The Memphis City Council voted Tuesday to hold half of the Memphis Area Transit Authority’s $30 million funding for the upcoming fiscal year in a special fund that is restricted for public transportation.
That money is to be released to MATA “upon presentation of (a) full financial audit alongside budget and operational plans for remaining funds.”
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Council members have already received copies of the transit agency’s budget. Memphis Mayor Paul Young said the audit, which PricewaterhouseCoopers is conducting, should be complete within two months. MATA’s interim CEO, John Lewis, has said he doesn’t know how “operational plans” would differ from the budget already provided.
$30 million is just enough for the agency to “float,” MATA officials have said. It’s not enough to build back routes that were secretly cut by the prior MATA administration, expand service or significantly pay down debt.
The first $15 million should carry MATA through the first six months of the fiscal year, according to MATA’s budget. If MATA eventually receives the full $30 million, it will:
- Maintain current route frequency for fixed route buses at the levels of the secret route cuts made by prior MATA leadership
- Maintain the existing MATAplus service for people with disabilities who are unable to use the fixed-route bus
- End Groove On-Demand, which serves Downtown, the medical district, South City and New Chicago
- Bring back rubber-tired trolleys instead of the historic steel-wheeled trolley cars, offering service only on the Main Street Line.
- Offer a lower frequency of trolley service than before the shutdown
MATA leaders have said that if they received $38 million from the city, they could either increase service for fixed routes, MATAplus and the trolleys or make a dent in the agency’s outstanding debt. If they received $45 million from the city, they could “do all of those things.”
MATA advocates and riders have said the transit agency needs $50 million.
“We’re at the bare minimum of service levels now. Anytime we’ve got routes that are at two-hour headways, you can’t get much worse than that.”
John Lewis, MATA interim CEO
“The current reduced schedule only provides 70% of the COVID service schedule,” advocates from the Better Transit for a Better Memphis coalition said in a news release. “Without an investment above the proposed $30 million, there is no path back to the level of service riders need today. A strong investment of $50 million for (fiscal year) ‘26 will be attractive to qualified CEO candidates, and more importantly, will demonstrate a commitment to bus riders, operators, and mechanics.”
Council members say splitting the $30 million allocated for the upcoming fiscal year, which starts July 1, is an accountability measure.
Councilwoman Jerri Green, who proposed the measure and is vice-chair of the council’s transit committee, said council members will evaluate the budget, audit and operational plan to determine whether to give the remaining $15 million to MATA.
“We need some insight into what has happened and what is going to happen for the next $15 million,” Green said.
Green confirmed that council members received copies of MATA’s budget, but said she also wants to see them present in person.
Councilman Edmund Ford Sr., who chairs the council’s transit committee, said he is working to have that presentation at the council’s next meeting on June 24.
While Young and Lewis originally blasted the move to split the transit agency’s funding in half, Young eventually said he could support it.
Young said he was not concerned that council members would decide to withhold the final $15 million after their demands are met.
“I think they understand the importance of transit and that any issues that are identified, we’re going to work with our council and MATA to identify the path forward to address those,” Young said.
If, for some reason, the second block of $15 million were not disbursed before the first half of the fiscal year ends, “it would be drastic cuts to our service,” Lewis said.
“We’re at the bare minimum of service levels now,” Lewis said. “Anytime we’ve got routes that are at two-hour headways, you can’t get much worse than that.”
MATA Chairperson Emily Greer also said she isn’t concerned about receiving the second allocation of money from the council.
“I am confident that we will provide them with what they need to provide us with what we need to run the agency,” Greer said.
Katherine Burgess is the government accountability reporter for MLK50: Justice Through Journalism. Contact her at katherine.burgess@mlk50.com
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