Hotline #766

Although the Senate yesterday approved the budget resolution that President Clinton wanted, the Senate's vote next week on the stimulus package of supplemental 1993 funding will decide whether and when Amtrak gets its $188 million. Senators Boren and Breaux were negotiating with the Administration, but they contemplate delaying up to six months about half of the stimulus package -- including all the Amtrak funding and 36% of the transit funding -- while allowing all the highway and airport spending (and the balance of the transit funding) to go forward now. Sen. Herbert Kohl (D.-Wis.) also has talked of an even more damaging amendment to condition all but $6.9 billion of the $16.3 billion on making offsetting cuts to other programs.

In the weeks ahead, the Senate Finance and House Ways and Means Committees will consider the fate of the 2.5 cents in federal gasoline tax now going to deficit reduction. The Administration wants it all for the Highway Trust Fund. Yesterday, Secretary Pena told the House Transportation Appropriations Subcommittee that the Administration does want a half-cent of the 2.5 cents to go to the transit account, but that freight railroad payments -- $80 million a year -- would continue to do to deficit reduction.

Rep. Al Swift (D.-Wash.) probably will reintroduce his Ampenny bill, not to pick a fight with the President but just to remind everyone of the need to find some stable funding source for intercity passenger rail.

NARP submitted a statement for the record of the Senate Commerce Committee's hearing on oversight of the intercity bus industry, answering Greyhound's attack on California's rail-bus network. Greyhound President Frank Schmieder told their March 15 hearing that "we are sure that Congress did not intend that Amtrak subsidies be used by Amtrak as a base from which to develop a subsidized bus network that competes with existing unsubsidized bus service."

NARP said, "If the State of California can profitably operate feeder buses that increase Amtrak ridership and revenues, Amtrak has a legal responsibility to encourage that. The Committee should be glad that California has taken these initiatives and hopeful that other states will follow California's lead." NARP said the bus industry's biggest problems -- like those of Amtrak's and the airlines -- are cut-rate air fares and low automobile costs.

NARP Executive Director Ross Capon will testify on March 29 before the House Transportation Appropriations Subcommittee. Send NARP a self-addressed, stamped envelope and $1.00 per document for a copy of his testimony, the intercity bus statement, or the grade-crossings media advisory mentioned here a week ago.

Jeff Morales, longtime aide to Sen. Frank Lautenberg (D.-N.J.), will become a special assistant to Secretary Pena. For DOT general counsel, President Clinton nominated Stephen Kaplan, a former Denver city attorney who worked for Pena when he was mayor. Clinton this week said he will name as Federal Highway Administrator his longtime advisor Rodney Slater; deputy highway administrator will be Jane Garvey, now head of aviation at Boston's Logan Airport and formerly Massachusetts Highway Commissioner under Governor Dukakis and Secretary Salvucci. The associate deputy secretary for intermodalism will be Michael Huerta.

Atlanta's downtown terminal has been delayed at the insistence of Terry Coleman, chairman of the Georgia State House Appropriations Committee, who deleted from the new state budget $13.2 million in bond funding needed to unlock $120 million from the federal government. Georgia DOT says it still supports the project. Thus, we could see another attempt in next year's legislative session, but that would be too late to have the terminal ready for the Olympics, even if the federal money is kept available for Atlanta. The legislature did approve $10,000 for the rail compact and related expenses and $90,000 to study station improvements related to Chicago-Florida service.

Canada's Transport Minister has rescinded the 1991 abandonment of CN tracks at Levis, Que. Transport 2000 thanks NARP members who contributed to the Levis Defense Fund.

Longtime San Francisco Chronicle reporter and transit specialist Harry Demorro died this week.