San Francisco voters approved a new parcel tax to keep Muni running, while a separate five-county regional sales tax measure passed to bring nearly $1 billion annually to Bay Area transit agencies.Voters overwhelmingly approved San Francisco's Proposition H and the five-county Regional Measure RTM T uesday, as KQED reports. Regional Measure RTM was leading with 61.6% of the vote across five counties, while San Francisco's Proposition H was passing with approximately 72.5% support. The results were welcomed by transit advocates, elected officials, and business groups that had spent months campaigning for the measures.The regional measure, backed by the Connect Bay Area coalition, will impose a 0.5% sales tax in Alameda, Contra Costa, San Mateo, and Santa Clara counties, and a 1% tax in San Francisco for 14 years. It is expected to generate close to $1 billion annually for BART, Muni, Caltrain, AC Transit, San Francisco Bay Ferry, and other local transit providers. The money will support existing service levels, as well as fare discounts, accessibility improvements, and wayfinding programs.According to Mission Local, San Francisco's Prop H will generate an estimated $177 million annually for Muni over 15 years through a parcel tax based on property type and size. Annual rates start at $129 for single-family homes, $249 for multifamily residential properties, and $799 for commercial properties.Without the new funding, transit agencies had warned of significant reductions. BART had reportedly considered closing as many as 15 stations, cutting service hours by 70%, and ending evening train service. Muni's contingency plans included eliminating up to 20 routes, reducing service on major lines, ending service at 9 pm, and laying off as many as 2,100 workers. Caltrain had also warned it could close roughly one-third of its stations and eliminate weekend service, while AC Transit faced a potential 16% service reduction.Jeff Cretan, spokesperson for Connect Bay Area, called the early results an "incredible" victory.“This is a huge win for public transit,” Cretan said, speaking to KQED. “I think these results show that people believe in the importance of our buses and trains running to get people to work, to get seniors to appointments and to get kids to school. All of that matters for the Bay Area to really thrive.”San Francisco Mayor Daniel Lurie also celebrated the results, saying businesses, labor unions, transit advocates, and elected officials had come together around the need to preserve Muni. BART General Manager Bob Powers credited improvements to the rider experience, including the agency's new fare gates and better on-time performance, with helping build public support.The measures emerged from separate signature-gathering campaigns led by business interests, transit advocates, labor unions, and environmental groups. As Mission Local reports, Prop H received more than $5 million in contributions from San Francisco businesses, including Anthropic, OpenAI, Airbnb, Visa, and Ripple. Supporters of RTM reportedly raised more than $7.5 million, with contributions from Salesforce, Meta, and Genentech.Though backed by many of San Francisco's political leaders, Prop H was advanced as a citizen-led initiative rather than a government-sponsored measure, as SFist reported previously. That distinction allowed it to qualify for the ballot with a simple majority rather than the two-thirds vote required for special taxes placed on the ballot by local governments.Both measures faced little organized opposition spending, although critics reportedly questioned whether the agencies had done enough to address their financial problems. Opponents of RTM argued that transit officials were overstating the severity of potential cuts to pressure voters into approving the tax, while raising concerns about insufficient financial oversight. Critics of Prop H similarly argued that the SFMTA could make budget reductions without cutting service.The transit agencies' financial problems stem from years of reduced ridership and fare revenue following the pandemic, when remote work and the loss of downtown commuters significantly affected transit systems across the region. Billions in temporary federal and state assistance helped agencies maintain service, but that funding has been running out.As SFist reported earlier this year, the SFMTA received a portion of a $590 million state loan package for Bay Area transit agencies. The agency also announced modest fare increases and higher parking fines over the summer in order to generate additional revenue.Per KQED, under the state law authorizing RTM, participating transit agencies must undergo financial efficiency reviews to identify potential savings. Tax revenue is expected to begin flowing to the agencies next year.Related: Annual Parcel Tax Measure to Fund Muni Makes It Onto November Ballot ...read more read less