SFMTA Balances $1.4B Budget on State Loan and Ballot Measures With No Service Cuts

The SFMTA Board of Directors spent the bulk of its April 7 meeting stress-testing a two-year spending plan that keeps every Muni route running, introduces daily fare capping, and phases in a new cable car pricing model — all while acknowledging the entire framework depends on voters approving two tax measures this November. In a separate unanimous vote, the board created San Francisco's first permanent curbside EV charging program at zero cost to the public.

• $1.4B operating budget maintains all Muni service with no cuts and no layoffs, bridged by a $200M state loan while two ballot measures head to voters

• $2.5B five-year capital plan puts 76% toward fixing aging infrastructure, including a $500M train control upgrade and Potrero Yard reconstruction

• Daily fare capping launches Jan. 1, 2027 — every rider's third trip is free — alongside Clipper 2.0 rollout

• Cable car fares move to a two-step model: $12 single ride plus a new $18 all-day Cable Car Plus pass with two free youth in year one; single ride eliminated in year two

• Curbside EV charging program approved 7-0, targeting 100 chargers by 2030 with private operators bearing all costs

• Youth advisory board pitches bus interlining concept it estimates could save $10M a year

• SFMTA's $300M+ in efficiency savings confirmed by regional consultant, strengthening the case for a new transit sales tax

No Cuts, No Layoffs — but Two Elections Away From Certainty

The centerpiece of the April 7 meeting was a detailed walkthrough of how SFMTA plans to close a $307M structural deficit without touching service or staff — a claim that depends entirely on revenue the agency does not yet have.

The basics: The draft two-year operating budget totals approximately $1.4B and is balanced through what Chief Financial Officer Bree Mawhorter described as a three-point plan: a regional sales tax, a local parcel tax, and continued internal efficiencies. A $200M state loan brokered through the Metropolitan Transportation Commission bridges revenue until the ballot measures take effect. The loan terms run 12 years — interest-only for the first two at roughly 4%, then $30M in annual principal-plus-interest payments.

Why it matters: Seventy-seven percent of the budget goes directly to transit delivery and 10% to administration. The budget uses $74M of operating reserve in year one and $32M of fund balance in year two, preserving the most flexible funds per prior board direction. No service is reduced, and no positions are eliminated — a remarkable posture for an agency facing a nine-figure shortfall.

Where things stand: Revenue-side changes include eliminating the Clipper discount in FY26-27 (aligned with the Clipper 2.0 launch), indexing fares in FY27-28, increasing parking meter rates by 25 cents in FY27-28, raising citation late penalties 10%, passing through online credit card processing fees, and — most notably — introducing daily fare capping. Under the cap, a rider's third trip in a day is free after two paid rides, launching Jan. 1, 2027.

"We have a three-point plan to solve that deficit over the long term and bring revenues and expenditures in alignment within the next five years," said Mawhorter.

Director Steve Heminger framed fare indexing as essential but politically fragile.

"The indexing of fares is one that has a cloudier future. It's an excellent idea of trying to get fares and costs into better alignment," he said, signaling that board members see the policy as sound but vulnerable to public pushback.

Director Alfonso Felder urged the board to stay flexible on the fare cap multiplier, noting other Bay Area agencies set it higher.

"I would encourage, as you heard from the public today, for us to consider increasing the fare capping limits to allow for us to be more in line with other places that have had success with fare capping," he said.

The other side: Public commenters offered a range of perspectives. Dylan Fabris of SF Transit Riders urged keeping the base fare at $3 rather than indexing to $3.10, proposing a higher cap multiplier to offset the difference. Lisa, a District 2 resident, argued the fare structure should better incentivize monthly pass purchases to reduce per-ride credit card fees and improve revenue predictability. Griffin Lee of ConnectedSF cited a SPUR report showing SFMTA's cost per hour at $327.39 exceeds peer cities and called for deeper efficiency cuts.

What happens if voters say no? Mawhorter offered reassurance — with a caveat.

"Because of the way the year one budget is structured, we do not have to make any preemptive reductions," she said.

But significant changes would begin in fall 2027 after union meet-and-confer processes and public outreach if both measures fail.

What's next: The board vote on the two-year budget is scheduled for April 21.

