The Metropolitan Transportation Commission last week unanimously approved the first phase of the Financial Efficiency Review, an independent audit of public transit agencies looking to receive funds from a proposed regional sales tax measure under Senate Bill 63 in November.
The audit found the Alameda-Contra Costa Transit District, BART, Caltrain and the San Francisco Municipal Transportation Agency collectively cut over $1 billion in costs since fiscal year 2019-2020 — one of the key requirements transit agencies must meet under state law to qualify for new funding.
Members of the Financial Efficiency Review Independent Oversight Committee met Friday afternoon to discuss the progress transit agencies made in cutting costs and ensuring the organizations spend funds responsibly. Committee members thanked staffers for their work on the report and offered suggestions on data they want to see in future versions.
Independent analysts said workforce adjustments, system optimizations and contract savings across the four agencies drove the reduction in operating costs. BART led all agencies with $516 million in savings, followed by SFMTA at $300 million, AC Transit at $200 million and Caltrain at $76 million.
California lawmakers passed SB 63, also known as the Connect Bay Area Act, in 2025, creating the Public Transit Revenue District across five counties — Alameda, Contra Costa, San Mateo, San Francisco and Santa Clara. The law authorized placing a regional sales tax measure on November’s ballot that, if voters approve it, would generate additional revenue for transit agencies across the region.
If voters pass the measure, the independent committee would launch the second phase of the Financial Efficiency Review. Analysts would take a deeper look into the finances and operations of each transit agency beyond the scope of the initial review and deliver further recommendations to each agency.
Transit advocates welcomed the progress agencies made while acknowledging the systems still need more changes to stay accountable and transparent without cutting service. Sebastian Petty with SPUR, an urban planning and policy center, said the path to stronger financial footing for public transit is long, but reviews like this one move things in the right direction.
“The goal is to not cut transit service,” Petty said. “There are ways agencies can save money by cutting a lot of service but that to some degree defeats the purpose.”
Jeff Cretan, a spokesperson for the campaign supporting the Connect Bay Area measure, said the commission’s approval marks an important step in building public trust that transit agencies spend money appropriately.
“It’s about giving confidence in the system,” Cretan said. “People love transit as a public good, but they have to know it’s working for them.”