Andrea Bernstein

A credit agency stopped short of downgrading the MTA’s debt but cast doubt on Governor Andrew Cuomo’s assurances that the state budget will compensate the MTA for a loss of revenue caused by a cut to the authority’s tax.

Moody's Investors Service isn't quite buying New York Governor Andrew Cuomo's assurances that the state budget will compensate the New York MTA for a loss of revenue caused by a cut to the MTA tax.

Cuomo has promised the MTA will be reimbursed "dollar for dollar" by general funds from the state budget. But Moody's says that the $212 million in 2012 and $310 million in years after won't be so easy to find.

"The compensatory revenues would be subject to appropriation and are uncertain as the state still has to close a $1.7 billion fiscal 2013 budget gap," Moody's wrote in a just-released report.

The agency did not downgrade MTA debt, but it did warn that "failure to restore the lost revenue may put negative pressure on the MTA's transportation revenue bonds."

The MTA wants to borrow $7 billion for capital projects like the Second Avenue Subway and the East Side Access project, which will connect the Long Island Rail Road to Grand Central Terminal.

Any debt downgrade would make buying an MTA bond somewhat riskier -- and the authority would have to pay a higher interest rate to borrow the money. Earlier this year, the smallest of the three major bond ratings agency downgraded the authority's debt, but at the time the authority said its credit remained "fundamentally secure." (See TN's coverage here.)

No response from the MTA to the Moody's report.

LIRR train (photo by Adam E. Moreira via Wikimedia Commons)

The NY MTA will pilot real-time train information on the Long Island Rail Road, the nation's largest commuter rail system.

Riders on the Port Jefferson line will be able to find where a train actually is (not when it's scheduled to arrive) on their mobile devices or desktop computers through the mta.info website.

This GPS system one-ups another real time pilot program for bus riders in Brooklyn. The LIRR plan will tell commuters, in minutes, how long until the next train arrives. The bus system on the B63 doesn't give time estimates just distance or number of stops. Boston, San Francisco, San Diego, Portland and other transit systems rolled out real time programs over the past several years.

The American Public Transit Association credits real-time information as one of the reasons transit ridership bumped up this year.

The MTA had promised to bring real time transit information to all Staten Island buses by the end of this year.  It now says the service will be up and running sometime next month.

Transit tax benefit programs will scale back in 2012 (Photo by (cc) Flickr user Carl MiKoy)

Senator Charles Schumer (D-NY) says, for now, transit riders should expect a tax benefit they've been using to die at the end of the year.

For the past several years, transit riders have been able to deduct up to $230 a month pre-tax to pay for commuting costs. That matches what motorists have been able to deduct for parking. But the transit deduction will revert to $125 as of January 1, Schumer's office says.

"Unfortunately, the Senate Republican Leadership refused to negotiate any tax extenders, including the mass transit benefit, energy efficient homes credits, and college tuition deductibility. We are going to fight hard to extend these vital middle-class tax breaks in January and I am hopeful we will be able to get it done," Senator Schumer said in a statement.

Our Todd Zwillich cautions that anything can happen in Washington's frenzy to pull together a deal so lawmakers can go home for the holidays. He'll be following the negotiations -- and we'll keep you updated.

There will be more cars out on the roads this week than any time during the year, motorists on the Whitestone Expressway, the Hutchinson Parkway, and the Pulaski Skyway will spend triple the time on the road that they normally would, according to a new report. 

In 2011, straphangers were beset by fare hikes, rats, the loss of garbage cans and a full-on closure because of Tropical Storm Irene.   
But none of those events, according to subway advocacy group the Straphangers Campaign, was the No. 1 horrible thing that happened to transit this year.

Mitt Romney in Hudson, New Hampshire (photo: WNYC/Anna Sale)

Mitt Romney says he doesn't like borrowing, but he'd do it for infrastructure. Speaking at a town hall meeting in Hudson, New Hampshire this week, Romney said: "You have to prioritize those things which are most important to you and infrastructure and having good roads and bridges and rail lines and air traffic lines and so forth are essential for a strong economy. I’m willing to invest in those things and even borrow in circumstances where there’s going to be a revenue stream that pays it back."  (Full transcript at end of post.)

Answering a question from voter "Ken from Nashua," the former Massachusetts Governor touted his record doubling spending in that state for bridge repair from $100 million a year to $200 million a year.

"I don't like borrowing, if it's just paying every day's expenses and then kicking on the borrowing to our kids. But if I'm willing to pay it back with a particular stream of revenue, why, that's something I'll do."

Romney mentioned tolls as one possible revenue stream. "I know that's not real popular but it's more popular than a sales tax or an income tax."

The remarks are consistent with the portrait Matt Dellinger drew of Romney earlier this week, in his piece: Mitt Romney: Metro-Friendly Moderate?

Huge thanks to reporter Anna Sale of our sister site, It'sAFreeCountry.org, for passing along the tape.

You can listen to the full remarks here:

Ken from Nashua: Through my work, I travel the U.S. roads highways and bridges and they are definitely in need of attention. However, the country has staggering debt and we need to reduce spending and make that a major priority.

As president, if you are faced with fixing a problem by spending on one hand and spending reduction on the other, how will you address our nation’s infrastructure?

Romney: Well let’s look at the highway setting to begin with. I’ll tell you what we did. When I came in as the governor of my state, I found out that we had 550 structurally deficient bridges in Massachusetts.  If any of you drive down there, I’ll give you a list.

The good news is they weren’t’ ready to fall down but I knew that at some point the bridges would have a load limit changed where trucks with a heavy load limit wouldn’t be able to go over them and that would affect our commerce and could affect jobs.

And so I said look we got to go from spending what we had been spending, $100 million a year on bridge repair and move it to $200 million a year.

