by Howard Wong, AIA, Committee Chair
Succinctly: Transit $$$ on the Ballot and in the Budgets
As covered in past Semaphore Transportation Reports, 2026 will possess the angels and demons of transit finances. Like transit agencies across the country, the specter of massive service cuts is complicated by growing local, state, and federal budget crises and political priorities. SF Muni continues to trim costs and seek efficiencies. For short-term transit operating funds, the promised $750 million state loan might include borrowing from long-term capital projects.
For the June 2026 election, SF ballot measures might include a parcel tax, a tax on high CEO pay, and a business-backed tax reform measure. For the November 2026 election, the MTC Regional Transportation Measure would increase sales taxes for a 14-year period in five counties (1% in SF, 0.5% in Alameda/Contra Costa/San Mateo/Santa Clara).
In early 2026, a signature-gathering campaign aims to place the Regional Measure on the ballot as an initiative measure, which requires only 50%+1 to pass. Recent polling shows about 5% support—trending upwards in the last months. However, new funding would not be available until 2027—and might not balance the huge structural deficits of $307-$430 million/year.
SF Downtown Economic Recovery Plan: The Public Transit Nexus
Regional transit, especially BART and Caltrain, can reinforce an international-themed Downtown hub. New San Francisco downtown retail gems show an economic path forward. Practically a regional business plan, a bevy of chic, well-designed, international stores have lured foot traffic—from across the entire Bay Area.
Nintendo and Pop Mart (Labubu art toys) have anchored strategic corner locations—with big glass windows and multi-floor bustle. Stylish Ikea and Saluhall have boosted Mid-Market. Giant Uniqlo will anchor the lively Fourth and Market Streets node. The Bang & Olufsen flagship store brings back luxury audio retail. The beautifully renovated Westin St. Francis’s lobby has a humming European café vibe.
Combined with long-time dynamos (Louis Vuitton, Chanel, Gucci, Bottega Veneta…), more international brands will reinforce San Francisco’s international flavor, luring reimagined name brands into empty storefronts, like the mini-Banana Republic store on Geary Street that concentrates its best goods in a compact space. Regional economic and urban planning needs strategic thinking: coordination, incentives, public realm design, and top-notch regional public transit—branded with an international imagery.
Muni Fares and Fee Increases
To improve customer and voter support, SF Muni and transit agencies have focused on service reliability, added commuter capacity, safety, cleanliness, and fundamentals. Generally, surveys show improved customer satisfaction. But revenue generation is still critical. SFMTA (Muni) is considering increasing parking meter rates (25 cents/hour), late fees for parking citations, meter recovery fees for construction permits, elimination of Clipper Card discounts and the Muni Mobile app, simplification of the cable car fare to a flat $15 pass, and more—as well as potential reductions in select parking fines that do not impact public safety. In total, SFMTA could reduce budget deficits by $30 million over the next two years.
New Next-Generation Clipper Card
Also to improve customer and voter support, Bay Area transit agencies have coordinated regional service improvements with an MTC Transit Transformation Action Plan that aims for a user-friendly and connected regional system (27 Bay Area transit agencies). Progress has been made on mapping, signage, wayfinding, transfers, and funding strategies. A new Clipper Card system, the Bay Area’s electronic transit-fare payment card, will shift to cloud-based payments—eliminating wait times when loading funds, offering discounted transfers between agencies, and accepting contactless credit cards/debit cards/electronic wallets.
