Testimony of Frank J. Busalacchi

Secretary, Wisconsin Department of Transportation

Chair, States for Passenger Rail Coalition 

to the

Subcommittee on Surface Transportation and Merchant Marine Infrastructure,

Safety and Security

of the

Senate Committee on Commerce, Science and Transportation

Tuesday, February 27, 2007

 

 

Chairman Lautenberg, Ranking Member Smith and distinguished Senators, my name is Frank Busalacchi.  I am Secretary of the Wisconsin Department of Transportation and Chair of the States for Passenger Rail Coalition. 

 

I am also a member of the National Surface Transportation Policy and Revenue Study Commission. The National Commission is working to construct a new 50-year vision for the nation’s transportation system.  We are in the midst of our deliberations and my comments do not represent the views of the National Commission.  Every Commissioner is working to keep an open mind on all issues. 

 

I appreciate this opportunity to share my comments on passenger rail issues and Senate Bill 294.  This bill is an important first step in creating a passenger rail program to meet the mobility needs of the public.

 

Let me begin by focusing on Wisconsin.  As Secretary of Wisconsin DOT, I know firsthand that the American public is clamoring for expansion of passenger rail services. 

 

Our state provides financial support to Amtrak’s Hiawatha Service, which operates in the busy Milwaukee to Chicago corridor.  Since 1989, we have committed almost $100 million in capital and operating support for existing and future Amtrak service in Wisconsin.  This includes annual operating support, new or renovated stations, rail corridor acquisition, crossing improvements, and planning studies.

 

·         Wisconsin has worked in partnership with the state of Illinois to provide annual operating support for Amtrak’s Hiawatha Service.  Our state provided approximately $6.5 million last year.  Wisconsin Governor Jim Doyle has proposed another $500,000 in his 2007-09 biennial budget to add a car to each train, since many of the trains are so popular they now have standing-room only for a 90-minute trip.

 

·         Our state has also undertaken three major station development projects for Hiawatha Service customers.  In 2005, we opened a new passenger rail station at Milwaukee’s General Mitchell International Airport.  In 2006, the village of Sturtevant replaced a 100-year-old station with a brand new facility.  Later this year, we will finish a $16 million renovation of the downtown Milwaukee station. This public-private partnership will provide a new multimodal facility for Amtrak trains and Greyhound buses, along with commercial development opportunities.

 

·         Wisconsin has also invested funds to look to the future. Our state has conducted an environmental assessment of a project to expand service from Milwaukee to Madison and has received a federal Finding of No Significant Impact (FONSI). We have invested funds to purchase and preserve a portion of the rail corridor for this future extension.

 

The public has responded to all of these investments.  Last year, Amtrak’s Hiawatha Service carried 588,000 passengers – a 48 percent increase in just five years.

 

Now, the public wants more.  With Amtrak providing excellent service from Chicago to Milwaukee and with engineering plans on the shelf and ready to go, the demand is strong to expand service another 90 miles to Madison. 

 

Madison is ripe for passenger rail service.  It is the state capital, home to the University of Wisconsin, and it boasts a metro population of 450,000 that is highly supportive of alternative transportation options.

 

Wisconsin is also looking to this service as a way to provide energy efficient transportation that can help reduce our nation’s dependency on foreign oil. Intercity passenger rail uses 17 to 18 percent less energy per passenger mile than commercial air travel or personal auto travel, according to the Oak Ridge National Laboratory.

 

Wisconsin has already committed $48 million in bonding authority towards this service.  Governor Doyle has proposed increasing this to a total of $80 million in state bonding authority as a 20 percent match toward future federal funds for the Madison extension. Unfortunately, no program exists to provide federal funding, and Wisconsin simply cannot undertake these projects on its own.

 

 

Wisconsin is not alone in this predicament.  The States for Passenger Rail Coalition represents 28 states that support intercity rail service around the country. Many states share Wisconsin’s experience and frustration regarding passenger rail service.

 

Virtually all of Amtrak’s ridership gains over the past several years have come through state-sponsored services. 

