[Congressional Record Volume 142, Number 99 (Monday, July 8, 1996)]
[Extensions of Remarks]
[Page E1216]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES APPROPRIATIONS ACT, 
                                  1997

                                 ______
                                 

                               speech of

                         HON. JAMES L. OBERSTAR

                              of minnesota

                    in the house of representatives

                        Thursday, June 27, 1996

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 3675) making 
     appropriations for the Department of Transportation and 
     related agencies for the fiscal year ending September 30, 
     1997, and for other purposes:

  Mr. OBERSTAR. Mr. Chairman, I greatly regret the $110 million cut in 
Amtrak capital funding for fiscal year 1997, from the $230 million 
level for the current fiscal year.
  It is clear that this Congress and this administration want Amtrak to 
be free of operating assistance by fiscal year 2002.
  The budget resolution passed this year for fiscal year 1997 and the 
one passed last year put Amtrak on a glide path of operating support 
declining to zero. Our Transportation and Infrastructure Committee 
brought a bill to the House to reauthorize Amtrak last year, which 
passed by a vote of 406 to 4. This legislation also constructs a 
gradual phaseout of Amtrak's operating support by 2002. Amtrak's own 
business plan also eliminates the need for Federal support by 2002. In 
other words, with the funding plan in our budget resolution and passage 
of reform legislation, we have made a pact with Amtrak. We have told 
them to do what no other national passenger railroad in the world has 
been able to do: Be free of operating support. This is a major 
accomplishment and one that Congress should encourage. In exchange, we 
offered a structured funding phaseout and passage of cost saving 
legislation.
  The fact is that from 1995 to 1997, Amtrak's funding levels are $1.2 
billion less than what they requested and what they said was necessary 
for operating self-sufficiency. We cannot expect them to continue to 
operate a national system with such deep cuts.
  Instead, with this funding level for Amtrak, Congress has moved away 
from the blueprint envisioned in the budget resolution. Without 
adequate capital funds during this critical transition period, Amtrak 
cannot make the essential investments necessary to survive once 
Congress has provided it with its last dollar of operating support. 
Also, while the House did pass reauthorization legislation, the Senate 
has failed to do so. Therefore, Amtrak does not benefit yet from any of 
the cost savings contained in that bill.
  It is clear, and we all agree, that Amtrak should be free of 
operating support and should have less dependence on Congress for its 
funding. However, without adequate capital funds now, Amtrak will 
forever be dependent on Congress to meet its operating deficits.
  A railroad is a capital intensive enterprise. It's fair to say that 
Congress has kept Amtrak on a Slim-Fast capital investment diet for the 
better part of its 25-year existence. As a result, Amtrak has not been 
able to modernize its locomotive fleet by purchasing more reliable and 
fuel-efficient engines. Their maintenance shops date, in many cases, to 
the steam era and need to be upgraded. The electric wires that are used 
on the Northeast corridor are the same ones the Pennsylvania Railroad 
first strung in 1993. If we don't give Amtrak the ability to reinvest 
now, we will never get them to a legitimate point of self-sufficiency.
  This is a pivotal time for a national passenger rail policy. It's 
like the old saying: ``Pay me now or really pay me later.'' Should 
Amtrak become insolvent, the liability to the Federal Government is 
going to be a far greater cost to the taxpayers than giving Amtrak the 
funds needed to successfully transition to self-sufficiency.
  Literally, it will cost more money to put Amtrak out of business than 
to keep it in business.

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