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San Rafael Today
By the People, for the People
Marin Transportation Tax Revenue Trends Upward
Measure AA funding for the Transportation Authority of Marin is set to finish the fiscal year at $35.9 million, a 1.7% increase over the previous year.
Published on Feb. 13, 2026
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Tax revenue is up at the Transportation Authority of Marin, but economic volatility has the agency taking a conservative approach to the budget. Measure AA, the county's half-cent transportation sales tax, is set to finish the 2025-26 fiscal year at $35.9 million, a 1.7% increase over the previous year. Revenue is expected to continue growing, signaling a rebound from the pandemic-induced revenue slump.
Why it matters
The Transportation Authority of Marin relies on Measure AA funding to support transit, roads, school routes and highway projects in the county. The upward trend in revenue is good news, but the agency is taking a cautious approach due to economic uncertainty.
The details
Measure AA revenue is projected to climb 1.5% next year and continue on a 2% growth rate through 2031. However, the agency's finance director noted "mixed indicators" in the economy, with some positive signs like increased sales tax revenue but also concerns about consumer sentiment, manufacturing, and the homebuilders index.
- Measure AA, the county's half-cent transportation sales tax, was approved by voters in 2018 to extend the tax for 30 years.
- The tax revenue dropped from $29 million in the first year it was renewed to $27.35 million in 2020, the first year of the pandemic.
- Tax revenue shot up to nearly $35 million by 2022.
The players
Melanie Purcell
The finance director at the Transportation Authority of Marin.
Kate Colin
The mayor of San Rafael and chair of the Transportation Authority of Marin board.
Robert Betts
The general manager of Marin Transit, the county's local fixed-route bus provider.
What they’re saying
“But we do have, obviously, some pretty mixed indicators. There's definitely people who are shopping, as we know, we are getting new sales tax revenue, but their sentiments are a little bit different and all of the experts are kind of giving mixed signals.”
— Melanie Purcell, Finance Director, Transportation Authority of Marin (marinij.com)
“TAM remains financially healthy, and careful forecasting helps ensure long-term stability for the agency and its projects.”
— Kate Colin, Mayor of San Rafael, Chair of Transportation Authority of Marin Board (marinij.com)
“Even though these are more optimistic projections, our future operations cost still exceed our future revenues. It's good to be trending up, but we're still looking at some potential financial shortfalls.”
— Robert Betts, General Manager, Marin Transit (marinij.com)
What’s next
The Transportation Authority of Marin is expected to hold a public hearing on the Measure AA expenditure plan in March, which could include reallocating some revenue to fund the school crossing guard program and create a new 'reimagined roadway' fund.
The takeaway
While the upward trend in Measure AA transportation tax revenue is positive news, the Transportation Authority of Marin is taking a cautious approach due to economic uncertainty. The agency's careful financial forecasting and planning will be crucial to ensuring long-term stability and funding for critical transportation projects in Marin County.
