Tuesday, June 25, 2002
Mineta: Amtrak shutdown avoidable
Federal help, cut in expenses part of solution
By Laurence Arnold
The Associated Press
WASHINGTON Transportation Secretary Norman Mineta expressed confidence Monday that the nation's passenger rail system will not be shut down this week, but he offered no immediate solution to Amtrak's financial problems.
Breaking from an emergency meeting of Amtrak's board of directors, Mr. Mineta said a solution will require both a cut in Amtrak's expenses and federal financial help.
I am confident that we will be able to avoid a shutdown of services, Mr. Mineta said. We have much more work to do but we will continue to work on an effective solution.
Mr. Mineta said the administration and Amtrak will work with Congress to make sure passenger rail service continues. He said the administration should not bear the responsibility alone for Amtrak's problems.
This must be a team effort, he said. The burden is not on the administration to save the rail system from bankruptcy, nor should it be.
During President Bush's visit to New Jersey, he stressed the importance of reform at Amtrak, said White House spokeswoman Claire Buchan. The president wants an Amtrak driven by sound economics, she said.
Members of Amtrak's governing board gathered in Washington for a Monday afternoon meeting with Mr. Mineta, who last week outlined several changes for therailroad.
Amtrak's new president, David Gunn, says he is open to change but first must find $200 million to close a budget shortfall.
The Federal Railroad Administration, a part of the Transportation Department, is reviewing Amtrak's request for a loan guarantee for the needed $200 million. Amtrak has had trouble tapping its existing line of credit because lenders are unsure how long it can remain in business.
If the railroad administration were to rule that Amtrak does not qualify for a loan guarantee, the only options would be a congressional appropriation or an order by lawmakers that the agency grant one.
But time is running out: Without a loan guarantee from the Federal Railroad Administration, a part of the Transportation Department, Mr. Gunn has said he would have to begin turning away passengers and directing trains to storage yards by the middle of this week.
A shutdown of Amtrak also could affect commuter railroads serving hundreds of thousands of people, mostly along the Atlantic Seaboard.
Three Tristate businesses in top 100
Diagnosis: Take it to dealer
No. 2 airline asks for federal help
Mineta: Amtrak shutdown avoidable
Dynegy announces plan to shore up finances
Enron workers to receive extra $29 million in severance
Global Crossing confirms 'isolated' shredding of documents
Jury awards research hospital $200 million in punitive damages
Microsoft discloses ambitious new security effort
Business Digest
Morning Memo
Tristate Summary
What's the Buzz?