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During a public hearing planned for Thursday, Caltrain staff will recommend that the Peninsula Corridor Joint Powers Board authorize continued service to Gilroy, Calif., on weekdays and current service levels on weekends along the main line between San Jose and San Francisco at least until July 2011.

The board has been considering suspending the two services to help close a $2.3 million budget deficit for the fiscal-year 2011.

“Based on estimates of the potential cost savings and input from our customers, we would like to preserve these two important services at least until the beginning of the next fiscal year,” said Caltrain Executive Director Michael Scanlon in a prepared statement.

Other proposals still under consideration include reducing weekday early morning, midday and/or late evening service; increasing base or zone fares by 25 cents; and increasing the cost of the Go Pass.