{"id":195568,"date":"2026-02-26T23:23:10","date_gmt":"2026-02-26T23:23:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/195568\/"},"modified":"2026-02-26T23:23:10","modified_gmt":"2026-02-26T23:23:10","slug":"the-real-story-behind-munis-budget-deficit","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/195568\/","title":{"rendered":"The real story behind Muni&#8217;s budget deficit"},"content":{"rendered":"<p>Throughout the fall, a spate of local news articles discussed the looming $307 million Muni budget deficit. Most of the reporting noted that this deficit is just the start; the expected gap is slated to grow over the coming years.<\/p>\n<p>The public and political debate that has carried on around the shortfall focuses on how to stave off potential cuts: What fat can be trimmed to maintain the existing service?<\/p>\n<p>Despite some idealistic intentions, that framework is in fact what put Muni in the financial hole in the first place. Working from a scarcity mindset, namely trying to preserve an already pilfered service, is a losing battle.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"391\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/02\/muni-bus.png\" alt=\"\" class=\"wp-image-158325\"  \/>The pandemic provided an excuse to eliminate lines that Muni officials wanted to cut anyway<\/p>\n<p>To guarantee the service that citizens and workers expect from a city like San Francisco requires a committed vision of the future, one that centers Muni as the public good that it is.<\/p>\n<p>Instead, Mayor Daniel Lurie is pushing private alternatives that directly undermine public transportation.<\/p>\n<p>Muni, the nickname for the San Francisco Municipal Railway, was the first publicly owned and operated transit agency in the country. Dubbed \u201cThe People\u2019s Railway\u201d on opening day December 28, 1912, it was a stark change from the city\u2019s earlier iterations of mass transit, which were privately owned, for-profit horse-drawn carriages.<\/p>\n<p>The 1906 earthquake left the city, and by extension the transit system, shattered. That, in conjunction with corporate consolidation (by 1902 United Railroads acquired ten transit companies) fostered unrest. And violent labor strikes in 1907 eventually resulted in San Francisco voters approving a bond for city-owned transit in December 1909.<\/p>\n<p>By the early 1940s Muni was the dominant transportation service in the city, although there were still some competitors. After WWII, the city acquired the United Railroads Company and merged with Muni.<\/p>\n<p>Sponsored link<\/p>\n<p><a href=\"https:\/\/48hills.org\/2025\/11\/5-quick-ways-to-save-48-hills\/\" target=\"_blank\" aria-label=\"Save 48 Hills fundraiser banner 720\u00d790-4\" rel=\"nofollow noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2025\/11\/Save-48-Hills-fundraiser-banner-720x90-4.jpg\" alt=\"\"   width=\"721\" height=\"91\" style=\" max-width: 100%; height: auto;opacity: 1 !important;\"\/><\/a><\/p>\n<p>In March 1973, the Board of Supervisors adopted a \u201cTransit First\u201d resolution that gave Muni and other transit vehicles priority over private vehicles on the city\u2019s streets. At the time, supporters saw the resolution as a compelling path forward for a city at the leading edge of transit development and service.<\/p>\n<p>More than 50 years later, San Francisco has fallen far behind this lofty goal. To reclaim that post at the forefront of municipal development requires something conspicuously absent from the recent Muni funding discussions.<\/p>\n<p>Throughout my conversations with advocates, riders, former public officials and professors a few themes became abundantly clear: 1) Muni\u2019s funding debate is not new although the size of the deficit is distinct; 2) The pandemic dramatically reshaped the funding debate and offered officials looking to \u201coptimize\u201d (that is, undermine) the agency an opportunity to do so; 3) The agency lacks a clear and compelling vision of the future which results in the regressive, safeguarding approach to funding.<\/p>\n<p>Making matters worse, many city leaders are happy to let private outfits like Uber and Waymo usurp and replace the essential functions of public transit.<\/p>\n<p>Jason M. Henderson, a professor of geography and environment at San Francisco State University, authored Street Fight: The Politics of Mobility in San Francisco in 2013 but many of the book\u2019s details about transit and Muni funding could be pulled from recent headlines. Henderson has been researching, writing and teaching about Muni for years and has been an advocate with local neighborhood associations and planning committees.<\/p>\n<p>\u201cEver since the creation of Muni, going back to 1912 \u2026it was paid for by a property tax. Then in the 1970s, these laws were passed at the state level [Prop. 13] that made it harder to get a simple majority to increase property taxes,\u201d Henderson said.