MTC to seek legislature’s approval to place Bay Area Transportation tax measure on 2026 ballot
To generate at least $1 to $2 billion annually; priorities include transit, safer streets and roads, resilience
Commissioners considering a variety of tax options
By John Goodwin & Rebecca Long, Metropolitan Transportation Commission
The Metropolitan Transportation Commission (MTC) on Wednesday, Jan. 24, 2024 voted to pursue legislation in Sacramento this year that would enable Bay Area voters to consider a transportation revenue measure as early as November 2026.
The proposed measure aims to advance a climate-friendly Bay Area transportation system that is safe, accessible and convenient for all. This includes preserving and enhancing public transit service; making transit faster, safer and easier to use; repairing local streets and roads; and improving mobility and access for all people, including pedestrians, bicyclists and scooter and wheelchair users.
The vote was approved unanimously by all members present. There are 21 commissioners with three non-voting members. Oakland Mayor Sheng Tao and San Jose Mayor Matt Mahan who are voting members were both absent during the vote.
State Sen. Scott Wiener of San Francisco earlier this month introduced what is known as a spot bill that will be used as the vehicle for authorizing placement of the proposed measure on a future ballot in each of the nine Bay Area counties. The first opportunity to amend Wiener’s Senate Bill 925 will be in mid-February.
While the Commission has not yet identified a revenue source for the proposed measure, MTC Chair and Napa County Supervisor Alfredo Pedroza noted that he and his colleagues are considering a wide range of options.
“Voters traditionally have supported transportation through bridge tolls or sales taxes. Bridge tolls are not an option in this case and we think it’s smart to look at more than a regional sales tax. We’re proposing a few options so we have enough flexibility and enough time to get it right.”
Tax Options & Projected Revenue
Legislators, and MTC staff and commissioners, will consider several options for generating revenue. These may include a sales tax, an income tax, a payroll tax, a square footage based parcel tax, a Bay Area-specific vehicle registration surcharge with tiered rates based on the value of the vehicle or a regional vehicle-miles traveled charge (VMT) charge subject to prior adoption of a statewide road usage charge not sooner than 2030.
MTC staff recommend raising at least $1 billion to $2 billion per year for robust investments in safe streets and other capital improvements, to improve and expand transit service, and to help Bay Area transit agencies operate their services.
Goals of the Regional Transportation Measure
The revenue measure’s core goal is to advance a climate-friendly transportation system in the Bay Area that is safe, accessible and convenient for all. Focus areas include:
- Protect and enhance transit service. Ensure that current resources are maintained and used effectively; and enhance service frequency and areas served.
- Make transit faster, safer and easier to use. Create a seamless and convenient Bay Area transit system that attracts more riders by improving public safety on transit; implementing the Bay Area Transit Transformation Action Plan; and strengthening regional network management.
- Enhance mobility and access for all. Make it safer and more accessible for people of all ages and abilities to get to where they need to go. Preserve and improve mobility for all transportation system users, including people walking, biking and wheeling.
Proposed Expenditure Categories
- Transit transformation: sustain, expand and improve transit service for both current and future riders; accelerate customer-focused initiatives from the Bay Area Transit Transformation Action Plan and other service improvements that are high priorities for Bay Area voters and riders; and help fund the transition to zero-emission transit.
- Safe streets: transform local streets and roads to support safety, equity and climate goals, including through pothole repair, investments in bicycle/pedestrian infrastructure, safe routes to transit and other safety enhancements.
- Connectivity: fund mobility improvements that close gaps and relieve bottlenecks in the existing transportation network in a climate-neutral way.
- Climate resilience: fund planning, design and/or construction work that protects transportation infrastructure and nearby communities from rising sea levels, flooding, wildfires and extreme heat.
Transportation Measure Highlights
This measure reflects feedback from Commissioners, key legislative leaders and other stakeholders, including:
- Improving transit coordination by strengthening MTC’s role as regional transit network manager;
- A focus on Bay Area Transit Transformation Action Plan (TAP) action items and other customer facing policies that would benefit from a regional approach, such as ambassadors to assist riders and support a safe atmosphere;
- Flexibility in the amount of revenue requested, as well as the way that funding could be generated;
- Flexibility in spending priorities as the region’s needs evolve with time; and
- The “North Star” vision statement, which includes greenhouse gas emission-reduction tools, such as:
- A Transportation Demand Management mandate that encourages Bay Area employees to commute to work in ways other than driving to work alone; and
- A limitation on how money could be spent on highway-widening projects.
Just as MTC commissioners have proposed a range of tax options, so too have they identified multiple expenditure categories.
“We recognize that we’ll be asking voters to take on a heavy lift,” acknowledged Pedroza. “The big lesson from COVID is the need to transform both our transit network and the way we pay to operate it. But we also need to transform our local streets and roads to fix potholes and make the roads safer for walking and biking. We need to improve connectivity and do it in a way that doesn’t encourage people to drive more. And we need to make our transportation infrastructure more resilient to rising sea levels, flooding, wildfires and extreme heat.”
Measure Vision Statement
The Commissioners also adopted the following Vision Statement for the measure: “The Bay Area needs a world-class, reliable, affordable, efficient and connected transportation network that meets the needs of Bay Area residents, businesses and visitors while also helping combat the climate crisis; a public transit network that offers safe, clean, frequent, accessible, easy-to-navigate and reliable service, getting transit riders where they want and need to go safely, affordably, quickly and seamlessly; local roads are well maintained; and transit, biking, walking and wheeling are safe, convenient and competitive alternatives to driving; enhancing access to opportunity, lowering greenhouse gas emissions, strengthening the region’s economy and improving quality of life.”
To learn more about the proposed tax measure click, here. To read the supporting documents considered by the Commissioners click, here.
MTC is the transportation planning, financing and coordinating agency for the nine-county San Francisco Bay Area.
Allen D. Payton contributed to this report.
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Berryessa Station photo MTC tax increase qu mark
