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California likely to weather Amtrak storm
WASHINGTON -- California's Amtrak service remains relatively secure even as the national rail service suffers economic decay and faces the threat of dissolution, according to the Ventura County Star.

The distinction may become more pronounced in coming weeks, as Congress considers a proposal to split Amtrak apart. Thanks to state aid, California routes do not rely on federal subsidies as heavily as other regions and are more prepared to weather a financial storm.

"There's a lot of success and a lot of growth and strong partnership with the state," said Elizabeth O'Donoghue, Amtrak's Western spokeswoman. "We see Amtrak continuing to thrive in California."

California's rail security contrasts with Amtrak as a whole. Nationwide, Amtrak will not reach operational self-sufficiency by its December 2002 deadline. It will need large amounts of money to keep operating, according to a recent report by Transportation Department Inspector General Kenneth Mead.

Amtrak President George Warrington declared an urgent need Friday for $1.2 billion and announced layoffs and other budget-cutting plans that could include shutting down routes.

"Everyone knows you cannot make a profit while running a network of unprofitable trains," Warrington told a news conference. "That is exactly what we are expected to do."

This need for continued federal support, in turn, poses tough policy questions for lawmakers with potentially competing commuter-rail priorities. California Republican Richard Pombo, for one, supported a recently passed measure giving Altamont Commuter Express $3 million for improvements.

Amtrak's $1.1 billion operating loss in 2001 is the largest in its history. Although ridership has increased, expenses have outpaced revenues.

"It is not clear whether Amtrak or any other entity could ever operate a linked national system...without operating subsidies," Mead said, noting that even if achieved, Amtrak would still depend on federal funds for capital improvement.

It wasn't supposed to be this way. In a 1997 attempt to wean Amtrak off subsidies, Congress provided $5.2 billion to the near-bankrupt railroad, giving it a five-year deadline to achieve operational self-sufficiency.

The Amtrak Reform Council, an 11-member bipartisan monitoring commission formed under the 1997 law, will present a proposal to Congress on Feb. 7 that Amtrak be restructured into three government entities.

If Congress agrees, Amtrak's property holdings, including tracks, stations, and tunnels, could be managed separately from an operating company. Certain routes would be contracted to states or private corporations with the lowest bid that would receive far smaller federal subsidies than currently provided to Amtrak.

February 8, 2002
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