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San Francisco Muni May Need Financial Bailout

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(CBS)

SAN FRANCISCO (KCBS) – San Francisco voters may be asked to approve one or more tax increases in two years to help bail out the San Francisco Municipal Transportation Agency from a steep financial hole.

The transit agency needs an additional $50 million a year in permanent income, with all of the money having to be raised without a fare increase.

Accountants said if this doesn’t happen, in 20 years Muni will be faced with a $1.6 billion deficit.

KCBS’ Bob Melrose Reports:

Peter Shellenberger with Public Financial Management said the agency needs to show the financial markets it has a steady income.

“Prior to accessing the capital markets, you need to show that your fiscal house is in order,” he told the Muni Board. “You need to fund your reserves and at least demonstrate a plan to fund those reserves up to targeted levels.”

Some of the ideas that have been bandied about include a parcel tax, increase in vehicle registration fees and an increase in the sales tax.

A ballot or ballot measures could be put before San Francisco voters in November of 2012.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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