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Earlier this week, executive staff from Caltrain's three member agencies and the Metropolitan Transportation Commission agreed on a tentative financial plan that would “significantly” reduce the agency’s projected operating deficit in fiscal-year 2012 and allow more service than stipulated in an earlier proposal, according to Caltrain.

Caltrain staff now recommends the board authorize a 76-train weekday schedule beginning in July, a 60 percent increase in weekday train frequency vs. an earlier plan to cut service to a 48-train schedule, Caltrain officials said in a prepared statement.

In addition, the 76-train schedule would maintain the current span of early morning, midday and late evening weekday service hours; support service between Gilroy and San Francisco; and provide continued, but modified, weekend and special event service.

The modified plan also would suspend service at three stations vs. 16 as previously proposed.

"The 76-train proposal is a significant improvement over the worst-case scenario, and there is a lot to like in the new schedule," said Caltrain Executive Director Michael Scanlon. "It actually provides more service to some stations than they have now and it preserves the competitive travel times our customers have come to expect from Caltrain."

The plan would reduce Caltrain's net operating costs by $3.3 million and generate more than $2 million through increases in fares and parking fees. However, the proposal would address Caltrain's budget shortfalls only for 2012, Scanlon said.