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Quarterly Report on Amtrak's FY 2007 Operational Reforms Savings and Financial Performance

File Attachment

On July 31, as mandated by the House passed fiscal year (FY) 2007 Appropriations Act for the Department of Transportation, we issued our third quarterly report to the House and Senate Appropriations Committees on Amtrak's savings from operational reforms and year-to-date financial performance. Amtrak is likely to realize $45.6 million of the $61 million in FY 2007 reform savings it originally anticipated and $224 million of the $550 million in FY 2011 reform savings it originally anticipated once the reforms are more fully implemented. Amtrak continues to make progress on several of its strategic reforms, notably in improved Acela service and in food and beverage service. At the same time, it has made little or no progress or fallen behind schedule on others. In addition, Amtrak was $109 million ahead of its budget through May. It is likely to end the year with a cash operating loss of approximately $390 million and a cash balance of nearly $300 million. This favorable financial performance reflects, in part, the absence of a labor settlement. A settlement, while important to the operation of Amtrak, would likely reduce, and may eliminate, the amount by which Amtrak is ahead of its budget projections. As required by Congress, reports requested by the House and Senate Appropriations Committees are subject to a 15 day hold before being publicly released. In compliance with that requirement, the report was withheld from public release until August 16, 2007.