by T.A. DeFeo
Atlanta city officials say a review of the More MARTA Atlanta program for fiscal 2017 through fiscal 2022 concluded that it is due roughly $70 million.
However, Metropolitan Atlanta Rapid Transit Authority officials say that independent auditor Mauldin & Jenkins’ calculations are wrong.
After then-Gov. Nathan Deal signed Senate Bill 369 in 2016, Atlanta voters approved an additional 0.5% sales and use tax starting in 2017. The money, part of an initiative now known as the More MARTA Atlanta program, is earmarked to expand the MARTA system over 40 years.
Atlanta City Council members in March 2023 called for an audit of the program, and the city engaged Mauldin & Jenkins. The audit’s scope included “evaluating and assessing fiscal, operational and managerial activity related to the program from inception through June 30, 2023.”
“Other findings [show] expenditures on More MARTA Atlanta enhanced bus service were significantly lower than budgeted amounts in FY21 and FY22,” the city said in a release.
“In years when the More MARTA Atlanta program’s expenditures on operations exceeded budgeted amounts, MARTA transferred funds allocated for More MARTA Atlanta capital programs from the City of Atlanta Reserve account to MARTA’s Unified Reserve account to cover the difference,” the city added. “In years when the More MARTA Atlanta program’s expenditures on operations were lower than budgeted amounts, MARTA transferred leftover funds from MARTA’s Unified Reserve account to the City of Atlanta Reserve account for use on More MARTA Atlanta capital programs.”
City officials said they agreed with the auditor’s 10 recommendations, including one that MARTA should work with the Georgia Department of Revenue to confirm the transit agency has adequate information to identify More MARTA Atlanta half-cent revenues.
However, MARTA officials pushed back on the city’s contention, saying the agency informed Atlanta and Mauldin & Jenkins officials about “their flawed methodology,” adding that they were “disappointed” in its responses, which it provided to both parties, “were not included or referenced.”
In a nine-page memorandum to Atlanta CFO Mohamed Balla and Mauldin & Jenkins Partner David Roberts, MARTA General Manager and CEO Collie Greenwood provided “comments” on the 10 “Observations and Recommendations” Mauldin & Jenkins included in its review.
“They used a flawed methodology by applying a COVID-based formula to reverse engineer what they believe should have been charged for bus service in 2017, 2018 and 2019, resulting in false calculations,” the transit agency said in a statement. “MARTA charged for the cost of actual bus service during those years and the City officials then in charge were aware of the costs, as the minutes of monthly meetings prove.
“Despite these errors, MARTA will continue to work in good faith with the City to improve the [intergovernmental agreement] and strengthen the overall success of the More MARTA Atlanta Program,” the transit agency added.
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T.A. DeFeo is a contributor to The Center Square.
Photo “MARTA Train” by dbking. CC BY 2.0.
