Caltrain Board Approves Service Reductions/Parking Increase & Capital Budget

By

July 2, 2009

The Caltrain Board of Directors today voted to implement fee and service changes to close a $2.6 million budget gap for Fiscal Year 2010.

Beginning

Sept. 1 Aug. 31, eight midday trains will be eliminated between the hours of 10 a.m. and 2 p.m., so trains will operate hourly. This change will save the agency approximately $1.93 million.

Also on

Sept. 1 Aug. 31, parking fees will increase from $2 a day and $20 a month to $3 a day and $30 a month, generating an additional $420,000.

Lastly, the price of the Go Pass will increase from $112.75 per person to $140 beginning Aug. 1. The employer-sponsored annual pass offers unlimited rides on Caltrain through all zones, seven days a week for one low annual cost. The pass is purchased by employers for all of their regular, full-time employees. This 24 percent increase is expected to generate an additional $263,000 in revenue.

The service cuts and fee increases are the agency’s latest effort to close its budget deficit. “It is painful to have to cut service,” said Executive Director Mike Scanlon. “In the past we have been able to close the budget gap with one-time funds, but those days are over. We have run out of options.”

The agency’s ongoing structural deficit has been exacerbated by the economic downturn. State Transit Assistance, an important source of transit funds, has been eliminated for the next four years. This puts an additional strain on Caltrain’s partners – the City and County of San Francisco, San Mateo County Transit District and the Santa Clara Valley Transportation Authority – who each rely on STA funds for their transit operations. Unlike in previous years, the partner agencies will not be able to increase their annual contribution.

In addition, the deepening recession and job losses are beginning to negatively impact Caltrain ridership and revenues. March showed the first monthly ridership decline in many years, a trend that has continued in April and May.

The preliminary operating budget presented to the board in May reflected a $10.1 million deficit. The public was asked to comment on a series of proposals that included raising fares, eliminating weekend trains and service to Gilroy, as well as reducing midday service. Before the June board meeting, the deficit was reduced to $2.7 million by making the following adjustments:

• Decrease in administrative expenses
• Decrease in fare revenue
• Grant for maintenance
• Savings from proposed fuel hedging program
• Savings from Fiscal Year 2009

Over the last year, as the fiscal noose tightened around transit agencies across the country, Caltrain has aggressively looked for ways to balance its budget.

Midyear, staff scrutinized the operating budget line by line, successfully cutting or deferring $750,000 in expenses. On Jan. 1, Caltrain implemented a 25-cent increase to the base fare, with multi-ride tickets and passes adjusted accordingly, which will generate approximately $943,500 in additional revenue. Currently, the agency is undergoing an extensive reorganization; layoffs are anticipated this fall.

Capital Budget
At the same meeting, the board adopted the Fiscal Year 2010 Capital Budget. The $82.3 million budget focuses on the continuation of a number of projects to bring the railroad up to a “state of good repair.” These include:

• Renovation of the San Jose Diridon Station
• Continue design to replace two railroad bridges in San Francisco and two in Santa Clara County
• Upgrade of the signals and communications systems
• Replacement and upgrade to the existing train dispatching software system
• Replacement of major components of the Caltrain rolling stock to ensure the passenger cars and locomotives will operate reliably through the end of their duty cycles
• Final design for San Bruno Grade Separation Project

Funds for the capital budget include federal, state, and other grant funding. In addition, the three partners each contributed $5.5 million in local matching funds to leverage various grant funds.

The budget does not yet include funds for electrification or for a number of projects included in the Caltrain 2025 program. Requests for these projects will be submitted for high-speed rail funding consideration under the American Recovery and Reinvestment Act. It is expected that award announcements will be made some time later this summer or early fall.