(The Associated Press distributed the following article on March 24.)
LANSING, Mich. — The Michigan Department of Transportation on Monday offered a six-month contract to Amtrak to keep two of its passenger rail lines open in the state, but a company spokeswoman indicated the offer is not enough.
Amtrak receives $5.7 million a year from the state to operate two of its three Michigan routes — the Chicago to Toronto line and the Chicago to Grand Rapids line. Amtrak officials have said they need $7.1 million a year to continue operating the two lines.
Amtrak has been operating the lines under a six-month contract for half of $5.7 million or $2.85 million. That contract expires March 31.
The state’s second six-month contract would dedicate the remaining $2.85 million to Amtrak for the year, Gloria J. Jeff, director of the Department of Transportation, said in a written statement.
“The six-month contract will allow potential passengers to make summer travel plans with confidence,” she said. “But it’s also important to remember the State of Michigan is experiencing a severe budget crisis that requires a complete reexamination of funding priorities.”
Karina VanVeen, a spokeswoman at Amtrak’s headquarters in Washington D.C., said of the state’s offer: “We need 7.1 million to continue service.”
VanVeen said the company is watching a bill that has the potential to raise annual rail funding above $5.7 million.
If there are no changes in the state’s offer, VanVeen said, “We will have to have a serious discussion with the state on the future of passenger rail service in the state of Michigan.”
If Amtrak accepts the six-month contract, the transportation department will evaluate funding demands and make a recommendations to the state Legislature.
Amtrak’s third line in Michigan, Chicago to Pontiac, would remain without a new contract because it’s not subsidized.