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OGC-76-33 1 (1976-07-29)

handle is hein.gao/gaobaaedv0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITEO STATES WASHINGTON, D.C. 20848 July 29, 1976 B-l15398 President of the Senate Speaker of the House of Representatives This letter reports a deferral of Department of Transportation (DOT) budget authority that should have been, but was not, reported to the Congress by the President under the Impoundment Control Act of 1974. Pursuant to the Railroad Revitalization and Regula- tory Reform Act of 1976, yhe Consolidated Rail Corporation (ConRail) transferred certain properties known as the Northeast Corridor tothe National Railroad Passenger Corporation (Amtrak). The Department of Transportation C has favored the position that these properties be acquired by Amtrak pursuant to a lease with a purchase option. There- fore, as a matter of policy, DOT has opposed the agreement that was negotiated which provides for the purchase of the corridor on an installment payment basis. Moreover, DOT contends that it is legally prohibited from providing grant funds to Amtrak to directly or indirectly finance the purchase. Under the purchase agreement, ConRail retains track- age fees that would otherwise be payable to Amtrak for use of the Northeast Corridor and applies these amounts against the purchase price. DOT contends that, by this arrange- ment, Amtrak has diverted operating revenues to a capital acquisition and thus has improperly increased its operating deficit. Accordingly, DOT has withheld and intends to with- hold a total of $15 million of budget authority available for operating grants during Fiscal Year 1976 and the Trans- tion Quarter. This -amount represents the total amount of trackage fee revenues that allegedly have been or will be diverted by Amtrak during this period. By letter of July 26, 19/6, to the Chairman, Senate Committee on Commerce, this Office concluded that neither the Antideficiency Act nor any other statutory provision provides a legal basis for DOT to deny or withhold oper- ating grant payments to Amtrak because of the purchase agreement. A copy of the opinion (B-175155) is enclosed. OGC-76-33 0 Te~z--

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