Analysis of Proposal To Reduce Amtrak's Federal Subsidy

GAO inquired into AMTRAK's estimate that it can provide intercity rail passenger service only if the Northeast corridor of the federal subsidy is limited to $613 million in fiscal year (FY) 1982. GAO met with AMTRAK and Federal Railroad Administration (FRA) officials to obtain their comments and analysis of AMTRAK's estimate. Some of the data used in making the estimate were taken from AMTRAK's financial reporting systems. Other parts of the estimate are based on AMTRAK's subjective judgment of factors such as the number of employees who would be adversely affected by route cutbacks and the number of affected employees who are likely to receive labor protection payments in FY 1982.