Hotline #244 - May 24, 2002

The Department of Transportation this week warned about possible attacks on railroad and transit systems. According to CNN.com, a DOT spokesman said a general threat was made against subway systems (no cities specified), and DOT expanded the advisory to include all railroads. CNN said the FBI did not put out a matching alert to law enforcement officials.

On May 22, Sen. Ernest Hollings (D.-S.C.) got the Senate Appropriations Committee to approve on a voice vote a $55 million Amtrak amendment to the emergency defense bill. The amendment has $12 million for security, $23 million for overhauls, and $20 million for wreck repairs. The full Senate is expected to take up the bill after Congress reconvenes June 3. It is possible that someone will offer a floor amendment to knock out this funding, so it is in order to alert senators to vote and work against any such amendment.

More than a quarter of the House -- 120 U.S. Representatives -- signed a letter urging House appropriations leaders to fund Amtrak at $1.975 billion in fiscal 2003. That's the amount in H.R.4545, the Amtrak authorization bill that the Subcommittee on Railroads (chaired by Jack Quinn, R.-N.Y.) approved May 8.

As clarification on H.R.4545, our May 10 hotline should have said the bill has $1.975 billion. This includes the $1.2 billion Amtrak requested for fiscal 2003, plus $400 million for life-safety work in the New York, Baltimore, and Washington tunnels, and $375 million for systemwide security. Also, language removed by the Railroads Subcommittee on May 8 would have given the Secretary of Transportation (and thus the Office of Management and Budget) a "super-veto" over Amtrak spending plans, and 30 days in which to exercise it. In other words, the Amtrak board could have approved a spending plan (with the DOT Secretary voting "yes"), and then the DOT Secretary -- after delaying action for up to 30 days -- could reject the spending plan in whole or in part. As we reported May 10, the Subcommittee opted in favor of requiring Amtrak to make certain reports to the DOT Inspector General and requiring the GAO to audit Amtrak's accounting practices.

H.R.2950, the RIDE-21 high-speed rail bill, still has aspects still to be worked out, in the wake of the May 8 Railroads Subcommittee mark-up. These aspects are "mostly labor-related," arising from a dispute that erupted between rail labor and the building trades. These two labor blocs finally agreed on language that then was unacceptable to the Association of American Railroads and Republican committee members. The language would require rail work done under the high-speed rail bond bill to be covered by the Railway Labor Act and Railroad Retirement Act. The freight railroads worry that if these laws apply to non-rail contractors that the freight railroads already deal with regularly, the next step would be an increase in costs to the freight railroads.

Nominally, the Committee postponed action at least until around June 12, but it is possible that no acceptable agreement will be reached this year. Chairman Don Young (R.-Alaska) has indicated that he will not move the Amtrak bill unless and until the high-speed rail bill also is ready to move. Amtrak could get appropriated funds without an authorization, but a failure to enact H.R.2950 would leave states and high-speed rail suppliers in the lurch for the third straight year. All members need to hear from home about the importance of getting these bills passed in June.

Amtrak President David Gunn sent a message to Amtrak employees on May 21. It said, in part, "During my first few days on the property I've had the opportunity to meet many employees. I've been on trains, in terminals, crew quarters and of course our headquarters. It's clear to me that most of you know that Amtrak faces enormous challenges. You understand the importance of your role in making this railroad run well and serving our customers. You also know that without the proper tools and support your jobs become very difficult.

"I believe you have the right to expect straight talk from me. We no longer have the time or the luxury to engage in pleasant but non-specific dialogue.

"I am committed to a national railroad passenger system, which includes the corridor, commuter and intercity services. I will not participate in the dismemberment of our company. I will fight to keep us whole. I am committed to restoring the existing system to a state of good repair as a first priority. I am committed to an efficient, high-quality service. I will create a lean, competent management, responsive to our funders, you and our passengers. I will ask that all of us review processes, work methods and procedures to increase efficiency. We will not be self-sufficient, but we must increase our cost recovery.

"Among the many good wishes that I received from you, one stands out in my mind:  a Boston crewman said, 'I will pray for you;' not because my personal success is important -- it is Amtrak's future that is at stake. I ask for your support. I will make mistakes. The problems we face are complex. However, my job is to serve you and our passengers. I am committed to that goal. I believe I know how to manage the railroad. I know you know how to run a railroad and to provide good service. Together, we can succeed."

The New York legislature approved a 2002-03 budget on May 16, but did not include a tax measure proposed by Governor Pataki that would have led to passenger-rail improvements in the state. The proposal would have, over seven years, phased in a 45% property tax reduction for railroads. CSX, which owns much of the track used by Amtrak in New York State, has said that it pays a disproportionate share of its systemwide property taxes in that state -- 7% of CSX's network is in New York, but that state gets 31% of the taxes CSX pays. As a result, CSX is keeping on hold many capital improvements that would benefit passenger trains, but which would -- if implemented -- increase CSX's tax bill. CSX is considering a federal lawsuit against the state.

The Houston Chronicle reported on May 23, "Houston's Amtrak station will be closed during the Memorial Day weekend because its two attendants are taking holiday time off." The report quoted agent Martha Landa saying passengers "will just have to wait outside." Actually, the station will be open Saturday, Sunday, and Monday. It is not clear at this point whether there will be ticket sales on Sunday, but all expected passengers have been ticketed, and train crews make reasonable attempts to accommodate those who show up without tickets.

Amtrak and New Jersey Transit recently agreed to a five-year process under which, when NJT gets new equipment, NJT will take over operation of some of the Amtrak New York-Philadelphia trains (Clockers), as well as a new financial agreement -- already in effect -- which covers these trains and benefits Amtrak.