The September 26, 2011 Issue of The Capitol by The Capitol

Assemblyman William Boyland Jr. claims Albany expenses while in Manhattan court.

Is Schoharie ready to rebuild an 11th time? Page 22

Page 6

VOL. 4, NO. 15

State Republican Chairman Ed Cox says New York is swinging right. Page 27

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SEPTEMBER 26, 2011

The infrastructure that holds New York together is falling apart. How can it be fixed? Pg. 10-19 iStockphoto /Joey Carolino iStockphoto速/Joey

Dreamstime/Joey Carolino

UPFRONT

Boots On The Ground New York National Guard battled ﬂoods with war skills

fter 10 years of deployments to Iraq and Afghanistan, the New York National Guard is a seasoned force. They were literally a lifesaver when two tropical storms devastated communities across New York, prompting their largest domestic response since 9/11. The guard’s adjutant general, Major Gen. Patrick Murphy, spoke with The Capitol about how they met that challenge:

The Capitol: Is it difficult for Guard

members to step into their domestic role? Patrick Murphy: We’re talking about primarily military forces. Their combat skills translate well into emergency recovery. If a local community loses telephone service. we can roll in with a satellite system and bring that back up for them. Another unique capability we have is with the aircraft that we fly. Because we have war-fighting capabilities, the governor can commit those, depending on the emergency.

preparing to mobilize and go for deployment starting in November to Afghanistan. We will have very few forces from this point forward that go to Iraq. TC: Are there any particular lessons

you could see your soldiers and airmen learning after doing this over the past month? PM: You don’t want to wait for the storm to hit hard and then try to energize the additional forces and have them able to support local authorities. On the militaryforce side, what we are going to do is look at better packaging. It may be a chainsaw crew that’s with a high-axle vehicle, so

TC: Have you ever been in circumstances

By The Numbers

like we’ve seen in the past month? PM: Yes. In June of 2007 we had flooding in Delaware County that washed over a number of roads. It was much more isolated in that case for the local response. This was more widespread. We didn’t necessarily anticipate that amount of rain. It affected so many people. We were dealing in multiple areas, at one point in fourteen counties. TC: Your forces have got to be pretty

happy with what they’ve accomplished. PM: Military forces have no problem

being called up. We don’t like to sit around and do nothing. They want to come and support their neighbors, absolutely. —Adam Lisberg alisberg@nycapitolnews.com $500,000,000

FEMA major disasters in New York

$450,000,000

The Federal Emergency Management Agency has spent almost $1.9 billion on disasters in New York state in the last decade (not including $7 billion for the 9/11 attacks). The annual tally varies widely with the vagaries of Mother Nature. The price tag for Hurricane Irene and Tropical Storm Lee is still being tallied, but 2011 is far from the most expensive year so far.

$138,161,390

$400,000,000

$350,000,000

$300,000,000

$250,000,000

$226,776,448

TC: How much of the actual war fighting has the New York Guard done over the last ten years? PM: Over the past nine or ten years, we have literally deployed almost every unit. One of our largest formations—the 27th Infantry Brigade Combat Team, out of Syracuse headquarters—they are

The Month

that when a tree falls down across the road and blocks a rescue attempt for somebody who is stranded, then we would have that clearing capability. It all has to do with the area we are in. Some places are just flat and open, and for those areas we don’t need that tree$779,973,048 clearing capability. In other areas, we just have to adapt to it. We got through it all, but could we do a little better? Absolutely.

$207,317,567

$189,872,504

$200,000,000

$150,000,000

$92,607,671

$116,850,425

$112,631,816

$100,000,000

$50,000,000

$11,769,288

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: FEMA Ahead (Sept. 26–Oct. 17)

Senate Transportation Committee hearing on public-private partnerships, Farmingdale State College

Assembly hearing on environmental impact report on hydrofracking, LOB, Albany

New York State Democratic Party Chairman Jay Jacobs’ birthday Bill Clinton speaks at the Governor’s Statewide Regional Council Conference

Former State Comptroller H. Carl McCall’s birthday Scarlett Johansson headlines fund-raiser for Manhattan Borough Legislative redistricting task force hearing, Farmingdale State College

Financial Incentives in Public Policy conference, hosted by NYU Wagner Center

Assembly hearing on notification system for sewage spills, 250 Broadway, Manhattan

Mark Ruffalo headlines rooftop fund-raiser for Attorney General Eric Schneiderman, Manhattan Silda Wall Spitzer, Judith Hope, Sally Minard and Geraldine Laybourne headline an event for Democratic women’s group Eleanor’s Legacy

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SEPTEMBER 26, 2011

New York Celebrity Scorecard In a state stuffed full of high-wattage celebrities, it’s only natural some of them will take a stand on social issues. Here’s a guide to keeping them straight.

Carriage horses Ethan Hawke

Gun control Kristen Johnston

Hydrofracking

Lea Michele

Millionaires’ tax

Cynthia Nixon

Same-sex marriage

Mark Ruffalo

Russell Simmons

Anti–same-sex marriage

Teen drug-&-alcohol abuse

Publisher/Executive Director: Darren Bloch

SEPTEMBER 26, 2011

“Among a lot of New York Republicans, the general sense is that it doesn’t make sense.” —A state GOP source on George Pataki’s presidential ambitions, to the Daily News. “My initial reaction is, ‘Well, there goes the tax cap.’ ” —Peter Barnes, executive director of the state Conference of Mayors, on the doubledigit increase in pension costs, to the TimesUnion. “We’re keeping a watchful eye and preparing to take the appropriate actions. We don’t want people to be alarmed, but we want them to be prepared.” —Troy Mayor Harry Tutunjian on the damaged dam, to the Times-Union. “This is where their carbon footprint is. This is where they’re living, just like a person in a college dormitory or a nursing home. I think it’s extremely political that they were taken out just for the purposes of redistricting.” —State Sen. Betty Little, in response to an analysis by Assembly Democrats of districts that stand to lose residents under a new prisoner-counting law, to the Times-Union. “This is one of those things. You can’t have sharpshooters picking off the prisoners when the hostages are there with them, at a distance with tear gas, without maybe having a few accidents.” —Gov. Nelson Rockefeller to President Richard Nixon after 10 hostages were killed in the Attica prison riot, as reported by The New York Times. “I would not be in a position that has a possible conflict. If anyone can demonstrate a possible conflict, then I wish they would step forward.” —Former Gov. Mario Cuomo to the Times, before hanging up. Our morning email roundup, City & State First Read, delivers a summary of each day’s political and government headlines before 7 a.m.—and the best New York quote of the day. If you’re not reading quotes like these, you’re missing out. Sign up at cityhallnews.com/first-read.

