Hotline #817 - March 18, 1994

The House Transportation Appropriations Subcommittee, chaired by Bob Carr (D.-Mich.), held its hearing on 1995 FRA and Amtrak funding. Key witnesses were Federal Railroad Administrator Jolene Molitoris, Amtrak President Tom Downs, and Ken Mead of the General Accounting Office. The basic gist of the Amtrak and GAO testimony was that, given Amtrak's present responsibilities and past funding patterns, Amtrak needs significant boosts in operating and capital funding. The general reaction of Chairman Carr and of Ranking Republican Frank Wolf (Va.) was that there will be no additional funding and that a smaller Amtrak is needed to live within current-level budgets.

Considering the praise heaped on the Northeast Corridor by Carr and Wolf, this should be considered a loud alarm bell for supporters of long-distance trains. NARP members served by long-distance trains should warn their Representatives immediately of this development and ask them to tell Carr and Wolf not to hurt long-distance trains.

NARP will testify before the House Energy and Commerce Surface Transportation Subcommittee, chaired by Al Swift (D.-Wash.), on March 23, on Amtrak reauthorization. On March 24, Sen. Frank Lautenberg (D.-N.J.) will chair a hearing in the Senate Transportation Appropriations Subcommittee on 1995 Amtrak funding.

Amtrak met with representatives from 18 states, the FRA, and DOT on March 4 to discuss the future of the 403(b) program. The meeting was to provide input from the states on changes to be made with the reauthorization bill. There was general agreement that it should be a stand-alone program, separate from Amtrak's operating account.

We have learned that the Congressional Budget Office is scoring Amtrak capital outlays with a first-year spend-out rate of 40%, instead of 15% as done previously. For more on this process, review your September 1993 newsletter. The practical effect of this is that Amtrak's 1995 capital budget is worth $50 million less than we supposed.

The Georgia legislature, after six years of inaction, finally has funded the Georgia State Rail Authority. However, House Appropriations Chairman Terry Coleman, who represents Bremen (just west of Atlanta), has blocked the Atlanta intermodal terminal again. He said, "Until Amtrak gives Georgia more service, there will be no new station." One wonders if he is holding out for a Crescent stop in his hometown. In the meantime, if no dirt is flying by July 15, there will be no station before the Olympics and the whole question of a federal funding match will be in doubt.

Amtrak's promotion to discount one-way tickets on trips over 100 miles by 55% has been extended.

The Massachusetts Joint Legislative Committee has approved $60 million proposed by Governor Weld to go toward the Boston rail link.

The new Liberal government in Canada has embraced the Conservatives' plan to make deep cuts in VIA Rail's budget. VIA gets $331 million now and two years from now will get only half that, apparently with no corresponding legislation allowing VIA to operate more efficiently. Transport 2000 is livid about Liberal Transport Minister Doug Young's recent comments that railroads are old-fashioned and don't get him excited. Services threatened by this cut include VIA trains to Sarnia and Niagara Falls and all service to the Gaspe, St. John, and Maine.

The Atlantic route through Maine and St. John received another blow this week when five applications to appeal the line's abandonment were dismissed. The only remaining chance is a petition to Cabinet, which, given the anti-rail statements of the new Liberal government, seems a long-shot.

Three NARP regions meet tomorrow -- 4 in Baltimore, 6 at the Radisson Hotel in Toledo, and 9 at the Bi-State office building in St. Louis. On March 26, Region 7 meets at the Chula Vista Resort in Wisconsin Dells and Region 11 meets at the Town House Restaurant in Albuquerque. On March 27, Region 5 meets at the Lake Monroe Holiday Inn in Sanford, Fla.