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

California State Senators Wiener and Arreguín propose establishing a Transportation Revenue Measure District encompassing Alameda County, Contra Costa County, and San Francisco to generate dedicated funding for Bay Area public transit operations. The district would operate under Metropolitan Transportation Commission governance while maintaining separate legal status.

The legislation authorizes a retail transactions and use tax of approximately 0.5% across the district, with San Francisco permitted to set rates up to 1% in eighth-percent increments. Any tax measure requires voter approval in the November 2026 general election and would remain in effect for 10-15 years. San Mateo and Santa Clara counties may opt to join the district by July 2025.

Tax revenues would fund operations at major transit agencies including AC Transit, BART, Caltrain, and the San Francisco Municipal Transportation Agency. The Metropolitan Transportation Commission would oversee allocations, with up to 10% reserved for regional transit initiatives. Remaining funds would transfer directly to participating counties for public transportation expenses.

The bill mandates independent financial reviews of transit operators receiving funds and requires them to implement identified efficiency measures. An oversight committee would monitor revenue expenditures, while transit agencies must maintain existing funding levels and comply with regional network management policies to remain eligible for allocations. Annual reporting on outcomes and ridership begins in 2028.