A few weeks have passed since it was made public that MATA was in the black by $60 million.
The Memphis Area Transit Authority (MATA) has requested $30,670,000 from the Memphis City Council for Fiscal Year 2025 (FY25), following revelations of a $60 million deficit. MATA projects $65,219,738 in revenue for FY25, largely from federal grants and local government contributions, with the city being the primary operating fund provider.
Despite the budget shortfall, MATA is focused on increasing revenue and improving spending processes. Interim CEO Baccara Mauldin, addressing the council, acknowledged the gap and emphasized her commitment to steering MATA toward better mobility for Memphis. Highlighting her values of transparency and fiscal responsibility, Mauldin hired an external CFO, Hamish Davidson of J.S. Held LLC, shortly after assuming her role.
Mauldin outlined a proposed FY25 budget of $84,211,321, with wages and fringe benefits as the largest expenses. She stressed the need for competitive compensation to attract mechanics and operators and highlighted the need for more buses for fixed routes and MATAPlus services for citizens with disabilities. Additionally, significant funds are earmarked for the Memphis Innovation Corridor, the city’s first bus rapid transit service.
She emphasized the importance of these adjustments for creating a “complete mobility system” and pledged to engage with council members and the public through meetings and town halls. Mauldin stressed the collaborative nature of reimagining transit in Memphis.
Council members questioned MATA’s plans for expanding services to other communities, accountability measures, and increasing the electric vehicle fleet. Councilman Chase Carlisle reaffirmed the city’s commitment to funding MATA at traditional levels, emphasizing the critical role of MATA in core services and workforce development. He highlighted the opportunity to reimagine on-demand services in the post-COVID era.
However, the council did not address the deficit, which left some citizens dissatisfied. Cynthia Bailey and Sammie Hunter of the Memphis Bus Riders Union called for the council to hold MATA accountable for both past and future funding, emphasizing the need for strong oversight.