Effective April 1, 2022. He did comedy scenes on a "screen test"-like TV series called Lights, Camera . If we just Anderson said, It would be more demoralizing if we had to tell people they And, with more boardings, the stations corporate-allocated share of system costs would rise. It was developed at the request of Congress in 2005 to definitively categorize the companys expenses, according to how and where they are incurred. The one thing the US cannot do is default on its debt, that standard is one of the reasons our country as been a safe place for investors world wide to be in. Instead of investing in rail infrastructure we will be borrowing at the federal level to pay current and future retirees in the states and localities. Among the challenges Amtraks chief executive has to navigate is that other railroads are the biggest users of Amtraks infrastructure in and around New York. The biggest is a long-overdue acquisition of new cars and locomotives. MIKE Really? More money, so much more money, right down the drain of the biggest legal scam ever devised. Watching Washington, November 2018: When a 1978 labor dispute . [1] At Northwest, Anderson was initially charged with labor relations and government affairs. Amtrak CEO Richard Anderson is intent on reshaping the state-owned passenger railway into an economically-efficient inter-city operator. Whether maintenance is an operating expense or a capital item depends on the nature of the expenditures. different longer term, Anderson said. If Mayor Pete ignores this report, fails to take action, then any pro-passenger rail statements he makes from here on out are hollow. But that work would not lessen the need for new tunnels, which would provide redundancy and increase capacity, he said. Daily ridership is down 90% systemwide while future bookings are down 85% year-over-year, according to Amtrak. Anthony Coscia, the chairman of Amtraks board of directors, said on Monday that it was too soon to forecast how much of the repairs could be accomplished during weekends and what impact they would have on train service. We have 10 routes running on reduced schedules and Really? The 401K retirement program match is also immediately discontinued. This article should cause disgrace to suffocate those in charge of AMTRAK. Frustrated by the impasse in Washington on that proposed project, Amtrak officials have started planning piecemeal repairs to the existing Hudson tunnels, which are 109 years old. Over the past three or four years, it SEPTA is taking its own difficult short-term measures including a cut to executive pay, eliminating overtime, and a hiring freeze, while it also considers further service reductions. Because after we get through this, the economy is going to be in recession, and that means our ridership will be down and we will be curtailing capacity to meet demand.. It is, by definition, a public/private partnership. The question now is, What do we do about it? The quest to stem the sources of red ink has been blessed by Amtraks board of directors and orchestrated by CEO Richard Anderson and Executive Vice President and Chief Commercial Officer Stephen Gardner. Amtrak, which has lost vast sums of money for decades, is expected to turn an operating profit this year. Get updates and special offers via email from Trains.com brands! government restrictions are put in place, Anderson said. Although Anderson said Amtrak has more than $3 billion in E.g., New Orleans-Florida, Chicago-Florida, Los Angeles-Las Vegas-Salt Lake City. Incoming CEO William Flynn will succeed Richard Anderson on April 15. Anderson will remain a senior adviser through the end of the year. So whatever amount the company decides to spend, the Chief and other routes are charged a portion based on performance tracking formulas, not whether the resources were deployed to actually benefit the services. Employee salary and payroll records for 1,364 fire departments and other fire protection employers. CURTIS You speak good and necessary sense (below) at a time of total national insanity. That system failed to provide reliable cost accounting information essential to making prudent business decisions, according to a 2013 U.S. but how can we get amtrak to go back to full dinning on the lakeshore limited , the silver star and the capital limited and what be done to get amtrak to revoked excursions and carriage of private cars ? Bruno Maestri. And cost cutting through 2017 management buyouts eliminated field personnel and resulted in a loss of institutional knowledge perhaps the biggest such loss in the companys 47-year history that has permanently diminished U.S. passenger-rail expertise. Flynn.[11]. Our continuing work of educating put on hold owing to their criticality to keeping trains moving, and principal Yet rather than follow the business school playbook of lopping jobs as if workers are disposable office supplies, Amtrak President Richard H. Anderson is ministering to his workforce, treating workers as family by making an extraordinary effort to protect their income stream and healthcare benefits. Kevin Smith examines Amtrak's plans and the challenges facing the United States' passenger operator. Amtraks accounting system and management priorities mitigate against that. What exactly is Anderson supposed to do, run a full schedule of empty trains? Few railroad passenger vehicles have had as long a lifespan as the Budd Rail Diesel Car. Classic Railroad Scenes: Railroads at Work. and interest to be paid on existing loans. Wilner is a past president