David Tyree

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THE KICKER

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The White House

Time to Move Beyond Environmental Injustice By Norris McDonald

Where does New York get the bulk of its electricity to power our infrastructure?

U.S. Education Secretary Arne Duncan has tapped New York’s research fellows for help in designing state waivers from No Child Left Behind.

Waiver Waver

New York undecided on whether to apply for No Child Left Behind waiver, even though it helped write it By Andrew J. Hawkins

group of New York State’s top education research officials secretly advised the federal Education Department on how to exempt states from testing standards in the No Child Left Behind law, The Capitol has learned. The Board of Regents research fellows, who are helping the state decide how to spend Race to the Top education money, were tapped for the task after U.S. Education Secretary Arne Duncan reached out to State Education Commissioner John King, said a source with direct knowledge of the conversation. “We’ve been loaning them manpower,” the source said. “It’s embarrassing.” No Child Left Behind requires all of a state’s students be proficient in math and English by 2014, and has forced many states to label an outsize number of their schools as failing. With Race to the Top now the nation’s premier education program, Duncan wants states to be able to apply for waivers from No Child Left Behind, while still maintaining rigid standards for their students’ performance. “[Duncan] said, ‘You guys now have manpower, because of these fellows,’ ” the source said. “There’s enormous pressure that the feds are under from the [teachers] union. So we didn’t want the waiver designed to lessen accountability.” Tom Dunn, a spokesman for the State Education Department, would neither confirm nor deny that the Regents research fellows were involved in developing the NCLB waivers, but said King has had informal conversations about the waivers with federal Education Department officials. Justin Hamilton, a spokesman for the U.S. DOE, said, “John King has been a tremendous leader for education reform in New York and a key thought partner for the department on various issues. We’ve had numerous conversations with governors and state school chiefs across the country on what the flexibility for the reform package should look like.” Despite King’s involvement, however, New York has not decided whether to apply for a waiver. The research fellows, who operate under the state Board of Regents and are paid with $4.5 million in private donations, were recruited to help assist the

state Education Department and the Regents oversee $700 million the state won in Race to the Top. They have been criticized by some groups—and by some individual Regents—for being too ideologically focused on charter schools and standardized tests, to the detriment of public schools and the teachers union. Board of Regents Chancellor Merryl Tisch declined to comment on the collaboration between the research fellows and the federal government, but did say that New York would apply for a waiver from one part of the NCLB law. “The only waivers we are going to apply for are to align our new value-added and growth models to the accountability system,” Tisch said, “so we don’t end up identifying 90 percent of the schools in the state [as failing].” No Child Left Behind gives each school the equivalent of a pass-fail grade each year. Education officials say that blunt verdict ignores the differences between a failing school, a struggling school with a high population of poor students and a high-performing school that neglects some low-scoring students. Rather than wait for Congress to reauthorize the law, which given the current partisan gridlock appears unlikely, the Obama administration instead proposed to override several of the measure’s key requirements. Duncan, who has praised New York’s reforms of its education policies, has said that only states that have adopted higher standards and improved teacherevaluation systems would be eligible for a wavier from No Child Left Behind. Some groups are pushing for states to apply for the waiver, arguing it will allow them to use federal money more efficiently than rigidly following No Child Left Behind mandates. Steve Sanders, a lobbyist who once chaired the Assembly education committee, said it was unclear whether New York would apply for the waiver until more was known about what effect it will have on federal funding for education. “New York should, and will, do whatever is necessary in the short run to preserve federal funding for education, especially given the expiration of all the stimulus aid as of October,” Sanders said. “NCLB probably will not be reauthorized in its current iteration, so there will be lots of changes in that program over the next year or two.” ahawkins@nycapitolnews.com

“We’ve been loaning them manpower. It’s embarrassing.”

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Would it surprise you to learn that far too often, it comes from greenhouse gas producing power plants located in, or near, communities of color? Researchers from Johns Hopkins University and the Harvard School of Public Health found strong evidence linking daily increases in particle pollution to increases in death in the largest U.S. cities. Links were also found between fine particle levels and increased hospital admissions for asthma, cardiovascular disease, pneumonia, and chronic obstructive pulmonary disease (COPD). Air pollution has been characterized as one of the largest threats to our nation’s public health. As levels of air pollution increase, so do the incidences of death and respiratory and cardiovascular ailments. It is estimated that each year in New York there are 2,290 deaths, 1,580 hospitalizations, 546 asthma-related emergency room visits, 1,490 cases of chronic bronchitis, and 46,200 asthma attacks attributable to power plant pollution. The New York City area has also been ranked as one of the top five U.S. metropolitan areas for particulate air pollution, while 23 counties in New York State fail to meet Federal air pollution standards. Indian Point, located in the affluent and predominantly white Westchester County, generates 2,000 megawatts, providing approximately 30 percent of the electricity for New York City and its northern suburbs. Unlike many of New York’s fossil-fuel burning facilities, Indian Point does not pollute the air we breathe. For this primary reason, communities of color object to actions or provisions that impose significant limits on Indian Point’s ability to continue generating clean-burning electricity. Instead, we must promote clean air in low-income and minority communities by, among other things, supporting the safe use of clean nuclear energy. For too long, anti-nuclear activists have been given a bully pulpit and spotlight, while those less powerful and with less recourse have been ignored. The debate about our energy future is an instance where environmental injustice has been allowed to stand for far too long. Norris McDonald is the President of the Center for Environment, Commerce & Energy, dedicated to protecting the environment, enhancing human, animal and plant ecologies and promoting the efficient use of natural resources.

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New York AREA’s membership includes some of the state’s most vital business, labor and community organizations including the New York State AFL-CIO, Business Council of New York State, Partnership for New York City, New York Building Congress, National Federation of Independent Business and many more. W W W. A R E A - A L L I A N C E . O R G SEPTEMBER 26, 2011

A comparison of William Boyland’s expense reports, social media activity and court appearances reveals a number of discrepencies.

