A SamTrans bus is seen in San Mateo.
SamTrans is seeing a budget surplus so far this fiscal year, suggesting a notable difference in ridership recovery for bus systems compared to other major transit operators.
According to a staff presentation during the board meeting Wednesday, June 5, the projected $29 million surplus by the end of this fiscal year is largely a result of higher-than-anticipated operating revenue, driven by investment income and Caltrain-related payments.
“This favorability will be needed for the zero-emissions electric fleet charging infrastructure, headquarters modernization, the collective bargaining agreements … and other professional services,” Chief Financial Officer Kate Jordan Steiner said, adding that the healthy fiscal position is partially due to one-time payments that the agency cannot rely on consistently.
As of the fiscal year’s third quarter, expenses were about 10% below budget, partially a result of a reduction in shuttle services. Budget amendments for the upcoming fiscal year may also be made over the next several months, likely consisting of fuel, labor and capital improvement-related costs.
One of the largest capital improvement projects will be SamTrans’ new headquarters, which was finalized at the end of last year when the agency signed a lease-to-purchase agreement at The Gateway at Millbrae. It will initially lease the property and has the option to purchase it after 30 months for $126 million.
The budget report demonstrates the wide gap between the financial health of the bus versus rail services, such as Caltrain and BART. Both have struggled to recover pre-pandemic ridership levels, which helps explain BART’s $300 million annual deficit and Caltrain facing a projected operating annual deficit of $100 million beginning around 2033. A recent push by state senators Scott Wiener, D-San Francisco, and Aisha Wahab, D-Hayward, was made to put a potential billion-dollar transportation bond measure on the 2026 ballot to help close such gaps. But due to pushback from several agencies, which surfaced concerns over potential consolidation and revenue sharing, the effort has been paused.
Performance data confirms that San Mateo County residents are opting to ride SamTrans buses at similar levels prior to 2020, and it’s mostly the city-to-Peninsula commutes — or vice versa — that have been hit hardest, largely a result of the pandemic-induced spike in remote work. According to a staff report, fixed-route bus service ridership is currently at 99% of pre-pandemic ridership as of April, and overall ridership has been steadily increasing by about 22% year over year.
(650) 344-5200 ext. 102
(650) 344-5200 ext. 102
Daily Journal staff
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(3) comments
So there’s a $29 million surplus and SamTrans is still moving forward with blowing all of it, plus nearly another $100 million, on purchasing a new HQ? What was wrong with the old HQ? This goes to show you that it is possible to achieve a surplus. Of course this also shows you any surplus will be flushed away on another money pit. Folks, remember this surplus the next time there’s a tax measure or assessment or fee or whatever looking to line SamTrans’ pockets. We know they don’t need it.
It's the same thing Newsom did three years ago when he had a huge surplus, he spent most of it and then padded the pockets of unions and his donors. Democrats NEVER learn and when things run dry, which they will, the democrats will simply ask for more revenue in the form of taxation.
Great job on the surplus. Keep it up and don't blow the money. I'm not so concerned about an HQ that should be amortized over decades. What's great to realize is that busses are more efficient than trains and light rail for moving people in our county. Perhaps some of this money can go into new routes and marketing to show those of us who've not ridden a bus for years what the experience is like.
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