Congress Congress Considers Considers the Future of the Future of Passenger Passenger RailRail

David JohnsonDavid Johnson

Assistant DirectorAssistant Director

National Association of Railroad PassengersNational Association of Railroad Passengers

August 29, 2005August 29, 2005

TMACOG Passenger Rail ForumTMACOG Passenger Rail Forum

A Washington UpdateA Washington Update

A Silver Lining To Every A Silver Lining To Every CloudCloud

Its been quite a roller coaster year Its been quite a roller coaster year for passenger rail supportersfor passenger rail supporters

Many positive things have emerged Many positive things have emerged out of something that started out out of something that started out very negative.very negative.

““Other Than That, Mrs. Lincoln, Other Than That, Mrs. Lincoln, How Was the Play?”How Was the Play?”

Administration proposed zero funding Administration proposed zero funding for Amtrak and advocates an Amtrak for Amtrak and advocates an Amtrak bankruptcy for “needed change”bankruptcy for “needed change”

Amtrak financial situation became Amtrak financial situation became problematic as debt holders become problematic as debt holders become nervous (cost of debt service nervous (cost of debt service increased)increased)

““Other Than That, Mrs. Lincoln, Other Than That, Mrs. Lincoln, How Was the Play?”How Was the Play?”

Sect. Mineta’s “Amtrak Bankruptcy Sect. Mineta’s “Amtrak Bankruptcy Road Tour” traveled to many cities Road Tour” traveled to many cities across the United States—including across the United States—including Chicago and Detroit—advocating Chicago and Detroit—advocating elimination of most Amtrak serviceselimination of most Amtrak services

Cool reception from most mediaCool reception from most media

Mineta (Mineta (New York TimesNew York Times op-ed, Feb. 23): op-ed, Feb. 23): "The problem is not that Americans don't use "The problem is not that Americans don't use trains, it is that Amtrak has failed to keep up with trains, it is that Amtrak has failed to keep up with times, stubbornly sticking to routes and services, times, stubbornly sticking to routes and services, even as they...attract few users.“even as they...attract few users.“

Mineta (Charlotte, Feb. 22):Mineta (Charlotte, Feb. 22):

"Amtrak today clings to routes that have long since "Amtrak today clings to routes that have long since faded from use..." faded from use..."

Mineta (prepared remarks, Chicago, IL, press Mineta (prepared remarks, Chicago, IL, press conference, Feb. 14):conference, Feb. 14): "Amtrak...is...running trains that nobody rides "Amtrak...is...running trains that nobody rides between cities that nobody wants to travel between cities that nobody wants to travel between." between."

Mineta: “Trains Nobody Mineta: “Trains Nobody Rides”Rides”

In fiscal 2004, the average number of In fiscal 2004, the average number of travelers on a national network train travelers on a national network train at any one time (passenger miles per at any one time (passenger miles per train mile) was 170.6. That is 27% train mile) was 170.6. That is 27% higher than on short-distance trains, higher than on short-distance trains, where the figure was 133.9. where the figure was 133.9.

Since people board and alight during Since people board and alight during the trip, the average number of the trip, the average number of passengers handled per run was passengers handled per run was even higher: 364. even higher: 364.

Fact CheckFact Check

Fact CheckFact Check

Lots more Administration and Lots more Administration and Congressional statements and Fact Congressional statements and Fact Checks (and many other resources) Checks (and many other resources) on our website:on our website:

http://www.narprail.orghttp://www.narprail.org

Congress Speaks With A Loud, Congress Speaks With A Loud, Pro-Passenger Rail VoicePro-Passenger Rail Voice

Initial House funding figure: $550 millionInitial House funding figure: $550 million Would cause shut-down of entire Amtrak Would cause shut-down of entire Amtrak

system—NEC would system—NEC would notnot be spared be spared Funding level aside, specific language called Funding level aside, specific language called

for elimination of all non-corridor operations for elimination of all non-corridor operations plus Chicago-Detroit.plus Chicago-Detroit.

