Bay Area voters approve Measure RTM to fund transit agencies
By Tim Fang
San Francisco Bay Area voters approved a regional sales tax measure to fund transit agencies, amid concerns about major cuts, according to election data.
The proposition, known as the Regional Transit Measure, or RTM, was voted on in Alameda, Contra Costa, San Francisco, San Mateo and Santa Clara counties. RTM qualified for the ballot after the legislature and Gov. Gavin Newsom authorized the proposal and supporters submitted more than 300,000 signatures.
The approval means a 0.5% sales tax is set to go into effect in Alameda, Contra Costa, San Mateo and Santa Clara counties.
In San Francisco, a 1% tax will be levied to provide additional support for Muni. San Francisco voters also were considering Proposition H, a parcel tax that would also fund Muni through 2042. As of Wednesday morning, preliminary results showed Prop. H with a large lead, with more than 72% of voters supporting.
According to SFMTA officials, Prop. H would levy a $129 tax on single family homes in the city, with multi-family residences, larger homes and non-residential properties paying more. The tax would be adjusted annually for inflation. Prop. H is expected to raise $150 million annually, the SFMTA said.
Supporters of Measure RTM said the tax is needed as BART, Muni, Caltrain, AC Transit and other agencies are facing looming deficits, as federal relief funding dating back to the start of the COVID-19 pandemic runs out. The agencies warned about major service cuts without the RTM funding.
In a statement on Wednesday morning, BART said it was grateful to voters for approving Measure RTM, but noted that the agency’s financial challenges remain.
“Measure RTM prevents station closures and dramatic service reductions, but it does not eliminate BART’s financial challenges,” the statement said. “Taxpayers and riders are doing their part, and we must continue to do ours. Sales tax revenue will provide BART an estimated $310M annually beginning in FY28, leaving an annual structural shortfall for BART to close. We are committed to greater financial discipline, efficiencies, and meaningful changes in how we operate.”
“Thanks to this measure, AC Transit is expected to receive approximately $55 million annually over the next 14 years,” Diane Shaw, AC Transit board president said in a statement. “Every voter-approved dollar will be managed with strict financial oversight and accountability to ensure funds are invested where they will provide the greatest public benefit.”
“San Franciscans and voters across the Bay Area made it clear that Muni and transit is worth the investment,” SFMTA said in a statement Wednesday morning. “We are deeply grateful to everyone for supporting both Proposition H and the Regional Transit Measure. These public investments will strengthen Muni and our Bay Area transit partners, and ensure that we can continue to provide safe, reliable, and frequent transit service.”
“Voters have made a powerful statement about the importance of public transportation to our region’s future,” said Carolyn Gonot, VTA general manager/CEO. “This result demonstrates that people understand the essential role transit plays in connecting residents to jobs, schools, healthcare, and opportunity. We are grateful for their trust and support. RTM provides resources to strengthen service, improve reliability, and invest in innovations that will help VTA meet the transportation needs of future generations.”
According to BART officials, structural deficits are expected to range from $350 million to $400 million per year beginning in Fiscal Year 2027. The agency approved an “Alternative Service Plan” that would have closed up to 15 of the system’s stations, end daily service at 9 p.m. and make other cuts if the measure had not passed.
The measure is expected to provide about $1 billion a year to the transit agencies.
Supporters of the measure included Democratic Reps. Nancy Pelosi, Ro Khanna, Sam Liccardo, John Garamendi, Kevin Mullin and Lateefah Simon. Dozens of local officials, including San Francisco Mayor Danie Lurie and Oakland Mayor Barbara Lee, are also in support, along with SEIU Local 1021, which represents hundreds of BART and SFMTA workers.
Meanwhile, opponents of Measure RTM argued that Bay Area transit agencies already receive around $6 billion a year in taxes, tolls and government grants.
Opponents also noted the new tax rates if the measure is approved. In San Francisco, the sales tax rate would be at 9.625%, the rate in San Jose would be 10.5%, and in Oakland the rate would be at 11.25%.
Groups that opposed the measure include former BART Board Director Debora Allen, former state Sens. Steve Glazer and Quentin Kopp, along with the San Francisco Taxpayers Association, Alameda County Taxpayers Association, Contra Costa Taxpayers Association and Silicon Valley Taxpayers Association.
Allen also argued that transit agencies should face strict financial reforms – such as bankruptcy or state oversight – rather than relying on a blank check. She said in a statement on Wednesday Senate Bill 63, which enabled legislation for Measure RTM, lacks proper oversight of the funds to be generated.
“SB 63 was [the authors’] opportunity to deliver meaningful, independent oversight in exchange for asking voters to raise sales taxes in five counties. Instead, they created an oversight process that lacks meaningful independence and enforceable financial reforms,” Allen said. “The Legislature had the opportunity to demand real accountability before committing billions in taxpayer dollars. It failed. That is why I opposed Measure RTM.”
