WASHINGTON -- Leading figures in deciding the future of passenger
rail service agreed Wednesday that Amtrak, after three decades of
losing money, cannot keep running without major changes, reports a
wire service.
They offered competing ideas about what should
be done, and at what cost.
At a hearing of the House
Appropriations subcommittee on transportation, Amtrak President
George Warrington presented his request for $1.2 billion in the
fiscal year beginning in October -- double the $521 million proposed
by the Bush administration.
Warrington repeated his threat to
eliminate 18 long-distance trains this fall if Amtrak does not
receive its full request.
“Despite our best efforts and
tangible signs of progress, the national passenger rail system has
reached a critical crossroads,” he said.
Transportation
Department Inspector General Kenneth Mead agreed that Amtrak cannot
maintain current operations with a federal appropriation of $521
million. He said Amtrak's request is reasonable, but he did not
endorse it.
Mead said Congress must first resolve the larger
issue of how to maintain the nation's rail network.
Amtrak
says it has a $5.8 billion backlog in work for its trains, tracks,
rail yards and stations.
“The magnitude of need makes it
clear that neither the administration's request, nor Amtrak's
request, would allow Amtrak to begin to meaningfully address these
needs in 2003,” Mead said.
Mead reported in January that
Amtrak lost $1.1 billion in 2001, the most in its 30-year history,
and had made no progress toward meeting Congress' 1997 order that it
wean itself from annual operating subsidies from the
government.
To cut costs, Amtrak is eliminating 1,000 of the
company's 24,600 jobs and making other cuts in training, advertising
and equipment maintenance.
Congress is due to vote this year
on whether to authorize Amtrak's continued existence as the nation's
sole provider of intercity train service.
The Amtrak Reform
Council, created by Congress in 1997, released a plan this month
calling for breaking up Amtrak and franchising out its routes to
introduce competition into passenger rail.
The council's
chairman, Gilbert Carmichael, told the subcommittee that the key
issue with Amtrak is its structure, not any shortage of federal
support.
“Effective restructuring will beget funding,” he
said. “Additional funding will not bring about reform.”
But
Mead sided with Amtrak on the issue, noting that any new passenger
train operators would face the same problems caused by lack of
capital spending.
“Don't be fooled into thinking that
(restructuring) is going to solve the problem,” he
said.
Warrington acknowledged Amtrak chose not to cut
unprofitable long-distance routes even after Congress gave it the
authority to do so in 1997. He said those routes are crucial if
Amtrak is to retain support from lawmakers.
“We are a
creature of the political process,” he said. “Congress has made very
clear there is an expectation we will run a national
system.”
The administration has characterized its proposed
spending for Amtrak as a “place-setter,” pending decisions about the
railway's future.
The subcommittee chairman, Rep. Harold
Rogers, said he hopes the administration takes a more active role.
``It seems no one wants to tackle this subject,'' said Rogers,
R-Ky.
Allan Rutter, administrator of the Federal Railroad
Administration, said the administration is “neck deep” in evaluating
Amtrak and passenger rail.