Amtrak, Bush administration reach tentative agreement to keep trains running

Amtrak, Bush administration reach tentative agreement to keep trains running
LAURENCE ARNOLD, Associated Press Writer
Wednesday, June 26, 2002
©2002 Associated Press

Amtrak and the Bush administration reached tentative agreement Wednesday night on a plan for resolving a budget crisis that could have shut down the national passenger railroad next week.

Transportation Secretary Norman Y. Mineta and Amtrak Chairman John Robert Smith released a joint statement reporting "excellent progress" in their discussions on how to help the railroad close a $200 million budget shortfall.

"Significant details are still being finalized, and no final agreement has been signed," they said. "We are confident that, with congressional support, Amtrak services will not be disrupted."

Amtrak had turned to the Bush administration and Congress for help in averting a shutdown. The proposed resolution counts on action from both.

Mineta and Smith said the Transportation Department will provide the immediate financial assistance needed to keep the trains running. Amtrak has been seeking a loan guarantee from the department to help it borrow money to stay in business.

Amtrak and the Transportation Department also will jointly request action by Congress, which has the power to appropriate money to the railroad.

Mineta and Smith said the tentative agreement would improve Amtrak's financial discipline and performance, make Amtrak's finances and operations more open to public scrutiny and give federal officials a better understanding of its long-term prospects.

"It's a good compromise -- part loan, part grant," said Rep. Jack Quinn, R-N.Y., chairman of the House Transportation subcommittee on railroads.

Some Amtrak backers had fretted that the administration would condition help on major changes to Amtrak.

Mineta last week outlined a series of wide-reaching reforms, including ending federal operating subsidies to Amtrak, introducing competition and making states more responsible for paying for train service.

"I would oppose dramatic reforms of Amtrak as part of the cost of survival," Sen. Dick Durbin, D-Ill., said earlier Wednesday, "and I hope the Amtrak board would oppose them, too."

But Mineta told a group of Republican lawmakers Wednesday morning that the administration would not make any unreasonable demands.

"It seems to me in that kind of a short-term situation, we ought not to be imposing a whole list of conditions that ought to be considered in the long term," he said.

Amtrak's board last met with Mineta on Monday. Mineta has a seat on the seven-member board but sends a deputy to most meetings.

At Monday's session, Gunn said, Mineta proposed a loan guarantee to help Amtrak get about $100 million along with a series of "self-help-type actions" Amtrak could take to make up the remainder.

One of many options broached by Mineta, Gunn said, was to mortgage Chicago's Union Station, which Amtrak owns. Gunn said Amtrak officials reviewed that suggestion and others but quickly ruled them out as impracticable or not helpful.

The tentative deal struck Wednesday still has the Transportation Department providing about $100 million immediately. But it envisions Congress providing the rest, rather than Amtrak finding the money itself.

Lawmakers of both parties already have been trying to include $205 million for Amtrak in a $30.4 billion anti-terrorism spending bill now being negotiated by the Senate, House and the Bush administration.

The tentative deal was announced after Amtrak board members and Transportation Department officials met for several hours behind closed doors.

Amtrak had warned it would have to begin shutting down service as early as July 4 or 5 without the needed money. It originally said the shutdown could begin as early as this week.

Amtrak trains carried about 65,000 riders each day last year, about half of them in its Boston-New York-Washington corridor.

An Amtrak shutdown would also affect several commuter lines, which either run on Amtrak-owned tracks and tunnels or are operated by Amtrak.

This gets them to October 1. What after that?

Actually, quite a bit could be done if Amtrak financials are properly audited to expose where the red ink is worst. And I expect that a good part of it is labor related -- both in management and in union labor. Congress and the administration should demand reforms in this area before extending the life of Amtrak into the next fiscal year.

And, as I have said on other threads, the other problems are those of infrastructure and operating costs. The northeast corridor is cited as one which is almost profitable, but in reality farebox revenues only approach covering operating expenses, while the infrastructure dates from the 1920's in some areas. And the NE states do not contribute much dollars to Amtrak, like California and other west coast states do.

The long-distance routes do not have infrastructure problems because they are owned by the private freight railroads, but farebox recovery is terrible. This could be alleviated somewhat by running longer trains, but Amtrak has 50+ coaches, sleepers, and dining/lounge cars awaiting repairs, which aren't being made due to lack of funds. And the freight railroads shudder at the thought of dealing with a number of private franchises, and don't want any more passenger trains than they already have (which is only four east-west transcontinental and one of those does not run every day). And how can you generate income when the train stops half the time in the middle of the night at major cities like Salt Lake City? The freights might be willing to take on more trains if Amtrak pays to double-track lines to reduce delays. Uncle Pete is letting Amtrak do this between LA and Las Vegas for a train that is to begin next year (several years behind the orginal starting date already, I might add, partially due to satisfying the enviros that an additional track would not harm desert tortises).

Anyway, there are solutions, all of which involve money, labor and politics. The new Amtrak president (less than 60-days on the job) has a good prior track record of being blunt, telling it like it is, and turning problem transportation systems around. He also believes, as many in America do, that this country deserves a rail system, well run and running on time, and it and the Congress have been led astray by promises made by past administrations and past Amtrak "leadership". He should be given some time to see if he can do better.

I flew from Midland, Texas to Boise, Idaho and return two weeks ago on Southwest. The workers and flight attendants do try to make things a little easier for you, but still you feel like you're being sent to jail when you go through security. Searched up to three times -- and it is only going to get worse when all checked luggage has to be screened too. I saw a little five-year old girl get the criminal treatment, and it's also true about little old ladies in wheelchairs being searched too. And now they are talking about eyeball scanning and other identification methods. We sure need an alternate travel method (besides Greyhound buses full of illegal immigrants) to travel cross-country when driving is not an option.

The Bush administration - the most compassionate group spending more money than any administration in 40 yrs. Yes, this is good to keep a loser bleeding more dollars again & again. Ya know it's only money & you won't have to pay it. No, those pesky kids of yours will. But we took the issues away from those dems, didn't we, har har. And Johnnie has train to pick him & is family in Podunk City. Stay away Hillary. You can't spend this amount of money w/o a few Americans complaining but not here. We're all in GW's corner. 8 or 10 Trillion in debt soon. No Problem. It's George Bush- a compassionate conservative. Viva La Bush! Long live the inefficient Amtrac but who cares. It's our kids problem. While we are at it, 3 cheers for Mineta. A great choice for Sec. He can schmooze with those dems. Oh, that's right, he IS a dem but he would have been my choice also. Go Bush. Send the Bush bashers home.

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