Hotline #761
February 18, 1993
President Clinton's economic stimulus package was revealed last night in the State of the Union address and it had good news for supporters of balanced transportation. Also, last night's address was the first to mention "high-speed rail."
Of $4.2 billion in added 1993 transportation funding, Amtrak would get $188 million, part of it for recalling the laid-off Beech Grove maintenance workers. Highways would get $3 billion more (their full ISTEA amount), but transit would get $750 million more, only about half of what is needed for full funding. However, states can "flex" some of that highway money to transit, and Secretary Pena has said we can expect full ISTEA transit funding in the 1994 budget next month.
As part of a longer-range, $14-billion transportation package, Clinton would fund the full ISTEA $725-million maglev/high-speed rail program and add $466 million, creating a $1.4-billion pot of money that could potentially all be used for high-speed rail, all for maglev, or for some combination.
Clinton's energy tax proposal is very good. It would be phased in over two years beginning in July 1994 and consist of two tiers. Natural gas, coal, and nuclear power would be taxed at a rate of 25.7 cents per million Btu's. But petroleum would be taxed at more than double that, at 59.9 cents per million -- an attempt by the Clinton Administration to make up for the hidden environmental costs of petroleum dependency.
The American Petroleum Institute says the effective rate for petroleum and jet fuel will be even higher because, for competitive reasons, the price of bunker oil used by the industry cannot be raised to fully pass through the new tax. We say, "Good!" The API and the American Trucking Associations have already been in the media whining about the energy tax. We must defend this very good proposal.
Clinton also would extend the deficit-reduction pennies of the federal gas tax, which is good because we want one of them to be the Amtrak penny.
Please tell your Senators and Representatives immediately that you like the Clinton proposals, particularly the Amtrak money and the energy tax. Call and write, because things will move fast now. In fact, a House hearing will be held February 22 with a Transportation Appropriations mark-up on February 23, full committee mark-up on February 24, and a vote on the full House floor February 25.
Beyond all of that, Amtrak wants a $58-million supplemental appropriation for 1993 with $15 million for equipment overhauls that don't qualify as capital projects, $13 million to restore advertising and sales support and on-board and station staffing, and $30 million for cash reserves.
Amtrak wants to build a new, separate station at New Rochelle, N.Y., but doesn't have the $11 million to pay for it. The city fought Amtrak on a similar plan several years ago that would prevent convenient transfers between Amtrak and Metro North.
The New Jersey Transit board approved on February 10 a 15-mile Waterfront light-rail plan. All previous bus plans were removed. The New Jersey Association of Railroad Passengers and NARP both worked hard to reach this point with Waterfront light rail.
Tri-Rail will honor former House Transportation Appropriations Chairman Bill Lehman (D.-Fla.) in a public ceremony at Hollywood, Fla., at 11:30 am on March 5. They will name a locomotive after him.
VIA Rail Canada has a new chairman. He is Mark Lefrancois, a Montreal businessman and Tory leader. He was appointed to a five-year term by Prime Minister Mulroney.
An unusual incident interrupting TGV service in France on February 14 got some press coverage in the U.S. A man traveling from Paris to Toulouse dropped his wallet down a toilet and got his hand stuck. He was removed from the train with the toilet bowl still on his arm.