Hotline #183 - March 23, 2001

The House Transportation Appropriations Subcommittee held its hearing on fiscal 2002 Amtrak funding on March 21, presided by the new chairman, Harold Rogers (R.-southeast Ky.). Witnesses were Amtrak President George Warrington, DOT Inspector General Ken Mead, and Phyllis Scheinberg of the General Accounting Office. The overall tone was rather negative. Many questions properly focused on Amtrak's ability to comply with the statutory operational self-sufficiency mandate. But questions and comments from some subcommittee members (including the chair) and the GAO made much about the profitability of trains when that is not expected of highways or airports. Much also was made of the "billions" needed to develop rail corridors, as if "billions" also won't also be requested for highways and airports in the future. And much was made of Amtrak's puny market share without discussion of its puny funding.

Amtrak President George Warrington made a sincere effort to provide some balance, noting the rail renaissance now underway. He said he would not identify a couple long-distance routes to be sacrificed in the name of budget cutting -- "My focus is on attacking [modernizing] business systems in the company ... I can leverage our assets and other income to cross-subsidize critical passenger services that by nature won't cover all their costs, and so not need a federal operating grant overall."

The Amtrak Reform Council issued its second annual report on March 20. The report states, "The Council believes a secure, long-term source of funding is needed to fund an effectively-structured national rail passenger system." However, this observation comes at the end of a long paragraph otherwise devoted to recommending a near-total restructuring of how rail passenger service is delivered in the U.S. The Council thinks Amtrak's "poor performance is due to fundamental institutional flaws, and not to Amtrak's Board of Directors, managers, or employees."

The report says restructuring can only work "if appropriate and adequate funding is available." However, if the ARC is able to launch a big restructuring debate, this could take the spotlight away from the critical -- and tough -- problem of securing the needed funding. It is not clear that a restructuring alone will cause Congress to open up its purse strings. Tight spending "lids" and firewalls protecting most other transportation spending are the real major obstacles to more rail funding today. The ARC plans hearings on its report, and hopes it also will receive consideration at Congressional hearings on Amtrak.

The ARC report got a cool reception at the March 21 House hearing. Warrington, Mead, and Scheinberg all agreed that the restructuring recommendations were premature, absent clearer direction (presumably from Congress) on the size of the nation's passenger rail network and the funding to be provided.

About 200 business leaders and others interested in better passenger rail attended a conference in Charlotte on March 19, sponsored by the Southeastern Economic Alliance -- made up of 13 Chambers of Commerce from across the Southeast. Among the speakers were South Carolina Governor Jim Hodges (D.), Senator Max Cleland (D.-Ga.), and Bank of America President Hugh McColl, who said building highways alone hasn't relieved congestion -- "You simply invite more people to the party." The participants support passage of the High Speed Rail Investment Act as a means to attract investment to the several corridors that cross the Southeast, thereby spurring economic development and providing an alternative to congested highways and airports.

The newest co-sponsor of the High Speed Rail Investment Act, S.250, is George Allen (R-Va.), but the total is still 52 because Max Baucus (D.-Mont.) dropped off, at least for now.

One passenger was killed when the westbound California Zephyr derailed shortly before midnight March 17 near Nodaway, Ia. There were 85 passenger and 11 crew injuries. Investigators are concentrating on fragments of broken rail found at the accident. The train derailed where a rail defect was detected last month and where a temporary patch had been installed. The patch was to be replaced with a new length of rail soon. Burlington Northern Santa Fe inspects the line visually at least three times a week, and with ultrasound equipment monthly. Both locomotives and 11 of 16 cars derailed, several overturning; the five mail/express cars at the end of the train did not derail.

The Florida Senate Transportation Committee passed a bill March 22 to spend $8 million to create a High Speed Rail Authority to start preliminary work on the high-speed rail system that was approved as a constitutional amendment by voters last fall. Also, a House committee approved a bill to create a commission to study financing options. U.S. Rep. John Mica (R.-Fla.), member of the House Railroads Subcommittee, said he expected the federal government to provide $5-8 million toward any preliminary efforts.

A bill in Colorado, HB-1329, that would have helped non-highway forms of transportation was rejected by the House Appropriations Committee on a 7-6 vote. The bill would have asked voters this fall to approve use of $1.325 billion over ten years in surplus tax revenue for rail, bus, bicycle, and pedestrian projects.

Amtrak has announced a 25% discount on rail fares through June 15. It is for individual passengers, unlike most "companion" discounts. It is not combinable with most other discounts, but can be combined with the Explore America fare. It is nonrefundable and blacked out around Easter and Memorial Day.

A note of caution is in order for those booking Amtrak's "1-2-Free" fare, mentioned here on March 2. While Amtrak promotional materials mention the possibility of "weekend trips," the fare does not apply to peak "YOFC/YOSJ" fares. On Friday-Saturday-Sunday on Michigan services and Friday and Sunday on Northeast Corridor, New York, and Vermont services, those peak fares generally apply and thus makes the "1-2-Free" fare invalid for most weekend travel in those areas.

Track work in Metro North territory will force an Empire Corridor schedule change from April 1 to June 8. New York-Albany trip times will be 10-15 minutes longer, trains 236 and 295 are annulled (April 29-June 8 only), and the Adirondack will have a separate weekend schedule in both directions.