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HomeMy WebLinkAboutAssn of Railroad PassengersPAGE 1 4mg;; AAA m MONTANA/WYOMING Association of Railroad Passengers MTWYarp 2110 Wingate Lane Billings, Montana 59102 March 2002 AMTRAK REORGANIZATION What is the status of our project? What is the status of Amtrak? What is the status of rail passenger service in the United States? What is the status of long distance trains in this country? What is the status of the possibility of closing some long distance routes? This is the same questions as last month and the time is getting close that we will have an answer. Blackie Magilke and I went to the Region 8 meeting in Portland where we heard some reports from some people which made us feel better about what is going on. I do believe that Amtrak as we now know it is done. The future will be three companies or groups under one authority. One will be for equipment and infrastructure, one for corridor and light rail, and the third for Long Distance trains. Congress finally has come to the realization that train travel is a part of Public transportation. It is becoming more apparent that Congress in there infinite wisdom are realizing that Long Distance train service feed the Corridor trains they are so concerned about. The Congress people from the Northeast and East control what happens and it is up to us to make our voices heard. Besides sending letters to our Congressional delegation both in Montana and Wyoming (please send letters to their local offices as most of them check this daily, and call their DC officers and send emails), it is a good idea to contact other Congressional people like Sen Dachel of SD; Sen Murray of Wash; Sen Hutchinson of TX;; Sen Lott of Miss - Rep Quinn of NY; Rep Rahall of W Va. There are others in the House that need contacting also. FEASABILITY STUDY Recently an article appeared in many Newspapers about Amtrak stating they would not proceed with the feasability study. It stated that Amtrak had agreed to pay $98,000 for the study and the state $2000. It was stated that the $2000 to be raised into the fund set aside at last legislative session would be refunded. . We were told last summer the study would not be done by Amtrak and if it was to be done, we would have to pay for it by the money from private sources. I have reported this in previous issues, but it keeps corning !gyp. I received a phone call from Amtrak Public Affairs office appoligizing for the article. They claim the reporter was told it was a dead issue long ago, but the reporter did not state that. Now Amtrak has to explain to people why they were thinking of spending all that money when they have a money issue in Congress. We have not done anything about getting the money for a while because of the Amtrak situation and the uncertainty of whom to deal with back east. MEMBERSHIP We are asking each of you to recruit members, as the more we have, the stronger our voice. I know we stated we would drop members who had not paid for the current year. But that is how life works, nothing gets done without money. Our group is now recognized by the National Association of Railroad Passenger; the Washington ARP, and Association of Oregon Rail & Transit Advocates. I have been asked to submit my name to be a director of NARP. We shall see what happens. rAtffr L UUNIA61 us 4 z ?- NEWSLIBRARY ,SITE MAP BUSINESS u APINIRE M: DEATHS I' OITYBREOION • SPORTS • BUSINESS • NATIONAL/WORLD • OPINION • WEATHER • EVENTS • LIFESTYLES - ENTERTAINMENT • TRAVEL w To FRONT PAGE BUSINESS BUSINESS NEWS INVESTMENTS BUSINESS TODAY COLUMNS CLICK YOUR MONEY LOCAL MONEY BUSINESS PEOPLE PRODUCT RECALLS SEARCH THE PAST TEN DAYS. MORE OPTIONS or SEARCH OLDER STORIES BUFFALCINEWS ne ' Sdoscnbe and get ?aIF=es Gold Card! RAILROADS Ahead for Amtrak: Bigger subsidies, major changes By TOM BELDEN Knight Ridder 3/31/2002 PHILADELPHIA - The end of the line is not in sight for Amtrak. Tracking Amtrak's money A/Tfet 51 *1r: p-.1651 y-hlly'Mr6MJ-?W@ I e:l. p.1t Ngher IAMB-.1ve FEn4:IE1WnlA „^9k S:b5rkT.11Y N,mber of msengors Pesx•r.?tr vlatec v:er: 2061: 26.1. ..,.. rs, '03Rdlar ... tt?lia+ -- --------- - -------- - ------ Passenger trains will continue to run, certainly in the Northeast and , __ _ _ _ _ 1 03 _ _ _ _ _ _.: _ _ _ - probably nationwide, for years to come, say both Amtrak officials and - - others in Washington who control its'. ^^' future. But what is going on in Congress is the fiercest debate in years about how Amtrak is managed and how it should spend an annual taxpayer subsidy of more than $1 billion. Ultimately, Congress must decide among divergent views about the best long- range plan. But most of the approaches have in common a call for making the largest investment ever in modernizing the nation's passenger rail system. Two bills pending in