Representatives from the Capital Area Transit System and the East Baton Rouge Mortgage Finance Authority will join Mayor Kip Holden on Monday morning to publicly lay out how CATS intends to fill a $1.5 million budget shortfall and remain operational for the remainder of the year.
On Tuesday, the MFA approved providing CATS with a $500,000 grant that will turn into a loan, with interest, should CATS find a dedicated funding source over the next five years. Holden orchestrated the deal and has been working on seeing it to completion since January, CATS CEO Brian Marshall says.
“I’m really impressed,” Marshall says. “In my 22 years in public transportation, this is the first time where I’ve seen a mayor guide a private entity into helping fund a public transit solution. I think it speaks volumes to his commitment to this city and public transportation.”
The MFA is a state-created agency, but it receives no public funding from the city-parish, state or federal government, says MFA program administrator Vickie Theriot. Though the MFA traditionally deals in home loans for low- and moderate-income residents, Theriot says, this is not the first time the agency has stepped forward to provide funds for other purposes dealing with economic development and transit.
After Metro Council members failed to approve fare hikes and service cuts, CATS officials announced in January the system was in jeopardy of going broke by October. Holden is expected to announce additional grant funding from the state to fill the remainder of the budget shortfall now that the MFA grant has been secured. Holden declined further comment before Monday’s 10 a.m. press conference, which will be held in Metro Council chambers on the third floor of the Governmental Building. — Steve Sanoski
