San Carlos, Calif.’s San Mateo County Transit District (SamTrans) adopted a two-year budget for fiscal years 2026 and 2027 totaling more than $663 million, reinforcing its commitment to safe, reliable public transit service while proactively addressing a projected budget shortfall beginning in FY2027, the agency said.
What 2026/2027 has in Store for SamTrans
The FY2026 operating budget is set at $323.7 million and is fully balanced, enabling SamTrans to maintain essential bus service throughout San Mateo County.
The FY2027 operating budget, projected at $339.2 million, reflects a modest structural deficit. While the district can temporarily offset this gap using one-time surplus funds from prior years, officials noted that such reserves will be depleted after FY2027.
In response, SamTrans is launching a multi-faceted fiscal strategy for long-term sustainability. Key measures include the strategic use of reserves, continued cost containment, a comprehensive review of service levels and fare policies, and the pursuit of diversified funding sources.
“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 daily — and it positions us to meet the financial challenges ahead without compromising our commitment to safe, dependable service.”
SamTrans Passes Capital Budget Also
In addition to the operating budget, the agency’s board approved a combined $10.4 million capital budget over the two fiscal years. These funds are focused on maintaining the transit system in a state of good repair, improving safety and security, and addressing critical facility upgrades.
The board is expected to review a capital budget amendment in September, following the anticipated July adoption of the agency’s Capital Improvement Plan (CIP), said SamTrans officials.
The forthcoming amendment will support various strategic initiatives, including the continued transition to a zero-emission bus fleet, climate resilience measures, upgraded operator restrooms and bus stops, and key technology enhancements.
SamTrans officials said the agency continues highlighting the importance of fiscal planning in an environment where operational costs are rising faster than revenues, impacting transit agencies across the region. The district’s new budget underscores a commitment to forward-looking financial management while continuing to deliver vital mobility services to riders across the county.
A recent SamTrans blog post provides a detailed breakdown of the budget outlook and mitigation strategies, which provide insight into the challenges ahead and the agency’s roadmap for long-term fiscal health.
https://www.samtrans.com/blog/2025/06/plan-samtrans-balanced-financial-future
