Thursday, April 10, 2003
DOT 30-03
Contact: Chet Lunner
Tel.: (202) 366-4570
WASHINGTON - In testimony before the
Appropriations Subcommittee on Transportation, Treasury and Independent Agencies
today, Deputy Secretary of Transportation Michael P. Jackson hailed the signing
of an agreement between DOT and Amtrak as the first step toward a new era of
accountability in the operation of a viable inter-city passenger rail service.
“I
am pleased to report that yesterday the Department approved Amtrak’s business
plan for the remainder of FY 2003 and executed the Amtrak grant agreements
contemplated by the FY 2003 Appropriations Act,” said Jackson, who is
Transportation Secretary Norman Y. Mineta’s delegate on the Amtrak board of
directors. “In doing so, DOT unambiguously communicated to Amtrak and its
Board the following requirements: this
year there will be no federal loans or loan guarantees, no ‘creative
financing’ by Amtrak, no gimmicks, no shutdown drama, no threat against
commuter operations, and no kidding -- Amtrak will live within the budget that
Congress appropriated.”
The
2003 appropriations law gives the DOT specific oversight of each phase of Amtrak
spending and the authority to withhold grant payments until Amtrak agrees to
spending parameters approved by DOT. The Federal Railroad Administration will be
the DOT agency overseeing Amtrak’s financial performance.
“To that end, we will monitor Amtrak’s condition monthly, and will be working with Amtrak to help it meet the targets laid out in its business plan. DOT will provide monthly reports to you on Amtrak’s progress,” Jackson said. “We expect to provide Amtrak’s fourth quarter grant in early July, but if necessary at that point we can make partial disbursements on a monthly basis to ensure fidelity to the bottom line of Amtrak’s business plan. Let me be clear about DOT’s role under the law. Amtrak itself retains its daily management responsibilities; DOT will provide oversight and enforce accountability.”
Jackson
praised the cooperation from Amtrak’s senior management that led to the
first-ever agreement.
“David
Gunn has worked with the Amtrak Board of Directors to reduce operating expenses,
de-layer management, improve customer service, address the numerous material
weaknesses identified by Amtrak’s auditors, instill financial discipline, and
provide Congress and the Administration with more accurate and timely financial
data.”
DOT Secretary Mineta last year spelled out five principles
that he argues must form the core of any successful reform of intercity
passenger rail service. His
principles would:
· Create a system driven by sound economics.
· Require that Amtrak transition to a pure operating company.
· Introduce carefully managed competition to provide higher quality rail services at reasonable prices.
· Establish a long-term partnership between the states and the federal government to support intercity passenger rail service.
· Create an effective public partnership, after a reasonable transition, to manage the capital assets of the Northeast Corridor.
###