Posted on 02/16/2005 6:12:01 PM PST by Sam Cree
- Amtrak financing nearly eliminated in proposed Bush budget; Amtrak president reacts in message to employees
WASHINGTON – Highway financing would rise slightly while almost all spending for Amtrak would be eliminated under the Bush Administration’s proposed Transportation Dept. budget, according to a story in today’s New York Times. The budget provides no money for Amtrak itself, but does include $360 million to maintain commuter service that uses Amtrak right-of-way in the Northeast Corridor if the passenger carrier goes bankrupt.
Transportation Secretary Norman Y. Mineta said federal subsidies for Amtrak had almost doubled in the last four years, to $1.2 billion in 2005 from $520 million in 2001. "After 34 years of Amtrak operating losses and $29 billion in taxpayer subsidies, it is clear that the current model of passenger rail service is flawed and unsustainable," Mineta said.
Amtrak, however, has always survived because of supporters in Congress, and they rallied to its defense on Monday. Senator Charles E. Schumer (D - NY), said, "Eliminating Amtrak wouldn't just cost us billions of dollars in operating funds for the trains and the business people and tourists they bring here, it also shreds the safety net we'll need in case - God forbid - our airspace is shut down again like it was after 9/11."
The Administration’s proposal is seen by some as basically flawed because of the length of time, and money, that would be required to actually shut down Amtrak.
Amtrak President David Gunn issued a statement of support to Amtrak employees on the proposed Bush budget.
Dear Amtrak Co-Workers,
“Earlier today, President Bush sent to Congress his proposed budget for FY '06. It provides no funding for Amtrak. In contrast, this year we are spending $1.4 billion, of which $1.2 billion is from a federal appropriation to support our operations and capital programs across the country.
“The President's proposal does provide $360 million to the Surface Transportation Board for continued commuter and freight operations on the NEC [Northeast Corridor] only after forcing an Amtrak bankruptcy. It also isn't accompanied by any kind of plan for how Amtrak could continue operations. In a word, they have no plan for Amtrak other than bankruptcy.
“Obviously, the proposal is irresponsible and a surprising disappointment. It doesn't acknowledge all the hard work you've done over the past two years to run a tighter and better ship. Our costs are more under control than ever before - that's quite an accomplishment.
“It is critical that reforms and improvements must continue, however. Amtrak's management is engaged with its board, the Department of Transportation, and others for this purpose. That work continues. We are committed to an efficient and productive rail passenger system. The plan to force us into bankruptcy would be counterproductive to this goal.
“The President's proposal is only the start of a long legislative process, and we are taking it very seriously. This process has a lot of twists and turns, and it always takes six to nine months to sort out. It won't have any impact through the 2005 fiscal year, but there's going to be very little cash left at the end of this year. Rest assured that after all we have been through, I am committed to doing everything I can to secure adequate funding for FY '06.
“We have strong support in Congress and a lot of support across the country.
“The best thing that all employees can do is to do their jobs professionally, delivering the highest quality passenger service we know how. If we really care about our passengers, others will care about us. As I travel in the Midwest this week, you can bet that I'm going to be looking at service standards. Stay safe out there, and keep your heads up.
Sincerely, David L. Gunn”
Add the US postal service to that list of subsidized money eaters
>>The Japanese are experts in running railroads. Why don't we just invite them to run Amtrak?
The big issue is to do as the Japanese did in '85, privatize and decentralize a huge public trans. service.
Japan has dozens of small, local area trains, and one decentralized national train split in to several branches. If Amtrack were to be sold off, I'm sure quite a few companies could make money off a Los Angeles, Las Vegas, San Fran link up, and the South could link up for cheap as well. Private train companies in Japan make LOADS of cash, and own baseball teams, malls, and advertising companies.
Once people resign Amtrack to actually making money, the money making will begin.
"Fine. But only if you do away with all of them. That would be a revolution, and would interupt commerce as revolutions do."
That is my exact point. People don't seem to realize the amount of money our government pours into business. Personally, I'd much rather take the train than fly.
Without reference to the merit or lack thereof, agreed that Congress doesn't have the cojones to kill Amtrak. At least I don't think so.
Good...let them walk, they will get there quicker.
Nearly? Not nearly enough.
I disagree with President Bush's budget on this issue. I use Amtrak and believe that the federal government should continue to support the Amtrak rail system.
I use Amtrak too. Granted, it would be better run privately, and should be run privately, but the government and the public are so far away from even thinking of allowing market forces to determine how our transportation systems are run that I think there is nearly no hope of it.
They've already cut back on the trains passing thru Pittsburgh to points east, Harrisburg and Philly. How much more are they gonna cut? Do they want me to take a disgusting Greyhound bus? Sheesh, find the money somewhere to keep our trains running. Just do it. I'm a taxpayer and I have spoken!
Sony bought Columbia Pictures. MGM is owned by financier Kirk
Kervorkian.
Sounds good to me. Keep prices of Amtrak and local bus and trolley services DOWN. All I need is another item in my life to go UP in price. Allegheny County (Pittsburgh PA) is sending out increased housing assessments and there's an ongoing battle over that between Chief Executive Dan Onorato, who wants a 4% cap on increases, and the libs incl. the Pittsburgh Post-Gazette. Tax and spend, Tax and spend. Everybody wants a piece out of my retirement check, and I'm sick of it!
Well, I think if rail passenger service was privately run and open to competition, it would be both cheaper to ride and profitable. But since no segment of public transportation is allowed to respond directly to the market, IMO Amtrak is as deserving of subsidy as the rest, including highways and airlines. So yeah, Amtrak should get money. Under the circumstances.
Here's hoping they don't substantially raise Amtrak fares the next time I decide to take the train. I have to watch my cash outflow, since my taxes in the Blue State of PA keep going up, up, up.
Well, I think Amtrak is obliged, for its credibility, to at least try to compete in price with air travel.
BTW, drove up 81 all the way through PA last week on the way to Syracuse. Beautiful country, though a little desolate in places.
Hmmmmm.... an interestiong proposal
There's no right to drive, many don't drive, don't own a vehicle. I agree with Chuck in this case. More options are better.
Denny Crane: "There are two places to find the truth. First God and then Fox News."
Denny Crane: "There are two places to find the truth. First God and then Fox News."
Last time I rode AMTRACK, there was a guy deep in his cups, in the bar car, in a fancy uniform.
"What's your story?", I asked, full of innocence.
"I am the fireman."
"The what?"
"I shovel coal into the engine."
"Ummmm...it's a diesel-electric."
"Yeah, union rules - no train moves without a fireman on board."
"Have you ever seen a coal shovel?"
"No, but my Dad had one, before I was born."
"Oh. Well, let my buy you 6 out of your next seven drinks, then."
Stop the TRAIN - I want to get off.
I am not retired.
I am 42 years old, I made about a few dollars last year.
On that money, I supported my family (5 of us), my parents, my grandparents, my church, a few others.
And I paid more in taxes than 98% of americans make.
But if you insist that I support your toy railroad, I WILL retire.
I will move myself, my bloodsucking relatives, and my cash offshore.
And you can GET OFF YOUR FUNDEMENT and fund your own dang retirement.
Because I have had enough.
(Who is John Galt?)
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