One of the things you have to do is prioritize those things which are most important to you and infrastructure and having good roads and bridges and rail lines and so forth and air traffic lines are essential for a strong economy. I’m willing to invest in those things and even borrow in circumstances where there’s going to be a revenue stream that pays it back

I don’t like borrowing, if its just paying every day expenses and then kicking on the borrowing to our kids here but if I’m willing to pay back with a particular stream of revenue why, that’s something I’ll do.

Here in New Hampshire you have tolls and I know that’s not real popular -- but more popular than a sales tax than an income taxi and so you have a dedicated stream of revenue, and so the state is able to build a highway or to repair bridges and the revenue stream you have pays it back

With regards to the the federal highway system we’re going to have to follow the same model.

We’re going to have to make an investment, to repair our bridges, repair our roads and have a specific dedicated revenue stream paying back those costs.

We can’t have a highway system that makes it almost impossible for our commerce to occur on an effective basis.   There are lots of idea about how to do that -- do we have a bonding program of some kind that pays back, do we use tolls do we use some other method? I will be open to the kinds of ideas that come forward. But I believe we do have to invest in our basic infrastructure.

Chicago Mayor Rahm Emanuel is joined by Transportation Secretary Ray LaHood to Announce Tiger Grants (photo: Chicago Mayor's Office)

In a conference call Thursday announcing transportation grants, U.S. Transportation Secretary Ray LaHood crowed that “In the Chicago area, $10 million will go to bike share, the mayor has a vision to create the largest bike share program in the country, and the other $10 million in Chicago goes to the Blue Line.”

But, um....that's not exactly right.  Chicago's bike share will be the second biggest. Which, we guess, is appropriate for the second city.

According to its request for proposals, Chicago will start with 3000 bikes, and expand to 5000.  New York is starting with 10,000.

A LaHood spokesman, Justin Nisly, clarifies that the Secretary meant Mayor Rahm Emanuel wants to build the biggest bike share.

And, yes Emanuel has a big place in Ray LaHood's heart (Senator Chuck Schumer (D-NY) credits Emanuel, the former White House Chief of Staff, with LaHood's appointment.)

But does Emanuel want the biggest bike share more than New York Mayor Michael Bloomberg wants the biggest bike share?  (Bloomberg is also not exactly a shrinking violet.)

No word from either Chicago or New York officials on that one.

We'll say this for Chicago.   New York had about a year and a half between the announcement of the bike share and the projected launch date. Chicago?  Half that time.  So that city may have the fastest bike share to get up and running.

John Mica, chair of the House T&I Committee

The gulf between the worldviews of  supporters and opponents of high-speed rail was on full display today as the House Transportation and Infrastructure Committee grilled federal officials for the second time in two weeks on the merits of the California high speed rail program.

To opponents, California's high-speed rail is a costly boondoggle that will serve no one but farmers. To supporters, it's the only way to get ready for an expected population boom and lay the tracks for a more prosperous future.

"The entire high-speed rail program has been a bait and switch operation," said T&I Chair John Mica (R-FL)  -- repeating his argument (refuted by federal officials) that none of the programs would deliver trains close to 220 mph.

"The entire California program is imploding," Mica added.

But Rep. Corrine Brown (D-also FL) was ready with a strong retort: "Here we go again. The Republicans didn’t vote for high speed rail funding, they cut future funding -- yet we’re holding our second full committee hearing on the subject in two weeks.  We’re ending a year of work and still there’s no surface transportation bill, no FAA bill, no water resources bill."

"This committee is fiddling while the United States transportation infrastructure  is burning," Brown added. "If the current leadership of this committee" had been in charge when the interstate highway system was proposed, "we would be a third world country."

But nevertheless, Republicans on the committee expressed disgust that the first portion of the rail would be build in a "cow patch," in central California that won't be connected to either the high-population areas of San Francisco or Los Angeles, that it is now projected to cost more than twice what was originally discussed, and that ridership may not meet projections.

"It's like saying I didn't like dial up internet, so I'm not going to like broadband," scoffed Fresno Mayor Ashley Swearengin, a Republican, at the concept that current passenger rail ridership could predict high speed rail ridership.

"The freeway is 23 lanes wide in Orange County," lamented Rep. Loretta Sanchez (D-CA).  "You can see it from the moon. We need some alternatives."

But opponents had the most airtime, as a sharp exchange between freshman Maryland Republican Andy Harris and Administrator Szabo illustrated.

Harris, literally looking down at Szabo, repeatedly peppered him with questions, and often interrupted his answers.  "You're asking the people in the first congressional district of Maryland to pay for this," Harris said.

"There's a value in it to the people of the nation, " Szabo began. "Look at delays at San Francisco and Los Angeles aiports --"

But Szabo got no further as Harris spoke over him.  "The people in my district don't go to San Francisco or Los Angeles."

Szabo tried again. "It affects the timing --" before being cut off again.

Szabo also tried to explain why the first section is in the Central Valley (it's because that part is ready to go, and funding -- under the stimulus bill -- must be spent sooner rather than later) rather than in the San Francisco or L.A. areas but got lost in bureaocratese. "This comes down to congressional mandates under PRIA and ARRA, the ability to shift the dollars is not there, it is not there."

Asked about the hearings while he was holding a separate conference call on TIGER grants, U.S. Transportation Secretary Ray LaHood, who was on the hot seat himself last week, said:

"Well, given the fact that I was in Philadelphia and now I’m in Cincinnati I have no idea what took place. I can tell you that as a result of the hearing that I went to, which was about 10 days ago before the Transportation Committee, I made a very strong case to the committee and to the Congress."

