Memphis Area Transit Authority (MATA) officials unanimously voted to approve the agency’s operating budget of more than $59 million for Fiscal Year 2026.
Commissioners voted during Wednesday’s board meeting, following last week’s committee meeting. The current budget encompasses a number of things, such as fixed route and trolley operations, maintenance on fixed routes and agency buildings, and safety.
The presented budget also included a reduction in operating revenue and federal grant money, with an increase in state grants. The city of Memphis has historically been the agency’s primary funding source. In addition to city funds, the agency expects to pull revenue from their operations as well as state and federal funds.
John Lewis, MATA’s interim CEO, said one of the issues they came across in crafting the budget was ensuring that the agency can still support the needs of their ridership in a “fiscally responsible manner” with a “balanced budget.”
“This budget is based on Mayor [Paul] Young’s proposed budget,” Lewis said. “If those levels change — hopefully they would change in a positive manner — then we would bring back an amended budget for the MATA board.”
Commissioner Anna McQuiston added that the current budget does not include an increase in frequency from MATAplus and other main line services. She also said there would be no significant dent in the debt they have.
To address this, the board has requested that the Memphis City Council increase their yearly budget to $45 million, instead of $30 million.
The council previously discussed an amendment that would cut the agency’s funding in half to approximately $15.6 million. Council members discussed giving the agency the rest of the money when they are able to present a budget and an audit, which they have been requesting for a year.
“I think MATA’s done poor budgeting,” councilwoman Jerri Green said during the May 21st council meeting. “I can no longer continue to write a blank check up here and feel like I’m doing my duty to the public. I understand what their needs are — we support public transportation, but we have to have accountability and visibility for the public on that.”
During the agency’s Finance and Audit Committee Meeting on May 22nd, Lewis said leadership had been working on the FY ’26 budget over the last few months. Lewis said these discussions started by addressing a $3.5 million deficit.
To alleviate this, officials recommended eliminating the Groove service, locking in fuel service through contracts, and cutting overtime. Lewis also mentioned cutting back on “professional and technical services.”
He added that these recommendations, in addition to others, are projected to save the agency $3.6 million, putting MATA in a budget surplus and resulting in a balanced budget.
McQuiston mentioned that within the $30 million budget, they are repairing the steel-wheeled trolleys, however it does not include operating and staffing costs.
Officials also said they are planning a public announcement regarding rubber-tire trolley services on Main Street, within “a week to ten days” of Wednesday’s meeting. Lewis said they will be running an “adjusted service” schedule with a lower level of frequency.
