City council approves $30M gas tax to rescue JTA from financial crisis

JACKSONVILLE, Fla. – A Jacksonville city council committee has approved the release of $30 million in local gas tax funds to rescue the Jacksonville Transportation Authority from a deepening financial crisis.

The money would go toward stabilizing the agency’s finances after officials discovered a $39 million budget shortfall — raising urgent questions about how one of the city’s most relied-upon transit agencies reached this point.

The full city council is expected to vote on the emergency measure next Tuesday, Oct. 13.

RELATED | Florida AG subpoenas Mayor Deegan over meeting with former JTA board member who warned of financial crisis

How did the shortfall happen?

JTA’s interim CEO Cleveland Ferguson and newly hired Chief Financial Officer Randall Bernard Barnes — who joined the agency in August — laid out the details before the city council’s Transportation, Energy and Utilities Committee.

Barnes said JTA underestimated sales tax revenue at least two years in a row, resulting in a $19 million loss. On top of that, operating costs ran higher than expected for both the NAVI autonomous shuttle program and the Skyway. Barnes also said the cost to run Connexion — a ride service for people with disabilities — was not properly budgeted because of expected service cuts that never happened.

In February, JTA’s board amended the budget and announced layoffs after seeing the shortfall coming — but Barnes told the committee those steps weren’t enough.

“Even though the budget amendment addressed the expected revenue shortfall, the plan to cut expenses was really not sufficient to address the full cost to provide services,” Barnes said.

Nearly 200 people lost their jobs

Councilman Raul Arias pressed the agency’s leadership on what the layoffs actually saved. Ferguson said the workforce reductions are expected to save $21.9 million.

But Arias pushed back on that approach.

“Here’s the thing — 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 said. “But that’s where we’re at right now. So I would like to see scenarios where we could bring back these employees.”

The warnings that went unheeded

The crisis didn’t come without warning. Former JTA board member Megan Hayward — who served on the board for roughly a year and a half before being removed — says she repeatedly raised alarms about the agency’s finances, particularly spending on NAVI. According to Hayward, the program’s cost grew by more than $20 million beyond its original projection of about $250 million.

Hayward says she took those concerns directly to Mayor Donna Deegan in March 2025.

Now, Florida Attorney General James Uthmeier has subpoenaed Mayor Deegan, demanding records from that March 3, 2025, meeting — including emails, text messages, handwritten notes, and any recordings. The deadline for compliance is Oct. 20.

Deegan’s office confirmed the subpoena and said it would cooperate while disputing some of the details in the records request.

State prosecutors are investigating

The scrutiny extends well beyond the mayor’s office. The AG’s office previously subpoenaed JTA directly, seeking records on tuition reimbursement, contracts with an organizational development firm, and NAVI ridership numbers. Prosecutors are also examining communications involving former CEO Nat Ford.

Hayward has called for a criminal investigation into the agency’s use of federal funds.

The fallout has also reached beyond Duval County. Clay County voted to end its funding agreement with JTA.

City scrambles for accountability

City Council President Nick Howland reconvened the Financial Audit and Oversight Committee to investigate JTA’s finances. Councilman Ron Salem is pushing for an independent outside audit — separate from the committee’s work.

In a parallel move Tuesday, Mayor Deegan signed an executive order encouraging people appointed to city boards and independent agencies to complete training on finances, audits, ethics, and public records laws. The order also calls for independent agency leaders to certify the financial information they give the city.

“Taxpayers deserve confidence that the people overseeing their money understand the budgets, audits, and ethics rules in front of them,” Deegan said.

What’s the plan going forward?

If the full council approves the measure Oct. 13, JTA will receive the $30 million from the Local Gas Tax Option fund — without any new taxes. The agency will be required to pay the money back by Sept. 30, 2037.