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SFMTA warns of $320 million gap; board hears muni funding packages and ballot options
Summary
SFMTA presented a financial update showing a projected $320 million shortfall and offered six funding packages — ranging from ballot-led to service-cut heavy — developed by a muni funding working group; staff emphasized need for regional coordination and near-term bridge funding.
SFMTA leadership told the Transportation Authority Board that the agency faces a projected structural shortfall of about $320 million for FY26‑27 and outlined possible solutions developed by a muni funding working group.
Director Kirschbaum said SFMTA’s operating budget is about $1.4 billion, with roughly 77% dedicated to transit operations; the system is recovering ridership (about 74% systemwide) but downtown recovery lags. She said the agency carries roughly 500,000 daily customers and noted large, one‑time funding sources that helped stabilize Muni will run out by 2026. SFMTA reported $90 million in personnel cost reductions to date and identified another $25 million in ongoing savings, but said this is insufficient to close the multi‑hundred‑million shortfall.
The muni funding working group developed six packages that combine internal efficiencies, potential ballot measures (regional and local), non‑ballot revenue options (parking optimization, residential permit changes), subsidy reviews, and service‑cut scenarios. Director Kirschbaum said the working group favored “Package A,” which focuses on large ballot measures and regional coordination, but acknowledged uncertainty about how much revenue a regional measure (SB63) would yield for SFMTA and the timing gap until ballot measures generate revenue.
Board members asked about assets and joint development opportunities with BART and Muni property portfolios; Kirschbaum said staff are pursuing joint development but have not yet focused on station parcels with BART. Commissioners pressed on options to modify vehicle registration fees, fare compliance approaches and the timing of Clipper 2 rollout. Director Kirschbaum said Clipper 2 and credit-card payment integration are expected to roll out in summer (pending technical work) and that those upgrades should improve fare compliance.
Public callers and advocates urged the board to avoid deep service cuts and urged prioritizing revenue options that protect transit service. Kirschbaum emphasized the need for one more tranche of bridge funding and said the agency will continue to refine packages while coordinating regionally on ballot timing and content.
