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City Council Questions MATA’s Transparency During Presentation

Photo: Justin Fox Burks

Memphis City Councilwoman Yolanda Cooper-Sutton said that the Memphis Area Transit Authority’s (MATA) interim CEO Bacarra Mauldin had been “gifted an issue” and criticized the agency for not asking for help in their budget crisis. 

These comments came after officials noted that the agency had been operating in an unrestricted budget deficit for the last 10 years.

“To hear that this is a 10-year-long thing that you all have known about — that you didn’t have enough money and never said anything to anyone is very disturbing,” Cooper-Sutton said. “I don’t think you would run your household for 10 years and no one would say anything.”

Cooper-Sutton went on to call out the organization’s Board of Commissioners for not speaking up as well, and that they should share in accountability for the agency’s financial burdens.

“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.”

Mauldin responded saying she remembers being two doors down from her predecessor and had no idea that the agency was facing financial hardship.

“The board didn’t know,” Mauldin said. “From the moment that we gave full visibility over what was happening with the finances, I shared that information with the board and we have as governance partners to try to right this ship. I know that it’s unbelievable, 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.”

Today’s meeting follows the passage of the transit authority’s budget for Fiscal Year 2025 which resulted in more than 200 layoffs and the suspension of routes. Riders and community members have openly called on the council to intervene in the agency’s problems. The council had also requested that MATA appear before them every two weeks to provide updates in hopes of increasing transparency. 

Mauldin said that her team was “beaten down” and that all they want is to make things right.

“Our goal is to develop a robust transit system that positions Memphis to compete nationally,” Mauldin said. “The city deserves that and we want to give it to the city. We’re committed to providing insights and context necessary to be a part of the solution and help drive the city towards a successful future.”

MATA’s presentation covered their financials, staff optimization, and the steps they plan to take moving forward. Mauldin was joined by external chief financial officer Hamish Davidson, chief of strategic partnerships and programs Erik Stevenson, and chief development officer John Lancaster.

Davidson highlighted that MATAs debt has grown over time due to increased costs and a decrease in ridership and flat funding. He added that the budget affects on-time performance and they are currently operating at a $85 million budget, with a proposed balanced budget of $67.8 million.

“This is not something that occurred in one year,” Davidson said. “This is something that has been continuing for many years.”

According to Davidson, this is something that the media and others had been “lambasting” the agency about, and wanted to note that their deficit wasn’t an annual loss.

The approved budget shows that a majority of MATA’s funding comes through grant revenue ($64 million) with the City of Memphis being its primary funding source at $30 million. The rest of their budget is supplemented by their operating revenue of $3.7 million from passenger fares, advertising, and charters.

Councilwoman Pearl Eva Walker noted that the council’s assessment of MATA’s  troubles stemmed from lack of on-going information and updates, as opposed to understanding of finances.

In hopes of adding context to the operational side, Lancaster explained that their problems also stem from their density and size of their service area. MATA covers nearly 300 square miles with a fleet of less than 100 buses. For comparison, Lancaster said they operated more than 300 buses in a little over 100 square miles in the 1970s.

Stevenson said they had to reduce their workforce in order to stay in line with their budget. As a result 18 trolley workers, 29 administrative personnel, and 52 unionized personnel were laid off with 75 eliminated positions.

While the agency presented a PowerPoint in hopes of providing answers, the council was still not pleased with their presentation, prompting several questions and comments from council members. Walker noted that the presentation was very “general.”

Councilwoman Rhonda Logan questioned if employee perks such as employee vehicles had been reduced as the company works to cut down on spending. Mauldin said she would provide the council with a detailed list of these things, including the context in which they exist.  

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Citizens Call On City Officials To Act In MATA’s Budget Crisis

Photo: Justin Fox Burks

Riders and citizens are calling on city leaders to intervene regarding the effects of the Memphis Area Transit Authority’s(MATA) newest budget.

These comments come days after the $67 million budget was approved unanimously by the agency’s Board of Commissioners. Prior to the approval, interim CEO Bacarra Mauldin and her team had been open about how the budget would affect both riders and personnel with routes being suspended and more than 200 employees being laid off.

While MATA had been vocal about these proposed changes, this didn’t make it easier for the public to accept, and are calling on the city to intervene.  In a statement released by the Moral Budget Coalition, Bennett Foster, executive director for Memphis For All said these changes will affect “tens of thousands of Memphians,” and the city “has the power to prevent that.”

