Transit leaders weigh regional versus county measure

According to recent presentations at SamTrans and San Mateo County Transportation Authority board meetings, Jessica Epstein, director of government at community affairs at SamTrans, noted that the county could put Measure A up for renewal next election — the tax expires in several years — and narrow the Caltrain gap, while also contributing its portion to BART. The measure could be renewed at the current half-cent rate, which generates about $120 million annually, or increase it to five-eighths. 

And while the Measure A funds would cover Caltrain’s critical operating needs, it would still come with some tradeoffs, said Epstein. Currently, about 80% of Measure A funds go to capital infrastructure projects, and if the county relied solely on the renewed measure, a higher percentage would have to be dedicated to operational costs, which is currently less than 20%. 

“If we were to renew at a half cent … more than half of Measure A would need to be dedicated to those agencies for operations funding, significantly reducing the amount of capital projects,” Epstein said. 

Passing the measure at a five-eighths cent, rather than half cent, would ease the burden, though Epstein noted that shuttles and paratransit costs are likely to increase in the coming years. 

“There is a way to fund the Caltrain operations through Measure A and not dramatically reduce capital if we go with that added eighth,” she said. 

Transit agencies would also be wise not to rely on federal or state funding to fill capital improvements gaps, she added. Legislators’ efforts to secure $2 billion for transit agencies statewide fell through, and the state is looking at a $12 billion deficit according to the most recent estimate. 

“The governor is looking at a combination of spending reductions, delays, fund shifts and withdrawals from the state rainy day fund,” Epstein said. “A major factor is that he’s looking to create a $1.54 billion fund for Cal Fire. That is coming at the expense of other categories, including some transportation ones that are relied on.”

Many electeds have been wary of joining a Bay Area-wide measure, in part due to lack of confidence in other operators, particularly BART. Anders Fung, TA board member and Millbrae mayor, said that if the county were to join, it would want to ensure stricter accountability measures than what is currently presented. While the county has an obligation to fund Caltrain, it’s not represented on the BART Board of Directors, meaning its contributions are lower. 

“We have no say in how BART operates, and if we were to agree to taxing ourselves into the BART system, there has to be accountability and governance as to how these resources get used in the future,” Fung said. 

According to Senate Bill 63, the legislation that would authorize the 2026 ballot measure, transit operators that receive funding from the Bay Area measure would have to undergo third party reviews, though elected officials have expressed desire for accountability measures with more explicit enforcement mechanisms. 

But unlike Measure A renewal, the Bay Area measure has the advantage of only needing a simple majority to pass — if all necessary signatures are gathered — since it is being pursued as a citizens’ initiative. The former requires a two-thirds voter threshold. 

“There have been other transportation agencies that have gone out with ballot initiatives for funding recently, and I don't think they were very successful because they weren’t able to hit that 66% threshold,” said David Canepa, SamTrans board member and president of the San Mateo County Board of Supervisors, during a SamTrans meeting June 4. 

While a sales tax seems the most likely path forward, there is also debate on whether that is the most appropriate type of revenue measure. Jackie Speier, board member and San Mateo County supervisor, who has criticized SB 63, said she would be more open to a measure that raises funds from business’ gross receipts rather than a sales tax, which impacts individuals. 

“A gross receipts tax makes a lot of sense because it's big business, and you have a lot of transit passengers who are going to those big businesses, so for them to pick up the tab versus those who are low income picking up the tab … makes more sense,” Speier said during a TA board meeting. “But if it was in fact a gross receipts tax then the Bay Area Council would oppose it and spend a lot of money to defeat it.”

San Mateo County has until Aug. 11 to decide whether to opt in to the regional measure. 

alyse@smdailyjournal.com

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