He continued: "High-speed rail will continue to be a priority for President Obama’s administration. The President and the Vice President have a very, very big broad view that high-speed rail is what the American people want, people in the states that where we’ve funded, in California and Illinois and along the Northeast Corridor, have been working on high-speed rail for at least a decade or more. Certainly in California they’ve been working on it for 15 years. And we are not going to be dissuaded by a few detractors who are too short-sighted to see the value of high-speed rail. We’ve made more than $10 billion worth of investments, this is the president’s vision, high-speed rail is coming to America, it’s what the American people want, and we will continue to press ahead with it."

Here's the release -- a breakdown is coming:

Secretary LaHood Announces Funding for 46 Innovative Transportation Projects Through Third Round of Popular TIGER Program

Secretary LaHood Announces Funding for 46 Innovative Transportation Projects Through Third Round of Popular TIGER Program
Job-Creating Grants Announced Months Ahead of Schedule as Part of the Obama Administration’s “We Can’t Wait” Initiative

U.S. Transportation Secretary Ray LaHood announced today that 46 transportation projects in 33 states and Puerto Rico will receive a total of $511 million from the third round of the U.S. Department of Transportation’s popular TIGER program. The announcement comes months ahead of schedule, and will allow communities to move forward with critical, job-creating infrastructure projects including road and bridge improvements; transit upgrades; freight, port and rail expansions; and new options for bicyclists and pedestrians.

The Department of Transportation (DOT) received 848 project applications from all 50 states, Puerto Rico and Washington, DC, requesting a total of $14.29 billion, far exceeding the $511 million made available for grants under the TIGER III program.

“The overwhelming demand for these grants clearly shows that communities across the country can’t afford to wait any longer for Congress to put Americans to work building the transportation projects that are critical to our economic future,” said Secretary LaHood. “That’s why we’ve taken action to get these grants out the door quickly, and that is why we will continue to ask Congress to make the targeted investments we need to create jobs, repair our nation’s transportation systems, better serve the traveling public and our nation’s businesses, factories and farms, and make sure our economy continues to grow."

In November, President Obama directed DOT to take common sense steps to expedite transportation projects by accelerating the process for review and approval and by leveraging private sector funding to promote growth and job creation. As part of that initiative, DOT accelerated the TIGER III application review process and has announced the awards before the end of 2011 – months ahead of the planned spring 2012 announcement.

The grants will fund a wide range of innovative transportation projects in urban and rural areas across the country:

• Of the $511 million in TIGER III funds available for grants, more than $150 million will go to critical projects in rural areas.
• Roughly 48% of the funding will go to road and bridge projects, including more than $64 million for Complete Streets projects that will spur small business growth and benefit motorists, bicyclists and pedestrians.
• 29% of the funding will support transit projects like the Westside Multimodal Transit Center in San Antonio.
• 12% will help build port projects like the Port of New Orleans Rail Yard Improvements.
• 10% will go to freight rail projects like the Muldraugh Bridge Replacement in Kentucky.
• Three grants were also directed to tribal governments to create jobs and address critical transportation needs in Indian country.
• Three grants will provide better multimodal access to airports, including DFW in Texas.

Work has already begun on 33 planning projects while 58 capital projects are under way across the country from the previous two rounds of TIGER, and an additional 13 projects are expected to break ground over the next six months.

In 2009 and 2010, the Department received a total of 2,400 applications requesting $76 billion, greatly exceeding the $2.1 billion available in the TIGER I and TIGER II grant programs.   In the previous two rounds, the TIGER program awarded grants to 126 freight, highway, transit, port and bicycle/pedestrian projects in all 50 states and the District of Columbia.

TIGER grants are awarded to transportation projects that have a significant national or regional impact. Projects are chosen for their ability to contribute to the long-term economic competitiveness of the nation, improve the condition of existing transportation facilities and systems, increase energy efficiency and reducing greenhouse gas emissions, improve the safety of U.S. transportation facilities and enhance the quality of living and working environments of communities through increased transportation choices and connections. The Department also gives priority to projects that are expected to create and preserve jobs quickly and stimulate increases in economic activity.

The continuing demand for TIGER grants highlights the need for further investment in the nation’s transportation infrastructure that could be provided by President Obama’s American Jobs Act. The American Jobs Act would provide $50 billion to improve 150,000 miles of road, replace 4,000 miles of track, and restore 150 miles of runways, creating jobs for American workers and building a safer, more efficient transportation network. It would also provide $10 billion for the creation of a bipartisan National Infrastructure bank.

A complete list of grant recipients can be viewed here

Governor Andrew Cuomo received plaudits all around for his tax bill this week.  But one group — transit advocates — feels left out in the cold.

New York Governor Andrew Cuomo With Reporters (Photo: NY Governor's Office)

When New York Governor Andrew Cuomo took the stage at Medgar Evars college in Brooklyn on Friday afternoon, he looked like the cat that ate the canary. The largely black student body gave him thrilled applause. One student yelled a soprano “we love you!” as he took questions from reporters. Not so-muted-references to Cuomo for President in 2016 swirled through the room.

It’s been that kind of week for the New York governor, who took several compliments for running a “functional” government – unlike --get it -- the one in Washington. He put together a tax plan that managed simultaneously to cut taxes for everyone while raising taxes for the super-rich. He set up an infrastructure bank to fund sorely-needed construction projects and create jobs. He was able to dole out hurricane relief funds to a besieged state. And – the subject of Friday’s Medgar Evers lovefest – set aside $75 million for “inner-city” job training and placement, a true passion of his.

But there’s one group that, this week, felt left out. For transit advocates under Governor Cuomo, it’s been a season of swallowing lemons.

There were the departures of MTA chief Jay Walder and Port Authority executive director Chris Ward, both seen as transit supporters – and their replacement with Cuomo loyalists Joe Lhota and Pat Foye, neither of whom has a background in public transportation.

There was the introduction of a massive plan to build a new Tappan Zee bridge, with the transit option mysteriously erased at the last minute.

