DOT secretary vows to avert Amtrak shutdown

WASHINGTON -- Transportation Secretary Norman Mineta said Monday that he is confident the federal government will not allow Amtrak to shut down and will work with the company's board and with Congress to ensure that passenger rail service continues.

"I am confident Amtrak will not shut down," Mineta said after stepping out of a meeting of the Amtrak board. "Everyone who depends on this vital rail service needs to understand that this administration and Amtrak will work together and with Congress to make sure that passenger service continues."

It was the first time an administration official had made that strong a pledge to work to prevent an Amtrak shutdown. Administration officials have said they would "work furiously" or "make every effort" to prevent a shutdown.

However, Amtrak issued a statement saying that there is still no agreement and the shutdown looms.

"Secretary Mineta's pledge to avert a shutdown of Amtrak in the next several days is greatly appreciated," said the statement by Amtrak Board chairman John Robert Smith and president David Gunn. "However, there has been no reconciliation of the simple fact that Amtrak is running out of cash and no agreement of how to provide a loan guarantee or appropriation that will continue train service to the end of the fiscal year.

"In short, the pledge delays the shutdown, but does not stop it from occurring."

Could delay shutdown

Gunn has said Amtrak will run so low on cash this week that it will be forced to begin an orderly shutdown of all the country's passenger trains and most commuter operations unless $200 million is found to tide the company over until the beginning of a new fiscal year on Oct. 1.

Gunn said that if Congress or the administration appeared near a solution he could delay the shutdown for a few days.

After meeting for three hours with the Amtrak directors Monday, Mineta acknowledged that a solution had not yet been found.

"We have had a very productive discussion today, exploring every possible option to ensure Amtrak's continuity of operations," Mineta said.

He gave a vague outline of what the administration wants from Amtrak and Congress in exchange for whatever financial solution is found.

"First," Mineta said, "Amtrak must continue to search for ways to cut expenses and to build on David Gunn's initial efforts to get control of its finances.

"At the same time, the federal government will continue to identify the best mix of loan guarantees and other means to stabilize Amtrak's short-term finances."