[Congressional Record Volume 151, Number 45 (Friday, April 15, 2005)]
[Extensions of Remarks]
[Pages E668-E669]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    INTRODUCING THE AMTRAK REAUTHORIZATION ACT OF 2005 AND THE RAIL 
   INFRASTRUCTURE DEVELOPMENT AND EXPANSION ACT FOR THE 21ST CENTURY

                                 ______
                                 

                         HON. JAMES L. OBERSTAR

                              of minnesota

                    in the house of representatives

                        Thursday, April 14, 2005

  Mr. OBERSTAR. Mr. Speaker, today I join Chairman Young, Railroad 
Subcommittee Chairman LaTourette, and Subcommittee Ranking Member 
Brown, in introducing two bills: the Amtrak Reauthorization Act of 2005 
and the Rail Infrastructure Development and Expansion Act for the 21st 
Century (RIDE 21).
  The Amtrak Reauthorization Act of 2005 will provide Amtrak $2 billion 
for each of Fiscal Years 2006 through 2008. RIDE 21 will provide $56 
billion for new high-speed rail development for passenger and freight 
rail improvements. Last Congress, I joined Chairman Young, Subcommittee 
Ranking Member Brown, and the former Chairman of the Railroad 
Subcommittee, Congressman Jack Quinn, in introducing these bills. The 
Transportation and Infrastructure Committee reported the bills, but 
unfortunately, no further action was taken. This year, we have a new 
Chairman of the Railroad Subcommittee. We talked about what we wanted 
to do on Amtrak and high-speed rail, and we all agreed that these bills 
are the right approach.
  The wrong approach is the President's plan: zero-out funding for 
Amtrak; eliminate the high-speed rail program; and provide $360 million 
to the Surface Transportation Board to run commuter operations should 
Amtrak shut down. In short, the Administration's plan is to pass 
legislation that, if enacted, would destroy Amtrak and our Nation's 
intercity passenger rail system.
  The Administration, in a letter sent to the Speaker of the House 
yesterday, said that Amtrak has not evolved with the rest of the 
transportation sector and that structural reform is needed to make 
Amtrak a viable transportation alternative. Well, to the extent there 
is any truth to allegations that Amtrak hasn't evolved like the rest of 
the transportation sector, there is a good explanation. For too many

[[Page E669]]

years our Nation's passenger railroad has been treated as an unwanted 
stepchild. Year after year, Congress has shortchanged Amtrak. Even in 
the area of security, while we have enacted legislation protecting 
airlines from the threat of terrorist attacks, we have done virtually 
nothing to protect our railroad infrastructure and those who rely on 
it.
  Amtrak has survived despite a severe lack of funding and an annual 
threat of elimination, which has conditioned Amtrak to focus on 
survival. Railroads throughout the world receive some government 
support to supplement the revenues paid by passengers. The 
Administration has not accepted this and every year proposes inadequate 
or no funding. A period of uncertainty follows, at the end of which 
Congress usually provides more than the Administration has requested, 
but sometimes less than Amtrak needs. I challenge anyone in this 
Congress to name one company who can develop and implement a 5-year 
capital and operating plan without knowing if they'll have any money 
for it the following year. That company would fail. That's not an 
option for Amtrak. It's our responsibility to ensure that Amtrak 
survives.
  Without Amtrak, millions of passengers--many of who cannot afford to 
buy a plane ticket or for whom driving is impracticable--would be 
stranded. Without Amtrak, millions of travelers would be added to 
already congested roads and airports. Amtrak's 20,000 workers would be 
out on the streets looking for new jobs. Local economies and businesses 
that have benefited from Amtrak's service would suffer. States already 
under tight budget constraints would be forced to figure out how to pay 
for new service.
  Without Amtrak, the Railroad Retirement and Unemployment programs, 
which cover employees of all railroads--freight and passenger--would be 
in dire straights. According to the Railroad Retirement Board, without 
the participation of Amtrak, employer and employee payroll taxes would 
need to be increased from the current 16 percent to 27 percent in 2027. 
Those tax increases, however, would ultimately be insufficient and 
serious cash flow problems for Railroad Retirement would begin in 2031.
  Without Amtrak, cash reserves for the Railroad Unemployment Insurance 
Account would be exhausted by 2006, and nearly $297 million would have 
to be borrowed from the Railroad Retirement account to make up for 
losses. The Board informs me that ultimately Amtrak's unemployment 
benefit costs would be borne by other railroads.
  Without Amtrak, the commuter operations that serve millions of 
passengers along the Northeast Corridor, Chicago, and the West Coast 
would halt. These operations, which include SEPTA in Philadelphia and 
New Jersey Transit, require the use of Amtrak infrastructure, such as 
catenaries. They also require the continuation of Amtrak's dispatching 
system.
  Yet despite chronic underfunding, Amtrak has had its successes. Under 
David Gunn's leadership, Amtrak has improved operations in some markets 
and increased ridership to over 25 million passengers in 2004: an 
increase of one million passengers from 2003 and a new Amtrak record.
  Ridership on short-distance routes in the West is up 11.7 percent. 
The Pacific Surfliner, serving Southern California, showed the largest 
increase in ridership, with a gain of 26.3 percent. Midwest trains 
experienced the next largest increase in passengers.
  Amtrak has also made significant progress in rebuilding 
infrastructure and rolling stock after years of deferred maintenance. 
In Fiscal Years 2003 and 2004, 256,000 concrete ties were laid; 2,755 
bridge ties were replaced; 266 miles of continuous welded rail were 
installed; 34 miles of signal cable were replaced; and 19 stations and 
37 substations were improved.
  Amtrak's mechanical department plowed full steam ahead. In 2004, it 
remanufactured 180 passenger cars; rebuilt 51 wrecked cars and 
locomotives; and made seven Superliner baggage modifications in 
passenger cars.
  Excess equipment was sold, unprofitable services were eliminated, 
fares were lowered on long-distance routes to increase ridership, and a 
$71 million maintenance facility was opened in a joint partnership 
between Amtrak and the State of California.
  In short, Amtrak is making progress, even under a starvation budget. 
All of this progress would halt under the Administration's radical so-
called ``reform'' schemes.
  Our Nation's high-speed rail program is also on the Administration's 
chopping block. If the United States is serious about maintaining our 
status as the world's leader in transportation then we must tap into 
the potential of our rail system. Even with continuing investments in 
our highway and aviation systems, we can't depend on our highways and 
airports alone. We must strengthen our rail system by expanding its 
capacity and improving reliability for freight and passenger services.
  I thank my colleagues, Chairman Young, Subcommittee Chairman 
LaTourette and Ranking Member Brown, for their dedication to rail and I 
look forward to working with them in moving these bills through the 
Transportation and Infrastructure Committee toward final passage.

                          ____________________