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Business Unusual at MATA

A tale of two priorities at Memphis Area Transit Authority.

When we spoke to the Memphis Area Transit Authority’s interim CEO Bacarra Mauldin in August, she called the state of affairs at MATA “business unusual.”

This summer, Mauldin and her team were in the process of finalizing the budget for Fiscal Year 2025 (F25). They had promised their board they would present a balanced financial plan after it was announced that the agency was in a $60 million deficit. The balanced budget, with plans for bus route suspensions and more than 200 layoffs, was unanimously passed, and would only further affirm Mauldin’s confidence in her own assessment of the current climate as “business unusual.”

“It’s not everyday that you have your whole board replaced at once,” Mauldin says now, reflecting on the most recent move made by Memphis Mayor Paul Young.“I trust Mayor Young, we’ve partnered, and he has a vision for how he wants this to go. He sent a clear message that he wants things to change — and we intend for them to change — and I support his vision,” Mauldin says.

Young made the move to replace the entire MATA Board of Commissioners in October, following a draft report from transportation consulting firm TransPro. The 117-page recommendation — which one city council member called “scathing” — summarizes recommendations for the agency and analyzes bus usage, ridership, and on-time performance, among other things. Its purpose was to highlight the pressing challenges the agency faced and call for urgent action.

TransPro conducted its analysis from August 19th to October 11th — during which time the board passed the budget without questions. This proved to be a point of concern for TransPro when evaluating MATA. “Existing MATA board fails to provide reasonable oversight,” the report said. “Just a month ago the MATA board unanimously adopted a budget with no questions … for a fiscal year that started more than 100 days prior.”

The consulting firm found only 26 percent of the community believed in the agency’s ability to efficiently handle public funds. In order to gain the public’s trust regarding management of funds, they recommended the entire board be replaced.

“The MATA board as currently constituted should be replaced with new members who will take seriously their responsibility to act as the policy and oversight entity of the agency,” the report said. “New board members should be trained on expectations and responsibilities.”

Mayor Young’s decision exemplified his intentions to start a “clean slate” at the transit authority, which had been at the center of controversy and public discourse for months.

The new MATA board members pose for a group picture following their Oath of Office ceremony at City Hall on November 15, 2024. 

In the Interim

In February, Mauldin was named interim CEO following the retirement of former MATA CEO Gary Rosenfeld. Her appointment came a few months after the agency opted to nix their controversial 2023 proposed winter service changes.

These changes were proposed as a way to enhance the agency’s on-time performance and efficiency. This included stopping service after 7 p.m. as well as suspension of numerous routes. After hearing from the public at both board and public meetings, as well as from state leaders such as Justin J. Pearson, the board of commissioners opted to keep service as usual.

MATA touted these adjustments as a way to give the public more reliable
service, by addressing their shortage of mechanics and bus repair backlog. At the time, officials said they were missing 20 percent of all of their scheduled trips.

Mauldin took over as interim CEO in the aftermath, and one of the first things she did in her official capacity was retain the services of an external CFO, Hamish Davidson of J.S. Held LLC. According to Mauldin, MATA had not previously had a CFO — a crucial position in stabilizing the organization’s financials.

Shortly after publicly announcing that the agency had been operating in a deficit, officials presented their budget proposal to the Memphis City Council, who has historically been the agency’s primary source of operating funds. The council allocated more $30 million to the agency for FY25. During this time, they also said they would be more involved in MATA’s budget moving forward. Officials instantly began their process of refining the budget. Mauldin said their largest expense was wages and fringe benefits.

In the summer, Mauldin admitted that if they were still operating in the way they had been previously, they would require a budget of $85 million; instead, she proposed a draft budget of $67 million. With this draft proposal, Mauldin acknowledged there would be cuts that would impact routes, staff, and other factors. She added that these changes would “hurt,” yet they would provide the agency with a “solid sustainable foundation” to thrive.

The interim CEO said they had not been able to identify funding for their current operating system, which has caused them to make the proposed cuts. According to MATA, they would also be streamlining staffing and vendor costs, as they prepared to submit the final budget for approval. 

Days before the agency presented their balanced financials, officials announced they would be suspending trolley services, after discovering a brake issue which resulted in a “costly recommendation” from Tennessee Department of Transportation (TDOT). MATA opted to “temporarily suspend the service as opposed to making that spend” at the time. Eighteen employees were laid off as a result. The new budget was approved by the former MATA board at a meeting that same week, which included a plan to lay off more than 200 employees and suspend several ridership routes.

