Disabling Transit - Chatham, CAT spat continues over funding, leadership

May 9, 2026 – Chatham Area Transit officials warned Chatham County commissioners during a May 6 budget workshop that the transit agency is facing an $8.4 million operating deficit for 2027 fiscal year, while county leaders pushed CAT to seek more financial support from the City of Savannah, the Savannah Convention Center and tourism-related funding sources before asking the county for a millage increase.

The workshop was prompted by CAT’s March 24 request to raise its transit millage rate to 1.2 mills beginning July 1, up from the current 0.94 mills approved by commissioners last year — a rate lower than what CAT requested.

Watch the May 6 Workshop – Facebook

CAT CEO Stephanie Cutter told commissioners the agency is struggling with rising operating costs, the expiration of $3.1 million in American Rescue Plan Act funding, ferry system revenue shortfalls and growing capital match requirements tied to federal transit grants. According to Cutter, CAT projects $32.2 million in revenues against $40.6 million in expenses for the 2027 fiscal year.

Cutter said CAT plans to freeze nonessential positions, seek community partnerships and pursue additional revenue opportunities, including advertising, sponsorships and naming rights for a third Savannah Belles ferry vessel expected later this year.

The budget challenges come amid an ongoing dispute over CAT’s governance structure. Last year, state legislation restructured the CAT board and eliminated the Chatham County Commission’s majority control over appointments. The county subsequently approved an amendment seeking to abolish the new 11-member board and reinstate the former nine-member board, which had a majority of county-appointed members.

However, a Chatham County Superior Court judge blocked the county’s attempt to restore the previous board structure, ruling that the new board could be “irreparably harmed” by the commission’s actions and that maintaining stable governance was in the public interest while litigation proceeds. The county continues challenging the state law in an appeal, while CAT officials argue the commission’s actions and funding cuts threaten transit operations.

CAT’s ferry system has also been plagued by mechanical failures and repair delays that have at times left few or no vessels in operation. According to a recent internal report, the agency’s newer hybrid ferries suffered defective propulsion motor bearings and generator failures, while older vessels have been sidelined by hydraulic problems, leaking equipment and lengthy repair waits. Officials said the specialized hybrid propulsion systems require manufacturer technicians for repairs, limiting CAT’s ability to quickly respond to breakdowns and contributing to service disruptions.

At the May 6 workshop, Cutter said two of CAT’s six ferries were not undergoing repairs.

Much of the workshop focused on the ferry system and whether county taxpayers should continue subsidizing operations that commissioners argued primarily benefit downtown tourism and the Savannah Convention Center.

County Manager Michael Kaigler, in an April 13 letter responding to CAT’s millage request, wrote that the county reduced CAT’s millage rate in 2025 because “tax dollars were being used to offset revenue shortfalls in the ferry program.” He added that the ferries “primarily benefit tourists and convention center traffic” and provide little benefit to local taxpayers.

Kaigler’s letter also stated that county officials had not received updates on how the ferry system is currently funded after CAT previously indicated the ferry program was no longer supported through Savannah Area Mobility Management Inc., or SAMMI, and hotel-motel tax revenues.

Commissioner Dean Kicklighter said county officials were originally told ferry operations would be supported through tourism-related revenues and convention center activity, not local property taxes.

“We should not ever hear about a ferry because that wasn’t what we were supposed to do with the original intent,” Kicklighter said during the workshop.

Kicklighter urged CAT to pressure the city of Savannah and tourism stakeholders to fully fund ferry operations before seeking more county money.

“They don’t pay, there won’t be a service,” he said. “Shut it down.”

Commissioners also raised concerns about CAT’s service agreements with Garden City and Port Wentworth, questioning whether providing transit service outside the county transit district aligns with the original intent of CAT’s governing legislation. Cutter said both municipalities pay for contracted service and that federal transit officials encourage regional transportation access.

The workshop came after the county’s recent audit of CAT’s paratransit program. The audit, issued April 21, concluded that CAT’s controls and reporting procedures “need improvement” and found significant deficiencies in reporting, cost allocation and operational oversight.

According to the audit, paratransit program costs increased 37% from $4.8 million in FY2022 to $6.55 million in FY2025, while ridership increased only about 3.7%. The audit estimated the average paratransit trip cost at roughly $100 per ride.

Auditors found CAT failed to consistently provide timely and complete service reports and that operational data, including complaints, vehicle tracking information and fueling records, was incomplete or not separated between fixed-route and paratransit services.

The audit also found CAT had not periodically reviewed or updated the methodology used to allocate shared operating expenses, increasing the risk that the county subsidized more than its share of agencywide costs.

CAT agreed with the audit findings and said it has begun implementing a new reporting system and formal review procedures following the purchase of updated software in October 2025.

CAT officials said they plan to continue discussions with county leaders as the budget process moves forward.

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