On Board With… Henry Li, General Manager/CEO, Sacramento Regional Transit District
Henry Li is a transformational and dynamic CEO with a tenure of over two decades of extraordinary business acumen driving strategic innovation, service excellence, safety and security ingenuity, inclusive and equitable workforce development, and fiscal renewal within some of the most highly-visible, and dynamic multimodal transportation systems in North America.
He has been recognized as a model of success for the transit industry receiving both the “2021 Outstanding Public Transportation System Achievement Award” and the “2019 Outstanding Public Transportation Manager of the Year Award” from the American Public Transportation Association. These prestigious and highly competitive national awards are the highest honors given to select organizations and only one CEO in the public transportation industry each year.
A well-respected industry leader, Henry is credited with historic turnarounds and establishing many firsts in the transportation industry throughout the years. He has earned a reputation as a national change agent, relentlessly pursuing excellence for the advancement of public transportation, even during a global pandemic. Since becoming General Manager/CEO in July 2016, Henry has been credited for the solid, rapid, and comprehensive transformation of SacRT.
He lives in Sacramento with his wife and enjoys hiking, biking and trying new cuisines.
Transit California: 
What challenges has the Sacramento Regional Transit District (SacRT) been facing during the pandemic?
Henry Li:
During the first eight months of FY 2020, prior to COVID-19, we were on a positive trajectory with ridership up 15 percent on fixed-route bus, 7 percent on light rail and 127 percent growth in student ridership in February 2020, almost unheard of during a time when ridership trends nationwide were flat or declining.
We were able to achieve what seemed unattainable with a small but mighty team of nearly 1,300 employees, including a small management team; over one third of light rail trains that are operating at the end of useful life; and no additional local funding (only a 1/6 of a penny sales tax) since 2004 – all while maintaining a balanced budget each year with year-end budget savings, receiving an elevated credit rating and building our once depleted reserves – from nearly zero to over $30 million.
However, we have seen how quickly things can change in just a matter of months. I cannot emphasize enough the influence the COVID-19 crisis has had on SacRT and our community. After the Shelter-in-Place orders went in effect, we experienced sustained ridership drops of approximately 60 percent.
Transit California:
What did SacRT do during those first months of the pandemic when ridership was so low?
Henry Li:
The COVID-19 pandemic provided an opportunity for our industry to show the vital role public transit plays in keeping our communities moving, bringing healthcare professionals to the frontlines, delivering groceries and medicine to at-risk populations, and connecting essential workers to their places of work. In fact, I have seen some of the best teamwork and innovative ideas coming out of SacRT and many public transit agencies across the nation during this crisis, quickly adapting to a pandemic world.
We didn’t let the pandemic slow us down, we seized the opportunity to refocus, launching a new public intercity express bus service, called the Causeway Connection, connecting the cities of Davis and Sacramento using zero emission electric vehicles; transitioned the operation of our ADA Paratransit and non-ADA service back in-house; expanded our SmaRT Ride on-demand microtransit service to additional zones; turned underutilized buses into Wi-Fi hotspots to help close the digital divide across the Sacramento region; and implemented a region-wide effort to help “drive the vote” by offering free rides to everyone traveling to and from a voting center.
We also assisted with food deliveries to seniors and other vulnerable populations, and provided shuttle service to and from homeless warming centers during the winter months, and cooling centers in the summer months.
Overall, SacRT has still provided over 11 million passenger trips since the pandemic began, underscoring the essential lifeline services that SacRT provides to the Sacramento community.
Transit California:
What steps is SacRT taking now to bring back riders or enhance the system?
Henry Li:
SacRT continues to be an essential lifeline to our community. Additional federal funding received has helped prevent devastating permanent reductions to essential service in the Sacramento region. In order to rebuild ridership, we know the public is looking for us to provide assurances our system is safe to use. We continue to perform enhanced cleaning protocols and follow CDC guidance for best practices in preventing the spread of COVID-19.
As our economy continues to reopen, we are ready to meet the needs of our diverse communities. This includes forging partnerships and creative ways to entice users to take transit. Recently, our sister city to the south of Sacramento, Elk Grove, annexed its transit services into the SacRT district. As part of the annexation, we have added a SmaRT Ride microtransit zone in Elk Grove, the third such expansion of the service since the pandemic began. The Elk Grove annexation follows on the heels of the cities of Folsom and Citrus Heights, providing a more unified regional transit network for Sacramento County.
