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Memphis City Council Places Restrictions on MATA Funding

City council members discussing public transportation funding

News Summary

The Memphis City Council has voted to restrict the $30 million funding for the Memphis Area Transit Authority (MATA) for the coming fiscal year. Initially, only $15 million will be released, pending MATA’s presentation of a financial audit and operational plan. This decision aims to enhance accountability in spending taxpayer dollars while ensuring MATA can maintain basic operations amidst critical service challenges. Council members are concerned that MATA may not adequately meet transportation needs without sufficient funding.

Memphis – The Memphis City Council has voted to place restrictions on the $30 million funding designated for the Memphis Area Transit Authority (MATA) for the upcoming fiscal year. Under the new decision, only $15 million will be released initially, contingent upon MATA’s presentation of a full financial audit and operational plans for utilizing the remaining funds.

Council members have been provided copies of MATA’s budget, which outlines the agency’s financial resources and future allocations. Memphis Mayor Paul Young has indicated that a comprehensive financial audit by PricewaterhouseCoopers is expected to be completed within two months. The results of this audit are critical for determining how MATA will proceed with securing the remainder of the funding.

John Lewis, MATA’s interim CEO, has expressed confusion regarding the distinction between “operational plans” and the budget already submitted to the council. MATA’s leadership has stressed that the $30 million is merely sufficient for the agency to maintain its current operations and does not enable essential expansions, service restorations, or debt reduction. The first $15 million is anticipated to sustain MATA through the first six months of the fiscal year, though there are concerns that this amount may not be enough.

MATA officials have noted that to begin restoring and expanding services effectively, a total funding requirement of $38 million would be needed, which would increase the operational capacity of fixed routes, MATAplus, and trolleys. Furthermore, if the agency were to receive $45 million, it could implement all suggested improvements. Advocates for public transportation argue that MATA requires $50 million to sufficiently meet community needs, as the current level of service is viewed as minimal at best, with some routes operating on two-hour cycles.

The Better Transit for a Better Memphis coalition has highlighted that the current service only provides about 70% of what was available prior to the COVID-19 pandemic. These reductions have prompted city officials to reconsider how public transportation funding is allocated and managed going forward.

Councilwoman Jerri Green, who supports the decision regarding MATA’s funding, has underscored the importance of accountability and transparency regarding how taxpayer dollars are spent in relation to public transportation services. Councilman Edmund Ford Sr., chair of the transit committee, has stated plans for MATA to review their budget in a council meeting scheduled for June 24, which will allow for further discussion regarding the funding allocations.

Despite initial skepticism regarding the funding split, Mayor Young has chosen to support the measure, aimed at ensuring that futures spending by MATA is adequately scrutinized. John Lewis has cautioned that if the second half of the funding is not released within the first half of the fiscal year, MATA would face severe service reductions that could impact ridership and operational efficiency.

Emily Greer, chair of MATA’s Board, has expressed optimism that the agency will meet the council’s requirements to secure the necessary funding. This discussion regarding transit funding has further coincided with proposals concerning raises for city employees, an issue that was addressed during the council’s budget deliberations. Initially, proposals for raises were omitted, with city employees—except for those in the Memphis Fire Department—not receiving any salary adjustments.

The council’s resolution to enforce stricter financial oversight is a response to past shortfalls and aims to provide clearer accountability concerning MATA’s operations and use of public funds. However, voices from within the council and community advocates have raised concerns that without adequate financial resources, MATA may continue to struggle in meeting the transportation needs of Memphis residents.