Jun 7, 2008

Caltrain to raise fares to cover fuel

By Will Oremus / Daily News Staff Writer

Caltrain will likely hike fares sometime in the next year as it tries to balance its budget.

The rail line's board of directors on Thursday approved a budget that includes an unspecified fare hike that, combined with increasing ridership, would boost ticket revenue by more than $3 million.

Officials said the small, midyear hike would likely be just about enough to cover the projected rise in fuel costs.

As in years past, Caltrain had trouble making ends meet in its budget for the 2009 fiscal year. The budget calls for carrying over extra revenues from the 2008 budget to cover an estimated $6 million structural gap.

Record ridership numbers have helped some, but the rail line is now approaching full capacity on rush-hour trains, meaning that its ticket revenues could soon hit a ceiling, explained board president Jim Hartnett.

"We do have real capacity concerns, but at least it's a better concern to have than the opposite," he said.

Caltrain is hoping a switch to electric trains in 2014 will help solve its long-term money problems. At this point, however, it doesn't have a plan for how to finance that overhaul.



E-mail Will Oremus at woremus@dailynewsgroup.com.