Caltrain Says Service Reductions Will Take Place Without Additional Funding

Photo courtesy of Caltrain

SAN CARLOS, Calif. –– Just months after the celebration of electric service on its Peninsula Line, Caltrain faces the fiscal cliff that has plagued most transit agencies this year. Elimination of weekend service and the end of half-hourly trains could be required to reduce budget shortfalls despite strong ridership recovery and high rider satisfaction.

During its November Board Meeting, Caltrain presented significant operational impacts and service cuts facing the agency if the proposed regional transit funding measure fails in November 2026 and no new external funding is available.

Bay Area transit agencies are dealing with budget shortfalls as post-pandemic travel patterns continue to significantly modify commuting behavior. Caltrain is doing three things to address budget issues: cuttiing costs, monetizing resources, and adapting service. The agency has implemented full-time-employee (FTE) freezes, crewing efficiencies, and reductions to professional services and other non-labor expenses. Caltrain’s press release said “Caltrain is working on monetizing available resources and diversifying revenue through a non-fare revenue strategy portfolio that includes expanded advertising, property leasing, selling fiber optic cable and Transit Oriented Development.” Caltrain also points out that the agency has expanded and monetized service, boosted train frequency beyond traditional commute hours, improved reliability, and enhanced the rider experience following electrification. In addition, the preliminary FY25 budget end results are showing positive impacts from the cost efficiencies and more revenue than budgeted.

Caltrain adds that “the focus on quality service is also paying off: ridership has risen 55% compared to September last year, with weekend service ridership doubling and four consecutive months of over one million riders. Rider satisfaction remains sky-high, with 91% of riders approving of the agency in a recent poll and results from a recent rider satisfaction rating are the highest they have ever been in the 27 years of surveying Caltrain riders.

The regional [funding] measure, Caltrain says, would establish a stable funding source for Caltrain and other Bay Area transit systems to maintain reliable, accessible service. However, “if the measure fails, Caltrain would be forced to take actions to reduce the structural funding gap, unless new external funding sources are identified.”

The following measures, not to be taken lightly, Caltrain says, would be unavoidable in the absence of new revenue. Potential impacts in the scenario include:

1. Cutting segments of service;
2. Closing more than one-third of stations;
3. No weekend service;
4. Reducing service to once an hour;
5. Ending operations by 9 p.m.

Caltrain Executive Director Michelle Bouchard said “Caltrain has made tremendous strides in improving service, expanding ridership, and earning the trust of our riders and communities. The regional funding solution would provide a sustainable funding source to continue those efforts, but should it fail to pass we will face a number of scenarios that will affect years of progress, affect tens of thousands of daily riders who depend on Caltrain, increase traffic, and adversely affect the Bay Area’s economy.”