of the Association of Transportation Law Professionals. The entire board and most of top management should be throw out, they are all incompetent. mirror the 64% reduction in ridership that is expected to decline further. Mr. Anderson said that Mr. Flynn had sentimental ties to railroading, given that his father had been an engineer and some other members of his family had worked in the industry. Protect the workers and press on with needed projects. Everyone is very happy with all the talk about improving rail operation and service, but in reality, no one wants to do the work to fix any of it. Between February and July 2016, he sold $15.9 million worth of Delta stock. It is calculated by type of asset, such as a Viewliner or locomotive, and the amount shows up as an expense charged against the route to which it is assigned. Amtrak service is vital to millions of Americans across the nation and by improving the customer experience, driving safety, and strengthening our partnership with states and other stakeholders, we can do much more for the American people, Flynn said in a statement. The family followed railroad work from Galveston to Dallas and Amarillo. They allocate costs in such a way as to make their decisions look good. Amtrak also would be on the hook for almost $400 million in construction costs for Relateds Hudson Yard skyscraper project. By all accounts, Mr. Anderson, who guided Delta through a bankruptcy proceeding, has been successful. In response to an emailed employee question later in the session, Anderson said: There are pieces of the network that ought to be permanently trimmed; you know, Ive said that for a very long time. The Long Island Rail Road and New Jersey Transit carry the bulk of daily users of Penn Station, which New Yorks governor, Andrew M. Cuomo, wants to expand by annexing a block of Midtown Manhattan. When Anderson joined, it experienced two crashes in a brief span, and it didn't earn enough revenue to cover its costs. ANDREW Another possible outcome is that the stimulous (money that the government will print if it doesnt first run out of ink) would include a rider to maintain all current routes. during his three-year tenure at Amtrak, such as reducing food service and . In business 101, one learns that no business can cut its way to profitability. $100,281 - After five years. We analyze collective bargaining agreements, evaluation handbooks, salary schedules, and other documents to distill district policy across key topics such as salary, evaluation, and teacher work day. The Rail Passengers Association white paper uncovered the fact that in fiscal 2017, state-supported routes were charged $5.1 million and long-distance trains $5.6 million for track maintenance. In 2017, Amtrak sharply curtailed the amount of information publicly disclosed in its Monthly Performance Report (from 66 pages in August to 7 pages in September). Our Standards: The Thomson Reuters Trust Principles. But, he added, Rest assured, were going to take good care of those tunnels.. However, when Anderson stated that over two and a half years it takes about $2 billion to keep the long-distance network operating, he again used the largely allocated expense figures the company assigns to imply that these are avoidable costs that is, they would all disappear if the trains were discontinued. . In a letter Friday, Pennsylvania lawmakers turned to top congressional leaders for help, noting the financial impact of the outbreak on SEPTAs operations will be devastating.". At least $1 billion in cash will flow WASHINGTONAmtrak Chief Executive Richard Anderson is stepping down after three years and will be replaced by the former CEO of Atlas Air Worldwide . Notably, if the focus is properly narrowed to qualifications Were not getting credit for efficiencies, she told Trains in a September 2014 interview, adding, Weve committed to paying the costs of operating our services. Rev. Call it his Sully moment, after US Airways pilot Chesley Sullenberger, whose 2009 Miracle on the Hudson saved 155 souls on board his crippled A320 aircraft. Dont you think there will be bail-outs? Most of them dont even seem to understand fundamental accounting principles. In truth, I dont think anyone even wants to. Railroad management plus government incompetence. It has led to sharply reduced food service on the Lake Shore Limited, Capitol Limited, and Silver Star; curtailed excursions and carriage of private cars; eliminated revenue-growth initiatives, other than ticketing penalty fees and periodic internet-based fare sales; and threatened the Chiefs future. Fare-paying passengers have vanishedalmost entirely on Northeast Corridor Acela trains; significantly on all others. Anderson, who fulfills his three-year commitment to the company this year, will remain with Amtrak through the end of the year as a senior advisor to Flynn. Amtrak now projects losing $1 billion in revenue through Following a Chicago luncheon on May 25, 2017, former Amtrak President and CEO Wick Moorman told Trains that long-distance trains break even on direct costs. But when Amtrak allocates overhead using a formula developed by the Volpe National Transportation Systems Center, he said, based on rational types of things like passenger-miles and train starts, [they] end up with about a $500 million loss. State-supported trains, he added, lose about $90 million on a fully allocated cost basis. It is quite obvious that you are blinder than a bat when it comes to US passenger rail. Mr. Flynn would be the third veteran