$700Million for CSX Relocation in doubt

[spbed]

Dont worry us taxpayers will wind up footing the bill for this boondoggle since GWB Secy of the $$$$$$$$ is ex CSX CEO Snow [:(!]

QUOTE: Originally posted by Limitedclear

Posted on Thu, May. 18, 2006



Katrina money bill doubtful
Cochran: Bush not backing it
By GEOFF PENDER
[e-mail]

JACKSON - U.S. Sen. Thad Cochran says it's looking doubtful that an additional $28.9 billion in Katrina spending approved this month by the Senate will pass, primarily because of lack of support from the White House.

The House and Senate are in negotiations on the measure, but Cochran says he's heard from House leaders "that if the president doesn't ask for it, then they're not going to approve it."

"I think President Bush feels a lot of pressure to show leadership in holding down the deficit, even though the deficit because of how well the economy is doing is about $100 billion less than had been projected," Cochran said. "But in spite of that reality, I think the White House advisers have convinced (Bush) that he's got to be shown holding down spending."

Cochran helped shepherd the passage late last year of the $29 billion Katrina relief package that was nearly double what Bush had recommended.

But Cochran said he doesn't foresee much more federal Katrina spending "for the balance of this fiscal year," which ends in September, although he predicts more can be secured next year.

"We are working hard every minute to get as much as we can justify," Cochran said.

The current Senate proposal has $700 million to move the CSX railroad tracks, a move proposed long before Katrina and seen by some as key to rebuilding a better Coast. A vacated rail line would allow construction of a new east-west highway, taking traffic off U.S. 90 and allowing it to return to a scenic beach boulevard.

But Cochran said, "We haven't received any encouragement about that from the House at this point."

[solzrules]

Wether it benefits the railroad or not, it is public tax dollars. Why should public tax dollars be used to re-locate a track that isn't really necessary? If CSX wants to keep the track there and they aren't willing to foot the bill to move it themselves, then why not just leave it? You don't have to spend the money just because it is there.

[jeaton]

Seems to me that with $700 million and the track material, CSX would be in a good position to get into a joint venture with the Norfolk Southern and/or CN and add a lot of capacity to run the trains from Mobile to New Orleans via Hattiesburg.

Not that that would be my favorite place to spend the money, but then there not going to give it to me, so what the hey...

[Anonymous]

QUOTE: Originally posted by AMTK200

I feel that this $700 Million should be used for other things and let CSX keep there line. I feel this plan is a bad idea and very stupid.

Perhaps, but the people who live and work in Mississippi want it to happen and their Congressional delegation is quite powerful. Given that they need help after Katrina and the fact that highway construction is going to produce a LOT of jobs the amount of money is not that great. Also, what do you suppose will happen the next time someone else wants a project in their state or district who votes against this one?? Sen. Cochran could probably block most earmarks in either chamber by himself as Chairman of the Senate Appropriations Committee. With Sen. Lott's help, well lets say that I wouldn't want to need much money from the government in such a district or state...politics, its all politics...

LC

[Anonymous]

I feel that this $700 Million should be used for other things and let CSX keep there line. I feel this plan is a bad idea and very stupid.

[Anonymous]

QUOTE: Originally posted by Junctionfan

Where would the new line be if the house approved the bill?

No. See my prior post conmcerning the Railroad to Nowhere on this site with explanatory article.

LC

[Anonymous]

QUOTE: Originally posted by fado12c

This was started by Senator Lott. There was more to it than a highway, it was supposed to spur casinos and redevelopment in a depressed area. My understanding was that CSX didn't want it anyway - no advantage to them and they just rebuilt the current line.

Actually, that isn't quite true. CSX is sitting on the fence. Remember, they get $700 Million for the ROW. CSX just rebuilt it for about $300 MIllion with $250 Million coming from insurance. So, since the state doesn't need the track, if the deal goes through you can figure that CSX will also be able to pick up all that BRAND NEW material. So the deal probably has value of closer to $900 Million for CSX. There is very little industry on the line west of Pascagoula (where the line would end). As Mississippi folks might say, "that ain't chicken feed, neither..." Also, lets not forget that although CSX was able to rebuild this time, do you really think that the insurance companies will ever want to insure that line again after Katrina??? Not on your life...

So there are indeed advantages for CSX to accepting some sort of deal. Will it happen? Only the shadow knows...

LC

[Anonymous]

This was started by Senator Lott. There was more to it than a highway, it was supposed to spur casinos and redevelopment in a depressed area. My understanding was that CSX didn't want it anyway - no advantage to them and they just rebuilt the current line.

[solzrules]

Good. Hopefully the president will grow some balls and refuse to sign it.

Spending for bells and whistles like that need to be stopped.

Relocate the rail line so they can have a scenic boulevard? How is that essential to Katrina relief?

[Junctionfan]

Where would the new line be if the house approved the bill?

[Anonymous]

Posted on Thu, May. 18, 2006



Katrina money bill doubtful
Cochran: Bush not backing it
By GEOFF PENDER
[e-mail]

JACKSON - U.S. Sen. Thad Cochran says it's looking doubtful that an additional $28.9 billion in Katrina spending approved this month by the Senate will pass, primarily because of lack of support from the White House.

The House and Senate are in negotiations on the measure, but Cochran says he's heard from House leaders "that if the president doesn't ask for it, then they're not going to approve it."

"I think President Bush feels a lot of pressure to show leadership in holding down the deficit, even though the deficit because of how well the economy is doing is about $100 billion less than had been projected," Cochran said. "But in spite of that reality, I think the White House advisers have convinced (Bush) that he's got to be shown holding down spending."

Cochran helped shepherd the passage late last year of the $29 billion Katrina relief package that was nearly double what Bush had recommended.

But Cochran said he doesn't foresee much more federal Katrina spending "for the balance of this fiscal year," which ends in September, although he predicts more can be secured next year.

"We are working hard every minute to get as much as we can justify," Cochran said.

The current Senate proposal has $700 million to move the CSX railroad tracks, a move proposed long before Katrina and seen by some as key to rebuilding a better Coast. A vacated rail line would allow construction of a new east-west highway, taking traffic off U.S. 90 and allowing it to return to a scenic beach boulevard.

But Cochran said, "We haven't received any encouragement about that from the House at this point."