posted
Trainsmag.com just reported that the Senate Appropiations subcommittee on surface transportation will hold a hearing Thursday morning on Amtrak's financial crisis and what can be done to avert a shutdown of the railroad in July.
Amtrak President and CEO David Gunn, who has said that Amtrak would have to shut down unless it can obtain a $205 million loan that will tide the railroad over until the beginning of the fiscal year in October, is scheduled to testify at the hearing.
Federal Railroad Administrator Allan Rutter and Donna McLean, the Transportation Department's chief financial officer, are slated to appear before the panel chaired by Washington Democrat Sen. Patty Murray.
Department of Transportatioon Inspector General Kenneth Mead-who warned in January that Amtrak would not make it to the end of the fiscal year without massive borrowing or additional federal subsidies-also is scheduled to testify.
The hearing was added to the Senate schedule on Friday. The Washington post reported that Congress and the Bush administration are beginning to realize that Gunn's shutdown warning reflects the railroad's fiscal reality and is not a threat intended to pry more money from Uncle Sam.
posted
I assume the point of the hearing this week is to get Congress to appropriate additional supplemental funds from this fiscal year to hold AMTRAK over until Oct. 1, so that AMTRAK won't have to approach the private sector for the big loan?
Has anyone heard anything more on the status of AMTRAK getting their $200 million loan? Who are they approaching? Banks? Private sources?
Posts: 2428 | From: Grayling, MI | Registered: Mar 2002
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posted
From the press reports and David Gunn's statements, it seems Amtrak is looking for a short-term loan or line of credit from the private sector. I'm sure Mr. Gunn would be delighted to have Congress hand him $205 million right now.
It was certainly clever of George Warrington to run Amtrak into the ground and then jump ship so somebody else would have to clean up the mess.
Posts: 614 | From: Merchantville, NJ. USA | Registered: Aug 2000
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posted
Had Warrington been blunt about Amtrak's finances, do you think Congress would have moved to close it down earlier? Maybe Warrington's comments about the glidepath bought a little time, although the damage to Amtrak's credibility (whatever that is) will likely take a while to repair.
Posts: 874 | From: South Bay (LA County), Calif, USA | Registered: Aug 2000
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posted
Amtrak would like to get the money from the private sector, but if it can't the the government will have to step in or Gunn will shut things down.
quote:Originally posted by rresor: From the press reports and David Gunn's statements, it seems Amtrak is looking for a short-term loan or line of credit from the private sector. I'm sure Mr. Gunn would be delighted to have Congress hand him $205 million right now.
Posts: 9 | From: Arlington, VA 22204 | Registered: Feb 2002
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