the Senate call for spending at least three times more on passenger rail each year than the $1.1 billion operating subsidy Amtrak received in 2001. The Bush administration has promised it will have at least an outline of its long-range plan for Amtrak's future ready in the next few weeks. All the scenarios made public so far call for putting billions of dollars into track, bridges, tunnels, stations and equipment, which people on all sides of the debate say have been neglected for years. "The real issue is ... the capital shortfall," Kenneth Mead, inspector general of the U.S. Department of Transportation, told a Senate Commerce Committee hearing in March. "There is no future for Amtrak in the Northeast Corridor or anywhere else if we don't deal with the capital issue." Much of the debate, especially since Sept. 11, centers on Amtrak's role as part of an integrated transportation system that includes highways, aviation and rail. Amtrak President George Warrington, who is leaving his job this spring to run Ee Ll.,711 http://Nvww.buffalonews.com/editorial/20020331/1029690.asp 3/31/02 BUSINESS NEWS • I, . II, ircrr uo,.acy „anauo uvu nnura -, au onu u?a oymm n, ?ca.n vc? u,c ucvc,c u, Congress as a fundamental examination of what Americans want in a passenger rail system. "We spend more money in this country on cleaning up roadkill and on road salt than we do on intercity rail service," he said. The debate "is much less about what's broken historically and, fortunately, much more focused on this as a vital organization - not perfect but vital - and about making sure we define (Amtrak's) mission, and align its resources within that public policy." When the nation's airline system was thrown into crisis on Sept. 11, Amtrak's ridership went up temporarily. In the fourth quarter, Amtrak carried 1 percent fewer passengers than it did a year earlier, while domestic airlines carried 31 percent fewer passengers. Amtrak has received more than $25 billion in federal subsidy since it took over passenger service from private railroads in 1971. But its supporters point out that in that same time, the federal government has spent $750 billion on highways and aviation programs, much of it from special tax accounts that channel money into the programs. Amtrak has no special tax revenue designated for it, depending instead on Congress' allocating money each year. While Amtrak's ridership has not grown much in the last decade, it has increased by a total of 19 percent since 1996, the year after it reduced the number of trains it runs because of a budget crisis. Its ticket revenue has grown by 40 percent since 1996. Amtrak's widely publicized Acela Express service was two years late and $300 million over budget by the time it started in December 2000, but it is steadily turning into a moneymaker, Amtrak officials contend. The trains carried more than a million passengers in their first 14 months. And while an Acela ticket bought at the last minute costs $300 round-trip between New York and Washington, that is $100 less than a full-fare airline ticket. Competing pieces of legislation that would carry out two scenarios for the future are pending in the Senate. Legislation sponsored by Sen. Ernest F. Hollings, D-S.C., chairman of the Senate Commerce Committee, not only would keep Amtrak intact but would authorize spending $4.6 billion annually for five years to operate trains and make capital improvements. Sen. John McCain, R-Ariz., the ranking Republican on the committee, has legislation that would provide nearly $3 billion annually for five years, with the goal of turning Amtrak service over to private operators after four years. Congressional staffers and others, including Paul Weyrich, a conservative political activist who is vice chairman of the Amtrak Reform Council, say Hollings' bill has a good chance of passing in the Senate, but faces an uncertain fate in the Republican-controlled House. Even the reform council, a panel Congress set up five years ago to determine if the federally owned rail corporation could operate trains without taxpayer subsidy, has concluded that the nation wants and needs passenger trains - provided someone other than Amtrak runs them. The reform council concluded that Amtrak is a bloated bureaucracy, with poor accounting practices, that never will be able to efficiently run its own network, http://www.buffalonews.com/editorial/20020331/102 9690.asp 3/31/02 CONTINUED ON PAGE _3 -..