We also found opportunities to reduce transportation barriers, including free rides to COVID-19 vaccine appointments and free rides to hiring events every Wednesday for two months.
We are adding additional services in September, including bringing back our Express Airport Bus service between downtown Sacramento and the Sacramento International Airport, but this time with zero-emission battery powered buses. We are also adding a new commuter route and making adjustments to several other bus routes to improve the customer experience.
Transit California:
What accomplishment has made you most proud?
Henry Li:
Over the last few years, SacRT has a lot to be proud of, which makes it hard to choose just one. We were able to annex three cities into our transit services; launched one of the nation’s largest microtransit networks; passed the nation’s first unrestricted free fare program for K-12 students; held a ground-breaking “plug-in” event to celebrate the start of the largest, first-in-the-nation public-private partnership new high-speed electric vehicle charging hub; and partnered with the California Department of Transportation (Caltrans), Visa, Littlepay, and SC Soft to add a contactless method for payment onboard light rail trains -- the first in the state to offer this onboard light rail trains.
However, I am most proud of how our agency has not only survived the pandemic, but also thrived as a health and human resource agency assisting with resiliency efforts across Sacramento County. During the pandemic, we have operated at near 100 percent service levels, ensuring safe and essential travel, while supporting our region’s economic recovery, and inclusive and social justice goals.
Transit California:
SacRT has seen a historic financial turnaround since your arrival in 2016, what do you attribute that success to?
Henry Li:
During this five-year period, SacRT experienced a historic financial turnaround, building reserves, lowering fares for the first time, progressing State of Good Repair, while expanding and launching new service. We have been able to build reserves from nearly $0 to currently over $30 million.
After the initial success of SacRT’s SmaRT Ride microtransit service in 2018, we received $14 million in new funding from the Sacramento Transportation Authority to expand SmaRT Ride. Later, SacRT negotiated the annexation of the transit services of the cities of Folsom then Citrus Heights followed by Elk Grove.
These consolidation efforts, made possible because of a renewed trust in SacRT by the jurisdictions, provided economies of scale, a true integrated regional system, and the opportunity to compete and win additional grant funding – bringing additional funding to the region.
SacRT secured a Caltrans Sustainable Communities grant in 2018 to develop a complete ZEV fleet transition plan and worked closely with the City of Sacramento to pass the region’s first Transit-Oriented Development Ordinance, stipulating certain land uses located on properties within a half-mile of an existing or proposed light rail station.
Over the past year, while the COVID-19 pandemic crippled many transit agencies, SacRT was able to generate a $12.8 million operating surplus, staving off layoffs, furloughs, and salary cuts, while maintaining service levels close to 100 percent. Despite a 60 percent drop in ridership and farebox revenue caused by the pandemic, SacRT’s fiscal year 2021 operating results remained very strong.
Since the start of the pandemic, federal emergency relief funds have been critical for SacRT to maintain safe operations, protect employees and the riding public. We were allocated approximately $133 million from the first two relief funding rounds, which is being used not only for operations, but to implement numerous best safety practices to help reduce the spread of the COVID-19 virus, and with another $100 million on the way from the third relief fund.
It’s truly been amazing at how much we have been able to accomplish despite the challenges. We, as an organization, have been so resilient and flexible and our employees have remained in good spirits.
Transit California:
The next California Transit Association fall conference will be held in Sacramento, what can we expect to see?
Henry Li:
After 18 months of stay-at-home orders, SacRT is excited to welcome everyone in person to California’s capital in November for the California Transit Association’s 56th Annual Fall Conference & Expo at the new state-of-the-art SAFE Credit Union Convention Center.
You can expect robust and diverse programming and tours on the future of transit and how various agencies plan to build back ridership. I believe that a common theme throughout the conference will be the important role public transit plays when it comes to racial equity, environmental justice, and access to opportunity. As the federal and state governments look to Build Back Better, transit needs to be prepared to seize this moment and be prepared to secure funding to modernize and transform our systems to improve the customer experience.
As a reminder, don’t forget to bring your walking shoes and appetite as Sacramento is also America’s Farm-to-Fork Capital with amazing restaurants, more than 50 farmer’s markets, home-grown breweries, quaint coffee shops, colorful street murals, and shopping districts – there’s no shortage of things to explore while you are here!
Transit California:
The California Transit Association staff and members thank you and your organization for being our host agency during the 56th Annual Fall Conference & Expo. For more about the conference read Get Ready! in this issue of Transit California.