Concerns Over Memphis Transit Authority’s $1.3 Million Administrative Spending and $60 Million Deficit

Concerns Raised Over Transit Spending in Memphis

Memphis, Tenn. —

In a bustling city like Memphis, transportation is key to ensuring that everyone has access to jobs, schools, and daily needs. Recently, a report delivered some shocking news about the state of the Memphis Area Transit Authority (MATA) and how it has been dealing with its finances. That’s right, folks — a transit consulting firm called TransPro has flagged a whopping $1.3 million spent on MATA’s administrative offices as possibly being a “frivolous use of taxpayer funds.”

This news is not sitting well with the public. MATA’s financial decisions came under scrutiny after Mayor Paul Young commissioned TransPro to evaluate their operations, and boy, did they find some issues! The report, which spans 117 pages, dives deep into MATA’s many struggles, including claims of flat funding, decreased ridership, and, alarmingly, a $60 million deficit.

MATA operator Sandra Scott expressed her disbelief, saying, “All this building and stuff. Fixing the tracks and putting up signs. We had no idea this was coming down the line. It was a shock!” The truth is, the troubles don’t stop with high office expenses. MATA had already poured nearly $6 million into its trolleys, and there are still plenty of ongoing issues reported.

Interestingly, MATA had received funding from the Federal Transit Administration for trolley improvements. Yet, just two months after telling the FTA that they had big plans for the trolley network, the agency announced it didn’t even have money to fix critical brake issues. This decision led to the heartbreaking halt of the trolleys and the layoffs of 18 employees in the Trolley Division, including Scott. This left many in the city worried about the trolleys’ future, especially with a separate modern streetcar project that was already costing MATA a staggering $2 million and was set to continue with new rail cars at $800,000.

John Lewis, a representative from TransPro, expressed serious concerns during a recent council committee meeting. He urged the city to reconsider many costly projects, referring to them as “pie in the sky projects.” Lewis stated, “These are endeavors that should be delayed until you can meet the basic needs of your customers.” His comments highlight a growing unease regarding MATA’s financial priorities.

Louis pointed out that MATA seems unable or unwilling to answer crucial financial questions posed by the consulting firm. During the same committee meeting, MATA’s Interim CEO Bacarra Mauldin declined to comment when approached, leaving many unanswered questions swirling about the trolleys, the recent report, and the significant money spent on their offices at One Commerce.

According to the report, MATA’s decision to spend over $267,210 on an annual lease for their new office space, and further expanding it for an additional $251,352 annually, appears questionable. TransPro was notably critical, suggesting that the old office, which had faced flooding, simply needed “some drywall reapplied and finished.” Instead, MATA made what some believe are extravagant decisions that don’t support their fundamental functions.

In response to the uproar, it seems some city leaders are taking the matter seriously. They agreed in the Tuesday committee meeting to try to delay staffing and service cuts that are set to kick in next month. The hope is to find potential funding sources that could push this date back to February and allow MATA to focus on stabilizing basic services.

As discussions continue, the community will likely watch closely as MATA navigates these challenging waters, hoping for better management of finances that affects everyone in Memphis who relies on public transportation.