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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: jlallen who wrote (186300)	9/25/2001 8:18:58 AM
From: DMaA	Read Replies (1) \| Respond to of 769670

Grab on to something. Here comes the tide of pork!!! September 25, 2001 Senate Democrats Weigh Funds For Rail Service to Spur Economy By SHAILAGH MURRAY Staff Reporter of THE WALL STREET JOURNAL WASHINGTON -- Senate Democrats are considering a multibillion-dollar investment in passenger-rail service as part of a possible stimulus package to revive the battered economy. Sen. Harry Reid (D., Nev.) said an infusion of as much as $37 billion into the nation's passenger-rail system is one idea that Senate Democrats will float as they try to work out a bipartisan stimulus package with their Republican colleagues. Mr. Reid, who as majority whip is the Senate's No. 2 Democrat, wants to expand Amtrak's service and improve security, and is seeking to establish high-speed rail corridors to augment air travel between major cities. The White House and Congress still haven't concluded that a stimulus package is needed. Treasury Secretary Paul O'Neill said the administration will have a better idea in a week or 10 days "how big -- if any -- the stimulus should be." But if they do, it is likely to be a jigsaw puzzle of tax cuts and spending initiatives that reflect both Republican and Democratic priorities. Mr. Reid also chairs the transportation and infrastructure subcommittee of the Appropriations Committee. In that capacity, he is calling for upgrading and improving security for local water and sewer systems; repairing aging bridges and highways; and establishing decontamination facilities at hospitals, so they can cope with a chemical or biological attack. As congressional aides work on possible frameworks for a stimulus plan, Senate Finance Committee members are set to discuss the economy and debate stimulus options in a closed-door meeting today with Federal Reserve Chairman Alan Greenspan and former Clinton Treasury Secretary Robert Rubin. Both men have counseled caution, warning Congress that if it overreaches, it could thwart a recovery by driving long-term interest rates higher. Bolstering passenger-rail service is gaining momentum in the House as well. Rep. Don Young, chairman of the Transportation and Infrastructure Committee, plans to introduce legislation today to provide $71 billion in tax-exempt bonds, loans and loan guarantees and direct funding to develop a high-speed rail network. The sum exceeds the $50 billion to $70 billion estimated as needed to establish high-speed corridors nationwide. Under Mr. Young's plan, trains would travel at sustained cruising speeds of at least 125 miles per hour, on tracks with no road crossings. "It's probably one of the most comprehensive rail infrastructure bills ever proposed," said Steve Hansen, a committee spokesman. Mr. Young is adamant that his bill isn't an "Amtrak bill." A boost to high-speed rail would help Amtrak, because it would benefit from the infrastructure improvements. But the bill wouldn't fund new Amtrak initiatives, such as the new Acela high-speed service. Amtrak also wouldn't have veto power over how the system is developed. Amtrak has its own wish list that it is shopping aggressively on Capitol Hill. Most urgently, it wants $3.2 billion over 18 months to buy passenger cars, improve tracks and electrical systems, and to boost safety and security. Amtrak ridership surged after the Sept. 11 terrorist attacks, when air traffic ground to a halt. But the surge has subsided in recent days, as airlines restore their schedules and people become less apprehensive about flying. Skeptics note that Amtrak's emergency-funding request includes longtime priorities that the struggling rail service hasn't been able to afford, such as upgrades to its beleaguered Northeastern Corridor. Amtrak has been losing money for years and is under a congressional order to wean itself from federal subsidies by the end of 2002, or face restructuring or liquidation. Amtrak also is seeking authorization to sell as much as $12 billion in high-speed rail bonds in partnership with states, over 10 years. The money would be used to upgrade existing tracks, construct new lines, purchase equipment and improve existing service. interactive2.wsj.com