Rail Passengers on Bush Amtrak Budget Request: “They Still Don’t Get It”

Release #07-03—February 5, 2007

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Washington, D.C.—Beyond giving Amtrak’s Administration-appointed Board of Directors credit for making “some progress in 2006 to strengthen [Amtrak’s] finances by increasing revenues and controlling costs,” President Bush’s budget released today is a big disappointment, and yet another departure from reality.

The Administration’s recommended Amtrak funding level is actually down $100 million from last year’s request.

NARP Executive Director Ross Capon said, “The Administration is trying to take credit for creating the long-awaited federal-state partnership program without providing new money. They simply reduce an already comically-inadequate $900 million request by $100 million, and assign the latter amount to ‘capital matching grants to States for intercity passenger rail projects.’”

In any event, at either funding level the vital foundation that Amtrak provides would disappear—both for existing state services and for the improvements that the $100 million might help fund.

Once again, the President’s budget makes no provision for Amtrak’s debt service needs of roughly $300 million. The Administration did not fund this debt service last year either, dismissing this very real cost as “Amtrak’s problem.” [Note: Amtrak has taken on no new debt since June 2002 and has paid off about $400 million since then.]

It is well known that even if Amtrak eliminated the overnight trains (and thus all service in 27 states):

(1) There are no first-year savings; and
(2) Congress would not fund the 21-state group of isolated corridors that would remain.

Eliminating those trains also relegates many communities with few or no other public transportation alternatives to isolation.  There are also increasing numbers travelers who must—for medical reasons—take the train rather than fly.

Furthermore, the overnight trains facilitate start-up of commuter rail and short corridor services. If the New York-Florida trains had stopped running when Amtrak was created, the architect of the Capitol likely would have commandeered the First Street tunnels for non-railroad purposes, making it impossible to offer Washington-Richmond or Virginia Railway Express service today. For a more recent example, the existence of Amtrak’s Southwest Chief made it easier to start up Albuquerque’s commuter rail service.

To say that the long-distance trains consume “most” of Amtrak’s “operating subsidy” is to take an artificially narrow view of the system’s costs. Amtrak will receive just shy of $1.3 billion in Fiscal 2007. Based on their grant request, a total of $546.2 million was for the long-distance trains ($438.2 million operating; $108 million capital). That is only 34% of what Amtrak requested, and 42% of what it got.

In his State of the Union address, President Bush called for a reduction in oil consumption.  Oak Ridge National Laboratory figures show that Amtrak, on a per-passenger-mile basis, is more fuel efficient than airlines and automobiles (18% and 17%, respectively).

Capon noted, “In a world that must emphasize environmentally benign and energy efficient transportation, cutting Amtrak funding makes no sense either as a stand-alone proposal or in context of this Administration’s proposal to continue increasing highway spending.

“Once again, passenger rail advocates look to Capitol Hill to dramatically improve on the White House’s transportation proposal and views.

“The real message of today’s budget request is that after six years of being on the Amtrak Board and selecting board members, becoming more intimately familiar with Amtrak’s needs, and observing the good work that has been accomplished, they still don’t get it.”

About NARP

NARP is the only national organization speaking for the users of passenger trains and rail transit. We have worked since 1967 to expand the quality and quantity of passenger rail in the U.S. Our mission is to work towards a modern, customer-focused national passenger train network that provides a travel choice Americans want. Our work is supported by over 22,000 individual members.