by Mike Sharkey
Staff Writer
Two of Jacksonville’s four independent agencies, JTA and JEA, went through the City Council Finance Committee’s budget vetting process Thursday and escaped relatively unscathed.
While neither had their budget cut — legally the City trimming the budget of an independent agency is tricky — the transportation authority received significantly more scrutiny than the electric authority.
Overall, JTA’s proposed budget is $106.6 million. Of that, a majority (about $72.6 million) is in bus operations. The rest of the JTA budget is comprised of Skyway operation, a community free ride service (JTA’s Connexion service) and engineering.
“This is money that flows back and forth between the City and JTA,” said Kyle Billy of the Council Auditor’s Office.
Billy said JTA generates funds from two pots: about $56 million from the sales tax attached to the Better Jacksonville Plan and $1.2 million from the City to subsidize the JTA Connexion service. The BJP money includes the half-cent sales tax approved in 2000 and the local gas tax. The Finance Committee doesn’t have the authority to alter either line item and both are contingent, in part, on the economy.
“The bus operations are heavily subsidized and their main expenditures are wages and benefits,” said Billy.
Included in JTA’s proposed 2009-10 budget is a significant jump in health care expenditures. Blair Fishburn, JTA’s CFO, said rising health care costs and an under-budgeting of such costs last year add up to create the increase.
The Finance Committee suggested a 3 percent cut in the City’s contribution. However, JTA Executive Director Mike Blaylock said that would only hurt JTA’s ability to provide free transportation for those with no other means of getting around. Blaylock also said he has made major cuts already.
“Three percent of $1.2 million is $40,000. The challenge for us is we have projects budgeted, but it’s not solid,” said Blaylock, explaining the BJP revenues are tied to sales tax in Jacksonville and the gas tax is tied to the cost of fuel, both of which fluctuate. “I have already made a 9.3 percent cut, which is a huge reduction in the system.”
Blaylock was also grilled on the Skyway, which costs JTA over $7 million annually to operate. Council President Richard Clark said his office faces the Hemming Plaza Skyway station and he maintains ridership is low.
“I am trying to figure out the end game with the Skyway,” said Clark. “Why do we continue to operate this?”
Blaylock defended the system by saying it, as well as the Kings Avenue parking garage, were built ahead of their time.
“There were projections of 200,000 workers Downtown that never occurred,” said Blaylock, adding the idea now is to integrate the Skyway into a transportation system that sees bus routes into Downtown terminate at Skyway stations. He also thinks one day the Skyway will be beneficial. “I am crazy enough to believe Downtown will come back strong.”
JTA’s budget of $106.6 million looks scant compared to JEA’s proposed budget of $2.2 billion. The utility provides electric, water and sewer service to all of Jacksonville and has 2,460 employees. Its budget and number of employees are both the same as last year.
JEA Managing Director/CEO Jim Dickenson was asked about his marketing and advertising budgets for the next fiscal year. Recently, JEA came under heavy scrutiny for its use of marketing dollars.
“In this budget vs. last year’s budget we have cut the marketing and business promotion by 76 percent,” he said. “Our focus is mission critical. Operations come first. We deliver water and electricity.
“We have made tremendous cuts internally to make budget this year.”
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