Amtrak financing nearly eliminated in proposed Bush budget

Trains.com ^ | Feb 8, 2005 | proprietary

[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”

[BobL]

Technically, it's difficult to disagree. There's really nothing a pilot can do these days, that a bunch of remotely relays and cameras can do. My problem is still with who's at the other end (on the ground).

Think about it, you're in the plane and a voice comes on and says: "Good morning, this is Ground Control and my name is Mohamad. Today we'll be flying right by the Empire State Building, so have cameras ready to take some reeeeaaal close-ups.

[Sam Cree]

Agreed that some or all of the causes that Amtrak can't compete in the market are due to union or government rules, which add significant cost.

I like riding Amtrak, find the crews fairly pleasant and helpful, but think they'd be even more so if there was actually a profit at stake.

I read that Amtrak cut some of the NYC - FL service to cut costs, even though that is one of their most heavily travelled intercity routes. Made me think that if cutting costs was their object, just shut the whole thing down, then at least they'd "break even."

However, I personally am in favor of keeping it funded - in the overall scheme of public money spent on transportation, Amtrak gets very little. Although I think they'd have a chance at a profit without unions. That's not going to happen, though, as long as the freight trains are unionized. Anyway, that kind of socialism has been a part of America for a long time now.

But, like I say, I hope the intercity trains keep running.

[Walkingfeather]

LOL that is true but most likely your taxi driver will do it to you first.

[benjaminjjones]

I like riding Amtrak

So do I.

I never had any problem with the actual workers. It was the sleazy top-level management that bothered me, and they bothered my co-workers too.

I was a direct-report to a great American immigrant Director, who was a direct-report to a closet homo VP of Engineering. There was wide spread dissent in the Engineering Design Dept., in which I worked.

It didn't depend if they were union people, or contract workers, they all knew I worked longer and harder than Management did, just to keep my computer systems running for my co-workers, and because I believed we were providing a valuable public service.

Management people didn't see it, but my fellow workers did, (as did my ex, but that's another story).

I'm still hoping to ride the Empire Builder once, see that part of our Country, and visit my brother in Montana via rail.

It's a dream that's fading fast with Amtrak's potential demise, but it may happen yet.

There's no better way to see our Country than by rail. Sit back, relax, ride & smile.

I'm an Army brat and grew up overseas, have never been further West than New Orleans, but will try to make it onto the Empire Builder some day sooner than later.