Reduction of funds targeted for information technology development would also result in a decline in service. Congressional action to permanently set our rent at the actual cost level or to increase the RRB s funding to offset the additional rental charges may be required to mitigate this factor. As other agencies find themselves operating with fewer resources, there is a possibility that their reductions would impact our services. The RRB depends heavily on interagency cooperation and support to carry out many of our functions and services. We will continue to maintain contacts with key agencies to ensure active coordination and support.
Payroll taxes are the primary source of financing for railroad retirement benefits.
If economic conditions change significantly, rail industry employers may be required to substantially reduce staffing. Currently, we anticipate such action only under a pessimistic employment scenario. In the past, larger than expected declines in railroad employment have resulted in legislation to reduce benefits and increase taxes. A similar need for legislative changes may arise if there were a dramatic, sudden, unexpected decline in railroad employment. The impact could be mitigated if alternate sources of financing are identified.