This letter supports the budget agreement between the California Assembly and Senate, which would provide a loan for Bay Area transit operators facing near-term operating shortfalls and restore other relief funding, amounting to $1.85 billion. It also urges the Governor to honor existing public transit funding commitments and to commit to supporting public transit service in the emerging Cap-and-Invest negotiations.

The Legislature and Administration have signaled that they would like to reauthorize the Cap-and-Trade program in 2025, as the program expires in 2030 and to reduce volatility in auction proceeds. SPUR's believes that the reauthorization of the Cap and Trade is an opportunity for the state to provide more predictable funding for transit operations, which would in turn help the state meet its climate goals. This letter provides five ideas to restructure the public transit programs that are funded by Cap and Trade revenues through the Greenhouse Gas Reduction Fund.

The Bay Area's four largest transit operators --Muni, BART, Caltrain, and AC Transit--face severe and imminent fiscal cliffs that would trigger significant service cuts. This would undermine downtown San Francisco's fragile economic recovery, erode the Bay Area's economic competitiveness, and be detrimental to the region and state's economy and financial health. More than 50 of the city's businesses and large employers signed-on to a letter organized by SPUR, Bay Area Council, and the San Francisco Chamber of Commerce to the Governor and Legislators requesting funding in this year's budget to ensure transit can continue playing a vital role in San Francisco and the region.

Public transit is essential for California to meet its climate goals, solve the housing shortage, make cities more affordable, and continue being an engine of economic prosperity, SPUR is leading a multi-sector coalition that is advocating for $2 billion in new, flexible funding for public transit over two years beginning in FY 25-26, championed by Senator Arreguìn and Assemblymember Gonzalez. Over 110 organizations across the state joined together to call on the Governor and legislators to provide emergency relief to public transit in this year's budget.