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Author Topic: BCA 11 And Amtrak
Gilbert B Norman
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Now that the Budget Control Act of 2011 has been enacted, I'm sure every Federal Agency is assembling "task forces" to determine what must be brought to the sacrificial lamb's altar.

Since the amount any agency will be required to cut has not really been determined, much of what that may be discussed here will be speculation. But just for openers, what if Amtrak's regular appropriation is cut, say, $160M, or 10%, what should go?

At this time, the 70 Siemens electric locomotives are under contract with funding assured. I'm not completely certain the status of the 155 single level cars, beyond that Amtrak was going to make a "down payment" using the FY10 surplus arising from increased ridership.

I know many here hope that Amtrak will get off "Scot free" with all routes, services, and pending equipment orders intact, but I simply hold that is too much to expect.

Addendum: New York Times editorial appearing Wednesday August 3:

http://www.nytimes.com/2011/08/03/opinion/hiding-behind-the-budget-act.html

Brief passage:

  • The Budget Control Act of 2011, which President Obama signed on Tuesday after Congress passed it by wide margins, is as contrived as the artificial crisis that spawned it. The bill, like a tired opera production, is full of clumsy staging and failed gimmicks left over from previous decades. It is not only bad policy in its goals of cutting spending too much, but it is bad procedure. It allows members of Congress to avoid responsibility for their actions through a cutout committee, a spending limit and the pretense that this Congress can tell the next one what to do.

    The budget act does its initial damage with a $917 billion cap on spending over the next decade, then turns everything over to a special joint committee to do the rest. Between now and Thanksgiving, this committee is supposed to come up with as much as $1.5 trillion in deficit reduction measures. In theory, that can be anything: tax increases, tax reform or cuts to the military, domestic programs or entitlements. In practice, don’t expect much.

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Vincent206
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Would the Tea Party stand in the way of a fare increase, particularly on the LD trains? In FY 2010, Amtrak had passenger ticket revenues of almost $2 billion. $160 million equals about an 8% increase.

It also might be time to talk to the unions about the contentious issue of labor productivity. Amtrak's labor cost in 2010 was almost $1.8 billion.

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Mike Smith
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In 4 short years, the federal budget has increased by 27%. I'm thinking there are more than enough areas that can be reduced, without hurting Amtrak. Besides, the debt ceiling increase has no actual cuts in it. It is all reductions in the annual increase in spending. Instead of 7% increases, Congress will have to live with 6.5% increases.
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Ocala Mike
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Thank God the congress critters will soon be on recess.

Q - How do you know when the American people are being screwed?

A - Whenever the Republicrats and the Democans announce that they've agreed on something and it becomes law.

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TBlack
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What I find interesting is that Gilbert posted his message on the 2nd quoting an editorial published on the 3rd! Gilbert, can you do the same thing with the lottery?

TB

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Gilbert B Norman
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I ask Mr. Black and other readers note reference to "addendum'
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RRCHINA
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Mr. Smith has it right:

There are no direct cuts, only a smaller increase than the CBO projections call for.

This is the rediculous way Congress works(to us who budget by analyzing our income and projected needs). Congress instead takes the current expenditures and automatically adds an amount that the CBO believes will be needed to continue all programs and projects. So instead of getting whatever % increase the CBO formula calls for they will each get something less. Anything new will be added to the current expenditures.

We have all seen or heard about each Government office looking at their expenditures shortly before the end of the budgeted year and then arranging to spend whatever is necessary to use all of the money whether they need something or not. And all positions are filled whether there is a need or not.

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sbalax
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It would have been nice if they had refunded the FAA before taking off on their August vacations. They have created a windfall for the airlines and left thousands out of work as airport construction projects, mostly already under way, have ground to a halt.

Frank in sunny and warm SBA where "Old Spanish Days Fiesta" begins tonight at the Old Mission. Viva la Fiesta!

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George Harris
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quote:
Originally posted by sbalax:
It would have been nice if they had refunded the FAA before taking off on their August vacations. They have created a windfall for the airlines and left thousands out of work as airport construction projects, mostly already under way, have ground to a halt.

This is the Harry Reid nose out of joint action because a couple of "essential air service" Nevada airports were left out of the FAA funding bill as it was.
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sbalax
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There is more to it than that. The other side wants to make it much more difficult for airline and airport employees to unionize. They want votes that are not cast by eligible voters to count as "No" votes is elections to unionize. If that were true in Congressional elections we would probably have no Congress.

