Declaration of Fiscal Emergency

Dear Fellow Employee: As you are undoubtedly aware from my column in our most recent employee newsletter and reports in the media, the San Francisco Municipal Transportation Agency (SFMTA) is grappling with a $128.9 million budget deficit for fiscal year 2010, which begins this July 1. This dire situation is a result of the global economic downturn, a national recession, the elimination of state funding for transit operations and a City budget deficit approaching a half billion dollars.

Accordingly, the SFMTA Board of Directors will be considering a broad range of options to increase revenues and reduce costs.

At its regularly scheduled meeting on Tuesday, April 7 at 2 p.m. in Room 400 in City Hall, the SFMTA Board of Directors will hold a public hearing on proposals to balance the budget. Details of the proposals are available online at www.sfmta.com/sfmtabudget and include: 

Fare and Fee Increases Increases to fares, fees, fines, rates and charges.

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Service Modifications and Reductions Three possible comprehensive options of service cuts, reductions and modifications have been proposed. If approved these cuts, reductions and modifications would most likely be implemented in September.

Specific details of each of these three options can be viewed at www.sfmta.com/sfmtabudget. Please note that the service cuts, reductions and modifications developed in response to the SFMTA’s unprecedented budget deficit do not represent the implementation of the Transit Effectiveness Project (TEP). However, the proposed reductions and modifications have been informed by the data collected and the extensive public input received during the TEP planning phase.

Taxi Medallions  A proposal that 100 taxi Medallions be auctioned on a pilot basis.

Declaration of Fiscal Emergency The April 7 meeting of the SFMTA Board of Directors will also include a public hearing on a possible declaration of a “fiscal emergency” for the SFMTA for the next fiscal year, which would allow the service reductions and fare and fee increases under the California Environmental Quality Act (CEQA).

A “fiscal emergency” means that the agency is projected to have negative funding within one year from the date of declaration. It is important to note that a declaration of fiscal emergency does not by itself implement service reductions or changes to fares, fees, fines, rates and charges that support transit service.

The SFMTA last declared a fiscal emergency in 2005.

The SFMTA also has scheduled additional meetings and opportunities for public comment, which will be held as follows: Tuesday, April 14, 9 a.m.

SFMTA Board of Directors Policy and Governance Committee One South Van Ness Avenue, 2nd Floor Atrium Conference Room Saturday, April 18, 10 a.m. to 2 p.m.

Information Meeting on the SFMTA Budget and Proposed Service and Fare Changes One South Van Ness, 2nd Floor Atrium Conference Room.

Tuesday, April 21, 2 p.m.

SFMTA Board of Directors Meeting Room 400, City Hall Thursday, April 30, 2 p.m.

Special SFMTA Board of Directors Meeting*** on fiscal year 2010 Budget Room 400, City Hall

*** Note: The SFMTA Board of Directors is scheduled to vote on a budget balancing plan at this meeting.

In addition to encouraging attendance at the upcoming meetings, the SFMTA requests public feedback on the budget balancing options and proposed service reductions and modifications via:    

E-mail: sfmtabudget@sfmta.com Telephone: 311 or TTY 415.701.2323 Facsimile: 415.701.4502 U.S. Mail: SFMTA Board of Directors, One South Van Ness Avenue, 7th Floor, San Francisco, CA, 94103

NOTE: All written comments on the declaration of a fiscal emergency on the Board’s April 7 agenda must be received at the SFMTA by Friday, April 10.

Following the SFMTA Board of Directors submittal of an Amended Operating Budget to the Mayor and the Board of Supervisors on May 1, the Board of Supervisors has 30 days to allow it to take effect or to reject the entirety of the Amended Budget with seven or more votes.

I regret that we have no choice but to pursue increased revenues and reduced costs to resolve our budget deficit. Please be assured that I will report back to

you as we advance through this process so that you and your colleagues are fully informed. I also ask that you continue your fine work in operating the City’s surface transportation network, and that you share your ideas for cutting costs and working more efficiently.