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TechnographAmtrak president speaks at UI, rails against Bush budget proposal
By Nate Sandstrom
Posted: 2/11/05 Section: News
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Private companies own most tracks outside of the Northeast, and they are more willing to accept the insurance of a large company like Amtrak than smaller companies, Capon said.
"If the states become responsible for acquiring insurance, they will probably not be able to do it. Most states are not used to the type of exposure Amtrak deals with everyday," he said.
If Amtrak went bankrupt, the budget proposal would still allocate $360 million to maintain services in the Northeast Corridor. However, Gunn said if bankruptcy occurred, he did not know who would operate rail travel in the Corridor.
Many Illinois politicians have also criticized the proposal to cut federal money for Amtrak. This week, Gov. Rod Blagojevich wrote a letter to President Bush asking him to reconsider the plan.
"Amtrak provides vital and affordable transportation service for many of our families, seniors on fixed incomes, our members of the armed forces and students," he said in the letter.
Sen. Dick Durbin (D-Ill.) has been a vocal critic of Bush's proposal. He said the plan would cause more than 2,000 Illinois residents to lose their jobs and cost the state millions of dollars in business.
The proposed budget now goes before Congress for approval. In the past, Congress has often made major changes to presidential budget proposals. Last year, Bush proposed a $318 million cut in Amtrak funding, but Congress later overturned those proposed cut, allocating $1.2 billion to the rail company.
Many Republicans have said it is too early to worry about exact figures.
"Let me reiterate that the President's budget is only a proposal," said Rep. Tim Johnson (R-Ill.) in a statement. Johnson said fiscal responsibility is important because of the record government deficit, but that it was necessary to maintain Amtrak service in Illinois.
Gunn said he was confident that Amtrak would receive money from Congress. He said Amtrak needs around $1.5 billion to operate this year.
Capon was less sure of the funding for this year.
"I think it's going to be a very tough fight because of the number of programs (Bush is) seeking cuts in," Capon said.
"If the states become responsible for acquiring insurance, they will probably not be able to do it. Most states are not used to the type of exposure Amtrak deals with everyday," he said.
If Amtrak went bankrupt, the budget proposal would still allocate $360 million to maintain services in the Northeast Corridor. However, Gunn said if bankruptcy occurred, he did not know who would operate rail travel in the Corridor.
Many Illinois politicians have also criticized the proposal to cut federal money for Amtrak. This week, Gov. Rod Blagojevich wrote a letter to President Bush asking him to reconsider the plan.
"Amtrak provides vital and affordable transportation service for many of our families, seniors on fixed incomes, our members of the armed forces and students," he said in the letter.
Sen. Dick Durbin (D-Ill.) has been a vocal critic of Bush's proposal. He said the plan would cause more than 2,000 Illinois residents to lose their jobs and cost the state millions of dollars in business.
The proposed budget now goes before Congress for approval. In the past, Congress has often made major changes to presidential budget proposals. Last year, Bush proposed a $318 million cut in Amtrak funding, but Congress later overturned those proposed cut, allocating $1.2 billion to the rail company.
Many Republicans have said it is too early to worry about exact figures.
"Let me reiterate that the President's budget is only a proposal," said Rep. Tim Johnson (R-Ill.) in a statement. Johnson said fiscal responsibility is important because of the record government deficit, but that it was necessary to maintain Amtrak service in Illinois.
Gunn said he was confident that Amtrak would receive money from Congress. He said Amtrak needs around $1.5 billion to operate this year.
Capon was less sure of the funding for this year.
"I think it's going to be a very tough fight because of the number of programs (Bush is) seeking cuts in," Capon said.
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