Passenger Trains > CR what does it mean for Amtrak

If the Congress passes a " clean CR" as predicted by Speaker Pelosi and Tres. Sec'y. Mnuchin what does that mean for Amtrak. I think it means that for the duration of the CR Amtrak will receive what it got in the previous fiscal years budget. Is that correct?  

  If that is correct if I'm doing the math correctly Amtrak will run out of cash sometime next spring should the CR be of that long a duration. Am I doing the math correctly??

   Could be a very important issue.  Ross Rowland 

They will run out of money only if they allow themselves to run out of money. Which will mean reducing costs in spite of all the resulting whining.

Bill Deaver
Tehachapi, CA

Will the CR, if passed by Congress, have any conditions attached to Amtrak's funding?  Specifically, like the House legislation, will the CR stipulate Amtrak's service levels would have to maintained at the 2019 level?  I'm guessing not, so the cuts will happen.  Any thoughts on this?
SCAXEngr   

CR stands for Continuing Resolution. In other words, kicking the can down the road to let the new Congress deal with it. So wouldn't that mean all funding for everything remains as is for now 

andersonb109 Wrote:
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> CR stands for Continuing Resolution. In other
> words, kicking the can down the road to let the
> new Congress deal with it. So wouldn't that mean
> all funding for everything remains as is for now 

In official language CR stands for "can repositioning."

Kim Heusel

I believe Amtrak has been through many CR's over the past years.  Nothing new, really.

Normally, I would say this would be OK, because Amtrak has received some nice budgets for the past 3 years or so '''

But with such little revenue coming in because of the virus -- a CR won't go very far this time.

 

CRs are now the norm in annual appropriations and have been for some time, as the days of the two parties reaching agreements on "regular" appropriations and authorizations are mostly consigned to the realm of history.

Art House

ronald321 Wrote:
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> I believe Amtrak has been through many CR's over
> the past years.  Nothing new, really.
>
> Normally, I would say this would be OK, because
> Amtrak has received some nice budgets for the past
> 3 years or so '''
>
> But with such little revenue coming in because of
> the virus -- a CR won't go very far this time.
>
>  

CR - they'll be funded at same level as 2019, but problem is, Amtrak needs more than double that just to operate at a tri-weekly basis cause not has their regular revenue been turned off by the pandemic (low to reduced demand on ridership), but the States are not contributing much at all and have even suspended service. So Amtrak can only begin massive cost reductions to keep afloat with even just the CR money coming in - and that's all not just "dropped" off at one time either! Amtrak could easily have a cash flow problem as early as November as they await for money to come in or burn through it based on cost cutting efforts (which are initially going to be an added expense even!!!!). So this is like a full double whammy!

- Reduced (to NO) State Revenue 
- Reduced Fare Revenue
- Cost Reduction Initiatives Go in Place (e.g. 3x per week for trains, layoffs, furloughs etc,) - this is ADDED cost at first, not a pure cost savings/reduction.........

Suspending any CapEx, repairs/maintenance - that will help! But Amtrak will be on cash preservation mode (or should be) while also trying to "pay" for its cost reduction initiatives, which it effectively didn't get money for in the CR......

CR wont help Amtrak once they go 3 days a week next month because of the economics on that! I for one just hope they don't do the 180 day notices next year, they do that Flynn's claim about this being temporary will be shot down in a heartbeat and no passenger trains anymore in the US!



Edited 1 time(s). Last edit at 09/15/20 20:03 by ProAmtrak.

Added costs would be severance pay. How many months severence would an Amtrak employee receive ?

aehouse Wrote:
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> CRs are now the norm in annual appropriations and
> have been for some time, as the days of the two
> parties reaching agreements on "regular"
> appropriations and authorizations are mostly
> consigned to the realm of history.
>
> Art House

Unfortunately, that has become true in some highly politicized areas.  But, Congress did manage to pass seven (IIRC) of the 12 budgets on time this year. With minimal conflict.

Both sides like to play to their bases by adding items or poison pills to bills. That makes them impossible to pass, and the sides won't compromise

UP951West Wrote:
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> Added costs would be severance pay. How many
> months severance would an Amtrak employee receive
> ?

It's a LOT more complicated than severance pay! Amtrak is providing for workers' health insurance and certain benefits for about a year's time; even the unemployment cost is going to be costing Amtrak with the way it works. Amtrak is doing "buyouts!" That's not cheap. These are typically big cash flow drains at first, that eventually produce a long term benefit, if that, and in theory. There's a separate thread around here somewhere that talks about the extra costs that Amtrak will be enduring for at least the fist year while Amtrak goes to 3x per week. Any real labor "savings" from reduced operations, doesn't really come in to play for at least 2 to 3 years according to what most have reported. It gets even more complicated with reduced revenues and lost patronage.