The annual battle for Amtrak's survival took an interesting twist as Amtrak is requesting $450 million in federal operating support for fiscal year 2013, a lower amount than the $466 million appropriated by Congress for FY 2012.
According to the press release, the ability to seek reduced federal operating funding results from successful and ongoing efforts by Amtrak to improve its financial performance, including increased efficiency, cost controls, and debt reduction as well as better service, record ridership and anticipated increases in revenue.
Since the beginning in 1971, Amtrak has been dependent on operating support from the Federal Budget to stay in operation. Amtrak took over passenger services from the freight railroads who had been losing money on passenger operations for years.
"Amtrak's request for less federal operating support is a strong statement on just how much this railroad has improved its management and financial health. The fact is, Amtrak now covers 85 percent of its operating costs with non-federal dollars and we will further improve on that number without cutting service," said President and CEO Joe Boardman.
Amtrak submitted this request to Congress today as part of its FY 2013 Grant and Legislative Request for federal funding to support the operating and capital investment needs of America's Railroad(r). It also contains a detailed discussion of legislative issues, including Amtrak's top five priorities for a new surface transportation bill.
He also emphasized it is imperative that Congress integrate Amtrak and other federal rail programs into a comprehensive and truly multi-modal surface transportation bill. As the nation's intercity passenger rail provider and only high-speed rail operator, Amtrak believes the rail section should include these top five priorities: provide dedicated, multi-year funding for intercity and high-speed passenger rail; establish a national investment strategy; create a clear and leading role for Amtrak; ensure coordinated corridor planning and project execution; and address liability and insurance issues.
Amtrak plays an important role in the nation's transportation network, offering people a safe, efficient, and reliable alternative in an economy marked by high gas prices and pervasive highway congestion. The demand for Amtrak service across the country - eight ridership records in the last nine years - is indicative of a sustainable trend.
"Congress has given Amtrak a critical national mission to provide intercity passenger rail service, and with an appropriate level of federal funding support, we can secure a stronger future for our country and reduce the nation's dependence on foreign oil," said Boardman.
Source: Amtrak
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