JACKSONVILLE, Fla. — The City Council’s investigation into the Jacksonville Transportation Authority’s financial troubles got underway Friday, and the questions weren’t limited to JTA’s leadership. Council’s own auditors were on the hot seat, too.
The Financial Audit and Oversight Committee began digging into JTA’s internal structure and finances, just days after a council committee advanced a temporary, partial fix for the agency’s money problems.
“To be here because of what we learned is not a good or happy place,” said JTA Interim CEO Cleveland Ferguson.
Councilmember Ron Salem pressed council auditors on when they first raised concerns about JTA’s finances with the Finance Committee.
“I wouldn’t say I raised the red flag,” one auditor responded, adding that auditors are reliant on JTA’s numbers.
Auditors said they did question the agency when its financial projections didn’t line up with actual numbers. They’re now combing back through JTA’s financials.
Ferguson acknowledged heavy spending on projects whose futures remain uncertain and warned that what the probe turns up may not be pretty.
But Ferguson also pointed out that JTA didn’t act alone. “When you look into these strategic pursuits, they were done by agreement... with the mayor and City Council,” he said.
In other words, the council leading this investigation signed off on many of the projects it’s now examining.
Council also unanimously approved replacing Megan Hayward, the JTA board member who raised questions about ridership numbers and spending about a year and a half ago. Mayor Donna Deegan removed Hayward, and the mayor now faces questions about whether she knew how serious JTA’s financial turmoil was.
On Friday, Council President Nick Howland said that decision may have been a mistake.
“If we knew then what we knew now, that likely would not have happened,” Howland said.
Questions also remain about how much outgoing CEO Nat Ford knew.
“I think that is going to be part of the review of the select committee over the next several weeks,” Howland said.
What comes next for JTA
Several JTA projects are set to pause, and the agency needs new revenue to keep its core operations funded. Whether JTA has the capacity to handle all of its projects is still an open question.
Ferguson floated the possibility of tolls. Howland isn’t sold.
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