While the new board of commissioners voted to delay the proposed changes until February 2025, several problems have been left unanswered.

In analyzing these problems, many commentators note that these aren’t the result of one administration. Bennett Foster, executive director of Memphis For All, says most of these problems come as a result of previous leadership and people who “lack imagination.”

“Frankly, these white men who have been running MATA and running our city for the past eight years, they not only lack imagination for what MATA could be, but they also lack political will to do anything about it because of who MATA serves,” Foster says. “Black, working-class Memphians are not getting the services they need because of the people in charge and the people those leaders were serving.”

Foster says Mauldin has the “imagination and power to bring in people — both federally and statewide — to help progress the agency forward and bring in revenue.” But barriers remain in getting past these issues. 

“Nobody wants to take blame for what happened, and politicians want to point the finger at management and management can’t really respond because [Mauldin] doesn’t know where they kept the receipts — it’s not her fault,” Foster says. “Of course as soon as a Black woman takes over it’s like, ‘Okay, now we need to hold you accountable.’”

Bacarra Mauldin hugs a MATA rider moments before a February 2024 event honoring the late MATA leader, William Hudson.

A Two-Fold Discussion

Conversations about MATA seem to fall in two different categories — evaluation of leadership and funding solutions — with many of the conversations intersecting. Groups such as the Memphis Bus Riders Union and Citizens for Better Service say these cuts sent the wrong message to riders and drivers, and that the changes sent a message that “[the board] was in favor of service cuts and layoffs.” Sammie Hunter, co-chair of the Memphis Bus Riders Union, was quoted as saying the budget was enough of a reason for Mayor Paul Young to “clean house.”

Further criticism of the administration and the board stemmed from a September city council presentation by the agency. Councilwoman Yolanda Cooper-Sutton said Mauldin had been “gifted an issue from her predecessors” and condemned the agency for not asking for help in their budget crisis.

Officials reported they had been operating in an unrestricted budget deficit for the last 10 years, which also caused Cooper-Sutton to call out the board of commissioners, saying they should “share in accountability for the agency’s financial burdens.” Mauldin said the board did not know the state of affairs, and when she was given full visibility over their finances, she shared the information with the board.

“I know that it’s unbelievable,” Mauldin said. “I know that it’s unacceptable, but we have done everything in our power to bring this in-line so that we could provide the service this city needs and deserves.”

But there’s another side — funding — and that doesn’t solely rest on the shoulders of the agency. Much of the public discourse about MATA sheds light on the turbulence, but people like Foster say this doesn’t help procure additional funding.

“The people who are going to be impacted by these conversations are people that actually ride the bus,” Foster says. “It’s being used as an excuse to not take action and protect MATA from crumbling. Protect these riders — it should be talked about as a service, not [to talk about] these people who are in charge. Are we going to save MATA? People are thinking about the management — no, think about the riders. Are you willing to do what it takes to make sure they don’t experience an end to their bus routes?”

L. Rochelle Hubbard depends on MATA’s services for her day-to-day activities,with no part of her life that isn’t impacted by reliance on transit. Hubbard says she doesn’t feel like ridership is a priority in decision-making.

“It comes across that we’re at the bottom when decisions are made,” Hubbard says. 

She adds that she’s thankful for advocacy groups such as Better Transit for a Better Memphis who have helped amplify their voices, but she can’t help but feel that, although the agency hears their riders, “very little is done.” Still, Hubbard hopes that the new board, who she says has members that represent the voices of riders, will bring new change.

“Keep the riders at the forefront of this fight to establish a better transit for better Memphis,” Hubbard says.

Cardell Orrin, executive director of Stand for Children, says, in his advocacy work, public transit has consistently been among the top issues people have talked about, by both community members and elected officials.

“We’ve had studies that show how things could be better for people to access jobs, healthcare, food, education, workforce development — almost anything you can think of could get better if we had a better transit system,” Orrin says. “We’ve created a transit system of necessity. Only people who have to ride transit for the most part ride it, even though a lot of people we hear from would like to ride public transit, whether it be for convenience or the environment … but we can’t rely on an ill-functioning and an ill-funded system.”

Ridership has plummeted as a result of Covid-19, playing a major factor in the state of transit, Mauldin said in a previous conversation. Agencies are also in the aftermath of Covid-19 relief funds running out.“That really propelled the state of financial instability for transit agencies across the country, large and small,” Mauldin said.

