NATIONAL TAXPAYER WATCHDOG GROUP QUESTIONS NEED FOR AMTRAK’S NEW “HEARTLAND FLYER”
Press Release
For Immediate Release | Contact: Jim Campi or Aaron Taylor |
June 23, 1999 | (202) 467-5300 |
(Washington, D.C.) – Citizens Against Government Waste (CAGW), America’s largest taxpayer watchdog group, severely criticized a recent Amtrak decision to open passenger rail service between Fort Worth, Texas and Oklahoma City, Okla. The 180-mile route, dubbed “The Heartland Flyer” by Amtrak officials, is expected to lose more than $14 million during its first three years in service.
“The Heartland Flyer is the latest example of Amtrak’s blatant disregard for the interests of taxpayers,” remarked CAGW President Thomas A. Schatz. “At a time when Amtrak is supposed to be weaning itself off government subsidies, the railroad continues to squander money on unprofitable and unnecessary routes.”
According to Amtrak, The Heartland Flyer will be one of the most heavily subsidized trains in the railroad’s 29-year history. To provide service between Fort Worth and Oklahoma City, Amtrak expects to pay $228 per passenger on the Flyer – $204 over and above the $24 ticket fee customers will pay to travel the route. The cost to taxpayers for this subsidy will be $4.8 million in the service’s first year alone.
“It’s hard to image, but it would actually cost taxpayers less money to rent a limo and drive Amtrak passengers back and forth between Oklahoma City and Fort Worth,” noted Schatz. “Roundtrip limousine rental between the two cities costs $450 – six dollars less than the cost of the train ride. And if you take the limo, you can bring five friends along for free!”
Despite its cost, The Heartland Flyer will be considerably slower than a similar service provided by the Santa Fe Railroad in the early 1950s. “Would you believe that The Heartland Flyer will actually take 40 minutes longer than the same service did nearly a half-century ago?” Schatz declared. “Maybe it should be called ‘The Heartland Crawler’ instead.”
Amtrak has a long history of steaming in the red. According to a 1998 General Accounting Office report, only one of Amtrak’s 40 existing lines operates at a profit. In fiscal 1997, Amtrak lost approximately $47 for every passenger served by the railroad. The Congressional Budget Office reports that Amtrak has “consumed more than $20 billion in federal subsidies since its creation” in 1970.
CAGW is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, mismanagement and abuse in government.