The 'rail as economic stimulus message (Pat Foran, Context, April 2008

The sputtering North American economy continues to contribute to the uncertainty of everyday business life for all small businesses, including the more than 500 U.S. short lines. Some roads, such as the six short lines featured in our April 2008 issue’s cover-story package, are fighting through it and finding ways to flourish.

Even so, big-picture painters believe we’ll be fortunate to stagnate through the year’s first half. Real GDP won’t grow much, if it all, through June, and even could contract, Federal Reserve Chairman Ben Bernanke told the Joint Economic Committee on April 2.

A little more investment in freight-rail infrastructure could help us steer clear of contraction, suggested rail lobbyists for the day who participated in the March 13 “Railroad Day on Capitol Hill” in D.C.

“Railroads would be able to spend more — up to 20 percent more, which is $1.5 billion — if they had the tax credit,” said Association of American Railroads Senior Vice President of Legislation Obie O’Bannon, referencing the Freight Rail Infrastructure Capacity Act (S. 1125/H.R. 2116) during a pre-lobby orientation session. “And for every $1.5 billion invested, it’s 30,000 more jobs.”

Rail policy and advocacy types delivered the “rail as economic stimulus” message during the eight lawmaker/staff “Railroad Day” meetings I sat in on. At times, the words fell on polite but deaf ears (“OK, right — I see what you’re saying. We’ll let the congressman know you were here.”) More often, though, the message resonated in a “you might be tapping into something there” vein — in part because they were.

Two days before the “Day on the Hill” event, a Senate Committee on Banking, Housing and Urban Affairs hearing focused on The National Infrastructure Bank Act of 2007 (S. 1926), a bill sponsored by Sen. Christopher Dodd (D-Conn.) and Sen. Chuck Hagel (R-Neb.). The bill seeks to establish a national infrastructure bank, which would be financed with a $60 billion bond issue. With the bonds serving as a means to leverage private capital, the bank would supplement public spending and finance infrastructure projects “of substantial regional and national significance,” according to the bill. The next day, House Speaker Nancy Pelosi (D-Calif.) said that she, too, supports a national infrastructure plan that leverages public/private funding.

So: Legislators are thinking about it, although it could be awhile before they actually begin doing something about it.

“Freight rail isn’t even mentioned [in the Dodd/Hagel bill], so we still need the tax credit,” AAR’s O’Bannon said during the “Railroad Day” orientation session.

Later that morning, O’Bannon reminded an aide to Rep. James Oberstar (D-Minn.), who chairs the House Transportation & Infrastructure Committee, that rail freight folks “want to be included in the infrastructure debate.”

Thanks in part to the “Railroad Day” organizers and the 300-plus lobbyists/attendees, they already are.

AARS seeks Richter scholarship applicants

Know any students who could use a college tuition break? The American Association of Railroad Superintendents (AARS) would like to help them out.

Under its annual Frank J. Richter Scholarship program, AARS awards $1,000 and $500 scholarships to promising full-time undergraduate or graduate students. Co-founder of Progressive Railroading, Richter is a quintessential student of rail and, for that matter, transportation as a whole. Last year, AARS awarded scholarships to five students — three received $1,000 scholarships and two won the $500 variety.

The association currently is seeking applications for the 2008-09 academic year. To be eligible for consideration, applicants must:

• be enrolled at the time of application as a full-time student at an accredited college or university (preference will be given to applicants enrolled in the transportation field, but all applicants will be considered);
• demonstrate successful completion of the previous year’s study by maintaining at least a 2.75 accumulated grade-point average; and
• accumulate enough credits from accredited school(s) in time for the fall semester to have obtained at least sophomore standing at the college or university of enrollment.

Applications, which must postmarked no later than June 1, are available via the AARS Web site. Winners and schools will be notified by Sept. 1. For more information, call 331-643-3369.