Mineta to Gunn: Implement cost-cutting, cash-conservation measures immediately

[chad thomas]

From Progressive Railroading:


Mineta to Gunn: Implement cost-cutting, cash-conservation measures immediately

Yesterday, U.S. Transportation Secretary Norman Mineta sent a letter to Amtrak President and Chief Executive Officer David Gunn urging him to immediately implement cost-cutting measures to address the national passenger railroad’s deteriorating financial position.

As Amtrak enters the last quarter of fiscal-year 2005, Mineta recommended that Gunn reduce expenses and conserve cash.

After hearing Gunn’s May 12 testimony before Senate subcommittees, Mineta became concerned that Gunn is counting on receiving $60 million that has been reserved in case Amtrak runs out of operating dollars.

"It is irresponsible to project a positive cash balance based on an assumption about reserved funds," Mineta wrote.

Mineta also noted that the railroad cannot continue to spend dollars at current levels because the suspension of Acela Express service, which won’t resume until summer, is costing the company $1.25 million per week.

[jeaton]

Good idea. I am sure Secretary Mineta was able to tell Mr. Gunn just where the reductions can be made.

Mark it up as another really intelligent move by one of the geniuses appointed to handle our Federal Government affairs.

Jay Eaton

[Anonymous]

Let's see now...where can we cut?The train and enginemen now all run further than they used to. In some instances the road crews turn, service, and clean their own equipment. So we can't look there. We could close all the depots but then no one could get on or off the trains. We could try that old paper plates in the diner routine, but I think that may actually cost more than china. Maybe we could get rid of the food altogether and just have photos of food like in some B-rated coffee houses. Hows bout running the trains only downhill. We could get rid of the engines.
Remember, last year, American Airlines said they could save 40K a year by removing one olive from each salad in the meal service. But Amtrak doesn't serve that many salads.
We could get rid of the remaining guy in the cafe cars and make it a free-for-all.
I know...Why don't we just get rid of Minetta?

Mitch

[jeaton]

Mitch

I'll scond your last motion.

I am waiting for this afternoon's report from NARP to get the best look at the deal, but the UTU web site reproduces the Reuters report which note that
transportation "officials" make note of the $100 million loss for food service.

Appearantly, Mineta is saying that $60 million of the FY 05 appropriation is only available under "certain" circumstances and Amtrak should not count on getting the money. That part of the annual grant appears to be necessary for Amtrak to end the fiscal year with $30 million in cash.

Mineta continues to say that his actions are necessary to get a viable "reformed" rail passenger service for the US. I always try to be respectful of others opinions or actions, but in this case my anger is taking control. Either Secretary Mineta is as dumb as a box of rocks or, he has just adopted the current administration's practise of telling lies whenever it suits the ideology of the day.

Jay Eaton

[Modelcar]

....I'm amazed Mr. Gunn hasn't thrown in the towel and called Sec. Mineta to come on down and do the hands on running this railroad yourself....It's all yours...!! Perhaps the first cut he could make would be his salary to one dollar. Guess that might help. If Mr. Mineta has a pair of .....he would have been in the innards of government pounding his fist on the desk{s}....and get someones attention of the need for proper change and proper funding if we are to have a passenger rail system in this country....

[jeaton]

Checking out the actual letter, which is on both the NARP site and Sen Murray's site, it appears the the $60 million was to be held in reserve for use for "directed service". That would be the money necessary to allow the transit operations that have a dependency on Amtrak to keep running. That would be places such as SEPTA and NJT. Now the money is part of the FY 05 Amtrak grant, but it was to be held in reserve just in case Amtrak went out of business. The FY 05 Amtrak Budget, which was approved by the Bush appointed Amtrak Board and includes Mineta, included the $60 million. Here is the thing. If Amtrak is given the money, it will be able to continue operations until the end of FY 05 on September 30, 2005. If Amtrak doesn't get the money, it will run out of cash before the end of FY 05, will shut down, and then the $60 million will be spent to continue the affected transit operations.

Is this a stupid or am I missing something?

Mineta running Amtrak? [D)][D)][D)][D)][D)][D)][D)][D)][D)][D)][(-D][(-D][(-D][(-D]
[(-D][(-D][(-D][(-D][(-D][(-D]

Jay

[BaltACD]

Figures lie....Liars Figure.

Which is Mineta?

[Modelcar]

....All of the above.

[Anonymous]

Oh..There's an old ploy. Blame the dining car. What a strategy. They can talk Amtrak into getting rid of food service. Then NO ONE will want to ride because their grocery bag will be counted as excess baggage, and they'll have to starve going across the desert. Then, the administration can proudly state that even more passengers are leaving the rails. I figured that when Mineta started up with cost cutting rhetoric he would quickly get to the food and beverage service. Right at the heart.What genious. What jerks.

Mitch

[Anonymous]

Maybe Gunn should publish a new schedule with no stops in States where Congressmen intend to vote against funding.

[Anonymous]

QUOTE: Originally posted by up829

Maybe Gunn should publish a new schedule with no stops in States where Congressmen intend to vote against funding.

That's a good statement. It leads to the entirety of the problem of seperate state funding. What happens when a constituent of a friendly state wants to visit his dying aunt in an "unfriendly" state.

Mitch

[jeaton]

Mitch

The answer one might get from Mineta and his minions at Transportation is "That is a detail that has to be worked into the plan."

The garbage coming out of Transportation is more than spin. As I have stated before, either the top people in the DOT are incredibly stupid or they are purposly putting a pack of lies. Take your pick.

Jay

[Anonymous]

QUOTE: Originally posted by jeaton

but it was to be held in reserve just in case Amtrak went out of business. The FY 05 Amtrak Budget, which was approved by the Bush appointed Amtrak Board and includes Mineta, included the $60 million. Here is the thing. If Amtrak is given the money, it will be able to continue operations until the end of FY 05 on September 30, 2005. If Amtrak doesn't get the money, it will run out of cash before the end of FY 05, will shut down, and then the $60 million will be spent to continue the affected transit operations,.

Is this a stupid or am I missing something?

Mineta running Amtrak? [D)][D)][D)][D)][D)][D)][D)][D)][D)][D)][(-D][(-D][(-D][(-D]
[(-D][(-D][(-D][(-D][(-D][(-D]

Jay

You don't see the pattern there? you solved your own riddle.... if this were baseball we'd be refering to it as a "called shot"