Muni was forced to reduce service by 10 percent in May because of a severe budget deficit. On Tuesday, Newsom said that thanks to cost saving measures, 61-percent of the cuts will be restored.
Officials say that includes fully restoring light rail service and late night owl service.
Meanwhile, the San Francisco municipal transportation agency is meeting to look at increasing pay for Muni drivers.
Drivers are virtually guaranteed a 6 percent pay raise, to almost $30 an hour -- that's because the city charter says Muni drivers must be the second highest paid transit workers in the country.
