SamTrans weighs worst-case scenarios

“Approximately 70% of our sources are comprised of sales tax, and we assume less than 3% increase in sales tax revenue over the lifetime of the projection,” Chief Financial Officer Kate Jordan Steiner said.  

The agency’s Board of Directors met Wednesday, April 9, to contemplate service reductions, fare increases and hiring freezes as potential cost-cutting measures to get back on track. Staff also offered options that could lower training, travel expenses and administrative costs. But even a combination of those may only make a modest dent in the shortfall. Board members such as David Canepa, also president of the San Mateo County Board of Supervisors, and Rico Medina, also mayor of San Bruno, said it was also important to consider layoffs or furloughs as a worst-case scenario.

“I think we should be talking about furloughs — worst case scenario —  or the elimination of positions,” Canepa said. “Not to scare the organization, but it should be there.” 

Reducing costs — especially via service cuts or fare increases — while continuing to increase ridership has proved a difficult balance to maintain. Most board members were amenable to fare increases, and Board Member Josh Powell said he may be in favor of eliminating some of the Clipper card discounts if they are not boosting ridership. And Board Member Marie Chuang, also a member of the Hillsborough City Council, said she’s open to re-evaluating some of the bus routes, but only with the intention to optimize them, not simply to cut costs.

“We can't just take away things in the name of making up for the shortfall, because people’s perception does matter,” Chuang said. “They are going to look at the cuts and then not be interested in participating, because it’s a cost on them.” 

The fiscal challenges are not unique to SamTrans, and in fact, the agency has a more favorable position than other major transit operators, such as Caltrain and BART. The Metropolitan Transportation Commission, the region’s transit financing agency, is looking at a Bay Area transit ballot measure, though if it passes, much of the funding would be prioritized for rail operators and agencies facing steeper shortfalls. However, given its proactive approach, SamTrans should also try to address some of its needs by way of regional measure, Board Member Brooks Esser said. 

“I don't want to be having this meeting eight years from now, when we’re in the position of some of our fellow agencies,” Esser said. “Addressing it now and making sure that our needs are reflected in whatever regional measure is certainly something we should consider.”  

Specific deficit figures will be available by the board meeting May 7.