San Francisco transportation officials are looking at more ideas to save costs and earn a bit more revenue over the next two years as the city’s transportation agency faces a looming $307 million deficit at the start of the 2026–27 fiscal year.
The San Francisco Municipal Transportation Agency is considering increasing parking meter rates, eliminating discounts for Clipper users, and simplifying some of its Muni fares, based on staff recommendations. In total, the SFMTA could save $30 million over the next two years,
At Tuesday’s Board of Directors meeting, the agency’s director of revenue development, Diana Hammons, presented the board with several proposals for discussion. On Muni fares, staff are proposing eliminating the Clipper discount. Currently, the discount is 15 cents, while cash-paying riders pay $3.
Staff are proposing to discontinue the MuniMobile app, which would save the SFMTA $1.6 million. Hammons said that given the launch of the next generation of Clipper, the app is no longer needed. Fare capping is being proposed, where riders could earn an all-day Muni pass after paying for two single rides, though it could lead to a $1.6 million loss, but Hammons said the elimination of the Clipper discount would offset it.
Another proposal is to simplify the cable car fare by introducing a $15 pass that, for example, would allow visitors to ride the cable car once or twice, or to use the rest of Muni all day.
It would mean the agency would eliminate the single-ride fare and the need for visitors to decide on whether to purchase a one-, three-, or seven-day visitor pass.
SFMTA staff are also recommending reducing select parking fines that would have no impact on public safety.
Board Director Mike Chen said simplifying Muni fares could help reduce “decision paralysis” for riders and visitors about which fare to purchase.
“I think this will actually be really good, especially for new riders to our system,” Chen said.
On the parking revenue side, staff are proposing increasing the hourly parking meter rates by 25 cents, increasing penalties for late fees for parking citations, and increasing parking meter recovery fees for construction and temporary no-parking permits.
Another proposal includes passing through a 2.15 percent credit card transaction fee for online payments for parking fines and parking permit fees.
A proposal not recommended is to expand parking meter hours into the evening and on Sundays.
Staff are also recommending reducing select parking fines that would have no impact on public safety, and that the agency receives a lot of phone calls about at its customer service center. One of those citations is drivers forgetting to curb the wheels on hilly streets. That citation is currently $73 and could drop to $48. Another citation that could be reduced is drivers failing to park within a marked space of a parking meter (reduced from $76 to $48). Other citations that could be reduced to $48 include repairing vehicles on the street and those who display a permit on an incorrect vehicle.
While SFMTA staff are looking at every corner for savings and efficiencies, city voters next year could be asked to support two ballot measures to support Muni.
While the board made no decisions at the meeting, the presentation on fare and parking policies is part of a broader discussion on the SFMTA’s two-year budget. The board will have more time next year to continue budget talks, including at its annual all-day workshop planned for February.
The SFMTA has to submit a budget to the city by May 1.