ARC Testimony before Congress

Congressional Reporting Requirements

THE AMTRAK REFORM COUNCIL'S NEXT SCHEDULED MEETING WILL BE ON FRIDAY, DECEMBER 14, 2001

DATE: Friday, December 14th

TIME: 9:30 a.m. - 4:00 p.m.

LOCATION:

Monet Ballroom (2nd Floor) Loews L'Enfant Plaza Hotel 480 L'Enfant Plaza, S.W. Washington, D.C. 20024

AGENDA:

Discuss Options for an Action Plan to Restructure Amtrak for Submission to Congress by February 7, 2002

On Friday, November 9th, the Amtrak Reform Council approved a resolution finding that Amtrak would not achieve operational self-sufficiency by December 2, 2002 as required by the Amtrak Reform and Accountability Act of 1997. The Council's Finding starts a 90-day clock in which the Council must submit an action plan for a restructured and rationalized national rail passenger system to Congress. During this same time period, Amtrak must submit a plan to Congress for liquidation.

This meeting is the first scheduled Council meeting following the Council's decision to make a finding. During the meeting, Council members will begin the process of discussing the merits of various options for restructuring Amtrak.

On Tuesday, November 13th, Council Chairman Gilbert E. Carmichael sent a letter to the President and the appropriate Congressional committees informing them of the Council's decision and outlining the lack of progress by Amtrak in its effort to achieve operational self-sufficiency. These factors include:

• Amtrak is not on the glide-path to operating self-sufficiency. Amtrak's FY2001 performance was worse than its performance in FY2000, and Amtrak is in a weaker financial position than prior to passage of the ARAA.
• In FY2001, the Council estimates that Amtrak will lose approximately $340 million for the purposes of operational self-sufficiency, and lose over $1 billion under Generally Accepted Accounting Principles (GAAP).
  

This letter to the President is currently available on the ARC website: www.amtrakreformcouncil.gov/pressroom.html. For more information regarding this meeting, please contact Deirdre O'Sullivan at (202) 366-0631.

The Amtrak Reform Council is an independent Federal oversight commission established under the provisions of the Amtrak Reform and Accountability Act of 1997 (P. L. 105-134) to recommend improvements in Amtrak's operations and to monitor its financial performance.