Mobilizing the Region
Issue 39June 16, 1995



Amtrak Update


Three months after cutting operating trains by 16%, Amtrak's ridership and passenger revenue fell off only 5%. Near-maintenance of its passenger levels has railroad leadership hopeful: many experts had feared that the route reductions could lead to much heavier losses, perhaps beginning a death spiral of revenue and service decline. Amtrak began downsizing in February, and by April had cut 33% of its long-distance service. In the Northeast corridor, which received slight cuts, ridership grew 1% for the Feb-April period.

On May 25, the House Transportation and Infrastructure Subcommittee on Rail passed a bill authorizing funding at levels recommended by the House Budget Committee earlier this month. Amtrak funding would continue at current levels for three years but be phased out entirely over the seven years. The bill would give Amtrak more flexibility in making route changes and relax rules for contracting-out maintenance work. Republican lawmakers from the Tri-State area who backed the measure, like Susan Molinari and Robert Franks, argued that it was a pro-Amtrak compromise in the face of calls from many House members desiring to zero-out federal funding for Amtrak immediately.

Rail passenger advocates are arguing for the "Ampenny" proposal, which they say could end the railroad's reliance on Congress while maintaining needed federal support. Federal fuel taxes for deficit reduction are scheduled to be halved at the end of this fiscal year. Rail advocates are calling for retention of one cent of the reduction to establish an Amtrak trust fund, which they say would be adequate to support the railroad's operating and capital budgets, as well as future high speed rail projects. So far, the proposal does not appear to have progressed beyond the rail advocacy community. Wall St. Journal, Star Ledger, Delaware Valley Rail Passenger



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