Amtrak 2012 Annual Report Download - page 12

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Operating Budget
Amtrak’ s FY2012 operating budget represents a significant change from previous years. As noted earlier,
the recent trend of decreasing federal appropriations for capital investment has necessitated the use of
revenue to continue critical capital projects. The Strategic Plan places increased emphasis on improving
fiscal results while also improving operations and services. Accordingly, management has taken bold
action to reduce Amtrak’ s operating costs for FY2012 and beyond. The actions taken are planned to
reduce Amtrak’ s FY2012 net operating loss compared to appropriation by $120.7 million. The savings
are primarily from reduced non-agreement headcount, reduced advertising, and reductions in usage of
professional services including outside legal counsel and consultants. The details of these reductions are
contained in Table 8 under the Expenses section of this document.
As previously stated, the savings will allow Amtrak to supplement federal capital appropriations with
revenue funds in order to complete critical investments. In compliance with accounting principles, and
for presentation purposes for this document, the capital programs are shown to exceed federal funding and
the operations are shown to be favorable to federal funding due to the application of operating revenue to
fund capital programs. As shown, Amtrak has an operating budget that is approved to require $345.3
million for operating expenditures not including the Office of the Inspector General. The FY2012
federal appropriation for operating needs is $466 million.
FY2012 Budget Post Board 1.20.12.doc 12 of 79