On April 21, 2026, the San Francisco Municipal Transportation Agency (SFMTA) Board of Directors approved a balanced two-year budget. The full budget includes a two-year operational budget of $1.5 billion for Fiscal Year (FY) 2026-2027 and $1.6 billion for FY2027-2028, and a two-year capital budget of $655 million in FY26-27 and $546 million in FY27-28.
Our balanced budget prioritizes protecting regular Muni and paratransit service in its first year (FY26-27). This first year of the two-year budget includes a $200 million loan from the State of California via the Metropolitan Transportation Commission. The loan closes an immediate shortfall of $307 million in the budget’s first year, which begins on July 1.
- State of California loan: The loan has a 12-year repayment period. There are two years of interest-only payments followed by a 10 -years of both interest and principal payments.
However, the SFMTA’s budget deficit is projected to grow to $434 million by 2030.
Culture of Efficiency
Prior to this two-year budget, the SFMTA has taken aggressive steps to strengthen fiscal management and accountability, resulting in $246 million in cost savings since FY 2020. The approved budget includes additional cost-saving measures, such as the elimination of 89 vacant positions and savings of $20 million from reducing non-labor expenditures, as well as work orders with other departments.
Modest Fare and Parking Changes Generate Revenue
The FY26-27 & FY27-28 budget also includes modest increases to Muni fares and parking fees and fines that, coupled with increased Muni ridership and continued fare compliance gains, are expected to generate approximately $30 million in FY26-27 and an additional $15 million in FY27-28.
Fare Changes
- Year 1 fare changes (FY26-27) would take effect January 4, 2027.
- Year 2 fare changes (FY27-28) would take effect January 3, 2028.
| Policy | Description |
|---|---|
| Simplify Cable Car Ticket | $12 Single Ride Cable Car Ticket AND $18 Cable Car Plus (2 free youth) in Year 1. In Year 2, there is only the $18 Cable Car Plus (2 free youth). |
| Eliminate Clipper Discount (Year 1) + Increase Fares (Year 2) | With tap to pay, there is no longer a need to incentivize use of Clipper. Clipper discount is unnecessary. No increase to cash fares in Year 1. |
|
Daily Fare Capping* *targeted for Summer 2027 |
Provides unlimited daily rides after paying for the first two rides. Improves convenience and benefits low-income house who pay as they go. (Projected revenue loss would be offset by eliminating Clipper discount). |
Parking Changes
| Policy | Description |
|---|---|
| Increase citation late penalty by 10% | Unpaid citations subject to two late penalties and special collections fee. Default policy is to increase $1 or 2%. Recommendation would increase fees 10% |
| Increase meter rates $0.25 in FY27-28 | In spring 2025, SFMTA implemented a $0.25/hour rate increase city-wide with no impact to utilization. Recommendation would implement same increase in FY27-28 |
| Increase meter recovery construction/temporary no-parking permits | Fees are charged to offset loss of meter revenue. Recommendation would raise fees over two years consistent with meter rates. |
| Pass-through online credit card fees | Implement 2.5% per transaction fee. Customers will be provided with option to pay via e-check at no charge. |
| Select Fine Reductions | Reduce fines for violations that do not impact traffic safety, such as curbing wheels. |
Street Safety and Capital Investments
The SFMTA Board also approved the agency’s two-year capital budget, totaling $655 million in year one and $546 million in year two. Among other investments, the capital budget focuses on sustaining the infrastructure, facilities, vehicles and technology that support Muni service as well as improving roadway safety and accessibility for all street users.
Funding for key safety, connectivity and community benefit programs supports measures shown to reduce pedestrian collisions by over 30% on average. The capital investment strategy prioritizes investment in:
- Proactive traffic calming, including school areas, and speed limit reductions
- Core safety treatments for intersections on the High Injury Network
- Quick build community benefit corridor projects
- Community-based transportation plans
- Community-focused programs such as Safe Routes to School
In addition to targeted safety investments, the SFMTA continues to prioritize core maintenance and a state of good repair to keep the transportation system moving safely and reliably:
- Maintaining and upgrading signals
- Critical repairs by agency shops to address urgent needs and community requests
- Phase 1 of the light rail vehicle quarterlife overhaul to rehabilitate up to 157 light rail vehicles and extend the fleet’s life, improving reliability and the passenger experience
Together, these efforts help keep streets safe, support a full range of travel options, and ensure transit service remains reliable and accessible across the city. Learn more about the SFMTA’s capital budget details.