Tags: amtrak | state | funding | routes

Amtrak Relying on States to Fund Local Routes

Image: Amtrak Relying on States to Fund Local Routes The Amtrak Vermonter heads south in Middlesex, Vt.

Friday, 03 May 2013 12:35 PM

By Lisa Barron

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Facing pressure to reduce its dependence on federal subsidies, Amtrak is trying to decide whether to close several short-haul routes or get 19 states in which passenger service rail lines are located to cover the costs.

Amtrak is looking at stopping service on 28 routes, although most of the 19 states have so far agreed to help cover the cost of continuing services on local routes less than 750 miles long, reports The New York Times.

If all 19 states end up helping to finance the continuation of Amtrak service, the public rail line estimates that it could bring in an extra $85 million a year, which would help reduce its longstanding deficit, according to the Times.

Editor's Note: 5 Signs Stock Market Will Collapse in 2013

Joseph Boardman, Amtrak’s president, told the newspaper that last year’s federal operating subsidy of $466 million was down from a high of $755 million in 2004, due to cost sharing with some states as well as a record number of passengers and revenues.

"It’s what Congress has been doing for years, that is to push costs down to the state and local level,” he said, adding, "It’s not going to be a windfall for Amtrak, but it will help reduce our costs."

Pennsylvania and Virginia are two states that have already agreed to foot the bill for local Amtrak service, citing the need to ease road congestion and spur economic development.

Transportation expert Robert Puentes, a senior fellow at the Brookings Institution who co-authored its own Amtrak study, told the Times that he expects all of the states to eventually agree to the cost-sharing arrangement.

"The larger implication is that it will have a positive impact on Amtrak’s budget and improve passenger rail service," he said.



© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Ferguson Shooting Spurs Sharpton Get-Out-The Vote Effort

Friday, 31 Oct 2014 22:03 PM

With Tuesday's midterm elections approaching, the memory of Michael Brown – the Ferguson, Mo. man shot to death by polic . . .

Kansas Urges Judge Not to Rule on Gay Marriage

Friday, 31 Oct 2014 20:23 PM

The Kansas attorney general's office told a federal judge Friday that he should not consider blocking the state from enf . . .

Virgin Crash Sets Back Space Tourism by Years

Friday, 31 Oct 2014 18:55 PM

The deadly crash of Virgin Galactic's spacecraft has dealt a devastating setback to the cause of space tourism, delaying . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved