The San Francisco Municipal Transit Agency (SFMTA) and the San Francisco Controller’s Office have created the Muni Funding Working Group, which will meet twice a month through January 2025 to consider options to address the agency’s financial needs, including to support Muni and the agency overall.
SFMTA notes it continues to face significant challenges as the city of San Francisco recovers from the COVID-19 pandemic. According to SFMTA, post-COVID-19 pandemic Muni ridership continues to increase and the agency is spending less money but its parking and transit revenues are down since the COVID-19 pandemic. The agency says San Francisco’s slow economic recovery is also impacting its finances.
According to SFMTA, after the two-year budget was passed this spring, it learned it would be receiving less money from the city and state than anticipated due to the city and state’s financial challenges. The agency is expecting:
- A $15 million budget gap in Fiscal Year (FY) 2025-2026.
- A $240 - $320 million shortfall in FY 2026-2027. SFMTA notes that is when its federal COVID-19 pandemic relief funds run out and state and regional relief funding is cut.
The agency says it is unlikely that the state or federal governments will commit to long-term funding increases that close the budget gap. The Muni Funding Working Group will make recommendations on how the agency can close its budget gap. The working group will consider policy options in four categories:
- Efficiency improvements: Streamlining SFMTA systems and processes to reduce operating costs
- Service cuts: Reducing service across all divisions, not just Muni
- Revenue enhancements: Increasing fares, fines, fees and taxes
- Service enhancements: Offering improved service that attracts more customers and builds support for additional funding
SFMTA staff will present the policy options to the Muni Funding Working Group. The group will discuss the options and choose the ones it wants to recommend. The Controller’s Office then will produce a report on the group’s recommendations. The agency expects that report to be published in early 2025.
Who is in the Muni Funding Working Group?
The San Francisco Controller’s Office leads the Muni Funding Working Group. The agency notes it is made up of city officials, SFMTA Board members, union and business leaders, transportation experts, transit advocates and others.
The full member list of the Muni Funding Working Group can be found on SFMTA’s website.
