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San Francisco transit agencies win major grant recommendations; region presses state budget fix for transit

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Summary

The San Francisco County Transportation Authority updated commissioners on recent state grant recommendations, a Caltrain award and a state budget agreement that replaces proposed cuts with loans to Bay Area transit operators.

The San Francisco County Transportation Authority on an informational report said state and regional funding developments could shore up local transit projects and operations.

Chair Mirna Melgar, chair of the Transportation Authority, told commissioners the California Transportation Commission staff recommended funding from several Senate Bill 1 programs, including a recommendation of $14,000,000 in Local Partnership Program funds for the Howard Street streetscape project to add a two‑way protected bike lane, landscape median, bulb outs and enhanced crosswalks between Fourth and Eleventh streets. "We are grateful to the California Transportation Commission staff for recommending these funds and look forward to seeing them programmed and allocated," Melgar said.

Why it matters: the recommendations and related state budget moves affect project schedules and service continuity for Caltrain, Muni and other Bay Area operators.

Commissioners heard that Caltrain received the California Transportation Foundation's Project of the Year award for a modernization program the authority helped fund through the Prop K sales tax program. Melgar said the project contributed to a 37% ridership increase in its first seven months of the upgraded service.

Maria Lombardo, who presented the executive director's report on behalf of Director Chang, briefed the board on a separate state budget development: the California Senate and Assembly reached an agreement that replaces a governor‑proposed $1,100,000,000 cut to public transit with an interest‑free loan of $750,000,000 to Bay Area systems, intended to prevent service reductions over the next two years. Lombardo expressed appreciation to legislators who led efforts to protect transit funding.

Staff recognition: Lombardo credited Cynthia Fong in finance and Anna LeFort in policy and programming for achieving a top rating on the authority's sales tax revenue bonds and commended staff stewardship of voter‑approved funds.

Other grant activity: Lombardo and staff said some competitive SB1 applications were not recommended, including applications related to a multimodal Skyway (Treasure Island multiuse pathway), a BART substation at Powell tied to core capacity projects, and Mission Street safety improvements. The authority said it will work with partner agencies to seek alternative funding for those projects.

Regional planning and outreach: commissioners were also told the Bay Area is moving to support Senate Bill 63 (SB 63), which would enable a regional transit measure to appear on the 2026 ballot pending further legislative steps; the authority is tracking and engaging with Metropolitan Transportation Commission and others on potential changes.

Beyond grants, the authority noted local pilot efforts: new wayfinding signage is being tested at Powell station as part of a regional mapping and wayfinding project and the board was encouraged to take part in public feedback. The authority also flagged several upcoming community outreach meetings on microtransit in District 4 and the Brotherhood Way safety and circulation plan.

The report contained no requested board action; commissioners moved on after public comment was closed.