Corridor and reduce spending elsewhere -- an approach that works against passage of the High Speed Rail Investment Act, making passenger rail's future capital outlook even worse.

The Associated Press has a question for the presidential candidates on Amtrak on September 18, as part of a regular series of issues questions. The question asked, "Should the federal government be spending more to help Amtrak expand intercity rail travel and develop high-speed corridors?" Here are the major candidates' full responses, in their own words:

Republican George W. Bush: "Our national railroad network, which helped build our country and is an important economic lifeline, is a crucial component of our public transportation system. I support a healthy intercity passenger rail system. I support current efforts to make Amtrak more efficient and competitive. I believe these efforts will result in better, more extensive and more reliant rail service for the millions of Americans who travel by train. As governor of Texas, I recognized the important service Amtrak provides and supported the continuation of the Texas Eagle."

Democrat Al Gore: "With growing congestion on our highways and airports, it's time to give the American people a fast and efficient alternative for traveling between our communities. High-speed rail reduces highway and airport congestion, improves air quality, stimulates the economy, and broadens the scope of personal choice for traveling between our communities. That is why, as part of my Energy Security and Environment Trust Fund, I am proposing a major commitment to build high-speed rail systems in major transportation corridors across the nation. As president, I will fight for new grants to Amtrak and the states for improving and expanding passenger rail routes and corridors. And I will work to secure funding to help communities improve rail stations -- to help rebuild these vital economic centers in cities and small towns across America."

The Amtrak Board of Directors, meeting in Washington on September 21, approved a resolution honoring the contribution to the passenger-rail cause of John R. Martin, the late President of NARP.

Amtrak's Coast Starlight and Pacific Surfliner, and Metrolink commuter trains, will have some disruption while Union Pacific does a tunnel repair job between Chatsworth and Simi Valley, Cal. The last Coast Starlights to run on their entire route will be those departing Seattle September 27 and Los Angeles September 29 -- then passengers will be bussed between Santa Barbara and Los Angeles through October 15. Pacific Surfliners that now run beyond Goleta will have a train set running between San Luis Obispo and Moorpark, then a bus from there to Chatsworth. Other Pacific Surfliners will be replaced with buses west of Chatsworth starting September 29.

Bill Strong, of Memphis, Tenn., has been appointed by the NARP Executive Committee to the vacant Region 5 (most of the southeast U.S.) position on the NARP board. Strong will fill out the remainder of the term of the late John R. Martin, who, in addition to being NARP President, was also a regional director.

The transit strike in Los Angeles ground on into its sixth day today. One Washington Post source persists in calling Los Angeles' heavy- and light-rail services "lightly used," even though mile-for-mile, Red Line ridership is as much as on the Washington Metro (and was even before the recent extension to North Hollywood). Metrolink commuter trains continue to run.