-. ------r---- ---- America's long history of subsidizing transportation. IHIZL, 4 FACTS ABOUT TRANSPORTATION SUBSIDIES A paper by the Ohio Association otRad Passengers Much is made of the $30 billion spent on Amtrak over the last 30 years, but in that same period the federal government spent $1.89 TRILLION on air and highway modes, according to the Neu, York Times and Washington Post. The purpose of this paper is to document subsidies highway and air modes of transportation have received over the years. Much is made of the support Amtrak has gotten since its inception in 1971 by critics who overlook the huge amount of funding provided by all levels of government on behalf of the auto and airplane. As has been noted by well known conservative Paul Weyrich, of the Free Congress Foundation, the current transportation system, dominated by highway and air transportation is by no means a free market outcome. Rather it is the result of massive and sustained government intervention on behalf of these two modes. Indeed, before government became involved on this massive scale, most transit and intercity rail passenger systems were privately owned for-profit enterprises. U.S. Department of Transportation Funding, 2002: 532,300,000,000 54°,% Highways S14,000,000,000 23;6 Aviation/ airports $ 5,000,000,000 a Mass transit 5 4,000,000,000 a Maritime S 521,000,000 -I% Amtrak 560,000,000,000 TOTAL USDOT BUDGET Federal transportation funding 1971-2001 ill$ Air & highway funding 631 ratio 30,100,000,000 Amtrak funding -Sources: Aerr } ork Times, !t oshington Post Amtrak's entire budget accounts for less than one per cent of U'S Department of Transportation spending---5521 million vs. $33 billion for highways and $14 billion for air, not counting the post- Sep.ll bailout of $15 billion. -Source: USDcpartnient of Transportation http:/hsutiv.trainweb.org/moksrailladvocacy/resources/subsidies/transport.htm 3/26/02 Federal transportation funding 1921 to 1971, the year of Atntrak's creation: 1921-1971 * 1947-1971 ** 1958-1971*** $72,400,000,000 C? $50,000,000,000 Highways $16,200,000,000 511,300,000,000 Aviation/ airports $ 9,100,000,000 ??? Water 5 65,000,000 ??? Rail ?? $50,000,000 Bus subsidy- annual 'xSource: Passenger Train Journal 1973 **Sources: Report to accomptnn• S. 3706, Rail Passenger Semce Act of 1970, 91st Congress, ?no' Se.ss-ron, April 9,19 70 and R.L. Banks, Ls Subsidy... ***Sottrce: USDOT, "Stutdvof Federalaidto Transportation"au1R.L.BonksandAssociates. "Is.SubsidyUnique to .-Inrtrak?" About User Fees.., they don't pay the bills User fees only account for about 60% of highway spending by all levels of government. The rest comes from non-users and in 1990, non-highway users subsidized roads at the rate of S IS billion per year. -Source: Mighn'nt'Siati.stics 1990, Tables llF--10 and S11T, Federal lfighu'av. Idntini.stration Air passengers did not pay user fees between 1963 and 1971, ironically the year Amtrak began operation. "Airport and airway development costs incurred prior to the assessment of user charges in 1971 have been treated as sunk costs, none of which will have been or will be paid for by air carriers... these sunk costs total S 15.8 billion." -.Source: Srudr of Federal Aid to Raid Transportation, LSDOT 1977 Railroad passengers paid for airport construction through special tax! Between 1942 and 1962 a 10% rail ticket tax was levied on railroads as a war measure to discourage unnecessary travel. This tax generated revenues of over S5 Billion, which went into the general revenue fund and ironically, was used in some v cases to build more airports and highways. In today's dollars, that probably would amount to about 5100 billion and one wonders what would have happened if that money had been invested in rail service after the war. By the time, the tax was lifted, the passenger train was already on the ropes. - .Source: report by GSDOT Secretary William Coleman, 1977 Air passengers also paid a federal passenger tax, also as a war emergency measure, but the government was busily investing in air facilities at five times the rate at which taxes were being collected. -Source: Study ofFederal.-lid to Rail Transportation, ESDOT, Jan 1977 Airlines don't even pay HALF of FAA cost Between 1980-1989, total spending by the Federal Aviation Administration (FAA) was 554.9 billion. Of that amount, less that half, 45.1% came from user charges. The rest, 54.99.'0 came from non-users through the general revenue fund. -Source: Office of.tlonagemen and Budget http://ww%v.trainweb.orglmoksrailladvocac},lresources/subsidiesltransport.htm 3/26/02 PAGE 6 ' Federal support for transit AWOL Federal support for transit and intercity rail is relatively recent: 1964 for transit and 1971 for intercity rail. By contrast, the federal government has supported road and waterway construction almost from Revolutionary times and air since the 1920's. It was not until 1973 that a portion of the federal gas tax could be used for transit. It still is off-limits for intercity rail. i'arious sources U.S. has a Third-World rail transportation system According to a study by the International Railway Journal, the United States ranks between Bolivia and