Sacramento voters Tuesday rejected Measure B, which would have provided a funding scheme for the proposed trolley line through downtown and midtown.
The Sacramento County ballot measure that would have created a special tax district in downtown and midtown to pay for the streetcar. It needed two-thirds approval to pass.
City council member Steve Hansen helped campaign for the streetcar measure.
"Well, we're disappointed, but we knew two-thirds was a high hurdle to cross," Hansen said.
Measure B went down with only 48 percent of voters choosing 'yes,' while 51 percent said 'no.' Only about 1,200 of the 3,700 eligible voters turned out.
Supporters of the streetcar hope to announce an alternative path to funding the project as early as Thursday.
"But ultimately, while people didn't vote to tax themselves to help pay for it, we believe there's another path to find this funding," said Hansen. "And we're pursuing every opportunity that we can to make sure that the project gets built on time."
-Capital Public Radio Staff