Hotline #277 - January 10, 2003

This week, the House and Senate passed the sixth continuing resolution, this one good through January 31. As before, Amtrak is funded at an annual rate of $1.04 billion. Continuing resolutions have been necessary because the last (107th) Congress failed to pass 11 of the 13 appropriations bills, including for transportation.

However, Republican leaders hope to have an omnibus 2003 appropriations bill -- good through September 30 -- in place before President Bush's January 28 State of the Union address. These leaders have accepted President Bush's spending ceilings (including $316 billion on domestic discretionary programs), which means they are looking for $9.8 billion to cut from bills pending before the Senate in 2002. However, Associated Press yesterday said that "even" House Appropriations Chairman C. W. Bill Young (R.-Fla.) and his incoming Senate counterpart, Ted Stevens (R.-Alaska), hope "to get White House support to add some funds to the package, including $825 million for the costs of battling last summer's wildfires."

Associated Press also said Republican leaders agreed to cut one-third of the $1.2 billion the Senate Appropriations Committee approved last year for Amtrak. This implies an $800 million level, much closer to the $762 million the House committee approved last year, than to either the old Senate committee's $1.2 billion or the continuing resolution's $1.04 billion assumption. Today's New York Times reports that "aides said the areas facing the largest reductions" included "labor and health, which would be cut by almost $3 billion."

If Amtrak is not on the Young/Stevens "add-back" list, or if the White House spurns that list, a committee (or floor) amendment would be needed to restore Amtrak funding to a "non-shutdown level." [Amtrak President David Gunn wrote to appropriators on December 16, "Adoption of the House Committee mark of $762 million would guarantee insolvency by spring and the shutting down of the railroad at that time."]

Another possibility -- funding Amtrak with a last-minute emergency appropriation -- would be even worse because it would maximize the time period during which the media would report doubts about Amtrak's short-term survival, and thus maximize damage to Amtrak's commercial revenues from this process.

Senate Appropriations Committee approval of the omnibus measure, initially expected today, now is not expected before Tuesday (January 14). Senate leaders have not yet agreed on an organizing resolution, so Democrats technically remain in control. [Republicans have been holding out for 65/35 party ratios on committees, although some committees have already reached different agreements, including Senate Commerce, where McCain is willing to continue the present 50/50 ratio.]

In the transportation sector, so far at least, Amtrak appears to bear nearly all the pain. Associated Press said transportation programs were to be reduced by $400 million from what the Senate approved last year. One-third of Amtrak's $1.2 billion is $400 million.

The Bush Administration's squeeze on domestic programs is outlined in a January 6 Washington Post report. The Administration wants to freeze spending for domestic discretionary programs at $316 billion for fiscal 2003, same as 2002, and the article foresees a similar strategy for the 2004 budget that the Administration will propose next month. At the same time, spending on military programs and terrorism defense is "soaring," and tax revenue is "stagnant."

An Administration budget-office spokesperson said, "We can't make the mistakes of trying to have guns and butter." Yet, an official of the Federal Funds Information for States said, "They're saying we can't have guns and butter, but in fact the butter side is the [Administration's] tax cut."

The article claims that non-trust-fund transportation programs -- FAA, air safety, Amtrak, Coast Guard -- has grown "by more than 50 percent between 1997 and today ... but would grow by only 7.3 percent between now and 2007."  But, in reality, Amtrak funding has not "grown 50%" since 1997, when appropriated funding was $842.5 million.  In fact, President Bush's 2003 proposal of $521.5 million -- which could well be repeated in his 2004 request -- is 38% below what Amtrak got in 1997. Click here for more on Amtrak funding.

The Bush Administration is preparing to locate the new Homeland Security Department in one of three locations, all of which lack rail transit service. One site is in Chantilly, and two in Tysons Corner, Va.  Because many agencies will be taken from existing departments and merged into the new one, this will act to increase the automobile-dependency of the national capital region. For example, the Coast Guard will be taken from the Department of Transportation, which sits atop the L'Enfant Plaza Station, served by four of the five Metro lines.

