Caltrain winning bid for aid from sales tax
Caltrain, hemorrhaging money during the pandemic, on Tuesday was winning a bid for a temporary lifeline and longterm financial future with the support of voters in three counties for a sales tax raise.
Measure RR, which requires approval from twothirds of voters, was ahead with partial returns counted, with 71% voting in favor and 29% against in San Francisco, San Mateo and Santa Clara counties.
San Francisco reported 74.1% yes votes to 25.9% no votes, San Mateo 72.9% to 27.2%, and Santa Clara 68.4% to 31.6%.
The measure would allow a 1/ 8cent sales tax increase in those counties and raise an estimated $ 108 million annually for 30 years.
The system, running since Abraham Lincoln was president, was facing an existential crisis as revenue dropped along with ridership during the pandemic.
“Measure RR in the short term would provide a bridge for Caltrain to survive during the COVID crisis,” said David Pine, a San Mateo County supervisor who is the chairman of the Peninsula Corridor Joint Powers Board that runs Caltrain. “In the longer term, the intent of the tax, which has been sought after for years, is the desire to have a stable, dedicated source of revenue for Caltrain for many years.”
The commuter train system, which lost up to 95% of its ridership during shelterinplace directives, depends on fares for about 70% of its revenue, leading to an $ 18.5 million budget shortfall this year.
The sales tax averts a shutdown, funds electrification of the train line and provides dedicated funding for the next three decades. It also bankrolls an equity plan to provide fares at halfprice to lowincome riders as Caltrain tries to reshape its elitist image. Critics have pointed out that a majority of its riders make more than $ 100,000 a year. Its supporters argue saving the system keeps cars off the road and reduces greenhousegas emissions.
“Without Measure RR, Caltrain will likely be unable to continue operations. When the economy and jobs recovery, Caltrain will be needed more than ever,” Pine said.
Local leaders and transportation authorities from the three counties approved the measure to get it on the ballot, although they debated over who should govern the train system and how, which will lead to some changes after the election.
The Committee to Save Caltrain raised $ 2.3 million as of two weeks before the election from a mix of unions, advocacy groups, companies and individuals, with $ 100,000 from Google and $ 300,000 from Facebook. Pine gave a personal loan of $ 500,000 on Oct. 19 to fund TV ads while pledged donations came in, he said. The campaign’s budget is $ 2.5 million.
Opponents of the measure, who had little funding, criticized raising taxes during a recession, especially with a regressive sales tax equally imposed across all incomes, meaning it puts a disproportionate burden on the poor. Critics also questioned why taxpayers needed to fund public transportation when the pandemic has perhaps irrevocably changed the need to commute for most office work.