“Chronic underfunding has already led to reduced transit services, hitting hardest in majority Black neighborhoods that depend on public transportation the most,” Foster said in a statement. “This situation jeopardizes public safety, economic mobility, and racial justice. Enhancing MATA is not only vital for connecting residents to jobs, healthcare, and education–it is also crucial for the economic growth and overall quality of life in Memphis.”

The Moral Budget Coalition has asked for Mayor Paul Young and the Memphis City Council to allocate at least $20 million to MATA. They have several recommendations such as increasing property taxes, re-allocating portions of rainy day funds, and increasing vehicle registration.

MATA officials have noted that the city has historically been their primary funding source. During this year’s budget season, Memphis City Council allocated $30 million for Fiscal Year 2025.It was also during this budget season that officials said they would be more involved in MATA’s budget moving forward.

Members of the coalition spoke about how citizens are dependent on public transit for their transportation needs. Foster said the city is primarily responsible for maintaining transit service, and that he felt MATA had not been a priority in current and previous administrations.

“We are here to make sure that cycle of chronic disinvestment in public transit and public services –it begins and ends here,” Foster said. “If we don’t take action now – it’ll be too late. If MATA is cutting their employees in half, cutting their service by 30 percent we’re gonna lose access to federal funds, we could lose formula funds that match our budget and we’re gonna get into a debt spiral.”

The public also made comments during this month’s meeting. One attendee said they didn’t agree that the agency was out of options for revenue and suggested that the city tax airplane passengers, real estate transactions, football and basketball tickets, as well as offering Beale Street transportation.

“If you don’t think this is a desperate situation, I’m telling you it is,” the attendee said. 

Funding has long been an issue for MATA since the pandemic. During Tuesday’s board meeting, Mauldin stressed this saying that the agency struggled to receive consistent funding as CARES funds ran out.

“MATA has operated for a number of years without any increases in the amount operating funds made available to it,”  Hamish Davidson, external CFO of J.S. Held LLC  said during Tuesday’s meeting. “It has managed to survive and indeed grow beyond its means through the provision of the CARES Act funds made available post Covid.”

Davidson said MATA cannot sustain itself without the increase of funds, and they receive 95 percent of their funding from federal,state, and local funds. The other 5 percent comes from advertising and farebox revenue. Davidson said that historically funding had not stayed static, but it has reduced with no regard to inflation, and that the last two budgets were deficit budgets.

In addition to rising operating costs a majority of MATA’s costs stem from employee compensation and benefit packages. Davidson also said they have reached a new collective bargaining agreement for union members.

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MATA Board Approves Budget With More Than 200 Layoffs

Photo: Justin Fox Burks

The Memphis Area Transit Authority’s board of commissioners have unanimously approved a budget that will lead to more than 200 employees being laid off.

During the Tuesday’s monthly board of commissioners meeting, the board approved its budget for Fiscal Year 2025, with the board having requested officials present a balanced budget. In addition to staffing cuts, the budget also affects ridership routes.

Interim CEO Bacarra Mauldin has been vocal about potential changes as the organization worked to address its financial instability. Last week, the organization suspended its trolley service as it worked to scale back spending, since repairing a brake issue proved to be a “costly” expenditure.

“If we were to keep operating the way we’re operating today, our budget would be $85 million,” Mauldin said during a city hall presentation last week. “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.”

MATA board chairman Michael Fulton echoed these sentiments during the meeting, as he recognized these budget cuts as being tough decisions, but necessary for the organization’s future.

The agency has faced difficulties in procuring funding, unable to identify consistent sources. Earlier this month Mauldin said not only had ridership plummeted as a result of the pandemic, but relief funds had also run out.

As a result, the agency opted to streamline staffing and vendor costs. Mauldin said the agency’s debt has been growing due to the increased cost of doing business, decreased ridership, and flat funding. She added that their budget holds have resulted in slower on-time performance.

Last week the organization said that it planned to have the budget approved during Tuesday’s meeting, and to send notices to affected employees today.

“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.”

While these measures have been put in place in order to save the agency, this doesn’t soften the blow for riders and advocacy groups. Sammie Hunter, co-chair of the Memphis Bus Rider Union, urged the board to vote no on the measure as it seemed like the “blame” fell on riders “who had nothing to do with the $60 million deficit.”

“The proposed budget by the MATA administration is an example why Mayor Paul Young should clean house at MATA,” Hunter said in a statement prior to the meeting.

Both the Memphis Bus Rider Union and Citizens for Better Service have long voiced their opposition to these changes. The groups feel that these cuts send the wrong messages to riders and drivers, and that it “sends a message that [the board] is in favor of service cuts and layoffs.”

