Transit rally in San Francisco after California might not give $750M loan
Transit rally in San Francisco after California might not give $750M loan
Transit advocates held a rally Monday in order to persuade California to "deliver on its commitment" to provide emergency loan funding to prevent cuts to public transportation.
SAN FRANCISCO - Transit advocates held a rally Monday in order to persuade California to "deliver on its commitment" to provide emergency loan funding to prevent cuts to public transportation.
The rally was organized by members of the Transbay Coalition and attended by state Sen. Scott Wiener (D-San Francisco), San Francisco supervisors, members of SEIU and the BART board of directors among others.
They said they are upset because Gov. Gavin Newsom appears to be going back on a promise to provide a $750-million bridge loan to BART, Muni and other regional transit agencies.
Wiener and Sen. Jesse Arreguin (D-Berkeley), who are negotiating with the state, now say it looks like the funding won't be finalized by Tuesday, the day lawmakers tell us is the last day to submitt legislation for the process to happen in time.
The lawmakers said in a joint statement over the weekend that Newsom’s Department of Finance informed them at the end of last week that it wouldn’t finalize details of the loan before the end of the legislative session.
That means that the transit agencies will have to wait until the 2026 November ballot measure, but if passed, funding from that won't be available until 2027.
AC Transit has an approximate $35-million deficit. In a statement, AC Transit said they had "very limited" information at this time from the governor’s office about the details of any potential funding agreement.
"We have, however, been very open with our riders and the East Bay communities we serve about AC Transit’s $41.5 million operating deficit this fiscal year," AC Transit said. "A bridge loan is essential to supporting current service levels for the more than 3 million people who count on us each month."
AC Transit said that without the bridge loan or another reliable, long-term funding source, the agency may soon "have no choice but to make significant service cuts."
Muni battles a $322-million deficit, and last week, San Francisco Mayor Daniel Lurie proposed raising taxes to cover that gap.
BART is considering ending service at 9 p.m. instead of midnight and trains would come every 30 minutes. Some lines would be cut, as well.
In a statement, the California Department of Finance said that although the transit agencies' need for financial assistance in the 2026-27 budget year "has been known for months" the Newsom administration only received an outline of proposed loan terms from the Legislature "two days ago — still short of a legislative proposal that is necessary to resolve this issue."
"We’re committed to developing solutions that will support riders and transit agencies alike in a timely manner," the department stated.
Wiener said that is not accurate and they have submitted three proposals and the Department of Finance has never submitted their own. Weiner also said the department now told him they can work with the latest proposal.
The governor's office on Monday said they recommitted to the conversation.
"We are working closely with all stakeholders on the parameters of a funding deal," Newsom's office said. "Our shared goal is to agree on the terms of a deal by this fall."
San Francisco Mayor Daniel Lurie said the governor made it clear to him that he knew how important this funding is. Lurie announced at the rally that he and other representatives will meet with the governor's office on Tuesday or Wednesday to continue the conversation.