A new report from the North Carolina Office of the State Auditor (OSA) found significant revenue loss from fare evasion, security gaps, and $1.7 million in upspent safety and security funding at the Charlotte Area Transit System (CATS). 

The Rapid Response Special Report follows a preliminary report after the murder of Iryna Zarutska on a CATS light rail train.

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The report found CATS has consistently struggled to deter and penalize people who ride without tickets. According to the report, CATS estimates it loses between $5 million and $6.5 million each year due to fare evasion. An estimated 45% of bus and light rail riders do not pay to ride -- 35% of bus riders and 60% of light rail riders. 

The report found fare evasion citations dropped from 4,763 in 2023 to 2,018 in 2025. On the light rail system, CATS collected $750 in fare evasion fines in state fiscal year 2024 and $550 in 2025. 

CATS told OSA that citations dropped because bus drivers were instructed not to enforce fares to protect them from altercations. Light rail operators are not responsible for collecting fares.

“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,” State Auditor Dave Boliek said.

Boliek said the City of Charlotte, CATS and the Metropolitan Public Transportation Authority need to take action to address public transportation security and fare evasion.

The report recommends installing gates or turnstiles, particularly at light rail stations, to deter riders without tickets.

Auditors also examined CATS’ “Exclusion List,” which includes the names and photos of people banned from riding CATS buses and light rail. The list is available to Charlotte-Mecklenburg police officers and CATS operators, but the report said it is unclear how those exclusions are enforced.

The report also found only two CMPD officers have been assigned to the Metro Transit Unit.

When examining CATS’ finances, auditors found the City of Charlotte’s fiscal year 2025 budget provided $7.6 million for safety and security projects through fiscal year 2029.

CATS had $2.2 million budgeted for safety and security equipment in fiscal year 2025 but spent $470,242, leaving $1.7 million unspent.

CATS told auditors the money wasn’t fully spent because of several factors, including the complexity of multi-year projects, the timing of capital expenses and projects that were still underway.

The State Auditor’s Office made several recommendations for CATS to take. In its response included in the report, the City of Charlotte said a new fare enforcement ambassador team with more than 60 uniformed personnel will launch in October.