The Memphis Area Transit Authority’s (MATA) two-man leadership team delivered a rare upbeat assessment of the troubled transit system’s operations to Memphis City Council members on Tuesday, August 4.
Since March, ridership has increased by upwards of 30% along MATA’s 23 fixed routes. The ongoing free fair offer has been given much of the credit. MATA began the pilot program offering free rides in late 2025 to gauge its impact on ridership.
“We will continue to evaluate it and I am hopeful over the next 45 days we will be able to reach a decision,” said interim CEO Roderick Holmes.
Moreover, new buses will be added to an aging fleet in the midst of an overall replacement. Over the past several years, wait times have expanded as breakdowns became commonplace.
With the additions, a total of 21 new large buses will be in operation by next week. Another 12 buses were previously added to the fleet. A larger convoy will roll into town next year. Nearly 50% of MATA’s current fleet buses “are past their useful life.”
“Just over the last two weeks, through a series of negotiations over the last few months, we’ve been able to get an allocation of over 32 additional buses in the spring or early summer of 2027,” said Holmes.
The goal is to have 56 new large buses. A total of 51 buses is considered a “full compliment.”
The fleet transformation will be completed by the refurbishment of 15 existing buses. When the overhaul is done, they will be added to the fixed routes. MATA brass hope to bring routes back to former scale, prior to 2024 cuts. They also hope to expand the number of routes across the MATA service area.
Holmes is currently one of a two-man team attempting to shepherd the hardpressed division back from the financial abyss.
Fiscal trustee Art Davis was appointed two weeks ago. Already, he has implemented controls for review processes and signoffs. Meetings are also planned to discuss cashflow and the budgeting process.
“I take this responsibility as a great opportunity to help improve MATA’s and the transportation system and I am very excited to be able to do that,” said Davis, who previously served as the CFO of the City of Memphis.
Council members withheld financial questions for a later update. There are sure to be many. In 2023, an annual budget deficit at MATA came to light. A 10-year study revealed a red line that stabilized at $60 million after rising as high as $91 million.
Outrage swelled after an independent audit revealed questionable spending under former leadership. This list of infractions included unaccounted for credit card charges, luxury travel, Grizzlies tickets and a $4 million rented Downtown office space that sat largely empty.
Council responded by taking a hatchet to MATA’s annual budget. The transit authority’s FY2027 budget is $32 million, down from over $55 million 10 years prior. One council member complimented the “tremendous job” being accomplished with the limited resources.
“You walked into a chaotic mess for over decades and I know that it’s going to take some time,” noted council member Yolanda Cooper-Sutton. “At first, we were in the blind, and we didn’t know anything. We thank you for all the hard work that you’re doing and being transparent with us. I don’t think I would have known half of the stuff that you all have revealed.”
Along with a new fleet, steps have also been taken to improve the rider experience. New signage is being added that will replace the familiar green aluminum marker. The new signs will note the stage, bus number and destination of the route. A phone number for rider inquiries and a QR code are included.
“This sign is clearly an upgrade from what we did before,” said Holmes.
New shelters continued to be installed apace too. A total of 16 have been installed with plans for two to three to be added per month. Some of the locations for upgrades are based on rider input. A QR code allows them to suggest possible locations to consider.
Meanwhile, MATA’s trolley system is on track for return in the fall. System integration testing is underway, after braking systems testing was completed. A 180-day notice has also been submitted to the Tennessee Department of Transportation. Four trolleys have been selected for service.