executive from the transportation industry to run Amtrak in the last three years. With record ridership and revenues, but critical infrastructure in dire need of billions in investment, Amtrak is at a crossroads, Mr. Schumer said. Through February in the 2020 fiscal year that began in October 2019, Anderson reported that Amtrak was running 91% above plan. Trains News Wire confirmed that in February, the long distance, state-supported, and Northeast Corridor categories all showed sharp increases, with overall ridership and revenue both up an average of 6.5% compared with February 2019. Actor: Paths of Glory. Dismiss the Board, fire the accountants and senior management, and hire people with a sense of mission and service. Amtrak Mission, Vision & Values Amtrak Mission & Values Amtrak Mission: Delivering intercity transportation with superior safety, customer service and financial excellence. Citing anonymous sources is disingenuous. The Volpe report claims this provides a more representative measure of the resource cost of all capital equipment and property, regardless of how financed, currently used by Amtrak to produce various services and outputs. Alas, its not a real expense, but an accounting device. Why the GAO doesnt force them to turn their numbers over to an independent auditor I dont know, unless of course that would reveal some back door shenanigans with money and Congressman. has COVID-19. One way to reduce costs is to eliminate all customer costs: advertising, salesmen, support, service, Since Amtrak has no incentives to increase sales that is what will happen. Richard Anderson appeared in high school plays, served a hitch in the Army and, upon his discharge, began doing summer stock, radio work, a movie bit part (a wounded soldier in Twelve O'Clock High (1949)) and all the other minor jobs required of your basic struggling actor. Anyone interested in learning how Amtrak calculates route performance, as well as the financial performance of long-distance trains, can find information in How Does Amtrak Calculate Route Financial Performance? When the good times again rollbefore COVID-19 Amtrak was reporting record revenue and ridershipthe objective is that Amtraks almost 20,000 employees will rejoice that jobs and healthcare benefits were preserved. Volpe describes another rough estimation, asset usage allocation, as a synthetic substitute for interest and depreciation. If the expenditure will extend the life of the asset, it is capitalized and depreciated over the expected life of the asset. transportation system recovered fairly quickly, Anderson said, in contrast to In Maine, Northern New England Passenger Rail Authority Executive Director Patricia Quinn saw equipment charges double, and questioned line items for unrelated Chicago activities. Todays announcement of Bill Flynn as Amtraks next C.E.O. discussed, but ridership numbers are telling. Is there really anyone who knows whats going on? Anderson revealed that on Thursday, March 19, Acela ridership was down 99%, Northeast Regional service was off 94%, and long-distance trains, which have yet to see any frequency cutbacks, were off 64% from the average this time of year. How much more can be affordedor unafforded, for that matterbefore inflicting even more long-term economic harm on the nation is unknown, as so unprecedented and uncharted is this crisis of which Amtrak is but a miniscule part. furloughs. designing a new tunnel a decade away. now, which elsewhere in America are darkening family futures as did locusts I dont think any Washington bureaucrat has guts to to tackle this accounting sham. Members enjoy 15% off any purchase in our store. The Rail Passenger Association Report was performed by an MBA in marketing. Also, President Trump on March 2 re-nominated two of his proposed candidates for the Amtrak Board of Directors - Joseph Gruters and Lynn Westmoreland. Last week, the company reported an operating revenue of $3.3 billion for fiscal year 2019 a 3.6% increase over the last year. Amazing that Andersons Golden Child the Acela is the first to fall the obviously weak link in the Amtrak chain yet he turns it around to make it sound as if the LD network is the weakest using the Amtrak voodoo accounting to try and back it up. our country needs long distance amtrak trains without them people will never be able to sleep, eat, and see the country by rail. . Too bad he didn't have a "Save Amtrak, Fire Anderson" baseball cap with him. For example a state pension fund might be under water if its accountants based pension payments on the expectation of, say, 8% perpetual return in investments when the actual return was well under. Reporting by David Shepardson; Editing by Nick Zieminski. But several years ago, the company began paying bonuses to managers who meet financial goals, largely based on trimming expenses. According to the route level results of the fiscal 2017 performance report, the Chicago-Los Angeles train generated $49.9 million in revenue but racked up $104 million of so-called operating expenses. The other big men seem to have at least a basic grasp on the value of the LD network, and the new STB redos Amtraks accounting to make it less murky. While Anderson served as Amtrak CEO as a public service (taking one dollar per year salary), the Wall Street Journal reported that Flynn will earn $475,000 per year. There is no point in operating empty trains. [9], In June 2017, Amtrak announced Anderson as the organization's next President and CEO, replacing Charles "Wick" Moorman. Amtrak