New Board Faces Financial Challenges as Memphis Area Transit Authority Seeks Improvement

New Board Takes Charge Amid Financial Woes of Memphis Area Transit Authority

In the vibrant city of Memphis, a brand new board has taken the reins of the Memphis Area Transit Authority (MATA). But before local residents start dreaming about improvements, there’s a hefty mountain of challenges waiting at their doorstep. This newly appointed board has already made headlines by reversing some troubling decisions made by their predecessors, who were widely criticized for neglecting basic transit needs. However, despite their best intentions, they’re running into the reality—MATA is still strapped for cash.

Promises of Change Amid Budget Shortfalls

During a recent retreat, interim CFO Hamish Davidson made a daunting forecast: if things don’t change fast, MATA could see its cash flow dipping into the negative as early as spring. That’s a tough pill to swallow for a board that just a week before, rescued MATA from route cuts and layoffs that would have left countless riders high and dry. “This is our fault now, right?” joked board member Dana Pointer, CEO of Preserver Partners, as the room erupted in knowing laughter. But beneath the jovial atmosphere lies a difficult job ahead.

Old Problems, New Faces

The current board is composed of nine fresh faces, all new to the agency—unlike previous board configurations that allowed for a mix of new and experienced members. This complete turnover poses a unique challenge for them. They must tackle pressing issues like underfunding, a broad service area, and aging buses. These issues have resulted in long wait times for public transit riders, affecting over 25,000 households in Memphis that lack the convenience of having a car.

Transit advocates have not held back in their criticism, pointing out that the new board can’t overhaul MATA alone. “They’re gonna need the help of the mayor and the city council,” stressed Johnnie Mosley, the founding chairman of Citizens For Better Service. “First of all, they’re new, so they’re in the learning stage.”

Learning the Ropes

During their retreat, the board got down to business. They not only examined the challenges of MATA’s service area—where just 55 buses serve a sprawling 280 square miles—but also reviewed state open meeting laws, encompassing the bounds of their authority. Emily Greer, the board chair and owner of Greer Leadership Solutions, guided discussions about how they would organize their committee work, emphasizing the importance of focusing on MATA riders in every decision they make.

Members like Cynthia Bailey, who represents the Memphis Bus Riders Union, highlighted the riders’ perspectives, while transportation expert Jackson McNeil pointed to the crucial need for MATA to secure a dedicated funding source that has been woefully absent. “Not only do we not have dedicated local funding, but we also receive much lower operating funding than our peers,” McNeil pointed out, making a real case for why investing in transit is essential.

The Financial Crunch

As Davidson unraveled the financial mess left by previous administrators, the sobering reality hit hard. Overspending and operating on an unsustainable budget have left MATA teetering on the edge of a financial crisis. It’s essential to note that while they are enthusiastic about transforming the agency, the new board can’t raise fresh funds on their own to cover the gaps. They can’t borrow money, issue bonds, or even sell and lease real estate without the Memphis City Council’s blessing.

What’s clear is that these problems didn’t just occur overnight. According to the Better Transit for a Better Memphis coalition, they stem from decades of chronic underfunding. “The conversation needs to shift from board appointments to the larger, systemic problem—Memphis simply isn’t investing enough in public transit,” they reiterated.

A Shift in Strategy

Leo Arnoult, a coalition member and retired consultant, mentioned that the new board signifies that MATA should be treated with the same level of importance as critical city services. “It really comes down to a fresh new board with hopefully more political savvy,” Arnoult quipped, “having the ability to join forces with the daily bus riders.”

The road ahead is undoubtedly rocky for the new MATA board. They face an uphill battle, but let’s keep hoping they can transform the transit system into a reliable option that everyone in Memphis can trust. Here’s to better transport and a brighter future for Memphis residents!