MARTA owes up to $70 million to the Atlanta transit expansion program funded by a half-penny sales tax approved by voters in 2016, according to a new audit.
Officials with the transit agency dispute the numbers, however, saying auditors used “flawed methodology” in its examination of the More MARTA expansion program.
The audit was released Aug. 19 by the office of Mayor Andre Dickens. The Atlanta City Council requested the audit of the More MARTA expansion program in 2023.
Council members at the time raised concerns about the transit agency’s changes to the scope of More MARTA projects. A complete audit of the project would ensure the sales tax revenue was going to projects like light rail, bus rapid transit and arterial rapid transit, according to council members.
Mauldin & Jenkins was hired by the city to conduct the audit. The company looked at all revenues and expenses of the More MARTA program between 2017, the first year the sales tax revenue was collected, through June 30, 2023.
“The audit team looked at More MARTA Atlanta program costs … following MARTA’s current Operational Programs cost allocation methodology and concluded the More MARTA Atlanta is due roughly $70 million,” according to a news release from the office of Mayor Andre Dickens
The news release also said the audit found expenditures on More MARTA enhanced bus service were “significantly lower” than budgeted amounts in fiscal years 2021 and 2022.
“In years when the More MARTA program’s expenditures on operations exceeded budgeted amounts, MARTA transferred funds allocated for More MARTA capital programs from the City of Atlanta Reserve account to MARTA’s Unified Reserve account to cover the difference,” according to the news release.
“In years when the More MARTA 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 capital programs.”
MARTA officials said simply that Mauldin & Jenkins’ calculations “are wrong.”
“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,” said MARTA spokesperson Stephany Fisher in a written 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,” Fisher said. “MARTA informed the city and Mauldin & Jenkins of their flawed methodology and is disappointed that our responses to the audit which were provided to both parties were not included or referenced.”
Collie Greenwood, CEO and general manager of MARTA, said in a memorandum that he agreed with many recommendations included in the audit. But Greenwood also said MARTA has “significant disagreement” over spending and revenue for operational programs.