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Amtrak Op-ed
March 25, 2005
Congress Must Stay on Track with Amtrak Funding
By Senator Rick Santorum (R-PA)
As our nation’s premier passenger rail service, Amtrak plays a crucial role in our transportation infrastructure. Keeping the rail lines open and the trains running should be one of Congress’ priorities in the upcoming budget discussion. At a time when Amtrak is setting ridership records and as congestion at our airports and on the highways continues to increase, it would be a grave mistake to cut the federal funds that keep Amtrak operating.
President George W. Bush recently proposed cutting Amtrak funding and would provide $360 million to maintain existing commuter services along the Northeast Corridor. Without substantial government funds or other intervening action, Amtrak would quickly enter bankruptcy and shut down all of its services, leaving millions of riders and thousands of communities without access to the essential and convenient transportation that Amtrak provides. In addition, it is critical to Pennsylvania’s workers, businesses, visitors, and most specifically to the more than 3,000 Amtrak employees that we do not decrease funding for Amtrak.
Commuters rely heavily on Amtrak’s services. Eight commuter railroads operate over Amtrak-owned or operated tracks on the Northeast Corridor. Amtrak’s commuter ridership has been growing steadily over the past 10 years. Today there are 1,700 daily commuter trains over the Northeast Corridor with an average daily ridership of 750,000.
The Northeast Corridor portion of Amtrak’s business that runs through Pennsylvania has emerged as one of the corporation’s most successful routes. Amtrak operates nearly 120 daily trains through Pennsylvania, and its hub in Philadelphia is the corporation’s third largest and busiest station in the country, serving over 3.5 million riders each year. Other segments of Amtrak’s business model, excluding the Northeast Corridor, have caused the corporation to continue to fiscally lag.
Many of Amtrak’s fiscal problems stem from under-used, subsidized tracks in the Midwest. The Northeast Corridor represents 45.2 percent of Amtrak’s ridership, but only costs Amtrak 31.3 percent of their total expenses. The Northeast Corridor, which accounts for 45.8 percent of Amtrak’s revenues, should not lose out because other regions are not as profitable. Instead, as Amtrak receives federal assistance, they must also take steps to become more efficient and profitable.
Over the last several years, Amtrak has begun to implement reform by reducing its operating costs to help fund needed capital improvements. In fact, Amtrak’s core operating expenses are now less than they were in 2000. Over the last 30 months, Amtrak CEO and President David Gunn has cut operating costs, reduced the employee headcount from slightly less than 25,000 to just under 20,000 employees, has increased the number of trains they operate by 20 percent and implemented internal reforms designed to control costs and improve efficiencies.
In mid-2003, Amtrak began the process of rebuilding its aged infrastructure and equipment, allowing its trains to run faster and more reliably. Not only will operational costs be lowered, riders will experience better service. To literally stop Amtrak in their tracks at this time—in the process of revitalization—would be costly and counterproductive.
Recently, Senator Robert Byrd (D-WV) introduced an amendment to the Fiscal Year 2006 Budget Resolution that would have raised taxes by $1.04 billion to increase Amtrak spending by the same amount. Senator Byrd’s amendment ultimately failed on a vote of 46-52. Many people mischaracterized my vote against the Byrd amendment as a vote against Amtrak. However, Senator Byrd’s amendment would have added money to the budget without ensuring that any of that money would go specifically to Amtrak. Appropriators, not the budget resolution, determine what programs receive funding during the annual appropriations process. As I do every year I will work to support funding for Amtrak in the appropriations process, as it is a critical transportation component in Pennsylvania.
It is my hope that a combination of federal assistance for rebuilding efforts in the near-term and the continuation of Amtrak’s capital improvements will result in business growth and independence for Amtrak. We must continue to provide federal assistance to Amtrak as it continues to strive for self-sufficiency, while holding Amtrak accountable for their reform efforts.
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