What to Know About the Fiscal Cliff
Caltrain will soon be entering a new era for our organization and our riders with the completion of the Electrification Project in 2024. This transformational project is modernizing our 150-year-old corridor to significantly improve service for riders and create an even more sustainable transit system. Riders can expect a faster, more reliable experience.
While we are excited about what the future has in store, it is no secret that transit agencies in the region are still recovering from the impacts of the pandemic. Caltrain is heavily reliant upon the farebox revenue we receive from ridership, and while ridership has increased recently, we still need to find additional revenue sources in the coming years to ensure the financial health of the system.
Caltrain has been fortunate to have the support of our State and Federal elected officials, who have stepped up to provide significant funding in recent years for Caltrain. This included $410 million to complete the Electrification project. Thanks largely to this financial support, we have managed to avoid having to make significant cuts to service or other investments in operations and capital improvements.
The reality is though that Caltrain is facing a projected deficit of $33 million in Fiscal Year (FY) 2026 and $58 million in 2027. This so-called “fiscal cliff” will require Caltrain to make difficult decisions, and conversations about how to approach this challenge are ongoing. This Thursday, we will be hosting a financial workshop to kick-off a series of discussions. These conversations will inform the Caltrain Board and help shape decisions regarding the operating deficit, state of good repair, and capital projects. This will lead up to adoption of the budget in June.
Through this process, Caltrain will continue to look at ways to improve our system and continue to provide a world class experience for riders. Today, Caltrain enjoys the highest customer satisfaction rating of any of the large transit systems in the Bay Area. That will only improve with the launch of electrified service in 2024, which will offer many new reasons for new and past riders to return.
We will continue to work with our partners and elected officials to advocate for sustainable funding for public transportation at the State and regional levels. Together we can address the challenges we face.