Let’s Get Back to the Basics at JTA

[fsu813]

Times-Union today discussing how JTA's finances deteriorated over the last two years.

https://www.jacksonville.com/story/news/local/2026/10/12/how-jta-racked-up-deficits-that-force-layoffs-and-transit-cuts/92157322007/

I'm a little curious by the lack of certain names being mentioned lately: Raj Srinath and Heather Obora. Srinath was CFO at JTA from October 2023 to June 2025, with Obora serving as interim seemingly until Randall Barnes took over in August this year. The extent of these budgeting mishaps really begs some questions about their leadership.

For anyone interested, it would be worth talking to Greg Hayes, the competent/principled CFO at JEA who was let go after 7 years in 2023, as well. He has a point of view.

[Charles Hunter]

Times-Union today discussing how JTA's finances deteriorated over the last two years.

https://www.jacksonville.com/story/news/local/2026/10/12/how-jta-racked-up-deficits-that-force-layoffs-and-transit-cuts/92157322007/

I'm a little curious by the lack of certain names being mentioned lately: Raj Srinath and Heather Obora. Srinath was CFO at JTA from October 2023 to June 2025, with Obora serving as interim seemingly until Randall Barnes took over in August this year. The extent of these budgeting mishaps really begs some questions about their leadership.

I agree. It is apparent the lousy projections and shifting numbers began long before the current CFO came aboard. I hope both of the people marcusnelson mentioned will be questioned by the State Attorney and the Council Committee.

[Joey Mackey]

I just don't understand why there isn't more anger at Nate Ford, particularly on this forum. Like it seems the blame is being cast against Deegan or state officials. Why not the actual CEO?

I get he left town, but if he did anything to personally enrich himself or his friends he should be prosecuted. I just feel like all of our anger is pointed at the wrong people.

[jaxlongtimer]

Joey, if you read back the posts deeper in this thread you will find plenty hanging this both on Nat Ford and his rubber stamp JTA Board.  You are correct, this is really where the buck stops first and foremost.

I might add that JTA gets an outside audit.  Not sure when their fiscal year ends but I would think an audit report would have highlighted a downward trend that would have been made apparent to management and the Board.

I am guessing Nat Ford had many either seduced or living in fear that no one dared or bothered to speak up.  Hiding these losses is akin to trying to hide an aircraft carrier.  Some people had to see this coming but said nothing.  It's why an investigation is fair game.

[jaxlongtimer]

Reading the below quotes, JTA looks to be guilty of GROSS NEGLIGENCE or a near-CRIMINAL cover up, manipulation or both.  Absolutely NO WAY numbers in an organization the size of JTA swung this much in one or two quarters and management didn't come clean.  Looks, too, like an effort to get City Council to approve a budget built on a deck of cards by management.  I am guessing senior executives didn't want to have a budget cut that would require their salaries to be reduced, jobs cut, and/or their sacred cows (NAVI and the Skyway) closed down. 

If Ford didn't resign, I would guess he would have been fired.  Others around him still there may also need to yet go.  Lot's of people inside JTA had to know this charade was underway.

If this was a public company, CEO would be fired faster than after being caught on a kiss-cam, the SEC would be criminally investigating and lawsuits would be all over the place for misleading and/or fraudulent presentations to shareholders/investors.

Bad financial projections and overspending doomed JTA budget from start

A July 30, 2025, report submitted by JTA for nine months of the 2024-25 fiscal year showed the agency expected to finish the year on Sept. 30, 2025 with a $3.9 million surplus.

The next quarterly report by JTA on Nov. 30, 2025 showed it actually ended the 12-month fiscal year at the end of September 2025 with a deficit of almost $19 million.

Peterson said it's unusual for quarterly reports to have such a big swing. He said if the information about the deficit spending during the 2024-25 fiscal year had come earlier, his office and City Council could have given more scrutiny to the assumptions JTA used in crafting the 2025-26 budget...

...Barnes said he started work at JTA on July 20 knowing the agency faced financial challenges. He said he quickly discovered they ran deeper than he anticipated.

"Cash on hand was extremely low," he told City Council. "Reserves had been depleted."

The agency owed more than $20 million for unpaid invoices.

"Suppliers weren't being paid on time," Barnes said. "Understandably, many threatened to stop delivery or discontinue service."...

...JTA's next report to the City Council Auditor's Office in May for the six-month point of the fiscal year showed JTA was projecting $2.3 million in deficits at the end of the year despite the cuts it had made.

But like the report given to the City Council Auditor's Office in summer 2025, that report vastly understated the scope of the deficit....

...JTA board member Daniel Vallencourt said at the Sept. 23 board meeting the agency still must get a full accounting of what went wrong and ensure board members get better data for informed decision-making.

"I need real-time numbers," Vallencout said. "I can't have March is one thing and April is another and all of a sudden in August it's completely different."...

https://www.jacksonville.com/story/news/local/2026/10/12/how-jta-racked-up-deficits-that-force-layoffs-and-transit-cuts/92157322007/

[Charles Hunter]

The next quarterly report by JTA on Nov. 30, 2025 showed it actually ended the 12-month fiscal year at the end of September 2025

There's the answer to the earlier question of JTA's fiscal year. They follow the federal and COJ fiscal year of October 1 to September 30 (and not the state's July 1 - June 30).