Boyland’s Magic Trick Indicted assemblyman claims Albany expenses when he’s nowhere near Capitol BY LAURA NAHMIAS

here’s no doubt where Assemblyman William Boyland Jr. was March 10: Cameras caught him at the Manhattan federal courthouse, where he surrendered to face corruption charges. The paperwork he submitted to bill state taxpayers for his travel expenses tells a different story. Boyland filed for a $165 per diem payment—the amount lawmakers get to cover food, lodging and travel when they perform their duties more than 50 miles from their home districts. Boyland was in Manhattan all day, about eight miles from his home in Brownsville, Brooklyn, say sources close to his criminal case. Yet he claimed $959.99 in reimbursements for the week, and an Assembly finance department employee signed and approved the form March 31. It was not a one-time discrepancy for Boyland, who has the Assembly’s worst attendance record—and submitted expenses on 22 days he was recorded as absent. Boyland has claimed reimbursements for being in Albany while his Facebook comments revealed him to be elsewhere—including North Carolina. His is a particularly egregious example of how New York lawmakers operate on an honor system for claiming taxpayer reimbursements. Few are aware of the rules for cashing in, no one audits their

SEPTEMBER 26, 2011

claims and there is no system to check whether they were where they said. The Assembly finance department scrutinizes the forms, but only to ensure they’ve been

The rules say expense reports are reviewed by the state comptroller’s office, but a spokesman for that office said no audits have been performed in recent memory. “When members file travel documents, they are under oath and are aware that they are at risk of prosecution for

“They don’t have our schedules. Do they check to see whether we were in Albany that day? I think there’s a sense of trust that we are adults, we are elected—so I don’t know whether it gets scrutinized or not.” filled out properly. In fact, there is no way to tell whether Boyland is better or worse about claiming expenses than any of his colleagues. “There’s trust, I think, that you are giving them the right dates,” said Assemblywoman Sandy Galef, who cosponsored a bill to require more accountability on travel reports. “They don’t have our schedules. Do they check to see whether we were in Albany that day? I think there’s a sense of trust that we are adults, we are elected—so I don’t know whether it gets scrutinized or not.” The Assembly’s expense rules are spelled out in a seven-page memorandum from Speaker Sheldon Silver, which says the full $165 per diem is for overnight stays in Albany or outside a member’s district on legislative business. Members don’t have to submit receipts, except for tolls, although many do.

any false filings,” said Silver spokesman Michael Whyland. “We follow the comptroller’s guidelines, and in some areas we exceed the comptroller’s receipt requirements.” But several lawmakers interviewed for this story, including Assemblyman Danny O’Donnell, chairman of the Legislative Ethics Commission, had no idea those rules existed. “What generally happens,” O’Donnell said, “is a new member comes to an older member and says, ‘How do you do this?’ ” Over the past decade, Assembly members have billed taxpayers for more than $23 million in travel-related expenses. Boyland has received more than $212,000 since he was first elected in 2002, claiming $35,000 last year on top of his $79,500 salary. Boyland claimed he went to Albany almost every week of the year, despite

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Joey Carolino

having attended session just 20 days out of 60. From September 2010 to July 2011, he claimed he’d spent at least 177 days in transit to Albany. On Facebook, however, Boyland left a different trail. At 7:50 p.m. on Sunday, Oct. 24, he wrote on the social networking site that he was in North Carolina with his family after a reunion weekend in Virginia. Yet his expense report filed later in the week claimed he drove 175 miles from Brooklyn to Albany that day, too. Four days later, he told his Facebook friends about a campaign fundraiser in Brooklyn that night, and many of them wrote back to thank him for it. His expense forms claim he was still in Albany that night, however, and returned to Brooklyn the following day— allowing him $956.50 in reimbursements for the week. Michael Bachrach, an attorney representing Boyland, declined to comment on his client’s whereabouts on the days in question. The assemblyman’s trial is scheduled to begin Nov. 1. Galef, who represents parts of Putnam and Westchester counties, said the sheer number of days Boyland claimed to be in Albany was surprising—and pointed to reasons why the Assembly needs to tighten its standards for claiming expenses. “It is a good chunk of money from the state, and I think we have to say to the taxpayers, ‘We’ve accounted for our time,’ ” she said. “Not that I don’t love Albany, but why would you want to be there unless you really had to?” lnahmias@nycapitolnews.com

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Who Watches The Watchmen? Cuomo’s new ethics bill may be plagued by old problems By Laura Nahmias

By Arthur “Jerry” Kremer

n the afterglow of Gov. Andrew Cuomo’s first legislative session, New York’s new ethics reform bill was hailed as a landmark achievement. But as the state gears up to put the bill into practice, critics say there is little to distinguish the new Joint Commission on Public Ethics from former Gov. Eliot Spitzer’s old Commission on Public Integrity. The new JCOPE, they say, will only be as good as its appointees and as bad as its potentially exploitable loopholes. “You need to appoint people committed to doing the right thing, not the politically expedient thing,” said David Grandeau, former chair of the New York State Lobby Commission. “They have to do it out in the open, out in the full glare of the media spotlight, and not hide behind closed meetings and the FOIL law.” Experts say stringent eligibility requirements for JCOPE members might make finding appointees difficult, while some loopholes in the new bill were disturbing. For example, a minority of JCOPE members can block an ethics investigation, a provision seen as insulating legislators from partisan attacks. JCOPE was intended to correct the mistakes of CPI, which found its own integrity questioned throughout the short-lived Spitzer administration. CPI members were too inclined to do Spitzer’s bidding, Grandeau said. “You could always tell who Spitzer appointed,” he said. “Other people got the pointy end of the sword and Spitzer folks got a gentle handshake.” Good-government groups agreed CPI was not as effective as it could have been. “They’ve been criticized for their lack of transparency since they came into office,” said Russ Haven of the New York Public Interest Research Group. Cuomo, like Spitzer, stays closely involved with his appointees, who are almost uniformly drawn from an inner circle of colleagues he has built since his earliest days in elected office. This could lead to a similar situation if appointees feel more beholden to Cuomo than the public, experts say. Indeed, even with Cuomo’s

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Keeping New York Open for Business It may have taken eight years, but New York has finally passed a new power plant siting law. Not a moment too soon, I would add. New York State businesses can exhale and begin the process of planning for our energy future.

