While the San Francisco Municipal Transportation Agency has until May 1 of next year to submit its two-year budget to the mayor, transit officials are starting discussions now on how to tackle the $320 million budget hole for the 2026–27 fiscal year, looking at everything from ballot measures to extending parking meter hours.
The SFMTA board of directors met Tuesday for its all-day workshop at the County Fair Building in Golden Gate Park, discussing ways to plug its deficit next year, but no final decisions were made at the meeting. Instead, the meeting kicked off what will be a months-long discussion to keep the agency’s budget balanced next year while avoiding further cuts to Muni service. Earlier this month, the board voted to reduce Muni service by 2 percent this summer.
“Even though there are challenges ahead of us, I think what I found so energizing and fueling is how many friends and forces outside of the agency that we have that are working to rebuild the agency’s financial stability and to find solutions,” Director of Transportation Julie Kirschbaum told the board in her opening remarks.
Ideas for generating new revenue at the transportation agency were developed by the Muni Funding Working Group, which held its final meeting last month. The group included participants from transit advocates to Muni operators and representatives from labor and the Chamber of Commerce, led by the Controller’s Office and the SFMTA.
For months, the working group members discussed and weighed ideas of generating new revenue for the SFMTA and ways the agency can cut costs. Some of the proposals discussed by the group were put into six different packages, with some packages including different variations of a regional funding measure, a second local ballot measure, possibly as a parcel tax, and a possible third ballot measure in 2028.
The first three packages, labeled A, B, and C, rely heavily on ballot measures to pass to balance the agency’s budget and do not include cutting Muni service.
Some packages also included revenue-generating measures that do not require voter approval, such as extending parking meter hours, reducing or eliminating tow and fare subsidies, and increasing the cost of residential parking permits.
Packages labeled D, E, and F are where the agency begins suggesting cutting Muni service at various levels and still includes the reliance on ballot measures, such as the regional sales tax measure, but at a smaller variable rate, and includes parking generating measures like extending parking meters on nights and weekends.
Board Director Hemginer told his colleagues that the agency needed to bring parking proposals back on the table, despite its controversial and somewhat political topic in the city.
“I think we’re still being too timid about parking,” Heminger said. “We ought to get a little more courage about that subject.”
He also leaned toward having the board focus more on packages that do not include Muni service cuts.
Director Alfonso Felder said there was some rationale in keeping at least one “worst-case scenario” plan in case other initiatives fall through.
Transit advocates warned that time was running out for the agency.
“This is our last attempt, Cyrus Hall, a transit advocate, told the board. “This is our last Hail Mary to make this work.”