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[quote user="daveklepper"] Dallas' bus vs rail subsidy costs don't show as much difference as other cities, where costs for rail are about half those for bus per passenger or passenger mile. [/quote] Without knowing what other cities you are referencing, it would be difficult to make an intelligent comment.  In some instances, lets say the Long Island Railroad, the annual depreciation expense for it could be considerably less because most of the property has been depreciated, whereas DART is not only wearing a significant amount of depreciation,it is adding to its capital base and, therefore, increasing its annual depreciation expense. It of course is factored into the amount of the required subsidy. Here is how Amtrak could eventually cover all of the NEC's costs. As it depreciates its embedded capital costs, whilst increasing revenues, the gap between the operating margin and net income narrows and eventually closes.  A key point, however, is not to add to the capital base at a greater rate than the growth in revenues, which can move upward because of inflation if nothing else.  Thus, over time, whilst revenues are expanding and depreciation expense remains fixed, the gap closes, and eventually the system has enough revenues to cover its fully allocated operating expenses as well as its embedded capital (depreciation, interest, etc.) expenses. If the managers are on top of their game, once the property has been nearly depreciated, they sell it or spin it off to an infrastructure management company - call it Amtrak Track and Wires - for somewhat more than book value; tell the taxpayers that they have had a gain on the sale of the property, and get the board, which is made up of unknowing politicians, to award them a bonus for being prudent managers. Then they negotiate rents with AT&W so that they can cover all of their expenses. This is what the Japanese and French have done with a portion of their high speed lines, I believe. I realize  that this is not a transit example, although it would work for transit operators, but I just had to get it in. And you thought only lawyers and politicians were a bit dodgy!!!!
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