FAO Committee JTA Oversight Meeting - October 23, 2026

The Financial Audit and Oversight (FAO) Select Committee of the Jacksonville City Council convened on October 23, 2026, to continue its in-depth review of the Jacksonville Transportation Authority's (JTA) financial management. The meeting covered follow-up items from previous sessions, a presentation from JTA CFO Randall Barnes on the FY27 budget, the Local Option Gas Tax (LOGT) loan, JTA's current financial condition, and the causes of its fiscal distress. The committee also discussed the recent Fitch Ratings downgrade of JTA's issuer default rating.

Consent Calendar

• None.

Public Comments & Testimony

• No public comments were heard; due to time constraints, the Chair deferred all public comment to the next meeting scheduled for November 2, 2026, where no time limit will be imposed.

Follow-Up Items from Prior Meetings

• Council Auditor Philip Peterson reported that JTA received approximately $135 million in COVID-19 relief funds over five years, used for operations and capital projects. He noted no audit findings of misuse, but could not confirm whether the funds masked underlying operational shortfalls without deeper transaction-level review. Council Member Ron Salem expressed concern that the end of COVID dollars may have coincided with the emergence of JTA's deficits.
• Chair Chris Miller requested documentation on fiduciary responsibilities for JTA executives and board members, including oaths, board policy manuals, and ethics training records. He asked JTA to provide current versions without specific names.
• Council Member Salem requested analysis of cost savings from proposed paratransit cuts and furloughs that JTA had considered earlier in the year, as well as a timeline of CFOs over the past two years.
• Chair Miller announced he is reaching out to former CFOs (Greg Hayes, Raj Surinath, Heather Abora) and former board chairs (Debbie Buckland, Andre Wallace) to appear before the committee. Former CEO Nat Ford was served a subpoena on October 22 and has agreed to testify; a date is being coordinated.

Discussion Items

• JTA FY27 Budget and Actions: CFO Randall Barnes outlined the approved $139.2 million operating budget for FY27, which had been passed by the JTA board and city council. He contrasted it with FY26 unaudited actuals, revealing a $42 million shortfall. JTA responded by reducing its workforce by approximately 200 employees, suspending Skyway and Navi services, and moving to a modified Saturday bus schedule. A new “working budget” is being implemented to replace what Barnes characterized as a “fictional” approved budget that had been constructed by making indiscriminate, across-the-board cuts without proper cost analysis. The working budget includes tighter controls and will be used for accurate variance reporting starting in November.
• LOGT Loan: JTA was authorized to borrow $30 million from its Local Option Gas Tax (LOGT2) funds. The primary use will be to pay down a $25 million line of credit, saving an estimated $1.5 million per year in interest. Barnes confirmed that the loan will comply with all reporting requirements.
• Financial Condition and Fitch Downgrade: Barnes presented FY26 results showing a $40 million deficit, with expenses $32.9 million over budget due largely to labor and services (especially paratransit and NABI). Cash reserves had fallen to about $8 million, well below the board’s target of $41.6 million. Fitch Ratings downgraded JTA’s issuer default rating from AA+ to AA- with a negative outlook, citing diminished financial resilience and weak budgeting controls. Barnes noted that the downgrade affects overall reputation but not existing debt ratings, which are tied to specific revenue streams. He outlined credit-positive steps: the LOGT loan, the FAO committee’s oversight, a planned external audit, and stricter governance.
• Budget Process Failures: In response to questions from Council President Nick Howland and Council Member Roy Diamond, Barnes confirmed that the budget team (reporting to the CFO) had unilaterally cut line items to match revenue constraints without collaboration with operating departments. This practice, he stated, is not standard and left the budget unrealistic. Council Member Diamond stressed the need for accurate financial reporting to provide early warning of problems.
• Paratransit and NABI Costs: The committee agreed to schedule future deep dives into paratransit cost drivers and the NABI (autonomous vehicle) project, including the associated maintenance facility cost overruns that consumed significant cash reserves. JTA’s General Counsel Cleveland Ferguson indicated that paratransit costs are rising and that the broader policy question of how to fund such services requires council input.

Key Outcomes

• Subpoena for former CEO Nat Ford was served; he has agreed to testify. The committee will coordinate a date for in-person or virtual testimony.
• Former CFOs and board chairs will be invited to future meetings to provide perspective on JTA’s financial decline.
• No formal votes were taken by the committee, but consensus was reached to hold longer sessions (no time limit) starting November 2 to allow for public comment and extended discussion.
• JTA committed to present detailed reports on paratransit operations and NABI project finances at upcoming meetings.