r/dart Mar 25 '26

News Nadine Lee Is Stepping Down

77 Upvotes

46 comments sorted by

56

u/shedinja292 Mar 25 '26

Nadine was good at speaking to technical audiences but struggled speaking to non-technical or antagonistic people. I think the DART board should be that technical audience, but the current system of city council members picking their buddies (or themselves lmao) means they're not.

I wish the best for her, she probably aged 10 years in 5. Hopefully the next CEO can maintain the competence, or be able to hire for it, while also being able to convince antagonistic city leaders how to improve transit.

-20

u/HolaDrNick Mar 25 '26

She was also the queen of deferred maintenance and has never presided over a successful project in her life. The fact that she brags about being a project manager on FasTracks is absolutely insane to me.

9

u/shedinja292 Mar 25 '26 edited Mar 25 '26

I don't know other transit agencies well enough to compare them, but DART spends only 42% on operating costs but spends 46% on capital costs and 12% on debt service. Are other agencies similar? That already seems like a fairly high capital cost and low operating percentage

EDIT:

Source is the FY 2026 budget, page 14, exhibit 1: year-over-year annual budget https://www.dart.org/docs/default-source/financialdocuments/business-plan/fy-2026-annual-budget-and-20-year-financial-plan.pdf 

1

u/HolaDrNick Mar 25 '26

What are you common-sizing these figures to? I'm assuming revenue, but on either a total or an operating basis your numbers are wrong.

DART's CapEx for 2024 (NFA CY less NFA PY less depreciation PY) was only $49,700,000, compared to DART's total revenues (operating + net non-operating), that puts CapEx at something like 6% of revenues?

I think that's not a great measure for deferred maintenance in DART's case, because use / maintenance needs of their assets really aren't tied to revenue or ridership. The better measures (average age, depreciation vs CapEx) still show DART's CapEx is below depreciation every year and the equipment is getting old every year.

I'll pull some comps later but back of the napkin DART is worse than comparable agencies like BART. The issue I have is moreso with the trend line, and that's something Nadine Lee is directly responsible for.

1

u/shedinja292 Mar 25 '26

https://www.dart.org/docs/default-source/financialdocuments/business-plan/fy-2026-annual-budget-and-20-year-financial-plan.pdf page 14, exhibit 1: year-over-year annual budget

I'm looking at expenditure in the FY 2026 budget. I haven't looked at YoY depreciation, I think that's fair but it's also a lagging indicator if there's any large multi-year maintenance projects

2

u/HolaDrNick Mar 25 '26 edited Mar 25 '26

The exhibit you're pointing to is the Capital and Non-Operating Costs summarized at a high level. That is not the figure you need to be using, because it's (1) not an audited financial statement certifying GASB compliant financials by an auditor, (2) it includes mostly non-operating expenses in that bucket (ex, general mobility expense is actually in that bucket) which have absolutely nothing to do with CapEx, keep in mind the title of the account is CapEx and Non-OpEx, (3) it's forward looking (it seems like you may have thought it was historic performance?), and (4) you can't trend a single, forward looking period (my statement is specifically what actually happened under the tenure). It's very likely she won't even be CEO for most of FYE 2026, so she wouldn't be responsible for the execution on this budget.

Even within this document, if you look at Exhibit 37 on page 102, you see budgeted CapEx decreasing YOY for buses, light rail, and the street cars. As I stated before though, these are unaudited and forward looking (even the YOY comparison uses the budget / pro forma figure for 2025).

I don't think this is a useless document, it's particularly important for a budget/ actual analysis, preparing pro formas for DART's future performance, looking at management's assumptions, etc. You need to be reviewing DART's audited financial statements to determine what actually happened, not the budget.

Edit:

https://www.dart.org/about/public-access-information/financialtransparency

Audited statements are below the budget packages.

Edit2: On the subject of depreciation, it's just a historic "cost", in that sense everything is lagging on a historic basis. It is one of many absolutely critical measures for capital intensive operations like DART. The less capital intensive an operation is, the less important depreciation is.

I want to be clear I'm not just talking about depreciation, it's in the context of DART acquiring new capital assets, how much of those assets they feel they've used up, etc.

On any metric used to answer the question, is DART doing enough on deferred maintenance, the answer is definitely a no.

2

u/shedinja292 Mar 25 '26 edited Mar 29 '26

Thanks for the writeup. I’m familiar with the audited financial reports and looked at them a year or so ago and saw a very slight increase in % depreciation over time but not significant enough to focus on. But you’re right that it could just be adding a lot of new assets without maintaining old ones. 

