Hotline #229 - February 8, 2002

As expected, the Bush Administration's budget for fiscal 2003, released February 4, contains $521 million for Amtrak. The amount was characterized as a "placeholder" figure, pending further discussions within the Administration about passenger rail reauthorization during 2002. Unfortunately, the budget message accompanying the figures unnecessarily took cheap shots at Amtrak, its performance historically, and proposed high-speed rail bond bills -- without saying how the Administration would have handled things differently for the past 30 years. To see a letter to Transportation Secretary Norman Mineta about the budget narrative, click here.

As reported last week, Amtrak says it believes that the current system cannot be operated on a federal grant of $521 million. It is calling for $1.2 billion in fiscal 2003.

The Senate Transportation Appropriations Subcommittee held a hearing February 7 on transportation funding in fiscal 2003; the lead witness was Deputy Secretary Michael Jackson. Chairman Patty Murray (D.-Wash.) referred to Amtrak's budget request of $1.2 billion, and asked what reforms the Administration would propose that would allow Amtrak to survive at a level of $521 million. Jackson answered that "our policy challenge is to figure out what we need and how to pay for it." Ranking Republican Richard Shelby (Ala.) considered even the $521 million too high, saying that it was time to end "that drain on our taxes" and "start doing something that makes sense" (without saying what that was). Shelby followed that up with a call for more highway funding.

The Bush budget includes a total of $59.3 billion in transportation spending in 2003. In other rail areas, this includes $20 million for the Penn Station/Farley project in Manhattan (same as this year), and $23 million for high-speed rail corridor development and planning (down from $32.3 million this year). Transit would get $7.23 billion, an increase of 5.2%. Aviation would get $14.0 billion, which is basically flat from 2002 (not counting the $5 billion in emergency cash given to the airlines last fall).

A major area of contention will be highway funding, which is proposed to drop from $33 billion in 2002 to $24 billion. That's because of a part of the highway budget -- called "Revenue Aligned Budget Authority" or RABA -- created by the TEA-21 surface transportation law. In years of a boom economy, RABA takes gas-tax revenues that are larger than what TEA-21 predicted and puts them into highways. In a slack economy (like now), when gas-tax receipts are depressed, RABA works in reverse, lowering highway spending below the TEA-21 predictions. Leaders of the House and Senate authorizing committees have begun a "full court press" to block the $9 billion reduction.

The Amtrak Reform Council performed its last official act on February 7 and approved a restructuring plan for Amtrak. As expected, the plan proposed making three new entities out of Amtrak. First would be a government agency with planning and funding functions (for both other entities), and, possibly later, responsibility for franchising train operations. It also would hold Amtrak's current statutory right of access to freight railroads -- though the railroads have made clear they want to deal with one Amtrak, not several, and they presumably would have the legislative muscle to make that wish stick. Second would be a government corporation responsible for Northeast Corridor dispatching, maintenance, and implementing capital improvements. Some or all of its functions could be franchised out at a later time.

Third would be an operations company or agency. The operating part of today's Amtrak would be the sole operations company, operating trains under contract terms set out by the planning agency and by states (for short-distance routes). It would be the sole operator until such time a competitive bidding process (if any) was in place. "Competitive" does not mean competition that a consumer would see, but would be more like the British model (or cable television) -- franchisees would compete to have their proposals accepted, then the successful franchisee would become the monopoly operator of a given service. That said, franchises would be time-limited.

The plan says that after a 2-5 year transition period, federal operating funding would be limited to long-distance trains, and that states should provide operating funding for short-distance routes (for those that need it). The plan envisions the amount of funding needed for long-distance trains to be reduced over time by the operating company striving to meet the contract terms laid out by the planning agency, and/or by potential franchisees underbidding one another for the right to operate a given long-distance train.

The most useful facet of the ARC's work is an admission that passenger rail services cost money to develop, maintain, and operate. NARP has consistently said that the American government can't expect to "get something for nothing" by claiming that the private sector alone can handle rail -- even as the government does everything in its power to convince people to "choose" flying and driving, through its massive highway and aviation programs. However, the ARC leaves the responsibility of deciding how big a system to operate and fund to Congress.

The House Transportation and Infrastructure Committee plans three hearings on intercity passenger rail. The first will be February 14; all ARC members have been invited as witnesses. At a March 6 hearing, the strengths and weaknesses of the 1997 law would be discussed.

The National Transportation Safety Board, in a meeting on February 5, formally determined a probable cause for the City of New Orleans grade-crossing accident at Bourbonnais, Ill., on March 15, 1999. The Board found that the probable cause was "the truck driver's inappropriate response to the grade crossing devices and his judgment, likely impaired by fatigue, that he could cross the tracks before the arrival of the train." An abstract of the Board's findings -- a final report will be issued later -- includes recommendations to railroads to include event recorders on new or upgraded crossings that indicate gate position, and to Amtrak to emphasize to emergency responders that accidents can involve "large quantities of burning diesel fuel."

A loaded steel truck drove in front of the train, which then struck the truck. The train derailed, caught fire, and 11 passengers were killed -- the only ones to die in a grade-crossing accident in Amtrak's history. According to a wire story last week, a report by the Illinois State Police said that in its analysis, the crossing gates were not working properly, and that the truck driver did not try to go around them (but did go through the flashing lights). The Board, however, determined that the gates "likely lowered as designed as the accident truck approached the crossing."

A new intermodal station opened in Everett, Wash., on February 5. It is currently served by Greyhound, Northwestern Trailways, and local transit -- Amtrak will move in this summer and Sounder commuter trains will begin service there in 2003. The station is located at 3201 Smith Ave., and features a career development center on its upper floors.

Adirondack service will be interrupted for a track work project on Canadian Pacific. On February 19-20-21, buses will replace the train north of Albany. Checked baggage will be handled normally, but bicycles traveling north of Albany those days will have to be boxed.

Similarly, a track work project on CSX will disrupt Sunset Limited service. Trains originating in Orlando on March 17 and 19 will originate in New Orleans instead (on March 18 and 20). Trains originating in Los Angeles on March 15 and 17 will run to New Orleans only. Amtrak is not offering alternative transportation in this case.

Kenosha Transit shut down its streetcar service on February 6, in anticipation of a proposed state budget that would sharply cut state aid to Wisconsin municipalities. The line may reopen late in May. Ridership on the line has been minimal, especially in the winter. The line goes from the Metral commuter rail station, through Kenosha's depressed central business district, to a lakeside area that is slated for development. But until the development occurs, there are few riders for the streetcars.