(The following article by Matthew L. Wald was posted on the New York Times website on April 21.)
WASHINGTON — Amtrak proposed a package of changes on Thursday that would seek additional money from states and from commuter rail lines that operate on its tracks.
The proposal raises the possibility of allowing other companies to take over some services or even run trains. In exchange, Amtrak asked Congress for $1.8 billion for the next fiscal year, about 50 percent more than it is receiving.
The Bush administration has proposed stopping all subsidies unless Congress reorganizes the company.
But at a hearing of a Senate commerce subcommittee on Thursday, senators called for changes but also voiced strong support to continue subsidies for Amtrak.
The chairman, Senator Trent Lott, Republican of Mississippi, referred to the administration’s position and asked the general counsel of the Transportation Department, Jeffrey A. Rosen, whether the department had considered “the ridiculousness of this proposal.”
Amtrak’s proposal is different on many points from what the administration wants. It calls for Congress to pay off its $3.5 billion debt and does not rely on financing from regional groups of states, and it rejects the idea of turning over the Northeast Corridor, the tracks between Boston and Washington, to someone else. It also rejects the idea that Amtrak should break even on operating costs.
Despite the proposals’ differences, Transportation Secretary Norman Y. Mineta declared victory.
“After some 34 years and $29 billion of taxpayers’ money,” Mr. Mineta said at a news conference, “Amtrak is now acknowledging that its current business model is unsustainable and in need of serious reform.”
Mr. Rosen, Mr. Mineta’s representative on the Amtrak board, did not vote for the Amtrak proposal because it was so different from the administration’s.
The board is made up of four members, all Bush appointees. It was supposed to submit a financing request on Feb. 15.
A problem is the fate of interstate service if the plan relied on states’ money and one or two states did not want to pay. The chairman of the Amtrak board, David M. Laney, asked about that, said its proposal did not rely on such state support.
Mr. Mineta, asked how much money the administration would propose if reform was achieved, would not say.
Mr. Rosen said: “Reform first. Money will follow.”
The inspector general of the department, Kenneth M. Mead, said no matter who was paying, Amtrak would need more money simply to maintain its current service level.
In addition, the Northeast Corridor needs $1.8 billion to $2 billion in the next few years to be brought into good repair. Some experts say the overhead power system is so old that it will begin causing major delays soon unless it is replaced.
Mr. Laney also warned that because all Acela Express trains are out of service, the loss of revenue from those premium trains could cause Amtrak to use up all its available cash by the end of its fiscal year, Sept. 30.
Major parts of the proposal would require Congressional action, which may be hard to achieve.
James M. Brunkenhoefer, national legislative director of the United Transportation Union, said some proposals were untenable. One would reduce pensions, Mr. Brunkenhoefer said, but any change in Amtrak pensions would affect freight workers, too. “We’re not going to have our widows lose money to save Amtrak,” he said.
The idea that Amtrak could collect more money from the commuter agencies that use its tracks also drew fire.
“It’s robbing Peter to pay Paul,” Senator Charles E. Schumer, Democrat of New York, said. “The commuter lines are as beleaguered as Amtrak. It’s just a cost-shifting measure that doesn’t solve the problem.”
“It’s no different than telling the states, ‘You pick up the costs,’ ” Mr. Schumer said.
Representative Robert Menendez, Democrat of New Jersey, said: “Basically, the federal government is throwing in the towel on Amtrak and expecting the states to pick it up. I believe that intercity passenger rail is inherently a national responsibility.”
Amtrak can try to renegotiate financial arrangements with most commuter lines whenever they expire. But federal laws and rules limit the deals with four agencies, the Long Island Rail Road, New Jersey Transit, the Southeast Pennsylvania Transit Authority in the Philadelphia area and Marc in Maryland. They pay only “avoidable costs,” or the extra costs of running their trains on the rails, as opposed to a share of total costs proportional to their use of the tracks. Amtrak wants Congress to change the law.
In the New York region, Metro-North runs on Amtrak tracks between New Rochelle and New Haven. Amtrak owns Pennsylvania Station in Manhattan and the East and Hudson River tunnels, as well the Northeast Corridor Line in New Jersey.