SFMTA cost-savings strategies have been approved by the board of the San Francisco Municipal Transportation Agency following a regional financial efficiency review.

SFMTA cost-savings strategies approved by board
SFMTA oversees Muni light-rail, bus, street car and cable car services.
Photo: San Francisco Municipal Transportation Agency

The measures were adopted last week⁠ after recommendations from the financial oversight committee of the Metropolitan Transportation Commission, the planning, financing and coordination agency for the nine-county San Francisco Bay Area.

SFMTA cost-savings strategies follow regional review

In May, the committee approved the Bay Area Financial Efficiency Review⁠, or FER. The review identified steps that SFMTA, Bay Area Rapid Transit, AC Transit and Caltrain could take to improve operating efficiency, service and revenue sourcing.

Julie Kirchbaum, SFMTA director of transportation, said in a press release:

“[The board] has reinforced our ongoing commitment to fiscal responsibility,”

She added:

“Finding new revenue sources and managing public funds responsibly are vital to securing the agency’s long-term financial health and stability. Smart spending and delivering excellent customer experience can happen at the same time.”

Fare, parking and service measures included

SFMTA’s adopted recommendations include stronger fare compliance and enforcement, higher parking revenue, a review of the zero-emission bus transition program, and an examination of service schedules to optimize staffing.

The agency also approved measures to improve service reliability, right-size the light-rail fleets on the K and M lines, pursue larger contract renewals, and expand the Clipper BayPass program to increase ridership.

According to SFMTA officials, approval of the FER recommendations positions the agency to build on prior cost-saving strategies launched in response to economic pressures and COVID-19-related changes in travel patterns.

Since 2019, SFMTA has achieved about $250 million in savings. The agency said those savings came through the elimination of vacant positions, strategic service reductions, transit priority improvements and the cancellation of certain planned one-time expenditures.

The FER process is tied to Senate Bill 63 rather than a standalone SFMTA review. MTC says the first phase covers AC Transit, BART, Caltrain and San Francisco Muni, and documents more than $1 billion in cost-saving measures across the four agencies from July 2019 through June 2025. The same framework requires the operators to adopt formal policy or budget actions by July 1, 2026, which makes SFMTA’s board vote part of a regional financial-efficiency process. (mtc.ca.gov⁠)

BART and Caltrain have also approved the FER recommendations.