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RailPAC endorses Amtrak-Laney funding
proposal with reservations
The Rail Passenger Association of California's board of directors on June 4 issued the following endorsement: I. ENDORSEMENT In the interest of national security and the provision of alternate forms of transportation, RailPAC endorses, with some reservations, the "Amtrak Strategic Reform Initiatives and FY06 Grant Request," calling for "rebuilding America's Passenger Rail System," as submitted to the Congress by the Amtrak Board of Directors, its Chairman David Laney, and President David Gunn in April, 2005. By now most every passenger rail advocate knows Amtrak
now faces a different type of crisis, and one larger than those that have
come before. While "passenger rail" has broad support in the country,
"Amtrak" has become a target, and solutions are not limited to just a lack
of funding. Amtrak is said to be on the verge of bankruptcy, but
it is counterproductive for this idea to be
RailPAC always favors continuing passenger rail where
it is economically viable. We vigorously support the California state
rail program. But, for 20 years we have been critical of Amtrak's
financial records that tend to make the long distance trains' performance
look worse than it really is. We support national reforms that will
make passenger rail more fiscally viable, that
We have reserved endorsement on the proposed changes to the Railway Labor Act and the placement of new employees under Social Security. Those points must be decided in the negotiation process. II. RATIONALE Below are listed the ten main points of the Amtrak Reform Plan as submitted by Chairman Laney and President Gunn in April, and RailPAC's comments follow each. 1. Adequate funding for Amtrak in FY ‘06.
Amtrak has requested $1.82 billion for fiscal year ‘06, including $787
million for capital infrastructure projects, $560 million to support train
operations, $278 million for service on
2. Establishment of a federal capital grant
program for state investment in intercity passenger projects, 80% federal,
20% local match. There is no such program currently.
3. The federal government through Amtrak would
be responsible for bringing the NEC up to a state of good repair.
It is politically unthinkable that the affected states will do this on
their own or in conjunction with each other, or agree to any such concept.
4. Amtrak would remain a vertically integrated
company, i.e., corridor maintenance would not be separated from operations.
5. Amtrak would retain its five businesses:
state corridors, long distance trains, NEC operations, infrastructure and
ancillary businesses.
6. Performance targets would be set for long
distance trains, and those requiring more subsidy than these standards
would also require additional
7. Changes to the Railway Labor Act.
8. Place new employees under Social Security
rather than Railway Retirement.
9. The Plan envisions that there would be a
growth in competition in the industry for both services and possibly operations.
The states would become the purchaser and have the right to select the
most efficient operator.
10. Amtrak's debt of some $3.8 billion would
be assumed by the federal government, thereby removing the need for nearly
$300 million in annual debt service.
Sources of hostility to Amtrak funding: Analysis AMTRAK VERSUS MINETA IN MONTANA:
THE STRANGE BATTLE OVER THE EMPIRE BUILDER
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DOT'S MINETA HARASSING AMTRAK &
AMTRAK'S REPLY TO THE MINETA LETTER
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