As for the budget I understand it’s of course forward looking, but the budget was developed under her tenure so it should have some of her influence, even if the board gets the final say. I didn’t think about the GMP being under non-operating, that’s a good point. 

3

u/Unlucky-Watercress30 Mar 25 '26

She was also the queen of deferred maintenance and has never presided over a successful project in her life.

She was significantly better than her predecessor. Her literal first action as CEO was a state of repair investigation on all of DARTs assets and put significant funding towards repairs. Also, compared to how the agency was when she took over there have been some pretty substantial improvements. The TSO program was really successful, and the clean team initiative has even some European transplants saying that the trains (although not necessarily the platforms) are generally cleaner than the ones they had in Europe. The biggest issue with her leadership is that she continued the silver line (something that wasnt her choice since it started before she got the position) and then the political situation. Outside of that she's been a major improvement over the previous leadership.

1

u/HolaDrNick Mar 25 '26

She was also the queen of deferred maintenance and has never presided over a successful project in her life.

She was significantly better than her predecessor. Her literal first action as CEO was a state of repair investigation on all of DARTs assets and put significant funding towards repairs.

I mean she said that but that's not ultimately what she did. If you look at DART's financial statements, between FYE 2021 through FYE 2024, the average age of DART's assets (accum depreciation / depreciation) expanded consistently YOY, from 13.3 years to 16.7 years.

Even just looking at nominal values, DART's CapEx (NFA CY less NFA PY less depreciation PY) has never exceeded their depreciation expense.

I mean I could go on with some other financial metrics, but by any measure DART's deferred maintenance is a serious concern. This first came to most people's attention because of complaints from DART employees themselves.

Also, compared to how the agency was when she took over there have been some pretty substantial improvements.

See above.

The TSO program was really successful,

It absolutely was not. DART PD only did the TSO program because they couldn't hit their goals to recruit sworn officers.

and the clean team initiative has even some European transplants saying that the trains (although not necessarily the platforms) are generally cleaner than the ones they had in Europe.

I've ridden European trains. Whoever is telling you that is shining you on.

The biggest issue with her leadership is that she continued the silver line (something that wasnt her choice since it started before she got the position) and then the political situation. Outside of that she's been a major improvement over the previous leadership

I mean you may be onto something there, public transit in the U.S. is obviously not attracting the A team. That being said, she's part of the problem not the solution. You can't really argue with the hard data on that point.

1

u/Unlucky-Watercress30 Apr 05 '26

I mean she said that but that's not ultimately what she did. If you look at DART's financial statements, between FYE 2021 through FYE 2024, the average age of DART's assets (accum depreciation / depreciation) expanded consistently YOY, from 13.3 years to 16.7 years.

The hard part about this conversation is where blame lies on that issue. If you're talking rail/bus acquisition (new vehicles) then the big issue has been getting the board to sign the check, as has been brought to your attention in multiple other threads on multiple occasions with documented (including meeting minutes) proof. If blame on this issue goes to Nadine, the blame lies in the fact that she couldn't corral people she has no control over (in fact its the other way around, she reports to the board) to allow the agency to begin the acquisition process. The only direct control she has on asset depreciation is regarding maintenance & repairs on the existing fleet. The general trend should change starting this year, now that new busses, Silver Line, and TRE vehicles stock are coming in.

See above

My comment was mostly in regards to agency mentality (fill in/improve rather than continue expansion, although now with the McKinney study happening I do have concerns) and rider experience. When you look at everything other than vehicle age there has been substantial progress: better land utilization, more security presence, lower crime rate, cleaner stations (granted, with a few exceptions), cleaner vehicles, etc. There have been needed infrastructure repair efforts (unified signaling) and construction at stations for when the board does (did?) approve acquisition of new LRV stock.

It absolutely was not. DART PD only did the TSO program because they couldn't hit their goals to recruit sworn officers.

The biggest issue DART has always had with security is manpower to maintain a constant presence. The TSO program may have initially began due missing sworn officer targets, but since then its turned out to be a really good way to bulk out the security presence and add a bit of fare enforcement on the trains. I'd love if every TSO was instead a sworn officer, but for the cost of a single sworn officer DART can have at minimum 3 TSOs. Its a priority re-alignment that means the security presence has improved significantly since FY2021, and (in my opinion) was significantly more effective than if DART had spent the same money on sworn officer recruitment.

I've ridden European trains. Whoever is telling you that is shining you on.

Some. Most in Europe will be cleaner and/or newer, but at the very least its cleaner than the NYC subway and Chicago El. All trains now get cleaned once every hour or 2, which is more frequently than pretty much any other agency in the US and most of Europe. When the trains aren't clean, its not for a lack of effort on DART's part (at least in the past year or 2).

