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Wednesday, May 5, 2010

Muni's Taxi Medallion Revenue Projections Now Officially Bullshit

Posted By on Wed, May 5, 2010 at 9:30 AM

click to enlarge This movie sucked -- and so did the idea taxi medallion sales would buoy Muni this year - JIM HERD
  • Jim Herd
  • This movie sucked -- and so did the idea taxi medallion sales would buoy Muni this year
In our recent cover story, "The Muni Death Spiral," we examined the less than savory sausage-making behind the Municipal Transportation Agency's budgeting process.

Multiple Muni sources told SF Weekly that the mayor's office heavy handedly dictates the agency's budget down to the minutiae, and, more disturbingly, insists Muni fudge its deficit numbers into "politically palatable" totals. One of the ways this is done is to include ridiculous savings measures no one in his right mind thinks will come to pass as "budget solutions" and use the hypothetical money saved to disingenuously reduce the projected deficit. For example, if Muni were running a $40 million deficit and a budget item counted on $15 million coming from Mayor Gavin Newsom auctioning off his hair, Muni could list its projected deficit at only $25 million.

Muni's "solutions" weren't quite that ludicrous -- but it was close. One of the most transparent ploys in the agency's budget -- along with $20 million in labor concessions that came as news to Muni's legendarily stubborn labor force -- was a proposed $11.7 million bonanza from selling taxi medallions. Earlier estimations placed this tally at even more -- roughly $15 million.

So it's worth noting that, yesterday, Muni quietly downgraded its expectations of money brought in via taxi medallion sales this fiscal year to a piddling $2.5 million. As far as making real money for the agency, hawking medallions has turned out to be a costly pipe dream. But if the purpose was to find a make-believe method of turning in a "balanced" budget -- well, voila.

click to enlarge Muni's smoke-and-mirrors budgeting has, once again, left it facing a big deficit - JIM HERD
  • Jim Herd
  • Muni's smoke-and-mirrors budgeting has, once again, left it facing a big deficit
By the way -- Muni hasn't yet made dollar one, let alone $2.5 million, via medallion sales. And even this modest new projection could well be unachieveable. Rather than selling medallions, Muni is now bandying about hazy notions of leasing them. And, whatever the agency chooses to do, it faces potential litigation from angry cabbies' unions.

Oh, if only Muni could fill its coffers with that Gavin Newsom hair money. It's only slightly less crazy a notion than thinking taxi medallions were an economic savior in this fiscal year.

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About The Author

Joe Eskenazi

Joe Eskenazi

Bio:
Joe Eskenazi was born in San Francisco, raised in the Bay Area, and attended U.C. Berkeley. He never left. "Your humble narrator" was a staff writer and columnist for SF Weekly from 2007 to 2015. He resides in the Excelsior with his wife, 4.3 miles from his birthplace and 5,474 from hers.

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