The financial problems that led to nearly 200 layoffs and sweeping service cuts at the Jacksonville Transportation Authority may have been building for years, even as the agency continued reporting a relatively stable financial picture to city leaders.
That was one of the key revelations Thursday during the second meeting of the Jacksonville City Council’s Financial Audit and Oversight Select Committee, where city auditors presented a history of JTA’s finances and raised questions about spending, budget projections and warning signs.
The findings suggest JTA’s financial troubles did not happen overnight.
Instead, auditors identified years of spending that exceeded budgets in certain departments, financial projections that appeared overly optimistic and reporting practices that made it difficult for city leaders to understand the agency’s true financial condition.
The questions now are how much JTA leadership knew, when officials knew it and whether the agency’s board of directors did enough to prevent the financial crisis.
During Thursday’s meeting, city auditors reviewed financial records dating back several years, identifying a pattern of operating expenses exceeding budgeted amounts despite reports suggesting little or no financial stress.
In 2022, for example, JTA reported no significant budgetary stress, even though spending was approximately $4.8 million over budget.
The following year, the agency again reported no major financial concerns, despite its bus and ferry operations exceeding their budgets.
Similar issues continued in 2024, when expenses associated with services including Connexion, the ferry and other operations exceeded budgeted amounts.
Meanwhile, JTA’s quarterly financial projections continued to suggest the agency was on solid financial ground.
In 2024, those projections included a modest $36,000 surplus that later increased to approximately $2.3 million and then $3.9 million.
But the picture changed dramatically.
JTA finished fiscal year 2025 with a deficit of approximately $18.9 million. The agency’s financial problems worsened in fiscal year 2026, when officials projected a shortfall of roughly $39 million.
Council members questioned how an agency that repeatedly exceeded spending targets could continue projecting positive financial results without triggering greater scrutiny.
Auditors characterized some of JTA’s budget projections as inappropriate, raising questions about whether the numbers accurately reflected the agency’s mounting expenses.
Thursday’s discussion also focused on the programs and expenses that contributed to JTA’s financial problems.
Among the areas drawing attention were the agency’s bus operations, its Connexion and Connexion Plus transportation services for people with disabilities and other eligible riders, and NAVI, JTA’s autonomous vehicle system.
Auditors pointed to substantial increases in the cost of Connexion Plus, with expenses rising faster than JTA had anticipated.
NAVI, which began carrying passengers in 2025, also contributed to the agency’s financial pressures.
The committee examined budgeting associated with the autonomous vehicle program, including approximately $10 million identified in the agency’s 2023 budget.
Additional questions involved JTA’s handling of employee benefits, including instances in which fringe benefits were budgeted above actual needs, and whether financial planning accurately accounted for the full cost of operating services.
Sales tax revenue was another major concern.
Depending on the year, sales taxes accounted for at least 40% of JTA’s budget, making the agency especially vulnerable when revenue failed to meet expectations.
Council members questioned whether JTA was spending money based on overly optimistic revenue estimates and whether its financial planning kept pace with changing economic conditions.
The committee also raised questions about frequent turnover in JTA’s chief financial officer position and how the agency managed federal COVID-19 relief funding.
Another significant issue uncovered Thursday involves how much financial information JTA is required to provide to the city.
Although JTA receives substantial public funding and must bring certain budget matters before City Council, it is an independent authority created under state law.
That distinction limits the city’s ability to demand detailed financial reporting throughout the year.
City auditors explained that they do not have unrestricted access to JTA’s entire budget and financial operations.
Under the current legal framework, the Council Auditor’s Office can request certain financial information, but its authority to compel ongoing reporting is limited.
The committee also discussed concerns about delays in receiving information from JTA, errors in financial reports and budget adjustments that were not always clearly explained.
In one instance, auditors identified a budgeting error involving a contract that had been accounted for as a half-year expense rather than a full-year obligation.
Questions were raised about financial concerns communicated to JTA as early as January and whether those concerns were adequately shared with the agency’s board.
Council members discussed whether state lawmakers should change the law governing JTA to require more frequent and detailed financial reporting.
Because JTA was created by state statute, such changes would likely require legislative action in Tallahassee rather than a simple amendment to Jacksonville’s charter.
The findings prompted pointed questions about accountability and whether JTA’s board of directors had enough information to recognize the agency’s worsening financial situation.
Councilman Ron Salem called for members of the board, preferably its chair, to appear before the committee and explain what they knew about JTA’s financial projections.
Salem questioned whether board members challenged the numbers they were receiving and whether they understood the agency’s true financial condition.
“Something went astray here,” Salem said.
Council members also discussed bringing former JTA CEO Nat Ford back to answer questions about financial decisions made during his leadership. Ford left JTA recently to lead the rapid transit system in Dallas.
Councilman Rory Diamond said he wants Ford to testify before the committee, regardless of where the former CEO now lives.
The committee’s concerns extend beyond individual budget errors to broader questions about whether JTA had adequate financial controls and whether its leadership and governing board were properly monitoring public spending.
The investigation comes as the consequences of JTA’s financial crisis continue to affect employees and the people who depend on public transportation.
Nearly 200 workers have been laid off as the authority attempts to stabilize its finances.
Bus routes have been changed, services have been reduced, and some riders have faced longer waits and fewer transportation options.
Jacksonville City Council has also taken steps to provide financial relief to the troubled agency, including a plan involving up to $30 million in local option gas tax funds.
But council members made clear Thursday that financial assistance alone will not answer the larger questions about what went wrong.
The committee is now examining whether problems in budgeting, financial reporting and oversight allowed years of warning signs to go unaddressed.
Members also discussed establishing stronger financial controls so JTA’s board, City Council and the public receive more accurate and timely information about how taxpayer dollars are being spent.
The committee’s work is ongoing, and its findings have not established that financial statements were intentionally falsified.
For now, the central question remains whether the financial crisis that cost nearly 200 people their jobs and disrupted transportation for thousands of riders could have been identified and possibly prevented years earlier.
This story was produced by News4Jax, a Jacksonville Today news partner.
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