WASHINGTON -- Amtrak presented a funding request to Congress that
calls for $1.8 billion to cover its federal operating and capital
investment expenses during the 2004 fiscal year.
The request is higher than the $900 million proposed for the
struggling rail line by Bush Administration in its 2004 budget.
But Amtrak contends the Bush budget is not enough.
According to Amtrak, "In the seven years from 1997 to 2003,
combined federal capital and operating support for Amtrak averaged
$1.1 billion. However, this level of funding was insufficient to
support Amtrak's true capital and operating needs."
Amtrak's previous leadership had to mortgage assets and borrow
to maintain the system. In doing so, Amtrak said, the rail line
increased its debt "by more than $2.5 billion and slowed or halted
important capital projects and deferred maintenance during this
period to keep trains running and avoid insolvency."
"Amtrak's past practice of borrowing money and deferring capital
investment to make payroll cannot be sustained," said Amtrak
president David Gunn in a statement. "We must address the
deteriorated assets and, over the next several years, return our
equipment and infrastructure to a state of good repair if operation
is to continue."
Meanwhile, the Bush administration and Congress are pressing
Amtrak to undertake certain reforms to improve its
profitability.
For instance, in granting the rail line $1.05 billion for 2003,
Congress, taking cues from the administration, attached several
conditions to the funding, including a requirement that Amtrak
provide detailed analysis and revenue projections at certain
intervals as a condition to continued funding.
Amtrak has agreed to certain reforms, but indicates
profitability is an unrealistic goal.
"No passenger rail service in the world is profitable on an
operating and capital basis, and Amtrak is not the exception," said
Gunn. "What we can do, however, is reestablish stability and run
the system more efficiently. But federal leadership is necessary to
address the future of passenger rail service in this country."
Amtrak intends to release a five-year, capital plan for righting
the rail line this spring.
Among other things, the plan is expected to spell out Amtrak's
view that it will require federal funding of approximately $2
billion annually through 2008 to operate the system nationwide.