(The following article by Susan Wood was posted on the Tahoe Daily Tribune website on February 9.)
LAKE TAHOE, Nev. — Of the multitude of programs headed to the chopping block, President Bush’s $2.57 trillion budget proposal for 2006 may derail Amtrak, the nation’s passenger train service.
Taking an act of Congress to pass, the proposal as it stands eliminates the $1.2 billion federal subsidy for the rail service and therefore could send it into bankruptcy, Amtrak reported.
“In a word, they have no plan for Amtrak other than bankruptcy. Obviously, the proposal is irresponsible and a surprising disappointment. We are taking it very seriously,” CEO David Gunn said in a statement.
Although the proposal has no impact on 2005, the 2006 legislative action – which could take up to six months to be hashed out – may place Amtrak’s programs and connections in jeopardy. This includes South Lake Tahoe’s $19 one-way bus connection from the Sacramento rail line. Buses arrive at the city’s “Y” transit station daily at 12:20 p.m., 6:30 p.m. and 11:30 p.m.
The White House budget documents cites a $29 billion price tag to taxpayers since Amtrak’s 35-year inception as the reason behind the loss of subsidy.
“Without a subsidy, Amtrak would quickly enter bankruptcy, which would likely lead to the elimination of inefficient operations and a reorganization of the railroad,” the federal proposal reads.
Amtrak Western Region spokeswoman Sarah Swain declined to comment on what programs would be cut first if need be.
There’s the obvious loss of yet another public transportation venue for lake residents seeking to connect with Sacramento. Moreover, those businesses reliant on tourism may find one less avenue for delivering visitors to the area.
Greyhound Bus pulled its connection from South Lake Tahoe more than a year ago when it became cost deficient to run.
“It’s pretty amazing we talk about (the importance of) public transportation, but it’s the first to go (in budget cuts). And it has the potential to solve a lot of problems,” said Carol Chaplin, South Lake Tahoe Chamber of Commerce president and Zephyr Cove Resort spokeswoman.
Venues like Heavenly Mountain Resort have found an advertising partner in Amtrak. For the second season, it has honored an agreement that sells ski packages on the rail service’s Internet link of the Capital Corridor route.
The popular Capital Corridor route touted a ridership of 1.1 million passengers in 2004, a 2.3 percent increase from the year before.
“They need all the help they can get. It’s unfortunate the Administration wants to cut funding at a time when they need it most,” Andrew Strain said on behalf of Heavenly and the South Shore Transportation Management Association.
Already stinging from a possible loss in environmental money, the Tahoe Regional Planning Agency also weighed in on the issue that’s considered the most critical in the basin.
“Certainly, we’re disheartened from any cuts in funding for transportation. It continues to be one of the most important issues to Lake Tahoe. We have a lot of challenges in the transportation arena,” TRPA spokeswoman Julie Regan said.
There may be a light at the end of the tunnel.
Amtrak has survived other budget woes because of supporters in Congress.
A 2003 House transportation plan called for cuts valued at half of its required subsidy. When all was said and done, it came away with the amount necessary to operate.
Amtrak was formed in 1971 from defunct passenger railroads. The rail line services 500 communities in 46 states on 22,000 miles of tracks.