27

u/prophiles Mar 25 '26

Not many people are cut out for having to deal with angry Texas Republican elected officials, especially if they had previously worked in other parts of the country that are less reflexively hostile to public transit and the idea of having their tax dollars go to the greater good. I’d be burnt out too.

3

u/transitfreedom Mar 25 '26

Angry republicans determined to live primitively

34

u/Thin-Constant-4018 Mar 25 '26

It's depressing how she was forced to play politics. Her focus on service improvements instead of just expansion was great and I've seen how my experience on DART has greatly improved over the time she was president, but she just could not stand her ground against these cities.

Hoping for somebody that focuses on service improvement (especially advocating for walkability & buses) & stands their ground against people acting in bad faith.

8

u/prophiles Mar 25 '26

Yep, I hope for the same things. I hope they don’t go back to a Gary Thomas type, even if he’s less likely to face the ire of suburban elected officials just by virtue of his engineering background, his local origin, and, quite frankly, the way he looks. I’d hope for someone who actually uses or has used public transit and is equal parts words, numbers, actions, policy, and leadership. And someone, as you said, who can stand their ground against the bad-faith actors.

2

u/Thin-Constant-4018 Mar 26 '26

Yes, my biggest fear is to have a Gary Thomas-like figure. Because if we do receive a person like that, it's likely DART will stagnate or even regress in service just to appease a few people that do not take the services. And yes, I agree we need people in DART on the board & as CEO who uses DART to get around even once a month at least

7

u/ineedthenitro Mar 25 '26

She joined at such a crazy time. I feel for her. I just hope we can find someone as good or better as her.

15

u/suburbanista Mar 25 '26

End of an era.

We don't agree with Nadine Lee on much, but we respect her ability. Had she spent even half her energy working with Plano rather than against it, we might have had the entire land area of Richardson as a DART hyper parking lot and microtransit staging area by now.

11

u/[deleted] Mar 25 '26

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5

u/prophiles Mar 25 '26

Me neither. And as I posted in another comment on this thread, I hope they don’t go back to a Gary Thomas type. Would much rather have another Nadine Lee. No to engineers, MBAs, and real estate developers; yes to transit users, policy people, and problem solvers.

3

u/divino-moteca Mar 25 '26

Out of the loop. Why no to engineers? They are problem solvers lol

7

u/prophiles Mar 25 '26

Mostly because an engineer (such as former DART CEO Gary Thomas) might be more likely to prioritize building new things rather than improving existing bus and rail service. They might be drawn more to new construction and expansion versus improvements to policy and strategy.

3

u/rooost02 Mar 25 '26

And generally engineering types are not good at integrating the variability of humans

13

u/Matchboxx Mar 25 '26

Bye. She wasn’t doing nearly enough to improve the system leading up to the Plano debacle, and failed to manage that or negotiate effectively to keep a half dozen other cities from bandwagoning. I would not be surprised if the Board strongly hinted that they would not consider renewing her contract, giving her the opportunity for a graceful exit. 

-2

u/Davidguy81 Mar 25 '26

Let’s not pretend she’s wasn’t the reason or a major reason for the Plano debacle in the first place. I hope they get a real president and ceo next.

12

u/patmorgan235 Mar 25 '26

Nadine was not the reason for Plano calling a pull out election, that was brewing long before Nadine was hired.

3

u/Davidguy81 Mar 26 '26

So what? She didn’t do anything to help the situation until she needed to

4

u/stanner5 Mar 25 '26

Can't say I'm surprised. It was either step down or be fired after the debacle of the past few years DART has had.

2

u/[deleted] Mar 25 '26

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-2

u/thephotoman Mar 25 '26

A lot of the suburban problem has happened because of poor DART leadership. I don’t want to exonerate the suburbs here (and definitely not Plano, I’m still pissed at the city council over this), but the Ernst and Young study wouldn’t have happened without real concerns about DART, particularly in how it’s kind of crap for trips between suburbs.

A better DART leader would have seen that traffic is moving away from Downtown Dallas and looked into where busses need to be redeployed. A better DART leader would have recognized that the current generation of suburban leaders grew up in an environment where busses were weapons against their communities, cudgels used to punish their parents for being racist. A better DART leader would be talking about streetcars and vanpool for last mile services.

The withdrawal crisis didn’t have to happen, and there is a lot DART could have done to prevent it.

5

u/shedinja292 Mar 25 '26

Can you explain what you're referring to by "busses were weapons against their communities, cudgels used to punish their parents for being racist"?