Cable Car Pricing: A Tourist Fare Gets a Transit Makeover

Why it matters: Cable car rides cost roughly $20 each to provide. The current $9 fare leaves a substantial gap, and the board has been wrestling for months with how to raise prices without sticker shock for visitors or families.

Where things stand: Staff proposed — and the board signaled consensus around — a two-step phase-in. In FY26-27, riders can choose a $12 single ride or a new $18 Cable Car Plus pass that includes all-day Muni access and two free youth. In FY27-28, the single ride option goes away entirely, leaving Cable Car Plus as the sole product.

The phased approach responds to earlier board concern that jumping from $9 to $20 was too drastic. Director Dominica Henderson expressed support for the gradualist approach. Director Alfonso Felder said he would have preferred moving faster but accepted the compromise. Director Fiona Hinze wanted to retain the single ride longer to gauge market response. SF Transit Riders called for all youth — not just two per adult — to ride cable cars free.

What's next: The cable car fare structure is bundled into the April 21 budget vote.

$2.5B Capital Plan: Reinvest First, Safety Second

Why it matters: Capital needs outpace available funding even at $2.5B over five years. Competitive grants now represent roughly 25% of total CIP revenue — increasing opportunity but adding uncertainty to the timeline for major projects.

Where things stand: Rob Jaques of the SFMTA Finance Division presented the draft FY27-31 Capital Improvement Program organized into five investment areas. The largest — Reinvest in the System — accounts for $1.9B, or 76% of the total. Improve Street Safety gets $286M (11%), and Optimize Services receives $229M (9%).

Marquee projects include the Train Control System Upgrade (approximately $500M), the LRV4 quarter-life overhaul ($111M), Potrero Yard reconstruction ($100M), 22 Fillmore transit priority improvements, Central Embarcadero improvements, and citywide daylighting. Director Mike Chen highlighted $150M-plus in transit corridor improvements targeting the city's highest-ridership routes.

"Our five-year plan has something like $150 million-plus going after some of our highest ridership routes that could be optimized," he said.

A parade of advocates pushed the board to invest more in street safety. Jodie Medeiros, executive director of Walk San Francisco, praised daylighting and quick-build investments but called for more than 10% of the CIP to go to safety, citing Hoboken, New Jersey's nine-year streak with zero pedestrian fatalities as proof that daylighting works. Claire Mobley of the San Francisco Bicycle Coalition urged doubling quick-build investment and implementing the biking and rolling plan starting with slow school zones. Robin Pam of Streets for All SF called for prioritizing gap closures on the busiest bike corridors — Valencia, 17th Street, Upper Market, and Portola. Sarah Bertram, a Mission Bay parent, shared that a two-year-old was killed by a car two blocks from her home and urged quick-build expansion around Mission Bay Children's Park.

Matthew, a ninth grader and SF Bicycle Coalition member, thanked the board for the $286M street safety investment and described his personal experience biking to Caltrain via the Wiggle route — a reminder that the infrastructure serves daily commuters of all ages.

What's next: The CIP is part of the April 21 budget package.

Youth Board Pitches $10M in Bus Route Savings

Two members of the Youth Transportation Advisory Board (YTAB) delivered a presentation that drew effusive praise from multiple directors.

YTAB member Mark Chang introduced a concept called interlining — combining bus routes at shared endpoints to reduce the number of vehicles sitting idle at layover points. YTAB identified five network locations, wrote a schedule optimization program, and estimated the approach could save $10M annually.

"The concept is called interlining, but with a few small changes to how it's normally done. We've identified that this could save the SFMTA about $10 million a year," Chang said.

YTAB member William presented a second proposal: a charter amendment that would formally empower YTAB members to serve as community ambassadors, host public events, and support staff during high-demand moments like ballpark games.

Director of Transportation Julie Kirschbaum called both proposals exciting and proposed a working group with transit scheduling staff to evaluate interlining. Vice Chair Stephanie Cajina praised the sophistication of the work. "I do see it as a work stream that is worthy for us, especially during this time when we're trying to build a lot of energy and community trust," she said.

Board Greenlights Curbside EV Charging at Zero Public Cost

In its only formal policy vote of the day, the board unanimously approved a Transportation Code amendment creating San Francisco's first permanent curbside EV charging program.

