SamTrans leadership approved increases to its capital budgets for fiscal years 2026 and 2027, adding almost $47 million to fund infrastructure upgrades for its zero-emission buses, facility repairs, safety management platforms and artificial intelligence initiatives.
The board unanimously approved the increase by nearly $14 million for fiscal year 2026, which ends in June, going from $18.6 million to $32.2 million. The next fiscal year, starting in July, would have a budget increase going from from $5.7 million to $38.9 million.
"This capital budget focuses on maintaining and improving the district's core assets," said Ladi Millard-Olmeda, director of budgets and financial analysis, during the board meeting April 1. "Key priorities include the state of good repair for vehicles and facilities, and investments in zero emission bus infrastructure, bus stops and facilities, along with technology modernization."
The increase will help fund about 18 projects — all part of the original 10-year capital improvement plan adopted last July — and includes higher investments in zero-emission bus technology, including hydrogen fueling infrastructure and electrical upgrades for electric bus battery charging.
The funds would also go toward bus stop improvements, operator restrooms and a new safety management system, among other initiatives and upgrades. The agency is also budgeting $700,000 over both fiscal years toward its artificial intelligence initiative.
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"The funding sources for this amendment reflects a mix of federal, state and discretionary and other funds totaling $23.3 million," Millard-Olmeda said. "District funds is the largest share at 50%."
While capital improvements are separate from the operating budget, SamTrans is working through other fiscal challenges, trying to shore up a projected structural deficit, which has been exacerbated by lower sales tax revenue and an unfavorable economy.
The agency’s projected structural shortfall is not as severe as other major transit operators, such as BART and Caltrain, however, it still has had to take cost-cutting measures to keep its budget in check.
Other board members echoed concern about deferred maintenance at the agency's aging fixed facilities, which have historically received less investment attention than the bus fleet.
"We do a great job on our rolling assets," said Board Member Jeff Gee, also a member of the Redwood City Council. "We have a long way to go on our fixed assets."
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