Letter: Senators Warner and Allen and Representative Moran on Amtrak

2 comments

1. February 13, 2003

   Mr. James Landrith
   P.O. Box 8208
   Alexandria, Virginia 22306-8208

   Dear Mr. Landrith:

   Thank you for contacting me regarding the funding and operation of Amtrak. I appreciate having the benefit of your views on this very important transportation matter.

   During the 108th Congress, I look forward to working with transportation leaders to reauthorize funding for the further development and improvement of our nationwide passenger rail network. Since election to the U.S. Senate in 1978, I have been an advocate of multi-modal solutions to the country’s transportation problems, including an emphasis on the importance of passenger and high-speed rail.

   A successful passenger rail network is important to our multi-modal transportation solution. Over 23 million passengers ride Amtrak annually, almost 1 million in Virginia alone, throughout the 46 states where service is provided. Americans have registered their strong support for Amtrak and the service it provides. However, several problems with the current passenger rail network must be fixed. Congress must focus on improving management accountability, funding levels, and the overall corporate strategy. Over the last five years Amtrak’s total revenues have grown by 38% and nationwide ridership has risen by 19%. However, federal operating support has been cut by more than 80% during that period of time. Clearly, more needs to be done to create an environment where passenger rail can provide an efficient and cost effective service to the nation.

   In December of 1997, Congress passed the Amtrak Authorization bill (Public Law 105-134), which authorized $5.2 billion in funding through FY 2002. This bill also contained provisions mandating Amtrak’s operational self-sufficiency by the end of FY 2002 or the potential liquidation of the railroad service. The Amtrak Reform Council issued findings in November 2001 declaring Amtrak would not meet this deadline. After and emergency bridge loan in 2002, Amtrak requested $1.2 billion in funding for FY 2003 to safely operate their current network.

   As you may know, the Senate recently approved and appropriation level of $1.2 billion in the FY03 Omnibus Appropriations bill (H.J.Res.2) for Amtrak, the stated amount required to continue operating its national network of intercity passenger trains. The House FY03 DOT Appropriations bill included a funding level of $762 million. The two versions of the bill are now in a House-Senate Conference Committee to work out differences. I was supportive of the $1.2 billion level of funding in the omnibus bill, and have expressed my support, along with several of my colleagues, to the Senate Conferees.

   Please know that as reauthorizing legislation is considered before the Senate, I will keep your comments in mind. Please let me know if I can be of further assistance.

   With kind regards, I am

   Sincerely,

   John Warner,

   JW/krw

   Reply

2. March 14, 2003

   Mr. James Landrith
   PO Box 8208
   Alexandria, Virginia 22306

   Dear Mr. Landrith:

   Thank you for contacting me regarding current federal action to keep Amtrak running. I appreciate your comments.

   Since Amtrak’s creation in 1971 from the bankruptcy of several private passenger rail services, Congress has provided an annual appropriation to support Amtrak’s operations. This funding has allowed the railroad to operate, but prevented major investment needed to upgrade, and at times, even maintain its infrastructure. The funding level reflected an assumption by some that the railroad would become self-sufficient. This assumption ignores the fact the railroads that helped develop the west and bind this nation through commerce received large land grants and often direct federal appropriations. Similarly, all modes of transportation receive some form of public subsidy.

   As you know, Amtrak’s financial situation took a turn for the worse last May. Amtrak President, David L. Gunn, announced that the impending financial crisis would force Amtrak to terminate most rail service beginning the week of June 30th, Termination of service would affect not only Amtrak’s regularly scheduled passenger service but hundreds of thousands of commuter rail riders who depend on Amtrak’s trains, its operators, or tracks. The 10,000 daily commuters who use the Virginia Railway Express, for example, risked losing their service.

   News of Amtrak’s imminent insolvency, prompted the administration and Congress to consider potential remedies. In late June, the railroad came to an agreement with the Bush administration on a short term solvency plan that will involve an immediate $100 million federal loan, up to $170 million in additional short-term aid as a grant, loan or loan guarantee that Congress must first approve, and a number of changes in operations designed to save on future operating costs. These changes include stricter financial accounting and reporting, a outside review by consultants to assess the value of its property, and a suspension of any salary increases or bonuses for employees earning more than $75,000. Also, as part of the agreement, Amtrak agreed to work with its employees to achieve substantial cost reductions. I would support an extension of these management reforms as part of any future assistance package.

   For your consideration, I invite you to visit my new and updated website at http://www.house.gov/moran that contains information on topics that may be of interest. Thank you again for contacting me.

   Yours truly,

   James P. Moran

   JPM/tba

   Reply

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