Dear Friends of Amtrak

Amtrak Unlimited Discussion Forum

Help Support Amtrak Unlimited Discussion Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.
Joined
Jun 19, 2003
Messages
1,805
Location
Harrison Michigan
Dear Friends of Amtrak:

Today the House Appropriations subcommittee voted to provide $550

million for Amtrak in FY 2006. This amounts to a shut down budget.

Please read the NARP statement below for more information.

Following the statement by NARP is a letter from Amtrak CEO David Gunn

to Amtrak employees regarding today's vote.

The process is far from over, although this is certainly not a positive

development. In fact, when you can please pick up the phone and call

your representative in the House. Tell him/her that you disapprove of

the vote of the Appropriations Subcommittee and that you would like to

see full funding for Amtrak.

The Congressional Switchboard number is: 1-202-224-3121. Just ask for

the offices of your House representative. That's all it takes.

Thank you.

Regards,

Craig O'Connell

Friends of Amtrak

http://www.FriendsOfAmtrak.com

National Association of Railroad Passengers

900 -- 2nd St., N.E., Suite 308

202/408-8362, fax 202/408-8287

Washington, DC 20002-3557

[email protected]; www.narprail.org

HOUSE APPROPRIATIONS SUBCOMMITTEE VOTES TO KILL PASSENGER RAIL

For Immediate Release

Wednesday, June 15, 2005 - #05-18

Contact: Ross Capon, David Johnson 202/408-8362

Washington--Amtrak would get only $550 million, far below the minimum

needed to continue operation, based on the subcommittee's action this

morning. Moreover, most of the information contained in the

subcommittee's is just plain wrong. The subcommittee which marked up

(wrote) its fiscal 2006 funding bill is the Subcommittee on

Transportation, Treasury, and Housing and Urban Development, The

Judiciary, the District of Columbia.

Amtrak is hit with a fatal, 54% cut in funding while aviation and

highway

spending would rise by 6.4% and 5.4%, respectively, because, as the

committee's release notes, these programs get "unique preferential

treatment...not afforded to any other discretionary program including

Veterans Medical Care, Homeland Security funding or National Defense

programs."

The committee's release pretends that $550 million is not a shutdown

budget and would "fully support rail service for 4 out of 5 riders or

80%

of Amtrak's ridership [including]" the Northeast Corridor and most

other

short-distance trains.

In fact, there is no way Amtrak could avoid bankruptcy and a complete

shutdown at this funding level. Amtrak has requested $1.8 billion.

Amtrak

President & CEO David L. Gunn has stated that, even at $1.2 billion,

Amtrak would be unable to install already-purchased, long-lead-time

items

for its capital investment program.

The DOT Inspector General has testified that "intercity passenger rail

needs Federal funding between $1.4 billion and $1.5 billion, plus [a

continuation of] existing state contributions, in order to maintain the

status quo" but even this would not be enough "to move the system to a

state-of-good-repair."

The idea that $550 million could do anything other than send Amtrak

into

bankruptcy is perhaps more easily understood when one considers

that--although Amtrak has incurred no new debt since mid-2002--debt

service payments still are about $275 million a year.

NARP Executive Director Ross Capon said "The subcommittee's action is

particularly unfortunate when Americans are showing increased interest

in

more transportation choices, especially rail. The transparently

misleading

statements in the subcommittee's release can only serve to further

lower

public respect for Congress."

The subcommittee attacks an Orlando-Los Angeles train by citing

Orlando-Los Angeles air fares, completely ignoring the fact most

passengers on this train are riding between intermediate points, many

of

which lack attractive air service and that many people do not want to

fly

or are medically unable to fly. More than 100 Amtrak-served communities

have no commercial air service; many more have no access to the

discount

air services that the committee's release trumpets.

A number of new items based on the committee's misleading release will

be

added to the "fact check" section at www.narprail.org later today.

Suffice

it to say that the 90% discount the subcommittee attacks applies in the

Northeast Corridor to the 3rd through 6th members of a small group

whose

first two members have paid full fare. If Amtrak did not undertake

targeted fare reductions like this, critics would accuse Amtrak of

lacking

entrepreneurial initiative.

# # #

A Message from President Gunn on the FY '06 Budget

Dear Amtrak Co-workers:

Earlier today here in Washington, the House subcommittee responsible

for proposing how much Amtrak receives in federal support voted $550

million for Amtrak for the entire fiscal year that starts Oct. 1.

That's a 55-percent cut from our present funding level.

There's still a long process ahead and this is not a done deal.

Nevertheless, the practical impact of $550 million in federal support

would be the same as zero funding for Amtrak, and they know it. It

can't run a single train from point A to point B - not on the Northeast

Corridor and not anywhere.

Seven weeks ago today, I testified before the House subcommittee,

reporting on all of the progress we've made lately. I reported that

Amtrak had:

· Decreased our deficit per train mile from $22 in FY '00 to

$13 in FY '04

· Increased system-wide ridership to 25 million - an all-time

record

· Lowered headcount by 20 percent since FY '01

· Established a stable, efficient and vertically integrated

management structure

· Completed millions of dollars in work to reduce the

catalogue of deferred maintenance plaguing plant and equipment

· Presented Congress with a package of strategic reform

initiatives that, if adopted, would transform the funding and

development of passenger rail service

In addition to appearing before the subcommittee formally, I have had

numerous private meetings with these same members. They know that this

amount of money will result in the termination of all intercity

passenger rail service. Comments otherwise are just political spin.

In light of all the progress you and I have accomplished, I am sadly

disappointed at the subcommittee's action, and I imagine you are as

well, given how dedicated so many of you are to your responsibilities

and our passengers. Don't waver in your focus on passenger service and

I won't in mine to secure adequate funding to operate our services and

continue to make good on the reforms we've planned. Regardless of the

subcommittee's vote today, I don't believe that rational people -

lawmakers, governors or simply our regular passengers - want to see

passenger rail service shut down, and I continue to hope in the end

that reason prevails.

Sincerely,

----------

David Gunn

President and CEO

Please distribute at all safety meetings and post on all employee

bulletin boards.
 
Back
Top