As I've noted at some previous submissions, it was inevitable that the Obama administration would develop fiscal responsibility, but I am astounded at how quickly this development has occurred. I had held that "fiscal responsibility' would wait until John Q felt the Recession was over, as distinct from economists (secure in their own jobs) who are already telling John Q that it is now over.
So take your pick of coverage from two major news sources:
WASHINGTON—President Barack Obama intends to propose a three-year freeze in spending that accounts for one-sixth of the federal budget—a move meant to quell rising concern over the deficit but whose practical impact will be muted. To attack the $1.4 trillion deficit, the White House will propose limits on discretionary spending unrelated to the military, veterans, homeland security and international affairs, according to senior administration officials. Also untouched are big entitlement programs such as Social Security and Medicare. The freeze would affect $447 billion in spending, or 17% of the total federal budget, and would likely be overtaken by growth in the untouched areas of discretionary spending. It's designed to save $250 billion over the coming decade, compared with what would have been spent had this area been allowed to rise along with inflation.
WASHINGTON — President Obama will call for a three-year freeze in spending on many domestic programs, and for increases no greater than inflation after that, an initiative intended to signal his seriousness about cutting the budget deficit, administration officials said Monday. The officials said the proposal would be a major component both of Mr. Obama’s State of the Union address on Wednesday and of the budget he will send to Congress on Monday for the fiscal year that begins in October. The freeze would cover the agencies and programs for which Congress allocates specific budgets each year, including air traffic control, farm subsidies, education, nutrition and national parks.
While any Administration proposing a freeze in appropriations to non-essential programs and the enactment of the frozen appropriations into law represents a time-span into the next fiscal year and a lot of "political water' flowing under the bridge, it is unavoidable to ignore that Amtrak, along with National Parks, National Endowment of the Arts, and NASA, are the types of programs that the Administration has in mind. So with regards to Amtrak, two questions are on the table:
1) What should, if anything, be discontinued?
2) What will, if anything, be discontinued?
Discussion, anyone?
Posted by TBlack (Member # 181) on :
OK, Mr. Norman, but first remind me; didn't congress pass a bill last fall that covered Amtrak funding over a 5 year span?
Tom
Posted by PullmanCo (Member # 1138) on :
An Authorization Act is not a Appropriation Act.
The Constitution only allows funds to be spent through an Appropriation Act. By the Constitution, those are annual.
So we shall see what happens in Congress.
BTW, in spite of the raw dollar number, this is symbolic at best. If enacted, this kind of reduction simply slows the rate of increase ... it does not end the increase, nor does it start to whittle away at the mountain.
Posted by dns8560 (Member # 15184) on :
Ride the trains - before they're all gone...
Posted by Ocala Mike (Member # 4657) on :
This administration can't seem to get its zigs and zags straight! Let's see what he says in the State of the Union and if he goes ahead with this trip to the Bay Area.
Posted by George Harris (Member # 2077) on :
Let's see, we had the Carter Cuts, and then the Clinton Cuts. Now it is time for the Obama Cuts.
maybe it is time for someone to explain why the supposed pro-passenger rail, pro-public transportation dimocrats are the ones that every time they get the white house cut back on Amtrak.
This why I say, when dealing with a politician, turn off the sound and watch the action.
Posted by palmland (Member # 4344) on :
I would be surprised to see any Amtrak cuts. To do so in the face of very vocal Amtrak support from Mr. Obama and Biden and other fed funds headed towards passenger rail would make the administration look even more out of control.
Posted by TBlack (Member # 181) on :
Mr. Pullman,
I understand the 2 step process in legislation, but think about it from this angle: If the Congress has authorization for funding at a specific level, doesn't that then mean that the "freeze" is at this higher level?
Posted by Gilbert B Norman (Member # 1541) on :
No question whatever, this Administration is about as "pro-Amtrak' as they come; and Amtrak has garnered supplemental funding through ARRA '09 well beyond its usual $1.3B or thereabouts included within "Omnibus' appropriation legislation.
But, as I have noted at several other topics, IF there must be a cut, the Silver Meteor is the most vulnerable train out there. That it is a reasonably strong performer means nothing when the word goes out 'we want to see something running today not running tomorrow'. If any $$$ is actually saved, that is not of any concern to anyone. It's all just pantomime; Oscar winning performances are given Daily along the banks of the Potomac.
Posted by PullmanCo (Member # 1138) on :
Mr Black,
We'll see what gets proposed when the President sends his budget to the Congress. Bottom line is he's made non-defense, non-Homeland Security, non-foreign aid discretionary spending a zero-sum game. In zero-sum games, there are winners and losers. Since Congress can add and subtract at will, what we actually see on or after October 1 2010 may or may not bear resemblance to what goes to them in January.
Frankly, I think the $8B down payment on HSR is the majority of the Administrations commitment to it; remember that education and health care are part of the money in the kitty for the zero-sum game.
