Caltrain seems poised to balance its budget this coming fiscal year due to a one-time state loan, but officials warned leaders that serious service cuts are still imminent without longer term funding.
A recent board discussion builds on previous reports about how Caltrain could eventually cut all passenger service, or at minimum close more than one-third of stations and greatly reduce service, if it doesn’t close its projected $75 million annual deficit expected to begin next July, the beginning of fiscal year 2028.
The recent state loan, nearly $50 million, allows Caltrain to balance its operating budget through fiscal year 2027, which starts this July. The loan buys the agency more time, but Caltrain officials reiterated that the potentially balanced budget will be a result of one-time funds and doesn’t address its gaping structural deficits.
“We need a new ongoing external funding source as a structural necessity to maintain our operations,” Melissa Jones, deputy director for Policy Development, said during a recent Caltrain board meeting. “These one-time sources that have really bridged our finances will be exhausted in [fiscal year 2027.]”
Without external funding, staff said Caltrain could sustain reduced service for one to two years before a complete shutdown would become necessary.
Recommended for you
The external funding could come from a likely sales tax ballot measure going before Bay Area voters in four counties, including San Mateo, an initiative known as Connect Bay Area, which would impose a 14-year sales tax. If passed, the funds would close the current deficits for major agencies, such as Caltrain, BART and MUNI, as well as provide counties with discretionary funds for local needs.
BART has also presented a dire scenario if it doesn’t receive funding to shore up its projected $376 million annual budget deficit, which would involve significant station closures.
Caltrain and BART would have to undergo an independent third-party cost efficiency review as a condition of receiving new state funding. Board members raised a few suggestions to boost revenue or cut costs, ranging from trying to expand Go-Pass use to increasing leasing and housing development opportunities.
“Being candid, being honest and being credible … is important. It’s not to scare. It is to have an honest conversation at the table of the reality of what is before us,” said Board Member Rico Medina, also the mayor of San Bruno.
In June, the board will adopt the budget and adopt the contingency plan should the ballot measure fail.
Folks, don’t be swayed by the fear mongering coming from Caltrain. They’re attempting to scare you so you’ll shell out more of your hard-earned money to pay for ever increasing union salaries, pensions, and benefits. Remember, these folks have been operating at 100% capacity with ridership at 50% or less. Where has fiscal management been all this time? Call their bluff and vote NO!
Terrence - I knew darn well you would provide some common sense. Don’t forget, all the people who pay taxes are on the hook for the CalTrans unions Rolls Royce pension plan which is $265 BILLION UNDERFUNDED. That’s $6,000 per California resident and it ain’t getting better. Vote NO NO NO three times if you can like some democrats . It’s time for some fiscal sanity. BTW - why don’t they simply cut the schedule? Because it would mean laying off union workers who contribute to the union, and democrat politicians .
Keep the discussion civilized. Absolutely NO
personal attacks or insults directed toward writers, nor others who
make comments. Keep it clean. Please avoid obscene, vulgar, lewd,
racist or sexually-oriented language. Don't threaten. Threats of harming another
person will not be tolerated. Be truthful. Don't knowingly lie about anyone
or anything. Be proactive. Use the 'Report' link on
each comment to let us know of abusive posts. PLEASE TURN OFF YOUR CAPS LOCK. Anyone violating these rules will be issued a
warning. After the warning, comment privileges can be
revoked.
Please purchase a Premium Subscription to continue reading.
To continue, please log in, or sign up for a new account.
We offer one free story view per month. If you register for an account, you will get two additional story views. After those three total views, we ask that you support us with a subscription.
A subscription to our digital content is so much more than just access to our valuable content. It means you’re helping to support a local community institution that has, from its very start, supported the betterment of our society. Thank you very much!
(2) comments
Folks, don’t be swayed by the fear mongering coming from Caltrain. They’re attempting to scare you so you’ll shell out more of your hard-earned money to pay for ever increasing union salaries, pensions, and benefits. Remember, these folks have been operating at 100% capacity with ridership at 50% or less. Where has fiscal management been all this time? Call their bluff and vote NO!
Terrence - I knew darn well you would provide some common sense. Don’t forget, all the people who pay taxes are on the hook for the CalTrans unions Rolls Royce pension plan which is $265 BILLION UNDERFUNDED. That’s $6,000 per California resident and it ain’t getting better. Vote NO NO NO three times if you can like some democrats . It’s time for some fiscal sanity. BTW - why don’t they simply cut the schedule? Because it would mean laying off union workers who contribute to the union, and democrat politicians .
Welcome to the discussion.
Log In
Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.