Floor action on June 28, lead by Rep. Steve Floor action on June 28, lead by Rep. Steve LaTourette (R-OH) and Corrine Brown (D-LaTourette (R-OH) and Corrine Brown (D-FL) raised that figure to $1.17 billion and FL) raised that figure to $1.17 billion and eliminated anti-long distance train eliminated anti-long distance train language.language.

PLEASE THANK PLEASE THANK REP.REP.

LATOURETTE!LATOURETTE!

Congress Speaks With A Loud, Congress Speaks With A Loud, Pro-Passenger Rail VoicePro-Passenger Rail Voice

Senate committee approved $1.45 Senate committee approved $1.45 billion; full Senate to take up funding billion; full Senate to take up funding in Septemberin September

Strong support from new allies: Strong support from new allies: Senator Thad Cochrane (R-MS) and Senator Thad Cochrane (R-MS) and Christopher (“Kit”) Bond (R-MO)Christopher (“Kit”) Bond (R-MO)

Every Cloud Has A Silver Every Cloud Has A Silver LiningLining

Zero funding level made Congress Zero funding level made Congress aware that Administration was seriousaware that Administration was serious

Amtrak reauthorization bill was needed Amtrak reauthorization bill was needed (the last one expired in 2001)(the last one expired in 2001)

Congress agreed that Amtrak needed to Congress agreed that Amtrak needed to be reformed, but that gutting service be reformed, but that gutting service was not reformwas not reform

Every Cloud Has A Silver Every Cloud Has A Silver LiningLining

Amtrak Board of Directors—all Amtrak Board of Directors—all appointed by President Bush—appointed by President Bush—presented a comprehensive reform presented a comprehensive reform and revitalization package, with and revitalization package, with strong support of David Gunn and strong support of David Gunn and Amtrak managementAmtrak management

Signaled that Amtrak was serious Signaled that Amtrak was serious about changeabout change

The Silver Lining: PRIIAThe Silver Lining: PRIIA

The Passenger Rail Investment and The Passenger Rail Investment and Improvement Act (PRIIA), S.1516Improvement Act (PRIIA), S.1516

Senator Trent Lott (R-MS) took the Senator Trent Lott (R-MS) took the lead, with Sens. Stevens (R-AK), lead, with Sens. Stevens (R-AK), Lautenberg (D-NJ) and Inouye (D-HI)Lautenberg (D-NJ) and Inouye (D-HI)

Full summary of the bill can be found Full summary of the bill can be found on our website…but here are some on our website…but here are some highlightshighlights

The Silver Lining: PRIIAThe Silver Lining: PRIIA

Authorizes adequate funding for Amtrak Authorizes adequate funding for Amtrak operational and capital needsoperational and capital needs

Defines national rail passenger system Defines national rail passenger system as:as: NEC, designated high speed rail corridors, NEC, designated high speed rail corridors,

and other routes currently in existenceand other routes currently in existence Does notDoes not preclude Amtrak from restoring, preclude Amtrak from restoring,

improving or developing additional non-high improving or developing additional non-high speed intercity passenger rail services. speed intercity passenger rail services.

The Silver Lining: PRIIAThe Silver Lining: PRIIA

Requires monitoring of on time Requires monitoring of on time performance of Amtrak trainsperformance of Amtrak trains

Surface Transportation Board to Surface Transportation Board to develop a schedule of penalties for develop a schedule of penalties for delays caused by host railroads.  delays caused by host railroads. 

Requires the STB to investigate when Requires the STB to investigate when the OTP of any Amtrak route falls the OTP of any Amtrak route falls below 80% for two consecutive below 80% for two consecutive quarters. quarters.

The Silver Lining: PRIIAThe Silver Lining: PRIIA

Requires NEC commuter agencies to Requires NEC commuter agencies to pay true cost of using the railroad pay true cost of using the railroad (some flexibility in terms of capital (some flexibility in terms of capital improvements)improvements)

Santa Claus came to Jim’s house: Santa Claus came to Jim’s house: federal-state partnership for federal-state partnership for infrastructure fundinginfrastructure funding

Highways: 41% Funded ByHighways: 41% Funded ByNon-User SourcesNon-User Sources

In 2001, 41% of the $133 billion spent on highways came from payments other than the gas tax, tolls, and vehicle taxes and fees.