The National Defense Rail Act, S.104 was introduced January 7 by Sen. Ernest Hollings (D.-S.C.) and 24 other Senators. Essentially, it is a reintroduction of last session's S.1991 (with the same name), with a few technical changes. S.1991 was approved by the Senate Commerce Committee on a 20-3 vote, on April 18, 2002 -- but then languished before the full Senate. The bill would authorize an annual federal investment of $4.6 billion from fiscal 2004 to 2008, plus a one-time $1.3 billion in 2004 for security items. A statement from Hollings' office says that would "develop a world-class, national passenger rail system," "essential to achieve a balanced U.S. transportation system."

The bill authorizes development funding for long and short routes alike, including high-speed rail corridors. It also includes several Amtrak reform measures, such as a new cost accounting and reporting system, more detailed financial plans to be submitted to Congress, development of short-term working capital (to help stave off what are becoming annual "shutdown" crises), and the removal of the failed 1997 operational self-sufficiency mandate.

Discontinuation notices for the Kentucky Cardinal were sent January 6 by Amtrak to Illinois, Indiana, and Kentucky. Amtrak President David Gunn explained in a letter to employees that this is not a precursor to more extensive route cuts. Rather, he wrote, "The Kentucky Cardinal is unique, because it was started a few years ago as a single coach service based on the idea that the express business would be profitable." The notice is for 180 days, meaning the last run of the train will be on or about July 9.

The train has been hobbled by a number of factors that include the failure of the concept of a rapidly expanding express business, slow running across Indiana (albeit at night), irregular equipment assignments (including long stretches with no sleeping car), and lack of the state funding needed to make the investment necessary to improve things (such as faster running in Indiana or extension to Nashville).

Schedule changes to the Pennsylvanian and Three Rivers will not happen with the January 27 timetable change. Talks between Amtrak and Norfolk Southern, which owns the tracks from Chicago to Pittsburgh and Harrisburg, did not conclude quickly enough to make the new timetable (but talks are still continuing).

A truck drove around crossing gates and derailed a morning-rush-hour Metrolink commuter train on January 6 at Burbank, Cal. The truck driver was killed, and 26 others required a trip to the hospital (including two crew). All cars and locomotive derailed; the two leading cars also tipped over. The train involved originated at the Via Princessa station on the Antelope Valley line. The crossing was Buena Vista St., which is north of the Burbank junction between the Antelope Valley and Ventura County lines, meaning that Metrolink and Amtrak trains on the latter route were not disrupted. The accident led to a major Los Angeles Times story that quoted at length the views of various individuals who think the entire commuter rail system is a mistake.

A 21-year-old man was arrested and removed from the eastbound Texas Eagle on January 5 at Big Sandy, Tex., after wielding a knife and threatening to kill passengers -- who then restrained him. According to Amtrak personnel, he was also intoxicated and screaming profanities. Police charged the man with making "terroristic" threats.

Mudslides closed the line between Seattle and Everett, Wash., earlier in the week, resulting in the Empire Builder being turned at Everett at least once.

New York State Transportation Commissioner Joseph Boardman and Amtrak President David Gunn met January 6 to discuss relations between the state and Amtrak. One recent source of friction has been the state's displeasure with Amtrak not putting a rebuilt Turboliner into immediate service -- Amtrak says it needs more spare parts and instruction manuals from the train's rebuilder, and more training time, in order to provide reliable service. Gunn told Boardman the trains could be running in one-to-three months.

Meanwhile, Governor Pataki has until the end of January to sign a bill (SB 7602) providing tax relief to railroads that make infrastructure improvements in New York State. The bill is an important step toward passenger-related projects proceeding on privately owned rights-of-way.

The entire, worldwide airline industry lost more in the last two years than all its profits in the 45 years before that, according to a January 7 Associated Press story. The source of that figure is Giovanni Bisignani, director of the International Air Transport Association. The loss in 2002 was $13 billion, and in 2001 $18 billion. That probably doesn't account for inflation, but still is not encouraging news for that industry. While airlines have their own problems that are different from rail, both modes are struggling with an overall, reduced travel demand.

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