(The Associated Press circulated the following report on April 2.)
SOUTH BEND, Ind. — Amtrak will continue to run its two state-subsidized rail lines through July 1 to give lawmakers time to consider increasing the amount the state can spend on the lines, railway officials say.
Amtrak announced the extension on the last day of its six-month contract extension for its Chicago-to-Toronto line and its Chicago-to-Grand Rapids line.
The old six-month contract to continue operating those lines was for $2.85 million, or half of the total $5.7 million state appropriation allowed under state law.
During a conference call on Monday, the state Department of Transportation and Amtrak agreed to a three-month deal in which the state will pay Amtrak $1.43 million.
That means passenger train service continues on all three routes criss-crossing southwestern Michigan.
The routes in jeopardy are the International and Pere Marquette lines.
The Chicago-Toronto International Route runs through Michigan City, Niles, Dowagiac and Kalamazoo while the Chicago-Grand Rapids Pere Marquette line services riders in New Buffalo, St. Joseph-Benton Harbor and Bangor, Mich.
The third line through southwestern Michigan, traveling between Chicago and Pontiac, is not subsidized. It features stops in Niles, Dowagiac and Kalamazoo.
“This is somewhat of a middle ground,” said Stephanie Litaker, spokeswoman for Michigan Department of Transportation. “It provides some continuity for the customer and it gives the Legislature time to lift the cap.”
State law prohibits Amtrak from receiving more than $5.7 million a year to operate the two lines. A state House committee last week approved legislation that would eliminate the cap on that appropriation.
Amtrak has said it needs $7.1 million from the state this year to operate the two lines.
Amtrak spokeswoman Karina Van Veen said the House committee’s action on the legislation is a positive sign.
“We want to give the legislative process time,” she said.
Funding for a new deal with Amtrak would come from the state’s $8.3 million comprehensive transportation fund, which is made up of revenue from the gas tax, vehicle-registration fees and vehicle-permit fees, Litaker said.