Hotline #845 - September 30, 1994

Because of a big drop in revenues this year, Amtrak faces a crisis in fiscal year 1995, which begins tomorrow. The Amtrak board, acting under section 404(c) of the Amtrak Act, has paved the way for unspecified route-cut decisions that could come on November 30, with implementation likely January 1. Section 404(c) lets Amtrak make cuts without any public comment period if funding is not adequate. The 1995 appropriations bill, which is awaiting presidential signature, gave Amtrak operations $40 million more than in 1994, but management still sees a $193 million shortfall.

Amtrak has been hurt by its safety image and low airline fares. The smoking bans have cut revenues by over $20 million. Much of this, along with Amtrak's plans for huge cuts in management staff, was in a front-page story of yesterday's Washington Post. CNN yesterday interviewed Amtrak President Tom Downs and NARP Executive Director Ross Capon. NARP sent out a news release saying Amtrak is too pessimistic in estimating no increase in 1995 passenger revenues. Amtrak will continue to get more new rolling stock and has spent $11 million to avoid repeating the collapse of last winter. NARP also called on management and labor to negotiate new productivity improvements quickly.

Today, NARP Executive Director Ross Capon serves on a panel on the DOT Rail Safety Summit. Passenger rail supporters fear that the summit will generate unnecessary Amtrak safety fears, but NARP yesterday talked with a Gannett reporter doing a story aimed at the exact opposite -- setting the record straight.

More is known this week about S.2002, the two-year Amtrak authorization bill passed by the Senate Commerce Committee on September 23. It provides for a consumer slot on the Amtrak board, which was not in the House bill and which Amtrak does not seem to be in favor of. Both S.2002 and H.R.4111, the House bill, include a trust fund for Amtrak capital needs, to be funded, at least to start with, by payments to Amtrak for use of its equipment and facilities, and claims recovered by Amtrak.

Still, Amtrak authorization may never come to floor votes this year. There have been concerns about the Barton and Hutchison amendment and many bills are being jettisoned from the calendar as the 103rd Congress comes to a close.

Delaware Gov. Tom Carper (D.) and Celeste Pinto McLain were confirmed by the Senate on September 27 to the Amtrak board.

Amtrak's Northeast Small Business Unit officially begins operation tomorrow.

Amtrak is cutting in its new signal system for Penn Station in New York, replacing the original system from 1910. From 10:00 pm tonight through 12:00 midnight on October 2, there will be disruptions to train service while the switch is made. Some long-distance trains will terminate in Albany, Philadelphia, or Washington with connecting shuttle train service. Most conventional Northeast Corridor trains will operate normally, though with delays up to 30 minutes possible. Tomorrow there will be no Metroliners or New England Expresses. Check with Amtrak before using Penn Station this weekend.

The National Commission on Intermodal Transportation released its final report yesterday. It calls for a viable national passenger trains system and a stable funding source for it.

Amtrak will participate in a frequent-user program, beginning tomorrow, with Midwest Express airline. Club members who travel on the Hiawatha between Chicago and Milwaukee will get air miles and flyers will be able to redeem miles for Amtrak trips and upgrades. If it goes well, this may be the basis for an expanded program.

The light-rail line in Denver will begin operation on October 7. It extends 5.3 miles from downtown to a transit center to the south. A nine-mile extension has been approved, to open in 1999. There will be a celebration that afternoon.