Caltrain compromise shouldn’t leave county in the lurch

The SMCTD has never been made close to whole for its investment. In fact, San Francisco and Santa Clara County, in conjunction with the Metropolitan Transportation Commission, cajoled the SMCTD into an agreement slightly over a decade ago whereby the SMCTD gave up almost $40 million of owed interest. The SMCTD was still supposed to receive certain amounts pursuant to that agreement, but, 11 years later, roughly $20 million remains unpaid. Importantly, the agreement stated the SMCTD would manage Caltrain for as long as it desired.

SMCTD’s management has been exemplary. The baby bullet, service to Giants games, ever-growing ridership, good on-time performance, carrying the most bicycles of any commuter rail in the United States, and offering a comfortable, safe, and clean ride are just a few of the high points. The JPB continues to be a high functioning board that helped create the groundbreaking Business Plan, penned an affordable housing policy that requires 30% below-market units in any development with minimum density, and is hard at work to ensure an equitable mode of transit. And of course, the electrification project is well underway.

Despite its successes, Caltrain has had no reliable dedicated funding source other than contributions from its member agencies and fares. The pandemic has decimated ridership resulting in almost no farebox revenue causing Caltrain to face an existential crisis. Thankfully, state Sen. Jerry Hill’s SB 797 authorized a tri-county, eighth-cent sales tax which can deliver lifeline revenue.

The “compromise” resolution passed with an 8-1 vote (Director Stone being the sole “nay” vote.) Notably, it does not affect the right of the SMCTD to be the managing agency of Caltrain for as long as it wants. San Mateo County gave up many millions of dollars in exchange for that right and that management has led to Caltrain’s success. If there is a proposal that involves the SMCTD giving up its right to be the managing agency, it must be contingent upon the SMCTD being fully compensated for its investments in Caltrain over the last 30 years.

The resolution also imposes a new condition on the JPB: it constrains the board from spending 60% of the $100 million the tax measure would produce annually unless there is a two-thirds vote of the JPB to release it (currently, the JBP agreement requires only a simple majority.) Some politicians have shown a willingness to hold the tax measure hostage until their demands were met. We caution them from attempting to use this supermajority requirement to hold the tax proceeds hostage the same way. If the measure passes, the vote will be to save Caltrain and create revenue used to reach the service vision laid out in the Business Plan; not to place funds in a virtual lockbox barring a supermajority vote to release them. Likewise, the funds should not be used to make the SMCTD whole for its investment in the rail line as SB 797 clearly states the revenue is to be used for Caltrain operating and capital expenses. Any attempt to hold the funds hostage or use them for other purposes will viewed as playing politics and undermine voter trust in future measures and the agency. We should not let the riders and the region down.

Karyl Matsumoto is the chair of the SMCTD Board, Charles Stone is a member of the SMCTD Board and Peninsula Corridor Joint Powers Board and Rose Guilbault is a member of the SMCTD Board and former member of the Peninsula Corridor Joint Powers Board. Views are their own.