Suffering Amtrak Needs a Boost

The question of what to do about Amtrak, the money-losing national passenger railroad, is again in the news. Today that issue, in the form of the proposed Amtrak Reform and Privatization Act of 1997, is to be considered by the House of Representatives. The bill would release $2.3 billion for capital projects for the railroad but would require several changes in the way Amtrak conducts its affairs.

The vote is expected to be mainly along party lines. Many Republicans favor the elimination of Amtrak’s current severance policy, which allows up to six years in severance pay to laid-off employees when a railroad route is shut down. The bill would give the quasi-public railroad a freer rein in seeking to save money by using outside contractors. It would also set a cap on punitive damages from railroad accident injuries; there would be no cap on awards for pain and suffering.

Many Democrats side with the railroad’s union and with trial lawyers in opposing the job protection change. The Clinton administration also has voiced opposition.

One of the proposed revisions, the cap on damages, is troublesome. But giving Amtrak the freedom to renegotiate its severance obligation seems reasonable, especially in light of the railroad’s shaky finances. Allowing the use of outside contractors is also a good idea.

Some lawmakers continue to insist, wrongly, that the Amtrak experiment has failed. Well, the railroad moved more than 20 million passengers in fiscal year 1997, a sizable relief for other transportation modes. Amtrak is not just a railroad for the crowded northeastern states; 3.7 million passengers rode Amtrak in California, Oregon and Washington in the last fiscal year. That was a 10.6% increase in ridership over the previous year, making the West the area of Amtrak’s greatest growth.

Finally, Amtrak has made serious cuts in operations and has long suffered over the lack of means to upgrade its aged rolling stock and tracks. It deserves this funding. Now, Congress and the president must agree.