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(The Macon Telegraph posted the following article by Andy Peters on its website on April 10.)

ATLANTA – Georgia Gov. Sonny Perdue told the chairman of Norfolk Southern Corp. on Friday that Georgia is too cash-strapped to buy the rail line between Atlanta and Macon.

The decision deals a blow to plans for establishing a passenger-rail link to Middle Georgia from the state capital.

“I hope the governor hasn’t taken it off the table,” said House Speaker Terry Coleman of Eastman. “That would be a mistake.”

However, Perdue told Norfolk Southern Chairman and Chief Executive David Goode that Georgia would like to keep its options open with the rail company.

Goode was traveling Wednesday and was not available for comment, Norfolk Southern spokeswoman Susan Terpay said.

The Georgia General Assembly has been scrambling in recent weeks to find ways to fill a budget deficit that’s approaching $1 billion. Spending is being cut in all state agencies and a tax increase has been proposed.

State officials have been in talks with Norfolk Southern for months about either buying or leasing the “S” line between Macon and Atlanta, with the eventual goal of running trains on the tracks to carry passengers. The cost to buy the line has been estimated at least $300 million.

Without some type of agreement with the state of Georgia to use its rail line, Norfolk Southern has other options, other rail company executives and state transportation officials said. Norfolk Southern could sell the line in pieces to other companies. It could also upgrade the line to allow intermodal service, which brings in higher shipping fees, or it could arrange a lease agreement with the state for passenger service.

Coleman said a lease agreement should be explored. Leasing the lines would be cheaper than buying them.

“I think there’s more than one way to skin a cat,” said Coleman, an avid supporter of passenger rail to Middle Georgia.

Earlier this year Norfolk Southern signed an agreement with the Metro-North Railroad of New York state to lease its Port Jervis line. Metro-North is one of the largest commuter-rail systems in the nation.

In February, Coleman said that he had gotten the impression in meetings with Perdue that the governor was interested in launching commuter rail. Coleman wants the legislature to approve $7 million in rail funding that would trigger a $29 million grant.