San Francisco’s economy is still recovering from the impacts of the COVID-19 pandemic, and this has taken a big toll on the SFMTA’s funding sources. Every funding source we rely on to keep San Francisco moving – tax revenue, grants, parking fees and Muni fares – is still significantly below pre-pandemic levels.
Meanwhile, our costs continue to grow, driven largely by historically high inflation. So, even though we’ve reduced our annual inflation-adjusted spending by $95 million from FY18-19 to FY23-24, we still face $300+ million annual deficits beginning in July 2026. This is when state and federal pandemic relief funding runs out.
The SFMTA is not alone. This is a situation that’s being faced by transit agencies throughout the United States. (Read about BART’s financial crisis here.)
We’re proud that despite our financial challenges, our incredible staff have worked together to make Muni service the best it’s ever been. Muni is fast, frequent, reliable, clean and safe. As a result, our customer satisfaction is the highest we've ever measured.
We’re delivering capital projects on time and on budget. And we’re using “Quick Build” tools to improve street safety more quickly and cost effectively than ever.
Still, without new sources of revenue, we will be forced to cut Muni service and other transportation programs and services San Franciscans rely on.
Muni Funding Working Group
To gather public input, identify solutions and prioritize options to address the SFMTA’s funding gap, the SFMTA and San Francisco Controller’s Office convened the Muni Funding Working Group in September 2024. It includes representatives from the Mayor’s Office, Board of Supervisors, Controller’s Office, SFMTA Board of Directors, business, labor, community advocates and transit experts.
The Muni Funding Working Group is considering several options in these categories to both decrease costs and increase revenue:
- Efficiency Improvements: streamline systems and processes to further decrease operating costs.
- Service Cuts: reduce service and/or subsidies to decrease operating costs.
- Revenue Enhancements: increase fees, revenue, or taxes to increase overall revenue.
- Service Enhancements: enhance services to win voter support for new revenue.
All materials from past meetings are available on the Controller’s Office website.
At the same time the Muni Funding Working Group is meeting, we are working collaboratively with the Metropolitan Transportation Commission and other Bay Area transit agencies on a new regional revenue measure for the Nov. 2026 ballot.
Worst-Case Scenario if No New Revenue is Identified
At the Nov. 13 Muni Funding Working Group meeting, we presented worst-case scenarios for the Muni service cuts we’d be required to make if we aren’t able to generate sufficient new revenue for the SFMTA by July 2026. On Nov. 20, 2024, we’ll present worst-case scenarios for cuts to our Streets Division programs.
We are doing everything in our power to avoid major cuts and have many ideas about potential new sources of revenue. But the public really needs to understand the impact on the city if we’re forced to close our looming $300+ million budget gap using only service and program cuts.
The list below is an illustration of the types of cuts we’d be forced to make. It is not a proposal or plan for cuts, and we urgently hope it doesn’t come to this.
Examples of service cuts that would be required to close a $300+ million budget deficit:
- Suspend lower utilized Muni routes
- Reduce frequences up to 50%
- Suspend historic train and cable car service
- Operate late-night OWL service only (no regular Muni service) from 9 p.m. – 6 a.m.
- Eliminate or reduce Muni fare subsidies for our most transit-dependent community members: seniors, people with disabilities, people with very low incomes and youth
- Eliminate or reduce tow program subsidies for people who are homeless or very low income
- Restrict the hours when people can get back a vehicle that’s been towed—no weekend service
- No crossing guards to help families stay safe at 97 schools across the city
- Slower project delivery on transit and street improvements
- No response to about a quarter of public engineering requests (stop signs, crosswalks, etc.)
- Cut the Muni Transit Assistance Program, which provides on-board assistance diffusing and deterring conflicts and acts of vandalism
These scenarios are for explanatory purposes only. They are not SFMTA plans or proposals. Any actual proposal to cut programs and services will be vetted through a public process that includes SFMTA staff and labor unions that represent them, San Francisco policymakers and members of the public.
Frequently Asked Questions
Why can’t you just get people to pay their fares?
Fare compliance is a major concern for the SFMTA. Since the pandemic, fare compliance has dropped from around 88% to around 80%. We are working hard to make sure everyone pays their fair share. We have recently hired more transit fare inspectors and are adding many more. In the past month, the number of inspections has doubled over the same time the previous year. Our goal is to keep increasing this number over the next few months.
That said, it’s important to understand that most people who don’t tag the Clipper reader are, in fact, fare compliant. During the pandemic, we created many new fare programs to make it easier to pay. There is no need to tag the card reader if you:
- Have a monthly pass
- Attend events at Chase Arena, Outside Lands and many other special events when the event host pays Muni for all day access
- Are transferring
- Are 18 or under
- Are using MuniMobile
- Are enrolled in a variety of other transit discount programs
When is Muni eliminating service?
Our goal is to make sure we do not have to eliminate service. We are focused on rebuilding Muni’s financial base to continue providing all our services and continue improving. We believe the city will come together to save Muni. But if we fail to do so, cuts would be necessary when state and federal relief run out in 2026.
We would not have a budget problem if you just became more efficient. Why haven’t you done so?
We are eager to hear about all the ways in which we can make each of our teams more efficient at delivering our services to the public. In October 2024, the Muni Funding Working Group focused on greater efficiency, particularly the ways in which we can do more with less. Transit lanes, for example, typically save our buses about 15% in travel time. They allow us to deliver 15% more capacity and frequency at no additional cost.
Most efficiencies, however, require a significant upfront investment in changing bureaucratic rules, legislation or street conditions, or compromises from San Franciscans before we start to see savings. Please help us identify efficiencies that are easy to implement and create substantial ongoing cost savings.
The SFMTA is top-heavy. Why can’t you just cut unnecessary management?
We are proud that the bulk of our workforce delivers direct – and excellent – service to the public. By charter, management positions are limited to 2.75% of our employees. The number of managers shrinks and grows with the rest of the agency.