The SFMTA is currently facing the largest financial crisis in the agency’s history, and despite significant progress in identifying cost savings internally, more funding is required to help keep Muni and other transit services running. We are doing everything we can to continue to cut costs internally. The SFMTA is working to build an efficiency culture and identify new transit and parking revenues to help close our budget gap.
What we've done
Between 2020 and 2025, we achieved about $250 million in operating costs savings and $389 million in capital savings. This was driven by a combination of workforce reductions, service redesign and deferred or scaled back capital investments.
Investments in transit priority upgrades — including 75 miles of transit-only lanes — have reduced bus travel times on key corridors by up to 35%, enabling delivery of more service at no additional cost. These upgrades generated approximately $30 million in savings between 2020 and 2025.
The SFMTA has done everything we can to reduce the budget gap by identifying internal efficiencies.
What's next
The SFMTA’s FY26-27 and FY27-28 budget includes new efficiencies and expenditure cuts. Learn more about the SFMTA's 2-year budget.
We are also working with internal and external partners to continue to find savings and opportunities for transparency, including:
- Improve fare compliance and enforcement: The SFMTA will increase Transit Fare Inspector staffing to strengthen fare compliance and recently made it easier to pay for transit fares with tap to pay options as part of the region’s larger Clipper 2.0 migration and payment system upgrade.
- Enhance parking revenue: We have increased the number of Parking Control Officers and added two new meter-parking payment apps, ParkMobile and HotSpot, to make it easier to pay at city meters.
- Improve speed and reliability of service: The Muni Forward program is an ongoing initiative to increase Muni's speed and reliability.
- Right-size fleet to match demand: The SFMTA is operating one-car trains on the K and on the M lines during weekend schedules and is evaluating additional opportunities to realize efficiencies through fleet optimization to meet ridership needs.
- Identify and capture cost savings in larger contract renewals: The SFMTA is reviewing larger contracts to determine if services can be provided at lower costs or with improved value.
- Expand Clipper BayPass with more institutions and employers: We are working with the MTC to expand participation in regional pass programs to increase ridership and improve customer service.
Long-term funding strategy
Without adequate funding, the SFMTA will be forced to make significant cuts to Muni services and programs beginning in FY 27-28. Addressing our financial crisis requires ongoing annual internal cost reductions, as well as additional revenue. Learn more about other ways we are working to bridge our budget gap.
The SFMTA’s budget is balanced with a funding plan that includes three sources of revenue to close our deficit, maintain current service and create a stronger future for Muni:
- Ongoing work to find efficiencies and cost savings.
- Participating in regional efficiency work, as outlined in the Connect Bay Area Act.
- Working with external efficiency experts to review best practices and implement structural changes (e.g., more efficient administrative tools).
- Regional revenue measure – the Connect Bay Area Transit Initiative.
- Local revenue measure – the Stronger Muni for All ballot measure.