Warren County is looking to get out of the railroad business.

County leaders believe an active rail line is an economic engine for the area, but on the advice of their attorney, they would like to transfer its 40 miles of rail -- and the insurance liabilities that go with it -- to a public authority.

On Monday, officials from Warren and Saratoga counties, which are linked by the former CP Railway, are scheduled to meet with representatives of U.S. Rep. Kirsten Gillibrand's office to discuss forming an authority.

Warren County Attorney Paul Dusek said the railroad is growing with more traffic, at greater distances and higher speeds. The liability it presents to the county is also expanding, he said.

"It's in the best interest to get it out of county hands," Dusek said. "It's just good legal advice."

A Gillibrand aide said the congresswoman has an interest in mass transit for the region and in securing federal funding opportunities for the project.

"However, from our conversations with the governor's staff -- an authority is not likely," Rachel McEneny said in an e-mail to


A call to Gov. Eliot Spitzer's press office seeking comment Friday was not returned.

Transferring ownership to an authority, which would be a completely separate entity, would insulate the county from having responsibility for any railway accidents. The county already requires the railway's operator to have insurance and accept liability for incidents, for example, if someone is injured tripping over a rail. But the county can also be held responsible for anything beyond the operator's insurance, Dusek said.

Public authorities are created to support a public benefit. Their formation requires state approval. The state comptroller's Web site counts more than 700 public authorities in New York state.

Authorities, however, have a bad reputation, local officials said, and it's easy to see why.

The total debt among authorities in New York was more than $124 billion in 2005 and is growing, according to the Comptroller's Office.

The local railway runs from the train station in Saratoga Springs across the Sacandaga River in Hadley to North Creek.

Saratoga Economic Development Corp. Senior Vice President Jon "Jack" Kelley said all parties involved with the rail line in his county support an authority.

"It's a logical and sensible way to go about it," Kelley said. "We need to erase any boundary lines in their minds. This is one railroad, and it needs to operate like one."