[Congressional Record Volume 144, Number 51 (Thursday, April 30, 1998)]
[Senate]
[Pages S3915-S3916]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                                 AMTRAK

  Mr. LOTT. Mr. President, I am concerned about Amtrak's future. Though 
Congress has worked to ensure its continued existence, the 
Administration has yet to fulfill its statutory responsibilities which 
are necessary if Amtrak is to have any hope of turning into a viable 
operation.
  As my colleagues well know, the Senate has invested countless hours 
during the past several Congresses to enact legislation that would 
enable Amtrak to reinvent itself, both operationally and financially. 
After three long years, Congress achieved a bipartisan reform package 
that was signed into law by the President on December 2, 1997.
  This package, the Amtrak Reform and Accountability Act, was touted as 
Amtrak's ``last chance.'' It provided significant changes, allowing 
Amtrak to operate more like a business. Congress expected Amtrak to 
immediately begin implementing the many reform provisions. Certain 
responsibilities concerning Amtrak's future were assumed by Amtrak's 
union and management employees, the American taxpayers, Congress and 
the Administration.
  For their part, Amtrak's employees agreed to negotiate employee 
benefits just like other segments of industry in exchange for financial 
security. The taxpayers contributed considerably--$2 billion for 
capital improvements in addition to the $22 billion already given to 
Amtrak to date.
  Congress fulfilled its part of the deal, too. The Congress appointed 
its members to the newly created Amtrak Reform Board. Further, the 
Senate recently adopted a provision in the budget resolution urging 
full funding for Amtrak to enable it to reach its goal of zero 
operating assistance by 2003.
  Who is missing from this effort? Mr. President, I content it is the 
Administration.
  In the past months, the Administration has missed numerous deadlines 
and issued contrary proposals.
  First, the law requires the Department of Transportation (DOT) 
Inspector General to begin an independent audit of Amtrak's financial 
situation. The audit was supposed to begin within a month of enactment, 
which would have been this past January. The DOT Inspector General has 
worked to abide by the statute, but the Secretary of DOT has refused to 
allow the audit to go forward. DOT's refusal prompted both the House 
and Senate Appropriations Committee to provide specific funding to 
cover the audit's expense. DOT knows that funding is on its way, yet 
the Secretary has refused to permit the IG to begin the process.
  Second, the law required the President to nominate a new 7-member 
Reform Board to replace Amtrak's current Board of Directors. Since the 
reform package required Amtrak to operate like a business. Congress and 
the Administration agreed that new leadership was imperative. After 
all, instilling a `new culture' among Amtrak employees and management 
necessitated that changes start from the top.
  The law requires the Reform Board to be in place by March 31, 1998--
almost 1 month ago--yet we still have not received a single nomination 
from the President. Most troublesome is the fact that if the new Reform 
Board has not assumed the responsibilities of the Amtrak Board of 
Directors before July 1st, Amtraks' authorization lapses. I do not 
think the Administration would want this to happen.
  Mr. President, in addition to the Administration's recent 
shortcomings, it has also failed to announce the names of individuals 
who will fill the Administration's three slots on the Amtrak Reform 
Council. Because the Council is expected to play a critical role in 
formulating passenger rail in the years ahead, I have encouraged the 8 
members appointed by the Congress to begin their work. I understand the 
first meeting of the Council should occur in early May.
  The only action taken by the Administration thus far has been to 
propose a budget that underfunds Amtrak in fiscal year 1999. The 
Administration's budget submission seeks to take money away from 
capital expenditures and to use it to pay for Amtrak salaries and 
operating expenses. This diversion proposal is in direct violation of 
the statutory language in the law which established the capital funding 
subsidy.
  Ms. HUTCHISON. Mr. President, I share the Majority Leader's concerns 
about Amtrak. As the primary author of the Amtrak reform law, I am very 
concerned that Amtrak has yet to have the opportunity to avail itself 
of the statutory reforms we all worked so hard to provide. The Amtrak 
Reform Council positions are an essential element in the overall reform 
scheme.
  Amtrak needs to make long-term plans and commitments. That action has 
not yet begun. I hope the Administration will take prompt action to 
fulfill its responsibilities and give Amtrak the opportunity to achieve 
what we all hope is possible--a fiscally sound and efficient national 
rail passenger system.
  Mr. McCAIN. My colleagues know all too well my frustrations with 
Amtrak. However, I worked in good faith with my colleagues and the 
Administration to move the Amtrak reform legislation through the 
legislative process. Therefore, I expected similar ``good faith'' to be 
applied in fulfilling the statutory provisions under the Act.
  I find it unconscionable the Administration continues to obstruct the 
independent assessment. This is one of the most critical elements in 
the entire reform package. How can anyone determine if Amtrak is 
meeting its financial obligations if we don't have a baseline to start? 
What is it about Amtrak's finances the Administration is trying to keep 
covered up?
  Equally troubling to me is the Administration's lack of regard for 
upholding the statute. A new Reform Board was to be in place nearly a 
month ago. These positions require Senate confirmation which 
necessitates hearings and review by the Commerce Committee. I have 
every intention to uphold our Committee's responsibilities. Yet, we 
have not received even ONE nomination from the President.
  Worse still, the rumors we hear is that the Administration is 
considering reappointing current Board members. I have been very clear, 
that the Commerce Committee will not report favorably any Board hold-
overs and I stand firm on that position. I would think even the 
Administration would acknowledge we didn't create a new Board only to 
reappoint the same members.
  Why isn't the Administration interested in fixing Amtrak's problems 
while it is under their watch? I never cease to be amazed.

[[Page S3916]]

  Mr. President, the Congress worked long and hard in a bipartisan 
fashion to give Amtrak one more opportunity to do what they keep 
telling us they can do given the chance. The President let Amtrak, 
Congress, and the taxpayers think Amtrak was being given that chance. 
Sadly, the Administrations subsequent lack of interest is quickly 
taking that chance away.

                          ____________________