San Francisco Bay Area voters have backed a new regional sales tax projected to raise nearly $1 billion a year for 14 years, with supporters saying the increased income could be a lifeline for transit agencies that warned of service cuts. Measure RTM passed with an average of 64 percent support across five counties, and San Francisco voters separately approved a property tax to fund the city's MUNI system.
The regional measure adds a 0.5 percent sales tax in Alameda, Contra Costa, Santa Clara and San Mateo counties, and a 1 percent tax in San Francisco, costing residents outside the city $8 a month, according to 350 Bay Area, a climate justice group that supported the measure. Support was strongest in San Francisco at 79.2 percent and weakest in Santa Clara County at 55.3 percent, according to county officials as of Thursday.
The tax is intended for BART, Oakland's AC Transit, Muni, Caltrain and other systems as they struggle with a post-pandemic drop in ridership. BART faced a $375 million budget deficit for 2027 and had warned that, without the funds, starting in January 2027, it would cut train hours by 63 percent and raise parking and rider fees by 30 percent; roughly 600 employees would be laid off with benefits deferred, among other changes.
Supporters said the increased income could be a lifeline for BART, Caltrain and other regional public transit systems. "Transit is worth the investment," BART said in a statement after the measure passed. Opponents questioned the transit system's spending practices. The Contra Costa County Taxpayers Association argued before the vote that BART should pause or cancel overpriced non-essential expenses, such as its $12.2 billion San Jose expansion, before increasing tax revenue. "People want better transit, and it's important to have a functioning transit system in the Bay area," said Steven Greenhut of the Pacific Research Institute's Free Cities Center. "But my problem is that, with public transit agencies in general, it's just the way they spend their money."
BART said the deficit reflects a severe decline in ridership rather than poor spending. "Remote work has changed how Bay Area residents live, work and travel," the agency said in a financial report this year. Ridership remains at about half its pre-pandemic average in 2026, according to agency data, and the share of BART's operating budget paid for by fares has fallen from roughly 71 percent before the pandemic to 32 percent this year. Spokesperson Christopher Filippi said the agency had saved $526 million in operational costs between 2020 and 2025. He said it had eliminated more than 670 vacant positions, had a strategic hiring freeze and a freeze on management salaries, and was running shorter trains to save energy costs. "We're really holding the line when it comes to cutting costs," he said.
In a separate vote, 74.4 percent of San Francisco voters approved a 15-year parcel tax on property owners expected to generate $177 million for MUNI, which includes the city's streetcars. Greenhut said BART was a useful system but called for political pressure on transit systems to become more efficient. "How about some political pressure on these systems to be more efficient, to better serve customers?" he said.
Analysis
Why This Matters
- The tax averts service cuts, higher fees and roughly 600 layoffs BART had warned would begin in January 2027.
- It adds to the cost of living across five Bay Area counties, including a 1 percent sales tax in San Francisco and higher property taxes.
- The measure tests whether public transit funded heavily by fares can survive a work-from-home economy.
Background
The Bay Area's transit systems relied on fare revenue more than most, and that base collapsed after the pandemic as remote work took hold. BART, once about 71 percent funded by ridership fees, now covers just 32 percent of its budget from fares, and the metro area ranks among the highest nationally for work-from-home rates. The agency had already cut costs for years before seeking new tax revenue.
Key Perspectives
Supporters, including BART and 350 Bay Area: The tax is a lifeline for struggling systems; "transit is worth the investment," BART said. The deficit stems from a ridership collapse driven by remote work, not from poor spending.
Critics, including the Contra Costa County Taxpayers Association and Steven Greenhut: Agencies should cut overpriced non-essential spending such as the $12.2 billion San Jose expansion and become more efficient before asking voters for more money.
What to Watch
- Whether BART's projected 2027 deficit narrows now that the funds are approved, and whether the planned service cuts are dropped.
- Ridership trends: whether figures continue climbing toward pre-pandemic levels.
- The San Jose expansion's budget and timeline, which drew repeated criticism during the campaign.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedBay Area voters approved a regional transit tax expected to raise nearly $1 billion a year.The Center Square California: “The new sales tax is expected to generate nearly $1 billion annually for the next 14 years.”
- SupportedMeasure RTM passed with an average of 64% support across five counties.The Center Square California: “Across the five counties, Measure RTM received an average of 64% of votes, according to county officials as of Thursday.”
- SupportedSupporters said the tax could be a lifeline for transit agencies that had warned of major service cuts if it failed.The Center Square California: “Supporters of the tax say the increased income could be a lifeline for the struggling Bay Area Rapid Transit, Caltrain and other regional public transit systems that had warned of major service cuts if the measure were not passed.”
- SupportedThe tax is 0.5% in four counties and 1% in San Francisco; 350 Bay Area says it will cost residents outside San Francisco $8 a month.The Center Square California: “The tax is 0.5% in all the counties, except for San Francisco, which will see a 1% tax. The tax will cost residents outside of San Francisco $8 per month, according to 350 Bay Area”
- SupportedSupport was highest in San Francisco at 79.2% and lowest in Santa Clara County at 55.3%.The Center Square California: “Santa Clara County showed the least support for the measure at 55.3% of voters in favor, while San Francisco, with 79.2% of voters, overwhelmingly backed the move.”
- SupportedBART faced a $375 million deficit for 2027 and warned that without the measure it would cut train hours by 63%, raise parking and rider fees by 30%, and lay off roughly 600 employees with benefits deferred.The Center Square California: “Without the additional funds from Measure RTM, BART had said that starting in January 2027, operations would be cut by 63% in train hours. Parking and rider fees would rise by 30%, and roughly 600 employees would be laid off with benefits deferred, among other changes, BART warned.”
- SupportedBART said, “Transit is worth the investment,” in a statement after the measure passed.The Center Square California: ““Transit is worth the investment,” read a BART statement after the regional ballot Measure RTM passed.”
- SupportedSteven Greenhut said, “People want better transit, and it's important to have a functioning transit system in the Bay area,” and criticized how public transit agencies spend their money.The Center Square California: ““People want better transit, and it's important to have a functioning transit system in the Bay area,” said Steven Greenhut, a senior fellow at Pacific Research Institute’s Free Cities Center. “But my problem is that, with public transit agencies in general, it’s just the way they spend their money."”
- SupportedBART said, “Remote work has changed how Bay Area residents live, work and travel.”The Center Square California: ““Remote work has changed how Bay Area residents live, work and travel,” read a BART financial deficit report from earlier this year.”
- SupportedChristopher Filippi said, “We're really holding the line when it comes to cutting costs.”The Center Square California: ““We're really holding the line when it comes to cutting costs,” Filippi told The Center Square before the election.”
- SupportedGreenhut said, “How about some political pressure on these systems to be more efficient, to better serve customers?”The Center Square California: ““But how about some political pressure on these systems to be more efficient, to better serve customers?””
- SupportedSan Francisco voters approved a 15-year parcel tax expected to generate $177 million for MUNI, which includes the city's streetcars.The Center Square California: “Locally, 74.4% of San Francisco voters approved an additional parcel tax on property owners over the next 15 years to increase funding for the city’s MUNI public transit system, which includes the city’s well-known streetcars. The tax is expected to generate $177 million for the system.”