Jacksonville Transportation Authority (JTA) board member Daniel Vallencourt called on the agency’s top three leaders to resign on Monday, warning that the authority cannot steer its $39 million deficit without a change in leadership.
Financial gaps and concealed reserves
Vallencourt, who joined the board in February, said the agency’s interim CEO Cleveland Ferguson, chief operations officer and senior vice president of public affairs have been misleading the public about JTA’s finances. He noted that an emergency budget cut reduced the operating budget from $162.4 million to $148.2 million, yet the board was not told that JTA had already been drawing from its reserve funds for a full year.
According to Vallencourt, $34.2 million had been withdrawn from reserves before the board learned of the withdrawals at an August retreat—18 months after the pulls began. By August, the agency’s deficit had swelled to $39 million, and monthly reports continued to list a “Pending” column that made the financial picture appear healthier than it was.
Overspending and credit downgrade
The board‑approved budget for the current fiscal year was $148.2 million, but JTA spent $181.1 million, exceeding the budget by $32.9 million. Vallencourt questioned the authority’s spending authority, noting that in May 2026 former CEO Nat Ford praised the agency’s “strong financial stewardship” despite the mounting shortfall.
In July, management sought a $40 million line of credit to address “typical mismatches” in cash flow, even as the agency owed vendors $24.9 million, with $5.5 million past due over 120 days. Fitch Ratings responded on Oct. 21 by downgrading JTA’s issuer default rating from AA+ to AA‑ and assigning a negative outlook, a move that could raise future borrowing costs.
Audit findings and legal actions
JTA’s fiscal‑year‑2025 audit required a restatement of the prior year’s financial statements by $18.3 million. City auditors told a council oversight committee that the agency had reported no significant budget stress in 2022, despite overspending of roughly $4.8 million. The agency finished fiscal year 2025 with a deficit of about $18.9 million, which ballooned to roughly $39 million in fiscal 2026.
The Florida Attorney General’s Office has subpoenaed JTA records related to contracts, travel, sponsorships and communications involving former CEO Ford and other leaders. JTA said it is prepared to cooperate fully. Clay County has also voted to end its funding agreement with the authority.
Leadership accountability and next steps
Vallencourt acknowledged his own role, stating he had been one of Ford’s biggest supporters and should have demanded raw financial documents, including balance sheets and cash‑flow statements. “I didn’t, and I own that,” he wrote. He added that Governor Ron DeSantis, who appointed him to the board, would be justified in asking for his resignation, and he would comply if asked.
JTA has laid off nearly 200 workers and the Jacksonville City Council approved an emergency plan in October to allow the authority to tap up to $30 million in unspent local gas‑tax funds, with repayment required by Sept. 30, 2037. The measure passed unanimously, 15‑0.
Former CEO Nat Ford resigned in July and has taken the helm of Dallas Area Rapid Transit. The Jacksonville City Council’s Finance Committee voted to subpoena Ford to testify about JTA’s finances, with testimony expected before year‑end.
Vallencourt’s demand for resignations places pressure on the interim leadership to address the agency’s fiscal crisis transparently and restore confidence among riders, vendors and elected officials.
Original reporting: Jacksonville Today — read the source article.
