LAWMAKERS GREENLIGHT SENATE BILL 63 – SUSTAINABLE TRANSIT FUNDING NOW HEADS TO NEXT PHASE

SB 63 can help close AC Transit’s projected $74 million budget gap for fiscal year 2026–27

OAKLAND, Calif. – OAKLAND, Calif. – The Alameda-Contra Costa Transit District (AC Transit) applauds the foresight and support of California lawmakers following the approval of the Connect Bay Area Act (Senate Bill 63). SB 63 creates a Public Transit Revenue Measure for five Bay Area counties and now moves to collecting voter signatures.

If enough signatures are gathered, the measure will qualify for the November 2026 ballot, giving voters the opportunity to decide on a sales tax of half a cent in Alameda, Contra Costa, Santa Clara, and San Mateo counties, and one cent in the City and County of San Francisco.

The Public Transit Revenue Measure would create a sustainable funding stream that protects AC Transit and other Bay Area transit systems from service reductions that disproportionately impact transit-dependent riders, limit workforce mobility, increase traffic congestion, and degrade regional air quality.

“Despite fare adjustments, significant internal cost-cutting measures, and limiting hiring, our transit district is using reserves this fiscal year to cover a $41.5 million deficit,” said AC Transit Board President Diane Shaw. “SB 63 offers a beacon of hope during these financial challenges. By providing new revenue, it has the potential to prevent unprecedented service cuts, as our fiscal crisis is projected to worsen, with a $74 million shortfall forecasted in fiscal year 2026–27.”

More than 3 million riders rely on AC Transit each month. Last month, AC Transit implemented the Realign bus network, making changes to 103 of 123 bus lines – 85% of the network – through frequency adjustments, the introduction of new lines, and the discontinuation of some routes to maximize limited resources.

Realign is designed with equity at its core to right-size the network to hybrid and remote work trends, shifting ridership patterns, and ongoing fiscal challenges. Without the support of SB 63, AC Transit could face service reductions of up to 37%, operating at less than half of pre-pandemic levels – a scale of service that is simply not sustainable.

SB 63 would work in tandem with the proposed Bay Area Transit Bridge Loan. It’s called a “bridge loan” because it closes the gap between the current funding shortfall and the more reliable revenue source anticipated from SB 63. This emergency $750 million loan package requires repayment by AC Transit and other Bay Area transit systems. The goal of the bridge loan is to prevent an immediate service collapse. If voters approve SB 63, it will provide the dedicated revenue source needed to repay the loan and fund transit into the future.

Both measures now await Governor Newsom's approval.

AC Transit extends deep appreciation to the members our transit district’s state delegation. In particular, we would like to thank State Senators Scott Wiener and Jesse Arreguin. Their combined authorship and unwavering commitment were instrumental in advancing this regional revenue measure. Our transit district is equally grateful for Governor Gavin Newsom’s leadership and partnership. Together, we are working on long-term funding solutions that will strengthen our region’s transit and enhance the daily lives of millions.