(The following article by Jennifer Perez was posted on the Great Falls Tribune’s website on June 23.)
HAVRE, Mont. — Until Friday, consultants will be accepting comments on how Amtrak’s Empire Builder affects the pocketbooks of Montanans and state government.
Three state departments hired the Washington, D.C.-based economic consultant group R.L. Banks and Associates to analyze the impact of the long-distance passenger train that crosses northern Montana, said Tom Steyaert, of the state transportation department.
The state’s transportation, commerce and agriculture departments paid for the $50,000 study led by consultant Ken Withers. Such a study of Amtrak never has been done before — by the state or federal governments or by Amtrak, Steyaert said last week.
Supporters of the Empire Builder stress that it’s integral to the state’s tourism, transportation and economic development, particularly along the Hi-Line.
Attempts to wean Amtrak from federal aid and shift costs to the states prompted state officials to conduct a more in-depth survey about overall financial impact to the state, residents and businesses.
“We just want to have it in our back pockets when the decision is made on the state of the Empire Builder,” Steyaert said.
About a year ago, the state estimated the impact at a conservative $6.7 million a year in an informal survey it conducted, he said.
For the past six years, the Boxcars restaurant and casino in Havre has provided daily breakfast, lunch and dinners meals for Amtrak passengers.
An agreement the Hi-Line business has with Amtrak is critical to its economic survival, said Craig Anderson, who along with his wife Sandy, own Boxcars.
During Amtrak’s peak season, Boxcars’ employees prepare 250 to 260 meals a day, Anderson said.
Forty percent of the full- and part-time employees dedicate their time preparing the meals for Amtrak, he said.
“It’s very important to my business, and a lot of employees depend on it,” said Anderson, a longtime Montana businessman.
Losing Amtrak would create a serious ripple affect on the state’s economy, especially along the Hi-Line, he said.
“Hopefully they will not pull the plug,” Anderson said.
People from as far north as Canada, south to Billings and along the Hi-Line depend on the Empire Builder for business, medical needs and pleasure, Anderson said.
The Empire Builder transports patients to medical treatment centers along the route that runs daily from Chicago, St. Paul, Minn., Seattle and Portland, Ore.
It allows Hi-Line residents an alternative to driving and flying and helps many businesses haul freight.
“It’s quite a swath across that northern tier that depends on Amtrak,” Anderson said.
Since 1992, 1.2 million passengers boarded the Empire Builder at Montana’s 12 stations, 113,282 of those were last year, according to Amtrak statistics.
The Empire Builder, which came to Montana in 1929, crosses 731 miles of Montana through eight counties and 26 towns, according to State Transportation Planning Chief Dick Turner.
Amtrak also employs 59 state residents and provides them with a $2.2 million payroll.
The federally owned passenger service came within days of bankruptcy last summer after the federal government tried to wean it of government subsidies, funding and loans.
It’s unknown how much each state would have to contribute to keep it running so it’s hoped that the study will provide a better handle of the impact, Steyaert said
Amtrak was “inherited” by Congress in 1970 mainly because freight companies and government mandates made passenger service unprofitable.
The federal government provided one-third of Amtrak’s $3.3 billion budget last year; Amtrak came up with the rest.
Federal funding varies year to year since Amtrak isn’t part of the general transportation bill unlike the aviation and highway sectors.
Plus, train service should be treated similar to highways and airlines, which heavily rely on government subsidies for survival, he said.
Amtrak is the only long-distance passenger rail service in the world required to operate as a for-profit business, Anderson said.
“For some reason they want to stand hard on the Amtrak business,” Anderson said. “That’s ridiculous.”
None of the 23 states represented in a recent conference call with a national highway association committee said they could afford to bail Amtrak out if the federal government chooses to cut off funding.
The study wasn’t prompted by the state Legislature, he added.
Consultants have contacted representatives of the sectors that are affected by the Empire Builder, including various railroad advocacy groups and businesses, officials said.
The informal survey does not allow consultants enough time to notify everybody in the state; and public meetings aren’t required, he said.
Until next Friday at 5 p.m., consultants will welcome additional comments on the affect of the Empire Builder to Montana residents and businesses, consultant Ken Withers, of Washington, D.C., said Wednesday.
The consultant’s work will be submitted to the state by June 30, and a final analysis will be available in mid-July, officials said.