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Declaration of Fiscal Emergency

Note: This page and any Portable Document Format (PDF) or similar files linked from this page are part of an archive and might not contain current information.

The SFMTA’s fiscal year 2010 Amended Proposed Operating Budget projects a $128.9 million deficit due mainly to the global economic downturn as presented to the SFMTA Board of Directors on March 17. Various options under discussion by the SFMTA Board of Directors to address this deficit have included a reduction in transit service and increases to various fares, fees, fines, rates and charges that support the City’s surface transportation network.

These reductions and increases are subject to the California Environment Quality Act (CEQA). However, CEQA provides a statutory exemption for such reductions and increases if implemented as a result of a declared fiscal emergency caused by the failure of revenues to adequately fund agency programs, facilities and operations.

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 Board of Directors was required to hold a public hearing to receive public testimony regarding the proposed declaration of fiscal emergency. This public hearing took place on Tuesday, April 7, 2009, at 2 p.m. in Room 400, City Hall, during the Board’s regularly scheduled meeting.

View minutes from the April 7 hearing.

Within 30 days after the public hearing, the SFMTA is required to respond to comments received from the public. The SFMTA responded to the public comments received on April 7 at the regularly scheduled April 21 SFMTA Board meeting. At that same meeting, SFMTA staff requested that the SFMTA Board of Directors declare that a fiscal emergency exists for the SFMTA for fiscal year 2010 beginning July 1, 2009. The SFMTA Board made that declaration.

The SFMTA last declared a fiscal emergency in 2005.

For details on these proposals in languages other than English please call 311. Outside San Francisco: 415.701.2311. TTY: 415.701.2323.

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