Carrot and Stick
Senators Trent Lott and Frank Lautenberg introduced a bill in the Senate yesterday to provide a 5 year funding package for Amtrak that sounds like a pretty good package. A good amount of relatively stable funding over 5 years, combined with (hopefully) enforced/enforceable goals to make the corporation get off its rear end and run more efficiently and with some spirit. Some details:
-- $3.2 billion annually, including $1.9 billion in annual appropriations and $1.3 billion in bond authority, with an average of $300 million in capital grants to be allocated to states annually. The bill also would provide funds to improve Amtrak's security, bring the Northeast Corridor to a state of good repair and authorize the Surface Transportation Board to fine freight railroads that delay Amtrak trains.
-- require Amtrak to reduce operating costs by 40 percent over the life of the bill, implement a new accounting system, establish quality standards that would be evaluated regularly by the Federal Railroad Administration and restructure its board to include nine bipartisan members.
Post Author:
csa | 12:35 AM |
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Until Amtrak dumps its unprofitable lines and focuses just on the Northeast Corridor (and other commercially viable, vs politically required, lines) it will be a financial basket case no mater how many carrots or sticks are involved.
