Hotline #293 - May 2, 2003

Amtrak released a five-year capital and operating plan on April 25, for fiscal 2004-2008. The plan calls for $1.812 billion in federal capital and operating support in 2004, and declines gradually to $1.4 billion in 2008. Among the features of the plan are efforts to bring current services and infrastructure to a state of good repair (including equipment repair), paying down about 19% of Amtrak's current debt (without taking on any new debt), and adding new services only where states pay for it.

Amtrak President David Gunn told a news conference (according to the April 26 Washington Post) that without such funding levels, Amtrak's deterioration would continue. "If the capital plan is underfunded, then the whole thing falls apart," he said. Gunn said Amtrak spent an average of $1.5 billion a year beyond its revenue intake from 1997 through 2002, which includes funding grants and money that Amtrak borrowed.

The Bush Administration, however, showed no inclination to support Gunn's funding request.  Deputy Transportation Secretary Michael Jackson told the Post that the plan was "more meticulous, thorough and thoughtful than has been presented in the past" but "incomplete." The Administration released its own "framework" for a six-year plan this week. They plan to further refine this into a more formal legislative proposal within the next two months. Essentially, through a process yet to be fleshed-out, the Administration envisions the outcome of the plan to be a system in which the federal government pays for 50% of capital funding (much less than the federal share for highways and aviation), no operating funding, and with states deciding where all services would be. While such an approach might help corridors in many parts of the country (especially with an 80% federal match as with other modes), it would be a death knell for an interconnected, interstate service.

The Administration also would assign operating rights over freight railroads to other parties besides Amtrak (one per route) and give the Northeast Corridor to a federal-state compact. It would encourage states to create regional rail operators.

A Senate Commerce Committee hearing on April 29 featured more criticism of Amtrak's nationwide services, particularly long-distance trains. Chairman John McCain (R.-Ariz.), said it was "disgraceful" that Amtrak President David Gunn had not discontinued the Sunset Limited. McCain also criticized Gunn's view that such a decision was political in nature and not for him to make, since removing just one train like the Sunset would provide very little in savings, and since all long-distance trains would have to be removed to start to realize meaningful savings -- and then, only after some years' of paying labor protection payments. Gunn made it clear that he was not in favor of such an approach.

McCain said, "I am not saying 'eliminate all the long-distance trains.' I'm saying 'eliminate waste and inefficiency wherever it exists.'" By that, clearly, he meant the Sunset. Sen. Kay Bailey Hutchison (R.-Tex.) suggested that the Sunset's economic performance was related to the train's running "six-to-eight hours late." But even she opened the door to moving to McCain's position, noting, "We should do it right or not do it at all."

Deputy Transportation Secretary Jackson joined in the anti-long-distance rail discussion. He said, "Amtrak's structure is rotted" and criticized Amtrak for "[failing] to terminate long-distance rail."  Jackson then followed with a discussion of the Administration's six-year plan.

Another hearing, on April 30, was before the Railroads Subcommittee of the House Transportation and Infrastructure Committee. NARP Executive Director Ross B. Capon testified and referred to Amtrak's five-year plan, saying, "Do not underestimate the significance of getting Amtrak to a 'state of good repair.' Amtrak has never been there before." Capon said the combination of achieving 'good repair' and the capital investments states and Amtrak have made in recent years mean that Amtrak's plan would produce ridership far higher than anything seen since long before Amtrak's creation. [Click here to read the testimony.]

Capon urged passage of "RIDE-21" or some other bill to provide funding outside the regular appropriations process for passenger rail capital improvements, including establishment of a true federal-state partnership. He said eliminating all long-distance trains would leave a three-part, balkanized "system" serving only 21 states. Chairman Jack Quinn (R.-N.Y.) said, "I stand firm in my commitment to a national system. Simply eliminating the unprofitable long-distance trains will not fix all [problems]." Rep. Earl Blumenauer (D.-Ore.) said, "I don't think it solves anything."

However, steep challenges remain. Quinn's subcommittee is the only friendly one that Amtrak faces, and it does not decide the most critical, immediate question -- the level of Amtrak's 2004 appropriation. Tell your legislators that saving nationwide passenger-rail service is important to you and that the best way (for now) to do it is to support Amtrak's funding request of $1.812 billion in 2004. Click here for ways to make contact.

NARP's annual reception was May 1. The Dr. Gary Burch Memorial Safety Award went to Gordon Bowe, a Union Pacific conductor on Chicago's Metra commuter service (Geneva line) and Operation Lifesaver volunteer. The George Falcon Golden Spike Award went to Sen. Patty Murray (D.-Wash.) and Rep. C. W. Bill Young (R.-Fla.) for their work on providing Amtrak funding. Releases about all three can be read on NARP's page for 2003 news releases.

Amtrak is offering a new internet-only, 25% discount, through June 15. The promotion code to use when booking on-line is H315. As with most discounts, it is applicable to the rail portion (not first-class part) of a fare.

Visit Amtrak's web site also to take a virtual tour of Amtrak's on-board accommodations.  You may need to download free Apple QuickTime software (directions at the Amtrak page).

The Georgia Rail Passenger Authority has survived the current round of budget legislation, but just barely. The Senate had zeroed out the $535,000 proposed by the governor, but House friends successfully insisted on $400,000 in reconciliation talks. However, according to the Georgia Association of Railroad Passengers, there is no money -- for yet another year -- for things like constructing an Atlanta intermodal terminal, or buying the ex-Central of Georgia Atlanta-Macon line, which Norfolk Southern has offered to sell to the state.

The annual Summer Beach Train to San Clemente Pier and Oceanside, Cal., will run June 28, July 12-13, 19-20, 26-27, August 2-3, 9-10, 16-17, 23-24, September 20-21, and October 5. The train runs morning south, early evening north, allowing over six hours at Oceanside. Round-trip tickets are available through Amtrak; $20 for adults and $14 for children. The dates allow access to several special events in San Clemente and the Oceanside Harbor Days.

Based on news reports, we reported last week that Amtrak's agreement with the State of Connecticut allowed 34 trains a day -- including both Amtrak and Shore Line East, and that the total reached 37 trains with the January timetable change. Actually, the agreement with Connecticut allows 34 trains plus the Shore Line East trains, which mostly were discontinued April 28.  Connecticut approved a request by Amtrak to allow 38 trains in exchange for carrying Shore Line East monthly riders west of New London. The additional Amtrak trains likely will serve more people than the discontinued commuter trains did.