Caltrain inks operating, capital budgets for FY2026

Caltrain’s board recently approved a nearly $260 million operating budget and $34.8 million capital budget for fiscal-year 2026, which begins July 1 and ends June 30, 2026. 

The California railroad identified $10.9 million in cost reductions for operations compared to earlier financial projections by reducing both labor and non-labor expenses in the budget. The agency can achieve those reductions while maintaining current service levels, Caltrain officials said in a press release. 

The balanced operating budget will continue to fund Caltrain’s popular electric service, with trains operating every 15 minutes at most stations during peak hours and every half hour at all other times, including on weekends, they said. 

Meanwhile, the FY2026 capital focuses on state-of-good-repair work and safety upgrades, including grade crossing safety improvements such as artificial intelligence technologies, solar markers and delineator posts. 

Looking ahead, Caltrain is projecting an average annual deficit of nearly $75 million between FY2027 and FY2035.  

“Without an injection of funding from a regional sales tax measure or other external sources, [we] will need to explore drastic service reductions, station closures and administrative cost reductions,” Caltrain officials said. 

The operational funding shortfall could be exacerbated by proposed cuts in Gov. Gavin Newsom's revised budget, which would further reduce Caltrain’s operating funding by $10.4 million in FY2026, they added. 

To address the funding deficit, the agency is reducing internal costs, exploring new revenue strategies and working closely with regional and state partners to secure external funding. Caltrain’s base ticket fare will increase by 25 cents on July 1.