JTA Interim CEO Withdraws From Permanent Job Search as Board Seeks Outside Review of $39 Million Shortfall

JACKSONVILLE, Fla. - Cleveland Ferguson III will not be the Jacksonville Transportation Authority's next permanent chief executive. Ferguson, who has led the agency on an interim basis since late August, announced at Wednesday's JTA board meeting that he is withdrawing from consideration for the permanent job. He will stay on as interim CEO until the board hires someone, and JTA said he wants to focus solely on fixing the authority's financial crisis.

The announcement came at an Oct. 28 meeting where the board also voted to hire an outside firm to examine how JTA ended up with a $39 million shortfall. It followed a public call one day earlier by board member Daniel Vallencourt for Ferguson and two other top executives to resign. Public comment at the meeting ran nearly two hours, according to News4JAX, with former bus drivers among the speakers.

What Ferguson and the Board Said

The JTA board unanimously named Ferguson interim CEO on Aug. 27 and told him to take "quick and decisive action" on the budget, according to the agency's Oct. 28 news release. Shortly afterward, he presented an amended 2026-27 budget to close the $39 million gap. The release said his decision to step out of the CEO search is meant to let him concentrate on that work.

"Leading through this time has been the honor of a lifetime," Ferguson said in the release. "My focus is to try to help this organization and this community to get to the other side of this." At the meeting, he added that he "very much wanted to continue serving this organization as its permanent CEO" and that the decision "is not a resignation of my responsibilities as interim CEO," News4JAX reported.

Board Chair Aundra Wallace praised the interim chief in the same release. "Cleveland showed true leadership in taking control and responsibility to put the JTA on solid financial footing for our customers and our community," Wallace said. "He stepped into an incredibly difficult situation and made the difficult decisions needed for the JTA."

The Outside Review

The board's published agenda listed Resolution 2026-21, which approves the intent to procure "an Independent Financial Assessment, Governance Review, and Financial Recovery Consulting Firm." JTA said the board voted Wednesday to hire an outside auditing firm to determine how the authority reached its current position before Ferguson took over. The agency has not yet named a firm or a cost.

The same agenda included Resolution 2026-22, a temporary pause of Skyway and NAVI autonomous shuttle service and a realignment of downtown mobility. Other items covered state-required certifications of administrative costs and gifts, an October financial report and two Emerald Trail and University Boulevard planning approvals. The board also considered selling two JTA properties, at 13158 Gillespie Ave. and 1022 Prudential Drive.

JTA's Budget Problems by the Numbers

The figures below come from JTA's news release, slides JTA presented Wednesday as reported by News4JAX, and a statement from Vallencourt reported by Jacksonville Today. They describe different pieces of the same problem, so they do not add up to a single total.

Jacksonville Today also reported that JTA has laid off nearly 200 workers. Fitch Ratings downgraded the authority from AA+ to AA- on Oct. 21 with a negative outlook, according to the same report. Clay County has voted to end its funding agreement with JTA, the outlet reported.

The Call for Resignations

Vallencourt, who joined the board in February, released a statement Oct. 27 calling for the interim CEO, the chief operations officer and the senior vice president of public affairs to step down. "The house was on fire, and leadership was doing everything it could to convince everyone otherwise," he wrote, according to Jacksonville Today. He said the board learned at an August retreat that reserves had been drawn down, and he also said he shares responsibility for not demanding raw financial documents sooner.

Vallencourt's statement also questioned several contracts and expenses. They include nearly $1 million over two years to Dream Builders Communication for leadership training and succession planning, $249,000 to Team Pegine in 2025 and $730,000 to Gannett Fleming TranSystems for an operational plan, Jacksonville Today reported. He also cited executive trips to Germany and Japan while the agency was drawing on reserves.

Other Investigations

JTA's troubles are being examined on several fronts outside the agency. The Florida Attorney General's Office has subpoenaed JTA records on contracts, travel, sponsorships and communications involving former CEO Nat Ford and other leaders, and JTA has said it is prepared to cooperate fully, Jacksonville Today reported. City auditors have told a council committee the problems may go back years, though they said they have not found that financial statements were intentionally falsified.

Ford resigned in July and started as CEO of Dallas Area Rapid Transit on Oct. 26, according to Jacksonville Today. The City Council's Finance Committee has voted to subpoena him, and he is expected to testify before the end of the year. No date had been set as of this week.

What Happens Next

The JTA board's CEO search committee is scheduled to meet again Monday, News4JAX reported. Jacksonville Today reported that the managing principal of KL2 Connects, the firm running the search, had also been a paid JTA contractor, which JTA's procurement director called a potential conflict of interest in writing. The board has not announced a timeline for naming a permanent CEO.

For riders, the immediate changes are the service cuts and route adjustments JTA has already announced, along with the downtown mobility changes on Wednesday's agenda. JTA posts board meeting notices, agendas and materials on its website ahead of each meeting. Meetings are held in Board Room 341 on the third floor of the Jacksonville Regional Transportation Center, 100 LaVilla Center Drive.

More Information

JTA's news releases are posted in the agency's media center. Board and committee meeting dates, agendas and materials are on the JTA board meetings page. Riders can check routes and service changes at jtafla.com.