Caltrain board weighs two taxes

The proposed eighth-cent sales tax, on the other hand, would generate $108 million a year solely for Caltrain’s operating and capital needs.

Caltrain board members are concerned that even if FASTER Bay Area makes it onto the November ballot — lawmakers in Sacramento are currently weighing whether to do so — it may not sufficiently benefit Caltrain.

“I’m much more skeptical about FASTER than I am about our own sales tax and I’m wanting us to be the masters of our own destiny,” said Vice Chair Dev Davis, also a San Jose councilwoman, at a meeting Thursday.

Board Member Jeanne Bruins, also a Los Altos councilwoman, noted FASTER Bay Area “involves so many other people and so much sausage making.”

Bruins also noted regional “mega measures” such as FASTER Bay Area can result in “presents” — her analogy for capital investments — but not the “batteries” or funding needed to cover the annual cost of operations.

“If we end up with presents, but we don’t end up with the batteries to operate those wonderful new toys we’re in trouble,” she said. “It’s not just a dollar amount, it’s how the dollars are allowed to be spent.”

Davis shared that perspective.

“I know those who are working on putting FASTER forward have said they want operations to be included. I just don’t want it to be a lopsided equation for us,” she said, adding that Caltrain first needs a dedicated funding source to cover its annual operating needs before the railroad’s expansion plans can be realized.

Caltrain’s electrification project is set for completion in 2022 and with it comes the potential for increased service levels and ridership. While the capital costs of the project are funded, the railroad does not currently have enough money to cover the annual operating costs of the expanded service.

Without a new, dedicated funding source, the railroad is expected to be in the red by next year with a deficit projected to reach $30 million by 2023. 

“It’s not a sustainable situation to just depend on the revenues we have today if we’re going to increase service and realize the potential of electrification on this line,” said Caltrain Chief Communications Officer Seamus Murphy.

Furthermore, Caltrain recently adopted an ambitious plan to significantly expand service beyond electrification levels by 2040 and more than $20 billion is needed to realize that vision. The eighth-cent sales tax would not generate nearly enough money to fund that vision, but it would cover the cost of the expanded service associated with electrification.

Board Member Cindy Chavez, also a Santa Clara County supervisor, said both sales tax proposals need work and noted that for the eighth-cent sales tax, Santa Clara would be contributing more than twice as much as the other member counties because of the population difference. Santa Clara County would generate $56.6 million a year while San Francisco and San Mateo counties would each be contributing roughly $25 million.

“I do think it’s going to be hard to go to our voters and talk about the implications of $56 million a year with not enough say so over how that money is spent,” she said. “In my mind, there’s a lot that needs to be remedied irrespective of whether or not ultimately we go with an eighth-cent sales tax or FASTER Bay Area succeeds.”  

Board Member Charles Stone, also a Belmont councilman and supporter of both FASTER and the eighth-cent sales tax proposals, expressed concerns about meeting the impending deadlines for getting the measures on the November ballot.

“I’m becoming very concerned about timing with both measures,” he said. “FASTER Bay Area despite its nomenclature does not appear to be moving very fast. Everyone I ask in Sacramento goes “I don’t know” and it’s March. Before we know it it’ll be May.”

The deadline for placing the eighth-cent sales tax measures on the ballot is in August. Before then, the proposal must secure two-thirds approval from the Caltrain board as well as boards of supervisors of the three member counties and their transit agencies.

The board’s discussion occurred just days after three sales tax measures for transportation in Contra Costa, Sonoma and Marin counties were defeated.

zachary@smdailyjournal.com

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