Caltrain Sets Public Hearing: Possible Fare Increase, Service Reductions

By

July 2, 2010

The Caltrain Board of Directors today set a public hearing for Sept. 2 to receive comment on possible fare increases and service reductions.

The service reductions under consideration include elimination of the Gilroy extension service, elimination of weekend service and elimination of some early morning, mid-day and late evening weekday trains.

The proposed fare increases include either a 25-cent increase to the base fare or a 25-cent increase to the zone fare, with corresponding changes to the Day Pass, Monthly Pass and 8-ride Ticket.

Service changes and fare increases, if approved, would take effect in January 2011.

Community meetings will be held in mid-August to give the public additional opportunity to review proposals, ask questions and provide comment. The time and location of the meetings, which will be held in each of the three counties that make up Caltrain’s service area, have yet to be determined.

At the June Board meeting, staff presented a preliminary operating budget with a $12.5 million deficit. Since then, savings from the previous year, decreases in operating costs and an increase in state funds have helped reduce the deficit to $2.3 million. The budget includes $650,000 in savings from closing the staffed ticket offices in San Jose and San Francisco in October. Having exhausted all other options, the Board adopted a $99.9 million operating budget that requires fare increases and service reductions.

The railroad relies on annual contributions from its three partner agencies - the San Francisco Municipal Transportation Agency, the San Mateo County Transit District and the Santa Clara Valley Transportation Authority – for about 39 percent of its operating budget. The elimination of State Transit Assistance funds has forced the three transit agencies to reduce their annual contribution to Caltrain.

Caltrain also continues to experience a decrease in fare revenues, which make up another 40 percent of the operating budget. This is attributed to the ongoing recession and persistent unemployment.

For the past several years, Caltrain has balanced its budget using one-time funding sources that are now depleted. Last fiscal year, the agency was forced to increase parking fees and fares and eliminate eight midday trains which resulted in associated staff reductions. In Fiscal Year 2009, Caltrain reduced its operating costs by $6 million. The budget for Fiscal Year 2008 included $3.6 million in savings from the rail operating contract and fuel savings and an $800,000 increase in fare revenue.

The public hearing will be held at the September Caltrain Board meeting at 10 a.m. at 1250 San Carlos Ave. in San Carlos. The fare increase and services change recommendations will be presented to the board for adoption in October.

In addition the public hearing and the community meetings, comments can be sent by e-mail to changes@caltrain.com; regular mail to Joint Powers Board Secretary, Caltrain, P.O. Box 3006, San Carlos, CA 94070; or telephoned to 1.800.660.4287 (TDD for hearing impaired only 650.508.6448).

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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 90 local, limited and express weekday trains is 38,000. 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 San Francisco Municipal Transportation Agency, the San Mateo County Transit District and the Santa Clara Valley Transportation Authority.

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