California State Rail Plan 2007-08 to 2017-18

2007-08 – 2017-18 California State Rail PlanCalifornia Corridors Highlighted in State Corridor InitiativesThe Amtrak 2004 Strategic Plan also includes an Appendix called the StateCorridor Initiatives. It focuses on state proposals supported by Amtrak for specificpassenger rail corridor development, and strategies to protect and upgrade keyfacilities owned by freight railroads. Amtrak supports use of a 80 percent federal20 percent state grant program for corridors that qualify under the Initiative.Amtrak surveyed all states and identified those corridors that complied withAmtrak’s criteria. The criteria includes a long-term master plan, market revenueand operating expense forecasts, infrastructure and equipment investment plans,host railroad acceptance, agreement to fund a 20 percent capital match, andagreement to cover any added operating deficit. Amtrak worked with states toclearly identify the corridors, the congestion and capacity challenges and capitalinvestment needs. Three of the eight corridors that qualified for the State CorridorInitiatives were in California. They were the three State-supported corridors(Pacific Surfliner, San Joaquin, and Capitol Corridor).However, it should be recognized that major funding for the Corridor Initiativeswould come from a federal grant program, which to date has not been established.See the discussion of the FFY 2008 Budget below for further information on aproposed grant program in S 294.AMTRAK REFORM AND BUDGETFor a number of years Amtrak’s future and budget levels have been hotly debatedin Washington D.C. According to the Congressional Budget Office September2003 study The Past and Future of U.S. Passenger Rail Service “more than threedecades after the Congress and the President created the National RailroadPassenger Corporation, Federal policies toward intercity passenger rail serviceremain unsettled. Policymakers have not been able to agree about whether thecompany should be a private, for-profit enterprise (like airlines and intercity buscompanies) or a public service (like urban mass transit) that would usegovernment subsidies to achieve social objectives.” This discussion continuestoday with no resolution.FFY 2006 BUDGET AND LEGISLATIVE REFORM PROPOSALIn 2004, Congress was primarily engaged in reauthorizing surface transportationprograms and discussions on the future of Amtrak and intercity rail took a backseat. Amtrak’s FY 2005-2009 Strategic Plan called for an annual Federalappropriations level of $1.6 billion, which would allow Amtrak to make progresson its goal toward achieving a state-of-good-repair. Amtrak initially requested$1.8 billion from Congress for FFY 2005, but revised it downward to $1.5 billionbased on the ability to advance a number of capital projects. In November 2004,Congress appropriated $1.2 billion for FFY 2005 funding, which included a$20 million portion of a five-year repayment for the FFY 2002 loan of190