Categories
Cover Feature News

Business Unusual at MATA

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.” 

Categories
News News Blog News Feature

City Council Replaces Entire MATA Board

All members of the Memphis Area Transit Authority’s(MATA) board of commissioners have been replaced following the recommendation of a consulting firm.

Mayor Paul Young announced Friday he was starting a “clean slate” on MATA’s leadership after a draft report from the consulting agency TransPro was released. TransPro said the previous board failed to “provide reasonable oversight.”

The previous board consisted of Michael Fulton, Angus Blair, Sara Burnett, Janice Holder, Anton Mack, Ed Stephens III, Shelia Williams, Martin Lipinski, and Courtney McNeal. It will be replaced with Brandon Arrindale, Cynthia Bailey, Emily Greer, Sandi Klink, Brian Marflak, Jackson McNeil, Anna McQuiston, Dana Pointer, and Maya Siggers.

Young told the council that replacing the board is an “aggressive action” and showed that this is not indicative of one person. His replacements include bus advocates, logistic, financial and legal experts, and more.

“[The MATA Board] has served nobly over the years and this is not an indication of them or their integrity,” Young said. “This is a hard reset.”

TransPro reviewed MATA from August 19 to October 11. During that time the board had passed a budget that not only included service cuts, but prompted the layoff of more than 200 employees. Board members said these cuts were made to ensure the viability of the agency, as officials had announced a $60 million deficit this summer.

During Tuesday’s council meeting, Young said they wanted an external analysis on how they were doing on an operational level, which is why they turned to TransPro.

“[The] 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.”

Councilwoman Jerri Green called the report “nothing short of scathing.”

“It talked specifically about how the board failed over and over again in finances,” Green said. 

John Lewis, principal at TransPro, said public transportation’s purpose is to give the community reliable service, and MATA has failed to do so. Lewis said the company has worked with the agency previously, however MATA failed to address their recommendations. As a result, TransPro “severed their agreement.”

“We find ourselves not surprised [by] the situation the agency finds itself in at this moment,” Lewis said.

Categories
News News Blog News Feature

MATA Board To Be Replaced Following Transit Report

Memphis Mayor Paul Young is looking to start a “clean slate” in city transit by replacing all members of the Memphis Area Transit Authority’s (MATA) board of commissioners.

Young made the announcement Friday evening following the release of a TransPro draft report which comes after months of turmoil for the agency.

The mayor is looking to replace the current board with the following members:

Brandon Arrindale

Cynthia Bailey

Emily Greer 

Sandi Klink

Brian Marflak

Jackson McNeil

Anna McQuiston 

Dana Pointer

Maya Siggers

“This move is more about creating a clean-slate environment,” Young said. “After months of analysis, we received Transpro’s initial draft report today, which clearly spells out the challenges facing our transit system and the need to move with expediency.

“We believe the reset will help us to move more quickly toward our goal of creating a system that better connects our residents with jobs, healthcare, and essential services.” 

TransPro, a transportation consulting business, conducted their analysis from August 19 to October 11. During this time the board had passed a budget that not only included service cuts, but prompted the layoff of more than 200 employees. Board members said these cuts were made to ensure the viability of the agency, as officials had announced a $60 million deficit this summer.

“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.”

MATA’s board has been criticized by not only bus riders and community advocates, but city leaders as well. During a September Memphis City Council meeting, Council member Yolanda Cooper-Sutton condemned the board for not speaking up about a problem that had been 10 years in the making. 

“No one knew there was a deficiency coming down the pipeline? No one?” Cooper-Sutton said. “I’m going to tell you what my spirit is discerning — someone is lying and not telling the truth. You’re not going to tell me that the educated board with all those alphabets behind their name that no one knew and saw this coming for 10 years? It’s unbelievable.”

The analysis notes that public transportation has its share of financial challenges. MATA officials have continuously made note of this 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.”

The organization 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 recommend 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 the expectations and responsibilities that membership on this board entails.

