But the Ethan Allen Express and the Vermonter continue to be well worth the expenditure of state funds, according to a state transportation official and local business leaders.

Charlie Miller, head of the state Agency of Transportation's Rail Division, said the state arrived at the new subsidy after negotiations with Amtrak officials.

For years, Amtrak has claimed that it has been underfunded by a Congress that has expressed increasing reluctance to appropriate more taxpayer money to subsidize a national rail passenger service that continues to lose money. The Bush administration has made its position clear by proposing to slash Amtrak's budget even further - a move that Amtrak officials and passenger rail advocates say threatens its very existence.

It's not surprising then, according to Miller, that Amtrak was looking for a bigger subsidy from the state. In the end, he said both sides agreed on the $200,000 increase.

"Amtrak always wants more. What's important is where we ended up," he said.

Once signed, the contract will run from July 1 through the end of next June.

The Ethan Allen Express serves the western part of the state with one daily roundtrip between Rutland and New York City. The Vermonter serves the eastern side of the state with daily roundtrip service between St. Albans and Washington, D.C., making nine stops in Vermont, including Burlington, Montpelier, White River Junction and Brattleboro.

Ridership on both trains has declined fromt two years ago.

In fiscal 2002, 68,713 passengers took the Vermonter compared to 61,948 in fiscal 2003. That number declined again at the end of the fiscal year in June to 60,324.

The Ethan Allen Express had 39,613 passengers during fiscal year 2002 compared to 35,786 in fiscal 2003.

Unlike the Vermonter, business, on the Ethan Allen rebounded last year. When the books were closed on the fiscal year that ended in June, 38,252 pasengers had ridden the train during the previous 12 months.

Miller said no major changes are planned for either train. There will, however, be slight schedule changes beginning in October.

At the request of Rutland officials, the Ethan Allen will have a later Monday departure from New York's Penn Station. The Vermonter, too, will leave Union Station in Washington later.

The Ethan Allen departs Rutland at 7:10 a.m. and arrives at Penn Station at 12:25 p.m. The return trip departs at 2:45 p.m. and arrives back in Rutland at 8:10 p.m.

As far as fares go, Miller said no significant increases are planned for either train.

"Amtrak sets the fares but ... it's my understanding there's no large fare increase during this period," he said.

The roundtrip weekday adult fare from Rutland to New York is $112. The weekend fare is $10 more.

Budget cuts at Amtrak have been felt in Vermont. There are no longer ticket agents at any stations in the state. Amtrak pays for a custodian to open and close the station in downtown Rutland an hour before and after each arrival and departure. And because there are no ticket agents, the Ethan Allen and the Vermonter no longer have a baggage car, which would require an Amtrak station employee to be on hand.

As an alternative, the state is considering installing automated ticket machines at stations in Vermont.

"We talked about ticket machines and they're still in the process of bidding that work out," Miller said. He added that the state would have to pay for the machines, which cost about $40,000 each.

The initial plan called for installing the machines in Rutland, White River Junction, Essex Junction and Brattleboro. But he said a final determination on how many machines are installed will depend on the final bid price.

Despite the challenges and expense of keeping Amtrak service, Miller said passenger rail service remains an important component of the state's overall transportation mix.

"When you take into consideration that so many of the large population centers are within 300 miles of Vermont, we're able to draw tourists and other travelers to our area then that becomes an economic benefit we wouldn't have," he said.

Thomas Donahue of the Rutland region Chamber of Commerce couldn't agree more.

"With the lack of an interstate highway on this side of the state, it's important to bring people in here by air passenger service and rail service," he said. "The combination of modes of transportation makes it an accessible community."

If there is one thing lacking, Donahue said, it's better marketing of Amtrak service and tourism in general.

"I can't point the finger directly at the state," he said. "I think all of us need to do a better job of marketing the Ethan Allen."

"Vermont does not provide a lot of dollars to tourism and marketing and it still baffles me because of the significant return on investment."

Paul Shannon of the New England Transportation Institute and Museum in White River Junction, said the Vermonter continues to attract a steady stream of passengers. An average of 25 passengers a day depart on the 9:10 a.m. train to New York and Washington, he said, with an equal number of passengers getting off the northbound train at 6 p.m.

"Besides the college students, there's a lot of the older folks that like to ride the train," said Shanon, the institute's treasurer. "It's a whole mixed bag."

He said passenger rail transportation won't garner the political support it needs until the price of gasoline climbs to the point where the public demands action.

"The state of Vermont deserves an awful lot credit for its insight into supporting Amtrak," he said.

Asked why the United States has failed to embrace rail passenger service the way Europe and other countries have, Miller speculated that it may well come down to cultural and economic differences and population density.

"Most people don't have access to an automobile (in Europe) and have a transit system that takes you where you want to go."