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Amtrak, Michigan traveling on different funding tracks

(The following story by Andrea Goodell appeared on The Holland Sentinel website on November 25, 2009.)

HOLLAND, Mich. — Passenger rail service from Grand Rapids to Chicago could be in trouble without additional money from the state.

Amtrak contracts with the Michigan Department of Transportation to operate the Pere Marquette, which passes through Holland, as well as Blue Water line that runs from Chicago to Port Huron.

The company asked for $8.2 million for this fiscal year, but the state offered $5.7 million. Negotiations can last for several months, MDOT spokeswoman Janet Foran said.

“Most definitely there’s a shortfall,” Foran said. “Last year, we were able to make up that difference. This year we’ll have to look at our resources to see how we can make up the difference.”

In the last fiscal year — Oct. 1, 2008 to June 30, 2009 — Michigan doled out $6.4 million for service on the two rail lines, but supplemented that later with another $400,000.

If the company gets 80 percent of what it requested from the state, the shortage may cause the line to close, but Amtrak would have to give the state a six month notice, Macatawa Area Coordinating Council Transportation Director Steve Bulthuis said.

“We’re committed to Amtrak service. We don’t anticipate there will be an interruption in service,” Foran said. “A seven-day-a-week service is important to the economic health of Michigan.”

Holland receives about $2.5 million worth of benefits from passenger rail service including savings to travelers and non-travelers and local business revenues, according to a Grand Valley State University report released earlier this year.

The Pere Marquette is as busy as ever. In October, the passenger rail line wrapped up its third-highest year ever for ridership.

It is these busy times, Foran said, when rail service requires less subsidy from the state because of fares sold.

Wednesday, November 25, 2009

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