Kayla Galway

Gov. Andrew Cuomo and legislative leaders announced an ethics deal back in June.

appointees, and Mitra Hormozi heading the CPI until it was disbanded last month, there was much nitpicking over the politics behind CPI advisory opinions, ethics officials said. In a little-noticed June advisory ruling that even CPI spokesman Walter Ayres called “highly unusual,” the commission reversed an opinion it had made six months earlier and barred some former state employees from lobbying on certain issues for life. Grandeau, who was covered by the ban, chalked it up to political vindictiveness from CPI members. JCOPE will be up and running by Dec. 21, but the new cast of characters has been slow in coming— in part because most people in state government, such as former commission heads and recent lobbyists, are disqualified. That leaves few qualified nominees from whom to choose, said Karl Sleight, the former executive director of the New York State Ethics Commission. “I think it’s going to be extraordinarily difficult to find people to fill those spots,” he said. The man highly favored to be Cuomo’s appointee as chair is Jeremy Creelan, who helped the governor with his campaign for attorney general in 2002, worked at NYU’s Brennan Center, and has been serving in the administration as special counsel on public integrity and ethics issues. The new law also relaxes a ban on gifts, which legislators cheered after the old CPI ruled they could be penalized for accepting gifts of more than nominal value from lobbyists. “That used to drive people crazy,” Sleight said. “A black cup of coffee was acceptable, but a mocha latte wasn’t. When you start to slice

the baloney that thin, it’s not really helpful, and you start to lose credibility, too.” Sleight and others have catalogued a list of loopholes in the new law that they say combine to form glaring gaps: A member of a major political party can have an investigation blocked, but not someone from a minor party. A minority of commissioners can block any investigation. Whether state workers and legislators need to disclose outside business income is in some cases up to their businesses. Lawyers don’t have to report relationships with old clients, just new ones. One new provision allows lawmakers to attend paid events for free in a ceremonial capacity, as long as 50 percent or more of the attendees are from his or her district. Critics say that does nothing to make government transparent but instead insulates officials from investigations. “The Yankees World Series comes to mind,” said Sleight, referring to ex-Gov. David Paterson’s ethics fine for accepting free baseball tickets. Yet an emphasis on detailed disclosure can only reveal so much, given the parade of politicians such as Sen. Carl Kruger, indicted for allegedly hiding income, said Michael Fallon, an attorney specializing in ethics and government compliance at Hinman Straub. “Carl Kruger filled out disclosure forms for years,” Fallon said. “He either chose not to disclose this income, or camouflaged it so as not to raise any flags. If you believe the allegations against him, he’s engaged in criminal behavior.” “But that’s just the reality of the ethics world,” Fallon added. “Some people are going to decide what they can get away with.” lnahmias@nycapitolnews.com

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Implementation of the new siting law is a crucial first step towards meeting our steadily growing demand for electricity. It will create much-needed jobs, facilitate out-of-state investment in New York State, and curtail the need to eventually purchase and import more expensive out-of-state power. In recent months, some have incorrectly suggested that the new siting law will negatively impact the future of the Indian Point Energy Center which provides 2,000 megawatts of clean, safe and reliable power to our region. This could not be further from the truth. In fact, closing Indian Point would effectively tear down the new “open for business” sign our state has only recently erected across our borders. Electricity costs are already high in New York State – the thirdhighest in the nation. A large array of taxes and fees place New York’s electricity costs approximately 66% above the national average. High energy costs discourage business from creating new jobs here, particularly in high tech sectors that use a lot of power. Indian Point’s safe, dependable power is a price-stable commodity; which gives budgetary predictability for businesses and residential consumers alike. We also need to heed the lessons of the defunct Shoreham, Long Island nuclear power plant. Closing that facility forced Long Island ratepayers to cover $5.6 billion in costs. That amounts to approximately $2,000 for every man, woman and child living on Long Island. Simply put, closing a highly rated facility that has already passed countless safety and environmental tests for safety and environmental impact and generates approximately 11 percent of the state's power and up to 30 percent of the total power consumed downstate defies common sense. We must stand up for bold energy policies that make good business sense and send a signal that New York is open for new business and growth. Keeping Indian Point operating will do just that. Arthur “Jerry” Kremer is the Chairman of the New York Affordable Reliable Electricity Alliance (New York AREA) and a 23-year veteran of the New York State Assembly where he served as Chairman of the prestigious Ways and Means Committee. Mr. Kremer is also a principal author of the former Article X power plant siting law. S P E C I A L

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The New York Affordable Reliable Electricity Alliance (New York AREA) is a diverse coalition of New York's best-known business organizations, labor unions, independent energy experts and community leaders working together for clean, low-cost and reliable energy solutions that foster prosperity and jobs for the Empire State.

W W W. A R E A - A L L I A N C E . O R G SEPTEMBER 26, 2011

PERSPECTIVES

There’s A Chill In The Air Why Obama Will Win Again—And Why I’m Not Excited

utumn brings the political warhorses out of the barn, with a sense the race is on. And nationally, it is. But rather than the electricity and anticipation that your correspondent, a truly old warhorse, has experienced, there’s a sourness and disappointment unlike any campaign season I can remember. It’s not just Obama’s desperate poll numbers and a stagnant national economy. There’s rage and dopiness and incipient violence aplenty out there, and precious little in the way of thoughtful solutions. And it’s not just President Barack Obama’s fault. The Republican Party has been hijacked by a combination of the invincibly ignorant and unrelentingly mean. Obama may not have the right prescription, but neither does Herbert Hoover. In spite of it all, and not because of anything he’s done, I think Obama will win. But it won’t be pretty. It won’t help bring the country out of its doldrums. And for people like myself who entered public service in order to improve every-

one’s lot in life—and who enthusiastically either a slight majority or a heavy enough thought Obama was the man to do it—we plurality to force the establishment to roll over. (Remember, disappointed Romney have precious little to get excited about. I still think Obama is right for the people are more likely to support the country, right for the middle class and other guy than disappointed Perry right for the values I stood for in public people.) Perry picks Carly Fiorina as his office. But he’s made real mistakes, and running mate as a jobs-economy-gender enabled a reactionary and angry opposi- gesture. Back in the White House, Obama tion. The ups and downs of the next 14 will finally abandon his months will illuminate what supercool, I’m-the-grown-up he did right, his limitations persona and begin a focused and the state of the nation. attack on Republicans. He Here’s how I think events will will define them as Tea Party unfold: right-wing crazies who do the For Republicans, the next bidding only of the rich. His three months will be domiintensely negative message nated by candidates slashing will focus on Social Security at each other as the truly Richard Brodsky and women’s issues, leaving weird ones disappear. Sarah Palin will run if Michele Bachmann self- behind “The Audacity of Hope” for “The destructs, and maybe even if she doesn’t. Necessity of Fear.” Obama’s legislative proposals will Mitt Romney and Rick Perry will be widely viewed as the front-runners, but go nowhere, but his poll numbers will there will be room for third or fourth improve enough to keep any other Democandidacies. Every GOP candidate will crat—a Clinton, for instance—from embrace the same ideas—a hard, hard emerging as a savior. Most of the discusright-wing catechism. Their personalities sion in the party will be about replacing Biden, which won’t happen. will be all that distinguishes them. Three weeks before the elecBoth Perry and Romney will make mistakes, but Perry will look better, tion, Obama will switch to a positive more in control, fiercer. It will be close, message just as the economy shows a but Perry will win enough delegates to small but measurable improvement. go into the Republican Convention with He will abandon any pretense of a

