City Council
Staff Report
From: City Manager
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: Transportation
Meeting Date: September 28, 2026
Report #:2608-6628
TITLE
Caltrain Presentation of Framework for a ”No External Funding Scenario”. CEQA Status – Not a Project
EXECUTIVE SUMMARY
Caltrain staff will provide an overview of the adopted framework for addressing a scenario in which there is no external funding for its operations. This includes the guiding principles that would shape evaluation of potential service and operational changes and the process for developing contingency scenarios. The framework emphasizes maintaining safety, complying with regulatory requirements, minimizing operating and maintenance costs, maximizing ridership and revenue opportunities, and preserving equitable access to the rail system. Potential measures to be evaluated include changes to service frequency and span, station or segment closures, reductions in maintenance activities, staffing adjustments, and opportunities to generate additional revenue.
The presentation is intended to inform the Board of the planning process and the potential implications for Caltrain service should a sustainable external funding source not be secured."
BACKGROUND
Caltrain continues to face a structural operating funding gap beginning in Fiscal Year 2028 absent a new, ongoing external revenue source. While the agency has implemented significant cost-saving measures, seen significant ridership increases, increased non-fare revenues, and benefited from one-time bridge funding, current projections indicate that these actions alone are insufficient to sustain existing levels of service over the long term. As a result, the Caltrain Board of Directors adopted a framework in June 2026 to guide development of a "No External Funding Scenario" that will inform future budget and service planning should additional funding not materialize.
ENVIRONMENTAL REVIEW
This report is for informational purposes only with no action required by the Council and therefore is not a project subject to environmental review under the California Environmental Quality Act.
APPROVED BY: Ria Hutabarat Lo, Chief Transportation Official