SamTrans saw a $2 million surplus this quarter, which is on pace with the fiscal year’s budget projections and paints a healthier financial picture than some of the region’s major operators and rail agencies, such as Caltrain and BART.
The county’s bus operator had anticipated a $12 million budget deficit this fiscal year, which began in July, but was able to use its $22 million surplus from last year to close the financial gap.
While SamTrans has been able to recover the vast majority of its pre-pandemic ridership, higher expenditures have led to anticipated budget shortfalls. According to a report from June, the 10% reduction in expenses was largely due to shuttle service cuts, and revenue was higher largely due to investment income and Caltrain-related payments, which will not have the same level of reliability in future years.
This fiscal year’s first quarter surplus was a welcome surprise compared with the originally projected $3 million first-quarter deficit, and reports from the beginning of the year typically show weaker reports.
“Sources essentially performed on budget, and just as a reminder, in the beginning of the fiscal year, there are often a lot of timing delays which we expect to be resolved by year’s end,” said Chief Financial Officer Kate Jordan Steiner.
The quarter saw about $87 million in revenue and about $85 million in expenditures, though Steiner said the “growth in expenses is outpacing the growth in sources” compared to last fiscal year.
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.
The operator is also in a monthslong battle with the Amalgamated Transit Union Local 1574 — which includes bus operators and maintenance workers. The agency originally offered operators an 18% pay raise over three years, a 22% raise for maintenance and utility workers and 11% for customer service representatives. But many union members, some of whom spoke during public comment during the board meeting Nov. 6, have said it’s still much lower than other neighboring agencies, and issues with unpaid work breaks for first-year employees have also not been addressed.
(650) 344-5200 ext. 102
(650) 344-5200 ext. 102
Daily Journal staff
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(1) comment
It is apparent that more money for SamTrans was never needed. Remember this in the near and far future when SamTrans or other transit organizations attempt to take more hard-earned money from your wallets. Caltrain and BART could learn from SamTrans and begin cutting routes and service. Why operate at 100% capacity if there’s only 50% or less ridership? Note what’s missing in this cost cutting? Axing personnel – likely the biggest if not all of the growth in expenses outpacing the growth in sources.
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