JACKSONVILLE, Fla. — Jacksonville City Council unanimously approved a plan Tuesday to provide the Jacksonville Transportation Authority with $30 million in gas tax revenue as the agency works through a major financial shortfall.
The funding will function as a loan, with JTA expected to repay the money over time.
Council members voted 15-0 in favor of the measure, despite mixed reactions from residents who spoke before the vote.
“We all should support it. We really have no choice,” Councilman Ron Salem said.
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“Getting back to what the JTA is supposed to be doing and that’s providing transportation to our community,” Councilman Mike Gay said.
Last month, Action News Jax reported that nearly 200 employees could be laid off as JTA works to close a $39 million budget gap.
Residents offered differing opinions during Tuesday night’s meeting.
“The people didn’t create this crisis, and we shouldn’t have to pay for it,” one resident said.
Another resident supported the move, citing concerns about transportation affordability.
“The routes got cut; it was really bad. I’m hoping that the gas tax ... the changes to the gas tax will help address some of the affordability issues that they’re having,” the resident said.
District 7 Councilman Jimmy Peluso emphasized that the funding does not represent new money for the authority.
“They’re just getting access to dollars that they would’ve otherwise gotten access to at a later date,” Peluso said.
Under the agreement, JTA will have until 2037 to repay the money, which is intended to support transportation-related projects.
“I think they’re going to get to a place where they solve it. Relatively quickly,” Peluso said.
Salem noted that JTA has already taken out a $25 million loan and described the agency’s situation as a “death spiral.” Several council members agreed that Tuesday’s vote represents a step toward stabilizing the authority’s finances.
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