MEMPHIS, Tenn. — Memphis Area Transit Authority has officially passed its upcoming budget after a meeting Tuesday night.
The proposed budget was passed with eight “Yes” votes and one abstention.
As a result of this, hundreds of workers will be jobless and thousands of locals will be without convenient service.
MATA announced that they would be proposing a $67 million budget for the 2025 fiscal year during Memphis City Council Committee meetings last week.
The 2024 fiscal year budget that passed was about $77 million. So now, over 200 workers will lose their jobs – from drivers to administration.
Among those included in the cut are 76 fixed route operators, 23 MATAPlus drivers, 51 call center employees, and 85 administration and staff support.
“It became very apparent during the course of this last year that MATA could not continue to sustain itself at the level that it was operating without any increase in funding,” said Hamish Davidson, MATA’s Chief External Financial Officer.
Alongside Memphians being without work, seven bus routes will also be cut.
According to the budget, the number of fixed routes will go from 23 to 17 with services being eliminated after 7 p.m. on weekdays and Saturdays.
MATA officials say the new budget is balanced.
According to officials, 95% of MATA’s funding comes from federal, state, city and county sources. The other 5% comes out of farebox and ad revenues.
The resolution says that if MATA continued operating at its current level, it would need an operating budget of $84 million – money officials say they don’t have.
“The last two budgets were deficit budgets, and you can’t continue to operate to a deficit with no cash behind it,” said Davidson.
“They messed with the money and now they want money and they need money. They need to straighten it up. It’s sad because it’s affecting the people who don’t have cars,” said a bus rider.
One Memphis resident who attended the meeting says if his route is canceled, he would be losing a part of what he considers his “lifeline.”
“It would be such a disaster for many people, not just me but many people. The people who need that bus route need that bus route,” he said.
MATA will decide which routes will be canceled by next month and put the new service schedule online in November. They also announced that all trolly services will be canceled.