Posted on 06/24/2002 8:24:18 PM PDT by gcruse
WASHINGTON -- Don't waste more taxpayer money on Amtrak, scholar says
Amtrak's board of directors was called to a meeting Monday at the request of Transportation Secretary Norman Y. Mineta, who says the government wants to avoid a shutdown of the beleaguered rail monopoly and would consider providing emergency funds. Mineta says one option would be an emergency appropriation of $200 million from Congress. Cato Institute Adjunct Scholar and Amtrak expert Edward L. Hudgins had the following comments on the issue:
"Amtrak, which has collected over $25 billion in taxpayer subsidies in its three decades of existence, does not deserve yet another bailout. Congress mandated in 1997 that Amtrak be operationally self-sufficient by 2002 and has continually pressured the railroad to reverse its money-losing ways but to no avail. Unfortunately, Congress continues to reward Amtrak for its incompetence with handouts.
"In light of the Enron and Arthur Andersen scandals, it is outrageous that Amtrak refuses to completely open its books for independent reviews, which no doubt would further expose gross mismanagement and decisions made for political rather than business reasons. What is worse, Amtrak is holding its own passengers hostage by threatening to stop all service if it doesn't receive another $200 million from Congress. But the Northeast corridor and other parts of its system could be run profitably by private companies that wish to purchase Amtrak.
"Amtrak should not be bailed out again. Rather, it should be declared bankrupt, put into receivership and sold off to private owners."
Edward L. Hudgins is co-author, with former Amtrak Reform Council member Joseph Vranich, of the study "Help Passenger Rail by Privatizing Amtrak." This report can be found on the Cato Institute Web site at www.cato.org/pubs/pas/pa-419es.html.
Copyright © 2002 United Press International
Atlamont Press Railroad Newsline
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Congress fighting for Amtrak routes
In a letter to the nation's governors on Friday, Amtrak president and chief executive officer George D. Warrington, wrote "While Amtrak could not be more committed to a national passenger system, if funding falls below Amtrak's budget, it is likely that certain trains will be discontinued."
Amtrak announced on Feb01 that it would issue discontinuance notices by March29, reserving the authority to cut routes in October. Although he backed away from that yesterday, Warrington wrote governors that he was encouraged by congressional reaction to the earlier announcement. However, "uncertainties associated with the legislative process" mean Amtrak must prepare for the possibility that it will not receive the money to maintain current service.
The letter could be interpreted as an effort to garner states support behind Amtrak's $1.2 billion budget for the 2003 fiscal year, which starts on October01. The Bush administration has proposed a subsidy of $521 million, less than half of Amtrak's request.
Sen. Kay Bailey Hutchinson, R-Texas and Sen. Ernest F. Hollings, D-S.C., are co-sponsors of a $4.6 billion budget measure that would keep the government-subsidized rail system fully operational for another six years. The Senate Commerce Committee is scheduled to vote on the measure Apr18. - Christopher Thorne, The Associated Press and Dave Montgomery, The Fort Worth Star-Telegram, courtesy Larry W. Grant*****
I think there's a whole slew of congresscritters that have a constituency that doesn't consist of subsidized riders. Unfortunately, there's quite a few liberals and RINO's in that group. I would hope that my congressman votes against AMTRAK.
I say that with some difficulty, since I am a train buff. But until it becomes a viable business instead of a jobs program, it will never prosper.
In all fairness,about one hour of that is from Palm Bay on the east coast to Kissimmee because Melbourne/Palm Bay still doesn't have a station.
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