<\/p>\n<p>He also noted that the regional or local tax approach that\u2019s widely being discussed now, while viable, is \u201cthe same old debate.\u201d<\/p>\n<p>\u201cThere were a lot of progressive attempts to create a commercial property tax, maybe a downtown property tax, or maybe just a citywide commercial property tax,\u201d he said.<\/p>\n<p>Dylan Fabris, community and policy manager at San Francisco Transit Riders, outlined the current debate regarding the mayor\u2019s proposal for a three-tiered parcel tax to fund Muni.<\/p>\n<p>The tax would be based on square footage and building usage, with single family homes paying the least and large-scale commercial properties at the top. The tax proposal includes a cap of $400,000 a year for large commercial properties.<\/p>\n<p>Fabris noted that the revenue cap \u201cstymies the amount of revenue you can bring in,\u201d but given some of the gains on the newest proposal, namely the reduction of proposed service cuts and lowering of the multi-family base rate, his coalition supports it.<\/p>\n<p>In the Muni working group convened last summer, six proposals emerged. The vast majority of these strategies included one or both of the following: fare increases and service cuts.<\/p>\n<p>One of the chapters in Henderson\u2019s book details the nature of the debate in the early 2000s and has a striking resemblance to today\u2019s discussion.<\/p>\n<p>\u201cIn 2008 Mayor Newsom convened a blue ribbon panel of local officials and transit experts to address Muni financing. The panel discussed fare increases, parking pricing, and congestion pricing at length, but the idea of a TAD or a new TIDF was dismissed, as it had been by elites for decades.\u201d Henderson writes in Street Fight.<\/p>\n<p>Progressives in the 1980s advocated for both TAD and TIDFs. The former, a transit assessment district, would be an annual property assessment on downtown commercial land that would support Muni operations. The latter, a transit impact development fee, would apply to all new downtown developments and would pay for new buses and trains.<\/p>\n<p>City leadership has, for decades now, shirked the responsibility to support public services like Muni in favor of private enterprise. The debate now about Muni funding mirrors earlier debates as the proposed solutions offer no lasting financial support and are, at best, a band aid on a broken bone.<\/p>\n<p>\u201cOver the past couple years, we\u2019ve been really focused on this issue of transit funding because even before the pandemic, Muni was operating at a deficit, they were heading towards this budget deficit that we now essentially find ourselves in and the pandemic just exacerbated that,\u201d Fabris said.<\/p>\n<p>Henderson, Fabris and former District 5 Supervisor Dean Preston all pointed to the 2020 pandemic as a kind of inflection point for Muni. The crippling combination of declining ridership with some city officials\u2019 desire for the business-like \u201coptimization\u201d of Muni resulted in worse service, higher fares, and left the agency struggling to stay afloat.<\/p>\n<p>\u201cBefore the pandemic, the city was studying congestion pricing as a way to find a reliable annual source of revenue for operations,\u201d Henderson said, noting the success some international cities have had with this kind of pricing adjustment.<\/p>\n<p>Preston, who was supervisor during the pandemic, said the unprecedented federal support for social programs and transit during that period was threatening to billionaires and big businesses in San Francisco. He pointed to a free Muni pilot program that he put forward during the pandemic as an example. The city had the money for a two-month program, and while it passed the Board of Supervisors, then-Mayor London Breed vetoed it.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"667\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/02\/48hillspreston2.jpg\" alt=\"\" class=\"wp-image-184555\"  \/>Former Sup. Dean Preston wanted to try free Muni; the mayor said it might be too successful<\/p>\n<p>\u201cThere were some short term concerns about if it works too well and lots of people get on your buses are you ready to handle that, which seems to me to be a great problem but I think, as with a lot of pandemic programs, for the austerity crowd, the billionaires and politicians that they have influence over, they were concerned about creating new normal on certain things,\u201d Preston said in an interview.<\/p>\n<p>Preston conceded that people could get used to free Muni if the pilot program was adopted fully. That would require finding lasting financial support that doesn\u2019t come from the feds or even the state, which would require city politicians to upset the delicate balance between the scores of San Francisco\u2019s wealthy elites and City Hall.