And then: this week, to get his tax bill past the Republicans, the governor had to be willing to throw the MTA payroll tax under a bus, at least partially. Schools and small businesses would no longer have to pay the tax, which plays a vital role in maintaining the transit system.

Instead, there’s a vague assurance in the tax legislation passed this week that “any reductions in transit aid attributable to reductions in the metropolitan commuter transportation mobility tax authorized under article 23 of the tax law shall be offset through alternative sources that will be included in the state budget.”

Governor Cuomo reiterated that assurance Friday: “The state will pay, dollar-for-dollar, whatever amount would have been raised by that tax. So the MTA is held totally harmless -- we’re just shifting the source of those funds from the MTA payroll tax to state funds.”

And the governor said no one should conclude from this that he doesn’t care about transit as much as, say, jobs for inner-city youth. “Obviously the MTA is very important to the region's economy. I’m very excited about my appointee to the MTA, Joseph Lhota -- all reports are he’s doing a great job and this will not cost the MTA one penny.”

But the idea of a broke state government being the guarantor of transit funds has left straphangers advocates uneasy.

Mitchell Moss, the director of the Rudin Center for Transportation at New York University and a member of Cuomo’s search committee that recommended Joe Lhota to head the MTA, has been willing to give Governor Cuomo the benefit of the doubt when it comes to transit. But in an online op-ed in the New York Times, Moss wrote: “Apparently forgotten [in the agreement] are the millions of low-income New Yorkers who, in addition to getting zero in tax cuts, must now rely on a Metropolitan Transit Authority that lost $250 million in tax revenue in exchange for a pledge that the funds will be made up, but for how long and in what form, no one knows.”

Moss continued: “Rather than treating the M.T.A. finances as an urgent problem, it makes them worse to gain support from Long Island and other suburban state legislators.”

At the end of the day, exactly how the funds will be spent won't be clear until there's a 2012 budget. If past is prologue, that, too, will be decided in a last-minute round the clock jumble that will have legislators, and everyone else, trying to figure out what they voted on after the fact.

There was another black-eye for transit advocates this week – the death of an obscure, but to them vitally important, bill – the “lockbox bill”-- that would have made it more difficult for the state legislature to help itself to taxes that otherwise would go to fund public transit. As recently as the year before last, the legislature did just that, contributing to the MTA’s budget woes by taking $150 million that was supposed to go to transit and using it to plug the state’s budget gap.

Both houses of the state legislature overwhelmingly passed a bill that would have made that more difficult to do. But in the final run-up to the tax bill, most of that legislation was crossed out -- literally.

“The original legislation would have made it more difficult for the Governor to unilaterally divert MTA dedicated transit funds,” said a statement issued group of a dozen labor, transit, and good government groups.  The legislation passed this week “does not constrain future raids on transit funds,” the statement continued.

There was another source of concern this week – an infrastructure fund being established under the bill would accelerate state funding of big capital projects – and leverage private funds.  It’s been a dream of President Barack Obama to establish such a fund, and now Cuomo has one.

But both the press release and the legislation said it would fund roads, bridges, water tunnels, canals, dams, flood control efforts, even parks. But not transit. That left planners like Robert Yaro of the Regional Plan Association befuddled.

On Friday, Governor Cuomo said both the MTA and the Port Authority would be eligible for the funds, and that details would be revealed in his State of the State address in January.

But still, there’s a wariness that this Governor cares more about muscle cars than a muscular transit system.

Part of the unease is fueled by the rapidity with which the bill this week was presented. On Tuesday, the Governor issued a press release with the broad outlines of the agreement, but details were sketchy.

Gene Russianoff of the Straphangers Campaign says he worked all week to get details, but few were forthcoming. “The process was opaque, the 180 degree opposite of transparent," he said. "I spent the better part of the week calling the administration and I didn’t hear back.” Those details he did get were misleading, he says, though he says that could be because the agreement changed after they were relayed to him. For example, he was told the MTA provisions would sunset – that’s not the case. He was told the exemptions wouldn’t include public schools – but they do.

(The same thing happened to us – the Governor’s office initially assured us the $250 million hole to the MTA budget would be plugged by a dedicated stream from the $1.9 billion reaped by the tax on the super-rich – but when the bill was finally presented -- minutes before it was voted on -- there was no such provision.)

Russianoff also says he was asked not to issue a statement on the lock box because a compromise was being brokered --  but when the language finally emerged, he was “disappointed.”

“This is my experience in Albany,” Russianoff said, of hastily-crafted legislation. “It’s too early, and it’s too early. And then it’s too late.”

When New York Governor Andrew Cuomo issued a press release describing his tax and stimulus plan this week, he sketched out an infrastructure bank that would draw funds from accelerated payments from the state, couple them with money from the Port Authority and private pension funds, and leverage all that to create a $10 billion investment fund.

That won big praise from people like Marcia Hale of Building America's Future, who called it a "wonderful, wonderful' plan.

But it had folks like Bob Yaro of the Regional Plan Association scratching his head.  The press release (and later the bill) said it would fund roads, bridges, canals, dams, water tunnels, even parks. Neither document mentioned transit.

But on Friday, Cuomo said otherwise.  "We specifically are going to be talking about an infrastructure fund that will be all-inclusive," Cuomo said at a question-and-answer session with reporters after a ceremonial bill signing of the portion of the bill that provides jobs to "inner-city" youth at Medgar Evers college in Brooklyn.

"Of state agencies and state authorities, including the MTA, the Port Authority, DOT and coordinating all of the above."  Cuomo promised more details in the state of the state.

At the same event, Cuomo promised funds lost to the MTA from the payroll tax cut would be matched "dollar for dollar" by other state funds.

Cleveland Red Line

The American Public Transit Association released figures today showing transit ridership has risen for the third quarter in a row.  That's the first time that's happened since 2008, when gas prices shot up over $5 a gallon in some areas.

