Caltrain Continues Efforts to Resolve Fiscal Crisis

By

March 11, 2011

Caltrain officials are encouraged by the annoucement Wednesday by Metropolitan Transportaton Commission Executive Director Steve Heminger that drastic custs in the Peninsula commuter rail service may be avoided in the coming fiscal year.

At Wednesday’s MTC meeting, Heminger presented a range of options he has offered for consideration by the chief executives of the three partners in the Peninsula Corridor Joint Powers Board – the San Mateo County Transit District, the Santa Clara Valley Transportation Authority and City and County of San Francisco.

Heminger also expressed optimism that an agreement could be worked out by the three partners and MTC that would assist in funding Caltrain in the short-term.

The Caltrain partners and MTC also are working closely with community coalitions to address the long-term funding of the rail system, which does not have a permanent, dedicated source of revenue.

Heminger indicated that cuts in the Caltrain service still will be necessary, but that it is possible to avoid the deep cuts presented by the agency in the worst-case scenario.

“We are encouraged by the statements from Mr. Heminger and we are guardedly optimistic that, working together, we can find a way to reduce the impact of the cuts Caltrain faces,” said Caltrain Executive Director Mike Scanlon.

The 48-train schedule has been described from the outset as the worst-case scenario – the level of service that Caltrain could afford, given its current budget projections for the coming year.

“We can’t budget money we don’t have. But we have always regarded these drastic cuts as the starting point. It is our continuing hope that working together with our partners and MTC that we can improve upon a difficult and unpleasant set of circumstances,” Scanlon said.

“Even as we work to resolve the immediate crisis, we can’t lose sight of the long-term financial issues facing Caltrain that must be solved to ensure the future of the rail system,” Scanlon said. “Without a permanent, dedicated source of funding, Caltrain’s future is very much in doubt.”

With the growing public interest in Caltrain’s fiscal crisis, the agency has published an informational page on its website, www.caltrain.com, that provides details and documents related to the crisis, including ridership details, current and past budgets and recent public presentations, an overview of the issues and a frequently-asked-questions section.

The information has been developed in response to questions raised by residents and customers, political leaders and key stakeholders.

Caltrain has just concluded a series of community meetings and a public hearing to address drastic cuts in service and possible fare increases necessitated by a looming $30 million budget deficit in the coming fiscal year.

Staff is currently reviewing hundreds of public comments and preparing a proposal that will be presented to the board for adoption at the upcoming April 7 meeting. At the same time, efforts are underway to find additional funding sources that would that would allow the commuter railroad to retain as much service as possible.

With the funds currently available Caltrain would be forced to operate 48 trains only during the weekly commute and close up to seven stations. A 25-cent increase to the base fare also is under consideration. Changes to service would take effect July 2.

Caltrain relies on contributions from its three partner agencies - the City and County of San Francisco, the San Mateo County Transit District and the Santa Clara Valley Transportation Authority – to balance its budget.

Last year, SamTrans was forced to reduce its annual contribution to Caltrain. As a result, four midday trains were eliminated, staffed ticket offices were closed and zone fares were increased 25 cents.

This year, SamTrans is expected to reduce its annual contribution to Caltrain to approximately $4.8 million, a reduction of approximately $10 million. If the other partners follow suit, the budget shortfall is expected to be $30 million.

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Caltrain is a commuter rail line operating between San Francisco and San Jose, with commute service to Gilroy. Average weekday ridership on the mix of 86 local, limited and express weekday trains is 40,000. Local, hourly service is provided on Saturdays and Sundays.

Caltrain is owned and operated by the Peninsula Corridor Joint Powers Board, a partnership of the City and County of San Francisco, the San Mateo County Transit District and the Santa Clara Valley Transportation Authority.