Press Release

Senate Passes Senators Wiener & Wahab’s Connect Bay Area Act To Authorize Transit Funding on the 2026 Ballot, Study Consolidation, and Improve Regional Integration

SACRAMENTO – The Senate passed Senator Scott Wiener’s (D-San Francisco) and Aisha Wahab’s (D-Silicon Valley) Senate Bill 1031, the Connect Bay Area Act. SB 1031 authorizes a Bay Area ballot measure to provide transportation funding on the 2026 ballot or later, and require operational reforms and a consolidation assessment beginning next year. The bill passed 26-10 and heads next to the Assembly, where it must pass by August 31.

 

“Public transportation is a critical part of the Bay Area’s future, and we must ensure our transit systems are reliable, safe, and clean and that riders have a seamless experience while getting around the region,” said Senator Wiener. “SB 1031 will allow the Bay Area to chart a strong future for transportation by funding and modernizing our transit systems as well as improving our roads and highways. I look forward to continuing regional dialogue on this important endeavor.”

 

“SB 1031 has the potential to deliver a world-class transit system by authorizing a revenue measure and evaluating short and long-term benefits of consolidation and enhanced coordination,” said Senator Wahab. “We have the ability to transform Bay Area public transit, and we cannot afford to squander this opportunity.”

 

Bay Area public transportation has long struggled with unstable operational funding. Since the pandemic, public transportation ridership levels across the U.S. have grown steadily but failed to reach pre-pandemic levels. The result is that across the Bay Area region, public transportation operators are expected to experience budget shortfalls totaling at least $600 million each year, enough to trigger massive service cuts that would seriously disrupt the region’s economy, convenience, and climate goals. Federal and state aid, including $1.1 billion from last year’s state budget ($400 million of which went to the Bay Area) — which was secured in a campaign led by Senator Wiener and supported by Senator Wahab — delayed these service cuts by over a year and a half, and they are now expected to begin in mid 2026. SB 1031 will allow the Bay Area to prevent these service cuts while funding a range of improvements for all forms of transportation.

 

SB 1031 does not specify the source of the revenue, but empowers MTC to choose among a sales tax, regional payroll tax, square footage-based parcel tax, and regional vehicle registration charge, or a combination thereof. As of October 2023, almost two-thirds of Bay Area voters agree that there is a need for more funding to address transportation in the Bay Area and 78% believe that public transit is very important for the Bay Area.

 

A Balanced Expenditure Plan

The authors agreed to amend the bill to set a goal of raising $1.5 billion in revenue. Seventy percent of the funds must be returned to benefit the counties that paid the revenue in the first 5 years, after which 90% of funds must be returned. Any new taxes would expire after no more than 30 years, and if a sales tax is proposed it will be no more than half a cent.

 

The Act requires the Commission to distribute revenues such that no less than 45% of investments support transit transformation, no less than 25% are invested in local roadway rehabilitation or complete streets investments (safe streets), no less than 15% are invested in connectivity (transit and roadway capital) improvements, and up to 15% of investments are used to close operating gaps, improve ridership, or ensure return to source minimums for counties. The expenditure plan also ensures a minimum funding allocation per operator. Specifically, the following minimum allocations apply:

  • At least $25 million per year for operators serving over 5 million riders per year and/or carrying passengers more than 25 million miles per year
  • At least $10 million per year for public transit operators in counties where those operators provide a combined minimum of 3 million trips and maximum of 5 million trips per year.
  • At least $5 million per year for small public transit operators in counties where those operators provide fewer than 3 million trips per year

 

Improving & Maintaining All Kinds of Transportation

SB 1031 provides vital funds to pay for public transportation operations to maintain and improve service levels across the nine Bay Area counties. The bill also authorizes additional expenditures from a ballot measure to be used to fund:

 

  • Zero emission transit vehicles and related infrastructure.
  • Safe streets, including pothole repairs, bicycle and pedestrian access improvements, and safe routes to transit and schools.
  • Capital improvements to support connectivity, including roadway, active transportation, and transit capital improvement projects that support connectivity and mobility in a climate neutral manner.
  • Climate resiliency projects to protect transportation infrastructure.

 

Improving Integration Across The Region: Network Management

Also beginning in 2025, SB 1031 designates MTC with the responsibility to adopt network management policies that result in the implementation of a seamless transit rider experience across the nine-county Bay Area region with the goal of increasing transit ridership. This includes the following areas:

  • Fares – fare payment and integration
  • Schedules
  • Mapping and wayfinding
  • Real-time transit information
  • Other customer-facing policies

 

SB 1031 enhances MTC’s authority to condition the receipt of State Transit Assistance (STA) Funds on transit agencies’ compliance with regional transit coordination policies, and to direct the conditioning of future regional transportation revenue measure funds. The authors agreed that no other existing funding sources will be conditioned on the network management provisions. 

 

Assessing Further Consolidation

In 2025, before the funding measure goes to the ballot, SB 1031 requires CalSTA to select a transportation institute to assess the twenty-seven agencies across the nine Bay Area counties for consolidation, and center the needs of riders through the lens of:

  • Improving the speed, efficiency, and reliability of service.
  • Improving the affordability of fares.
  • Improving the safety and cleanliness of service.
  • Promoting the achievement of the state’s climate goals, including through the incorporation and diffusion of zero-emission technologies.
  • Incorporating other technological changes that improve rider experience and safety.
  • Improving accessibility of, and connections to, regional and interregional transit service.
  • Improving and simplifying the accountability of the transportation systems to the public and riders.
  • Reducing administrative costs and improving cost efficiencies within and across transit agencies.

 

SB 1031 establishes the Bay Area Transit Technical Assistance Fund and permits revenues generated from a regional transportation revenue measure to be deposited into the fund for purposes of paying for the consolidation assessment required by SB 1031 and future consolidation implementation activities that may occur but are not required by SB 1031. 

 

Encouraging Mode Shift To Public Transportation

Subject to voter approval, SB 1031 would expand transportation benefits for Bay Area employees by authorizing MTC and the Bay Area Air Quality Management District (BAAQMD) to require employers with 50 or more employees to provide a subsidy to incentivize non-solo driving. For employers that are located in proximity to transit, the employer would be required to purchase a universal, unlimited transit pass for each of their employees.

 

SB 1031 is sponsored by the Metropolitan Transportation Commission.

 

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Senator Scott Wiener represents San Francisco and parts of northern San Mateo County.

Website: https://sd11.senate.ca.gov/

Media Resources: https://sd11.senate.ca.gov/media-resources 

 

Senator Aisha Wahab represents the 10th Senate District of Silicon Valley, which includes the cities of Fremont, Hayward, Newark, Union City, Milpitas, San Jose, Santa Clara, and Sunnyvale; as well as unincorporated communities of Alameda and Santa Clara counties including Fairview, Alum Rock, East Foothills.

Website of Senator Aisha Wahab: https://sd10.senate.ca.gov

Media Resources: https://sd10.senate.ca.gov/media-resources