There are no easy solutions to fill a $322 million budget deficit at the San Francisco Municipal Transportation Agency, city officials acknowledged Tuesday, following the release of a final report from the Controller’s Office that outlines several options that the agency could consider to fill the budget shortfall.
The final report is part of the Controller’s Office work with the Muni Funding Working Group, which met over the last several months to weigh different options to prevent future cuts to Muni service. The group included transit advocates, city supervisors, business leaders, and a representative from the Mayor’s Office.
“The path ahead is complicated, Director of Transportation Julie Kirschbaum said Tuesday at the SFMTA board meeting. “We don’t have one easy solution to stave off our financial crisis, but the work that the Muni Funding Working Group has done has really given us a roadmap to get through this challenging time.”
City Controller Greg Wagner told the SFMTA board Tuesday that the city is seeing “positive signs” in the city’s economy and that it was hard for him to “imagine a scenario where we address this deficit with cuts” while maintaining the city’s momentum in economic recovery.
“I think we need a strong, successful transit system in order to support our economy, and that’s clear,” Wagner said.
There was consensus among working group members in favor of a package that included no cuts to Muni service, dubbed Package A.
This year, the SFMTA had already cut $7.2 million in Muni service last month while facing a $50 million deficit.
The package included placing a regional sales tax measure on the November 2026 ballot to fund transit. That work is already underway by state Senators Scott Wiener and Jesse Arreguin under Senate Bill 63, which, if passed and signed by Gov. Newsom, would authorize a ballot measure in at least three Bay Area counties — Alameda, Contra Costa, and San Francisco counties.
Members were also favorable of another ballot measure in the form of another local or parcel tax. Both the regional and local measures could generate around $260 million. New parking fees and other efficiencies, such as fare enforcement and administrative cuts, to fill the rest of the budget gap.
Members of the working group also suggested that the agency have contingency plans in case ballot measures fall through.
In a letter, Wagner did warn Kirschbaum that asking voters to support ballot measures, particularly in a time of uncertainty, should not be taken lightly.”
Further down the list of packages includes the start of cutting Muni service. Packages labeled C–F could see $16 million to $90 million in cuts to Muni service. The report said that $90 million cuts in transit service would have a “significant” impact to the city’s economy.
This year, the SFMTA had already cut $7.2 million in Muni service last month while facing a $50 million deficit.
Wagner said to the board he was optimistic, given the consensus around the topic of funding for Muni.
“I’m already seeing it happening, the city coming together to really have this conversation, think through what’s possible, think through the options and create a path ahead,” he said.
The next step is for the SFMTA board and city officials to review the packages and decide which package or combination of packages to move forward with as part of the 2026–27 fiscal year budget talks, which will begin sometime this fall.