[jaxlongtimer]

JTA looking more and more like a deck of cards for years, maybe approaching fraud.  Can indictments be far behind? 

As I have been saying, the current problems are too big to have happened overnight.  People at JTA knew they were there all along.  Not saying something, hiding it, or worse... heads need to roll and board needs to be replaced, at a minimum.

Warning signs missed? City auditors reveal years of questionable budgeting before JTA's $39 million financial crisis
New findings show repeated overspending, overly optimistic financial projections and gaps in oversight dating back years

JACKSONVILLE, Fla. – 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 whether warning signs were overlooked.

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.

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.

https://www.news4jax.com/news/local/2026/10/15/warning-signs-missed-city-auditors-reveal-years-of-questionable-budgeting-before-jtas-39-million-financial-crisis/

[thelakelander]

Did I miss where the Skyway was the reason for the deficit? All in all, just more reason to clean house at the leadership level over there. Its time for a restart.

[jaxlongtimer]

Did I miss where the Skyway was the reason for the deficit? All in all, just more reason to clean house at the leadership level over there. Its time for a restart.

Haha. I am guessing the buses, NAVI and Connexion each loss more than the $5 million/year of the Skyway.  So, by comparison, the Skyway didn't make the top 3 list.  I bet it might have been #4 but I guess the auditors speaking time ran out  .  I don't think JTA can afford to lose $5 million right now any more than the $10 million on NAVI.  Proof in the pudding is that the Skyway was "suspended" in step with NAVI and the other cuts to try and bring the budget back in balance. 'Nough said!

FYI, the Daily Record included the Skyway so maybe the notetaker for Channel 4 ran out of ink!

...Those financial miscues eventually led to staffing and service cuts at the JTA, as it accounted for a $39 million budget shortfall heading into FY27. In September, JTA announced that it would pause service of the Downtown Skyway and Neighborhood Autonomous Vehicle Innovation (NAVI) service, stop some bus routes and lay off nearly 200 employees over the coming months....

https://www.jaxdailyrecord.com/news/2026/oct/15/city-auditors-point-to-poor-budgeting-spending-in-jtas-financial-decline/

[CityLife]

I think if anything can be learned from the JTA ordeal is that there needs to be more local oversight from Jax/Duval and perhaps some more professional representation on the board. The previous structure of the JTA Board was 3 gubernatorial appointees, 3 mayoral appointees, and the FDOT District Secretary was the 7th. In 2025 this was changed to create 4 gubernatorial appointees (1 from Duval, Clay, Nassau, and SJC).

There are several other "state" transportation related agencies in Florida that do not have a majority of appointees from the governor. The Central Florida Expressway Authority only has 3/10 appointees from the governor. South Florida Regional Transportation Authority only has 3/10 appointees from the governor. Lynx has 0/5 appointees from the governor.

I think the Mayor or City Council should push the state legislature to change the Board structure of JTA. Instead of having gubernatorial appointees from Clay, Nassau, and SJC; I would appoint either the ED or Board President of the North Florida Transportation Planning Organization and the ED or Board President of the Northeast Florida Regional Council. Each should be able to represent the needs of the region, including the suburban counties. Then give the governor two appointees.

So the structure would be:

Jacksonville Mayor-3 appointees
Florida Governor-2 appointees
North Florida TPO-1 seat
Northeast Florida Regional Council-1 seat

or you can up it to a 9 member board, keep the TPO and Regional Council and give the Mayor 4 appointees and Governor 3 (governor could still do Clay, Nassau, SJC if desired). There are probably 20 different ways to do this that would work better than the current setup.

It also looks like the City Council and City Auditors need more financial oversight. Hopefully JTA being put under the microscope leads to some positive changes, so nothing even remotely close to this ever happens again.

[thelakelander]

Did I miss where the Skyway was the reason for the deficit? All in all, just more reason to clean house at the leadership level over there. Its time for a restart.

Haha. I am guessing the buses, NAVI and Connexion each loss more than the $5 million/year of the Skyway.  So, by comparison, the Skyway didn't make the top 3 list.  I bet it might have been #4 but I guess the auditors speaking time ran out  .  I don't think JTA can afford to lose $5 million right now any more than the $10 million on NAVI.  Proof in the pudding is that the Skyway was "suspended" in step with NAVI and the other cuts to try and bring the budget back in balance. 'Nough said!

FYI, the Daily Record included the Skyway so maybe the notetaker for Channel 4 ran out of ink!

...Those financial miscues eventually led to staffing and service cuts at the JTA, as it accounted for a $39 million budget shortfall heading into FY27. In September, JTA announced that it would pause service of the Downtown Skyway and Neighborhood Autonomous Vehicle Innovation (NAVI) service, stop some bus routes and lay off nearly 200 employees over the coming months....

https://www.jaxdailyrecord.com/news/2026/oct/15/city-auditors-point-to-poor-budgeting-spending-in-jtas-financial-decline/

The information provided basically states that the Skyway wasn't reason for them being $39 million in the hole. It's a good buzz word to pick at right now, but when we did deeper, we'll find out much of this is simply incompetence and lavish spending over a period of time without any real checks and balances. That was my point!