Suwannee County agrees to fund SVTA $25K

Published 9:51 am Wednesday, December 17, 2014

The Suwannee County Board of County Commissioners voted unanimously to give the Suwannee Valley Transit Authority a one-time monetary boost of $25,000 in light of the agency’s sudden financial crisis. SVTA representatives sought out assistance from the counties they serve – Suwannee, Hamilton, and Columbia – and as of Tuesday night have received funds from Suwannee and Hamilton Counties.

The SVTA provides inexpensive transportation services to customers who don’t have the means or ability to drive themselves, such as low income individuals and families, the elderly, or the disabled, as well as the general public. Earlier this month, they announced that their revenue stream from Medicaid customers had decreased significantly due to Florida legislation reorganizing the distribution of Medicaid funds.

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“They were given conflicting information from the state,” said BOCC Chairman and SVTA board member Jason Bashaw. “They ended up receiving a fraction of the Medicaid funds they thought they would get.”

According to Bashaw, the SVTA is faced with two options: continuing to operate with reduced employees, or beginning a phased shut down.

“They have to cut four or five people to save the other 30,” commented Commissioner Larry Sessions. “That’s something worth looking at. I think we can make this work and continue providing service to these communities.”

Bashaw explained that the SVTA was requesting $17,400 to help keep the company afloat until March 1, 2015, giving the SVTA ideally enough time and money to restructure themselves and their business plan. To continue operating, they would still have to layoff about five people. If the company were to shut down, Suwannee County would have a responsibility, along with the other counties, to help pay off all of the 35 employees’ unemployment costs and other unfunded liabilities, a sum far more than the one-time financial boost. In total, it would cost more than $300,000 to dissolve the company, with Suwannee County paying in 29 percent or their proportionate share in the service.

Commissioner Ricky Gamble proposed that the BOCC give the SVTA $7,600 more than their original asking amount.

“I ask that the board go to $25,000 so the SVTA can go ahead and move forward,” said Gamble. “I don’t want to handicap them, and with $25,000, I don’t anticipate them coming before the board again.”

Commissioner Wesley Wainwright believed that the board should go one step further and help the SVTA beyond monetary assistance.

“We can either prop this thing up for a few more months or plan a phased shutdown,” he said. “I presume the SVTA provides an essential service for some people, and over the years, the county has invested money in it. A qualified person should evaluate their business plan and fix the company and bring it back.”

Sessions said that he had 30 years of experience in the transportation industry and offered to help guide the SVTA and assist them with improving efficiencies. The board agreed to let Sessions work with the company, and unanimously approved of the $25,000 boost.

“Historically, the county has given very little money every year for a great service in return from the SVTA,” said Gamble. “If they can restructure, we can come out on the positive end with a stronger transportation authority.”

Hamilton County Commissioners agreed by a vote of 4-1 Tuesday night to give $14,400, or 24 percent of their pro rata share in the SVTA’s tri-county service agreement, contingent upon Columbia County’s affirmative decision to fund the company as well. Columbia County accounts for 47 percent of SVTA’s service, and will vote on the matter at their County Commission meeting on Thursday night.

Reporter Joyce Marie-Taylor contributed to this story.