CalTrain faced serious problems in its first few months. George Deukmejian replaced Jerry Brown as Governor of California on January 3, 1983. Deukmejian favored highway projects over public transit, and showed no enthusiasm for what many called a "pet project" of the former governor. Daily ridership stood at 300–350 passengers, disappointing Caltrans officials who hoped for 2,600 daily riders. Additional issues remained in the disagreement between the state and the SP over the tariff that the state should pay to the SP for the use of its infrastructure. The state, together with local governments, was prepared to pay between $70,000-100,000 per month, while the SP insisted on a higher figure of $588,000. By February $200,000 remained of the original $6 million allocation, which did not include the $2–3 million potentially owed the SP should its figure be upheld.