Transit-focused sales tax measure advances

Caltrain projects an average annual deficit of $75 million starting in fiscal year 2027, and BART is averaging an ongoing structural deficit ranging from $350 million to $400 million starting in about a year.

SamTrans voted to opt the county into measure in August — at a half-cent tax rate — though several San Mateo County leaders, including Assemblymember Diane Papan, D-San Mateo, and Supervisor Jackie Speier, have been critical of the bill, mostly related to BART. Papan had voted against the bill in the legislature, in large part due to what she considered insufficient accountability provisions.

San Mateo County Supervisor Ray Mueller had also opposed the bill for several reasons, stating previously that it was a bad deal for the county, partially because it would increase residents’ sales tax rates even further, and the measure could pass even if the county voted against it. The measure doesn’t need a majority of support in each county, rather a combined majority of support across all counties.

During a previous Board of Supervisors meeting, Mueller had also shared concerns over the county’s tax revenue contribution compared to other counties, including San Francisco.

“It will be very interesting to see whether the taxpayers approve a tax measure that supersizes our county’s contribution to San Francisco, at a time when so many are concerned about the economy,” Mueller said in a statement.

County resident Adina Levin, a transit advocate who helps run Seamless Bay Area, supports the measure SB 63 and said she was wary of Papan’s initial accountability proposals for BART but said the final legislation landed in a good spot. She added that despite skepticism from some leaders, there are many other elected officials who are supportive.

“There are many local leaders who really understand how essential maintaining and improving the transit system is,” Levin said. “I think there will be plenty of local support and local leaders who are looking to convey that message.”

The funds are meant to close major operators’ deficits, including Caltrain and BART, with additional funds going to each individual county for other transit-related needs.

In a statement, Caltrain Executive Director Michelle Bouchard said the agency has made strides since it fully electrified and increased its service last year.

“To sustain these benefits, it is essential that Caltrain be funded,” Bouchard said.