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

Senators Wiener and Arreguín propose establishing a Transportation Revenue Measure District spanning Alameda County, Contra Costa County, and San Francisco to generate dedicated funding for Bay Area public transit operations. The district would have authority to place a retail transactions and use tax measure on the November 2026 ballot, ranging from 0.5% in Alameda and Contra Costa counties to up to 1% in San Francisco.

The legislation requires major transit operators receiving funds to undergo independent financial efficiency reviews and implement identified cost-saving measures. Transit agencies must maintain existing funding levels and comply with regional network management policies focused on improving rider experience and system coordination. An independent oversight committee would monitor revenue expenditures.

The bill creates specific funding allocations for AC Transit, BART, Caltrain, Muni and other operators exclusively for transit operations, with up to 5% directed to regional transit improvement initiatives. Remaining revenues would flow directly to counties for public transportation expenses. San Mateo and Santa Clara counties have the option to join the district by August 2025, with San Mateo's participation noted as the legislative preference.

The Metropolitan Transportation Commission, which would govern the new district as a separate legal entity, must report to the Legislature by March 2026 on how planned transportation projects may impact ridership across the major transit systems. The tax measure would require two-thirds voter approval and, if passed, would take effect January 2027 for a period of 10-15 years.