Revenue for the $73.5 million operating budget is up 4.2 percent, due in large part to a projected increase in sales tax revenue.

Included in the expenditures for the upcoming year are $11.7 million for local street and highway improvements and $6.4 million for upgrades to Caltrain. The South Linden Avenue and San Bruno grade separation projects, currently in the design phase, will receive $15 million in funding.

Redi-Wheels and RediCoast, which provide paratransit services for people with disabilities, will receive $834,000. A special allocation of $1.5 million approved by the board in May also is included in the budget. This is a distribution of the money over and above the $25 million principal in the paratransit trust fund.

The budget also includes $3.5 million to build new boarding platforms at the Atherton and Broadway Caltrain stations as well as $275,000 for weekday shuttle service. Weekday train service to the two stations has been suspended.

The Transportation Authority is responsible for implementing the Measure A half-cent sales tax funds for transportation improvements in San Mateo County. Last year, San Mateo County voters authorized extending the measure, which was due to expire in 2008, until 2033.