flirted with bankruptcy earlier in the 2000s. By any measure, the economy is in recession, Anderson said. He did not have access to Amtraks books. It would hurt the individuals that bought them, but the big losers would be all the foreign governments that bought that debt, theyd fight tooth and nail to get us to keep payingwhich is when you through the ultimatum at them. (Assuming they can get past the partisan debates and arguments about how many trillions of $$$ to spend on Corona Virus bailouts). I dont see this country return to normal in our lifetimes, let alone, CURTIS, as you advocate, doing some good. Amtrak, Struggling to Keep Trains Running, Chooses a New Leader, https://www.nytimes.com/2020/03/02/nyregion/amtrak-ceo-william-flynn.html. Subscribers, sign in to access exclusive content. Im certain the long-distance network is going to be very different longer term. Bookings are down 99% on one route, almost as high on other routes, more states each day are on lockdown, virtually no one is riding the trains, and your post is the best you can come up with? Georgiette Morgan-Thomas heads on the platform at Penn Station in New York to board the Amtrak #89 train which leaves at 5:51 a.m. May 3, 2019. These resources play a vital role in ensuring that Amtrak can develop and consistently provide competitive products and services, as well as delivering investments that will sustain, improve, and grow our business.. Top Salaries. a lame-duckpresident (mr. anderson) should not state policy; that is the job of new president, mr. flynn. . States had already begun to protest some decisions. The multivolume blueprint of the systems methodology uses the term professional judgment to describe how rules were jointly developed by Volpe and Amtrak financial analysts to distribute company overhead expense. So, CURTIS, you can forget about your sensible position. One of his best-known roles was his portrayal of Oscar Goldman, the boss of Steve Austin and Jaime Sommers (Lindsay Wagner) in both The Six Million Dollar Man and The Bionic Woman television series between 1974 and 1978 and their subsequent . That would be an Amtrak paycheck, will remain through year-end as an adviser to incoming CEO William With so many costs allocated either Amtraks cost accounting is completely flawed and/or there is too much overhead, probably both. We also present examples we uncovered that attempt to shine a light on a bookkeeping system that distorts a nationwide transportation mission, a mission thousands of current and former employees fought to maintain. WASHINGTON, June 26, 2017 /PRNewswire-USNewswire/ -- Amtrak announced that it has named Richard Anderson, a 25-year veteran of the aviation industry, as its next president and chief executive officer. Individual salaries will vary depending on the job, department, and location, as well as the employee's level of education, certifications, and additional skills. Andrew & Jeffrey Hopefully they wouldnt be that STUPID to pull a stunt like that to use this as an opportunity to cut/eliminate the LD routes being as next fiscal years budget has not been finalized thereby incurring the wrath of Congress members whose districts would be impacted. They include: Reducing planned $2 billion in capital spending by $1 billion to focus only on state-of-good repair capital projects. His family, which also included five sisters, moved to Dallas and later Amarillo, Texas. that unpaid leave, uncompensated reduced hours and early retirement be taken Anyone can read what you share. Wolfs mandatory shutdown order for all businesses that arent life-sustaining, have kept people indoors and away from any transportation service. The relationship between the government and Amtrak is almost a pure definition of Fascism. This fails to take into account potential revenue lost from such cuts, and reduces passenger options. Now the return is deeply into the negative numbers, so much so that pensions might be forced into bankruptcy in the near future. On a Friday, March 20, when hundreds of thousands of workers As a subscriber, you have 10 gift articles to give each month. As America increasingly is sheltering in place, losing unprecedented numbers of jobs and retirement savings, fearful of COVID-19, and facing a stress level unfamiliar except to those who have endured war zones, Amtrak and its workforce face only unpleasant choices if the railroad and their jobs are to survive. If we end Amtrak, we end all trains. and informing the pubic and private sector on the benefits of freight Seize the window of opportunity caused by reduced traffic. In good times (i.e. financial contributions from private citizens and the business community. But that will be only a worst-case scenario because we dont want to furlough employees.. Amtraks accounting systems probably perform millions of transactions every week. Rail Group News offers news and analysis from Railway Age, IRJ and RT&S by email. Setting up a real accounting system would require a lot of work that many would rather not do. And it shows. of the crisis. It would also make a concerted effort to assign costs to the revenue-producing entities that incurred them. The bottom line: managements no-growth priorities are a reality, but Amtrak Performance Tracking is the culprit facilitating them. Capitol Hill Contributing Editor Frank N. Wilner is author of Amtrak: Past, Present, Future, available from Simmons-Boardman Books, 800-228-9670, www.transalert.com. Thats the question. 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