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Shutting Down SF’s Cable Cars to Trim Budget? No Chance, Lurie Says

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Cable cars pass each other above Lombard Street in San Francisco on March 13, 2020. The street, known as the "Crookedest Street in the World," is typically filled with cars and tourists. (Beth LaBerge/KQED)

San Francisco Mayor-elect Daniel Lurie is pushing back against suggestions that the city may consider shutting down its trademark cable cars because of major deficits projected for Muni.

“Even amidst an unprecedented budget deficit, some things are untouchable,” Lurie said in a Monday post on social media platform X. He added that the cable cars are too important to the city’s tourist economy to take them off the streets and vowed the 151-year-old system is “here to stay.”

Lurie, however, made no mention of the other measures under discussion at the city’s Municipal Transportation Agency, including shutting down more than 20 bus lines and reducing the frequency of service systemwide.

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The agency has gone out of its way to emphasize that the measures are not formal proposals for cuts but an example of what might be necessary to close annual deficits that could top $300 million if it doesn’t raise more funding.

Muni estimates suspending cable car service would save $33 million a year. Cuts to bus and train service and reductions in fare subsidies and other programs for low-income San Franciscans would save about $170 million more — not nearly enough to fill projected deficits that will start in 2026.

Two cable cars pass over California Street as a light rain falls in San Francisco on Nov. 9, 2021. (Beth LaBerge/KQED)

Last month, SFMTA Executive Director Jeff Tumlin told a select group of city officials, the Muni Funding Working Group, that his goal in outlining the draconian service reductions is to show the importance of finding politically viable revenue sources.

He said he wants to avoid service cuts and continue to rebuild and improve Muni’s service, which was scaled back during the pandemic.

“But in order to do that, we need to have a real conversation about just how dire our situation is and what is at stake so that one, we can come to agreement on new revenue, and two, we can win,” Tumlin said.

He made that point again Tuesday when asked about plans for service cuts during a meeting of the SFMTA Board of Directors.

“There seems to be a lot of confusion about the different directions that we’re going in terms of what we’re cutting, what we’re not cutting, when are we cutting these services, things like that,” board member Stephanie Cajina told Tumlin. “I just want to offer you the opportunity to discuss a little bit more about the timeline of different decisions, especially around service cuts.”

“One of the things we’ve been trying to do on every single slide of every single presentation is offer a disclaimer: ‘There are no current plans for major service cuts,'” Tumlin said. “What we’re trying to lay out is what is at stake if we don’t solve the problem that we know is heading at us in calendar year 2026.”

Noting that ride-hailing services Uber, Lyft and Waymo have cut into the once-hefty revenue from the city’s parking garages, Tumlin said the goal of the current funding discussions is “to come to consensus this winter on how to rebuild the financial base for the SFMTA, which has been unsustainable already for many years.”

Lurie spokesman Max Szabo said the mayor-elect was not available to discuss the transit agency’s budget challenges. Instead, he offered a statement in the mayor-elect’s name.

“I’m building a team rooted in accountability, service and change to tackle the city’s historic challenges,” Lurie said. “That includes ensuring that transit is safe, well-funded and accessible for all.”

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