State attorney general subpoenas JTA amid transit agency’s budget woes

The Jacksonville Transportation Authority now faces a State attorney general subpoena, adding to the public scrutiny as the transit agency tries to plug a $39 million budget hole by laying off dozens of workers and cutting back services.

JTA officials confirmed Tuesday they had received the subpoena from Florida Attorney General James Uthmeier’s Office of Statewide Prosecution. 

“The Jacksonville Transportation Authority has received a subpoena from the State Attorney General’s Office and is prepared to fully cooperate.” JTA spokesperson Lynn Opperman said in a statement. “The JTA remains committed to transparency and accountability and will provide information as requested throughout this process.” 

The subpoena, obtained by Jacksonville Today through a public records request, demands documents like contracts with vendors, including one related to wellness and massage services, and communications involving JTA’s former CEO, Nathaniel Ford and his wife.

It also requests ridership numbers that JTA reported to the American Public Transport Association for its Downtown autonomous vehicle shuttle service, NAVI.

The state investigation comes after a tumultuous month for the authority, which announced a mass layoff of up to 194 employees, reduced bus route schedules and halted NAVI and Skyway service.

JTA is also attempting renegotiate an interlocal agreement to allow the agency to use $30 million of local option gas tax revenue to ease its budget shortfall. 

And the City Council is expected to announce its own audit and oversight probe into JTA this week.

JTA subpoena 

Interim CEO Cleveland Ferguson informed JTA’s board of directors Monday in a memo that he had received the subpoena from the state attorney general’s office. 

In the communication, first reported by The Florida Times-Union and later obtained by Jacksonville Today, Ferguson says state investigators are looking for documents primarily from Oct. 1, 2023, through Oct. 21, 2025. Ferguson told the board the subpoena also requests:

“…the Authority’s tuition reimbursement policy; certain contracts, through 2026, with one of our organizational development firms; and specified communications involving the former CEO, his spouse, and the owner of that firm, as well as communications between me and my executive assistant relating to scholarships and tuition,” the memo states.

Fiscal problems at JTA began to surface after former CEO Nat Ford Sr. was selected to lead the Dallas Area Rapid Transit system this summer. Ford had announced earlier this year that he planned to retire from JTA in January after 13 years with the agency.

“We are preserving all potentially responsive records. Please direct any questions about the subpoena, its scope, or the response process to Richard accordingly,” the memo states, presumably referring to JTA’s outside general counsel, Richard Milian of the Nelson Mullins law firm.

In addition, state investigators are requesting text messages and email communications between Kenston Griffin, founder and CEO of consulting firm Dream Builders Communications Inc., Nat Ford and Janet Walker-Ford, as well as emails referencing contracts with Mason Nye Murals, which were previously examined by the city’s Inspector General.  

Jacksonville city leaders react

Florida laws gives oversight of JTA to both the state elected officials and the city of Jacksonville. 

Of the board’s seven members, four are appointed by the Florida governor and confirmed by the state Senate. The other three members are appointed by the mayor and confirmed by council. City lawmakers approve JTA’s annual operating budget.

“It’s important to remember that JTA is a state agency. Its staff is made up of state employees, the majority of its board is appointed by the governor, and its budget is reviewed and approved by the Jacksonville City Council,” Mayor Donna Deegan’s office said in a statement Tuesday.

“We’ve always stood for transparency and appreciate JTA’s cooperation with any effort to get to the facts. The administration looks forward to working with JTA leadership to minimize the disruption of services as much as possible,” the statement says.

Since announcing the cuts, city leaders have praised Ferguson and his executive team for their handling of the budget crisis.

Jacksonville City Council President Nick Howland says the state’s investigation will not change a city-led investigation into JTA’s budget shortfall. 

Howland tells Jacksonville Today that on Wednesday he’ll announce a select committee investigation into the transportation authority. 

“Right now, it looks like we have two investigations going on. One looking for misconduct and the other looking to do a forensic financial audit,” Howland says. “So what the financial audit and oversight select committee will be charged with tomorrow will be to understand how we got to where we are. But also to figure out how we fit it moving forward.”

The council president says he’s not spoken to the Uthmeier’s office about the subpoena nor has he heard any concern from the state that a local investigation would compromise the state’s probe. 

But Howland says he has talked to the city’s Office of General Counsel and Mayor Deegan’s office.

“We’d be remiss if we did not start looking at how to stabilize JTA’s financial situation and optimize transportation for Jacksonville residents,” Howland said. “You know, attorney general investigations could go on for months, and people need to get to work now.”

Council committees will also begin to debate Ordinance 2026-0780, which would allow JTA access to the gas tax dollars. 

In 2021, city lawmakers approved an increase and extension of the gas tax that would, in part, provide $247 million to Phase II of JTA’s autonomous vehicle program, which was meant to be a replacement for the Skyway. Ridership during the NAVI’s Phase I has struggled to meet initial projections.

The gas tax was also set to provide $132 million for JTA to build out the Emerald Trail, a 32-mile multi-use pedestrian and bicycle path planned and designed by Groundwork Jacksonville.

The authority’s board approved the gas-tax revenue request this month. It would advance JTA the gas tax revenue in the form of a loan that would have to be repaid to the city no later than Sept. 30, 2037.

In addition to the council probe into JTA’s deficit, the agency’s board will commission an independent audit to determine how it descended into a fiscal crisis. 

On whether Ford should bear any tangible responsibility for JTA’s current situation, Howland said that will be up to attorneys.

Howland said what surprised him was that two months ago, JTA and city officials projected the agency would have a $2 million shortfall ending the 2025-26 fiscal year. 

After Ford’s departure, the agency appointed Ferguson as interim CEO and hired a new chief financial officer; those projections changed to nearly $31 million.

“That to me showed that something was untoward, but that is likely going to come out in either the attorney general’s investigation or the board’s own forensic audit,” Howland said.