The Jacksonville City Council unanimously approved $30 million in gas tax funding for the Jacksonville Transportation Authority, aiming to help the agency address a $39 million budget shortfall and preserve dependable public transportation.
JACKSONVILLE, Fla. — On Tuesday, the Jacksonville City Council voted unanimously to make $30 million in local option gas tax revenue available to JTA as the transportation agency works to close a nearly $39 million budget gap.
The 15-0 vote changes the city’s agreement with JTA, permitting the agency to use the funds to reduce outstanding debt and pay eligible public transportation operating and maintenance expenses.
The funding is designed to ease JTA’s financial pressure while the agency restructures its budget and operations. JTA must repay the money without interest by Sept. 30, 2037.
JTA officials said the agency’s fiscal year 2026 budget was built on overly optimistic revenue estimates and included expenses that lacked adequate support.
Chief Financial Officer Randall Barnes said JTA has taken steps to close the gap by reducing expenses, eliminating jobs and putting projects on hold. Even with those measures, the agency continues to face a substantial shortfall.
The financial crisis has already led to major service reductions. JTA eliminated nearly 200 positions, cut weekday bus service and announced plans to suspend both the Skyway and NAVI, its autonomous shuttle service.
“The NAVI needs to die,” said Councilmember Jimmy Peluso, who represents downtown. “It’s the only part of the city where the NAVI operates, in District 7. It’s costing JTA way too much money, it’s costing taxpayers way too much money.”
At Tuesday’s meeting, Jacksonville residents and council members underscored how critical reliable public transportation is for people who rely on buses to reach work, school and other essential destinations.
“Jacksonville has many of our constituents that depend on public transportation, and we should not let them be hindered,” Jacksonville resident Denise Scott said.
Councilman Mike Gay likewise urged the city to protect dependable bus service.
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“Let’s get back to reality where we have a functioning bus service,” Gay said. “Cutting routes, increasing times is not what our community needs. It’s not what our businesses need. It’s so many businesses that depend on this bus service.”
Councilman Ron Salem supported the funding while calling for greater scrutiny of the decisions that led JTA to its current financial condition.
“With the help of our council auditors, we need to identify exactly what happened,” Salem said. “I think that’s extremely important to this community.”
The city’s Financial Audit and Oversight Select Committee met for the first time this week as it began examining JTA’s budget problems.
JTA is also under scrutiny from the Florida attorney general’s office. On Tuesday, First Coast News obtained a third subpoena seeking records concerning the agency’s finances and communications between its executives and Mayor Donna Deegan’s office.
Councilman Raul Arias urged JTA to work toward restoring the routes and jobs lost through the cuts.
“I know JTA is here in the audience, and I hope that you guys are listening to this and understand that we need to bring not only these routes back, but the jobs first, because we lost 200-plus employees at a time where the holiday season is coming up,” Arias said.
The legislation permits JTA to use eligible local option gas tax revenue to retire debt from transportation capital projects and pay qualifying operating and maintenance costs. State law requires the funds to support transportation-related expenses.
The city said the arrangement will not create a direct cost for its budget. JTA must replenish the designated local option gas tax account by Sept. 30, 2037.
Although council members approved the funding unanimously, the agency still faces the challenge of closing its remaining budget gap while addressing concerns about service reductions and the impact on riders.