Jacksonville City Council committees voted Tuesday, Oct. 6, to advance a $30 million interest-free loan to the Jacksonville Transportation Authority. The agency faces a $39 million deficit, up to 194 layoffs and a state attorney general investigation.

Council Member Rory Diamond, who represents District 13 covering Jacksonville Beach, Atlantic Beach and Neptune Beach, called the situation at JTA "terrible" but said the council had no choice. Diamond serves as the council's liaison to JTA.

@RoryDiamond: "Today, we had to vote forward $30 million in local gas tax to help @JTAFLA pay down debt and stay operating. The situation at JTA is terrible. We have no other options. We must hold people accountable for this nightmare."

The Transportation, Energy and Utilities Committee and the Finance Committee each approved Ordinance 2026-0780 by 8-0 votes. Two other committees approved the measure 7-0 on Monday, Oct. 5. The full council will hold a public hearing on the ordinance Tuesday, Oct. 13.

Where the money comes from

The $30 million would come from JTA's unspent allocations of Jacksonville's 5-cent and 9th-cent local option gas taxes, which are collected on fuel sales. Under a 2021 agreement with the city, portions of that revenue were dedicated to JTA transportation projects, including its autonomous vehicle program and work connected to the Emerald Trail.

JTA told the city approximately $47 million of its allocated gas tax revenue remains unspent, according to a breakdown published by Sweet Tea & Class War. The ordinance would allow the agency to use up to $30 million of that money to retire eligible debt and certain related expenses, leaving roughly $17 million unspent.

Under the ordinance, JTA must repay the loan from operational funds by Sept. 30, 2037. No minimum periodic payments are required. JTA can repay "as and when JTA is financially able to do so," the ordinance states.

The money cannot be used for severance, accrued leave payouts or other workforce reduction costs. The spending window closes Sept. 30, 2027, or when a new interlocal agreement between the city and JTA takes effect, whichever comes first.

A transit agency in crisis

JTA's board approved the gas tax move at a Sept. 23 meeting, the Jacksonville Daily Record reported. The agency said it would use the funds to pay down a $25 million line of credit and avoid further interest payments.

JTA announced Sept. 17 it would lay off up to 194 employees and cut bus service to Saturday levels on many routes. The agency plans to suspend Downtown Skyway passenger service beginning Nov. 2 and pause NAVI autonomous shuttle operations Dec. 31.

City Council auditors traced the deficit to $17.4 million in revenue shortfalls and $14.4 million in expenses that exceeded budget. Unbudgeted costs included $8.4 million under the Connexion paratransit program and $7.4 million in fringe benefits, the Daily Record reported.

JTA's sales tax revenue dropped from roughly $111 million in 2023 to a projected $80 million for fiscal year 2026-27, according to the Florida Times-Union.

Multiple investigations underway

Florida Attorney General James Uthmeier's Office of Statewide Prosecution issued a subpoena to JTA on Sept. 28 seeking records from Oct. 1, 2023, through Oct. 21, 2025, First Coast News reported. The subpoena seeks records involving the agency's tuition reimbursement policy, certain contracts and communications involving former CEO Nat Ford.

Council President Nick Howland also formed a Financial Audit and Oversight Select Committee, chaired by Council Member Chris Miller, with a Dec. 4 deadline to present findings, the Florida Times-Union reported.

Diamond, speaking to First Coast News on Sept. 29, said taxpayers and laid-off JTA workers "deserve answers" and called for an independent outside investigation.

What's next

The full Jacksonville City Council will hold a public hearing on the $30 million ordinance Tuesday, Oct. 13. Beaches residents who want to weigh in can attend the meeting or contact their council member before the hearing.