Earthquakes, Irene And Elections New York needs a plan for elections interrupted by disasters

he 5.8 earthquake in Virginia that shook New York on a blue-sky day last month naturally brought back memories of the terrorist attack 10 years ago, as people streamed into the street with their cell phones not working. Days later, Hurricane Irene literally shut down the city, Long Island and the northern suburbs. As if this were not enough, a 2.9 earthquake jolted upstate in the middle of the hurricane, and Tropical Storm Lee brought massive flooding and destruction throughout the Hudson Valley. I may be unique in this respect, but all of this makes me think about elections. On Sept. 11, 2001, I was campaign counsel for the leading candidate for mayor in New York City on primary election day. I had trained hundreds of lawyers to staff polling sites so the Bush v. Gore debacle would not be repeated in New York; we spent the early morning dealing with the usual election troubles

SEPTEMBER 26, 2011

of broken voting machines and disenfran- sentiment may be commendable, but has a certain ostrich-like quality. chised voters. For the moment, let’s consider only When the first plane hit, I assumed it was a small craft and kept working. natural disasters. Earthquakes can happen at any time; upstate Within the hour, of course, the suffered a 5.8 quake in 1944, primary was canceled—not and a fault line runs down pursuant to law, mind you, 125th Street in Manhattan. but by a Queens judge overHurricanes, though usually seeing voting problems. The seasonal, have a way of lasting fact that no one challenged through November. Lesser his authority to do so, even storms have flooded subways in litigious New York, underand swamped upstate counscored that it was the right Jerry Goldfeder ties. thing to do. If Mother Nature strikes while New Only afterward did the state Legislature decide how to handle the tens of Yorkers are voting, would we cancel the thousands of votes that had already been election? If a ferocious storm or freak cast in person or by absentee ballot. And earthquake hits in the middle of the day, 10 years later, there is still no plan in forcing the polls to close, would we count place if a disaster should strike either on the votes already cast? If a 20-inch snowstorm slammed Queens or Buffalo, would or immediately before Election Day. The federal government has no set we postpone an election throughout the of guidelines if events interfere with the state, or just where voters were prevented election of the president or members from going to the polls? And would we of Congress, and I am not aware of any release the partial results before the statewide plan. In 2004 the House of snowbound voters could cast a ballot Representatives, with only two dissenting several weeks later? If election records votes, resolved never to postpone an elec- and computer operations were destroyed tion as a result of a terrorist attack. This by flooding, would we let everyone vote?

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national campaign and focus on 25 or so states that get him to 271 electoral votes. It comes down to Michigan, Ohio, Florida, New Mexico, Montana and Iowa. Obama stays alive because of Hispanic votes in California, Colorado and Arizona, where Republicans realize too late that their immigration politics have hurt them. Election Day comes with Obama down three points in the national polls. He ends up with 48% of the popular vote, 273 electoral votes and no mandate to govern. What will be the lesson? Obama focused on health care when the country wanted jobs. Republicans focused on Obama when the country wanted jobs. Both political establishments lost their connection to the electorate. We have an electorate more deeply angry than in decades. We face a true decline in our national prospects. We have a political culture that is exhausted and out of touch with the way people live their lives. Our mood and our politics are nasty, brutish and loud. Richard Brodsky is a Senior Fellow at Demos, a NYC-based think tank, and at NYU’s Wagner School of Public Administration. He served in the state Assembly from 1983 to 2010 and chaired the corporations and environmental protection committees. He appears regularly as a contributing editor on WRNN-TV.

So here is my idea. We should establish E-PREP, Emergency Procedures and Regulations for Election Preparedness, to set up rules in advance of calamity. Governed by a board composed of members of all political parties from around the state, as well as former elected officials and academics, E-PREP would have the authority to postpone an election in one locale or throughout the state. The board would have to agree that the disaster met criteria such as preventing voters from reaching poll sites, cutting communications throughout a region or destroying voting machines. All votes cast up to that point would be impounded but not counted until other voters had a chance to cast ballots at a postponed date. My approach is obviously open to further suggestion, but at least it is a start. If, God forbid, New York suffers another catastrophic Election Day, we need a comprehensive plan. Jerry Goldfeder, special counsel at Stroock & Stroock & Lavan LLP, is an election lawyer who teaches the subject at Fordham Law School and University of Pennsylvania Law School. He is the author of Goldfeder’s Modern Election Law, whose third edition will soon be available from New York Legal Publishing Corp.

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David Weprin, how’s that gay marriage vote working out for you? As the Village Voice noted, David Weprin is the first victim of the political backlash from the vote to redefine marriage earlier this year. “NOM appears to have made good on their promise to wipe out anyone in New York who voted for same-sex marriage. Ironically, their first case was not an alleged RINO, one of those four Republicans who crossed the aisle in the Senate to pass the bill. Rather, it was David Weprin, a member of the Assembly, where gay marriage bills passed easily four different times. His vote was never a tie-breaker. And he’s an Orthodox Jew. Running in a district with a large Jewish population. In New York City. And he still lost!” – Steven Thrasher, Columnist Village Voice, September 13 2011

Andrew Cuomo promised Albany politicians that redefining marriage is a political asset. “What I’ve said is I believe the legislators who voted for marriage equality, this is actually going to be an asset to them in their campaign; I believe that…And I told them I’m willing to stand up and say that.” – Governor Andrew Cuomo

Some Asset

A 9th Congressional District survey conducted on election day shows that David Weprin’s vote to redefine marriage cost him election to Congress. He lost a seat that Democrats have held since the early 1920s. Andrew Cuomo couldn’t save him. Billionaires on Wall Street couldn’t save him. The Human Rights Campaign couldn’t save him.

Who Will be Next? The National Organization for Marriage is determined to hold accountable every legislator who voted to redefine marriage. It’s time for the General Assembly to change course and put the marriage issue on the ballot where the people can decide New York’s definition of marriage.

www.LetThePeopleVote.com Paid for by the National Organization for Marriage. www.nationformarriage.org.

