Caltrain finances improve but major gaps remain

“Over the last several fiscal years we have relied on one-time federal and state funding to balance our budgets since the COVID-19 pandemic,” Caltrain Director of Budgets Oscar Quintanilla said. “Since that time, we have received some very encouraging results from fiscal 2025 year end. Operating revenue … exceeded our budget by $8.8 million. Electrification and all our ridership growth efforts and return-to-office trends in the Bay Area have resulted in very encouraging ridership growth.”

Toward the end of last year, the rail agency was also allowed to start receiving compensation for its energy generation, estimated to be about $1 million annually.

With the new electrified service, the trains generate and subsequently export energy when braking, a process known as regenerative braking.

While farebox revenue does not make up the majority of its revenue, the board also approved fare increases every year throughout 2030.

“We anticipate about $39 million more in farebox revenue over a six-year period just because of that great response in ridership,” Quintanilla said.

Caltrain is also waiting to finalize details on a $60 million state loan, which would help the agency keep operations afloat while the success of Senate Bill 63 — a regional sales tax ballot measure to fund transit agencies — is to be determined.

“This is a pretty monumental issue in the short term,” said David Canepa, Caltrain board member and San Mateo County supervisor.

Quintanilla said that without the external funding, the agency will “have to make some drastic cuts.”