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MATA’s Trolley Suspension Sheds Light on Potential Agency Cuts

Photo Credit: Memphis Area Transit Authority

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.”

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MATA CEO Discusses State of Transit, Budget, and Proposed Changes

Baccarra Mauldin (Photo: Memphis Area Transit Authority)

The Memphis Area Transit Authority (MATA) has gone through significant change over the past few months, prompting questions from concerned citizens and bus riders alike.

Bacarra Mauldin was named interim CEO following the retirement of former CEO Gary Rosenfeld in February. Mauldin’s appointment followed the aftermath of the agency opting to nix their controversial proposed winter service changes.

Since those proposed changes that were presented as a way to enhance the agency’s on-time performance and efficiency, other problems have arisen, such as a $60 million deficit that was announced in May.

Mauldin said the agency is going through a “transformation” dedicated to serving Memphis and their entire service area in the best way possible.

Having worked in transit prior to arriving at MATA, Mauldin said she would call the current state of affairs “business unusual.”

“I say that as a play on ‘business as usual’ because so many transit agencies across the country are going through the same thing — at various levels and proportions,” Mauldin said. “They’re all going through their ‘isms’ when it comes to budget, and funding, and finance.”

Ridership has plummeted as a result of Covid-19, playing a major factor in the state of transit, Mauldin said. 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 said the agency’s debt has been growing due to the increased cost of doing business, decreased ridership, and flat funding. She added that their budget holds have resulted in slower on-time performance.

One of the first things Mauldin did in her official capacity was to retain the services of external CFO Hamish Davidson of J.S. Held LLC. Mauldin said up until this point, there had not been a CFO at the agency, and they needed someone to get in immediately to recreate those financials so they could “move forward with certainty.”

“Knowing good business, and what good business structure and practices look like, I made the decision early on that I needed a reputable, credible CFO to come in and rebuild the finances because the finances hadn’t been reported in quite some time,” Mauldin said. “In fact the financial reports didn’t even exist.”

In addition to this, Mauldin said the agency immediately put “cost-saving measures” into effect. MATA hopes to bring the CFO position in-house “in time.”

“The cost-saving measures will probably be a permanent thing,” Mauldin said. “We are stewards of taxpayer’s money, and we want to make sure we are always using those in the best way, and operating in transparency and good faith.”

As a result of acting in transparency, the agency has made both employees and riders aware of some of the potential changes that could take place in order to improve efficiency, performance, and the budget.

“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.”

These cuts have impacted routes, staffing, and other factors, Mauldin said. While she said these changes “hurt,” the agency has to have a “solid, sustainable foundation” to thrive.

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MATA Provides Safety and Security Updates at Board Meeting

Photo: Memphis Area Transit Authority via Facebook

The Memphis Area Transit Authority (MATA) is working to improve the safety experience for both passengers and drivers, while also working to engage with local law enforcement on safety preventions.

Keith Watson, chief safety and security officer, presented his first safety assessment at the agency’s recent board of commissioners meeting, and said upon his presentation he looked at several areas within MATA such as the safety risk management combined with their “best practices.”

Watson said the organization is split into two categories: fixed route operations and rail operations. Fixed route operations are those that occur on the “surface” on roadways of the city, while rail operations are “more regulated” than the fixed routes.

When looking at the rail operations, Watson concluded there were 31 corrective action plans (CAPS) from 2020 to 2023 for MATA. He said these are plans to address risk factors identified as a result of accidents or other safety incidents. Watson and his team were able to address these plans and reduce the number to 11 for August 2024.

In terms of fixed route operations, some of the areas that MATA identified for extra inspection were the GPS reporting and radio systems that are on each bus called “EQUANS.” Watson said these provide location reporting and time point placement.

“We talk about on-time performance, and I’ve heard many of my colleagues mention that some of the time points were not properly reporting to EQUAN. We’ve been working through that,” Watson said.

He added that they plan to invite EQUAN to their meeting so they can have a “grassroot understanding of the things that are happening for their overall safety and locating of [their] buses.”

Some other observations made to evaluate fixed route operations were facility and infrastructure inspections, route assessment, fire safety and evacuation practices, and safety prevention campaigns.

“We must remain consistent on those particular programs and engaging with our employees to have a safety culture over the overall system,” Watson said.

This ushered in a conversation on crime activity at their transit centers located on Main Street (William Hudson Transit Center), American Way, and Airways. Larceny and simple assault were the only crimes reported at all three locations and accounted for many of the offenses compared to disorderly conduct, robbery, and trespassing to name a few.

