Hotline #716

Wisconsin voters passed an important constitutional amendment on April 7, on a 58-42% margin. For the first time, the state may spend capital money on passenger and freight service. Because of this vote, and because of Governor Thompson's pro-rail outlook, it is expected that improvements will be made in the next few years, including improved Chicago-Milwaukee service and service to Green Bay and Madison.

The U.S. Senate Transportation Appropriations Subcommittee had a hearing yesterday on Amtrak and FRA funding in 1993. Chairman Frank Lautenberg (D.-N.J.) spoke strongly against the Bush Administration's proposed budget, calling it "misguided and destructive." He blasted the Administration's plans to eliminate Northeast Corridor Improvement funding. Amtrak President Graham Claytor told the subcommittee he went to California this week for meetings with the three CalTrain counties. They approved negotiations with Amtrak; it appears Amtrak will get the contract to run the San Francisco-San Jose commuter service starting July 1. The counties have ruled out the consortium led by ATE Management because, after the award was given to ATE, ATE told the counties that they would have to come up with $100 million in liability coverage.

Claytor also testified about Amtrak's "exciting, preliminary plan" to move its intercity operations into the majestic James A. Farley Post Office across from Penn Station in Manhattan. Penn Station would be turned over to the Long Island Rail Road and New Jersey Transit.

Referring to a letter to House Energy and Commerce Chairman Swift that NARP's Harriet Parcells wrote and circulated for co-signing, Claytor testified, "The trust fund proposal is beginning to gain considerable support and recently was endorsed by a coalition of 23 environmental organizations, including the Sierra Club, the Natural Resources Defense Council, and the Campaign for New Transportation Priorities."

The full House Energy and Commerce Committee on April 7 unanimously approved H.R.4250, the two-year House Amtrak reauthorization bill, with no changes from what the subcommittee approved on March 5.

The Province of Ontario is giving the Algoma Central $9.5 million to maintain its passenger and freight service north of Sault Ste. Marie.

American Airlines yesterday instituted what one analyst called the biggest fares restructuring since deregulation in 1978, to be promoted with American's biggest-ever advertising campaign. It's too soon to know the impact on Amtrak. Round-trip "maxsavers" still generally cost more than Amtrak's round-trip discount tickets. However, American's discounts have been reduced and restrictions liberalized, so for example you can change flights for a nominal surcharge rather than lose the value of the ticket. If big discounters America West and TWA respond by undercutting American, this would seriously affect Amtrak.

However, Amtrak is not worried about American's new $90 New York-Washington round-trip fare, though it is much lower than the Metroliner $166 weekday/$114 weekend fares. American requires 21-day advance purchase, uses small commuter planes, and flies to Kennedy Airport as these flights are meant primarily to feed international flights.

An important and positive front-page feature article on New Jersey Transit was in the April 8 Wall Street Journal. It ran under the headline, "States Try New Tactic to Curb Auto Traffic; Cut Highway Spending -- NJ is in forefront with ambitious plan for building mass transit."

The following were elected April 4 to the NARP board from Region 6 -- Paul Arden, Mark Carlson, Howard Harding, Don Hurst, Jim Stevenson, and Mike Weber. From Region 10 are Cathy Johnson and Dan Lutz. These were the last region meetings of the year. The board will meet in Rockville, Md., April 30 through May 2.