According to APTA, nearly 2.6 billion trips were taken on public transportation between July and September, a 2.0 percent increase over the same quarter last year.  APTA attributes the rise to high gas prices, improved real time passenger information, and "a recovering economy."

*Cleveland, Philadelphia, Boston, and San Francisco showed the highest increase in use of heavy rail (subways and elevated trains).

*Dallas, Seattle, and Salt Lake saw double digit hikes in light rail use.

The complete report is here.

Here's the press release, we'll be breaking it down soon.

(Traffic Fatality Report here.)

WASHINGTON, DC – U.S. Transportation Secretary Ray LaHood today announced updated 2010 fatality and injury data showing that highway deaths fell to 32,885 for the year, the lowest level since 1949. The record-breaking decline in traffic fatalities occurred even as American drivers traveled nearly 46 billion more miles during the year, an increase of 1.6 percent over the 2009 level.

“While we have more work to do to continue to protect American motorists, these numbers show we’re making historic progress when it comes to improving safety on our nation’s roadways,” said Secretary LaHood. “Thanks to the tireless work of our safety agencies and partner organizations over the past few decades, to save lives and reduce injuries, we’re saving lives, reducing injuries, and building the foundation for what we hope will be even greater success in the future.”

The updated information released by the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) today indicates 2010 also saw the lowest fatality rate ever recorded, with 1.10 deaths per 100 million vehicle miles traveled in 2010, down from 1.15 deaths per 100 million vehicle miles traveled in 2009. Other key statistics include:

* · Fatalities declined in most categories in 2010, including for occupants of passenger cars and light trucks (including SUVs, minivans and pickups).
* · Deaths in crashes involving drunk drivers dropped 4.9 percent in 2010, taking 10,228 lives compared to 10,759 in 2009.
* · Fatalities rose among pedestrians, motorcycle riders, and large truck occupants.

New Measure of Fatalities Related to Distracted Driving

NHTSA also unveiled a new measure of fatalities related to distracted driving today, called “distraction-affected crashes.” Introduced for 2010 as part of a broader effort by the agency to refine its data collection to get better information about the role of distraction in crashes, the new measure is designed to focus more narrowly on crashes in which a driver was most likely to have been distracted. While NHTSA’s Fatality Analysis Reporting System (FARS) previously recorded a broad range of potential distractions, such as careless driving and cell phone present in the vehicle, the new measure focuses on distractions that are most likely to affect crash involvement, such as distraction by dialing a cellular phone or texting and distraction by an outside person/event. New data released today by NHTSA using its refined methodology show an estimated 3,092 fatalities in distraction-affected crashes in 2010.

The NHTSA effort to refine distraction data is similar to a step taken with alcohol information in FARS data for 2006. Prior to 2006, FARS reported “alcohol-related crashes,” which was defined as crashes in which a driver, pedestrian, or bicyclist had a blood alcohol level of .01 or higher. In an effort to focus on crashes in which alcohol was most likely to be a causative factor, NHTSA introduced the new measure, “alcohol-impaired driving crashes,” with a more narrow definition including only those crashes in which a driver or motorcycle rider had a blood alcohol level of .08 or above, the legal limit in every state.

“Even as we celebrate the incredible gains we’re making in reducing traffic fatalities, we recognize our responsibility to improve our understanding of the dangers that continue to threaten drivers and passengers,” said NHTSA Administrator David Strickland. “That’s why, under the leadership of Secretary LaHood, NHTSA is working to refine the way we collect data on distracted driving and laying the groundwork for additional research to capture real-world information on this risky behavior.”

While the explicit change in methodology means the new measure cannot be compared to the 5,474 “distraction-related” fatalities reported in 2009, other NHTSA data offer some indication that driver distraction continues to be a significant problem. The agency’s nationwide observational survey of drivers in traffic remains unchanged between 2009 and 2010, with 5 percent of drivers seen talking on handheld phones. In addition, given ongoing challenges in capturing the scope of the problem—including individuals’ reluctance to admit behavior, lack of witnesses, and in some cases the death of the driver—NHTSA believes the actual number of crashes that involve distracted driving could be higher.

National Attitude Survey on Distracted Driving

A new national NHTSA survey offers additional insights into how drivers behave when it comes to texting and cell phone use while behind the wheel and their perceptions of the safety risks of distracted driving. Survey respondents indicated they answer calls on most trips; they acknowledge few driving situations when they would not use the phone or text; and yet they feel unsafe when riding in vehicles in which the driver is texting and they support bans on texting and cell phone use. These findings provide further evidence that distracted driving is a complex problem that is both hard to measure and difficult to address given conflicting public attitudes and behaviors.

“The findings from our new attitude survey help us understand why some people continue to make bad decisions about driving distracted—but what’s clear from all of the information we have is that driver distraction continues to be a major problem,” said Administrator Strickland. “We need to maintain our focus on this issue through education, laws, enforcement, and vehicle design to help keep drivers’ attention on the road.”

Among the findings, more than three-quarters of drivers report that they are willing to answer calls on all, most, or some trips. Drivers also report that they rarely consider traffic situations when deciding when to use their phone.

While most drivers said they are willing to answer a call and many will send a text while driving, almost all of these same drivers reported that they would feel very unsafe as a passenger if their driver was sending or receiving text messages. Over one-third report that they would feel very unsafe if their driver was using a handheld phone.

Continuing Data Refinement

NHTSA’s adoption of the new “distraction-affected crash” measure for the 2010 FARS data is one step in a continuing effort to focus in on driver distraction and separate it from other issues. As part of its commitment to reduce the problem of distracted driving, NHTSA will continue to look for improved data sources. While police reports of serious crashes are an important source, they are limited by the evidence available to the officer. As a result, the agency is working to optimize information from crash reports by improving reporting forms and officer training. In addition, NHTSA will analyze new data on driver distraction from a new naturalistic study in which about 2,000 cars will be fitted with cameras and other equipment that will record driver behavior over a period of two years. Researchers will be able to use these data to associate driver behaviors with crash involvement. Data from this study will be available in 2014.