“Furthermore, performance metrics should be established on the operations, finances, and customer satisfaction of the agency for the leadership team to be held accountable to and provide true transparency to the community.” 

TransPro’s 117-page recommendation thoroughly summarizes recommendations for the agency, analyzes bus usage and ridership, and on-time performance amongst other things. They said a comprehensive financial review “is currently underway.”

Categories
News News Blog News Feature

Public Still Unhappy With MATA’s Transparency After Public Meeting

While the city of Memphis has allocated $30 million to Memphis Area Transit Authority (MATA) for fiscal year 2025 (FY25), questions remain regarding the organization’s $60 million deficit.

During the June 2024 MATA Board of Commissioner meeting on Wednesday, several members of the public expressed their concern for the deficit. Prior to the meeting, organizations such as Citizens for Better Service and Memphis Bus Riders Union said they were unhappy with the organization’s previous ways of addressing the issue.

“MATA owes the city of Memphis, especially bus riders, an explanation of how it is going to solve the deficit without hurting bus riders,” Johnnie Mosley, founding chairman of Citizens for Better Service, said.

These comments came after MATA administration presented their budget proposal earlier this month to the Memphis City Council for consideration.

During the meeting, the transportation agency did not directly address the deficit. Instead, MATA said they were committed to increasing revenue and “refining [their] process of spending.” At the board meeting, MATA interim CEO Bacarra Mauldin said the council would be “more involved” with all organizations and agencies receiving money from the city. 

Mauldin also said, with the city being their primary funding source, they want to make sure they are being as “transparent” as possible.

Shelby County government has allocated $1.2 million towards MATA for FY25, which Mauldin said is “consistent with where they’ve been for the past few years.” She noted that while it may seem like a small amount, their consideration in the budget means there is still the “opportunity to move forward.”

As the city has wrapped up its budget season, Mauldin said she is focused on building relationships with county commissioners and administration to procure a “higher level of funding” in the future.

“We know that the money that we have from the city of Memphis as well as Shelby County will not plug the entire hole,” Mauldin said. “We’re going to continue to work with those funding partners, but in addition we’re going to look into some other ways to get funding to close that gap. Most importantly, we’re going to look in the mirror and we’re going to tighten our own belts, and we’re going to spend smarter on the right things at the right time.”

She added that they are putting safeguards in place in order to ensure they’re being “good stewards of all the taxpayer’s money.”

Hamish Davidson of J.S. Held LLC has been retained by the organization as an external CFO and presented on “financial controls” during the board meeting. Davidson remarked that finance is “an area where if you don’t have the proper controls then your finance department can leak like a sieve.” To prevent this, Davidson said they are working to “spend smarter” and make sure they know where every dollar is spent.

Davidson said they currently have an understanding of MATA’s “historical processes and procedures” as well as their accounting systems. They also have gained the trust of employees.

However, he said they still need to identify their risk profiles and “current and future state of their budget and headcount,” and “determine the appropriate controls, reporting, and policies necessary.”

“A lot of these processes need to be updated,” Davidson said. “They’re totally out of date and more importantly they also need to be followed to the letter.”

Davidson said when he was retained in February, he thought they would be “long finished” by now in addressing these things, but he said it’s been put on the back burner due to more “pressing issues” related to MATA’s financials such as preparing the budget for FY25.

He said over the next few weeks they could create a timetable to present to MATA’s Board of Commissioners.

Close to the end of the meeting, the board opened the floor for public comment. They noted that this portion was for receiving comments and that they would not engage in a “spirited debate.”

Some participants made comments about bad service from both the agency and bus drivers; however, most complaints were about the agency’s finances.

Joe Kent of the Taxpayer Justice Institute criticized the agency for saying they lead with transparency when he said they are “anything but transparent.”

“If you want to collaborate with the public you need to answer questions,” Kent said. “How are you operating with a negative $10.1 million in cash? I just don’t understand that.”

Another participant suggested that the organization was “being investigated and some indictments were coming down.”

The board said that while they were not going to go back and forth with participants, they would follow up with them individually.