Posted by PullmanCo (Member # 1138) on :
Mr Black,
We'll see what gets proposed when the President sends his budget to the Congress. Bottom line is he's made non-defense, non-Homeland Security, non-foreign aid discretionary spending a zero-sum game. In zero-sum games, there are winners and losers. Since Congress can add and subtract at will, what we actually see on or after October 1 2010 may or may not bear resemblance to what goes to them in January.
Frankly, I think the $8B down payment on HSR is the majority of the Administrations commitment to it; remember that education and health care are part of the money in the kitty for the zero-sum game.
Posted by TBlack (Member # 181) on :
Mr. Pullman,
I'll suggest to you that this freeze business is a PR ploy on the part of the administration to answer a fear about the budget deficit. It gets headlines; it will get mention in the speech tomorrow night; but it has no real substance.
A couple of other things in your response I'd like to address: "zero sum game" and "Congress can add and subtract at will": The term zero sum game was popularized by Lester Thurow, an MIT economist who was a neighbor of mine here in Lincoln. His kids and mine went to school together, and he and his wife, Gretchen, were part of our social circle. I'm not intentionally name-dropping here; I just want to make the point that Lester is a negative thinking guy which isn't always inappropriate, but needs to be kept in its place. And, incidentally, he never did really prove that there is a zero-sum game. On the second point about Congress, they've already given a positive nod to Amtrak this past fall; I'd prefer to think that they will stick by that commitment.
Posted by TBlack (Member # 181) on :
Gil,
I'm really only writing this because I want to get to 300 messages, but I read your comments on the the other site and I would like to hear your reasoning for singling out the Meteor.
Tom
Posted by palmland (Member # 4344) on :
quote:Originally posted by Gilbert B Norman: .....But, as I have noted at several other topics, IF there must be a cut, the Silver Meteor is the most vulnerable train out there. That it is a reasonably strong performer means nothing when the word goes out 'we want to see something running today not running tomorrow'. If any $$$ is actually saved, that is not of any concern to anyone. It's all just pantomime; Oscar winning performances are given Daily along the banks of the Potomac.
Your point is well taken that there may have to be some sacrificial train. But, I would suspect that would be the much maligned Sunset. Amtrak could make a case for it being a poor performer, etc. and they were doing their part to tighten the belt. Then proudly announce they were initiating a new cost effective 'corridor' train to meet the needs of the growing Texas population from San Antonio to NOL. Of course the TE would then run to LA. Smoke and mirrors as done so well in Washington.
Posted by Charles Reuben (Member # 2263) on :
Unless the Silver Meteor is redundant or lacks ridership, I'm not sure why it should be eliminated.
I'm not sure why Bush picked on Amtrak during his administration but now that he's gone, I think cuts train cuts will probably be a non-issue.
Now that I'm flying again, I really don't see the point in pursuing HSR, especially with the country in such bad shape. However, I still think that a maglev between LA and Vegas would probably make some private investor very rich.
Now that Amtrak appears to be in the money, I'd like to see them spend those dollars on fixing their tracks and sprucing up their trains on the existing routes.
If anything, politicians should "sell" Amtrak for what it is: A national treasure whose routes should be experienced by everybody, at least once in their lifetimes.
90 mph is fast enough for me, thank you very much.
The billion dollars or so that it takes to run our railroads is pissing in the ocean compared to other extravagances in our national budget.
I'm a liberal democrat but I really think it's time that both parties started to listen to each other.
If Health Care really is such a big deal, then I think the republicans had a damn good idea when they suggested that insurance companies should be able to compete across state lines.
If anything's going to get this country moving to again, it won't be cuts. It will be radical rethinking of things like health care, something that affects us all.
Posted by Mr. Toy (Member # 311) on :
Much ado about nothing, I think. Amtrak has had a fairly flat appropriation for the last several years. A freeze simply means status quo.
Posted by Gilbert B Norman (Member # 1541) on :
quote:Originally posted by TBlack: Gil,
I read your comments on the the other site and I would like to hear your reasoning for singling out the Meteor.
Tom
Mr. Black, for benefit of this topic's readers, the Meteor is the most vulnerable LD out there if something needs to be whacked - and fast. Remember in "Wonderland-By-The-Potomac' its all about perception (it's reality after all?) and being able to show that 'this train is running today, but it won't be tomorrow'.
Because there is other service anywhere on its route, the Meteor is the only LD that Amtrak could discontinue without 180 Day Notice under ARAA '97. I still hold that Amtrak's position regarding 'suspension" of Sunset East is weak and that a party challenging such could well prevail resulting in its restoration (likely only for 181 days).
Are there other sacrificial lambs that should be on the altar before the Meteor? YES; are there any more expedient than the Meteor? don't think so.
Posted by Tanner929 (Member # 3720) on :
If there is such a clamoring for long distance train travel then why not have the government build just the tracks and have private or publicly traded company run the railroad? they build roads for car companys and regulate the airspace to airlines.
Posted by Gilbert B Norman (Member # 1541) on :
Now that the President's FY11 Budget is in the public domain, any reader knows that Transportation is a "winner'. Likely no cuts in the Amtrak route structure will be necessary.
Accordingly, I now concur with Mr. Toy's thought; much ado about nothing.