New York Governor Andrew Cuomo (photo courtesy of Gov. Cuomo's flickr page)

Staying one step ahead of the zeitgeist, NY Governor Andrew Cuomo reversed himself and agreed to a tax hike on the super-wealthy today. To secure Republican agreement, he bartered away $250 million in revenue collected to fund the NY MTA -- but his office says that $250 million will be replaced with revenue from the tax increase on people making over more than $2 million.

Cutting the MTA payroll tax, sources say, was the deal maker for State Republicans. The MTA payroll tax has been an emotional issue in New York suburbs, who see it as a tax they're paying for New York's transit system. Suburban Republicans have been pushing for it's demise since it was imposed, and agreement to eliminate the tax was a prerequisite to the larger deal.

The payroll tax was imposed in 2009 as part of a bail-out package for the MTA, contributing some $1.4 billion per year to the MTA's budget.  Today's agreement cuts that tax for small businesses, the self-employed, and private schools. But the MTA says it's no net loss to them.

Confused? Let's break it down.

New York had a temporary "surcharge" on taxpayers making more than $250,000 that expires at the end of this month. Through his 2010 campaign for Governor, and his first year in office, Governor Andrew Cuomo has steadfastly opposed reimposing that surcharge, forfeiting billions in revenue.

But two things happened. One, the budget deficit for next year -- and possible cuts to health care, education, and the like, were really really severe.

And, Occupy Wall Street.

All of a sudden people were talking about fairness in the tax code.  Then suddenly, Governor Cuomo was too.  In Op-Eds over the weekend, he asked if it was fair for someone making $20,000 to pay the same tax as someone making $2 million. He answered that in the way most Americans now approve:  No.

Even under the new Cuomo tax hike, the rich are getting a cut over what they're paying this year because the current surcharge is higher than the new tax rate. (The surcharge expires on December 31.) But it's a hike over what would have been -- so there will be some $1.9 billion in revenue that wouldn't have otherwise been collected.

From that, the Governor's office says it will take $250 million to plug the hole in the MTA's budget created by the loss in payroll tax revenue.

That still has transit advocates worried -- because $250 million from the general fund can be snatched for other purposes when the going gets tough (It's happened in the past.) But it's not the outright cut some had feared.

Here's how Bob Yaro of Regional Plan Association expresses it:  "The payroll-mobility tax, adopted by the New York legislature with the support of Regional Plan Association in 2009, produces 14.3% of the MTA’s annual operating budget. In addition, the PMT has been seen by the MTA as a cornerstone of its strategy to close a $10 billion gap in the MTA’s five-year capital program.

"The governor’s commitment to replace any lost funds will be critical to maintaining the MTA’s transportation services for the more than eight million New Yorkers who ride the MTA every day.

"The governor’s initiative announced today to rebuild New York State’s water, energy and park facilities through the creation a statewide infrastructure fund is a vital step toward strengthening the region’s economy"

“We look forward to also working with the governor and the legislature to ensure that the financial health of the MTA is sustained. We don’t know how much revenue would be lost with the reductions in the PMT announced today, so we want to make sure that any loss is made up on a dollar-for-dollar basis.”

UPDATED WITH LAHOOD STATEMENT On Saturday, FAA Chief Randy Babbitt was caught driving drunk. On Monday, he told his bosses at the US DOT, who put him on leave.

This just in, from Babbitt: "Today I submitted my resignation to Secretary Ray LaHood and it has been accepted. Serving as FAA Administrator has been an absolute honor and the highlight of my professional career. But I am unwilling to let anything cast a shadow on the outstanding work done 24 hours a day, 7 days a week by my colleagues at the FAA. They run the finest and safest aviation system in the world and I am grateful that I had the opportunity to work alongside them. I am confident in their ability to successfully carry out all of the critical safety initiatives underway and the improvements that the FAA has planned. I also want to thank Secretary LaHood for his leadership and dedication to the safety of the traveling public."

Here's LaHood's statement:  “As FAA Administrator, Randy Babbitt has been a dedicated public servant and outstanding leader.  I’m proud to say that we have the safest aviation system in the world, and thanks to Randy’s stewardship, it became safer and stronger.  He worked tirelessly to improve relations with the labor community and bolstered employee engagement among his 49,000 colleagues at the FAA.  He led the FAA’s efforts to improve pilot training and enhance safety for the traveling public, as well as those that work in aviation.  On behalf of the American people, I thank him for his service and his leadership.”

Under a deal just announced, Albany's top leaders have agreed to cut a payroll tax that supplies in excess of a billion dollars a year to the cash-strapped MTA.

We'll be supplying details as we get them, for now the relevant portion of the Governor's press release states:

"Reducing the MTA Payroll Tax

The Governor and the legislative leaders have agreed to reduce the MTA payroll tax on small businesses while maintaining the necessary funding for the MTA from other sources. The payroll tax would be eliminated or reduced for 294,900 taxpayers overall. The tax would also be eliminated from an additional 415,000 taxpayers by raising the self-employment income exemption. In addition, private elementary and secondary schools, as well as parochial schools, would be exempt from the tax. The State would compensate the MTA for the $250 million in lost revenue."

Here's the full release. More soon.

