The San Francisco City Charter requires that the SFMTA submit a two-year, balanced budget in even-numbered years. The budget should outline how the agency will allocate its operating and capital resources for the next two years.
We want your feedback - take our survey
The Challenge
Transportation is vital to San Francisco’s livability, vitality and economic recovery. Unfortunately, we are up against the largest budget deficit we have ever faced. The pandemic decimated the city's tax base by hollowing out downtown. Relief funding and other revenue sources have dried up.
The Stakes
This leaves the SFMTA with a budget deficit of $307 million beginning July 2026. That deficit is expected to grow to $434 million by July 2030. We will have to make dramatic changes to Muni service and programs if we are unable to fill these gaps.
The Solution
Continued cost-savings and transit funding measures. To protect the transportation services local communities depend on, we:
-
Took proactive steps to develop funding strategies
-
The Controller’s Office led and facilitated the Muni Funding Working Group to gather public input, identify solutions and provide recommendations to address the funding gap. This process began 1.5 years earlier than the typical start of public engagement for budget planning.
-
Members overwhelmingly supported addressing the deficit through revenue-raising options. This feedback is informing our work to balance the budget.
-
-
Work every day to cut costs and drive efficiencies
-
We have already reduced what would have been a $440 million deficit in FY 2026-27 to $307 million through personnel savings, surgical Muni service reductions and transit priority upgrades.
-
-
Identify transit funding measures critical to maintaining Muni service
-
Driving efficiencies and reducing costs will not be enough to save Muni.
-
Addressing the funding gap will require two transit funding measures – one regional measure and one local measure.
-
We will share more information on this page in the coming months.
-
Budget Development Process
To establish the two-year budget, SFMTA staff develop a proposed revenue and expenditure plan for the coming two-year cycle for the Operating and Capital Budgets. The SFMTA Board of Directors discusses the budget over the course of numerous public board meetings. They must approve and present the budget to the Mayor by May 1of each even-numbered year.
The City Charter outlines formulas that determine the level of funding allocated to the SFMTA from the city's General Fund. If the proposed budget is within the defined funding levels, the Mayor must forward the budget to the Board of Supervisors as proposed. The Board of Supervisors may allow the SFMTA budget to take effect without any action or it may reject the budget.
Community Engagement
We encourage you to take our community survey and let us know your priorities for transportation in San Francisco. Give your input on services most essential to maintain.
In 2026, we will be hosting community meetings about the SFMTA budget. At these meetings, staff will present our budget proposals, discuss the agency’s funding needs and describe the community input received through the survey.
The SFMTA Board of Directors will also hold hearings in April 2026 to discuss its two-year budget, including proposals about fares, fees, fines and transit services.