Turkey in mainline railroad spending per capita at $1.64. The average is $21.85, with a high of $228.29 for Switzerland and a low of $.29 for the Philippines. Between 1971 and 1994, capital spending for Amtrak has never exceeded S220 million in any year... about the cost of a mile or two of urban freeway. On that, Amtrak is supposed to make the investments to become profitable. -Source: The--Amtrak Ston, by Frank Milner Years ago, transit and intercity railroads were privately operated for-profit enterprises. This changed when all levels of government began subsidizing highway and airport construction, which ultimately led to the demise of all privately run service. The irony is that the government has had to step in to preserve what was left of these services. The navine of America... The federal involvement with highways aces back to 1905, when the Bureau of Public Roads was. created. In 1916, President Wilson signed the Federal Aid Road Act, which dedicated S5 million to help states build new roads. This marked the beginning of federal revenue sharine with states for road construction. In 1921, the US Congress set a goal of linking every county seat in the nation with smooth surface roads. -.Source: The:Anitrak Stone Frank l171ner Between 1958 and 1971, the year of Amtrak's creation, the federal government spent more than S50 billion on highways and at the same time, the government subsidy to intercity bus operators grew to S50 million annually. -.Source: CSDOT, "Stue/Vof Federal aidtoTransportation"ondR.L.Banks and-associates, "IsSubsideUnique to:Lnrrah,?" There he goes again... When the Reagan Administration claimed that each rail passenger required a S35 subsidy, Amtrak President Graham Claytor countered that air passengers were subsidized at $42 each, including $9 for the air traffic control system. -Source: GS Vevs and Ilbrld Report, April 29, 1985 If the airlines had to pay for the cost of the at traffic control system, as Amtrak now pays for the upkeep of the Northeast Corridor, they would soon be out of business. In 1989, it cost the federal government S3 billion to operate the system vs. the combined net profit of $1 billion for the airline industry. -Source: "Supertains: Solutions to Jrnerica:s Transportation Gridlock, Joe I'ranich Feds build airports but tax train stations to death... Washington's National Airport was built with S36 million in federal funds and between 1941 and 1957 had cost S4 million to operate; the airport paid no taxes. At the same time, Washington Union Station was valued at S32 million and paid more than S6.9 http:/hvww.trainweb.org/moksrail/advocacy/resources/subsidies/transport.htm 3/26/02 a tl LrL I million in taxes -Source: Trains 1/aga:ine The Pennsylvania Railroad modernized its Pittsburgh station in the 1950's only to see the taxes increased and the money spent to improve the Greater Pittsburgh International Airport. In 1955 alone, railroads paid $92 million in taxes on passenger related facilities. -.source: "Superrain.s: Solutions to.-Imerica's Transportolion Gridlock." The Essential Air Service Program subsidizes air service to small cities, which would not otherwise be served by air carriers. This amounted to $25 million in 1989 for a small trickle of customers. For example, at Manitowoc, Wisconsin when an average passenger boards a flight, the fare is $89, but the subsidy is $515! This city is only 39 miles from Green Bay, where more service is readily available. - Source: Supertrains Some other interesting federally-funded transportation projects: $12 000 000 000 Los Proposed LAX expansion I F , , , $ 5,400,000,000 Angeles Atlanta (1/20/01) Hartsfield International Airport expansion Georgia's largest public works program ever $ 3,400,000,000 St. Louis Airport expansion $ 3,000,000,000 Washington Dulles Airport expansion S 521,000,000 = FUS E;;J Amtrak funding yearly ? LAX aesthetic uPgrade Servin- 530 U.S. cities in 46 of 50 states V Note how Atlanta's expansion - one airport project - is NINE TIMES Amtrak's current appropriation. Other road and waterway federally-funded projects: $654,000,000,000 Maryland State ports expansion Is 1,000,000,000 Louisiana Expansion of Red River Waterway Is 13,000,000,000 Boston "Big Dig" freeway 20-year expansion project IS 6,000,000,000 I-95 Wilson bridge project $ 3?00,000 Alabama Two-mile highwa widening cost. y r Alabama Cost to provide passenger train service to Montgomery, Mobile, 3,000,000 Birmingham For the same amount of money, the state of Alabama could fund a 200-mile passenger train route that would serve many more citizens than widening an EXISTING two-mile roadway. Such passenger train would serve Birmingham, Montgomery, Greenville and Mobile - half of the state! http://www.trainweb.org/moksrail/advocacy/resources/subsidies/transport.htm 3/26/02 CONTINUED ON