ISSUESPOTLIGHT

Infrastructure

Under Construction The infrastructure that holds New York together is falling apart. How can it be fixed? BY JON LENTZ

ew York was once a pioneer in building ambitious public works to knit a far-flung state together, from the Erie Canal to the Brooklyn Bridge to the country’s first subway system. These days, the state is struggling just to maintain and replace aging infrastructure—from roads and bridges to water and sewer systems to dams and power lines—let alone launch 21st-century projects like high-speed trains to meet the needs of a growing population. The recent flooding caused by Tropical Storm Irene and Lee also put the state’s infrastructure needs into focus. Besides tearing up roads and train tracks and leaving a billion dollars’ worth of damage in its wake, the flooding highlighted the state’s vulnerable water infrastructure, from overflowing wastewater systems to dams and levees that were pushed to the brink. The poster child for the state’s woes is the Tappan Zee Bridge across the Hudson

River, past its useful life and in desperate need of replacement. A new bridge will cost anywhere from $6–16 billion. Hope Cohen, associate director at the Regional Plan Association’s Center for Urban Innovation, suggested rounding the cost of a bridge to an even $10 billion. Add to that about another $10 billion to meet the shortfall in the MTA’s capital plan. And another $10 billion or so for

with the Tappan Zee that needs ten of its own. Well, where are you going to get it?” It’s a tough question Gov. Andrew Cuomo and his administration will have to face sooner rather than later—and it’s even harder to answer for projects like expanding sewage plants and power lines, which don’t carry the visceral power of a crumbling bridge. But some say it’s as much about attitude and priorities as it is about dollars and cents. In a speech to the New York Building Congress last month, the Port Authority’s Chris Ward criticized the political

Daniel S. Burnstein

new governor likely wants to invest in infrastructure, if only he can round up the revenue. “Does he have the tax revenue for it?” Peters asked. “Does he have the political will to raise the taxes to make it happen? We’ve had this kind of ongoing deadlock in Albany over taxes and over who pays for what. It’s not looking good.” Of course, the state’s legacy as a builder of roads and bridges glosses over the difficulties faced in the past—and the use of innovation and creativity to move projects forward. In developing the Erie Canal, for example, then Gov. DeWitt Clinton tried to get President Thomas Jefferson to provide federal funding for it. The president refused. “So he sold shares, and he basically did some of the first, essentially, municipal bonds, and got private investors,” said Steven Cohen, executive director of Columbia University’s Earth Institute. “The price of produce that was shipped down that canal paid for the canal before it was even finished,” he said. “It so radically changed the price of shipping once you were able to ship things by barge from upstate New York and eventually through the Great Lakes and the whole Midwest.” —Jon Lentz jlentz@nycapitolnews.com

“Does he have the tax revenue for it? Does he have the political will to raise the taxes to make it happen? We’ve had this kind of ongoing deadlock in Albany over taxes and over who pays for what. It’s not looking good.”

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the state Department of Transportation’s capital program to fix and build roads and bridges throughout the state. “The MTA has come up with some innovative financing for how they’re going to cobble together their ten,” Cohen said. “I haven’t heard of any ideas for New York State DOT about how they’re going to come up with their ten, so they’re still trying to figure that out. And now you come along

environment surrounding the authority’s attempts to raise its tolls and fares. “Unfortunately, you cannot always do more with less,” Ward said. “Sometimes you must simply do more. And until that reality becomes part of our political conversation, we will be playing catch-up with the rest of the world.” Jonathan Peters, a finance professor at the College of Staten Island, said the

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Working With: • NY City Department of Transportation • NY City Metropolitan Transit Authority • Triboro Bridge and Tunnel Authority

• NY State Department of Transportation • The Port Authority of NY/NJ • NY State Bridge Authority

Kieran Ahern • President • Dan O’Connell • General Counsel

This Bridge Has Been Brought To You By… Public-private partnerships gain steam amid scarce funding BY JON LENTZ

he Tappan Zee Bridge is an outmoded span of rusting metal and concrete, and a perpetual construction zone—not to mention an integral passageway over the Hudson River. Yet even with its endless traffic jams and potholes, the bridge still offers a better path for drivers than for the state officials pondering how to replace it. When the administration of Gov. Andrew Cuomo moves forward on the Tappan Zee, it will likely look to harness private investment to help cover the cost, estimated to be at least $6 billion, and potentially more than twice that. “We have to look at creative ways to fund these projects,” said Westchester County Executive Rob Astorino, who has been pushing the state to replace the Tappan Zee. “That could and probably will take one of those public-private partnerships. But we have to have the will to do it.” Public-private partnerships are starting to gain steam across the U.S. as a way to fund essential public works when infrastructure is aging and government finances are tight. They rely on private companies to pick up some share of the construction and operation of public works, in exchange for a share of the revenue that would otherwise go to government—whether by financing a project, running it or some combination. In New York, proponents say publicprivate partnerships won’t get off the ground unless the Legislature removes rules that bar design-build procurement, in which the same contractor plans and constructs a project. Lifting that ban will make projects vastly more efficient, say companies involved in the process. “The key right now is getting the legislation passed,” said Samara Barend, the strategic development director for public-private partnerships at Aecom. “There’s an education process to be done with some legislators. Public-private partnerships are complex, and there are valid concerns. The key is to create a clear and transparent process.” State Sen. Charles Fuschillo, chair of the Transportation Committee, is holding a second hearing on public-private partnerships and other alternative project-delivery methods this month. Last month Cuomo met with his budget director and his transportation and environmental commissioners to consider Tappan Zee options. “As New York and all states look at their funding picture, it’s not just about the

SEPTEMBER 26, 2011

funding; it’s also about project delivery,” said Transportation Commissioner Joan McDonald. “Along with different projectdelivery methods comes greater efficiency in how we deliver those capital projects, and greater efficiency allows us to do more projects with the dollars we have.” Public-private partnerships can shift more risk as well as potential reward to private contractors, who in many cases are charged with completing tasks by a set deadline and bear any costs for delays. They aren’t limited to roads and bridges, either: The Port Authority’s Terminal 4 at JFK International Airport was built with a public-private partnership in 2001. The partnerships are touted for getting projects done more cheaply, more efficiently and on time, without the cost overruns that often plague major publicworks projects, though critics say they have yielded mixed results in practice. Edward Lucas, a board member of the Public Employees Federation, criticized public-private partnerships at a State Senate hearing in May, saying they would raise costs for taxpayers. He cited the 2008 lease of Chicago’s parking meters, which brought in quick cash to balance the budget but will cost the city billions of dollars in foregone revenue over its 75-year term. He also offered examples of “noncompete” clauses that prevent upgrades on roads or new construction that could threaten a toll stream, and charged that partnerships would prompt state agencies to rely more frequently on outside “expensive consultant engineers” instead of their own staff. “It is tempting to believe that a publicprivate partnership would produce massive new funds for infrastructure construction,” Lucas said. “But that is a false promise. There is no such thing

