Hotline #250 - July 5, 2002

Congress returns from its Independence Day recess on July 9. It has less than three weeks to come up with the $100 million or more needed to keep Amtrak running through this fiscal year (September 30). The June 28 loan guarantee agreement between Amtrak and the Bush Administration provides $100 million to help close Amtrak's fiscal 2002 cash gap of $205 million. The agreement postponed an Amtrak shutdown (that would have happened right now) to mid-August. Congress won't be in session then -- the House adjourns July 26, and the Senate August 2. However, statements from key legislators suggest that chances are good for working out a solution.

There are two basic approaches in play as Congress returns. One is an attempt to increase the funding for Amtrak in the pending emergency supplemental appropriations bill, H.R.4775. As we reported last week, negotiators on that bill, which is in a conference committee, seem to agree on including $205 million for Amtrak. The major benefit of this approach is that Amtrak would not have to pay back a loan out of 2003's appropriation.

Another approach would be for Congress to direct the Secretary of Transportation to provide another loan to Amtrak.

Urge your Senators and Representatives to act quickly on closing the rest of Amtrak's cash gap, and prevent a shutdown of service in August. Click here for ways to contact them.

Details on the 12 terms of the June 28 loan agreement have become available. The $100 million is payable November 15 (not November 22, as we reported last week). One condition is that by August 1, Amtrak must provide the Department of Transportation with a "detailed report on all operating relationships between Amtrak and commuter rail systems, including a concise inventory of such relationships on a state-by-state basis. The report should explain the manner and extent to which any suspension of Amtrak operations would affect commuter rail operations." Presumably, the Administration assumes another Amtrak shutdown is possible and is trying to collect data that would help limit the disruption to "just" Amtrak trains.

We reported last week that Amtrak could not spend any money planning service increases, through September 30, 2003. Actually, DOT can approve such expenditures, but it is still unclear what that means to places like Nevada and Florida that were planning service expansions with Amtrak during that time period.

The Department of Transportation on July 3 released $76.7 million in tunnel improvement money to Amtrak. The money was part of $100 million granted to Amtrak as part of the fiscal 2002 defense appropriations bill (the final version of which was approved by both houses December 20, and signed by the president January 10). The money that was released this week is to go towards addressing fire and life-safety issues in the Amtrak tunnels serving Penn Station in Manhattan. The remaining $23.3 million will be released to Amtrak during fiscal 2003.

The Bush Administration will seek to reverse public policy that provides some parity between highways and transit, when it proposes its replacement legislation for TEA-21, which expires next year. Federal Transit Administrator Jenna Dorn has told the House Transportation and Infrastructure Committee that the Administration favors limiting the federal match for transit projects to 50%, while keeping the federal match for highway projects at 80%.

Prior to the landmark ISTEA legislation of 1991, the federal match for transit projects was 60% -- and 80% for highways, 90% for interstate highways. ISTEA leveled the three programs to 80%. That and an increase in available funding overall account for the flowering of transit projects since then. The Administration claims that cutting the federal match back to pre-1991 levels will provide more money to more transit projects. But its real impact will be to make it simpler for states and localities to choose highway projects over transit projects -- a great step backward in federal transportation policy.

Even more bad news for transit is that state and local budget crises are leading to fare hikes. A July 4 Pittsburgh Post-Gazette editorial, "Transit freeze: Higher bus fares begin in Harrisburg," says state operating assistance to transit rose only 1.2% annually under Governors Ridge and Schweiker, vs. "4.9% annually the previous 10 years." Two Pittsburgh fare increases (the second comes September 1) mean "40% in 17 months, a stiffer increase than riders should have to bear."

The Daily Oklahoman reported June 29 that on June 28 the Central Oklahoma Transportation and Parking Authority approved bus fare increases and route cuts for Oklahoma City, where "public transit took the second-largest hit in the city's budget." And the July 4 New York Times has a story, "Mayor Acknowledges M.T.A. May Have to Raise Fares in '03." The article says Gov. Pataki is campaigning on holding subway and bus fares at $1.50 but quotes John Kaehny of Transportation Alternatives: "The universal consensus among people who follow this is that there will be a fare hike immediately after the gubernatorial election."

Amtrak Downeaster trains begin seasonal service to Old Orchard Beach, Me., July 12.

All Thruway bus services in South Carolina were eliminated on June 30, when the contract carrier, Pee Dee Transit, ceased operations. This impacts the Florence-Myrtle Beach and Florence-Camden-Columbia-Spartanburg-Greenville routes. No alternative transportation is being offered for Amtrak passengers currently holding tickets on these routes, except Greyhound will honor Myrtle Beach tickets (via Rocky Mount, N.C.).

Starting tomorrow, there will be no weekend Caltrain commuter rail service for two years. This is to make way for the single, biggest construction project on the San Francisco-San Jose rail line since it opened in 1863. The "CTX" program will add track capacity, add computerized signals and switches, upgrade grade crossings, connect with BART at Millbrae, and cost $110 million. It will then allow "baby bullet" express trains to connect the two cities in a little over half of today's travel time. During the project, there will be express replacement bus service, stopping only at San Francisco, Hillsdale (San Mateo), Palo Alto, and San Jose, plus bus service to weekend Giants games.

Delaware DOT and the Delaware Transit Corporation will sponsor the 11th annual "Rail to the Fair" train, on July 20. A special Amtrak train will run from Philadelphia to the state fair in Harrington, with stops at Claymont, Wilmington, Churchmans Crossing, Newark, Middletown, and Dover. Passengers have the option of staying on the train and riding to Frankford and back. More information is at 800/652-DART (302/652-DART within Delaware).