Capitol Corridor Board Adopts $34.4M Plan as 2028 Funding Cliff Looms
Board of Directors • Capitol Corridor Joint Powers AuthorityApril 23, 2026
Locunity is an independent informational service and is not an official government page for this commission. All information is sourced from public footage and an analysis of official agendas with the aid of responsible, fact-checked AI. to report an error or omission.
The Capitol Corridor Joint Powers Authority board unanimously adopted a two-year business plan on April 23, 2026. The plan asks the state for $34.4M in FY27 and $36.1M in FY28, includes a modest fare increase, and arrives as staff warn that statewide rail funding may drop in FY28. Directors also approved a tougher Amtrak operating contract and heard that three trespassers were killed on the tracks in seven days.
- Business plan adopted 15-0, with a $34.4M FY27 request and 50% farebox recovery target
- Fares to rise about 3% in 2026 as staff brace for possible FY28 state funding drop
- Amtrak contract approved 15-0 with new penalties for slow station repairs
- Track safety spending shifts to operations to free up grant-matching dollars
- Alviso sea-level rise study weighs raising the rail line; ownership and funding unresolved
Board Locks In Two-Year Funding Request
The basics: The Annual Business Plan is the agency's funding request to CalSTA. It seeks $34.4M for FY27, including a $20.2M state operating subsidy for Amtrak operations, and $36.1M for FY28. The FY27 targets are 1.5 million riders, $32M in revenue, 50% farebox recovery, 90% on-time performance and 91% customer satisfaction.
Why it matters: The plan sets service levels, fares and safety spending for two years. It also positions the agency ahead of a possible state funding cliff.
Where things stand: Administration costs drew the sharpest scrutiny. Board Member Dickinson questioned the increase over the approved FY26 figure. "The 19% jump in the administration budget from FY26 and FY27 includes a 13% increase in labor costs," said Cat Relucio, Manager of Budget and Administration. She attributed the labor increase to inflation, bargaining agreements and step increases. Legal costs tied to the proposed Union Pacific merger also add to the total. A separate supplemental allocation falls from $9.3M to $2.1M because Wi-Fi and equipment work is rolling over.
"We are planning a minor fare increase in 2026," said Leo Sanchez, Deputy Managing Director. The increase is about 3%, roughly in line with inflation, with an additional 2% for multi-ride tickets. Revenue is running 7% above budget. Staff described the projections as conservative.
The funding cliff: The state has not enforced the 50% farebox target in recent years. Staff want to meet it anyway going into FY28. That year, diesel-sales-tax-funded support for the three state-supported rail authorities could fall from roughly $200M–$205M. "So in FY 2028, we theoretically go back to the $131 million," said Rob Padgett, Managing Director. Directors noted that 50% recovery far exceeds what most transit systems achieve. The agency peaked at 60% in 2019. Roland DeBrandt, a public commenter from San Jose, praised the plan's transparency. He urged every Bay Area agency to publish its actual, budgeted and target farebox recovery ratios.
The equipment problem: When Board Member Josh Chapman asked, "What keeps you up? What's on the horizon?" Padgett answered directly: "What keeps us up at night is equipment and the condition of equipment and our long-term plan for procurement." Caltrans controls overhaul and procurement. Three Caltrain locomotives leased by the agency are awaiting positive train control testing. Board Member Robert Raburn relayed rider complaints about a two-hour gap in westbound evening service. "We now run with 8 train sets, and we would be able to run our service a little better with a little better headways with 9," Padgett said.
The other side: Board Chair Bruce Houdesheldt challenged a proposed Salinas extension listed in the plan: "Can you explain to me why we're moving with an expansion or an extension when we haven't finished an expansion or an enhancement?" He was referring to the unfinished Sacramento-Roseville Third Track. Padgett said the extension appears at the state's request and would be vetted by the board. "We do not want to extend service even for one round trip a day, which is what is being discussed, unless we have sufficient capacity to do that," he said.
Decisions and stakeholder impacts: Board Member Lucas Frerichs moved adoption. The motion passed (For: 15, Against: 0, Absent: 0). Riders face higher fares. Staff gain a budget that funds rising labor costs. The fleet's future still depends on Caltrans.
What's next: Amtrak's final forecast is due in May, the final plan in June and the FY27 budget in September.
Track Safety Money Moves as Deaths Mount
Why it matters: Padgett reported three trespasser fatalities in the previous seven days. Track safety now runs through both the consent calendar and the business plan.
