In what is shaping up to be an important year for intercity passenger rail, Amtrak President and CEO, David Gunn, detailed his FY 2004 Budget Request. Gunn indicated that Amtrak would get through the remainder of the fiscal year without service interruptions.

For FY 2004, Amtrak has submitted a grant request of $1.812 billion. Amtrak's grant request breaks down into two categories: capital and operating costs. Amtrak estimates that they will require $768 million in operating funds and $1.044 billion in capital funds to sustain intercity passenger rail service during FY 2004. While Congress has yet to pass reauthorization legislation for Amtrak, Mr. Gunn predicted that Amtrak will need just under $2 billion per year for the next 5 years. Gunn noted that equipment and infrastructure maintenance, repairs and upgrades can no longer deferred. According to Gunn, Amtrak must repair and maintain equipment or trains will no longer be able to run at top speeds and train service will suffer.

Gunn stated that the FY 2004 budget request would help Amtrak stabilize itself and allow the rail operator to continue to make needed reforms. Since the near shutdown of Amtrak service this past summer, Amtrak has already begun implementing various reforms. Already, Amtrak has eliminated a call center, streamlined its management, begun providing monthly financial reports, eliminated routes, reduced the workforce and repaired damaged equipment. In the coming months, Amtrak will renegotiate labor contracts which should provide some financial relief for the next few years.

In assessing the FY 2004 outlook, Gunn projects a decrease in passenger revenues because of a slowing economy. However, Gunn also projected substantial savings in expenses, due in part to reforms that have already been implemented and changes that will be undertaken. Some of Amtrak's goals for FY 2004 include: improving reliability and quality of existing service, reinvesting in deteriorating capital assets and not beginning any new service unless it pays for itself.

In terms of security matters, Gunn feels that the newly established Transportation Security Administration (TSA) must properly deal with Amtrak. Gunn is concerned that with the heightened threat of terrorism and only 400 Amtrak police officers, rail service is vulnerable to an attack. Gunn wants the TSA to provide, implement and pay for security measures for Amtrak.

Finally, Gunn reiterated his frustration with the administration for failing to contrive a viable national passenger rail policy. The administration, OMB and U.S. DOT continue to be vague on what they want to see from intercity passenger rail and Amtrak. DOT officials have made vague references to introducing competition in intercity passenger rail, but have provided little leadership on the issue, said Gunn. However, Gunn has repeatedly stated that "I am not a politician" and is mainly interested in stabilizing and improving Amtrak, while DOT officials and Congress decide the future of intercity passenger rail.