By Ron Thaniel
August 30, 2004

Led by Conference Transportation and Communications Vice Chair and Amtrak Mayors Advisory Board Chair Meridian (MS) Mayor John Robert Smith, former Chairman of the Amtrak Board, The U.S. Conference of Mayors successfully urged a majority in the U.S. Senate to sign a "Dear Colleague" letter supporting $1.798 billion for Amtrak for FY05.

The letter to Senate Appropriations Committee Chairman Ted Stevens (AK) and Ranking Member Robert C. Byrd (WV) and Appropriations Subcommittee Chairman Richard C. Shelby (AL) and Ranking Member Patty Murray (WA) states, "Under the President's FY05 Budget request, the Administration requested only $900 million in funding for Amtrak. The level of funding would guarantee an end to the system-wide capital improvements now being undertaken by Amtrak and result in a shutdown of Amtrak's operations."

The $900 million is a 25 percent cut (more than $300 million) from the current baseline funding. In FY04, Congress appropriated $1.218 billion for Amtrak. Additionally, the FY04 appropriations bill allowed Amtrak to defer repayment of the$100 million loan it owes to the U.S. Department of Transportation, thereby reducing Amtrak's expenses.

The House Budget Resolution provided $1.2 billion for Amtrak for FY05. However, the House Appropriations Committee approved only $900 million for Amtrak for FY05.

The Inspector General at the U.S. Department of Transportation stated in Congressional testimony that funding Amtrak at $1.34 (Amtrak's FY04 actual funding level when loan deferral is included) "Merely postpones the day of reckoning and that day is surely coming. Amtrak cannot continue to operate the current system without eventually and soon addressing the backlog of investment needed to bring the system to a state of good repair."

In June, understanding the economic value of a national passenger railroad, The U.S. Conference of Mayors adopted a resolution during our 72nd Annual Meeting supporting at least $1.8 billion for Amtrak.