Hotline #812 - February 11, 1994

President Clinton's 1995 budget request was unveiled on February 7. Because last week's hotline, updated February 7, received so many calls, a review of the budget appears at the end of this message.

A cost dispute between Amtrak and Conrail has gone to the Interstate Commerce Commission. Conrail wants $10 million in track-use fees beyond the $6 million a year Amtrak already pays. Amtrak is willing to pay track maintenance costs that can be documented for its operations. Amtrak also wants to pay performance-based incentives, but Conrail remains the only major railroad without an incentive agreement with Amtrak.

Retired Amtrak President Graham Claytor was honored at a formal dinner on February 9 at Washington Union Station, sponsored by the railroad industry. The Amtrak board named the station concourse "Claytor Concourse" on January 26. The dinner ended with the unveiling of a huge bronze plaque to that effect to be placed in the concourse.

In California, Metrolink started a third round trip to Lancaster this week. On February 14, it will extend two Moorpark round trips 11 miles to Camarillo.

As the sale of the Central Vermont progresses, it is becoming more politically charged. Last week, for the first time, the amount of a bid became publicly known. The Providence & Worcester has bid $30 million for the route of the Montrealer. This brought protests from Guilford, which has been involved in a dispute with the Providence & Worcester over a troubled rail-clearance funding bill in the Massachusetts legislature.

James R. Mills resigned abruptly on February 2 from the position he held for nine years as chairman of San Diego's Metropolitan Transit Development Board. Before that, as state senator, he wrote the law creating that agency and is recognized as a key force behind building the San Diego Trolley system.

The Administration's budget proposal boosts Federal Railroad Administration appropriations by 17% compared with what was enacted for 1994. Amtrak itself rises 9%, from $909 million to $988 million. That includes $380 million for operations, $252 million for capital, and $156 million for mandatory payments. The Northeast Corridor drops from $225 million to $199.6 million. That reduction apparently comes from the electrification subtotal, as the Administration believes there is enough previous funding remaining that the project itself is not harmed by a lower amount. High-speed rail gets $32.5 million, up from $3.5 million this year.

Beyond that, Clinton proposes a $90-million federal contribution to the Pennsylvania Station Redevelopment Project that includes the transformation of the Post Office building in Manhattan. This would be a match contingent on another $215 million from state, local, and private sources. Senate Finance Chairman Daniel Patrick Moynihan strongly supports this project.

There is no money proposed for maglev in 1995. Also, the budget proposes cutting $17 million of the $20 million appropriated for maglev research for 1994.

Federal transit funding would rise 4%, or $179 million. Within that, however, operating grants would fall 25%, or about $200 million. Also, 10% of the transit program is earmarked for congestion reduction programs, whatever that may mean. Highway spending would rise 1%; aviation 2%.

Amtrak next week likely will submit a budget request even bigger than Clinton's for both operations and capital -- all genuine needs. Nevertheless, the Clinton numbers still represent the best Administration passenger-rail figures ever. They may be attacked by supporters of other programs that Clinton cut or eliminated.