At SamTrans, we know that public transportation doesn’t just connect people to places — it connects communities to opportunities. That’s why we’re looking ahead and making thoughtful, responsible decisions now to ensure a strong and sustainable future moving forward.
Starting in fiscal year 2027 — which runs from July 1, 2026 to June 30, 2027 — SamTrans is projected to enter a modest structural deficit. That’s still more than a year away, giving us the time and flexibility to plan, as we aim to delay or avert the deficit. Like transit agencies throughout the Bay Area and across the country, we’re experiencing rising costs that are outpacing revenue growth. But here’s the good news: because we’re starting early, we have a wide range of tools available to address the issue in a balanced, forward-thinking way. And compared to other agencies, our financial gap is relatively small.
As we look for ways to close the future budget gap, fare policy is one option under review. SamTrans hasn’t raised fares in nearly a decade, and we currently have the lowest fare in the Bay Area. Even with a modest increase, we’d remain among the most affordable transit options in the region. Our commitment to equity is strong, and that’s why we offer fare support programs for riders with financial challenges, ensuring access to transit remains a priority no matter what changes are made.
We know that protecting service is essential. That’s why the San Mateo County Transit District (SamTrans) Board of Directors is focused on budget-balancing strategies that minimize any negative impact on our riders. We’re taking a measured approach to reduce expenses — one that avoids layoffs and preserves service reliability. For example, the upcoming fiscal year 2026 budget includes no new positions and reduces spending in non-essential areas like travel. If further measures become necessary, we’d first consider a temporary pause in hiring for administrative roles, allowing us to maintain a workforce that keeps the system running.
Some might wonder whether our upcoming move to a new headquarters building is driving these financial challenges. It’s not. Costs associated with maintaining and repairing the existing headquarters are rapidly increasing as the building is past its useful life. The new headquarter is a one-time capital investment, funded through a mix of one-time surplus funds and financing. What we’re facing is a structural operating issue: when ongoing expenses begin to outpace recurring revenues.
We’re also carefully evaluating new opportunities for regional funding. The potential tax measure being considered under SB 63 could help support SamTrans if county transportation leaders decide to join the measure, and agreement is reached to also fund the bus system. Alongside other San Mateo County leaders, we’re weighing if, and how, joining the regional funding strategy would be right for our community.
While there may be room to consider adjusting the timeline for our transition to a zero-emission fleet, any cost savings from a delay may not provide the relief some expect. We’ve already aligned new vehicle purchases with the scheduled retirement of older diesel models, which keeps our capital planning efficient and cost-effective. And we’ve already secured the external funding needed to make the purchase. Furthermore, the fleet transition will allow us to continue our work toward meeting California’s clean fleet requirement. Thanks to grants, tax incentives, and other external funding sources, we’re able to invest in cleaner air without overburdening our local resources for this project.
No one likes hearing about deficits, but we hope our riders and community members feel confident in how we’re approaching this challenge: with transparency, responsibility, ahead of schedule, and anchored by commitment to our riders and a firm belief that every dollar should support better service, cleaner transit, and a strong local economy.
SamTrans’ future looks bright — and we’re making smart financial moves today to keep heading in the right direction.