GOVERNOR CUOMO, MAJORITY LEADER SKELOS & SPEAKER SILVER ANNOUNCE COMPREHENSIVE PLANS TO CREATE JOBS AND GROW THE ECONOMY

Governor Andrew M. Cuomo, Senate Majority Leader Dean Skelos and Assembly Speaker Sheldon Silver today announced that they have reached a proposed three-way agreement on legislative and executive proposals to create jobs and cut taxes for middle class New Yorkers. The agreement includes support for a comprehensive New York Works Agenda that will create thousands of jobs with new investments in New York's infrastructure, passing a fair tax reform plan that achieves the first major restructuring of the tax code in decades resulting in a tax cut for 4.4 million middle class New Yorkers taxpayers, approving $50 million in additional relief for areas devastated by recent floods, and reducing the MTA payroll tax to provide relief for small businesses. The leaders will now present the agreement to their members for approval.

"Our state government has come together in a bipartisan manner to create jobs, grow our economy and, at the same time enact a fair tax plan that cuts taxes for the middle class," Governor Cuomo said. "We are investing in projects that will restore our state's infrastructure and put thousands of people to work. We are cutting taxes on middle class New Yorkers and small businesses, which will inject nearly $1 billion into our economy. We are targeting new tax credits to hire inner city youth and reduce unemployment in some of the poorest areas of our state, as well as providing direct aid to communities struggling to recover in the wake of this year's severe storms. This would be lowest tax rate for middle class families in 58 years. This job-creating economic plan defies the political gridlock that has paralyzed Washington and shows that we can make government work for the people of this State once again. I commend Majority Leader Skelos and Assembly Speaker Silver for their partnership in our effort together to create jobs for New Yorkers and put our state's economy on a path for growth."

"This year, working in a bipartisan manner, we've accomplished some very important things for the people of this State - - including eliminating a $10 billion deficit, bringing spending under control and capping property taxes," Majority Leader Skelos said. "This comprehensive plan will reduce the tax rate for middle class families to their lowest levels in more than fifty years, create thousands of new private sector jobs, and begin to turn our economy around. I am pleased that this proposed agreement realizes long-held Senate Republican priorities like cutting the corporate franchise tax for manufacturers, reducing the job-killing MTA payroll tax for small businesses, eliminating New York's stealth tax by indexing tax brackets and deductions, and building our reserves, along with providing additional flood relief to support job growth in devastated communities. I am looking forward to presenting this framework agreement to the members of our conference tomorrow and hearing their feedback."

"Assembly Democrats share the Governor's belief that we need to restore fairness and equity to our tax system - someone who makes $50,000 should not be paying the same tax rate as someone making $5 million," Speaker Sheldon Silver said. "With Governor Cuomo's leadership, we have forged a bipartisan plan that is fair to all New Yorkers and will help build a brighter economic future for this State. I am submitting to my conference a proposal that will provide $2 billion in revenue for the people of New York in each of the next three years by creating a more progressive tax structure, coupled with a significant middle class tax cut. I will recommend that they give it favorable consideration. I congratulate the Governor for helping to forge this comprehensive plan to revitalize New York State's economy."

The Governor's New York Works Agenda will create tens of thousands of jobs through a $1 billion targeted and accelerated investment in key infrastructure projects around the state including roads, bridges, parks, energy and water projects. The NY Works Agenda also includes pursuing a comprehensive gaming plan and enacting a new tax credit to incentive the hiring of inner city youth.

The Governor and the legislative leaders have agreed to tax code reforms including a temporary restructuring of current tax brackets to reduce taxes for 4.4 million middle-class New Yorkers. The Governor is also establishing a commission to examine a comprehensive overhaul of the state's entire tax code that will make it simpler and fairer for all taxpayers and to create economic growth in the state.

In addition to these agreements, the Governor and legislative leaders announced a new round of flood relief, including a $50 million grant program for at businesses and counties impacted by Hurricane Irene and Tropical Storm Lee. The plan also includes a job retention tax credit for businesses impacted by a natural disaster during the last year. Finally, the Governor and legislative leaders announced that the MTA payroll tax will be reduced for small businesses.

The details of the proposed agreement are as follows:

The New York Works Agenda

New York Works Infrastructure Fund: Creating Jobs by Rebuilding New York

The Governor and the legislative leaders have agreed to a plan creating New York's first infrastructure fund to inject over $1 billion in job creating investment. The accelerated state funding will leverage $10 billion in direct capital investment to create thousands of direct jobs by rebuilding roads and bridges; parks, dams and flood control projects; upgrading water systems and educational facilities; and investing in energy efficient improvements to commercial and residential buildings. The plan will focus on projects that support regional Economic Development Plans in the transportation, energy, environment and public facilities sectors. The accelerated infrastructure fund investment is within the state's debt ceiling.

Specific investments undertaken by the New York Works Infrastructure Fund include replacing deficient state and local bridges in every region of the state, rehabilitating dams and flood control infrastructure, renovating parks, rebuilding water systems, conducting energy retrofits on homes, farms, businesses, and schools, as well as accelerating major SUNY and CUNY projects.

The Governor and the legislative leaders agreed on proposing legislation that will permit the New York Works Infrastructure Fund to bid the design and construction of infrastructure projects as a single contract, reducing costs and improving construction time. Passage of "Design-Build" legislation would shave 9 - 12 months from the construction time of major infrastructure projects. The Fund would also streamline permitting and regulatory approvals for infrastructure projects and procurements and consolidate activities across agencies and authorities.

Financing for the infrastructure fund would be provided through advancing capital investment and the creation of a public/private infrastructure fund. $700 million in state capital investments would be front loaded to increase job and economic impact by moving up capital projects planned for 2013 to 2012 wherever possible. An additional $300 million from the Port Authority would be directed towards funding for infrastructure projects in New York City. A new public/private infrastructure fund would raise up to $1 billion from pension funds and private investment.

Gaming Agreement

The Leaders expressed support to work with the Governor and request support from their respective majorities to put a constitutional amendment up for a vote.

