In a public statement released Monday, Oct. 26, J. Daniel Vallencourt called for the resignations of JTA’s interim CEO, chief operating officer and senior vice president of public affairs. He said the authority needs a fresh start to address its finances.

“The Jacksonville Transportation Authority cannot navigate this financial crisis without major change,” Vallencourt wrote, describing the situation as a fire that leadership had tried to portray as under control.

Vallencourt joined the board in February. He said that at his first meeting, management sought approval for an emergency budget reduction from $162.4 million to $148.2 million, attributing the change to lower sales-tax revenue. The board was not told, he said, that JTA had already been drawing on its reserves for a year.

By the time of that meeting, $34.2 million had been taken from reserves, Vallencourt said. He said the board did not learn of the withdrawals until an August retreat, 18 months after they began. Monthly financial reports included a “Pending” column that, in his view, made the agency’s finances appear healthier than they were.

JTA spent $181.1 million against a board-approved budget of $148.2 million, according to Vallencourt’s statement — a $32.9 million overrun. The shortfall reached about $39 million by August.

Vallencourt also questioned the timing of public assurances about JTA’s financial health. He said former CEO Nat Ford described the authority as “financially strong” in May, a day after the board adopted a smaller budget for fiscal year 2027. In July, management asked the board to approve a $40 million line of credit, presenting it as a way to manage ordinary cash-flow timing, Vallencourt said. The board later learned JTA owed vendors $24.9 million, including $5.5 million more than 120 days overdue.

The authority’s fiscal year 2025 audit also restated the previous year’s financial statements by $18.3 million, Vallencourt said.

His statement raised questions about several contracts and expenses, including nearly $1 million paid to Dream Builders Communication over two years for leadership training, succession planning and executive meetings, with more than half the amount paid without a purchase order. He also questioned a $249,000 payment to Team Pegine in 2025 for a “GEMS Initiative,” a $730,000 contract with Gannett Fleming TranSystems for an operational development plan, JTA-funded doctoral education for an executive vice president, and executive trips to Germany and Japan while reserves were being used.

Vallencourt also cited a potential conflict of interest in JTA’s CEO search. He said the managing principal of KL2 Connects, the firm hired to conduct the search, was also a paid JTA contractor. JTA’s procurement director confirmed in writing that this presented a “real, apparent or potential conflict of interest,” according to Vallencourt.

He acknowledged that he had been one of Ford’s strongest supporters and said he should have demanded underlying financial records, such as balance sheets and cash-flow statements. Vallencourt said he regretted not providing stronger oversight and would resign if Gov. Ron DeSantis, who appointed him, asked him to do so.

JTA’s financial crisis has brought consequences beyond the boardroom. The agency has laid off nearly 200 workers. In October, Jacksonville City Council unanimously approved access to as much as $30 million in unspent local gas-tax revenue to help pay transportation-related debt. JTA must repay the money by Sept. 30, 2037.

Fitch Ratings downgraded JTA’s issuer rating from AA+ to AA- on Oct. 21, citing weakened financial resilience and assigning a negative outlook. A lower rating can make future borrowing more expensive. Clay County has also voted to end its funding agreement with the authority.

City auditors have told a council oversight committee that JTA’s financial problems may have been building for years. They found that the agency reported no significant budget stress in 2022 despite spending about $4.8 million over budget. JTA ended fiscal year 2025 with a deficit of roughly $18.9 million, before the shortfall grew to about $39 million in fiscal year 2026. Auditors have said their findings do not establish that financial statements were intentionally falsified.

The Florida Attorney General’s Office has subpoenaed JTA records related to contracts, travel, sponsorships and communications involving Ford and other agency leaders. JTA has said it is prepared to cooperate. The City Council’s Financial Audit and Oversight Committee is continuing its investigation.

Ford resigned in July and became CEO of Dallas Area Rapid Transit on Monday. Jacksonville City Council’s Finance Committee voted to subpoena him to testify about JTA’s finances; he is expected to appear before the end of the year.