Clyde:
The following is swiped from a Q&A the Friends put together during the 1999-2000 lobbying, when the outlook for the railroad was in doubt (and updated a little last winter). The entire Q&A is available online by using the link below.
JAC
Q: What financial support do the states provide the railroad?
In the five fiscal years prior to March, 2000, the States of New Mexico and Colorado each provided a total of $228,106 for capital improvements, for a total of $456,212, or 28% of the $1,633,120 of capital projects undertaken by the commission during that time.
Q: Where has the remaining 72% of the capital funding come from?
The greatest share, $672,919 or 41%, came from rent payments received by the commission from the operator out of revenues realized from ticket sales and related sources. The commission also obtained grants totaling $503,989, or 31%, primarily from the Federal Government, as well as from foundations and Colorado gaming funds.
Q. How are the costs of operating the railroad funded?
Under the lease agreement with the Commission, the operator is responsible for meeting the costs of operating and maintaining the railroad. According to the financial reports filed by two different operators from 1995 through 1998, these costs averaged $2,292,000 a year. This figure includes an average of $204,000 paid annually by the operator to the commission in the form of rent to fund capital improvements and the commission's operating expenses.
Q. Does the railroad pay for itself?
To a remarkable extent, yes. For instance, from 1995 to 1998 the $284,710 of total capital appropriations from New Mexico and Colorado accounted for only 2.8% of the railroad’s total expenditures over that four-year period. The remaining 97.2% came from ticket sales, concessions, charter trains, and grants.
Q. What is the economic impact of the railroad on the region?
As a major employer in Rio Arriba County, New Mexico, and as a National Historic Site that draws over 80,000 visitors annually, the operation of the railroad is the central reason for the economic revival of the Chama community. For instance, over 50% of the approximately 250 businesses in the Chama Valley and their employees are directly tied to the railroad and tourist trade. The railroad is a unique historic resource for New Mexicans and a major source of pride and economic benefit to the Chama community.
Operation of the railroad brings unquestioned economic benefit, a recognized critical need in Rio Arriba County, where unemployment runs over 10%. According to the 1990 census, Rio Arriba per capita income was $7,859, and more than 25% of the population lives below the poverty line. Based upon commission estimates, railroad patrons and the railroad spent over $6.5 million in 1998, resulting in an economic benefit of over $45 million (using a turnover rate of 7 times) to the region, making the railroad a major generator of economic health.