(Gannett News Service circulated the following story by Ledyard King on February 11.)
WASHINGTON, D.C. — Amtrak said Tuesday an administration proposal to give the passenger rail company $900 million is half of what it needs and would lead to a midyear shutdown.
Company President David Gunn said Amtrak needs $1.8 billion in its 2005 budget year to cover losses incurred from running its trains, overhaul equipment and fix deteriorating track along the Northeast corridor from Washington, D.C., to Boston.
“It gets pretty risky not to do the work,” the Amtrak chief said. “We’re not changing 200 miles of rail because it’s fun. We’re doing it because the rail is worn out.”
Gunn’s budget proposal, if passed, would promise steady work for Amtrak’s Beech Grove, Ind., facility, one of two primary maintenance yards where most of the company’s train cars and locomotives are repaired or overhauled. With the $1.8 billion request, more than 1,100 cars and engines would be serviced next year, a slight increase from this year.
Amtrak’s budget proposal calls for keeping the current complement of 649 workers at Beech Grove, including 38 who were recalled last week, said company spokesman Cliff Black.
While it’s unclear what would happen to Beech Grove workers if Congress approved a modestly lower subsidy, Black said there is no doubt about the impact if the White House gets its way.
“If it’s $900 million, all those jobs go away and that ($28 million) payroll goes away,” he said. “We have to wait until we know what our funding level actually is. If it’s less than what we asked for, we would then have to adjust our budget for the year. It’s not known where those adjustments could be made.”
The sparring over funds between the White House and Amtrak has become a familiar refrain. Following a similar divide over funding for 2004, Congress approved a record subsidy of $1.22 billion — enough to keep the trains running but forcing the further deferral of some repairs.
The Bush administration is trying to wean Amtrak off federal subsidies and wants to give states a greater role in determining — and paying for — the future of passenger rail. Its subsidies could grow another $500 million a year in the future, provided certain reforms — including private competition — are undertaken.
“Americans expect meaningful reforms meant to improve service and accountability for their tax dollars. The president’s proposal before Congress would accomplish these goals and place Amtrak on a course toward long-term viability,” said Transportation Secretary Norman Mineta.
Gunn said Amtrak is partnering more with states to share the cost of expanding service, including corridors between Seattle and Portland, Ore.; San Diego and Los Angeles; and Keystone service between Philadelphia and Harrisburg, Pa. Amtrak and Pennsylvania already have agreed to split the $110 million cost of improving the Keystone line by 2006, he said.
Lawmakers from both parties already are lining up behind the rail service, which carried a record 24 million passengers in 2003 and projects to surpass 25 million this year.
“I do agree with the administration that some system reforms are needed but not at the expense of dismantling Amtrak service,” said Rep. Jack Quinn, R-N.Y., chairman of a House panel that reviews rail service. “Our primary focus should be on repairing equipment and making investments in infrastructure to maintain current speeds and operations.”