Editorial: Mid-Michigan profits from Amtrak deal

From The Lansing State Journal

The state and passenger-rail service Amtrak are negotiating on the next round of subsidies for two rail lines in Michigan, including the Blue Water service that stops in East Lansing.

Using state funds to pay Amtrak for rail service may seem a luxury, especially in these harsh budget times. It really isn’t, though.

“Amtrak trains have set new ridership records for the fiscal year ending Sept. 30 and collected $24.5 million in ticket revenue, the Michigan Department of Transportation reported last month. “The Blue Water train on the Port Huron/East Lansing-Chicago route saw an impressive 18.7 percent increase, with 157,709 passengers … in FY10. Ticket revenue was up by 15.3 percent to $4.741,560.”

For all intents and purposes, the Blue Water service is a link between Greater Lansing and Chicago. The East Lansing station is about twice as busy as the next busiest Michigan station on the line (Flint). It is mid-Michigan’s gateway to the nation’s passenger rail grid – a grid that should be getting more attractive in a few years.

In October, Michigan was told it would receive $160 million in federal funds for rail investment. The focus will be on improving tracks and the speed of service between Detroit and Chicago.

Greater Lansing’s participation in any improvement in rail service is tied directly to the state subsidies, which will be about $8 million for the two lines this year.

MDOT expects to have a new agreement with Amtrak by the end of the calendar year.

Then there are the results of last Tuesday’s elections, which are being widely interpreted in Michigan as a call for a major retrenchment in state spending. It’s easy to see how the Amtrak funds could get caught up in the new mood.

Fortunately, Gov.-elect Rick Snyder has said again and again that he is looking to recast state programs based on the value they offer, the results they provide. Using that metric, the Amtrak service through East Lansing should hold up quite well.

Meanwhile, the city of East Lansing is trying to make an investment of its own by building a “multi-modal” hub for buses and trains at the tiny and uninviting Amtrak station on Harrison Road.

Of course, this redevelopment, projected at $20 million in spending, would be a project without a rationale should Amtrak stop its Blue Water service.

This is another issue where mid-Michigan’s Capital Caucus of legislators can take the lead, explaining to the incoming Snyder administration and to new legislators that there is, indeed, a good deal to be had with Amtrak.

An LSJ editorial

Source: http://www.lansingstatejournal.com/apps/pbcs.dll/article?AID=/201011070400/OPINION01/11070511