Harry Reid was quoted as saying he was willing to give up his opposition. It didn't help.

Delta, which is famously anti-union, has funded quite a bit of the lobbying.

Frank in warm and sunny SBA. Viva la Fiesta!

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sbalax
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I forgot to mention that at least two airlines, Continental and United, are referring passengers with questions about the "tax" being collected but not paid to the government to the IRS for resolution. I'm sure that those requests for refunds will be handled expeditiously. [Smile]

Frank in sunny and warm SBA Viva!

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Gilbert B Norman
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Well, the FAA is back in business; apparently Congress had not formally recessed, a 'quorum' on one Member in each House gaveled each to "order", "unanimously" voted to fund the FAA and the President was quick to sign thereby enacting the legislation.

Sorry airlines, but your little "bonanza" (with all respects to the small regional carrier of that name that I think is somewhere part of Delta today) is over.

Also on airlines, not all airport projects are "winners'; case in point - this one of building a civilian "co-terminal" at Scott AFB (KBLV). At least this one only involved a presently unused terminal structure - the runways and ATC facilities were already there compliments of the USAF:

http://online.wsj.com/article/SB10001424053111903635604576476170691580238.html

Now regarding Frank's immediate point regarding the certification initiative on the Northwest/Delta property, as a one-time railroad Labor Relations Officer (my "three year sabbatical" from accounting in this life), I have been following matter to some degree. There's more too it. After the 'decert' initiative that Frank described on the Northwest side of the Delta property was successful, the 'goal posts got moved' by means of the National Mediation Board controlled by the (pro-union may I say) President. Now only those members of a craft that choose to show up and vote are counted, as this linked outline readily explains. But before going to the link I think I had best note that airline labor relations are first controlled under the Railway Labor Act and thence under "the trilogy' (Wagner, Taft-Hartley, Landrum Griffin) only to the extent that there is not a conflict with the RLA;

http://cei.org/sites/default/files/Russ%20Brown%20and%20Ivan%20Osorio%20-%20The%20Case%20for%20Reform%20of%20the%20RLA.pdf

Pertinent brief passage:

  • Changes to Railway Labor Act Voting Rules. Until a recent rule change, in a RLA election the union needed to receive a majority of the votes from all eligible bargaining unit members, not just a majority of votes cast. Thus, a union trying to organize a bargaining unit of 100 employees would need to gain at least 51 votes to become certified as monopoly bargaining representative.

    However, on July 1, 2010, the Obama NMB made some changes to the RLA’s voting rules—which had stood for 75 years—to require for a union to win only a majority of votes cast. Thus, under the new rules, if the union is trying to organize a 100-employee bargaining unit but only 80 show up to vote, then the union would only need 41 votes to win the election. In other words, the new rules could make it possible for a union to become certified as the monopoly bargaining representative of a group of workers with only minority of the workers having voted for union representation. It is worth noting that the NMB made absolutely no effort to educate eligible voters of the changes.

    To further complicate the voting process—and skew the process in unions’ favor—there is more than one way for a union to receive “yes” votes under the new rules. First, the new NMB ballot includes a “write in” section in which any vote cast counts as a vote for the union, because “no union” votes may only be entered in the section so labeled. Second, the runoff may only include the top two union vote getters. For example, take a union election at a bargaining unit of 100 workers, in which “petitioning union” gets 30 votes, “write-in union” gets 20, and “no union” gets 40, with 10 workers not voting. Clearly, “no union” won a plurality, but under the NMB’s new rules, only the petitioning union and the write-in union will appear on the runoff ballot.
Finally, and in an effort to return this topic to passenger rail related matters (well Amtrak labor relations are under the RLA), now that we are confronted with Great Recession II and there cannot be another "stimulus' initiative even if there was a Congress receptive to such, I don't see how Amtrak can 'escape unscathed'. Maybe a charitable organization such as NRHS can donate the Adios drumheads, as to commemorate railroad historical events is within their Exempt Purpose.
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Vincent206
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The choices for the BCA super committee are starting to be announced and it looks like Senate Democrats are going to be big Amtrak supporters. Baucus is from Montana where the Empire Builder is hugely popular and a hot button issue in that state. Murray from WA is a big supporter of infrastructure projects and passenger rail in particular. She's always happy to put on a hard hat, stick a shovel in the ground and smile for the cameras. She's also been chair of the Senate subcommittee that oversees Amtrak. Kerry is from MA/NEC and I doubt he will want to cut much from ground transportation budgets. We'll see what the rest of the members bring.
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