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<p>Where did the "3.3 per cent of its total budget" come from? Budgets are not meaningful for public reporting purposes. At best they are internal management planning documents. At worst they are gaming exercises designed to pull the wool over the eyes of key stakeholders.</p> <p>Amtrak makes payments to states, localities, and other transportation companies (hoist railroads) for facilities improvements. As a general rule, if the payments extend the life of the facilities, i.e. upgrading a rail line from 40 mph to 79 mph, they would be capitalized and amortized over the expected life of the improvements. If the railroad capitalized the improvement, it would have to adjust its annual bill to Amtrak to reflect the increased depreciation charges.</p> <p>In FY11 Amtrak paid the hoist railroads $123.4 million dollars or 3.12 per cent of its total operating spend to hoist its trains. This is the normal, annual rental paid by Amtrak to the hoist railroads. It does not have anything to do with capital improvements.</p>
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