SFMTA Approves $3.1 Billion Two-Year Operating Plan to Close Immediate Shortfalls

The San Francisco Municipal Transportation Agency board approved the SFMTA two-year budget last week. It sets a balanced operating plan for the next two fiscal years. The plan totals $1.5 billion for fiscal year 2026-27 and $1.6 billion for FY2027-28. This is reported by the railway transport news portal Railway Supply.

On its SFMTA approved budget page, the agency says the budget closes immediate shortfalls. They are $307 million in FY2026-27. That fiscal year starts on July 1. The FY2027-28 shortfall is $344 million. Also, it includes modest increases in Muni fares, parking fees and fines. In addition, higher Muni ridership and continued fare compliance gains are included in that expectation. Together, those factors are expected to generate about $30 million. That estimate applies to the first fiscal year. The estimate for the second fiscal year is $15 million.

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“This budget charts a path to a sustainable future for Muni and will help everyone who travels around San Francisco,” said SFMTA Director of Transportation Julie Kirschbaum in a press release. “It shows our shared focus on protecting core Muni services through stronger fiscal accountability paired with significant new revenue to replace pandemic relief funds and stabilize our budget.”

SFMTA two-year budget and fiscal stabilization

The operating plan is the first step in a longer-term strategy. That strategy aims to cut costs and stabilize SFMTA’s budget. That effort follows a projection. The deficit was projected to grow to $434 million within five years.

Separately, the board also approved SFMTA’s two-year capital budget. That program allocates $655 million in the first fiscal year. It allocates $546 million in the second. The funding is directed toward infrastructure, facilities, vehicles and technology that support Muni service.

Capital budget includes light-rail vehicle rehabilitation

For example, one part of the capital plan covers light-rail vehicle rehabilitation. It includes repairs and system upgrades for as many as 157 light-rail vehicles.

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