Amtrak president derides funding proposal
By Leslie Miller, Associated Press Writer, 2/10/2004
WASHINGTON -- Amtrak President David Gunn said Tuesday that President Bush's proposal to give the railroad just over half what it sought in federal subsidies would shut it down just as more passengers than ever are taking the train.
For Fiscal 2005 starting in October, Amtrak formally asked for $1.798 billion, or about $300 million more than it received for 2004. That includes a $570 million operating subsidy, repayment of a $100 million government loan and $791 million for replacing rails and ties, repairing bridges and overhauling major equipment.
Bush proposed giving the railroad $900 million in the new budget year.
"The president's number is a shutdown number," Gunn said during a meeting with reporters.
Gunn, who took over at Amtrak 20 months ago, said he expects more than 25 million people will ride Amtrak during the current budget year, which began last Oct. 1, breaking the previous record of 24 million.
Tight financial controls in 2003 left the railroad with $148 million in the bank. The work force was cut to 19,976 at the end of December from 23,393 in May 2002. Signal cables were replaced, bridges were retimbered and wrecked cars rebuilt.
Gunn said he does support the Bush administration's proposal to require the states to help pick up the tab for new rail corridors between cities. A plan to connect Portland, Ore., to Seattle is ready to go and awaiting a commitment of funds from the federal government, he said.
Though Congress gave Amtrak $600 million less than the $1.8 billion Gunn said it needed in 2003, the railroad's shortfall is only about $280 million, he said. That's because the railroad wasn't required to repay a $100 million loan it received to ward off a shutdown in the summer of 2002, and because it carried over $148 million from last year and revised the amount of interest it must pay on its debt.
