By Ron Thaniel
March 1, 2004

Amtrak President and CEO David L. Gunn sent to Congress February 10 the intercity railroad's FY05 federal budget request of $1.798 billion.

Continuing Amtrak's wide-ranging effort to return the railroad to a state-of-good-repair, the request would fund $791 million in capital projects, provide $570 million for operations and repay a $100 million federal loan obtained in 2002.

"As we enter the second year of our five-year strategic plan, this request should come as no surprise to anyone. When we announced our plan last February, we said we-d need about $1.7 billion in FY '05, and that is what we have proposed," said Gunn.

The $1.8 billion request amounts to a about $300 million increase over the current year's federal funding and relief, comprised of an appropriation of $1.2 billion, carry-over of more than $150 million from FY '03 and deferral of the $100 million loan repayment.

"The nearly $1.4 billion in real dollars and $100 million in loan repayment relief will be adequate for this year, but we will need a full appropriation in FY '05 if we are to continue stabilizing the railroad according to our strategic plan and eventually return our plant and equipment to a state-of-good-repair," said Gunn.

It will not be easy for Amtrak to get $1.8 billion in FY05. The Administration recommended half of Amtrak's need at $900 million, a 26 percent cut from last year's appropriation. During the briefing on the FY05 recommended budget, U.S. Department of Transportation Secretary Norman Mineta admitted this amount was not enough to run the railroad.

Compounding the difficulty Amtrak faces in the annual appropriations battle, the Chairman of the House Transportation Appropriations Subcommittee, Representative Ernest J. Istook of Oklahoma, sent a "Dear Colleague" letter last week threatening to reduce any Member of Congress' highway or airport project requests if that member supports Amtrak's funding request.

For the first time since 1995, Amtrak in FY'03 did not have to borrow cash to make payroll. Amtrak also set a record for ridership in FY '03, carrying 24 million passengers.