San Francisco approves Muni budget — but bigger crisis looms
Add Axios as your preferred source to
see more of our stories on Google.
The F Market & Wharves streetcar could be eliminated or reduced without transportation funding, per SFMTA. Photo: Tayfun Coskun/Anadolu via Getty Images
Facing a massive deficit, San Francisco transportation leaders on Tuesday unanimously approved a two-year operating budget, but whether it holds depends on voters this November.
The big picture: The San Francisco Municipal Transportation Agency's budget for the next two fiscal years staves off immediate service cuts and bridges a major deficit, but long-term financial stability hinges on whether two crucial funding proposals pass in the fall.
- Those ballot measures include a local parcel tax and a regional five-county half-cent sales tax that could both generate about $300 million for Muni annually.
Driving the news: The SFMTA Board of Directors approved a $1.5 billion operating budget for fiscal year 2026-27 and $1.6 billion for 2027-28.
- The plan closes deficits of $307 million in the first fiscal year beginning this July and $344 million in the second.
Yes, but: SFMTA's financial problems are far from resolved, with the structural deficit still expected to grow to $434 million by 2030.
- If voters reject the proposed tax measures, transit officials warn the system could face major service reductions, including the elimination of up to 20 Muni lines, longer wait times and regular service ending at 9pm.
Threat level: "Everyone ... who lives or works in San Francisco will be impacted without new transportation funding," SFMTA spokesperson Parisa Safarzadeh said in a statement. "Traffic will increase, parking will be more difficult and commutes will be longer."
Between the lines: The agency would also cut operational costs, eliminate vacant positions and implement higher transit fares and parking rates to help close the gap.
- The plan keeps paratransit service running and maintains free and discounted Muni fares for youth, seniors and people with disabilities.
What they're saying: "While we do not agree with every decision, we appreciate that this budget protects the core of what riders depend on," Dylan Fabris, community and policy manager at the advocacy group San Francisco Transit Riders, said in a statement.
- "Preserving Muni service, maintaining discount programs for those who need them most and introducing fare capping are meaningful wins in a very difficult financial moment."
What's next: Mayor Daniel Lurie is expected to include the SFMTA budget in his May 1 budget proposal to the Board of Supervisors.