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San Francisco Transportation Authority hears update on Cap-and-Invest extension and SB 63 regional transit measure
Summary
Staff told the board that extension of California's Cap-and-Invest program and Senate Bill 63 (the Connect Bay Area Act) could provide major new funding for high-speed rail and Bay Area transit, but both remain uncertain and time-sensitive; staff urged clarity on bridge loans the state negotiated to avoid near-term service cuts.
The San Francisco County Transportation Authority board received an update Sept. 9 on state efforts to extend California's Cap-and-Invest program (formerly Cap-and-Trade) and on Senate Bill 63, the proposed multiyear regional transit funding measure often called the Connect Bay Area Act. Staff said both efforts could substantially increase funding for high-priority transit projects but that outcomes remained uncertain with legislative deadlines approaching.
Amber Crabbe, the Authority's legislative lead, told commissioners that the Cap-and-Invest program raises roughly $4 billion annually today and that extension legislation and related expenditure plans were changing "hour by hour" as the Sept. 12 bill deadline approached. Crabbe said proposed extensions seek to secure long-term continuous appropriations for transit programs and to reserve $1 billion for high-speed rail bookend projects.
Jesse Kahler, the Authority's rail program manager, described the latest amendments to SB 63. In its most recent form, SB 63 would authorize a five-county sales-tax-based regional measure with a 14-year term, setting San Francisco's county rate at 1% while most other participating counties would be at 0.5%. Kahler said the measure is projected to generate roughly $1 billion per year regionwide, with major-operator distributions that in fiscal year 2030-31 are estimated to provide about $300 million for BART and about $170 million for SFMTA.
Kahler said the bill would create a new revenue district governed by the Metropolitan Transportation Commission and includes an accountability and efficiency-review process intended to reduce costs and identify early action strategies by April 2026. He said counties could petition ad hoc adjudication committees if they believe an operator is not meeting obligations and that committees could withhold funding after a prescribed process.
Staff also briefed the board on near-term bridging resources. Kahler and Crabbe said the Legislature negotiated $750 million in potential loans this summer to AC Transit, BART, Caltrain and Muni to bridge operations until regional funds are collected. Chief Deputy Director Maria Lombardo and Joel Ramos of SFMTA told commissioners that operators need certainty about these bridging loans to plan service for fiscal year 2026-27 and that planning for significant service changes typically requires several months and Board approvals, including Title VI equity analyses when cuts would have disparate impacts.
Adam Vanderwater, executive director of the Transbay Joint Powers Authority, described how potential Cap-and-Invest bookend dollars factor into funding the Salesforce Transit Center portal and related rail improvements. Vanderwater said the portal is roughly a $8 billion program overall, with about $6 billion identified and roughly $2 billion remaining; he said a $1.053 billion state investment previously requested would close about half the remaining gap and that additional funding sources (federal discretionary grants, development-linked revenue and land-secured financing) are being pursued.
Several commissioners thanked staff for the regional advocacy; Commissioner Mandelmann asked about timing and the practical effects on operators if state bridging loans are not finalized. Public commenter Roland de Brasse urged caution in interpreting the funding amounts, pointing out that some presentation slides showed annual versus multi-decade totals differently.
Why it matters: Staff said the combination of a Cap-and-Invest extension and an approved regional measure would materially change funding available to San Francisco and regional transit operators, but both the structure of that spending and the availability of interim loans are unresolved and could affect service planning and local ballot strategies.
Looking ahead: Staff said they would continue engagement in Sacramento and planned to report further at the second board meeting of the month as the legislative deadlines moved. No formal board action was required on this information item.
