To NARP Members in Michigan, March 31, 2004--At the behest of bus company Indian Trails, Inc., State Sen. Shirley Johnson (R-Royal Oak), who chairs the appropriations committee, is today introducing a provision which would prohibit Amtrak from ever charging a fare below what is charged by any private entity participating in the state's bus loan program.
While many fares Amtrak charges are more expensive than bus fares, this provision would limit Amtrak's ability to set fares, particularly in regards to special discounts (such as those for seniors, children and NARP members). Amtrak believes the provision would reduce its ridership and revenues and thus increase what the State of Michigan must pay Amtrak for the train. This amendment also could give legislators elsewhere bad ideas about micromanaging Amtrak.
"Any state subsidy for rail passenger service between Port Huron and Chicago shall not be used to artifically reduce passenger fares by a private entity participating in the Intercity Bus Loan Program." Indian Trails does not serve Durand, Lapeer or Port Huron. It does serve Battle Creek and Kalamazoo, so this amendment also raises the possibility that Amtrak might have to charge different fares on the "Blue Water" and on the Detroit trains in markets common to both routes.
Please contact your state legislator immediately and urge them to work against any such provision. We understand that, if this provision gets anywhere, Senator Mark Schauer (D-Battle Creek) will introduce language to strike it. To learn who your state senator is, and for contact information, go to http://www.michigan.gov/ .
--Ross B. Capon,
NARP Executive Director
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