While SamTrans showed a sound financial standing last fiscal year — which ended in July — it’s seeing expenses starting to outpace revenue, a similar conundrum faced by several of the region’s transit agencies.
Fiscal year 2024 saw a surplus for the agency, which went toward reserves, capital investment funds and balancing this fiscal year’s budget. Much of the agency’s sources came from Measure A, a longtime sales tax, followed by the more recent Measure W sales tax — though the year-over-year increases seem to have stopped in 2023. Passenger fee revenue comprised less than 4% of total revenue, however, still higher than anticipated.
“Receipts of both district and Measure W increased materially over the past several years, but towards the end of [fiscal year 2024], we begin to see the first signs of a potential slowdown,” SamTrans Chief Financial Officer Kate Jordan Steiner said. “Overall, sources were favorable to budget, but this favorability is mainly driven by one-time receipts and is not expected to continue in [fiscal year] 2025.”
During the Board of Directors meeting Wednesday, Dec. 4, Steiner and Director Josh Powell expressed concern at the agency’s reliance on sales tax, which can be a volatile revenue source, given economic fluctuations and consumer spending habits.
“Sources are increasing modestly, by about $8 million or 2%. Operating expense increased approximately $56 million or 22%, driven by increases in labor, insurance claims and payments, professional and technical consulting services and materials,” Steiner said. “As with many transit agencies, our expenses are continuing to outpace our sources. We may be at an inflection point, and we’ll be redoubling our efforts to ensure efficiency and maintained financial stability.”
The board will also meet in January to discuss an amendment to the budget that will see an additional expense as a result of the recent contract agreement between the rail agency and the Amalgamated Transit Union Local 1574, which represents bus operators and mechanics. About one-third of the agency’s bus operators called in sick in September to signal their discontent with the contract negotiations. In addition to fixed wage adjustments, the new agreement provides a 4% increase during the first year, 3.5% in the second and third years and 4% in the final year.
The agency is also working with regional and state officials on a new long-term regional transit measure that would in large part help fund the area’s major transit operators, such as Caltrain and BART.
There are several leadership issues with SamTrans. Some/majority of people in the SamTrans leadership team seems to work against the agency:
- SamTrans did decide they need a second headquarters and another new office building. They also kept the old HQ building. Most of these 'capital investments' weren't really needed. If revenue and ridership is a concern you increase customer service first, now that money goes to interest payments.
- SamTrans promised in 2023 to increase service by installing bus shelters - customers are still waiting.
- SamTrans reduced ridership by reducing local service (named "Reimagination") and competing with Caltrain (regional service).
- at the same time several SamTrans leaders were instrumental in adding highway lanes - basically making sure transportation money goes to the competition.
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There are several leadership issues with SamTrans. Some/majority of people in the SamTrans leadership team seems to work against the agency:
- SamTrans did decide they need a second headquarters and another new office building. They also kept the old HQ building. Most of these 'capital investments' weren't really needed. If revenue and ridership is a concern you increase customer service first, now that money goes to interest payments.
- SamTrans promised in 2023 to increase service by installing bus shelters - customers are still waiting.
- SamTrans reduced ridership by reducing local service (named "Reimagination") and competing with Caltrain (regional service).
- at the same time several SamTrans leaders were instrumental in adding highway lanes - basically making sure transportation money goes to the competition.
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Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.