(The Lansing State Journal posted the following article by James McCurtis Jr. on its website on April 1.)
EAST LANSING, Mich. — Amtrak will continue to run its two state-funded train lines through July 1 to give the Legislature time to possibly lift a $5.7 million cap, officials said Monday.
The railway had threatened to end its Chicago-to-Toronto line, which runs through East Lansing, and its Chicago-to-Grand Rapids line today unless the state paid $7.1 million a year for the services.
But during a Monday conference call, officials from the Michigan Department of Transportation and Amtrak reached a three-month deal in which the state will pay Amtrak $1.425 million – its current funding level.
The new temporary agreement buys more time for the state and Amtrak to reach a permanent deal.
“This is somewhat of a middle ground,” MDOT spokeswoman Stephanie Litaker said. “It provides some continuity for the customer and it gives the Legislature time to lift the cap.”
Last week, the state House Transportation Committee voted 12-2 on a bill to lift the cap and allow MDOT to negotiate a new contract with the railway. The legislation still has to pass muster with the full House, the Senate and Gov. Jennifer Granholm.
“We think it’s a very positive sign,” Amtrak spokeswoman Karina Van Veen said of the House committee’s action. “It’s definitely a first step in the legislative process. We want to give the legislative process time.”
If MDOT reaches a permanent deal with Amtrak, the money would come from the state’s $8.3 million comprehensive transportation fund. That’s made up of revenue from the gas tax, vehicle-registration fees and vehicle-permit fees, Litaker said.
The three-month contract on Monday comes after MDOT and Amtrak spent months trying to strike a new deal.
Last month Amtrak offered to extend its services to May 15 but MDOT declined, saying the 45-day extension didn’t give customers any assurance for summer travel.
MDOT then offered Amtrak another six-month deal, which Amtrak refused.
“We’re taking baby steps,” Litaker said.
The deal struck Monday makes East Lansing customer Georgia Brand feel “cautiously optimistic.”
“I think it stretches out the agony,” said Brand, who takes the train at least 12 times a year to visit her daughter and granddaughters in Toronto.
“I’m trying to be optimistic, but it’s hard.”