Hotline #205 - August 24, 2001

The White House on August 22 released a very tight budget forecast for the next five years, as reported here last week. The Washington Post said the White House is forecasting a surplus of $158 billion for the current fiscal year (2001), which ends September 30 -- much lower than an April estimate of a $281 billion surplus, due to the tax cut ($40 billion), reduced tax revenues (due to the economy, $46 billion), delays in corporate taxes ($28 billion), and emergency spending ($9 billion).

Of the $158 billion projected surplus, all but $1 billion is from Social Security. Officials from both parties have pledged not to use the Social Security portion of the surplus for other programs, even though there is no legal ban on doing so and even though it has been done many times in the past.

Meanwhile, President Bush wants Congress to spend $39 billion over his original 2001 defense spending request, and to pass the defense and education appropriations bills before any other appropriations bills (like transportation), so that his budget priorities won't become tempting targets for cuts that could come later in the appropriations process.

What does this mean to railroad passengers? Between pledges to protect the Social Security surplus, shrinking budget surplus projections, calls for increased defense spending, and budgetary "firewalls" that protect highways and aviation no matter what, a difficult squeeze is materializing for unprotected, lower-priority domestic programs like Amtrak. The August 23 Post article says, in part, "But [Office of Management and Budget Director Mitchell] Daniels said aggressive efforts to clamp down on spending should free up funds. 'There will be ample room, particularly if we at last become proficient in Washington at redeploying funds from obsolete, nonperforming and duplicative programs to more important uses.'"

Does the Administration deem Amtrak/passenger rail as one of the "more important uses," or one of the "obsolete, nonperforming and duplicative programs?" Transportation Secretary Norman Mineta's June 5 comments to reporters -- the last Administration pronouncement on passenger rail that we're aware of -- that suggested a smaller Amtrak system, are not encouraging. Now is a good time to write to President Bush (Washington, DC 20500) and Secretary Mineta (Washington, DC 20590) and tell them a national passenger rail system and the High Speed Rail Investment Act are both important.

Work began August 20 on expanding the Charlotte Amtrak station on N. Tryon St. Seating will be expanded to about 125 in the $20,000 remodeling project, which should be completed before Thanksgiving, by expanding into vacant office space once used by Norfolk Southern. Amtrak and the State of North Carolina are sharing the cost. The station was built by the Southern in 1964, but could be replaced in a few years by an intermodal terminal being proposed on the site of the current Greyhound station.

In Martinez, Cal., a new Amtrak station now under construction may be opened September 22. The $5-million station is part of a $35-million intermodal terminal project. The present station, built in 1877, may be used for the Martinez Historical Society and a local theater group.

A report by the New York Senate Standing Committee on Transportation says Amtrak has neglected making safety improvements to the Penn Station tunnels in Manhattan, according to the New York Times. The report said, "It is clear that Amtrak has invested a great deal more effort in glamorous projects," like high-speed rail and the Farley station project. However, much of the funding for the projects in question has been earmarked to those projects, meaning Amtrak was not at liberty to unilaterally move the funding over to tunnel repair. Also, the Congressional mandate that Amtrak achieve operational self-sufficiency has meant that Amtrak has been under a great deal of pressure to invest in areas that cut costs and improve revenues, even if it maintains current safety features.

The report says that the tunnels themselves are structurally sound and in good repair, but that emergency and safety facilities are lacking. The article said Amtrak recently told the city fire department it would speed up installation of standpipes in the tunnels, and, in the event of an emergency, would provide rail carts to firefighters, so that firefighters would not have to run hoses in the same stairwells that passengers might use for evacuation. The report said that more federal money, earmarked to the tunnel, was needed.

The Ohio Association of Railroad Passengers reports that its first "Discover Rail Day" on August 18 was a success, and another one is planned September 15. The event was a group trip organized by OARP to show the public at large that passenger rail service exists in Ohio and that it has value. The first day had 220 participants, who rode from Toledo to Cleveland and back. The September 15 event will have the same itinerary.

An August 22 Associated Press wire story discussed the ways that Acela Express ridership and revenues have been a "disappointment," while acknowledging that only 11 of the total 20 Acela Express train sets are now in place. An Amtrak spokeswoman, Cecilia Cummings, said, "We concede that ridership fell below our forecast by about 6 percent, and revenues by about 3 percent. But when you look at the drop in business travel in general, we're claiming victory." It was not clear what span of time the figures were for, but, as we reported in the August newsletter, Northeast Corridor ridership, revenues, and passenger-miles were higher in June 2001 than June 2000. Still, a complete opinion on how Acela Express is performing really can't be formed until all service additions are in place.

One item in the story -- the addition of stops to one previously non-stop Acela Express Washington-New York round-trip -- got prominence without acknowledgement that the addition happened nearly four months ago (April 29). This particular item was picked up in some places by inattentive copy writers, who gave readers or listeners the false impression that all Acela Express service was being eliminated.