Amtrak: Deteriorated Financial and Operating Conditions (Testimony,
01/26/95, GAO/T-RCED-95-90).

Amtrak's financial condition has always been precarious, but it has
declined steadily since 1990, to the point that its ability to offer
service over a national route system of the current size is seriously
threatened. It is unlikely that Amtrak can overcome its problems in
financing, capital investments, and service quality--and continue to run
the current 25,000-mile nationwide system--without significant increases
in passenger revenues or funding, particularly for capital investment,
from federal, state, and local governments. During the past several
years, Amtrak has responded to deteriorating conditions by taking on
debt, deferring maintenance, and cutting staff. Some of these actions
have diminished the quality and reliability of Amtrak service. In
December 1994, Amtrak announced an aggressive plan to reduce annual
expenses by $430 million annually by reducing routes and service,
retiring its oldest cars, cutting staff, and improving service and
productivity. Although this plan is an aggressive first step, it will
not solve the railroad's longer-term problems. In deciding future of
intercity rail passenger service in the United States, Congress will
need to consider the nation's expectation for such services and the
scope of Amtrak's mission. Congress will also need to decide the
appropriate role of the federal government in funding the operating
losses and capital investments.

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

 REPORTNUM:  T-RCED-95-90
     TITLE:  Amtrak: Deteriorated Financial and Operating Conditions
      DATE:  01/26/95
   SUBJECT:  Railroad transportation operations
             Railroad industry
             Financial management
             Cost effectiveness analysis
             Future budget projections
             Maintenance costs
             Cost sharing (finance)
             Competition
             Federal aid to railroads
             Administrative costs
IDENTIFIER:  Amtrak Northeast Corridor
             
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