The Memphis Area Transit Authority said the city’s current funding of $30 million dollars will not allow the agency to provide reliable and sustainable service for its customers.
Today, MATA Board Chair Emily Greer and Interim CEO and TransPro consultant Jon Lewis presented their FY26 operating budget to the Memphis City Council’s Transportation Committee. Officials asked that the city’s funding be increased to $45 million.
Greer said the current funding allotment would hinder the agency from offering baseline services, additional frequency on main fixed routes, extra MATAplus services, and more. Increased funding would allow the agency to have more buses and operators.
The agency said this would also allow them to return to steel-wheeled trolleys.
“We believe at $30 million, one year from now the transit system will not be better off than it is today,” Greer said. “It will require even more dollars to turn it into the transit system that our citizens need and deserve. Thirty million is at best a band-aid on a system that needs emergency surgery.”
Greer said since taking their oath in October the board has spent 71 hours in board and committee meetings while also speaking with city officials on a bi-weekly basis. Greer said they also met with local and non-local transit advocacy groups in hopes of improving transportation in Memphis.
She said improvements have been made in terms of transparency — resulting in “timely and accurate financial statements for the first time in years.” They’ve also met with employees to hear their input on agency operations.
The chair said their primary goal is to advocate for the agency, and part of that is making the authority’s needs known. She said their presentation is not about how money is “doled” out to them, but about procuring positive change.
Officials emphasized how current funding would not only put them at a disadvantage for the service they provide, but would plummet them further in debt. She said this could also deter candidates from applying for the permanent CEO position.
Lewis said the current budget was made on a number of assumptions, such as minimal increases to the maintenance team, the same service hours and main route schedules, and more. MATA expects to have a total revenue of $56,186, 644 with the city being the agency’s primary funding source.
MATA’s largest expenses are for services such as management, legal, and security.
Councilman Jeff Warren said this was the most thorough presentation from the agency that the council has had. He said it’s important for both parties to see the data.
Warren went on to say that getting travel back up in the Downtown area will increase convention traffic, which the restoration of trolley services would do.
“I heard your plea and I agree with what you’re saying,” Warren said. “Right now we’re looking at a budget where we don’t have the additional $15 million we would want you to have.”
Warren said the city’s budget is “based on the actual money that is coming in” and that they’ll revisit MATA’s budget in September.
Councilwoman Janika White requested “clear deliverables” from TransPro regarding transformation at the agency. She said this would give the opportunity for the council to see how they can fund intended changes from a set plan.
The agency and council agreed to schedule a meeting where TransPro will present a change-fueled plan for MATA for the city to consider funding.