WREG.com

MATA tries to sort out finances after $60M shortfall

MEMPHIS, Tenn. — The Memphis Area Transit Authority held a budget meeting Wednesday night, just one day after the City of Memphis finalized its budget.

The meeting comes after Memphis City Council allotted $30 million to MATA just yesterday — a price tag MATA’s Interim CEO Bacarra Mauldin says is crucial.


In the more than two-hour meeting, the MATA Board of Commissioners went month by month with a financial consulting firm to get a better understanding of their finances.

“This is a period of business unusual here at MATA, but you know what we always prioritize that customer that’s at that trolly stop, that’s at that bus stop,” said Mauldin.

Even after being allotted $30 million, MATA is still in the red. There has been no word on how MATA plans to tackle its $60 million deficit headed into the new fiscal year.

“Those funds are our lifeline, and they help us operate,” she said.

MATA has been working with J.S. Held, a global consulting firm, since February, about the same time Mauldin took office.

“Wages and Salaries were over by half a million dollars primarily due to excessive overtime,” said Mauldin.

The firm has now started taking a closer look at MATA’s financial statements month by month. This is all in attempt to make sure MATA spends smarter and knows exactly where every cent is being spent.

Riders are not happy with what they heard in today’s meeting.

One change voted on was adding an additional 10-minutes to route 36, which goes from downtown to Hacks Cross in southeast Memphis.

“Any kind of time you take away from a bus, you’re hurting the person that’s trying to get around in the city,” said Sammie Hunter, Co-Chair of the Memphis Bus Riders Union.

Hunter says it’s hard to believe the consulting firm where they said the ongoing deficit matter is new.

“People are supposed to see red flags and I can’t understand why got people in place to do these things and they didn’t catch this red flag,” said Hunter. “The bottom line is MATA must have the type of leadership where they can balance their budget without balancing it on the backs of bus riders of the city.”

Other rider organizations we spoke to say their members are nervous about the future of MATA, saying they do not understand how the transit authority quoted a 59% consistent on-time performance.

Some are asking now for the city to step in.

“I believe that the Mayor should get involved, I believe the people in the city, particularly bus riders, they need to know they are going to have a great public transportation system,” said an attendee.

MATA says they hear the people, but asks that the people stay patient.

“Please be patient with us as we work to get through this time, but we will get to the other side and have a transformative and efficient and safe transit system,” said Mauldin.

One more thing of note from the meeting is that there is a hiring freeze within MATA, and no word on when it will be lifted.

We will continue to follow how MATA plans on tackling their deficit.