Hotline #204 - August 17, 2001

Storm clouds may be brewing over funding for federal discretionary programs -- like passenger rail -- as the White House takes assessment of the current status of the federal budget surplus and begins outlining its funding request for fiscal 2003. Indeed, if the picture is bleak enough, it could even lead to calls to cut funding that's currently pending in the 2002 appropriations bills. Something similar happened a year ago, in the fall of 2000, as Congress was considering funding bills for this fiscal year (2001), when Amtrak and other discretionary programs got nicked by 0.22%. That meant Amtrak got $520.4 million in 2001, instead of $521.5 million. If appropriators are tempted to cut programs again this year to reflect new information on the budget surplus, it's not known how big the cut would be.

As reported in today's Washington Post, the White House anticipates a sharp plunge in the federal budget surplus, and does not want to cut into Social Security funds -- which may make up nearly all that will remain of the surplus -- to fund discretionary programs. Officials of both parties are waiting to see if a forecast from the Congressional Budget Office later this month will support that outlook.

According to a chart in the Post story, the two biggest factors in the expected drop in the budget surplus are (in roughly equal measure) President Bush's tax cut and reduced tax revenues due to the economic situation. Whatever the cause, any reduction in available funding for discretionary programs is potentially bad news for Amtrak and passenger rail, which don't have the budgetary firewall protections afforded highway and transit programs by TEA-21 and aviation programs by AIR-21.

Prospects for saving Empire Builder service in northeast North Dakota improved this week, as a wire story reported that Burlington Northern Santa Fe has agreed to help pay for raising 14 miles of track west of the city of Devils Lake. The lake itself, which has no natural outlet, has been rising steadily for several years, and is perilously close to the railroad line. The governor's office said that the amount BNSF would contribute was still being discussed, but that it might be $1.4 million or more, of a total of $2.4 million. BNSF said in the spring that it was not interested in contributing because it could reroute its freight trains, and that the costs were a public responsibility since Amtrak and the towns that would otherwise lose Amtrak service would be the main beneficiaries.

For the second time, Amtrak has extended its 30th Anniversary Fare, now available for sale through November 16 and travel through December 14 (except September 1-3, November 20-27). The fare is not automatically offered by agents; you have to ask about its availability, and reserve at least seven days ahead of travel.

Amtrak's office in the San Francisco Ferry Building was closed temporarily August 9 due to "unanticipated emergency construction." Those riding a Thruway bus from there to Emeryville or Oakland will be allowed to board without a ticket at the same curbside location.

Two Union Pacific derailments in Texas early this week tied up the Texas Eagle for a couple days. One was between Texarkana and Marshall, which forced a detour for a couple days via Gilmer (the route of the now-defunct split-directional running), and another was between Dallas and Fort Worth.

A draft environmental statement on Washington-Charlotte high-speed rail has been released by state rail agencies in Virginia and North Carolina. Virginia plans further public hearings on the proposal, at Fredericksburg (September 13), South Hill (September 20), Springfield (October 11), Emporia (October 25), Richmond (November 7), and Petersburg (November 8).

The Coast Starlight schedule will change August 26, as we reported here a week ago. At that time, Amtrak West planned to discontinue a stop at Davis effective September 30. Davis has the second-lowest boardings for that train, and is also served by the California Zephyr and several Capitol Corridor trains. However, Amtrak West President Gil Mallery met with community leaders August 15 and told them the stop would not be discontinued. He congratulated them for the work they have done over the years to improve the Davis station and he hoped that they could all work together on issues that would improve train service there in general. Mayor Ken Wagstaff said he would like to hold a meeting in early October for officials, Amtrak, and the public to discuss issues relating to the Coast Starlight, including on-time performance.

Prospects for a proposed Chicago-Des Moines Amtrak service got dimmer this week as President George Warrington told a group of legislators in Springfield, Ill., that it is not likely to happen. An Amtrak spokesman later said that Amtrak's focus is restructuring and "putting our financial situation in order, continuing to do the things we need to do to reach the Congressional mandate" on operational self-sufficiency.

The proposal was one of several made in the Network Growth Strategy that Amtrak released in February 2000. However, no additions or changes resulting from those proposals have been implemented since May 2000. Delays and reverses have resulted from various causes. Inability to reach an operating agreement with the host railroad has made the Skyline Connection idea dormant. Absence of connecting express from the Skyline Connection and a refocus on Amtrak's part on longer-distance express business have killed the Janesville train (set to end September 22), were a likely factor in killing the Des Moines proposal, and make the Fond du Lac proposal increasingly unlikely.

Proposals that make greater sense from a passenger point-of-view (not just express) are still active, but have also faced delays resulting from lengthy negotiations with freight railroads and the need to seek sources of capital funding. These include the Meridian-Fort Worth and Jacksonville-Miami proposals.