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AMTRAK PLANS CUTS TO ELIMINATE DEFICIT

Amtrak is facing two more rounds of the disappearing railroad blues, announcing new service cuts in June and September in an effort to eliminate the passenger system's deficit.

The Broadway Limited to Chicago will be limited to New York-Pittsburgh service; Houston residents who want to ride the Texas Eagle north will have to start with a bus ride to Dallas; and the train they call the City of New Orleans will have service cut from seven to five days a week.Amtrak President Thomas M. Downs said Thursday that without the cutbacks the railroad would have gone $240 million in the red this year and could have been bankrupt by midsummer.

If the savings from reducing service and staff go as planned, Amtrak will have a balanced budget this year and next, he said.

Amtrak has been warned to expect no increase in federal subsidies. The system receives nearly $1 billion from the Federal Railroad Administration annually, but cuts are more likely than increases in the future.