San Francisco Bay area: local revenue measure: transportation funding.

Senators Wiener and Arreguín's proposal to establish a Transportation Revenue Measure District in the San Francisco Bay Area would create a new taxation and funding framework for regional public transit operations. The district would encompass Alameda County, Contra Costa County, and San Francisco, with San Mateo and Santa Clara counties eligible to opt in by July 2025.

The legislation authorizes a retail transactions and use tax of 0.5% across most of the district, while allowing San Francisco flexibility to set rates between 0.5% and 1% in eighth-percent increments. Any tax measure would require voter approval in November 2026 and would remain in effect for 10-15 years. The Metropolitan Transportation Commission would allocate portions of the revenue to AC Transit, BART, Caltrain, and Muni specifically for transit operations, with remaining funds distributed to counties for local transportation needs.

Transit operators receiving funds would undergo independent financial efficiency reviews and must submit implementation plans based on the findings. The legislation requires operators to maintain existing funding levels and comply with regional network management policies aimed at improving the customer experience. An independent oversight committee would monitor expenditures, while the Commission must provide annual reports to the Legislature on outcomes and ridership trends.

The bill mandates a March 2026 report from the Commission forecasting how planned transportation projects, particularly rail connectivity improvements, could affect ridership across the major transit systems. This analysis would inform implementation of the revenue measure and associated transit improvements.