Summer 2001
Volume 108 - No. 2
Summer 2001
Volume 108 - No. 2
Guest Comment
Advancing our Agenda
Son of an engineer fights for railroaders in Washington
Earlier this year, Congressman Don Young, R-AK, asked if I would chair the Transportation and Infrastructure Subcommittee on Railroads. It was great news that railroad issues were being separated from the Ground Transportation Subcommittee, again giving them some extra attention. I immediately accepted, and am now chugging along on the important issues facing the railroad industry.
This chairmanship is especially important to me because railroads have
always been a big part of my life. My father is a retired engineer of the
South Buffalo Railroad, working on the line for 31 years. Because of this
life-long experience, I bring a great deal of first-hand knowledge on what
issues are most important to the railroad industry.
With the creation of a subcommittee focused exclusively on railroads, there provides an excellent opportunity for some significant advances and improvements both in rail capital and rail labor. To help the latter, I am an author and original cosponsor of H.R. 1140, the "Railroad Retirement Survivors' Improvement Act of 2001." This bill has the support of both labor and management, and also bipartisan support in the U.S. House and Senate. I have worked tirelessly to ensure this bill gets the attention it deserves. It is virtually identical to the bill that overwhelmingly passed the House last session by a vote of 391 to 25. Despite this ground swell of support, the Senate did not consider the bill. This time around, full committee Chairman Young and Ranking Member Jim Oberstar, D-MN, Railroads Subcommittee Ranking Member Bob Clement, D-TN, and myself are committed to moving this bill, and will push for its enactment into law.
H.R. 1140 is critical to the hard-working men and women of the railroad industry. Watching my father throughout my childhood, I have seen first-hand the amount of hard work and long hours that go into working on the railroad. This legislation will help to protect the rail employees' future, granting them the financial security necessary to live a well-deserved and much-needed retirement. As you know, the railroad retirement system consists of two major components. Tier I is basically equivalent to Social Security. Tier II provides additional benefits through an industry-wide pension plan.
A significant provision of H.R. 1140 would allow for investment of Tier II funds in a new diversified portfolio, thus providing the opportunity to get a higher return on investment. Currently, the funds are put into U.S. government securities, which yielded over 9% from 1985 to 1998. Large multi-employer pension plans yielded an increase of 15% over the same period. This legislation would provide for increased returns on investment of retirement account money from a balance of government securities, with a steady annual return, and investment in private securities, which carry a higher risk, but which also have provided a high return in recent years. Solvency would be guaranteed by setting the Tier II employer tax rate at a level that would maintain between four and six years' benefits in the fund.
As far as capital, the federal government must provide more resources for railroads to improve their operations. The aviation and trucking industries, for example, have seen significant improvements in their infrastructure. In 1998, we enacted a law that would help the railroad industry improve its infrastructure under the Railroad Rehabilitation and Infrastructure Financing Program (RRIF), created as part of TEA-21, the Transportation Equity Act for the 21st Century. The program provides $3.5 billion for rail infrastructure loans and can be used for a variety of projects, including the acquisition, development, improvement, or rehabilitation of intermodal or rail equipment or facilities, including track, bridges, yards or shops. The money would be paid back to the government at a low rate and over an extended period of time.
The only problem with the program so far is that not one penny of this money has been used. This money is critical for railroad improvements, and needs to be released immediately. The Clinton Administration dragged its feet in drawing up the guidelines for the program, and when finally approved by the Office of Management and Budget, the final rules basically killed the program. The previous Administration attached such onerous and unattainable criteria for obtaining the loans that virtually no railroad could benefit. I will do my best to make sure that the Bush Administration and Transportation Secretary Mineta fix these misguided regulations and release these badly needed funds to the railroad industry. I have, along with Congressmen Young, Oberstar and Clement, sent a letter to the Administration expressing the need for these funds. We hope to see action on RRIF shortly. These funds are essential for the railroad industry to compete with other modes of transportation.
Of the $3.5 billion included in the RRIF loan program, $1 billion is reserved solely for the smaller railroads. To help augment the loan program, I introduced the "Railroad Track Modernization Act of 2001," which would establish a program that provides capital funds for Class II and Class III (short-line) railroads to rehabilitate, preserve or improve railroad track to ensure the track can be operated safely and efficiently. The bill, H.R. 1020, authorizes $350 million to the Department of Transportation for each fiscal year between 2002 and 2004.
This bill will ensure that short-line railroads get the funding they need to continue carrying out their vital role in local commerce. It is my hope that this legislation will be passed into law as soon as possible, putting short-line railroad companies in a better position to receive much needed federal funding. This bill will affect over 500 small railroads across America. With the increase in funding and attention to short-line railroads, thousands of jobs will be preserved for the future.
I will work hard to keep the railroad industry on-track and firmly rooted
in the American transportation system. Railroads need to have the available
resources, both in capital and infrastructure, to ensure that they are able
to compete with the other modes of transportation in the future. This subcommittee
provides us with a great opportunity to accomplish these goals, and I look
forward to tackling these and other challenges in the future.
Editor's Note: Congressman JACK QUINN (R-N.Y.), the son of a locomotive engineer, is in his fourth term representing New York's 30th District in the U.S. House of Representatives. Quinn was re-elected to another term by an overwhelming 68% of the vote in a democratic district. He is the Chairman of the House Transportation & Infrastructure Committee Subcommittee on Railroads.
A graduate of Siena College, Rep. Quinn taught English in the Orchard Park School District for 10 years and earned his Masters Degree in Education from the State University of New York at Buffalo. Quinn began his public service career in 1981 with his election to the Hamburg Town Board. During his first term as a public servant, he ran for and was elected Hamburg Town Supervisor, a post he held until his election to Congress in 1992.
In Congress, Quinn led the fight to increase the minimum wage, demonstrating another example of his political independence in working for what he feels is best for the people of his district. The passage of the minimum wage also established him as a leader among moderate members of the House.
He was named as one of the Top 50 "Most Effective" Lawmakers in Washington by Congressional Quarterly late last year. He was also awarded the Government Service Award from the Buffalo AFL-CIO Council for his work on behalf of the working men and women in addition to numerous other recognitions and achievements.
Quinn resides in Hamburg, N.Y., with his wife, Mary Beth, and their
children, Jack III and Kara.
Photo caption: Congressman Quinn addresses BLE members following his
appointment as chair of the House's Railroad Subcommittee.
© 2001 Brotherhood of Locomotive Engineers