as free money. The underlying source of revenue is the same—either tolls or taxes. Public financing and public design will produce better results at lower cost.” No two public-private partnerships are exactly alike. They can shift any number of functions from a government agency or authority to a private contractor; from designing and building to maintenance and operation. “There’s less of an ability, if a project goes over budget, to put your hand out and get more money now,” said Barend, who explored potential state publicprivate partnerships as executive director of the State Asset Maximization Commission under Gov. David Paterson. “That option doesn’t exist. You need budget certainty in big, complex projects. Agencies can’t take the risk any more,” she said. “That’s where public-private partnerships are really favorable, and the fact there is now a growing amount of federal financing available to help lower the cost of capital for these projects has increased appetite for them.” Yet even supporters acknowledge public-private partnerships are not a silver bullet. Existing bridges and roads that bring in significant revenue are attractive to the private sector, but less lucrative facilities may be a harder sell. Some municipalities have had to buy their way out of agreements that turned out to be bad deals for them, while other projects, such as the Port of Miami Tunnel in Florida, have proven to be big money-savers. One pioneering project in New York slated to use a public-private partnership is the Goethals Bridge, which connects Staten Island to New Jersey. A private partner will design, build, finance and maintain the bridge, while the Port Authority will retain ownership and continue to set tolls. The authority hopes to send a request for proposals to three finalist companies by the end of the year.

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Daniel S. Burnstein

The arrangement won’t save money: Port Authority Executive Director Chris Ward has said the deal could add $100 million to the total cost. “The big advantage for us is that it gets us a new bridge before we have to start paying for it,” said Port Authority spokesman Steve Coleman. “The downside is it will ultimately cost more than if we had done it the traditional way. It will cost more. How much more, until we complete the process? I don’t think we know an exact number.” Jonathan Peters, a professor of finance at the College of Staten Island, said the Port Authority is resorting to a private partnership because it spent so much money on the World Trade Center site and is reaching the limits of its bonding capabilities. “By PPPing the Goethals Bridge, you take it off the books of the Port Authority,” he said. “So instead of the Port Authority funding it through their tax-free bonds, they’re funding it through a private investor. The advantage is it takes a billion dollars or whatever to fund the Goethals off their books, and they get another billion dollars to lend out for some other purpose.” Peters questioned whether the Tappan Zee would be as attractive to potential private partners. Local leaders, however, say that after a decade of neglect, they’ll be happy with whatever method can get the crumbling bridge replaced. “Once we say yes to a new bridge, the money will follow,” Astorino said. “That will be the easier part. But right now they haven’t figured out where they want to go with a new bridge. They haven’t picked a design. They haven’t given final approval. We’re not even into a final environmentalimpact statement. We don’t even have a draft impact statement yet. After a decade of studies, it’s gone nowhere so far.” jlentz@nycapitolnews.com

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Paying The Price

tics, and it’s created a sense that somehow you can do it for nothing.

Andrew Schwartz

Port Authority head Chris Ward says it’s time to pay the piper

veryone wants to build something new, but nobody wants to pay for it—except Chris Ward. The Port Authority executive director proposed drastically higher tolls and fares and was pilloried by the governors of New York and New Jersey, who later accepted a smaller increase— and have since done nothing to quash speculation that Ward will soon be forced out of a job. But Ward is unbowed, telling The Capitol that the people who use roads, bridges, airports, rail systems and other transportation infrastructure need to dig deeper to bring them up to modern standards—because the price of not doing so is too high. What follows is an edited transcript:

The Capitol: What’s it like to be the one voice calling for higher fees? Chris Ward: Politically, right

now, it’s a difficult position to take. The infrastructure that was built a hundred years ago—the cost to maintain it is high. And if we don’t take care of it, then we’re betraying it.

TC: It’s not surprising people don’t want to pay more. CW: We’ve lost sight of what really creates wealth and creates a quality of life, when we don’t recognize that infrastructure makes everything else possible. The price of a pair of blue jeans or a slice of pizza goes up. But somehow tolls and fares are the last dollar everybody reacts to, when it’s really the best investment.

TC: So how can you change that dynamic? CW: It’s been tough. The whole paradigm of somehow not investing in our future has skewed poli-

VOICES Robert Sinclair Jr. Manager of Media Relations, AAA New York

Q: Why is our infrastructure falling behind? The previous state legislators and governors that have been kicking the can down the road, probably since 1992 when they began to raid the dedicated highway and bridge trust fund, are to blame. The continued practice of debtbased financing is part of the problem. Using motorist-related fees and tolls as a sort of cash cow to help out when there’s fiscal mismanagement and difficulty is part of the problem.

Q: What could happen if there isn’t more investment? We’ll see a continued deterioration of our roads and bridges, like the BrooklynQueens Expressway, which is terrible condition. It’s an outdated design, and it’s falling apart. Same for the CrossBronx Expressway. In the extreme, it could be another Mianus River Bridge,

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Room At The Top

TC: Before the toll battle, you

Looking for new transportation leaders

were a loud voice for raising airport user fees. CW: Unfortunately, it was deadon-arrival down in Washington. It’s a user fee—it’s not a tax—so people can avoid it if they choose. And airport operators are not going to price themselves out of a market. I’ve called for tearing down the entire central terminal at LaGuardia and building a new structure that matches the grandeur of New York.