“Hudson Center, for the year, is reported with most incidents with Airways coming in at a close second,” Watson said.

He added that only some crimes make it to “paper” via their reporting center. Watson said he believed there were 94 reports made, with  operator and passenger disputes accounting for 40 of those.

“Those disputes usually stem from bus arrival/departure times, location of the bus pickups, and some personal preferences on where a passenger would like to get off outside of the revenue lane,” Watson said.

MATA has also been reviewing security footage to look for individuals that could pose a threat to the transit experience by committing crimes that are “punishable by state or federal law.” They’ve begun the process of placing “Be On The Look Out” flyers while also engaging with security contractors and local law enforcement.

The presentation closed with an overview of their safety performance in crashes where 51 percent were non-preventable, and 49 percent were preventable. A majority of these crashes involved fixed objects, with sideswiping coming in second.

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MATA Commissioners Authorize $1 Million Insurance Plan

Photo: Justin Fox Burks

The Memphis Area Transit Authority (MATA) has authorized an insurance plan nearing $1 million during their July 30th board of commissioners meeting. This decision comes as questions still surround the organization’s financial status.

MATA recommended the global insurance brokerage Arthur J. Gallagher & Co. for their plan starting through August 1, 2024, through July 31, 2025. Officials said the premium is an excess of $992,000. They said this is reasonable “based on today’s market” and is “very important for the company.”

“It’s an expense that MATA incurs every year,” an official said. “Obviously the amount differs each year. In view of MATA’s current cash flow circumstances, this is a very significant expenditure — just as any expenditure close to $1 million would be.”

Board chairman Michael Fulton expressed his concern with a policy totaling almost $1 million given the agency’s $60 million deficit.

Hamish Davidson of J.S. Held LLC, MATA’s external CFO, said as recently as Tuesday, he consulted with the city of Memphis and said MATA expected to raise an invoice against the city to “draw down against the operational grant funding” up to $1 million to cover the plan.

Shortly after gaining approval for the insurance plan, the agency informed its board that they are preparing to present one of its “most consequential budgets of MATA’s history.” 

Officials decided to forego a traditional finance report as their finance team is working on the year-end closeout which they plan to present in August. They said this will show how the organization fared for the year. 

The board of commissioners were presented with a draft of the budget, but it was not available to the public for review.

“We felt as though it would be important to put a draft of this budget in front of you,” interim CEO Bacarra Mauldin said to the organization’s board of commissioners. “We’re not going to discuss it in any detail today because we plan to have a very robust finance committee meeting, and we want to make sure you are armed with as much information as possible going into that process.”

Mauldin said they have the opportunity to balance their budget for the first time in a “considerable” amount of years. She said she is honoring her commitment to present a balanced budget to the board.

In June, the city of Memphis allocated $30 million to the organization for FY25. Shelby County gave MATA $1.2 million, which Mauldin previously said was “consistent with where they’ve been for the past few years.”

At the end of budget season, Davidson told commissioners that he would present a timetable that addresses the current and future state of their budget.

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Red Sand Project Brings Light to Human Trafficking

The Red Sand Project will fill in cracks in cement outside of MATA Airways Transit Center. (Photo: Courtesy Red Sand Project | Facebook)

Of all the counties in Tennessee, Shelby County’s population is the most vulnerable to human trafficking, according to the Tennessee Community Assessment 2023 Report released by the Engage Together Project. 

That ranking along what has been labeled the Vulnerable Population Index has been determined through a number of factors, like population density, poverty levels, crime rates, the percentage of population that speaks limited or no English, and much more. 

Individuals may be trafficked for sexual exploitation, forced labor or services, or organ sales. “There’s been human trafficking documented in every one of the 95 counties of Tennessee, so human trafficking happens everywhere,” says Rachel Sumner Haaga, executive director of Restore Corps, which aims to eradicate human trafficking by working with survivors and seeking justice through systemic change.

“One thing to note with regards to human trafficking is, it is a victimization that, unless someone reports being victimized, is exceptionally hard to assess,” Sumner Haaga adds. “If someone busts the car window of your vehicle, it is very clear that you’ve been victimized, and it’s easy to gauge that victimization. No one’s going to ask, ‘Are you sure that somebody busted your window?’ 

“Whereas, human trafficking is not only a crime that goes underreported because even the victims themselves sometimes might not be aware of their own victimization for a number of different reasons, or they may have the belief that even if they were to say something, they might not be believed, because it’s hard to understand the grooming and recruitment process.”

