Transit funding for Bay Area agencies inching towards voter ballot following Legislature's approval
Bay Area Transit Agencies Face Funding Crisis, New Bill Aims to Secure Future
A new bill, passed by state lawmakers, is awaiting Governor Gavin Newsom's approval by an Oct. 12 deadline. If signed, the bill will enable leaders in five Bay Area counties to authorise a sales tax measure for the ballot in November 2026, providing 14 years of funding for local public transportation systems.
The measure, known as SB63, is crucial to the region's economy, environment, and quality of life, according to local think tank SPUR. The default tax rate is set at one-half cent, except for San Francisco, where it would be set at 1 cent.
State Sen. Scott Wiener hailed the bill's passage as a critical step in securing long-term funding for local public transportation systems. "This legislation presents a historic opportunity to preserve and improve transit," he said.
BART spokesperson Alicia Trost echoed Wiener's sentiments, calling the legislation a "historic opportunity" to preserve and improve transit. San Francisco Municipal Transportation Agency officials also stated that the measure's passage would protect essential Muni service and equip the agency with resources to continue investing in its infrastructure, safety, and accessibility.
The Bay Area transit agencies are in dire need of immediate funding to survive until the new tax dollars from SB63 start flowing in. Muni faces a $322 million annual deficit, and BART projects a funding gap of $375 million to $400 million a year beginning in 2027. Without funding, transit agencies may have to make devastating cuts to service, such as closing stations and limiting train service to once an hour, and freeway traffic could spike.
The matter of a $750 million bridge loan, agreed upon by lawmakers and Newsom earlier this year, could be tabled until January. The bridge loan is contingent on details about how and when the money will be paid back. Without the bridge loan or other immediate funding, the Bay Area faces potential catastrophic cuts to the transit system.
The bill includes accountability measures requiring transit agencies to cut costs to receive further funding. If the measure were on the ballot today, polling shows that voters would approve it. The Metropolitan Transportation Commission (MTC) would be tasked with placing the potential tax increase for maintaining BART, Muni, and other transit agencies on the ballot for the November 2026 election.
The passage of the tax measure is seen as essential to the region's economy, environment, and quality of life. The SFMTA is trying to tackle the impending fiscal crisis "from every angle" and is committed to working with local and regional partners to secure the future of public transit in San Francisco and throughout the Bay Area.
