Bush signs the bill for Amtrak

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BUSH FLIP-FLOPS, CLEARS AID TO AMTRAK

WASHINGTON -- After vowing to eliminate all subsidies for Amtrak, President Bush signed legislation yesterday (Nov. 30) that will provide the financially ailing passenger railroad with $1.3 billion in federal aid for next year, according to this report by Robert Cohen published by The Star-Ledger.

The Amtrak appropriation is part of a $137.6 billion transportation funding bill that includes more than $120 million for New Jersey highway and transit projects.

The White House, intent on breaking up Amtrak, shifting some of its rail costs to the states and potentially selling off portions of the passenger line to private interests, had proposed zero funding for fiscal 2006, in part to spur financial reforms.

Both the House and Senate rejected the administration plan to end subsidies, coming up with a compromise $1.3 billion package that represents a $108 million increase over current funding.

Amtrak spokesman Clifford Black said the appropriation will allow the money-losing rail line to continue operating in the year ahead and avoid the possibility of insolvency.

The measure includes $495 million for operating subsidies and more than $780 million to maintain and repair capital infrastructure, of which $280 million could be used for debt-service obligations.

The agreement requires Amtrak to achieve savings by increasing its operational efficiency, including changes to food and beverage services and first class service. It also requires submission within 60 days of an approved comprehensive business plan to Congress to curb continual operating losses.

Separate legislation to provide a long-term financing solution and mandate specific reforms for Amtrak is pending in Congress. The plan, sponsored by Sens. Trent Lott (R-Miss.) and Frank Lautenberg (D-N.J.), is opposed by the Bush administration because it envisions maintaining a nationally-run rail system and continuing large subsidies for years to come.

The congressional plan had been backed by Amtrak President David Gunn, who was fired earlier this month by the rail line's board of directors. Gunn also opposed the board's plans to separate the Northeast Corridor from the rail corporation.

Besides Amtrak, the legislation signed by Bush will provide funding for a number of New Jersey initiatives.

These include $12.3 million to continue planning for a new rail tunnel linking northern New Jersey to Manhattan; $100 million to extend the Hudson-Bergen Light Rail 6.1 miles north from Hoboken to Tonnelle Avenue in North Bergen and south from 34th Street to 22nd Street in Bayonne; $2 million for the Delaware Ferry Terminal; $1 million for Newark Penn Station improvements; and $3 million for restoration of Morristown Station.

(The preceding report by Robert Cohen was published by The Star-Ledger on Thursday, Dec. 1, 2005.)
 
One thing that bothers me: I noticed how the bill contains language that "changes dining and first-class service." I hope that doesn't mean kill the diners and sleeping cars. I would hate to have to take my annual trip to Florida without the option of sleepers.
 
WICT106 said:
One thing that bothers me: I noticed how the bill contains language that "changes dining and first-class service." I hope that doesn't mean kill the diners and sleeping cars. I would hate to have to take my annual trip to Florida without the option of sleepers.
Both myself and my friend/co-worker have been trying to tell y'all this (particularly regarding the language in the legislation since it came about) for over year now. It is getting ugly these coming months/year or so! There will be trains, however, not what you are used to! Some routes may not even be affected by anything, and some could change drastically or totally disappear. They key here (as always when talking about Amtrak) is "We'll see what happens." OBS...
 
Guest_Amtrak OBS Employee said:
WICT106 said:
One thing that bothers me:  I noticed how the bill contains language that "changes dining and first-class service."  I hope that doesn't mean kill the diners and sleeping cars.  I would hate to have to take my annual trip to Florida without the option of sleepers.
Both myself and my friend/co-worker have been trying to tell y'all this (particularly regarding the language in the legislation since it came about) for over year now. It is getting ugly these coming months/year or so! There will be trains, however, not what you are used to! Some routes may not even be affected by anything, and some could change drastically or totally disappear. They key here (as always when talking about Amtrak) is "We'll see what happens." OBS...
OBS:

I’m curious, as an employee, what are your thoughts concerning the this legislation and how it will or won’t effect the Auto Train?

From what I’ve read, the Auto Train is one of the few money making routes for Amtrak. I can’t see Amtrak’s “board” wanting to fool around with a route that’s actually bringing in cash for the system.

Thoughts or comments anyone?
 
I can certainly see the bush-puppet board trying to break anything that is working because then their arguments next year to kill the whole system would carry more weight. Until there is a non-partisan board, of people who understand passenger rail, the "board" will do whatever the white house tells them to do. Unlike a true board of directors, who have a legally-enforceable fiduciary duty to the company, this board clearly doesn't give a rat's patoot for the company, and they will do whatever the white house tells them to do. As evidence, we already have the smoking Gunn.
 
Guest said:
OBS:
I’m curious, as an employee, what are your thoughts concerning the this legislation and how it will or won’t effect the Auto Train?

From what I’ve read, the Auto Train is one of the few money making routes for Amtrak. I can’t see Amtrak’s “board” wanting to fool around with a route that’s actually bringing in cash for the system.

Thoughts or comments anyone?
We'll put this into perspective in terms of logic. Personally, I don't see why they would mess with that route. But remember! Who is to say "they" will use logic? LOL... OBS.. :blink: :ph34r:
 
Does Norman Minetta have a say in the disbursement of the funds? I hope I read that wrong!
 
MDRailfan said:
Does Norman Minetta have a say in the disbursement of the funds? I hope I read that wrong!
He does, and has for the last few years. Up until a few years ago, Amtrak subsidy funds went directly from the Treasury to Amtrak. Various debacles, such as the infamous Lake Country Limited fiasco, ended that. Amtrak funds are now passed through DOT subject to financial reporting and accountability. Despite the considerable antagonism between DOT and Amtrak last year, all payments from DOT to Amtrak were made on schedule.
 
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