SFMTA outlines options to address $320 million FY26 shortfall; seeks input from Small Business Commission

The San Francisco Municipal Transportation Agency (SFMTA) briefed the Small Business Commission on Feb. 24 about a multi‑year funding shortfall that agency staff said could require a mix of revenue measures and service or program cuts if not addressed.

Amanda Eakin, representing the SFMTA chief of staff’s office, told commissioners the agency faces a $50 million shortfall for the fiscal year beginning July 2025 and a larger potential shortfall of about $320 million beginning in the fiscal year that starts July 2026. She said the larger gap results largely from the expiration of one‑time pandemic relief and slower general‑fund growth.

“Because of that fiscal cliff, that is really what they’re talking about,” Eakin said, summarizing the working group’s findings. She told commissioners the Muni Funding Working Group — co‑convened by the SFMTA and the Controller’s Office and including labor, business and advocacy groups — has been evaluating both revenue options and potential service reductions and will present refined packages to the SFMTA board in April.

Eakin described the revenue options under discussion as a menu that could be packaged to close the gap. They include a regional ballot measure under discussion at the Metropolitan Transportation Commission, a San Francisco local sales tax or parcel tax, an updated utility users tax, parking fee adjustments and expansion of residential parking permits, commuter pass programs for employers, and targeted fees for short‑term curb use (for example, commercial loading or delivery activities). She said the group is also exploring longer‑term ideas such as joint development of SFMTA‑owned property and road‑pricing concepts, but that those would not address the immediate shortfalls.

Eakin said polling completed by the Metropolitan Transportation Commission is available and that the working group plans city‑specific polling with the County Transportation Authority; she invited the Small Business Commission to participate in ongoing outreach and help bring industry perspectives back to the working group.

Commissioners asked detailed questions about likely revenue yields and timing. Commissioner Herbert asked how a quarter‑percent or half‑percent sales tax might translate into revenue and how quickly such measures could address the $50 million gap; Eakin said those options are under consideration but that a regional measure likely would not be available in time to address the immediate $50 million shortfall. Eakin said a regional measure scenario under discussion could yield roughly $80 million to $90 million for San Francisco as part of a larger package, depending on the rate and structure chosen.

Eakin also discussed non‑ballot approaches the working group is examining, such as fare‑enforcement and fare‑revenue optimization (including use of inspectors and outreach about fare products), parking optimization (including paid parking expansion into evenings and Sundays), and residential parking permit changes. She stressed there is “no single silver bullet” and that a package of measures will likely be required to minimize service cuts while stabilizing the agency’s finances.

Public comment at the end of the item included a resident and current/former city employee, Richard Carrillo, who said SFMTA had in some cases closed streets without adequate community input and urged the agency to build trust through collaboration with businesses and residents.

Eakin said the Muni Funding Working Group will meet again in March and that materials and proposed packages will be presented to the SFMTA board for workshop discussion in April. Commissioners and staff discussed opportunities to connect SFMTA outreach with small‑business networks and visitor‑serving partners to promote trips and bundled transit‑ticket arrangements.

No vote was taken on funding measures at the Small Business Commission meeting; the item was presented for discussion and input.