Caltrain, the public transportation system that runs from Gilroy
through the Peninsula to San Francisco, has been in the news
because it is facing a $30 million deficit in a $100 million
budget.
Caltrain, the public transportation system that runs from Gilroy through the Peninsula to San Francisco, has been in the news because it is facing a $30 million deficit in a $100 million budget. It has been receiving massive infusions of transportation subsidies for years, and now in hard times some of those funds are drying up. As well as looking for a temporary solution, Caltrain is making a hard pitch for a “permanent, dedicated revenue source.” In plain
English that means more taxes to subsidize their operation forever. Here is a unique idea: Why not let the riders pay for the difference instead?
Being short 30 cents on the dollar should be sobering, but public agencies are rarely deterred by the mere lack of funds; if the taxpayers have a dollar left in their pockets, the agencies feel obliged to go after it. Caltrain is curiously proud of its 47.4 percent farebox recovery rate. Sure, it beats the heck out of the more miserable 14.2 percent rate of the VTA where the taxpayers subsidize 85 cents on the dollar, but needing $52.6 million in public funds to run a $100 million operation is nothing to brag about in my world.
In an attempt to bolster political support, the Caltrain Office of Public Affairs Office released a presentation titled, “Caltrain Service Preparing for FY2012.” It compared Caltrain favorably with other public transportation systems. What the presentation really shows is that the entire concept is just a mess that bleeds money – mostly other people’s money.
According to the presentation, everything has gone right for Caltrain. Ridership and farebox recovery are up while administrative costs are down, which makes one wonder why they still need more than 50 percent in taxpayer subsidies when operating at maximum efficiency. What will happen when things are bad?
Caltrain claims a daily ridership of “nearly 40,000.” Every boarding is a rider and 74 percent are commuting. Looked at another way, 40,000 riders a day means 14.6 million trips a year and those riders have been getting a taxpayer subsidy of $7.20 for each round trip or $158 a month each for the average commuter. Now Caltrain wants the public to kick in another $2.5 million a month to make up for subsidies that are being diverted.
Since the overwhelming numbers of riders use Caltrain to commute and many of them are pulling down good money in Silicon Valley, why should a local employee of low income pay taxes to support the riders who have the best jobs in Northern California? If Caltrain can’t get the riders to start paying more of their own way when gas prices are topping $4 a gallon, it will never happen.
Caltrain is afraid that if it raises fares the ridership will drop significantly. That goes to show the sorry state of public transportation – you have to give it away to get people to use it and when you give it away, the costs just skyrocket.
In fiscal year 2010 the Peninsula Corridor Joint Powers Board than runs Caltrain took in a total of $46.4 million in operating revenue, but its operating expenses without depreciation were $88.5 million for an operating loss before depreciation and amortization of $42.1 million. The loss from depreciation and amortization was $57.4 million for a total operating loss of $99.5 million.
Or, put another way, the operating loss for Caltrain was about equal to the entire Caltrain budget. That’s no way to run a railroad.
Marty Richman is a Hollister resident.
