By Ron Thaniel
January 13, 2003

In letters to President Bush and Congressional Appropriators on January 7, Conference President Boston Mayor Thomas M. Menino and Conference Transportation and Communications Chair Fort Worth Mayor Kenneth L. Barr stated that, "with the national economy continuing to lag, this is not the time for any reduction in transportation funding."

With Congress considering the appropriations levels for the fiscal year 2003 Federal-Aid Highway program and Amtrak, the Conference called for the Federal-Aid Highway program appropriation level be maintained at $31.8 billion, Federal Transit Appropriation at $7.3 billion and Amtrak at $1.2 billion as adopted by the Senate Appropriators before the holiday recess.

Noting the lagging economy, the Conference letter stated that, "each one billion dollars in federal highway funding translates into 47,500 well-paying construction and construction related jobs—and the nation's production sector experiences an increase of three billion dollars in sales."

"Conversely, cuts in spending will have an equal, but negative, impact on our economy. The impact of any reduction would be immediately felt across the nation, further hindering recovery," said Menino and Barr.

Amtrak's President and CEO David Gunn has said that anything less than $1.2 billion would guarantee insolvency by Spring and the shutting down of the entire system. Furthermore, Amtrak's $1.2 billion request will allow continued operation of its current system, create much-needed stability, and make critically needed investments to return rolling stock and infrastructure while Congress deals with the larger, more fundamental questions about its future through the reauthorization process.

Amtrak's fiscal year 2003 request of $1.2 billion is, in reality, a small increase of the money made available to Amtrak in fiscal year 2002. Including $310 million in supplemental funding, Amtrak received a total funding of $1.144 billion in fiscal year 2002. The funding level request for fiscal year 2003 is slightly under five percent more than what was made available to Amtrak from the federal government on a cash basis in fiscal year 2002.

Eliminating trains will not generate any savings in the near term given the extensive termination notification requirements and labor protection payments that would have to be made through massive route cuts.

Highlighting an August 5, 2002 Washington Post article, the mayors noted that 71 percent of Americans favor continuing federal subsidies to Amtrak and would support additional federal funding so the passenger railroad can increase service.

The appropriations letter declared that mayors from both political parties urge the President and Congressional Appropriators to support the $1.2 billion appropriation as well as set aside any new policy directives, which should be thoroughly debated and voted upon in the authorizing committees, not imposed through "riders" on the appropriation bill for Amtrak.

Mayor Menino and Mayor Barr noted that the nation's mayors are on the front lines in addressing America's growing transportation crisis and stated that The U.S. Conference of Mayors stands ready to work with the President and Congress to ensure the sustained viability of our nation's transportation system.