transit in Memphis – Memphis Flyer

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.”

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.

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.”