CARTA warns of fiscal cliff as county pulls funding

CHATTANOOGA, Tenn. (WDEF)- CARTA is warning they are entering into a tough financial situation if they do not get funding from the upcoming Hamilton County budget.

The proposed Hamilton County budget for the upcoming 2025 Fiscal Year budget does not mention CARTA in the budget.

Last year, CARTA received over $100,000 of funding from the county.

Claire McVay, the Chief of Staff for Hamilton County Mayor Weston Wamp, said the reason behind this was, “In a tight budget year, we were forced to fund agencies most closely aligned with functions of county government. We’re supportive of CARTA and its mission, and we’re open to exploring future partnerships.”

CARTA CEO Charles Frazier stated at the recent CARTA Board meeting that they are operating right now at a 20 percent loss without an increase in funding, and says losing funding could hamper their ability to continue operating as he referenced a quote, “fiscal cliff” for the company.

However, Frazier did say CARTA has work to do to regain the trust of their community partners.

He said, “Our funding partners expect for CARTA to demonstrate that we are controlling costs properly and that we are eliminating waste, so we’ll need to do that and prove that we can do that before we see movement there.”

The city of Chattanooga’s budget does allocate $5.8 million for CARTA’s operating budget and an additional $1.5 million for maintenance.

Frazier added that CARTA, “We appreciate the ongoing dialogue with county leadership and look forward to exploring opportunities that benefit our community. For CARTA, collaboration with Mayor Wamp and the County Commission is essential as we all address workforce needs, economic development, and the transit infrastructure that serves all our area residents. By working together, we can develop innovative solutions that will improve public transportation and contribute to the overall growth and prosperity of our region.”