Highways: 41% Funded ByHighways: 41% Funded ByNon-User SourcesNon-User Sources

15.3% general fund appropriations

9.5% bond issue proceeds

5.8% investment income and other receipts

5.6% other taxes & fees4.8% property taxes.

Source: "Improving Efficiency and Equity in Transportation Finance," by Martin Wachs [The Brookings Institution Series on Transportation Reform (April 2003)]

FAA Operations Receive FAA Operations Receive General FundsGeneral Funds

Trust FundGeneral Fund

FY03 Actual FY04 Enacted FY05 Requested FY05 Enacted FY06 RequestedGeneral Fund $3.25 $3.01 $1.85 $2.86 $1.70Gen. as % of Total 46% 40% 24% 37% 20%Trust Fund $3.78 $4.47 $6.00 $4.92 $6.50Total $7.02 $7.48 $7.85 $7.77 $8.20

2005 Enacted

You Get What You Pay ForYou Get What You Pay For

Rising Gasoline Prices PlusRising Gasoline Prices PlusNot Enough TrainsNot Enough Trains

"If you believe America has been built on cheap resources—oil, gas and coal—and think the nation will not be affected [by higher prices], you are in for a big surprise.”

--Charles T. Maxwell, senior energy analyst at Weeden & Co. (to the Associated Press)

America Needs Amtrak!America Needs Amtrak!

Rallies in Montana June 1-2: the Rallies in Montana June 1-2: the Empire BuilderEmpire Builder is essential to is essential to MontanaMontana

Bi-partisan planning and support for Bi-partisan planning and support for event from Governor Brian event from Governor Brian Schweitzer (D) and Lieutenant Schweitzer (D) and Lieutenant Governor John Bohlinger (R).Governor John Bohlinger (R).

America Needs Amtrak!America Needs Amtrak!

Hundreds of resolutions of support Hundreds of resolutions of support from Amtrak from state and local from Amtrak from state and local governmentsgovernments

Ohio Rail Summit (May 18, 2005-Ohio Rail Summit (May 18, 2005-Columbus)Columbus)

Events like this one are important!Events like this one are important!

What Needs to be DoneWhat Needs to be Done

Fund Amtrak for Fiscal 2006 at least Fund Amtrak for Fiscal 2006 at least at the $1.45 billion level approved by at the $1.45 billion level approved by Senate AppropriationsSenate Appropriations Amtrak Board submitted reform Amtrak Board submitted reform

proposal and request for $1.82 billionproposal and request for $1.82 billion Needed to ensure continued operations Needed to ensure continued operations

and to allow for…and to allow for…

What Needs to be DoneWhat Needs to be Done

Passenger Rail Investment and Passenger Rail Investment and Improvement Act: S.1516Improvement Act: S.1516 (Say that with me: PRIIA, PRIIA, PRIIA!)(Say that with me: PRIIA, PRIIA, PRIIA!) Sensible, meaningful reformSensible, meaningful reform Critical for both short term future of Critical for both short term future of

Amtrak and expansion of services--Amtrak and expansion of services--allowing planning for the futureallowing planning for the future

State funding match!State funding match!

What Needs to be DoneWhat Needs to be Done

Senator Mike DeWine has signed onSenator Mike DeWine has signed on BE SURE TO THANK HIM!BE SURE TO THANK HIM!

Congress has been out for August Congress has been out for August recess, so not all Senators may be recess, so not all Senators may be aware of legislation.aware of legislation.

Talk to your Senators and encourage Talk to your Senators and encourage them to co-sponsor this legislation.them to co-sponsor this legislation.

NARP is here to help!NARP is here to help!

http://www.narprail.orghttp://www.narprail.org Newly re-designed website!Newly re-designed website!

narp@narprail.orgnarp@narprail.org 202-408-8362202-408-8362

Please send us a copy of city/county Please send us a copy of city/county resolutions in support of Amtrak!resolutions in support of Amtrak!