 

·         Fourteen states provide annual operating support for Amtrak intercity corridor services.

 

·         These state-supported services account for 35 percent of Amtrak’s daily ridership and about half of all passenger trains in the system.

 

·         State-supported services such as Pennsylvania’s Keystone Service, Illinois’ Chicago to St. Louis trains, the Downeaster in Maine, and Oklahoma’s Heartland Flyer have joined Wisconsin’s Hiawatha Service in realizing double-digit percentage increases in ridership.

 

·         A GAO[1] report from this past November notes that total ridership on the state-supported corridor routes increased by 18 percent from 2002 through 2005, while ridership growth on other parts of the system remained relatively flat.

 

From Washington to Florida, from New York to California and everywhere in between, states have committed hundreds of millions of dollars for short-term, incremental improvements that have fueled the growth in Amtrak ridership. States have completed environmental analyses, put plans on the shelf, and have passengers ready to board the trains. Around the nation, 35 states have developed intercity passenger rail plans.

 

 

What’s missing is a strong federal partner to make it happen.  That’s why I am grateful to Senator Lautenberg for introducing S294, the Passenger Rail Investment and Improvement Act of 2007.

 

This legislation will stabilize Amtrak with necessary operating funds for the next six years. The bill provides $6.3 billion for Amtrak to implement capital projects, including those on the Northeast Corridor.  It also lays the basic framework for Amtrak to work in partnership with the states on an 80/20 federal-state share to implement regional capital projects.

 

Both the Wisconsin DOT and the States for Passenger Rail Coalition endorse S294 as an initial step to bring fast, reliable and energy-efficient passenger rail service to a public that is demanding mobility options.

 

 

While S294 is a good start, it does not contain the funding necessary to meet states’ needs around the country. Of the $6.3 billion in capital funds, state-sponsored projects are eligible to receive only $1.4 billion.  Under provisions of the bill, the most available to fund a single project in a given year is about $400 million. Wisconsin’s Milwaukee to Madison project will require $400 million alone. 

 

A recent AASHTO[2] report identified $17 billion of needs in the near term for rail capital projects across the nation, including $10.4 billion of needs for state-based corridors.

 

·         In all, the AASHTO report identified nearly $60 billion in needed passenger rail capital investment over the next 20 years in the country, including for basic Amtrak system needs.

 

·         The November GAO report reiterated that the state-supported services are the most time and cost competitive for passengers, but these corridors face capacity constraints and long-term funding issues for capital needs.

 

Therefore, as the Senate moves ahead on S294, I respectfully ask this committee to continue its efforts to provide a dedicated passenger rail capital program to fund the nation’s rail needs.  The federal government provides this support for highways – it is needed for passenger rail as well.  S294 includes provisions that could make it happen – stabilization of Amtrak, support for the Northeast Corridor, and the beginnings of an 80/20 capital investment program for state initiatives.

 

The States for Passenger Rail Coalition (SPRC) is willing to work with the Senate and the House to help craft legislation that will fully support the needs of our nation.

 

·         SPRC supports HR-1631, the Railroad Infrastructure Development and Expansion Act for the 21^st Century (RIDE-21) that provides $12 billion in tax credit bonding authority for states to use on corridor projects.

 

·         SPRC also supported past legislation, including S1516, the Passenger Rail Investment and Improvement Act of 2005, the predecessor to S294, though the $1.4 billion in this bill for state corridor grants did not fully address the national needs.

 

·         SPRC members call for balance in the federal transportation funding programs.  Only 4 percent of federal transportation dollars are dedicated to rail programs, yet rail provides incredible potential to carry millions of passengers on energy-efficient and time-competitive services in corridors of national significance. 

 

 

In conclusion, I want to again thank Chairman Lautenberg and the S-294 co-sponsors for recognizing what we in the states have seen first-hand – the demand for fast, efficient train service by our citizens.  Working together, the states and the federal government can provide the mobility options that intercity rail can bring to our citizens. 

 

Thank you for the opportunity to speak with you today. I appreciate your attention and look forward to answering your questions. 

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