San Francisco, CA
Are Muni customers paying their fares? Here’s a detailed look at SFMTA’s deep financial crisis

SAN FRANCISCO (KGO) — San Francisco’s transit system faces a crisis unless the state steps in to secure additional funding for Muni. But before releasing any money, the state has made it clear it wants to see an effort being made by Muni to prove it’s on the path toward being financially healthy.
So, ABC7 News wanted to confirm what we already suspected: Muni is losing millions because some people don’t pay the fare.
On a clear San Francisco Thursday morning, ABC7 News reporter Lyanne Melendez decided to ride on the oldest publicly operated transit system in America, Muni — paying, of course, using a Clipper card.
It’s reassuring to see that most Muni lines are back to near pre-pandemic levels.
VIDEO: Bay Area public transit agencies say they need more state money to survive
Also encouraging is this recent statement by the executive director of the San Francisco Municipal Transportation Agency who oversees Muni:
“Most people are still paying just as they did pre-COVID,” said Jeffrey Tumplin.
Paying, did he say? Because we had our doubts, we decided to record who paid and who didn’t.
The first two women who got on the bus after us did not pay.
Neither did another man who entered through the backdoor of the bus.
We recorded a couple walking right on without paying.
One man attempted to pay but for some reason, his Clipper card never worked.
An older woman paid with her Clipper card but the person behind her did not.
We counted five people getting on the bus and passing the driver without paying.
VIDEO: ‘Death spiral’: Here’s what is at stake for Bay Area public transit amid battle for state funding
That’s $12.50 that Muni did not collect from those five people.
We estimated that about three-fourths of the people who got on that bus never paid.
A Muni driver told us that a good day for her is when 40% of passengers pay.
“I’m honest, but if I was really pressed and didn’t have anything to pay with, I would do the same thing,” said Louis Gamache, a Muni rider who did pay.
Some were candid about their reason for not paying.
“I just think post-pandemic, it’s kinda like the norm as far as I’ve seen, especially when this goes up and down Market Street. I don’t know, people don’t pay, I don’t know,” said Alex, who only gave us his first name.
But SFMTA Director Tumlin clarified that there are other ways to pay that, perhaps, we didn’t catch on camera.
“What we’ve done is invent some new fare instruments. Right now you can download Muni Mobile and pay with your phone rather than pay with your Clipper card,” he said.
Melendez: “Have you ever heard of the Muni Mobile app?”
Muni rider: “Yeah.”
Melendez: “Do you use it?”
Muni rider: “No.”
VIDEO: SF Board of Supervisors unanimously approve resolution to urge state to save Bay Area public transit
We finally found a passenger using Muni mobile — an honest, law abiding tourist who had a one-day pass on his phone.
Melendez: “So, you paid using the mobile app?”
Muni rider: “Yes, right.”
We also found that there are people who feel that because other passengers don’t pay, “Why should I?”
“Absolutely, yeah, that’s the reason,” said that first couple who did not pay, Lorenzo and Misty Bartholomew.
That attitude shift is what in psychology is often referred to as “crowd behavior.”
“We still try to pay for our fare as much as we can. It’s just to a point to where, like, what’s the point you know,” Misty said.
Because Muni bus drivers have been assaulted in the past for trying to collect a fare, it’s understandable that they don’t engage with anyone who refuses to pay.
That’s the responsibility of the fare inspectors who are supposed to ask passengers to show proof of payment.
“We have transit fare inspectors that are out there everyday collecting good data about who’s paying and who’s not paying,” Tumlin said.
We asked Jennifer Horner, a regular Muni rider, when she last saw a fare inspector on Muni.
“I would say probably a year ago on a Muni train, not on a bus,” Horner responded.
VIDEO: 25% fewer Muni buses possible as SFMTA faces potential $214 million deficit
Here’s the problem with not paying.
Transit fares represent 18% of SFMTA’s revenue, or about $219 million.
That’s part of the reason why Muni had a $134 million deficit in 2022.
Too many numbers you say? Well, maybe you’ll be interested in knowing how Muni is seriously thinking about how to address this shortfall. This will likely affect you: Extend the hours of parking meters on weekdays to include nights and on Sundays. That’s 28,000 parking meters that could potentially be active on Sundays.
“So that would bring in an extra $18 million a year. It’s enough to save three Muni lines,” Tumlin said.
Other proposals include expanding neighborhood parking permits and taxes on off-street parking in downtown garages.
Another idea that circulated in the past was downtown congestion pricing – except that after the pandemic, downtown has been slow to recover.
We asked State Senator Scott Wiener, who is trying to secure funding in Sacramento for Muni and BART why not enforce fares instead of introducing so many proposals?
“We should enforce fares, but fare evasion is a small piece of the problem and even if we had 100% compliance, that would not solve the problem, so we need the state to help out,” he said.
The federal stimulus monies that have kept Muni afloat are expected to run out. SFMTA is hoping the state will provide some short-term relief funds.
If not, the transit agency may have to scale back Muni to pandemic-levels of service, when only 40% of routes were up and running.
“So many people are riding on Muni and BART right now, and we can’t have them fall apart,” Wiener said.
If you’re on the ABC7 News app, click here to watch live

San Francisco, CA
San Francisco West Portal hardware store closing after nearly 9 decades

