Memphis Invests in Overhaul of Troubled Bus System Amid $60 Million Deficit

Memphis Takes Steps to Reshape Its Bus System

Memphis, Tenn. is in the midst of a significant initiative to rejuvenate its struggling public transit system. The city has decided to invest a hefty sum in consulting services aimed at analyzing and hopefully fixing the troubles that have left the Memphis Area Transit Authority (MATA) grappling with a staggering $60 million deficit. The question on everyone’s mind is: what will a MATA makeover really look like?

The Road to Recovery

Before any improvements can be made, city leaders recognize the necessity of a thorough investigation into how the system fell into such a deep financial hole. Currently, two detailed audits are underway to explore both the financial and operational effectiveness of MATA’s bus and trolley services. “We’ve got to dig deep and figure out where the obstacles lie,” stated Mayor Paul Young in a recent conversation.

With a board composed of nine members—ranging from a pastor to a retired Supreme Court Justice—there’s certainly a diverse array of perspectives guiding MATA. “We’re certainly going to be looking at the board,” Mayor Young noted, as he emphasized the importance of having the right leadership in place. The commissioners are chosen by the city’s mayor and then approved by the city council, ensuring that there’s a layer of accountability in the decision-making process.

A New Leadership Approach

Recently appointed MATA Board Chairman, Michael Fulton, who has experience in both public policy and airport authority management, made headlines with an opinion piece published in a local outlet. In it, he declared, “MATA does not have adequate funding.” He pointed out that the agency had “overextended itself” in its attempts to provide essential services to the community. It’s this overreaching that led to the unfortunate shutdown of trolley services, the elimination of certain bus routes, and even job cuts for many employees.

Consulting for Change

The City of Memphis has contracted a Florida-based consulting firm for $330,000 to help reshape MATA. This consulting group, TransPro, is responsible for diving deep into MATA’s operations to uncover inefficiencies and areas for improvement. “One of our consultants, TransPro, is really looking at operations with a careful eye,” said Mayor Young, explaining that this is a crucial part of their revival strategy. Plus, a separate audit is also currently evaluating MATA’s financial status, shedding light on the underlying issues.

Financial Oversight and Management

MATA’s recent financial report revealed significant spending patterns, including a $230,000 payout to a management and advisory firm called RATP Dev. USA, Inc., while another company, Mid-South Transportation Management, Inc. (MTM), has been managing MATA’s staff for a staggering reimbursement of $3.8 million in 2023 alone. Outsourcing has been a long-standing practice for MATA, but the city is now committed to examining every contract with a critical eye. Mayor Young said, “Our goal at the end of the day is to ensure that we have a stronger system as a result of all the work that we know we’re going to have to do over the next couple of months.”

Looking Ahead

As discussions continue around shaping the future of MATA, Chairman Fulton recognizes the need for “tighter internal controls” within the organization. This sentiment was strongly echoed in the 2023 financial audit, indicating a clear call for reform.

As Memphis embarks on this journey to restore its public transit system, the community remains hopeful for effective solutions that will ultimately lead to a more dependable, efficient MATA. Public transit is not just a service; it’s a vital lifeline that connects residents to jobs, education, and essential resources. With the city’s determination and proactive measures, there’s a sense of optimism buzzing through the streets of Memphis.