Inner City Youth Employment Program and Tax Credit

The Governor and the legislative leaders agreed to create an inner-city youth employment program and a $25 million tax credit for employers who hire unemployed youth between 16 and 24 years of age over the first six months of 2012. The program and credit would be available to employers in businesses such as clean energy, healthcare, advanced manufacturing and conservation. Eligible employers would receive up to $3,000 for a six month training period and an additional $1,000 if they retained their workers for an additional six months.

Nearly $37 million in funding will be provided to critical jobs programs for inner city youth. This includes $12 million in support grants to youth providers for work readiness training, occupational training, placement or job matching, workplace mentoring and follow up services to increase retention. Participating youths will be provided with up to three monthly stipends of $300 each to cover costs associated with transitioning into the workplace. An additional $25 million will be appropriated for workforce skills training and support programs including digital literacy, basic education and occupational training, summer youth employment, job search and placement, and facilitated child care enrollment.

Fair Tax Code Reform

The Governor and the legislative leaders announced tax code reforms to create jobs and restore fairness to the tax system. Under the new rate structure, a total of 4.4 million New Yorkers would receive a tax cut, including a $690 million reduction for middle class taxpayers, and all taxpayers would see a tax reduction or no change compared to their previous tax bill. Brackets would increase with the rate of inflation. The newly implemented top bracket expires in December 31, 2014.

The new tax structure would generate $1.9 billion in additional revenue for the State. Any additional unspent funds from this revenue would be held in a new priority reserve fund to be dedicated towards future needs regarding job creation, local mandate relief, education, health care and mortgage foreclosure protection.

The new tax bracket structure would be reorganized as follows:

Income Level Previous Tax Rate New Tax Rate
$40,000 to $150,000 6.85% 6.45%
$150,000 to $300,000 6.85% 6.65%
$300,000 to $2 million 7.85% - 8.97% 6.85%
Over $2 million 8.97% 8.82%

Through an executive order, the Governor has created the New York State Tax Reform and Fairness Commission to address long term changes to the tax system and create economic growth. The commission will have thirteen members, including four recommended by the Senate and Assembly majority leaders and two recommended by the Senate and Assembly minority leaders. The chair of the Commission will be appointed by the Governor. All members are required to have expertise in the tax field and will receive no compensation.

The Commission will conduct a comprehensive and objective review of the State's taxation policy, including corporate, sales and personal income taxation and make revenue-neutral policy recommendations to improve the current tax system. In its review, the Commission will consider ways to eliminate tax loopholes, promote administration efficiency and enhance tax collection and enforcement.

Flood Recovery Grant Program

The Governor and the legislative leaders have agreed to establish a $50 million grant program to continue recovery efforts in regions of the State impacted by Hurricane Irene and Tropical Storm Lee.

The program includes the following support for communities recovering from the storms:

· $21 million for small businesses, farms, multiple-dwellings and non-profit organizations that sustained direct physical flood-related damage costs not covered by other federal, State or local recovery programs. Grants would be limited to $20,000 and eligible only to companies that are on the Small Business Administration's list of companies that have sustained damage.
· $9 million for county flood mitigation or flood control projects. The grants for each county would range from $300,000 to $500,000; however, counties could jointly apply. Eligible counties must be included in Federal disaster declarations
· An additional $20 million included in federal disaster declarations distributed on an as needed basis
· Permitting local government to let taxpayers impacted by the storms to pay their property taxes in installments

Jobs Retention Credit for Businesses Impacted by a Natural Disaster

The Governor and the legislative leaders have agreed to the enactment of a job retention credit for businesses harmed by a natural disaster. The credit would be available to firms with at least 100 employees that have retained or expanded their workers' roles during this time. The credit would equal 6.85 percent of the wages of retained jobs and is targeted towards employers in financial services, manufacturing, software development, new media, scientific development, agriculture and other sectors.

Reduced Manufacturing Tax Rate

The Governor and the leaders agreed to provide a new reduction in the tax provided to corporate manufacturers by lowering their tax rate that would save them $25 million.

Reducing the MTA Payroll Tax

The Governor and the legislative leaders have agreed to reduce the MTA payroll tax on small businesses while maintaining the necessary funding for the MTA from other sources. The payroll tax would be eliminated or reduced for 294,900 taxpayers overall. The tax would also be eliminated from an additional 415,000 taxpayers by raising the self-employment income exemption. In addition, private elementary and secondary schools, as well as parochial schools, would be exempt from the tax. The State would compensate the MTA for the $250 million in lost revenue.

###

UPDATED FAA Chief Randy Babbitt will take a leave of absence after being arrested for drunk driving Saturday night.

Federal officials just released a statement saying:

"DOT officials learned of FAA Administrator Babbitt’s arrest on Saturday night within the last hour.  Administrator Babbitt has requested, effective immediately, to take a leave of absence from the FAA.  That request has been granted and Deputy Administrator Michael Huerta will serve as acting administrator.  DOT officials are in discussions with legal counsel about Administrator Babbitt’s employment status."

Babbitt was alone in his vehicle Saturday night when he was arrested in Fairfax, Virginia, for driving on the wrong side of the road.  No one was injured.

The DOT statement -- sent out mid-afternoon Monday, suggests that the DOT only learned of Babbitt's arrest at the same time reporters did.

Despite the embarrassing arrest of a top-level transportation official, the White House declined to immediately call for Babbitt's resignation. "What he have at this point is a matter that just came to light in the last hour or so,” White House Press Secretary Jay Carney told reporters when asked if President Obama would ask for Babbitt's resignation.

It hasn't been an easy year for the FAA -- what with the partial shutdown and the discovery that air traffic controllers were falling asleep on the job.

Babbitt's boss,  Ray LaHood the Secretary of Transportation, has been fiercely committed to safety in all forms, and has mounted a national campaign to combat distracted driving.

The news of Babbitt's arrest and leave comes just as members of Congress are involved in sensitive negotiations over the FAA's fund authorization.