United Rail Passenger Alliance

Vol. 2, No. 3 – February 04, 2005

1. The late Bill Johnson, URPA contributor and Amtrak consultant for five years used to say, “never hope for something too much or you might just get it.” He did, and he learned the hard way by starting with the assignment to increase ridership on the east end of the Sunset Limited in 1996.

   Mr. Johnson’s exhortation has also come true for Amtrak, it’s various attendant wholly owned lapdog organizations, and Amtrak apologists and cultists everywhere. For the entire 11 year reign on the Transit Trio of Downs, Warrington, and Gunn, Amtrak has been downplaying the necessity and importance of the national system, and focusing all attention on the NEC and Acela, betting the whole company on the success of just one region.

   Well, for FY 06, the White House took all of this seriously, and agreed with Amtrak, and only budgeted funding for the NEC and related commuter services. Where Amtrak asked for the usual $1.8 billion in free federal money, the White House suggested less than $400 million, quite a difference.

   Naturally, according to the WOLOs (wholly owned lapdog organizations) and others, not only is the sky falling, but the earth is rushing up to meet it.

   This is a serious moment in the journey that we know as Amtrak. The company’s long term public affairs strategy has not only backfired, but backfired with a vengeance. At a time when the company’s public face is still that of a government agency that is dependant on lots and lots of free federal monies every year, the Congress and White House are now controlled by others who believe not only in self-reliance, but the judicious spending of taxpayer monies. What’s Amtrak to do?

   Let’s take a reality check. First, the White House budget that will be released on Monday, February 7th is just a blueprint that is a suggestion by the executive branch of government of how the legislative branch of government should spend money. Nothing is carved in stone.

   Second, the hopes, dreams, and desires of members of the House and Senate are vastly different from those of the White House when it comes to federal programs. Amtrak has been rescued by Congress before, and it will most likely be rescued again.

   Third, and this may be the toughest part, Amtrak probably won’t come even close to receiving $1.8 billion for FY 06, and probably won’t come close to this year’s $1.2 billion it has now. It’s a good guess that the final figure will be less than a billion, but a lot more than the White House has requested. By the way, Amtrak has received as much or more in annual free federal monies during the first four years of the Bush administration as it did during the entire eight years of the Clinton administration (not counting the extraordinary TRA monies).

   This same situation happened to VIA Rail Canada in 1989. For years the Mulroney government felt that VIA had not been completely honest in its dealings with the Canadian federal government. When the last straw broke the camel’s back, the government slashed so much out of the railroad’s budget, that it lost nearly half of its nationwide system. Today’s VIA is still a shadow of what it was 15 years ago.

   While something on such a drastic scale probably won’t happen to Amtrak, there will have to be some new priorities at the company, and it will have to move closer to being a part of the federal government instead of a constant opponent to the federal government.

   Amtrak’s transit mentality is going to have to change, and it is going to have to refocus on its original and true mission, to operate a national passenger rail system, and not just an oversized trolley operation between Boston and Washington and a huge federal Northeast jobs program. 2) For those wishing to help keep a reasonable level of free federal money for Amtrak this year, there are some things that can easily be accomplished, and others that should be avoided like the plague.

   It will be important to contact your congressman and senators and ask them to support a reasonable amount of money for Amtrak.

   It will be important to contact your state elected officials as well, and indicate that state support for rail is important when it can be in harmony with the national system.

   It is most important that this not boil into a major national news story that will only serve to scare away yet another high travel (and high ticket revenue) season of train travelers this summer.

   Amtrak under President and CEO David Gunn has scared away more potential and return passengers through the constant threats of shutdown and doom and gloom than can be imagined. In this case (as is so often apparent in many areas), Amtrak is its own worst enemy. Now is when expensive summer vacations are being planned and booked. Now is not the time to send a message that trains may not be running, and having advance booking passengers think a refund may be tied up in bankruptcy court.

   If you are interviewed by the press, emphasize that this is a normal budget fight, and it’s OK to ride the train. Amtrak has lost tens of millions of dollars and thousands of passengers because of false posturing and now is not the time to keep that tradition alive.

2. The next bit of fascinating news this week are the numerous rumors from many sources that Amtrak is considering filing for bankruptcy protection. This is truly amazing. How can a company that has received over four billion dollars in free federal money during the past four years not be able to manage it own finances well enough to avoid the embarrassment of bankruptcy?

   There have been parallel rumors from sources that may explain this action. Amtrak has been doing the “me, too” routine the past few years, following in the footsteps of the airlines. Both United and US Airways seem to be cleaning up their financial problems and dealing with their unions in a roundabout fashion through bankruptcy. Perhaps, Amtrak thinks it can do this, too.

   The rumors have been saying that Amtrak wants some sweeping reforms from its unions and that now is the time the company is determined to do some “union busting.” Instead of this foolish and unproductive act, Amtrak needs to concentrate on improving itself internally and with better management and growth policies than attempting to solve all of the company’s problems on the backs of its union members. The Amtrak unions haven’t done anything wrong. While it’s always true that any union contract needs updating on a regular basis, the unions should never take the fall for what can only be described as tragic management decisions that have plunged the company into a black hole abyss that has never been seen before and may never be seen again.

3. Let’s look at something positive. Once this latest budget battle (and it is just another battle, the world is not coming to an end) is over, what can individuals do to help avoid any future such battles?

   First, question everyone and everything. Amtrak believers need to stop accepting everything at face value and use some common sense. If something doesn’t make sense, question it and ask, “why?”

   Next, stop turning every Amtrak president into an infallible saint whenever he’s hired. While it’s appropriate for everyone to have a honeymoon, it’s inappropriate for someone’s every word to be taken as gospel.

   Think outside of the box. Amtrak’s word is not the last word in thinking. Accept new ideas for consideration and debate.

   If you are a member of a rail fan organization, question your leadership. Is your organization adhering to the same tired politics of 25 years ago? Is the agenda of your organization being updated and changed to meet today’s needs? Are you attracting new and younger members?

   Also, if your organization has paid professional leadership, how effective are they? Look at your organization’s archives. Is there a different message today than there was in 1985? Is your paid help really keeping your group on the leading edge, or just keeping up enough of a good face to continue to receive a comfortable paycheck and keep a comfy job while enjoying perks that are denied to you? Is your paid leadership working for your elected leadership, or is it the other way around?

   Is your group respected in Washington and your state capital? Are you checking personally to make sure? Are you staying in touch with your own members of Congress and the Senate and asking them if they are hearing from your group, and if they are, is it an effective message? Honest word of mouth is often the best advertising. When talking with others that may be considering a train trip for the first time, don’t paint a picture that makes them think they are about to step on the 20th Century Limited in 1949. Be honest. Provide honest expectations and provide tips for survival that are instinctual to you to help make the trip easier and more enjoyable.

   Above all, get out and stay out of “crisis mode.” According to Amtrak, the WOLOs and Amtrak apologists and cultists, the company has been in perpetual crisis for over 30 years. Stop that. Recognize that the company is constantly facing challenges, but not a constant dire crisis. Everyone will be better off for a more positive attitude.