SamTrans Board adopts FY26 and FY27 budgets
The San Mateo County Transit District (SamTrans) Board of Directors adopted a two-year budget for fiscal years (FY) 2026 and 2027 that invests in safe, reliable public transportation for the community while taking early steps to manage a projected budget shortfall beginning in FY27.
SamTrans notes the approved $323.7 million operating budget for FY26 is balanced and allows the agency to continue providing essential transit service across San Mateo County, Calif., while the FY27 operating budget is projected at $339.2 million, but the agency anticipates another year with a modest structural deficit due to the long-term regional trend of expense increases outpacing revenue. The agency says it can cover the deficit with one-time prior year surplus; however, after FY27, such one-time sources will be exhausted.
The agency notes it is taking proactive steps to address the projected funding gap through responsible fiscal management, including the strategic use of reserves; cost containment and reductions, assessments of both service and fares and continued pursuit of diversified revenue streams.
“We’re managing today’s transit needs while preparing for tomorrow’s fiscal realities,” said SamTrans Board Chair Jeff Gee. “This budget supports the workers, families and students who rely on SamTrans every day, and it positions us to meet the financial challenges ahead without compromising our commitment to safe, dependable service.”
According to SamTrans, the two-year funding approval also included capital budgets that totaled $10.4 million and focused on core priorities such as maintaining assets in a state of good repair, enhancing safety and security and addressing critical facility improvements.
In September, the SamTrans Board will consider a capital budget amendment, following the anticipated adoption of the capital improvement plan in July. SamTrans notes the second phase is expected to include additional investments in the next phase of zero-emission bus transition, climate resilience initiatives, bus stops and operator restrooms improvements and technology upgrades.
