Photo by SFMTA Photography Department
The Bay Area’s largest transit operators are confronting significant operating budget shortfalls, with SFMTA, BART, Caltrain, and AC Transit facing a projected combined deficit of $800 million in fiscal year 2026/27.
Senate Bill 63 (Wiener, Arreguín) would authorize a multi-county regional transportation funding measure for the November 2026 election, allowing voters to consider approving a sales tax program that would support transit operating needs for a 10 to 15 year term. SB 63 represents a critical opportunity to address the Bay Area's pressing transportation needs through a coordinated regional approach. It was informed by a 5-county staff working group, which provided technical assistance to the bill authors.
During the July 22 Transportation Authority Board meeting, board members voted to reaffirm the Transportation Authority's support for SB 63 as amended, adopting principles to guide continued engagement of the development of the measure, and recommending San Francisco’s participation in the regional measure at a one percent sales tax rate. This level would help meet the operating needs of the four major transit operators serving San Francisco, as well as Bay Ferry and some east bay systems.
As SB 63 continues its journey through the California Legislature, significant progress is being made both at the state and regional levels to advance this transportation funding initiative. For instance, in early August, both the SamTrans and VTA boards opted in to the regional measure, bringing the number of participating counties up to five: Alameda, Contra Costa, San Francisco, San Mateo, and Santa Clara counties.
What’s included in the measure
The ballot measure, if approved, is estimated to generate about $1 billion annually in revenue regionally for Muni, AC Transit, BART and Caltrain, among other systems.
The bill would also support rider-focused improvements for fare programs, accessibility programs, and transit priority and mapping/wayfinding efforts.
Revenues are anticipated to be generated by a half-cent sales tax in Alameda, Contra Costa, San Mateo, and Santa Clara counties, along with a one-cent sales tax in San Francisco County. For reference, a sales tax of one percent in San Francisco county would increase San Francisco’s sales tax rate to 9.625% and generate about $235 million per year.
Principles to guide continued engagement
The staff recommendation at the Transportation Authority Board meeting also included four principles to guide San Francisco’s engagement in the measure.
- Passable measure – the measure should be structured to maximize the likelihood of success, including consideration of regional transit affordability and accessibility investments that may build support
- Regional transit rider benefits – the measure’s expenditure framework should provide clear benefits to transit riders in the District, through both direct operating support and regional investments for service enhancements and affordability
- Sufficient funding for San Francisco’s major transit operators – the regional measure should substantially address the budget shortfalls for major transit operators serving San Francisco, particularly SFMTA and BART, which serve the most riders and face the deepest funding challenges.
- Efficient and transparent administration – administrative provisions should enable the efficient allocation of regional measure funds, supported by appropriate and transparent oversight mechanisms.
SB 63 is expected to be heard at the Assembly Appropriations Committee on August 29, as well as at the Assembly Transportation Committee in the following weeks. The last day for bills to pass the Legislature is September 12.
Resources
View the July 22 Transportation Authority Board presentation (PDF)
SB 63 Bill Text (Legiscan)
SB 63: San Francisco Bay area: local revenue measure: transportation funding (CalMatters)