This meeting comes weeks after it was revealed that MATA had a $60 million deficit.
receive Fiscal Year 2025 (FY25), the Memphis Area Transit Authority has asked the Memphis City Council receive $30,670,000. A few weeks have passed since it was made public that MATA was in the black by $60 million.
For FY25, MATA is estimating $65,219,738 in revenue, with the majority coming from federal grants and contributions from the city and county governments. According to the agency, operating finances are primarily provided by the city.
The agency stated that it is dedicated to raising revenue and “refining [its] process of spending” notwithstanding a budget imbalance.
During the budget hearing on Tuesday afternoon, MATA interim CEO Baccara Mauldin and other agency representatives addressed the council, stating, “We recognize that there is a gap.”
“I own what I’ve inherited as the leader of MATA, both personally and professionally,” Mauldin declared. “I own the issues, but I also own the design of the solution. The wheel that will propel Memphis and MATA toward improved mobility is in my hands.
Mauldin stated before her presentation that two of her primary leadership ideals are fiscal accountability and transparency. Consequently, on her second day of work, she hired a “external CFO.” During the lecture, Mauldin was joined by Hamish Davidson from J.S. Held LLC.
According to Mauldin, the projected budget for FY25 is $84,211,321, with salary and fringe benefits accounting for the majority of the expenditure. She continued by saying that the agency needs to offer more competitive pay packages because of the nature of the employment. The CEO further underlined the necessity for operators and mechanics at MATA.
MATA claims it needs extra buses for fixed routes and MATAPlus services for individuals with impairments in addition to competitive remuneration packages. A significant portion will be used to build Memphis’ first bus rapid transit system, the Innovation Corridor.
Mauldin reminded the council that these modifications are essential to the city’s “full mobility system.” She added that she would have town hall meetings with constituents and meet with council members.
“We want to make sure that we reach every community through this process and that we get to talk to each of you as well as our other stakeholders, so it will take some time,” Mauldin stated. “Ultimately, we want to make sure that the process and plan for reimagining what transit looks like is something we can all support and feel like we had a hand in.”
Following the presentation, a number of council members had concerns about expanding MATA services to include the I-40 corridor, accountability procedures, and the fleet of electric vehicles.
Councilman Chase Carlisle declared, “The city of Memphis, the Memphis City Council is fully committed to supporting MATA,” just before the MATA team was removed from the presentation. It is essential for the delivery of fundamental services, workforce growth, and opportunities. The city pledges to continue funding MATA at the same level as before. I am aware of the council’s dedication to that. Nobody, in my opinion, has any plans to cut back. I’m looking forward to the reimagining process, and the city of Memphis, or at least the city council, is fully committed to supporting at the level it has traditionally financed,” Carlisle stated.
Carlisle continued, saying the city has a “great opportunity” to rethink on-demand services because COVID altered the way the city functioned and saw them.
Some residents expressed dissatisfaction since the council chose not to question MATA on the deficit. The Memphis Bus Riders Union’s co-chair, Cynthia Bailey, stated that city council shouldn’t absolve MATA of responsibility.
Sammie Hunter, co-chair of the Memphis Bus Riders Union, continued, “The Memphis City Council must send a strong [message] to MATA that they are going to hold MATA accountable for past and future funding.”
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