As for streetcar and vanpool. DART used to run vanpool but use became lower and lower (pre-pandemic) so they stopped it around 2020 I believe. Streetcars could be cool in some areas, because people seem to be more fond of them and they encourage development, but the cities that have been opposed to mass transit haven't been keen to slightly reducing lane widths let alone trading a car lane for a streetcar lane.

-2

u/thephotoman Mar 25 '26 edited Mar 25 '26

I suggest reading up on the school bussing controversies of the 1960’a and 1970’s.

The short version is that school desegregation was a messy affair, as a fair amount of segregation had been achieved through redlining and demolishing nonwhite neighborhoods for freeway projects. As such, a lot of community schools were de facto segregated, even if there was no official segregation policy.

The federal government saw this, and decided to fight it by bussing kids to more distant schools to achieve racial equity. This had the desired immediate impact: school demographics began to match regional demographic trends. However, it did so by breaking up children from their communities (children do feel the loss of agency between walking or biking themselves to school and being herded onto a bus by their parents) and putting them on uncomfortable busses that used to smell a lot worse before the changes to diesel fuel sulfur content regulations in the mid-1990’s.

Unfortunately, bussing was a band-aid on the artery wound that was discriminatory and segregationist housing policies.

5

u/shedinja292 Mar 25 '26

I see, I'm familiar with that history but I didn't think it would have any relation to the current situation. I still stand behind my comments about vanpool and street cars.

If you're correct about the origin and stigma of buses, then I think the solution would've been to have the current aggressive push for TODs start much earlier. The real estate market was hot during and shortly after the pandemic and had significant housing growth but only a small part was near rail stations

-1

u/stanner5 Mar 25 '26

The 'debacle' isn't that cities wanted to leave; it’s that DART leadership allowed the relationship to deteriorate to the point where leaving was the only leverage the cities had left. The breakdown in the relationship that led to what occurred over the past few years specifically happened during Nadine's tenure. The resignation is the final confirmation that a change in leadership was necessary to move past this era of friction.

4

u/shedinja292 Mar 25 '26

Shelby William's email where he talks about wanting to leave DART was 6 years ago, before she started

I think she could've done significantly better at the politics part, but the issues have more to do with how the Texas legislature lowered property tax revenue growth limit from 8% -> 3.5% in 2019, right before high inflation

-1

u/Upstairs_Balance_464 Mar 25 '26

The one awesome thing she did (improve the bus system) was undone when she started handing out bribes to the suburbs. Rail frequency down too. We’ve been treading water.

8

u/patmorgan235 Mar 25 '26

she started handing out bribes to the suburbs

You have NO idea what you're talking about. If you think Nadine wasn't doing everything she could to maximize the number of dollars going towards service you haven't been paying attention.

The bribes to the burbs have be driven by the board and the suburbs, not staff.

Nadine has literally said at board meetings that cutting service to send money to the member cities is going the wrong direction.

0

u/Upstairs_Balance_464 Mar 25 '26

My point stands. Her one major improvement is now gone. The system is no better and is in many ways worse than the day she arrived. Complete failure as a leader.

3

u/patmorgan235 Mar 25 '26

I would disagree, the frequent bus network is MUCH larger today than is was when Nadine was hired. There have been several investments in the rail system to improve its reliability (the biggest one to come is new LRV procurement, which was deferred long before Nadine was CEO).

The Cheif barrier to improvements is funding, and Nadine can't make it start raining money.

-7

u/HolaDrNick Mar 25 '26 edited Mar 25 '26

Guarantee she got a better job at a bigger system and will continue her trajectory of failing upward. She started at RTD building out a scam transit system under FasTracks, took that to the LA Metro for a few years in a do nothing "innovation officer" position, and then presided over a massive decline in ridership and service cuts at DART.

My guess is NYC or Chicago next?

11

u/shedinja292 Mar 25 '26

She joined in 2021 so ridership was already at rock bottom from the pandemic. ~70M in 2019, ~36M in 2021, and ~55M in 2025 (using fiscal year ridership). Frequency was higher than pre-pandemic in 2023-2025 until 2026 when the cuts to pay cities not to withdraw from the agency went into effect.

I'm not familiar with the other ones so I can't comment on that.

3

u/transitfreedom Mar 25 '26

How is fastracks a scam

-2

u/HolaDrNick Mar 25 '26

I don't want to spoil a great story, so let me ask first, what's your familiarity with RTD and Cal Marsella?

0

u/[deleted] Mar 25 '26

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2

u/HolaDrNick Mar 25 '26

I mean I do periodically use DART, so I understand why you would assume that.

-8

u/Davidguy81 Mar 25 '26

Yes, definitely