During the second meeting of the Jacksonville City Council’s Financial Audit and Oversight Select Committee, city auditors unveiled a multi‑year review of the Jacksonville Transportation Authority’s (JTA) finances. The review shows a pattern of operating expenses that consistently ran over budget, optimistic financial projections, and reporting practices that obscured the agency’s true fiscal health.
Repeated overspending and optimistic forecasts
Auditors traced JTA’s financial records back several years. In 2022, the agency reported no significant budgetary stress even though spending was roughly $4.8 million above budget. The following year, JTA again claimed no major concerns while its bus and ferry operations exceeded their budgets. Similar overruns appeared in 2024 for services such as Connexion, Connexion Plus, and the ferry.
Despite these overruns, JTA’s quarterly projections painted a rosier picture. In 2024, projections showed a modest $36,000 surplus that later grew to an estimated $2.3 million and then $3.9 million. By contrast, the authority finished fiscal year 2025 with a deficit of about $18.9 million, and the projected shortfall for fiscal year 2026 rose to roughly $39 million.
Key cost drivers identified
The audit highlighted several program areas contributing to the financial strain. Bus operations, the Connexion and Connexion Plus services for riders with disabilities, and the NAVI autonomous‑vehicle program all saw expenses rise faster than anticipated. NAVI, which began carrying passengers in 2025, added a notable cost burden.
Auditors also noted budgeting errors, such as a contract recorded as a half‑year expense instead of a full‑year obligation, and instances where fringe benefits were budgeted above actual needs. These inaccuracies further complicated accurate financial planning.
Revenue reliance and reporting limits
Sales‑tax revenue, which makes up at least 40 % of JTA’s budget depending on the year, leaves the agency vulnerable when tax collections fall short. Council members questioned whether JTA’s financial planning relied too heavily on optimistic revenue estimates.
Because JTA is an independent authority created under state law, the City Council’s ability to demand detailed, ongoing financial reporting is limited. Auditors explained that while the Council Auditor’s Office can request certain information, it cannot compel unrestricted access to the agency’s full budget and operations.
Council response and next steps
Councilman Ron Salem urged the board chair to appear before the committee to explain what the board knew about the projections. “Something went astray here,” Salem said, emphasizing the need for board oversight.
Other council members called for former JTA CEO Nat Ford to testify, regardless of his current position in Dallas. Councilman Rory Diamond expressed a desire to hear directly from Ford about decisions made during his tenure.
The committee is also considering whether state legislation should be amended to require more frequent and detailed financial reporting from JTA. Any changes would need approval from the Florida Legislature in Tallahassee, not just a local charter amendment.
Impact on riders and employees
The financial crisis has already taken a human toll. Nearly 200 JTA workers have been laid off, and service cuts have led to reduced bus routes, longer wait times, and fewer transportation options for thousands of riders.
Jacksonville City Council has allocated up to $30 million from local‑option gas‑tax funds to help stabilize JTA, but council members stressed that financial assistance alone will not resolve the underlying governance issues.
Looking ahead
The committee will continue its investigation, focusing on whether budgeting, reporting, and oversight failures allowed warning signs to go unaddressed for years. While the audit has not found evidence of intentional falsification, it underscores the need for stronger financial controls and greater transparency to protect taxpayer dollars and ensure reliable public transportation for Jacksonville residents.
Original reporting: Jacksonville Today — read the source article.
