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Indiana Department of Transportation

INDOT > About INDOT > Central Office > AMTRAK Hoosier State AMTRAK Hoosier State

The Federal government created Amtrak in the early 1970s and since that time has provided financial support for all services not covered with ticketed revenue. In 2008, Congress enacted the Passenger Rail Improvement and Investment Act (PRIIA), which transfers financial responsibility to the states for all routes of less than 750 miles effective Oct. 1, 2013.

In Indiana, the Hoosier State, which provides passenger rail service between Indianapolis and Chicago, falls under the auspices of Section 209 of PRIIA. Section 209 describes the methodology for establishing and allocating the operating and capital costs among the states and Amtrak for passenger rail service.

The Hoosier State operates four days per week. The Hoosier State corridor stretches 196 miles with stops in Indianapolis, Crawfordsville, Lafayette, Rensselaer and Dyer.

In Amtrak Fiscal Year 2012 (which runs from October through September), the Hoosier State had 36,669 riders – an average of 180 passengers per day. A ticket on the Hoosier State averaged $23 for a 5 hour, 5 minute one-way trip from Indianapolis to Chicago. The train costs $52 per mile in operating expenses, while generating only $10 per mile in revenue, based on ticket sales.

The estimate Amtrak provided Indiana in April for its share of the Section 209 service for the Hoosier State is $2.963 million annually. This amount includes $3.442 million in operating costs, plus $429,000 in annual equipment costs, offset by $907,000 in projected passenger revenue. This amount equals $80.08 in subsidy per passenger.

Cost Benefit Analysis

At the request of its partners, the Indiana Department of Transportation (INDOT) funded a cost benefit analysis that studied the impacts of discontinuing the service, keeping the status quo or improving the service. Improvement options include variations in frequencies and departure times. INDOT is working with consultant CDM Smith to ensure a draft study report is finished on schedule and posted to this web page for public review at the earliest opportunity.

Contract Negotiations

INDOT is supportive of a multi-modal strategy to address current and future surface transportation needs of the state of Indiana and Indiana taxpayers. In general, INDOT will satisfactorily maintain, support and operate our transportation infrastructure at the lowest cost to taxpayers. INDOT provides cost-effective transportation solutions to reduce traffic congestion, improve public safety, improve air quality, encourage economic development and encourage job growth.

INDOT announced on Sept. 24 it had begun contract negotiations with Amtrak over continuation of the Hoosier State passenger rail service. Governor Pence had authorized INDOT to begin negotiations with local partners the prior week.

INDOT has been having ongoing discussions with the communities that have stops along the Hoosier State passenger rail service. Mayors and other public officials expressed an interest in keeping the Hoosier State service operating and are making local funds available as part of the financing package.

Communities that contribute funding would also be involved in overseeing performance of the service on a recurring basis. Specific contributions among all parties will not be known until negotiations with Amtrak conclude

Amtrak's Beech Grove Shop

Amtrak’s largest repair facility is in Beech Grove, Ind. The Beech Grove Facility is on a 300 acre site with 1 million square feet of production space. It maintains and overhauls many types of equipment for Amtrak and other passenger rail services. At the end of 2011, Beech Grove employed over 550 Hoosiers and netted $4 million in revenue for Amtrak in Fiscal Year 2012. In 2012, Amtrak spent over $70 million dollars in Indiana: $49 million in employee wages, and $21 million in goods and services. According to Amtrak, this spending is largely a result of work generated out of Beech Grove.

Amtrak has told INDOT that the elimination of the Hoosier State service would have some operating impact on Amtrak’s Beech Grove shop facility, but Amtrak is reasonably confident that it could manage the workload in a manner that it would not result in any staffing reductions.

INDOT Revenue Sources

Every gallon of gasoline purchased in Indiana includes 18.4 cents in federal highway taxes, 18 cents in state transportation taxes and a 7 percent sales tax. Under this user fee model, those who do more driving will use more gas and are taxed in line with how much wear they put on the road network. State highway and sales taxes paid by road users at the gas pump generate $1.1 billion, a portion of which is used to fund INDOT operations, including highway maintenance, and to provide the required matching funds for federal highway projects. Within the appropriation limits set by Congress, every $1 in state funds can match $4 or more in federal funds, but federal highway funds cannot be used to operate a preexisting transportation service such as Amtrak's Hoosier State. In 2012, INDOT distributed $42.5 million to 66 transit systems from the Public Mass Transportation Fund, which is appropriated by the legislature from the State's General Fund. The 2014-2015 biennum budget as passed by the Indiana General Assembly authorizes, but does not require, INDOT to spend state funds to support Amtrak operation and equipment.

Contact Information

Abby Weingardt
Legislative Director
Indiana Department of Transportation
100 N. Senate Ave., IGCN 755
Indianapolis, IN 46204
317-234-8231
aweingardt@indot.in.gov

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