So building awareness of what human trafficking is and that it happens here in Memphis is important, for the victims and for the community at large. That’s why Restore Corps, in partnership with MATA, is putting on the Red Sand Project, a participatory art installation created by Molly Gochman. 

“The purpose of the project,” Sumner Haaga says, “is to utilize the red sand to fill in cracks in the sidewalk, where had the sand not been there, we likely would just jump over it; we would walk by. That’s just what we do on a daily basis. The cracks are ignored, but the red sand draws attention to them. So just like people, all over the world or in our community here, who are caught in human trafficking, they’re easy to not see; they’re easy to go by. But when there’s red sand poured in the crack or a light shined on them, it paints the idea of filling the gaps in our community. We all can have some part in filling the cracks and bringing awareness to the issue. You don’t have to work with an organization like ours to [have awareness and raise awareness about human trafficking]. Anybody can do something.”

For the Red Sand Project, which will occur on Tuesday, July 30th, 11 a.m.-12:30 p.m., the organization will spread sand around the MATA Airways Transit Center (3033 Airways Blvd.). Those who wish to help spread sand are encouraged to sign up here and will be welcome to take sand home with them afterward to fill cracks in their own neighborhoods. 

July 30th is World Day Against Trafficking in Persons. 

For more information on Restore Corps or to donate, visit their website here.

If you know someone who needs help to escape trafficking, contact the Tennessee Human Trafficking Hotline at 1-855-558-6484.

If you suspect you have come into contact with a victim of human trafficking, you may call the National Human Trafficking Hotline at 1-888-373-7888 or text 233722. Hotline staff members will identify resources in your community. For more information on human trafficking and the hotline, visit humantraffickinghotline.org.

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Bus Riders Fearful of Potential MATA Budget Solutions

Photo: Justin Fox Burks

As the Memphis Area Transit Authority (MATA) works to fix problems in their budget, bus riders are afraid that potential solutions for the agency will negatively impact service for citizens.

Johnnie Mosley, founding chairman of Citizens for Better Service, stated on Friday, July 12th, that his organization along with the Memphis Bus Riders Union received word that MATA administration met with bus drivers about the possibility of layoffs and service cuts.

MATA pledged to be more open and transparent with their ridership about changes affecting service, which Mosley said has not changed. However, he believes that both riders and drivers are concerned for the future.

“We’ve been reaching out to various drivers. We reached out to the union to see if we could get any verification or answers,” Mosley said. “In the meantime, we’ve been in close communication with Representative Justin J. Pearson, and we’re trying to figure out whether there are resources or money that the state could have to get MATA out of this situation.”

Following this comment, Erik Stevenson, chief of strategic partnerships and programs for MATA, released this statement:

“With staff and riders, we must consistently share that MATA faces a significant budget deficit resulting from years of increasing costs, decreasing ridership, and flat funding. In August, we’ll begin a thorough engagement process to assist us with the tough decisions that must be made to optimize our transportation system. To maintain our pledge to provide a balanced budget, all options have to be on the table.”

MATA’s interim CEO Bacarra Mauldin reported in her June 2024 CEO report that there is currently a hiring freeze despite their recruitment focuses on a number of open positions such as mechanics and trolley and fixed route operators. She said they are trying their best to “manage with the staff they have.”

In May, the transit authority revealed they had a $60 million deficit, and was “committed to increasing revenue and refining [its] process of spending.”

During their June budget proposal hearing in front of Memphis City Council, Mauldin said their biggest expenses are wages and fringe benefits as they have to offer competitive compensation packages. She also said MATA needed more mechanics, operators, and buses for their fixed routes and MATAPlus services for citizens with disabilities.

They also said a large amount of their budget would go towards installation of the Memphis Innovation Corridor, the first bus rapid transit service in Memphis.

While MATA has presented ways to refine their budget and spending, many riders are unhappy with some of their proposed solutions. Citizens like Mosley fear that the agency may resort to changes that would negatively affect their ridership.

Mosley alluded to the agency’s controversial proposed winter service changes that were presented in 2023. These changes included suspending service after 9 p.m. and suspending a number of routes. MATA’s board ultimately decided to nix these proposals after poor reception from the public. 

After advocating on behalf of citizens while these proposals were on the table, Mosley said he hopes that the agency doesn’t resort back to these solutions in hopes of fixing their financial issues.

“The question is: Where are they going to cut?” Mosley said. “We don’t want those cuts to [affect] underserved areas. We don’t want the same plan the board rejected in December. We need MATA to come up with plans on how to increase ridership.”

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Public Still Unhappy With MATA’s Transparency After Public Meeting

Photo: Justin Fox Burks

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.