San Francisco transit director warns of $322M fiscal cliff by 2026

The California State Senate's Budget and Fiscal Review Committee convened on February 6, 2025, to discuss critical issues surrounding public transit funding and economic recovery in the Bay Area. The meeting featured testimony from key transit operators, highlighting the challenges and successes of their systems in the wake of the COVID-19 pandemic.

The session began with a focus on the importance of a well-functioning transit system for the economic recovery of the Bay Area. Julie Kirschbaum, acting director of the San Francisco Municipal Transportation Agency (SFMTA), emphasized that Muni, while a San Francisco-based system, plays a vital regional role, carrying over half of all Bay Area transit riders. She noted that over 60% of regional transit trips either start or end in San Francisco, underscoring the interconnectedness of the transit network.

Kirschbaum reported significant improvements in Muni's service quality, attributing these advancements to innovative strategies implemented during the pandemic. She highlighted investments in transit-only lanes and preventative maintenance, which have led to a notable reduction in delays and increased customer satisfaction. Muni's weekday ridership has rebounded to over 500,000, nearing pre-pandemic levels, although downtown trips remain lower due to ongoing remote work trends.

Despite these successes, Kirschbaum warned of an impending fiscal crisis, with a projected $322 million shortfall beginning in July 2026 as pandemic relief funding expires. She detailed the financial strain on the agency, citing a $50 million shortfall for the fiscal year 2025-2026 and the necessity of service cuts if funding issues are not addressed. Kirschbaum urged the committee to view state funding not merely as relief but as an investment in public transit, which supports vulnerable communities and contributes to California's climate goals.

The meeting concluded with a call for immediate state support to ensure the sustainability of transit services across the Bay Area. The discussions underscored the critical need for coordinated efforts to secure long-term funding solutions that will enable transit agencies to continue serving their communities effectively.