Where things stand: The consent calendar included a Union Pacific right-of-way safety and security maintenance agreement. It passed on a roll call with no dissent heard. "I'm really pleased that we're investing in right-of-way security, fences, and cleanups of unhoused people's belongings," said Board Member Sudhanshu Jain.
The business plan moves this program out of State Rail Assistance funding and into direct operations. That frees roughly $6M–$7M a year in flexible state dollars to match capital grants.
Houdesheldt pressed on the math: "Under consent we had a $720,000 budget item for security, but you mentioned $20 million in CRISI funding." CRISI is a federal rail safety grant. Sanchez said fencing needs will shrink once CRISI-funded construction begins. However, "cleanup efforts on the right-of-way are not applicable as part of the CRISI grant," he said.
Rider concerns: Kathy Broussard, a public commenter, said the Sacramento station does not open until 5 a.m. She noted that riders catching the 4:20 a.m. westbound train wait in the dark. She cited an Amtrak police case number, raised ADA access concerns and asked for more lighting and security guards. Board Member Dickinson asked whether staff work with the City of Sacramento. "We heard the comment and we're going to check on that. We will get back to you and report back to you on that issue," Padgett said.
What's next: Staff owe the board an answer on Sacramento station security.
Amtrak Contract Adds Teeth on Repairs
The basics: The annual operating agreement governs how Amtrak runs Capitol Corridor service and maintains stations.
Where things stand: Charles Franz, Manager of Transportation, said the contract incorporates the full 30-train service level, including the final Oakland round trip. It also adds the Caltrain-leased locomotives to the equipment roster and modernizes data-sharing and financial reconciliation timelines. On station upkeep, "we've added some additional assessments and penalties in these areas to ensure timely repairs," Franz said. The contract also softens language that had blocked expansion of Tap to Ride contactless payment.
The other side: Jared Mitchell, a public commenter, said six light fixtures near the Jack London station still have not been upgraded. He cited an April 1 mental health incident on the tracks. Raburn asked whether Amtrak faces fines for equipment problems. Staff said those fall under the TASI and San Joaquins contracts. The Amtrak agreement covers Thruway bus performance measures.
Decisions and stakeholder impacts: Dickinson moved and Raburn seconded. The agreement passed (For: 15, Against: 0, Absent: 0). The agency gains leverage over Amtrak-controlled station repairs. Riders gain a path to simpler fare payment.
Alviso Study Weighs Raising Rail Above Water
Why it matters: The single-track segment between Newark and Santa Clara carries Capitol Corridor, ACE, Amtrak's Starlight and freight on Union Pacific's Coast Subdivision. "This section is a bottleneck for any improvement, for any capacity increases that might be needed for increasing service to and from San Jose," said Shirley Chen, Principal Planner.
Where things stand: The two-year study ends in 2027. It is evaluating three concepts: a bridge on piers, an ecotone embankment and a bridge with a refugia island. Three alignments are also under study; Option 1 was dropped after stakeholder feedback. Tracks would rise to the top of the Army Corps of Engineers levee or slightly above it. Dickinson asked which design best supports wetlands. Staff said the answer depends on the refuge's goals.
The other side: Justin Penman, a public commenter, asked whether the agency would own the new right-of-way or simply pay to upgrade Union Pacific's infrastructure. "Ownership has not been discussed at this time," Chen said. DeBrandt called the study foundational for future Alviso shuttle service. He urged keeping a connection to the track near Google's expansion.
Decisions and stakeholder impacts: The board took no action. Staff said funding will require contributions from freight, passenger and ecological beneficiaries. That sets up negotiations among the railroad, transit agencies and habitat interests.
- Ridership: March ridership reached 120,000, up from 94,000 a year earlier. Weekend ridership now exceeds 2019 levels, but on-time performance still trails targets after equipment-related cancellations.
- Delay communications: Board Member Hernandez requested a study of how riders cope with two- to three-hour delays. Staff will return with a communications strategy, which Houdesheldt asked to include AI.
- World Cup prep: Staff aim to launch no-registration Tap to Ride before FIFA events at Levi's Stadium. Raburn requested Spanish-language materials.
- Legislation: Staff said SB 1136 from State Senator Blakespear is hard to implement as drafted and flagged a Union Pacific-Norfolk Southern merger resubmission. They added that federal rail reauthorization is unlikely by Sept. 30.
- Oakland encampments: Raburn reported that Oakland's new policy pre-identifies sensitive zones within 25 feet of active transit and Union Pacific rights-of-way.
Looking ahead: The board next meets June 17 at 10 a.m. at BART headquarters. The Caltrans rail chief is expected to present a fleet plan at that meeting.