Mauldin says the agency’s debt has been growing due to the increased cost of doing business, decreased ridership, and flat funding. Officials say funding also impacts on-time performance.

With the city being the agency’s primary funding source, many people such as Foster say the city shares in the responsibility to maintain transit service. Foster says the agency seems to have not been a priority in current and previous administrations.

Fuel to Move Faster

These months of turmoil reached a climax when Memphis Mayor Paul Young said he was looking to start a “clean slate” by replacing all members of MATA’s board of commissioners following the release of a draft report from TransPro.

The analysis indicated that public transportation has its share of financial challenges — which MATA officials have continuously noted, citing lack of funding contributing to their budget woes. However, TransPro said MATAs challenges “are further amplified by a lack of focus on the daily needs of customers, poor financial management and oversight, and the pursuit of major projects that are straining the limited staff and fiscal resources of the authority.”

While many people have applauded the report — as it led to a change in board leadership — it isn’t without flaws. Orrin, for example, says people have problems with public transit and where the money is going. But, he says, the report fails to provide context for how public transit is funded locally as opposed to other cities. 

“I affirm that people are concerned about having adequate public transit. I think working back from that, the cause is not necessarily what they relate there about whether [it’s funding] being put toward these bigger projects, because the challenge of making that kind of connection is that the bigger projects they list are supposed to make transit better.”

One example Orrin refers to is MATA’s Memphis Innovation Corridor, the first bus rapid transit (BRT) system in Memphis. BRT is commended as representing the future of public transit, as a bus route that operates like a rail line with 31 stops along the way. 

Mauldin says they have not made any decisions to scale back from the project at this time, as they also value the contributions from federal partners such as Congressman Steve Cohen and the Federal Transit Administration.

“The BRT project is the core of the mobility system,” Mauldin explains. “We’re continuing to work with Mayor Young and his administration to see that project through at this point.”

She adds that the report also indicates making a new operation system a priority, a recommendation they are following.

“Overall, the report didn’t reveal anything we didn’t already know,” Mauldin says. “Things were already underway, so it’s good to have that report to validate some of that. We’re using that report as fuel to move us a little faster in that direction that we were going. We’re well aware of some of the problems that existed, but again, those problems didn’t start on February 1st when I became the interim. We definitely are working very hard — from the moment I took over — to try to rectify as many of those as necessary, but the fundamental issue for all of that is a lack of funding. We just don’t have the dedicated funding.”

What’s Next?

Mauldin’s recent appointment as interim CEO comes after being at the agency for three and a half years. Though this year has had its share of controversy and setbacks, Mauldin views it as a valuable step forward in elevating public conversations around transit.

“Public transportation is more of a conversation today than it was when I first got here,” Mauldin says. “People are truly giving it the time and attention that it’s really needed for quite a long time. The fact that we’re talking about it means we’re on the right path to truly fixing it because we all know this community really needs and deserves quality transit.”

Currently, MATA is working on a financial plan to bring the trolleys back, with Mauldin saying they expect to bring something to the board “very soon.” 

In evaluating the TransPro report, Mauldin says they are taking a “hard look” and working with Young on solutions, but there are a lot of things the report showed that they already knew.

Moving forward, MATA is looking to work with city, state, and federal partners to get more funding while also working with community groups and riders. And Mauldin says they’re not running from accountability.

“We’re not happy about the state of the transit authority right now and the service we provide,” she says. “We’re working every day, all day, half of the night even, trying to make service better, and I’m actually very proud of our team and what we’ve been able to accomplish so far along the journey.”

In the midst of chaos and discourse, Mauldin says she doesn’t want the work of the operators to get overlooked. While there is work to be done, she says the resilience and commitment of her team is important to address.

“The story of MATA is going to be a story of resilience,” Mauldin says. “We’re going to be the comeback kids. I believe that with all of the attention, all of the interest and development of our system, we’re going to be better on the other side because of this.”

Foster says they’re hopeful about Mauldin and her administration, saying they agree with who should take priority in decisions — the riders.

“I like her. I like the new board,” Foster says. “That’s promising, that’s giving me hope, and I do think what we saw in Nashville with the transit referendum is kind of sending a signal that people want public transit. People want that service, so I think we should prepare for something similar. We can put that on the ballot in 2026 and try to get some dedicated revenue.”