Charlotte’s troubled transit system is facing another blistering review after state investigators uncovered major security, fare enforcement and spending problems. The findings come despite millions spent on security improvements and a $3.4 million campaign aimed at rebuilding public confidence.
The North Carolina Office of the State Auditor released its new report Aug. 17. It follows an earlier investigation launched after the 2025 killing of Iryna Zarutska aboard the Blue Line.
Investigators found CATS still lacks physical barriers, including gates or turnstiles, to prevent riders from entering without tickets.
That problem appears substantial.
CATS estimated about 45% of bus and light rail riders were not paying fares in a December analysis. Light rail alone had an estimated nonpayment rate of 60%.
Consequently, CATS estimates fare evasion costs the system between $5 million and $6.5 million annually.
Fare-evasion citations also dropped 57% between 2023 and 2025. CATS collected only $550 in light-rail fare fines during fiscal 2025.
Auditor Raises Concerns About Police Presence
The report also found limited coordination between CATS and Charlotte-Mecklenburg Police.
Only two CMPD officers were assigned to CATS’ Metro Transit Unit, according to information reviewed by auditors.
Additionally, CMPD’s Real Time Crime Center was not directly connected to CATS surveillance cameras when Zarutska was killed. CATS says that connection was completed in October 2025.
Auditors also questioned CATS’ enforcement of its 175-person Exclusion List.
The suspect in another December 2025 light rail stabbing was already banned from CATS. Auditors concluded existing measures appeared insufficient to enforce those bans.
Millions in Safety Funding Went Unspent
Investigators also examined CATS’ planned spending on security equipment.
CATS budgeted approximately $2.23 million for safety and security equipment during fiscal 2025.
However, the agency spent only about $470,000, or 21% of the budgeted amount. Approximately $1.76 million remained unspent.
CATS attributed the delays to project complexity, procurement timelines and unfinished projects.
The findings follow a separate federal audit released earlier this year.
That investigation identified 18 areas of noncompliance and found assaults on CATS employees occurred at five times the national average. Crimes against passengers occurred at three times the national average.
Charlotte Says Safety Has Improved
City officials say the latest state report largely examines conditions before several major improvements took effect.
Charlotte says its transit security contract grew from $5.8 million in fiscal 2022 to $23.1 million for fiscal 2027. Contracted security staffing increased from approximately 110 to 262 people.
The city also reported Blue Line crime fell approximately 69% during early 2026 compared with the same period last year. Bus-related assaults declined about 67%.
CATS plans to launch more than 60 uniformed fare enforcement ambassadors in October. It is also moving toward contactless fare payments and additional security technology.
Meanwhile, Charlotte approved a $3.4 million marketing and communications contract last December to rebuild confidence in CATS. That decision followed another stabbing near the light rail system.
The new audit adds another layer of scrutiny as Charlotte prepares for a massive expansion of its regional transit network.
For city leaders, the challenge now extends beyond convincing residents that CATS is safe. They must demonstrate that new spending and security measures are producing lasting results.
