Friday morning, December 30th, media outlets across Texas were informed by a Marketing Manager that the Texas State Railroad – the official railroad of Texas and a true Texas Treasure – had been shut down and most of its employees terminated.
Twelve hours later, the official word came from the Texas State Railroad Authority Board, negating the former employee’s announcement. 
This was their response:
The Texas State Railroad Authority Board was notified this morning by Iowa Pacific, the current operator of the Texas State Railroad, of the employee reduction at the railroad.  Historically, the Texas State Railroad has not scheduled runs in the months of January or February for the purpose of maintenance and work on the rail cars, the rights of way and other tasks to ensure that the schedule that is posted is able to be met.
Iowa Pacific has indicated that they will continue to operate in 2017.  The Texas State Railroad Authority Board is committed to making sure that those separated employees are given the opportunity to return to work and that the Texas State Railroad is fully operational for the full schedule that is supposed to resume in March of 2017.  The Authority Board understands the hard work everyone has put in to make the Texas State Railroad the Official railroad of Texas and is devastated by the layoffs.
About the Texas State Railroad Authority Board: In 2007, management of the Texas State Railroad was privatized with a contract with American Heritage Railways. In conjunction with this, the state formed the Texas State Railroad Authority, to oversee the railroad and to ensure that this Texas treasure continues to function as it always has.
The Texas State Railroad Authority Board is comprised of members from both Rusk and Palestine, where the two depots are located. The members of this board are passionate about the railroad, and not only its continued existence, but that it also evolves with the times and grow and flourish. In August of 2012, American Heritage Railways sold its operating contract of the Texas State Railroad to Iowa Pacific Holdings. In addition to continuing passenger operations, Iowa Pacific Holdings re-opened the track to the main line in Palestine in November 2012.
The state’s decision to privatize the railroad and to create a quasi-governmental governing body in the form of the Texas State Railroad Authority Board was the turning point in preserving the state treasure.