Study warns Muni cuts could cost San Francisco $48 million in labor annually
A new report from the city controller’s office says that slashing Muni service would shave $30-$48 million from the local labor market each year, far outweighing the benefits of the proposed parcel tax.
San Francisco’s Office of the Controller released an economic impact study ahead of the November vote on Proposition H, a parcel tax that would fund the city’s transit agency, Muni. The report finds that if voters reject the tax, Muni would have to cut service frequencies by as much as 50%, suspend less-used routes, and halt historic trains and cable cars. Such cuts would reduce the labor market’s contribution by $30-$48 million each year because longer commutes would curb productivity.
The analysis also predicts a decline in amenity value of $118-$197 million annually and modest drops in residential and commercial property values. By contrast, the parcel tax would raise $184 million annually, impose modest property-value losses for owners, and, in a high-end scenario, generate more than 1,400 jobs and boost GDP by about $400 million over 15 years. The measure is backed by Mayor Daniel Lurie, former Speaker Nancy Pelosi and local business groups, while the San Francisco Republican Party opposes it on fairness grounds.
Why it matters
The outcome will shape San Francisco’s transit funding, labor productivity and property values for years to come.
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