PAGE CONTINUED FROM PAGE 3 propeny maintain ana improve the iracK it owns in the noston-to-vvasnmgton Northeast Corridor, or extend high-speed trains to other parts of the country. "The council's view is that there should be a bright future for passenger rail service in America," Tom Till, the panel's executive director, testified at a House subcommittee hearing in February. "But the council believes that passenger rail service will never achieve its potential as provided and managed by Amtrak. A new and different program is needed to move forward." Till, in an interview, said one thing the reform council did not recommend was emulating the way Britain sold its rail infrastructure to private operators. There, system reliability has plummeted, fares on many lines have soared, and Railtrack, the company created to maintain tracks and stations, went bankrupt in October. Government officials estimate that it may take $100 billion to make the system reliable again. Amtrak President Warrington, defending Amtrak's performance, said investment in rail needed to be coordinated with the tax money the federal and state governments put into highways and aviation. "It's time for the federal government, the Congress and the administration ... to accept responsibility for defining the system this country wants and needs over the next 10 to 20 years," he said. "The highway and aviation systems are built out. If you look forward to growth ... the most underutilized asset this country has is rail." U.S. Transportation Subsidies CONTINUED FROM PAGE The facts above point up two things: That government does not have a real, coherent transportation policy that takes into account the needs of all modes. Instead one or two modes gorge at the federal trough while everyone else starves. The other point is that ALL modes are subsidized. Why? Because it is in the public interest and transit or rail should not be subject to an unrealistic set of expectations no other mode has to live up to. Nole: Original paper eras modified and expanded ivilh adclilional delails fiv MOKS Rail. Top of nab Back to subsidies MOKSRail home AW-A PAGE 9 The signers of this petition all agree we need Long Distance trains in this country and want the Congressional delegates from our state to support legislation of dollars to support the operation and maintenance of them. (Make all the copies you want) (When the form is full make three copies: send original to MTWYarp 2110 Wingate Lane, Billings, Mt 59102; a copy to each Senator and a copy to your House Representative and send to their office nearest you as soon as possible) SIGNATURE CITY AND STATE MONTANAIWYOMING ASSOCIATION OF RAILROAD PASSENGERS 2110 WINGATE LANE BILLINGS, MONTANA 591 406-652-1339 jimabiff(cDearthlink.net PRESORT STANDARD D ECE APR 1 E 2002 2CITY OF LAUREL U S Postage paid Billings, Mt 59101 Permit No 471 Mayor, City of Laurel Laurel, Mt 59044 REGION 8 THIS EDITION OF THE OFFICIAL NEWS FOR "MT/WY ARP " IS WITH THE SUPPORT OF THE FOLLOWING BUSINESS WE ASK YOU TO SUPPORT THEM!! WE NEED MORE LIKE THEM. CHICO HOT SPRING RESORT PRAY, MT 406-333-4933 LEWIS TREE SERVICE 225 SHERMAN ROCK SPRINGS, WY 307-382-8675 ACKLEY PAINTING 2009 So 9' St W. MISSOULA, MT 406-728-2178 THE BEANERY BAR & GRILL BILLINGS NP DEPOT COMPLEX 2314 MONTANA AVE BILLINGS, MT 896-9200 RAY HUNKINS SUPPORTS OUR PROJECT Last year the meeting was in Washington State, this year in Oregon State. We were asked and we accepted to host the 2003 meeting. We would like to have it along where the Builder serves. It would be nice in the Park but they do not open until 5/23. So we thought either Whitefish or Shelby. If our group had a good showing we could have a. couple of hundred attend. Out of state will amount to about 75. We need to get speakers, meeting place, and lunch for those attending. The WA & OR people could arrive in Morning either place, we hold the meeting and they could leave in afternoon. We need your input and commitment to help, and attend. Shelby would be easier for our friends in Wyoming to attend. It would be not much more than for us in Billings. Also we have asked the National Board to transfer Wyoming into Region 8 from the present Region they are in which meets in Nebraska this year. OUR GROUP We want each of you to know that this project is going to be a tough battle and will not be consummate over night. We started this project and plan to see it to the end and we hope each of you are with us. We did not start this with the idea it would be easy. If you believe and are committed to Passenger Rail travel in Montana and Wyoming then help us get more members; help us do our share in being the host to Region 8 next year and continue to pay your dues. Do not let rumors discourage you, as they are as plentiful in this project, as they are in any other project.