A hardware store in San Francisco’s West Portal is closing up shop after being in business for 88 years.
Papenhausen Hardware made the announcement, saying it no longer could afford to stay open.
Karl Aguilar walked into this hardware store 29 years ago as a San Francisco State University student looking for a job. But in 2018, Aguilar became a co-owner and thought he would retire there.
Aguilar said it wasn’t just one thing prompting the closure, but two fires and the pandemic took a big hit on his business. He estimates sales dropped about 30% in the first year of the pandemic.
“By the second year, we realized it was time to sell and all of the emotional side of it,” said Aguilar. “What can we do, all the questioning, the sleepless nights happened then.”
On Saturday, Papenhausen Hardware started its going out of business sale. Many of the shelves are now empty as customers come by to make their final trip to their local hardware store.
“We thought there would be an increase in business but it’s just been this crushing avalanche of nonstop business for four days now,” said Matt Rogers the co-owner Papenhausen Hardware. “So, it’s impressive. Touching too really.”
“It’s been overwhelming in a good way?” Aguilar added. “The community is deeply upset. They wish it wasn’t the case and people have come out of the woodwork trying to come up with ideas and find ways to keep us here but the financial reality is that we just can’t stay.”
After 88 years in the West Portal neighborhood, generations of families have relied on this store for basic hardware supplies.
Customers like Lee Bradley said the closing is a huge loss to the community.
“Terrible news really,” Bradley said. “Devastation. The convenience is the whole thing. It’s nice having a store, just down the block that you could little bits and bobs. Whatever you wanted.”
But as customers shopping habits have changed after the pandemic, Papenhausen isn’t the only one struggling to keep its doors open.
Aguilar hopes people realize how important community support is to keep small businesses open.
“The one thing people should take from this is whether it be a bookstore, or a coffee shop or maybe a fabric store that you love,” he said. “I guarantee you that they’re struggling. If you want to see them there, you can support them and every dollar makes a difference.”
Papenhausen Hardware is scheduled to close on December 31st but if they run out of inventory, the store could be closed earlier.
San Francisco, CA
San Francisco Developer Unveils Plans for New 22-Story Ocean Beach Project | KQED

While the developers claim that the proposed project “exceeds” AB 2011’s standards, the application is still under review to determine if it qualifies for the expedited approval process granted by the law.
Sider noted that the proposal “hasn’t yet been assessed for Code compliance, but we remain hopeful that the project will be thoughtfully designed and adhere to all regulations.” He added that the location “has always been an ideal spot for new housing.”
The original plan for a 50-story, 712-unit high-rise was met with fierce opposition from city planners, residents and Supervisor Joel Engardio, who represents the Sunset District, where the site is located.
Engardio called the initial proposal a “middle finger to the city” and dismissed it as a plan “no one would take seriously.”
Although the new proposal significantly reduces the building’s height, with only 22 stories, Engardio remains critical.
“Twenty-two stories is still far beyond what’s reasonable,” he said in an interview. “We need to stop dreaming up massive skyscrapers at the beach and focus on real housing that will meet the needs of real families.”
Engardio pointed out that the Coastal Commission will need to weigh in on the project and criticized the developers for not adhering to the Sunset District’s current zoning laws, which limit building heights to 10 stories.
“We need more housing for seniors and families in the Sunset and throughout San Francisco,” Engardio said. “But no one wants Ocean Beach to turn into Miami Beach.”
San Francisco, CA
Breed picks ex-Bloomberg staffer for Board of Supervisors seat

Sherrill registered with the Democratic Party in 2023 after identifying as “no party preference” since first registering in San Francisco in 2016.
He has longstanding connections to former New York City Mayor Michael Bloomberg, an ally and supporter of Breed. After college, Sherrill worked as an assistant for the New York deputy mayor for operations and later was promoted to senior policy advisor during Bloomberg’s tenure.
Bloomberg contributed more than $1 million to an independent expenditure committee supporting Breed’s failed reelection bid this year; likewise, she endorsed Bloomberg during his unsuccessful presidential run in 2020. The San Francisco mayor’s office of innovation is funded by Bloomberg Philanthropies, his charity.
Sherrill denied that political ties between Bloomberg and Breed were a factor in his appointment, saying both care deeply about building cities and hiring great talent.
Not all District 2 community leaders were convinced. Jason Pellegrini, a former human rights commissioner and District 2 resident, said he will support Sherrill’s success in office, for the sake of the district. However, he said, Breed’s choice carries the whiff of a political favor, and Sherrill wasn’t the most experienced pick on the short list of possibilities.
“I’m extremely disappointed in Mayor Breed, the daughter of San Francisco, as she’s leaving office,” Pellegrini said. “I feel this is a slap in the face not only to District 2 but to San Francisco.”
Patricia Vaughey, president of the Marina-Cow Hollow Neighbors & Merchants Association, was skeptical of Sherrill’s appointment and said she had not seen him at community meetings.
“Here we go again with someone who doesn’t know what the fuck they’re doing,” Vaughey said. Still, she said she will do her best to support him: “I have to work with whoever I have to work with.”
Through a spokesperson, Breed’s office said, “The mayor made the appointment based on her belief in Stephen’s qualifications and abilities, nothing else.”
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