Struggles encountered in persuading voters to accept tax proposals should not be underestimated, warns Muni report
San Francisco's Municipal Transportation Agency (SFMTA) is facing a significant financial challenge, with a deficit of $322 million in its Muni budget. To tackle this issue, city officials have proposed a series of strategies aimed at generating new revenue without compromising transit services.
At the forefront of these proposals is the consideration of putting big tax measures, such as sales and parcel taxes, on the ballot. This approach is designed to raise funds without resorting to service cuts [1]. Additionally, a 10-cent fare hike for adults is part of the agency's plan to reduce the deficit [3].
Another solution under consideration involves adjusting parking costs to reflect their actual economic value and implementing congestion pricing, similar to New York City's program, to reduce traffic and raise funds [3].
The ongoing transit-funding campaign in the state Legislature is being led by Democratic state Sens. Scott Wiener (of San Francisco) and Jesse Arreguin (of Berkeley). Sen. Wiener has successfully lobbied for a $750 million loan in this year's state budget to provide temporary financial relief for Bay Area transit agencies until their fate is put to voters [2].
The loan is not the only solution on the table. The Muni Funding Working Group, a task force composed of union leaders, transit advocates, city supervisors, Chamber of Commerce members, and a top staffer from Mayor Daniel Lurie's office, has been discussing the financial predicament of transit in San Francisco. The working group's proposals, including Package A, are part of the ongoing transit-funding campaign in the state Legislature [10].
Package A relies on a potential regional ballot measure and a local parcel tax for $260 million of the funding, with new parking fees generating another $20 million, and a mix of cost savings to cover the rest [4]. Sen. Wiener is optimistic about the public's support for higher taxes to prevent transit cuts, believing that San Franciscans understand the importance of Muni for the city [9].
However, if new revenue sources are not established or if tax measures are rejected by voters, the potential consequences are severe. Significant reductions in bus and train services could occur, undermining the city's economic recovery and affecting transit-dependent riders [1][5]. Such cuts could jeopardize Muni's post-pandemic ridership gains, which have seen weekday ridership return to 79% of its pre-pandemic levels [5].
Moreover, reducing transit services could be a setback for San Francisco's economic recovery, as public transit is crucial for commuting and other activities [1]. The economic recovery in San Francisco could be hindered by such service cuts.
The loan secured by Sen. Wiener is intended to provide temporary financial relief for Bay Area transit agencies until a new revenue source is approved by voters [8]. The Muni Funding Working Group has proposed six packages, each containing possible cuts and revenue generators to fill the $322 million gap [7].
In conclusion, the current plan to address San Francisco's Muni budget deficit involves a combination of ballot measures, fare increases, and parking and congestion pricing. If these measures are not successful, the potential consequences could be significant, including service cuts, a decline in ridership, and a setback for the city's economic recovery.
- The Muni Funding Working Group, with representation from various sectors, is discussing the financial predicament of San Francisco's transit system and has proposed multiple packages aiming to fill the $322 million deficit.
- The San Francisco Municipal Transportation Agency (SFMTA) is contemplating a 10-cent fare hike for adults as part of its strategies to reduce the deficit in its Muni budget.
- City officials are exploring the possibility of putting big tax measures on the ballot, such as sales and parcel taxes, to raise funds without compromising transit services.
- Significant reductions in bus and train services could occur if new revenue sources are not established or if tax measures are rejected by voters, which could hinder San Francisco's economic recovery and affect transit-dependent riders.
