Congressional Study on Amtrak Urged

WASHINGTON -- Two government monitors said Wednesday that Amtrak probably will not meet a deadline for freeing itself from federal subsidies despite efforts to attract more business, a wire service reports.

They urged Congress to begin considering whether Americans want intercity passenger rail -- and if so, at what cost.

"Amtrak's financial results have not yet turned the corner," Kenneth Mead, the Transportation Department's inspector general, told the House Appropriations subcommittee on transportation.

While Amtrak has time, Mead said, "I think they're in serious jeopardy."

The 1997 Amtrak Reform and Accountability Act gave the national railway until 2003 to end its 30-year reliance on federal operating subsidies. Amtrak has used nearly $24 billion in subsidies since its creation in 1971.

Under that law, Amtrak would have to submit a plan for its own liquidation if it fails to meet the deadline. More likely, a failure would reopen the debate in Congress about whether the United States should support a railroad that loses money but provides alternatives to crowded highways and airports.

Phyllis Scheinberg, who monitors Amtrak for the General Accounting Office, urged Congress not to wait until 2003 to open that debate.

"We believe the time is right for the Congress to begin considering the future of intercity passenger rail, and to bring all the affected parties into the discussion," Scheinberg said.

Scheinberg said she doubts Amtrak will wean itself from federal support by 2003. She said Amtrak had hoped to reduce its budget gap by $114 million last year but achieved only a $5 million reduction.

Amtrak's president, George Warrington, told the subcommittee he still believes Amtrak will reach operating self-sufficiency by the congressional deadline.

"All I can tell you is we are fixated on making it happen," he said.

But Warrington warned that even if it succeeds, Amtrak still will need a major, long-term commitment of federal dollars for capital expenses such as upgrading tracks, improving highway crossings and buying trains.

Last month, Amtrak requested $30 billion over 20 years to close what it calls America's "rail investment gap." Members of Congress have proposed helping Amtrak raise $12 billion over 10 years to develop high-speed corridors around the nation.

Amtrak's critics say such investments would be premature until the railway proves it can operate profitably.

The hearing took place four days after an Amtrak train from Chicago to Emeryville, Calif., derailed in Iowa, killing one passenger and injuring 96.

Warrington told the subcommittee that preliminary evidence suggests the cause was "some sort of manufacturing or internal defect" in a section of replacement rail installed by the owner of the track, Burlington Northern Santa Fe Railroad.

Mead said Amtrak's safety record was "better than the combined average of all other railroads in the United States."

On Tuesday, the federally appointed Amtrak Reform Council proposed dividing Amtrak into a profit-focused company responsible for train operations, a separate government-owned corporation to oversee tracks and stations and a consolidated government oversight agency.

Amtrak officials oppose the idea.