FAO Select Committee Meeting on JTA Financial Crisis - November 2, 2026

The FAO Select Committee, chaired by Council Member Chris Miller, met on November 2, 2026 at 3:00 PM in City Hall Council Chamber to continue its investigation into the Jacksonville Transportation Authority's (JTA) financial crisis. The primary agenda item was testimony from former JTA Chief Financial Officers regarding the agency's financial condition and practices from 2017 to 2026. Former CFO Greg Hayes and former CFO Heather Abora testified. Former CFO Raj Srinath did not appear despite earlier agreement.

Discussion Items

• Follow-up on Outstanding Questions: Council Member Ron Salem requested cost-saving figures from furloughs and paratransit elimination. JTA staff provided furlough savings of approximately $758,000 from 88 employees through end of FY 2026. Paratransit savings were estimated at $5 million annually if council had adopted JTA's recommendation to end the program.
• Fiduciary Documents Request: Council Member Chris Miller reiterated his request for written documents outlining fiduciary responsibilities for JTA board members and executives. JTA's Senior Vice President Jessica Shepler stated no such separate documents exist beyond governor-appointee applications.
• Testimony of Greg Hayes (CFO March 2017 – September 2023): Hayes described JTA's financial condition as strong during his tenure: seven consecutive years of surpluses totaling over $135 million, with $187 million in cash when he left. He stated he provided quarterly cash and reserve reports to the board, and projections were done regularly. He noted the board had a written policy of maintaining reserves at 25% of the transit operations budget (approx. $25-35 million). Hayes confirmed that during his tenure, the CEO never directed him to alter projections. He attributed the post-2023 deterioration to expenses outpacing revenues.
• Testimony of Heather Abora (Interim CFO for two weeks in 2023; CFO July 1, 2025 – May 31, 2026): Abora described inheriting a "disaster" in July 2025: reserves depleted by over $20 million, grants accounting not billing timely, accounts payable running $12-18 million monthly deficit. She stated the O&M for the Navi (U2C) project was not budgeted for FY2025, adding $3.982 million per month in costs. She identified a projected $45 million shortfall in January 2026, leading to a $14.2 million budget amendment approved in February 2026. She stated she provided monthly cash flow projections to the executive leadership team showing 18-month deficits, but those projections were not presented to the board as prior practice under Mr. Srinath had stopped such reporting. She noted capital projects fund dropped from $76 million under Hayes to $11,000 when she started.
• Absence of Raj Srinath: Chair Miller reported that despite a prior agreement, Mr. Srinath's lawyer informed him over the weekend that he would not appear. Council members expressed strong desire to obtain his testimony, with several suggesting a subpoena if necessary.
• Deliberation on Subpoena: Council members discussed options. Council President Joe Carlucci initially suggested waiting until January to combine with former CEO Nat Ford's testimony, but after hearing testimony, agreed a sooner date was needed. The committee decided to attempt voluntary appearance on November 10, 2026. If unsuccessful, the finance committee would consider issuing a subpoena at its November 17, 2026 meeting for testimony before the finance committee.

Key Outcomes

• Subpoena Plan: Chair Miller will continue efforts to secure Mr. Srinath's voluntary testimony for the November 10 FAO Select Committee meeting. If he does not agree by then, the matter will be referred to the Finance Committee on November 17 to consider issuing a subpoena for testimony before that committee.
• No Consent Calendar or Public Comments: No routine approvals or public testimony occurred.
• Next Steps: The committee will continue investigating the causes of the $40 million deficit, focusing on the period from late 2024 through 2026. Council members noted that the budget and forecasting practices that existed under Hayes (including regular cash flow and balance sheet reporting to the board) were abandoned under subsequent leadership, contributing to the crisis.