Amtrak: Deteriorated Financial and Operating Conditions Threaten
Long-Term Viability (Testimony, 03/02/95, GAO/T-RCED-95-123).

GAO discussed its recent report on Amtrak's financial and operating
conditions and its funding request for fiscal year (FY) 1996. GAO noted
that: (1) Amtrak's deteriorating financial and operating condition
jeopardize its ability to provide quality services; (2) federal
subsidies have not covered the gap between Amtrak's revenues and
expenses; (3) Amtrak efforts to reduce its losses have diminished
service quality and reliability, which in turn have decreased ridership
and revenues; (4) Amtrak plans to further cut service and staffing,
retire its oldest cars, and improve productivity and services, but its
success depends on increased government financial support and
legislative changes; (5) Amtrak faces intense fare competition from
airlines and other transportation sectors; (6) Amtrak's fastest growing
source of revenues is commuter rail contracts which produce more
passengers than its intercity service; (7) Amtrak needs over $4 billion
to repair its equipment, facilities, and track, but increasing funding
shortfalls and expenses will severely hamper Amtrak's repair efforts;
(8) if Amtrak is privatized, only a few potentially profitable,
well-travelled routes would remain; (9) if funding remains the same,
Amtrak will have to further reduce its services; and (10) Amtrak is
requesting $260 million in operating assistance and $600 million in
capital assistance for FY 1996, although it is not known how much of
Amtrak's total capital grant request would be spent on the Northeast
Corridor and how much would be spent elsewhere in the Amtrak system.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-RCED-95-123
     TITLE:  Amtrak: Deteriorated Financial and Operating Conditions 
             Threaten Long-Term Viability
      DATE:  03/02/95
   SUBJECT:  Railroad transportation operations
             Differential subsidies
             Losses
             Equipment maintenance
             Cost sharing (finance)
             Federal aid to railroads
             Repair costs
             Railroad industry
             Financial management
             Future budget projections
IDENTIFIER:  Amtrak Northeast Corridor
             Amtrak Strategic and Business Plan
             Railroad Retirement Trust Fund
             Boston (MA)
             New York (NY)
             District of Columbia
             
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