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CED-81-93 1 (1981-04-09)

handle is hein.gao/gaobabdbh0001 and id is 1 raw text is: RELEASED COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION RKS'FRfCT70-?k kce t teMoneral by t Illc approval UNITED STATES GENERAL ACCOUNTING -FFICE WASHINGTON, D.C. 20548 April 9, 1981 B-202798 The Honorable James. J. Florio Chairman, Subcommittee on Commerce, Transportation, and Tourism Committee on Energy and Commerce House of Representatives The Honorable Bob Packwood, Chairman The Honorable Howard W. Cannon Ranking Minority Member Committee on Commerce, Science, and Transportation United States Senate 117954 Subject: Snalysis of Proposal to Reduce Amtrak's Federal Subsid7(CED-81-93) As you requested, we have briefly inquired into the National Railroad Passenger Corporation's (Amtrak's) esti- mate that it can provide intercity rail passenger service only in the Northeast corridor if the Federal subsidy is limited to $613 million in fiscal year 1982. LWe met with Amtrak officials to discuss how they esti- mated the service they could provide for $613 million. We also met with Federal Railroad Administration (FRA) officials_, to obtain their comments and analysis of Amtrak's estimate. We obtained some supporting documentation for Amtrak's esti- mates but did not have time to validate the methods or data used to calculate the estimates. Similarly, we obtained sup- porting documentation from FRA but were not able to thoroughly validate it in the time available. Some of the data used in making the estimate was taken from Amtrak's financial reporting systems.j Although we did not have time to trace data back through these systems, we have reviewed Amtrak's primary system in the past and found that it generally provided reliable data. 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 employ- ees who are likely to receive labor-protection payments in fiscal year 1982. Because of the supporting data's complexity. and our limited time to review Amtrak's assumptions and judg- ments, we are not in a position to comment on the estimate's overall reasonableness., (343752) S/6~q,/*l JT / _L-- 0

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