Key takeaways
- In early returns, Bay Area voters backed Measure RTM, a 14-year regional transit sales tax, with about 61.5% yes. San Francisco's Prop H for Muni had about 72.4% yes.
- The measure is expected to raise about $980 million a year across five counties. BART expects about $310 million a year starting in fiscal 2028.
- New money doesn't end the squeeze. BART still faces a $57 million gap, and the measure requires an independent financial efficiency review.
- The strongest pitch to a transit agency right now is one that saves money, raises revenue or helps deliver funded capital projects.
What voters approved
Early returns posted overnight show Bay Area voters supporting Measure RTM, the regional transit sales tax. The San Francisco Standard reported 61.5% yes with more than 1.1 million votes counted. San Francisco's Proposition H, a 15-year parcel tax for Muni, was at 72.4% yes. These are early counts, and results aren't final until they're certified.
The measure was authorized by SB 63, which Governor Newsom signed in October 2025. According to the Metropolitan Transportation Commission (MTC), it sets a half-cent sales tax in Alameda, Contra Costa, San Mateo and Santa Clara counties and a one-cent tax in San Francisco for 14 years. MTC estimates it will raise about $980 million a year.
MTC describes three buckets for the money:
- About 60% goes to BART, Muni, Caltrain, AC Transit, SF Bay Ferry and smaller operators.
- About one-third goes to the county transportation agencies in Santa Clara, San Mateo, Alameda and Contra Costa (VTA, SamTrans, the Alameda County Transportation Commission and the Contra Costa Transportation Authority). They can use it for transit capital, operations or paving roads with regular bus service.
- About 4.5% funds rider-experience improvements tied to the region's Transit Transformation Action Plan. MTC lists goals such as free and reduced-fare transfers, accessibility upgrades, faster bus trips and better wayfinding.
New money, same pressure to cut costs
The measure keeps service running, but it doesn't make budgets comfortable. BART's own funding fact sheet describes ongoing structural deficits of $375 million to more than $400 million a year. The measure is expected to cover about $310 million of that, starting in fiscal 2028. The Standard reports that BART still faces a $57 million gap, and that Muni still has a structural deficit even with both measures.
The law also builds cost discipline into the deal. MTC says the measure includes an independent oversight committee, a maintenance-of-effort requirement and a two-phase, third-party financial efficiency review of BART, Muni, Caltrain and AC Transit. The Standard reports that agencies will need to control rising costs, diversify revenue and prepare for the day the tax expires.
For vendors, that's the key point. Agencies have money to keep operating, but every new spend will be weighed against cost savings and revenue. A pitch built on "now you can afford this" will land poorly. A pitch built on "this lowers your costs or brings in revenue" fits what boards and auditors will be asking.
What transit agencies are buying
BART's adopted fiscal 2027 budget shows where the attention is. According to Railway Age, the board adopted early actions from the regional financial efficiency review, including better fare compliance, higher parking revenue, leasing fiber assets, expanding the Clipper BayPass program, adjusting schedules, running shorter trains off-peak, reviewing contracts and studying retail partnerships. BART's fact sheet also cites smaller headquarters space, new fare gates and energy savings from shorter trains as past cost and revenue measures.
The capital side is active too. BART's $828 million fiscal 2027 capital budget includes a new communications-based train control system, traction power upgrades, elevator and escalator work, computer network modernization and a modernized operations control center. The Standard also reports that SFMTA and BART boards are weighing more development on agency-owned land, though that would take years.
If you sell energy management, fare collection, parking technology, facilities maintenance, IT or construction services, there's a clear line between your offer and these priorities. If you don't, be honest with yourself about fit before you reach out. Our guide to selling transportation technology to government covers how these buyers typically work.
How to approach a transit agency right now
- Read the budget before you write. Board-adopted budgets, efficiency review updates and board agendas tell you what an agency has already committed to. Lead with the item that matches your work.
- Find the owner, not just purchasing. Efficiency and revenue items usually sit with finance, operations, facilities, IT or real estate leaders. Procurement matters later, when there's a defined need.
- Bring numbers they can check. Describe savings in terms an auditor would accept: what you measured, where and over what period. Skip broad claims.
- Ask a question that's easy to answer. For example: "I saw fare compliance on the list of early actions from the efficiency review. Is that being handled in-house, or is outside support on the table?" It invites a short reply and leaves room for a no.
- Respect the timeline. BART's measure money starts in fiscal 2028, and results still need certification. If the timing is wrong, ask when it makes sense to follow up and do that. There's no reason to invent urgency.
Agency budgets, board actions and ballot results are all signals worth tracking. Our guide to government buying signals covers how to watch them.
The same pattern beyond the Bay Area
The Bay Area isn't the only place voters have funded transit this year. Smart Cities Dive, citing the Center for Transportation Excellence, reported in October that 34 of 39 transit measures decided earlier in 2026 had passed, with nearly two dozen more local and county transportation measures on yesterday's ballots. Wherever new transit money passes, expect the same questions about cost control, so the approach above travels well. Our list of the largest transit agencies is a practical place to start building a target list.
How KSG helps
Kensington Sales Group helps companies reach the finance, operations, facilities and IT leaders at transit agencies and other special districts. Our B2G lead generation team uses signals like ballot results and budget actions to start low-pressure conversations with the people who own the work.
Sources: The San Francisco Standard, Bay Area transit measure results and what's next (November 4, 2026); Metropolitan Transportation Commission, Governor signs bill authorizing 2026 transit measure; BART funding overview fact sheet; Railway Age, BART adopts FY27 budget; Smart Cities Dive, Transit on the ballot in these 11 states (October 2026).