Money for nothing

Why is this being suggested now?

BART, like many transit agencies, is facing serious financial issues due to a collapse in ridership during the pandemic which has persisted. As recently reported, BART projects operating deficits upwards of $300 million annually and growing after short term support funding runs out.

BART’s ridership has increased slowly to about 42% of pre-pandemic levels but has stalled as remote work persists and San Francisco struggles with millions of square feet of empty office space.

BART’s sluggish recovery is also caused in part by the reputational damage of perceived safety, reliability and cleanliness concerns. A steady stream of negative news stories are likely dissuading potential riders.

Caltrain ridership has recovered at about the same pace, hovering around 40% of pre-pandemic levels. Ridership for both agencies is critical to fund operations and Caltrain also faces financial headwinds as a result of the ridership loss. But there are key differences.

Caltrain is undertaking a $2.5 billion electrification project yielding more frequent and nimble service starting late next year. Moreover, Caltrain does not suffer from the reputational issues that BART does and, while the contraction in the tech sector is impacting both transit agencies, business development along the Caltrain corridor is expanding. At present, there are millions of square feet of biotech and pharmaceutical space opening, under development or in the pipeline along the corridor creating thousands of potential new riders.

So what is the benefit of a merger?

Very little. Caltrain is already taking advantage of shared services. Staffing for the agency (management, human resources, finances, marketing, etc.) is already provided by SamTrans, which is the designated managing agency by agreement between the member counties (San Francisco, San Mateo and Santa Clara). Caltrain, itself, has no employees and the actual day-to-day running of the trains is managed by another third-party operator.

But the risks of a potential merger with BART are significant.

It’s no secret that BART has undertaken some questionable expansion projects with massive budget overruns, cannot seem to contain costs on a regular basis, has a board unwilling or unable to make difficult decisions, and has long resisted the oversight of an independent inspector general installed to address these very issues to the point that the first appointed inspector general retired early citing the lack of cooperation and transparency of BART management.

A recent example of BART’s operational challenges was raised by one of its own directors raising a red flag that BART exceeded its overtime budget by $20 million and its total budgeted labor costs by another $50 million this past year.

To become a part of the BART district, San Mateo County voters would likely be asked to approve a half-cent sales tax to support BART just as the residents of the current three member counties do. But why would San Mateo County voters do this?

For San Mateo County riders and taxpayers, a merger with BART will not add additional service. There will be no extensions beyond Millbrae; Caltrain already provides service on the Peninsula.

Moreover, San Mateo County taxpayers already pay BART in various ways including 2% of the Measure A half-cent sales tax reauthorized by San Mateo County voters in 2008 and Caltrain annually contributes to the costs for maintenance of the Millbrae intermodal station. Plus, SamTrans is still paying off debt incurred for the four-station extension to Millbrae and SFO that it was promised it would never have to pay in the first place.

What BART really wants is the potential for another half-cent sales tax and to cannibalize San Mateo County’s share of state funding that could otherwise go to Caltrain. BART would be able to apply for funds with little guarantee that those funds would benefit Caltrain.

Some will say a merged agency could better coordinate and make travel more seamless. But that’s happening already and the constraints of both systems will not change with a merger.

A merger with BART is a train to nowhere that will leave Caltrain part of a large, questionably managed agency headquartered across the Bay with no clear benefit to San Mateo County.

A merger with BART is simply money for nothing.

Jerry Hill is a former California senator and assemblymember; San Mateo County supervisor; San Mateo mayor; SamTrans Board chair, and Caltrain Joint Powers Board chair. Charles Stone is the former Belmont mayor; SamTrans Board chair, and Caltrain Joint Powers Board vice chair.