The Memphis Area Transit Authority (MATA) has decided to suspend trolley service as they prepare to finalize their budget. This decision sheds light on potential service and employment cuts as the agency works to scale back spending in hopes of providing its board with a balanced budget.
Officials announced on Sunday that they discovered a trolley brake issue which resulted in a “costly” recommendation from the Tennessee Department of Transportation (TDOT). The agency opted to temporarily suspend the service rather than “making that spend right now.”
As a result, 18 employees have been laid off. The maintenance team remains in place, as MATA said they hope to bring the trolley back.
“The balance is very delicate,” said Bacarra Mauldin, MATA interim CEO. “While we want a system of choice and transportation options, for now, we must focus on the needs of riders who rely on public transportation to get to work, doctor appointments, school, and other critical destinations.”
Downtown riders have the option of using Groove On Demand services as service is halted.
This decision comes as the agency is preparing to submit their final budget to the board of commissioners for approval. In May, officials revealed the agency was facing a $60 million deficit.
As reported earlier, Mauldin said the agency’s debt has been growing due to the increased cost of doing business, decreased ridership, and flat funding.
“If we were to keep operating the way we’re operating today, our budget would be $85 million,” Mauldin said. “We have committed to our board that we were going to present a balanced budget. We presented a draft budget of $67 million for FY25.”
Mauldin said they have not been able to identify funding for their current operating system, which has caused them to make their proposed cuts. According to MATA, they will also be streamlining staffing and vendor costs, as they prepare to submit the final budget for approval.
During today’s Memphis City Council committee meeting, Mauldin said they have based their budget on doing things in a “completely different way,” causing them to examine different routes, expenses, and headcount as “everything is on the table.”
MATA said they are looking to have their budget approved on August 27th and to send notices to affected employees on August 28th. They said this is set to affect more than 200 employees.
“Every affected employee will be notified in the coming weeks and receive support securing alternate employment,” MATA said in a statement. “In addition, vendor contracts have been discontinued and/or dramatically scaled back.”
Council member Rhonda Logan remarked that the deficit has been an issue for a while, however the public has only become aware recently.
“I think it’s very important that the community understands the fact that it’s not like the MATA system is spiraling right now — this has been going on for a very long time,” Logan said. “Unfortunately we have not known, as a council, that you all were in that shape.”
