Our newly approved budget will help us continue to deliver the services San Franciscans depend on.
Last week, our Board of Directors approved our next two-year budget. The budget is balanced and preserves crucial services.
- It prioritizes fast, safe and reliable Muni service.
- It maintains paratransit service.
- And it preserves free and discounted Muni fares for youth, seniors and people with disabilities.
The directors approved an operating budget of $1.5 billion in FY26-27 and $1.6 billion in FY27-28. And they approved a capital budget of $655 million in FY26-27 and $546 million in FY27-28.
Our agency faces the most challenging financial crisis in its history. This budget is the first step of a multi-year strategy to reduce costs and stabilize our finances. The first year of the budget includes a $200 million loan from the state. The loan helps close an immediate shortfall of $307 million that we face when the next fiscal year begins on July 1. Looking ahead, we will need more funding to keep Muni and other services running. Without it, we’ll have to make significant cuts to services and programs in FY 27-28.
Feedback is very important to us. So, we gave people a chance to weigh in at our budget outreach events. Over 90 people attended across the three open houses.
Delivering on your transit service priorities
The budget maintains Muni service, which is a top community priority.
- There will be no Muni or paratransit service reductions in the first year of the budget.
- We will continue to offer discount fare programs for youth, seniors, people with disabilities and people with limited incomes.
Thousands of people depend on Muni every day to get around the city.
To balance the operating budget, we reduced expenses and became more efficient. For example, we are going to eliminate 89 vacant positions. This is in addition to more than 500 positions that had previously been eliminated. We’re also saving $20 million from reducing materials, supplies and work orders.
We are also making some modest changes that will increase our revenue.
Parking changes
- Increase parking citation late penalties by 10%
- Increase meter rates by 25 cents starting in the second year of the budget
- Raise fees for construction and temporary no-parking permits to offset loss of meter revenue
- Pass-through online credit card fees
- Reduce fines for violations that do not impact traffic safety, such as curbing wheels
Cable car fare changes
- Launch Cable Car Plus fare in January 2027 - $18 (valid for unlimited travel on cable cars and all other Muni service for one day for one adult and up to two youth aged 18 and under)
- Increase Cable Car single ride ticket by $3 in January 2027 to better recover costs (will be offered through December 2027)
We’re making it easier for families to enjoy our beloved cable cars with the new Cable Car Plus pass.
Muni fare changes
- End the 15-cent Clipper discount in January 2027
- Increase fares by 10 cents in January 2028, to account for inflation
- Introduce fare capping and allow customers who pay for two Muni rides in a day to ride free of charge for the rest of that day (targeted for Summer 2027)
You can find more information on our budget webpage (SFMTA.com/Budget).
How community feedback shaped the budget
Throughout this budget cycle, we worked with Muni customers, community members, elected officials and others. Their input helped us develop the final budget proposal.
The community outreach process began in October 2025 with a city-wide survey on people’s transportation priorities. The survey was available in four languages both online and in print. We received more than 5,000 responses, and more than half included comments. Learn more about the feedback we received.
Our pop-up open houses at libraries and community centers across the city captured public feedback through physical and digital surveys.
Following the survey and initial budget proposals, we held three public open houses. Staff offered briefings to over 60 community organizations. We presented to formal advisory councils and committees, advocacy groups and neighborhood organizations. We also used website updates, e-mail and text blasts, social media campaigns and digital shelter ads to keep the public informed and promote feedback channels.
What’s next
This budget prioritizes maintaining current levels of service and frequency. But we aren’t out of the woods yet. Without additional funding, our budget deficit could grow to $434 million by July 2030.
We will have to cut Muni service and programs if we are unable to fill these gaps. Learn more about the impacts to Muni and street safety without necessary funding.
We are working to bridge this gap, maintain current service and create a stronger future for Muni. Our strategy includes ongoing work to find efficiencies and cost savings, as well as a regional revenue measure and a local revenue measure. Learn more about the ways we are bridging this budget gap.
Join us this summer
This summer we plan to continue our outreach on Muni’s budget and funding needs. We will be at upcoming street fairs and events. Stop by and say hello!