How SB 63's efficiency requirements work

1. The independent review, Phase 1

Who did it. MTC hired the consulting firm Nelson\Nygaard. The law requires the consultant to work with the agencies and with an oversight committee made up of an MTC commissioner, a board member from each of the four agencies, four independent experts in transit operations and finance appointed by MTC, and nonvoting representatives of the state Transportation Agency and Department of Finance. Gov. Code §67764; Phase 1 report, p. 1

What it covered. The law limits Phase 1 to three things: cost-saving measures the agencies had already taken since 2020, “early action strategies” that would help them deliver more or better service and a better rider experience with existing resources, and an inventory of each agency's real estate. Gov. Code §67762(b)

What it found about past savings. For fiscal years 2020 to 2025, the report says AC Transit saved almost $200 million in operating costs (7%), BART $516 million (9%), Caltrain more than $76 million (7%), and SFMTA nearly $300 million (4%). Phase 1 report, p. 3

What an early action strategy is. The report describes them as actions agencies “can implement or study in the near term, within the next one to three years.” Many are studies or plans rather than changes that save money by themselves. Phase 1 deliberately left out strategies that would need new upfront revenue, major service changes, changes to labor agreements, long-term restructuring, or new legal authority; those are reserved for Phase 2. Phase 1 report, p. 45; Phase 1 report, p. 4–5

The oversight committee adopted the final Phase 1 report on May 22, 2026. Read the Phase 1 report (PDF).

2. The agencies commit

By July 1, 2026, each agency had to “identify the specific strategies in the final adopted phase one analysis that it commits to implementing” and adopt them as formal policy or budget actions. Gov. Code §67766(b)

The law lets each agency choose which strategies to commit to. All four boards voted before the deadline; the scorecard shows what each adopted. MTC has since added the adopted strategies to its Productivity Improvement Program, with an estimated completion date of June 2029, and agencies report progress in their annual funding claims. MTC Res. 4743

Adopting a strategy is a commitment, not a result. This tracker records separately whether each one is later carried out. See adopted versus implemented.

3. The independent review, Phase 2 (only if the tax passes)

If certified election results show voters approved the tax, Phase 2 must be finished no later than 480 days after certification. Gov. Code §67766(c)

Phase 2 must identify “a menu of cost-saving measures that, if implemented, would reduce one-time and ongoing fixed and variable costs,” measured with figures such as cost per passenger mile and subsidy per passenger mile. It also includes a regional strategy for developing the agencies' real estate. Both phases must clearly separate recommendations that would not affect service from those that would require service changes or cuts. Gov. Code §67762(c)–(d)

As of November 4, 2026, the election results have not been certified, so the Phase 2 deadline has no date yet. See the timeline.

4. Implementation plans

1. Within 120 days after Phase 2 is complete, each agency submits a draft implementation plan describing all the cost-saving measures it plans to carry out. The law says the plan must “balance financial efficiency, service, and system safety.” Gov. Code §67766(d)
2. The oversight committee approves each draft or recommends revisions. Gov. Code §67766(e)
3. Within 60 days of the committee's action, the agency's board adopts a final plan that incorporates the committee's recommendations. Gov. Code §67766(f)
4. A board may reject a recommendation only by adopting a written finding that it would have “an unacceptable impact on transit service or safety” or conflicts with other documented local policies. MTC must notify the Legislature within 10 business days. Each finding expires after 12 months unless renewed, and the agency must report on it annually. Gov. Code §67766(f)(3)
5. Each agency must then follow its final plan until the tax expires, unless circumstances beyond its control make that infeasible, in which case it must make a good faith effort. Gov. Code §67766(g)

5. Funding depends on compliance

To keep receiving money from the tax, each agency must verify with MTC that it is complying with these requirements. Before withholding funds, MTC must give the agency 90 days to comply. If the agency still has not complied by the time MTC makes its final allocations, the withheld money goes to other public transit in the county or counties the agency serves. Gov. Code §67766(h)

See Oversight for who sits on the committee, what it can and cannot require, and every recommendation an agency rejects.

MTC, not this tracker, decides whether an agency is in compliance. This site reports what the public record shows about each commitment.

What the tracked recommendations cover

The 35 Phase 1 recommendations tracked here, by category:

• Revenue 12
• Service planning 8
• Labor/overtime 4
• Procurement 4
• Ridership/customer experience 4
• Capital 2
• Energy 1

Examples: studying fare evasion and enforcement, running shorter trains when fewer people ride, leasing fiber-optic lines, raising parking revenue, and expanding Clipper BayPass. Each agency page lists every recommendation with its sources.

Common questions

Does “adopted” mean money has been saved?

No. It means the agency's board voted to commit to the strategy. Most Phase 1 strategies are studies or plans, and the Phase 1 report does not estimate savings for individual strategies.

Why only these four agencies?

SB 63 names AC Transit, BART, Caltrain, and Muni as the agencies subject to the review. Other agencies that receive money from the tax are outside the efficiency review; they are listed on the Methodology page. Gov. Code §67762(a)

What happens if the tax was not approved?

Phase 2 and the implementation plans are required only if certified results show the tax passed. The Phase 1 commitments were due either way. Gov. Code §67766(b)–(c)

Will Phase 2 and the implementation plans be tracked here?

Yes. They will be added when the documents are published, with the same sourcing rules.

Who runs this site?

It is independent and not affiliated with MTC or any agency. See who maintains this site and the corrections policy.

Terms

MTC

Metropolitan Transportation Commission, the Bay Area's regional transportation planning and funding agency. It runs the review and allocates the tax revenue.

Oversight committee

The Financial Efficiency Review Independent Oversight Committee described above. It ends once every agency adopts its final implementation plan. Gov. Code §67766(g)

Subject operators

The law's term for the four agencies under review.

RTM

Regional Transit Measure, the name MTC uses for the tax on the November 2026 ballot.

Statute citations link to SB 63 (Stats. 2025, Ch. 740); hover for the PDF page. A copy is kept at sources/sb63-chaptered.pdf.