The Facts

Mayor Daniel Lurie is backing a parcel tax ballot measure for November 2026 to address SFMTA's $320 million deficit and prevent devastating Muni service cuts, according to Joe Fitzgerald Rodriguez at The Standard. In a letter to SFMTA Director Julie Kirschbaum obtained by The Standard, Lurie called a parcel tax "the best mechanism to generate the level of funding needed to support Muni service."

Board President Rafael Mandelman and Supervisor Myrna Melgar cosigned the letter, signaling strong political support for the measure. A Muni Funding Working Group report estimates the tax could generate $85 million annually for transit operations.

The Context

This proposal directly addresses the fiscal crisis that forced SFMTA to order system-wide cuts just days ago, including 5-7% budget reductions across all divisions. The agency has already eliminated 500 positions and cut $7 million in routes this year while implementing desperate measures like limiting driver bathroom breaks.

Muni ridership plummeted during the pandemic, creating a deficit expected to grow to $434 million by 2030. Local officials view reliable transit as vital to downtown's recovery, providing access to office buildings, shopping centers, and restaurants that drive the city's economic engine.

The parcel tax is part of a comprehensive funding package that includes a regional sales tax and operational efficiencies, which together could close the full deficit.

The GrowSF Take

While Muni absolutely deserves full funding, asking voters for higher taxes in the current economic environment is risky politics that may backfire. Even if the comprehensive funding package passes, it won't prevent future crises without addressing the underlying fiscal mismanagement that created this crisis.

We support funding Muni, and expect higher taxes to be paired with better performance.