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Atlanta’s MARTA Challenges $70 Million Audit Dispute

MARTA train station in Atlanta, bustling with commuters

News Summary

The Metropolitan Atlanta Rapid Transit Authority (MARTA) is contesting a $70 million audit claim from the city of Atlanta, with findings from KPMG suggesting MARTA may only owe $865,630. The dispute relates to funding for transit expansion projects and controversial audit methodologies. MARTA has already transferred $20 million to address alleged debts while pushing for improved accountability and transparency regarding service changes. As negotiations continue, MARTA and city officials seek clarity on financial responsibilities to expedite essential transit projects.

Atlanta Transit Showdown: MARTA Fights $70 Million Audit Claim

In the bustling city of Atlanta, a significant financial dispute is brewing between the Metropolitan Atlanta Rapid Transit Authority (MARTA) and the city itself. MARTA is contesting an independent audit that claims the transit agency owes a staggering $70 million for certain expansion projects that were funded by a city sales tax.

KPMG Steps In With a New Assessment

A fresh analysis by KPMG indicates that MARTA’s actual financial responsibility may be dramatically lower, estimating that the agency only owes $865,630 as of June 30, 2022. This newfound figure stands in stark contrast to the original audit conducted by Mauldin and Jenkins, which alleged a far greater overspend from fiscal year 2017 to fiscal year 2022.

Sales Tax Funded Expansion Projects

The contention traces back to 2016, when Atlanta voters approved a half-penny sales tax intended to fund the More MARTA transit expansion and improvement program. This initiative was designed to funnel revenue toward MARTA’s general fund and the city’s capital reserve account for new projects, aligning with city development goals.

The Controversial Methodology

The audit from Mauldin and Jenkins employed a threshold methodology that attributed all service changes to the More MARTA program, regardless of external factors or diverse locations. KPMG representatives, who shared their findings during a state legislative committee hearing, argued that this approach has become less applicable as the More MARTA program evolved. They further emphasized that the methodology fails to consider shifts in service dynamics particularly during the COVID-19 pandemic.

Proportional Methodology Advocated

KPMG suggests a proportional methodology that spans the transit network as a whole, taking into account when the More MARTA program stabilized back in December 2019. This revised approach aims to distribute service changes more accurately across MARTA’s operations, reflecting true service adjustments rather than erroneous attributions.

Financial Maneuvering Already Underway

In response to the findings of the original audit, MARTA has already transferred $20 million to satisfy the alleged debt, although reconciliation with KPMG’s updated insights remains a necessary step. As the city of Atlanta continues to assert that the transit agency still owes the original $70 million, officials are diligently reviewing the latest assessment.

Legislators Voice Concerns

State representatives, like Republican State Rep. Deborah Silcox, who chairs the Metropolitan Atlanta Rapid Transit Overview Committee (MARTOC), have voiced their skepticism regarding the threshold methodology employed initially. They argue that it does not genuinely capture the nuances of service changes, particularly those resulting from the pandemic.

The Push for Transparency and Collaboration

In light of the ongoing disputes, MARTA is advocating for improved documentation processes surrounding service changes, along with scheduled performance reports to enhance accountability. With leadership from MARTA’s CEO, the agency emphasizes its commitment to transparency concerning the funds managed.

Future Steps

Negotiations between MARTA and Atlanta officials are imperative to resolving the ongoing discrepancies in the audit process. As both parties seek to expedite crucial transit projects, such as the Five Points Station renovation, clarity and cooperation will be vital to ensure efficient service for the city’s residents.

As this financial saga unfolds, the City of Atlanta firmly believes that MARTA owes due diligence to taxpayers and insists on a collaborative approach to tackle the remaining balance together.