MARTA is ‘missing’ $50M in taxpayer funding, claims former transportation official

ATLANTA, Ga. (Atlanta News First) - On Thursday, Douglas Nagy sounded the alarm to the MARTA Board of Directors that MARTA leadership is to blame for more than $50 million “missing” from the More MARTA program.

“Did you know that MARTA’s own numbers, own reported numbers show that more than $50 million has gone missing from More MARTA,” Nagy said during Thursday’s Board meeting.

Nagy said he’s basing this claim on financial records he received from MARTA during his former role as Deputy Commissioner for Strategy and Planning with Atlanta’s Department of Transportation.

“MARTA’s executives have not been forthright with the City of Atlanta and have not been forthright with the MARTA board and it’s important that someone takes a stand and tells the truth,” said Nagy in an interview with Atlanta News First on Thursday.

Nagy showed detailed reports of MARTA’s financials from 2020 to 2023. He pointed to $57.3 million in funding from the More MARTA program that was allocated for bus enhancements.

Nagy showed further MARTA records that show those enhancements didn’t happen.

“That same period, Atlanta didn’t get really any expanded bus service. So what did this $57 million go to if it didn’t go to this? Someone better start answering,” said Nagy.

In March, the City of Atlanta launched an audit into the More MARTA program.

“Are these public dollars being spent as the public intended them to be spent,” questioned Atlanta City Councilmember Amir Farokhi, on March 21.

There is no timetable for when that audit will be published.

Also in March, Atlanta City Council President Doug Shipman pressed CEO Collie Greenwood for documentation that shows authorization approving use of More MARTA funding for expenditures outside of capital projects.

“Is there a document like the 2018 letter that codified that significant change that you are able to find,” asked Shipman, in a March 1 transportation committee meeting.

“I’ll look for it. It’s a great question,” said Greenwood in March.

On Thursday, Shipman told Atlanta News First that he still had not received any documentation showing MARTA leadership approved this funding allocation.

After Nagy testified during the public comment of the MARTA Board meeting, Board Chair Thomas Worthy gave a brief response.

Worthy said the ongoing audit will answer the allegations posed by Nagy.

“I am confident that if it [the audit] uncovers something, it will be rectified. And I’m confident that if nothing is uncovered maybe we will here from Mr. Nagy,” said Thomas Worthy, MARTA Board chair.

On Thursday, a MARTA spokesperson provided this statement to Atlanta News First following Nagy’s allegations:

“As our GM/CEO Collie Greenwood has told the City of Atlanta, we are working to true-up the sustaining capital costs based on actual expenditures and the remaining money will be placed in the More MARTA Atlanta reserves,” said Stephany Fisher, MARTA spokesperson.

Fisher provided these additional comments:

We will be executing a true up on an annual basis after the publishing of the final National Transit Database (NTD) data and make corresponding adjustments to the City of Atlanta Reserve portfolio. FY23 will be reconciled in late spring 2024 with fund transfers executing before the end of June 2024.

The focus of what Mr. Nagy is pointing out is during the COVID years, but he is not taking 2017-2020 into consideration. In these years, the cost of the service provided outpaced the funds provided by the City of Atlanta. If we accomplished an annual true up for those first few years, we would have been taking funds out of the City of Atlanta capital reserve to pay for operations.