SamTrans projects $13 million operating surplus for current fiscal year

While the higher surplus is welcomed news, “a portion of the favorable sources and uses is not expected to be recurring or sustainable,” according to a recent staff report.

The budget results for fiscal year 2026 won’t be finalized for at least another month or two, but third quarter performance showed signs of optimism. 

“Key factors influenced our third quarter results. On the revenue side, higher investment earnings and stronger than expected sales tax receipts contributed positively,” Interim Chief Financial Officer Ladi Millard-Olmeda said during a recent SamTrans board of directors meeting. “On the expense side, labor costs increased due to higher operating staffing levels and overtime requirements as well as increased maintenance activity.” 

Diesel prices are also driving higher operating costs. 

“As a result, we are currently projected to be over $1 million over budget on fuel costs,” Millard-Olmeda added during the presentation. 

Wages and benefit costs were $1.1 million higher than expected, due to higher staffing needs, overtime and maintenance “associated with zero-emission bus training and aging fleet conditions,” the report said. 

The projections show a strong fiscal posture for the agency, especially in relation to rail operators, such as Caltrain and BART, which have $75 million and $376 million average annual deficits, respectively, starting in the near future. Bay Area transit agencies’ growing shortfalls are the main driver of the upcoming regional sales tax measure, Connect Bay Area, which would impose a 14-year sales tax raise money to close the financial gaps. SamTrans would also receive some funding and has been working on a plan to disburse the funds to other agencies and cities throughout the county. 

In the meantime, some transit leaders have still cautioned SamTrans to stay financially prudent. 

“I would not be planning on 2% growth in sales tax,” said Board Member Jeff Gee, also a Redwood City councilmember, during the meeting. “A conservative approach is appropriate because we can’t spend money we don’t have.”