The basics: The program is modeled on the city's scooter-share permit framework. SFMTA will run a competitive application process for qualified operators, then issue both operator and site permits. All installation, energization, and operating costs are borne by private operators. Permit fees are $5,000 for operator applications, $6,500 per site permit, and $2,000 for annual renewals. The chargers are level 2, delivering a full charge in 4-10 hours — targeting overnight use in areas with high renter density and limited existing charging.

Why it matters: San Francisco has no existing permit structure for curbside charging. For the city's large renter population — unable to charge in a garage they don't have — this fills a critical gap and advances climate goals.

Where things stand: Three vendors participated in a demonstration pilot (It's Electric, Urban EV, Volt Post), generating lessons on vandalism prevention (a bring-your-own-cord model proved more resilient), grid access challenges, and siting principles. Authority over specific permit terms and curb stall designations is delegated to the Director of Transportation.

Director of Transportation Julie Kirschbaum explained the delegation approach: "We want to be able to be nimble. We don't want to anticipate in advance something that is so prescriptive that it isn't responsive to what is, similar to scooters, very much an emerging industry."

The other side: Vice Chair Stephanie Cajina was the most pointed questioner, pressing for financial clarity and calling the program abstract. "It just seems highly theoretical at this moment. And it doesn't feel as real as I think I would like it to feel for me to feel comfortable voting for something like this," she said — though she ultimately voted yes. Mark Gleason of Teamsters Joint Council 7 supported the program but raised concerns about large parcel delivery fleets using residential chargers. Dylan Fabris of SF Transit Riders urged chargers be kept off major Muni routes, High Injury Network corridors, and planned bikeway corridors.

The program has mayoral support and backing from Board of Supervisors President Daniel Mandelman. Companion legislation heads to the Board of Supervisors Land Use Committee.

Decision: The vote was 7-0 (For: Tarlov, Cajina, Chen, Heminger, Henderson, Felder, Hinze; Against: none; Absent: none)

$300M in SFMTA Savings Bolster Case for Regional Transit Tax

Director Steve Heminger, serving as the board's representative on MTC's Financial Efficiency Review Committee, reported that a consultant found SFMTA achieved more than $300M in operating cost savings since 2020. Three other Bay Area transit agencies showed similar results: AC Transit at roughly $200M, BART at approximately $500M, and Caltrain at about $70M.

"Our dearly beloved MTA achieved a little over $300 million in operating cost savings," Heminger said.

The review was mandated by legislation authorizing additional transit funding and is designed to assure voters that efficiency improvements will match any new revenue.

Chair Janet Tarlov noted SFMTA's savings are approximately double the anticipated new annual revenue from the regional measure. Director Julie Kirschbaum clarified the savings were cumulative over roughly five years, while the new revenue would be annual. The regional measure has a 14-year duration; Heminger stressed the importance of planning for its successor well before it expires.

Minor Items

• Minutes approved 7-0 with an amendment by Vice Chair Cajina requiring future legislative updates to address scooter collisions, speed cameras, and bike lane enforcement data.

• Consent calendar approved 7-0, including the Muni Service Equity Strategy for FY26-28 (which could unlock $10M in service improvements if the parcel tax passes), five roadway shared-space street closure applications (Kerouac Alley, Gold Street, Harlan Place, Larkin Street, Noe Street), an amended commercial lease at 44 Ellis Street converting base rent to a percentage-based model, routine parking/traffic modifications, and a claims warrant.

• Director's Report highlights: Staff recognized Demetrius Jackson of the Transit Division for over 20 years of service as dispatch manager overseeing 60-plus staff. The Board of Supervisors unanimously approved the Potrero Yard Modernization Project on March 24; the Mayor signed the legislation March 27. Construction begins this year with demolition in 2027. A companion resolution by Supervisor Chan directs the Mayor's Office of Housing and Community Development to identify additional affordable housing sites. The Mayor's Street Safety Initiative reached its 100-day mark with a new High Injury Network map covering 13% of streets where 74% of severe and fatal injuries occur, nearly 5,000 daylighted intersections, and a speed hump installed near Yik Wu Elementary School after 23 collisions in the surrounding neighborhood.

• Richard Johnson of HV Safe called for revocation of the Hay Street closure permit, citing ongoing non-compliance and lack of enforcement.