(The Associated Press circulated the following on February 26.)
WASHINGTON, D.C. — Amtrak has requested $1.67 billion in federal funding for the next fiscal year, 26 percent more than it is receiving this year.
The Bush administration has asked for only $800 million for Amtrak, the same amount it proposed last year.
Amtrak’s request, discussed at a House appropriations subcommittee hearing Tuesday, reflects increased costs connected to a recent labor settlement with most of the railroad’s unionized workers. However, it does not include $114 million in back wages that are to be paid out next year.
The agreement, which still needs to be ratified by workers, makes payment of 60 percent of the back pay contingent on Congress providing the money. Amtrak has agreed to absorb the other 40 percent of the retroactive raises and pay it this year.
Chief Executive Alex Kummant told Congress the passenger railroad’s largest cost increase would be in benefits, which are expected to rise by $50 million. He said the increase was primarily due to rising health care costs and would have been larger if not for cost-sharing agreed to in the recent labor negotiations.
Kummant also cited rising fuel costs as another reason Amtrak wants more federal funding despite increases in ridership and revenue last year.
Amtrak’s strategic goals include providing faster service and developing short-distance corridor lines, Kummant said.
To achieve those, “Amtrak will continue to require a certain core level of operating assistance and capital investment from the federal government,” Kummant said in prepared testimony.
Administration officials say reducing funding to $800 million will help wean the railroad off operating subsidies.
“This funding level encourages Amtrak to continue to undertake meaningful reforms and control spending,” Federal Railroad Administrator Joseph H. Boardman said in remarks prepared for the hearing.