(The Helena Independent Record published the following story by John Harrington on its website on August 6.)
HELENA, Mont. — In something of a pre-emptive strike that proved prescient, three state agencies recently spent $48,000 for a consultant study showing the value to Montana of Amtrak’s Empire Builder line across the Hi-Line, in the event the federal government tried to tinker with the service.
Thus, Montana was one of the few states armed with hard data when President Bush recently announced a plan to shove funding responsibility for the money-losing national passenger railroad off onto the states.
The Bush plan, announced late last month, would splinter Amtrak into three companies during the next three years, including a private passenger line that would run trains under contract with states; a separate company running the rail’s more viable Northeast Corridor service; and a government-owned company that would retain the Amtrak name and the rights to use freight rails across the country.
Montana officials balked at the idea of funding Amtrak with state dollars, insisting the railroad is a vital cog in the diverse national transportation infrastructure.
“Our chief concern is the cost issue,” said Montana Transportation Secretary Dave Galt. “The long-distance rail system is a national transportation system, and this plan shifts costs to the states at a time when states already face huge cuts and budget limitations.”
Galt estimated the cost to Montana would be $20 million a year to maintain the Empire Builder’s current level of service.
Funded by the departments of commerce, transportation and agriculture, the study found that:
Non-resident travelers riding Amtrak spend between $5.3 million and $5.7 million annually, generating around a half million dollars in personal income for Montanans.
Non-resident spending by train passengers generates $135,000 in state and local tax revenue.
Amtrak employs 59 people in the state who earn nearly $2.4 million, with additional direct spending by the railroad bringing the total to $3.7 million to $4.1 million annually.
“From an agricultural perspective, this is a major transportation resource for the Hi-Line and Montana’s rural communities,” said Agriculture Department Director Ralph Peck. “It adds to the economic viability of the small communities in Montana that depend on Amtrak for everything from shipping of parts to transportation. ”
Montana’s entire congressional delegation opposes the Bush plan. Gov. Judy Martz and her colleagues from the region are expected to take up the issue next month when the Western Governors’ Association meets here.