JACKSONVILLE, Fla. – A Jacksonville city council committee has officially approved a $30 million emergency bailout for the Jacksonville Transportation Authority (JTA), marking a critical step in addressing a staggering $39 million budget shortfall that has pushed the agency to the brink of collapse.
The funding, pulled from the city’s local gas tax reserves, is intended to stabilize JTA’s operations. The full city council is scheduled to vote on the emergency relief measure next Tuesday, Oct. 13. If passed, the agency will be required to repay the funds over the next decade, with a final deadline set for September 30, 2037.
The scope of the financial mismanagement came into focus during a tense hearing before the city council’s Transportation, Energy and Utilities Committee. Newly installed Chief Financial Officer Randall Bernard Barnes and interim CEO Cleveland Ferguson testified that the crisis was the result of a “perfect storm” of budgetary errors. Barnes admitted the agency had underestimated sales tax revenue for two consecutive years, leading to a $19 million gap, while simultaneously failing to properly account for rising operating costs for the NAVI autonomous shuttle, the Skyway, and the Connexion service for passengers with disabilities.
These failures have come at a heavy human cost. To mitigate the bleeding, JTA previously slashed its workforce, resulting in nearly 200 layoffs. While management claims these cuts will save $21.9 million, Councilman Raul Arias sharply criticized the decision, lamenting that essential staff were sacrificed to cover for high-cost experimental projects. “I hate that we’re saving money at the expense of people when we could’ve saved money by not investing in things that we didn’t really need at the time,” Arias stated.
The controversy surrounding JTA has reached the highest levels of Florida government. Former JTA board member Megan Hayward, who was removed from her position, alleges she repeatedly warned leadership and Mayor Donna Deegan about the runaway costs of the NAVI program—which reportedly exceeded original projections by over $20 million. Those warnings have culminated in a subpoena from the Florida Attorney General’s office, which is demanding all records related to an March 2025 meeting between Hayward and Mayor Deegan.
State prosecutors are currently conducting a broad investigation into the agency, digging into federal grant usage, tuition reimbursements, and the tenure of former CEO Nat Ford. As the crisis deepens, neighboring municipalities are pulling back; Clay County has officially terminated its funding agreement with JTA.
In response, Mayor Deegan signed an executive order requiring members of city boards to undergo mandatory training on ethics, finances, and public records laws. Meanwhile, Councilman Ron Salem is pushing for an independent, third-party audit to restore taxpayer trust. For now, JTA’s survival rests on the outcome of next week’s council vote, as the city attempts to salvage its public transit system from the fallout of systemic fiscal mismanagement.
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