Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Cip topic
No spam. Unsubscribe anytime.
SFMTA outlines FY27——FY31 CIP, warns of about $200 million revenue drop and presents three scenarios
Summary
SFMTA staff told the board that the agency expects roughly $200 million less revenue in the next five-year CIP versus the previous cycle, proposed a three-scenario approach (baseline, CIP+, CIP++) and presented an upper bound of up to $40 million per year in discretionary capital flexing to help close operating shortfalls.
Rob Hawkes, director of capital budget and funding strategy, and CFO Brie Hoarder presented an overview of the San Francisco Municipal Transportation Agency's proposed Capital Improvement Program (CIP) for FY27—to—2031.
Hawkes outlined the CIP process, noting the current CIP programs, the agency's $2.7 billion-plus prior programming and that preliminary estimates for the next CIP are approximately $2.3 billion, about $200 million (roughly 8%) less than the prior plan. He said the finance team will refine figures in December when final revenue estimates and newly awarded grants are confirmed.
"Revenues in the next CIP are estimated to be about $200,000,000 less than the last CIP," Hawkes told the board, and staff warned that about 82% of capital funds are restricted to specific programs or grant terms.
Because of uncertainty, staff proposed three planning scenarios: a Main CIP that focuses on committed projects, a CIP+ that adds capacity if funding allows, and a CIP++ to capture urgent needs for advocacy and grant pursuit. Staff also presented a scenario for up to $40 million per year of discretionary capital shift to operations as a two-year bridge to balance the operating budget, noting that any such flex requires difficult tradeoffs, project delays or downscopes.
Directors asked clarifying questions about the $40 million figure (whether it was per year or total), how restricted funds affect decision space, and the timing of policy choices. Finance staff said $40 million per year is an upper bound and that most policy decisions would be developed and presented to the board in December and January, with a preliminary draft CIP in March and final approval in April.
Board members emphasized the need for concurrent operating-budget briefings so directors can weigh capital flex options against operating tradeoffs and asked for scenario-based comparisons when staff returns in December.
