CATS audit finds millions in lost fares, security concerns

A new report from the North Carolina Office of the State Auditor (OSA) found the Charlotte Area Transit System (CATS) is losing an estimated $5 million to $6.5 million annually to fare evasion while identifying broader concerns involving security, coordination with law enforcement, and delayed safety investments. 

The report, released Monday by State Auditor Dave Boliek’s office, is a follow-up to a preliminary report issued in September 2025 following the murder of 23-year-old Iryna Zarutska aboard the CATS operated Charlotte’s Lynx Blue Line light rail system. 

Among the findings, auditors say that CATS lacks physical barriers such as gates or turnstiles to deter riders from entering the system without paying and does not have adequate procedures to address fare evasion or collect fines. The report estimates those problems result in between $5 million and $6.5 million in lost revenue each year. 

A CATS analysis in late 2025 found that 45%, plus or minus 5%, of total bus and light rail riders were not paying fares. The estimated rate was 35%, plus or minus 5%, on buses and 60%, plus or minus 5%, on the light rail. Fare evasion citations have also declined, according to the report. There were 4,763 issues in 2023 compared to just 2,018 in 2025, a 39% decrease. 

“The City of Charlotte, CATS, and the Metropolitan Public Transportation Authority need to take decisive action on public transportation security,” said Boliek in a press release. “CATS estimates almost half of all riders aren’t paying for a ticket. Up to $6.5 million may be lost annually to fare evasion, but only $550 in fare evasion fines for the light rail system were collected in State Fiscal Year 2025. The taxpayers of Charlotte pay the bill for CATS, and they’re asked to buy tickets to ride the bus or light rail. Moving forward, CATS and the Metropolitan Public Transportation Authority should implement effective measures to stop fare evasion.” 

CATS told the OSA that the decrease in citations was due to instructions to bus drivers not to enforce fares because of concerns that fare disputes could lead to verbal or physical assaults against operators. 

The report recommends CATS study payment systems used by comparable transit systems, including tap-to-pay technology and increased spot checks. The report also recommends installing gates or turnstiles, particularly at light rail stations. 

The report also found limited interaction between CATS and the Charlotte-Mecklenburg Police Department (CMPD). CATS uses a private contractor for security services across its system, but a 2023 agreement between the city and CMPD established a Metro Transit Unit, but CATS reported that only two CMPD officers have been assigned to the unit. 

At the time of Zarutska’s murder, there was also no direct connection between CMPD’s Real Time Crime Center and CATS surveillance camera systems. CATS told the auditor that the issue was corrected on Oct. 10, 2025. 

Auditors also examined CATS “Exclusion List,” which contains the names and photographs of people banned from its bus and rail systems. As of February 2026, the list contained 175 people. The report found it was unclear what role CMPD plays in determining the length of exclusions or enforcing the bans. 

The auditor pointed to a December 2025, light rail stabbing as evidence of concerns with the system. According to the report, the suspect in that stabbing was already on CATS’ Exclusion List, leading auditors to determine that measures used to enforce the bans “appear to be insufficient.” 

The report recommends that CATS and CMPD agree to assign additional officers to the Metro Transit Unit and work together to monitor light rail stops and surveillance systems to identify and remove banned riders. 

Other issues highlighted in the report include CATS’ use of Department of Defense guidelines, rather than Federal Transit Administration guidance, for its Safety Risk Assessment, as well as millions of dollars in budgeted safety and security funding that went unspent.

“CATS audit finds millions in lost fares, security concerns” was originally published on www.carolinajournal.com.