SFMTA Budget Update
Upper Noe Valley Neighborhood Association
Monday, May 18, 2026
San Francisco Municipal Transportation Agency
Muni is vital to San Francisco
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riders every weekday
Muni serves over
500,000+
students take Muni to and from school
Roughly
14,000
About 270, 000
people commute�into the city for work.
Muni accounts for almost 50% of all transit trips within the
nine-county Bay Area
Investments in Muni service quality are paying off
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SAFETY
TRANSIT INFRASTRUCTURE
CUSTOMER INFORMATION
CLEANLINESS
MAINTENANCE
EMPLOYEE MENTORING
Initiatives to make the Bay Area’s transit systems feel like one seamless system
Working with the MTC and other operators to reshape the regional transit system into a more connected, more efficient and more rider-focused mobility network.
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REGIONAL FARE INTEGRATION
UNIFORM TRANSIT SIGNAGE
SCHEDULE COORDINATION
March Weekday and Weekend Ridership
Note: Excludes cable car and streetcar.
529k
Weekday
362k
Weekend
Average Daily Boardings
Ridership surges as Spring begins, with continued growth across both weekdays and weekends.
Transit funding is a local responsibility� �
In other countries with great transit, the national government pays for transit service.
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In other US states with great transit, the state government pays for a large portion of transit service
In California, transit is funded primarily by local jurisdictions
Balanced Two-Year Budget
On April 21, the SFMTA Board of Directors unanimously passed a two-year budget for the agency.
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Revenue Type | FY 25-26 ($M) | FY 26-27 ($M) | FY 27-28 ($M) |
Revenue | 1,452 | 1,515 | 1,616 |
Expenditure | 1,452 | 1,515 | 1,616 |
Source: Budget System Output (e-turn), April 14, 2026
The budget protects:
5-Year Deficit Forecast from July 2025
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The budget approved by our Board of Directors closed a $307M deficit projected for FY26-27 and a $344M deficit projected for FY27-28. That’s when pandemic relief funding ran out.
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Closing the Deficit
The approved budget closed the FY26-27 and FY27-28 budget deficit using a state loan, agency efficiencies and revenue, and new revenue from regional and local ballot measures.
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FY26-27 and FY27-28 Budget Plan
Regional Revenue Measure: The Connect Bay Area Act allows San Francisco to pursue a one-cent sales tax increase to maintain Muni. If passed by voters, Muni will receive ~$155M per year to address the structural deficit.
Local Revenue Measure: As the regional measure will not fully address the structural deficit, a local parcel tax has been proposed to further reduce the gap. If passed by voters, the Stronger Muni for All measure will generate ~$150M annually to reduce the deficit and ~$10M for service quality improvements.
Agency Efficiencies & Revenue: Building an efficiency culture and identifying new enterprise revenues in the out years will close the remaining structural deficit.
In the short-term, one-time sources will close the budget deficit until regional and local revenue measures are implemented.
Regional Revenue Measure, Nov. 2026
Participating Counties
The Connect Bay Area Act authorizes a regional sales tax for the November 2026 ballot in Alameda, Contra Costa, San Francisco, San Mateo and Santa Clara counties.
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Funding for Transit
The regional revenue measure would fund BART, Muni, Caltrain, AC Transit and other transit systems.
Regional Benefits
Fare programs for people with limited incomes, accessibility projects, wayfinding and transit priority projects.
Rate
Due to the density of transit operating in San Francisco, San Francisco voters will consider a 1% sales tax. Voters in the other counties will consider a .05% sales tax.
Ballot Placement
The measure is being advanced by a coalition of stakeholders and voters, the Connect Bay Area Transit Committee.
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If successful, the regional revenue measure will raise about $1 billion annually for transit agencies in the region.
Of this, Muni would receive approximately $155 million per year.
Local Revenue Measure
The Stronger Muni for All Measure would be an annual tax on parcels of real property in San Francisco beginning on July 1, 2027, and ending on June 30, 2042. The tax rates would be adjusted annually for inflation.
The proposed 2027 tax rates would be:
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* There is a cap of additional charges of $50,000 for multi-family residential and $400,000 for non-residential parcels.
*
Local Revenue Measure
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If successful, the local revenue measure will raise approximately $150 million annually for existing transit operations, plus at least $10 million for service quality improvements.
Examples of Efficiency Work Completed
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Ongoing cost reductions
Eliminated vacant positions. If filled, these roles would have cost $170 million annually.
Cost avoidance
$30 million savings from eliminating planned one-time investments
Expenses to reduce future costs
$30 million savings from implementing transit priority upgrades to provide more Muni service with the same resources
New Agency Efficiencies and Revenue
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This two-year budget captures initial efficiencies and lays the groundwork for the big moves to come. The overall goal of the work is to bring long-term costs into alignment with revenues, while protecting Muni service.
Scenario Planning for the Ballot
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if both initiatives pass
Muni Service Options for Cutting Costs �Without Necessary Funding
These cuts would have citywide impacts: Slower downtown recovery, increased traffic congestion, less access and fewer opportunities for people who rely on Muni, major systemwide crowding.
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Timeline for Muni service cuts
if one or both measures fail
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Pre-Election
Present-November 2026
Winter 2027
Spring 2027
Summer 2027
Fall 2027
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In 2025, Muni riders gave us their highest satisfaction rating ever
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Thank you! Questions?
Appendix
Transit and Parking Revenue Changes
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Policy Changes |
Parking Revenue:
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Tourism Revenue:
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Daily Rider Revenue:
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