Archive for August, 2008

Running Out of Money, Cities Are Debating the Privatization of Public Infrastructure

By Jenny Anderson

Cleaning up road kill and maintaining runways may not sound like cutting-edge investments. But banks and funds with big money seem to think so.

Reeling from more exotic investments that imploded during the credit crisis, Kohlberg Kravis Roberts, the Carlyle Group, Goldman Sachs, Morgan Stanley and Credit Suisse are among the investors who have amassed an estimated $250 billion war chest — much of it raised in the last two years — to finance a tidal wave of infrastructure projects in the United States and overseas.

Port Authority Exec Says Infrastructure Improvements Needed

By Bob Hennelly

Port Authority Executive Director Chris Ward says the region must find a new way to finance tens of billions in essential transportation infrastructure needs.

WNYC’s Bob Hennelly has this report.

Building costs are up and tax revenues are down. New York and New Jersey are already deep in debt. The Port Authority’s Chris Ward told the New York Construction Congress raising capital for badly needed upgrades to the region’s airports was difficult because airlines are in a tail spin.

WARD: How do you partner with the equity markets to build new terminal facilities at a time when the very industry you are trying to service is facing a significant decline?

REPORTER: Ward said one avenue for funding infrastructure could be pension plans that can afford to earn a guaranteed rate of return over decades.

WARD: With that long view you can bring private equity to build something like the Tappan Zee Bridge.

REPORTER: Ward lauded Mayor Bloomberg’s congestion pricing strategy and faulted the Bush Administration for failing to invest in transportation infrastructure.

Cuts share $427M of pain

State budget reductions are broad and, critics maintain, far too deep

by Rick Karlin

Hundreds of programs are sharing the pain of $427 million in cuts from the present state budget as Gov. David Paterson and legislative leaders Wednesday congratulated themselves on the effort.

A closer look at the numbers suggests that, just as lawmakers have said, the burden of reduced spending is being shared fairly equally across the state’s geographic and social landscape.

NYSUT praises Assembly for offering ‘real relief’ to New York families

ALBANY, N.Y. August 19, 2008 – New York State United Teachers today praised the Assembly for protecting public education and for helping senior citizens and working families by passing ‘circuit breaker’ legislation that would actually reduce property tax bills for those New Yorkers who need relief the most.

Circuit Breaker, Millionaire’s Tax – No Cap – Pass Assembly

As expected, the Democrat-controlled Assembly approved its answer to Gov. David Paterson’s property tax cap bill, which was a combination circuit breaker and millionaire’s tax.

The vote was 118-24, which means about half of the Assembly Republicans joined the Democrats in voting “yes.”

The millionaire’s tax in this case has two tiers – one for people earning $1 million and another for super-millionaires, those who earn $5 million or more…

PEF hails Gov. Paterson for signing bill restricting nurse overtime

ALBANY – Leaders of the New York State Public Employees Federation (PEF) today commended Gov. David Paterson for signing legislation that will finally set limits on mandatory overtime for nurses.

“We salute the governor for delivering on his promise to sign this bill which offers the first real hope for alleviating the shortage of nurses in our hospitals and other health care institutions throughout New York state,” said PEF President Kenneth Brynien.

New York Business and the Wealthy Should Pay Their Fare Share

Statement by BALCONY Co-Chairman Bruce Ventimiglia,
Chairman of Saratoga Capital Management, LLC

“BALCONY – the Business and Labor Coalition of New York, is concerned that the New York State budget is being balanced by Governor Paterson disproportionately on the backs of workers who are middle and low income wage earners. The governor’s approach will result in a loss of essential services, social services, and cuts in Medicaid funding for health care, all of which could further damage our State’s economy.

Many businesses in New York which rely upon our State’s services, such as higher education which provides a quality work force, stand ready to share the responsibility for keeping our State solvent. Furthermore, there are thousands of wealthy New Yorkers who are ready, willing and able to do their fair share to help us maintain our State’s economy.

We call upon the State Legislature to adopt a balanced approach to our budget shortfall
and to consider policies that restore tax equity to our state and local tax system.”

Raising Revenue Needs to be Part of the Solution

Déjà Vu All Over Again – Budget Balancing in Bad Times
Raising Revenue Needs to be Part of the Solution
Lessons From the Last Two Recession

(Albany, N.Y.) The Better Choice Budget Coalition, a large coalition of over 100 non-profit, labor and faith based organizations representing nearly one million New Yorkers, called upon Governor Paterson today not to cut essential state services to needy populations across the state. The groups urged the governor to examine how the state has balanced its budgets in the past and to do what has been most effective so we do not make the same mistakes twice. They urged the governor to support a high end income tax on the wealthiest 1% of New Yorkers to help address the budget shortfall in a balanced way.

Déjà Vu All Over Again – Budget Balancing in Bad Times

Lessons From the Last Two Recessions

Governor Paterson has sounded the warning bell that the economy is in trouble and the deficit is growing. Just this week he proposed additional cuts (a menu of $1 billion in cuts) to this year’s state budget, on top of the cuts (3.35%) that he made earlier this year and has called the Legislature back to Albany for a Special Session to act on his proposals. He has said we need significant cuts to state expenditures, but he has completely ignored the revenue side of the budget equation. The governor calls for “shared sacrifice” but seems to be targeting those with the least means rather than those with the most.

Indeed, the cuts made earlier in the year are already having a damaging impact on non- profit organizations that deliver state services to a wide variety of constituent groups across the state. It’s time for the Governor to take a lesson from New York’s history books as he develops his plan to dig the state out of the current fiscal crises.

Read the entire Fact Sheet: Fact Sheet

Developers seek support for tunnel to Westchester

By Susana Enriquez

In an effort to rally support for a proposed 16-mile tunnel under Long Island Sound that would link Nassau and Westchester counties, developers held a meeting Wednesday with a Suffolk County legislative committee.

The meeting is the latest one that Garden City developer Vincent Polimeni said he has had with officials in the region with the hope that they will support the project and write letters to Gov. David A. Paterson requesting that he seriously consider the project.

“We have done this presentation — I lost count how many times,” Polimeni said. “I need the governor on board because the state owns the land we want to go under.”

The tunnel between Syosset and Rye would carry up to 80,000 cars each day. Its cost of $10 billion would be privately funded.

Suffolk Legis. Wayne Horsley (D-Lindenhurst), who is the chairman of the Economic Development, Higher Education and Energy Committee, said the project got the committee’s attention.

“I applaud you for your vision,” Horsley said. “It’s shades of Gov. [Nelson] Rockefeller and [ Robert] Moses.”

After the meeting, he said he would poll the board members next Tuesday to determine whether they would want to write a letter of support.

“Anytime you can bring $10 billion into the local economy and reduce traffic and pollution, you have to consider it,” Horsley said.