Author Description

We released our fourth annual assessment of Amtrak's financial status, a periodic review mandated by Congress in 1997 as part of the same law that requires Amtrak to become operationally self-sufficient by December 2, 2002. We found that: Amtrak is no closer to operational self-sufficiency than it was in 1997. There is insufficient time for Amtrak to become self-sufficient by the December 2, 2002 deadline. Amtrak will likely need additional funding this year to continue operating. Additional borrowing against assets-such as the 2001 mortgaging of Penn Station-would adversely affect the long-term prospects for the railroad. Even if Amtrak becomes operationally self-sufficient this year, it will still need substantial Federal funds for capital improvements. Deferral of routine maintenance is starting to catch up with Amtrak.