Alabama Governor Fails to Secure Funding for Amtrak Subsidy
MOBILE, Ala. – In a disappointing turn of events for rail service advocates, Alabama Governor Kay Ivey’s proposed state budget for next year does not include any funds to support the Amtrak passenger rail service along the Gulf Coast. This omission comes despite earlier expectations that state funding would be available.
City Council members had reluctantly agreed to cover the subsidy for Amtrak service, driven partly by reassurances from Ivey’s office. However, the budget, recently passed by the Alabama House of Representatives, contains no specific allocations for this subsidy, only $60,000 in dues to the Southern Rail Commission.
State Senate budget committee chairman Greg Albritton attributed the funding shortfall to escalating healthcare costs associated with Medicaid, stating, “The huge increase that Medicaid has had has threw us for a loop.” He indicated that the budget has struggled to accommodate rising expenses, with the Medicaid budget increasing significantly even as enrollment declines.
The Southern Rail Commission is set to launch the new “Amtrak Mardi Gras Service” this summer, featuring routes between New Orleans and Mobile with stops in Mississippi. However, the service relies heavily on government subsidies, a responsibility typically assumed by state governments. In a rare move, the city of Mobile has pledged $3.048 million over three years to help finance the service but only after securing financial contributions from various partners, including $1 million from the Alabama Port Authority.
Mayor Sandy Stimpson expressed confidence in the city’s commitment, emphasizing that the long-term viability of the subsidy will depend on the service’s popularity. Meanwhile, Councilman Ben Reynolds remains hopeful about future state funding, expressing confidence in the governor’s commitment to support Mobile’s transportation initiatives. Ivey’s office has been less forthcoming, sparking apprehension among local leaders.
As the Senate prepares for a crucial vote on the budget, the future of Amtrak service in the region remains uncertain.
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