SF rally held to save Bay Area public transit funding as agencies face huge deficit

SAN FRANCISCO (KGO) -- Concerns over service cuts to Bay Area public transit are growing.

Local transit agencies are facing huge deficits and had been counting on a $750 million loan to get them through 2027.

Senators Scott Wiener and Jesse Arreguín had been negotiating the details of the loan. Over the weekend, they said that Governor Gavin Newsom and his Department of Finance were backtracking on the deal, wanting to finalize the loan next year instead of before the end of this year's legislative session.

Just as a rally in support of the loan at Civic Plaza was getting started Monday morning, the governor's office issued a statement.

It said, "We are working closely with all stakeholders on the parameters of a funding deal. Our shared goal is to agree on the terms of a deal by this fall."

MORE: Mayor Lurie proposes to raise certain taxes to fund SFMTA's $322M budget deficit

BART, Muni, Caltrain, AC Transit and others would eventually pay back the loan.

Each of the agencies said they face huge cuts without the money.

Both Muni and BART are facing deficits in the hundreds of millions.

BART Board director Barnali Ghosh at the rally said that without action, which includes the loan, cuts to BART service could be devastating.

"Under one of our worst case scenarios, BART closes at 9 p.m., trains run only once an hour, stations shut down, and 1000 workers lose their jobs," she said. "This is real."

MORE: Policymakers debate how to raise money to save Bay Area transit agencies as fiscal cliffs loom

Mayor Daniel Lurie was at the rally and said that his office has been in communication with the Governor's office hourly since Thursday.

"The Governor has made it clear to me that he understands the importance of this loan," Lurie said at the rally after the Monday morning statement from the governor.

Tuesday is the last day for the bill language to be made public. If it's no, lawmakers will have to work through the fall until legislators come back in session in January.

Still the lawmakers working on the loan and advocates say the need is urgent and that may be too late.

"We will be convening (Tuesday) or Wednesday with the groups here with the governor's office to keep the momentum going," Lurie said at Monday's rally, "We are not giving up, and I know you won't either."