<\/p>\n<p>The pandemic bolstered a kind of scarcity mindset among city officials. Jeff Tumlin, who was the director of transportation from December 2019 until December 2024, was instrumental in this scarcity mindset. During the pandemic Tumlin <a href=\"https:\/\/48hills.org\/2021\/07\/muni-director-talks-about-cutting-lines-and-changing-focus\/\" rel=\"nofollow noopener\" target=\"_blank\">hired<\/a> transit consultant Jarrett Walker, for $185,000, to help \u201cdefine and build consensus toward a post-COVID network.\u201d<\/p>\n<p>Critics say what Tumlin and Walker orchestrated, using the pandemic as a pretext, were widespread cuts to critical Muni lines while delaying any potential timetable for their return.<\/p>\n<p>The city\u2019s charter requires Board of Supervisors approval for abandonment of any Muni line. However, it doesn\u2019t require the same legislative approval for the \u201csuspension\u201d of lines, as was the case during the pandemic.<\/p>\n<p>More glaringly, many of the lines that were suspended had already been targeted for abandonment by Tumlin\u2019s office. Thus, Tumlin and Walker used the volatility and uncertainty of the pandemic as an opportunity to cut critical infrastructure in the city.<\/p>\n<p>Preston shared a story where Tumlin\u2019s office showed him a list of lines in December 2019 they viewed as duplicative or unnecessary and wanted to cut. Preston pushed back at the time and the cuts were staved off.<\/p>\n<p>When the pandemic hit, those same lines were on the chopping block.<\/p>\n<p>\u201cDuring Covid in 2020, they got rid of all kinds of routes, it was temporary. Then they tried to phase some back but there were certain ones where there was no timeline, no plan to bring them back so after about a year or so of that, I realized that it was a plan defacto to kill these lines. When I looked back and the more I learned about it, most of these lines that weren\u2019t back yet were lines that had been on the hitlist when they did other transit effectiveness surveys and projects in the past,\u201d Preston said.<\/p>\n<p>With Muni\u2019s robust service on the cutting room floor, what do city officials want in its place? Mostly private enterprise.<\/p>\n<p>In May, Uber announced its revelatory <a href=\"https:\/\/www.uber.com\/en-US\/blog\/route-share\/\" rel=\"nofollow noopener\" target=\"_blank\">Route Share<\/a> program as a supplemental, privatized bus. Uber CEO Dara Khosrowshahi <a href=\"https:\/\/www.theverge.com\/decoder-podcast-with-nilay-patel\/672087\/uber-dara-khosrowshahi-waymo-ai-bus-transit-tesla-self-driving\" rel=\"nofollow noopener\" target=\"_blank\">admitted<\/a> that the concept was \u201cinspired by the bus\u201d to some degree.<\/p>\n<p>In June, Lurie announced $7 million in Muni <a href=\"https:\/\/www.sfmta.com\/projects\/summer-2025-muni-service-cuts\" rel=\"nofollow noopener\" target=\"_blank\">budget cuts<\/a>. Two months later, Lurie announced the formerly car-free market street would open to <a href=\"https:\/\/www.sf.gov\/news-mayor-lurie-announces-next-phase-of-waymo-operations-on-market-street-to-drive-downtowns-comeback-with-new-transportation-options-coming-to-market-street-august-26\" rel=\"nofollow noopener\" target=\"_blank\">Waymo passenger service<\/a>, once again framing privatization as innovation.\u00a0<\/p>\n<p>Private enterprise serves as a useful alternative for a mayor that views his city as a fortune 500 company. Funding Muni successfully, finding revenue sources that allow the agency to map out the next five or ten years, requires bold political leadership that will wretch the money from the city\u2019s wealthiest business owners\u2014many of whom rely heavily on public transportation to support their businesses. Workers at Salesforce, Slack, SoFi and countless others flock downtown on the 14, the 5 or the 38 every morning.<\/p>\n<p>Preston noted that one of the biggest issues he saw among city leadership was a failure to \u201cgo big in funding public transit.\u201d Simply put, going big just means using the political power of city hall to make the city\u2019s billionaires pay their fair share.<\/p>\n<p>\u201cAnd so when you\u2019re actually an advocate for let\u2019s not cut Muni, let\u2019s look at how we grow it, let\u2019s have a vision for dramatically expanded public transportation, you run into a brick wall. It\u2019s not the brick wall of voters \u2026 it\u2019s the brick wall of austerity types who want to look at ways to cut costs and cut service, privatize service and not grow it. So that\u2019s the biggest barrier.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Throughout the fall, a spate of local news articles discussed the looming $307 million Muni budget deficit. 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