When Gov. Andrew Cuomo released detailed schedules of the people he met with during his first eight months in office, the names of MTA Chairman Jay Walder and Port Authority Executive Director Chris Ward were missing. The revelation did nothing to assuage those who fear Cuomo, a self-professed “car guy,” pays too little attention to mass transit and the financial crunch facing both agencies. Now Walder is leaving for a job in Hong Kong, Ward is widely expected to be forced out soon, and New York’s business and political leaders wonder who will have the stature to fill their respective shoes. Cuomo gets to pick their replacements. And while the rumor mill has been silent on any leading candidates to run the Port Authority, a search committee has twice met to consider candidates for a new MTA chief. Committee member Gene Russianoff of the Straphangers Campaign said it’s too early to say what they will conclude. “There are two models. One is a transit professional, which I think a lot of the transportation groups like us… tend to favor. It is also possible to have someone modeled after [former chairman] Dick Ravitch, an independent businessman,” Russianoff said. “We’ve seen dozens of résumés that span the gamut, from across the country. Most of them were transit professionals.” The MTA in particular is in dire financial straits, with no clear way to pay for billions of dollars’ worth of planned work. “They need somebody who has more focus on management and strong financial skills and political skills,” said Kathryn Wylde, president of the Partnership for New York City. “In times of crisis, the best results have come from someone of stature, like Dick Ravitch, [former chairman] Bob Kiley, Jay Walder.... These are not the kind of names that are floating around.” —Adam Lisberg

TC: Do any politicians secretly tell you they agree with you? CW: No. They say, “I’m thoroughly committed to infrastructure, but I’ve got a lot of other issues I’m going to worry about.” Infrastructure doesn’t vote, in a way. Education votes. Health care votes. Pension votes. But infrastructure doesn’t vote, and it’s sort of invisible to people. You’re not going to galvanize a big voice by talking about infrastructure. TC: Are you speaking up on this because you expect to leave the Port Authority in a blaze of glory? CW: It’s not a matter of I think my time is short or I think my time is long. I would say the same thing no matter what my role is. —Adam Lisberg alisberg@nycapitolnews.com

another Schoharie Creek Bridge, or another Steinway Street overpass falling onto the Grand Central Parkway.

cuse, Rochester and Albany could all benefit from that kind of thinking.

Q: Where should funding come Steven Cohen Executive Director, The Earth Institute at Columbia University

Q: How should New York invest in its infrastructure? In New York City, because of our investment in the Delaware watershed, most of the water that we drink does not have to go through advanced filtration processes. If we had to, we would probably have to build a $5 billion filtration plant, and the operation and maintenance of that plant would probably be hundreds of millions of dollars a year. Instead we spend $200 million to $300 million a year on protecting the watershed, by paying farmers to do certain things and buying up land. Using ecosystems for pollution filtration is one of the things that we should be thinking about in general, and New York City has done that. Buffalo, Syra-

from? People have to get used to paying for infrastructure. We’re going to have to generate more money in the future than we have in the past, because some of the stuff that we built a hundred years ago needs to be repaired and replaced. That’s not going to stop. Just like people get older and they need hip replacements, the same thing is true of the infrastructure.

Richard Anderson President, New York Building Congress

Q: In what shape is New York’s infrastructure? The overall picture is mixed. In some ways the bridge and highway system is better than in many other states, but in others, we have deficient bridges, and we have a backlog of roadway needs. The MTA needs continued capital funding,

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which is far from assured, and the state Department of Transportation and the Thruway Authority likewise need multiyear financing for their capital programs.

Q: Where will the money come from? The state Department of Transportation program, to me, is easier to fund, because user charges should fund all of it. The MTA, you can’t have user charges alone, or you won’t have an effective regional transportation financial plan, because public transportation can’t pay for itself. It can pay for part of it, like it does, but it can’t pay for itself. It needs to be subsidized. But highways and bridges do not have to be subsidized. Q: Are more tolls and fees politically viable? People have demonstrated a willingness to pay for reliable transportation if it’s provided. I think the reluctance is on the part of elected officials who fear that voters will react badly, but I don’t think they will. I think they’ll react worse to deficient transportation.

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The Job Question State infrastructure projects to be prioritized through Cuomo’s regional council network BY ANDREW J. HAWKINS

f you build it, they will come. That’s what Kenneth Adams, Gov. Andrew Cuomo’s top economic development advisor, believes about the administration’s plan to repair the state’s sagging infrastructure while creating opportunities for the private sector to grow and expand the number of jobs in the state. “It’s much harder to say, ‘Go build your factory, sir, and maybe we’ll bring your road and water and sewage for you next year.’ It doesn’t work that way,” said Adams, president and CEO of the Empire State Development Corporation. “That’s one of the fundamental requirements of govern-

Adams said. “The large statewide initiatives that are multiregional rest with the chairman’s committee, which gets to referee.” The state’s 10 regional councils are developing plans that will be submitted in November in competition for $200 million in state money this year. But not everyone thinks promoting public-works projects as job creators is the wisest strategy. Kevin Burke, president and CEO of Con Edison, said the state needs to do a better job defining the benefits of certain infrastructure projects. “Many projects you see now are in terms of, ‘I’m going to build a project, and it’s going to provide so many jobs,’ ” Burke said recently at a public forum on

Invest in

Infrastructure

“If the primary benefit of a roads project is jobs, why don’t we buy one cobblestone and line up a bunch of people, have them dance around, and then 99.999 percent of the money can go to labor?”

Daniel S. Burnstein

ment: to make appropriate investments the future of infrastructure in Manhattan. in infrastructure that trigger a private- “The primary benefit of the project should not be jobs. If the primary benefit of a sector response.” But which roads and sewer systems roads project is jobs, why don’t we buy one will receive state money for those cobblestone and line up a bunch of people, critical upgrades will depend almost have them dance around, and then 99.999 entirely on Cuomo’s new network of percent of the money can go to labor? 10 regional councils. Adams said each That’s not the benefit of the project.” ahawkins@nycapitolnews.com one will be responsible for identifying economic development needs, then seeking state and federal funding. “The councils will rank their region’s infrastructure needs. They’ll prioritize them,” Adams said. “And that means, no offense, a bureaucrat on Wolf Road at [Department of Transportation] headquarters reading some study isn’t alone in making the DOT capital plan decisions or the DOT investments, limited as they may be.” Multiregional infrastructure projects will be up to a committee that brings together leaders of the 10 councils with 13 business executives, advocates, union heads and higher education leaders from across New York. “Think high-speed rail. Think electricity transmission, power lines. Think water, sewage, dredging. Even ESDC President Kenneth Adams says infrastructure bridges. Marcellus Shale,” investment is crucial to job growth in New York.

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Design Now—Be Ready Engineering investment will reap economic dividends for New York State n

Economic Growth: Funding for transportation, the environment, renewable energy, brownfields and related development can be the catalyst to promote economic expansion. Jobs Creation: A plan that invests $5 million in the state’s economy will create more than 150,000 jobs initially, and more than double that in spin-off economies, related suppliers and material suppliers. Improved Safety and Mobility: Infrastructure upgrades reduce commuter time on public transit and highways, and save lives and billions lost due to poor road conditions, delays and related accidents. Enhanced Quality of Life: Traffic relief, safe roadways and bridges, better transit systems and access to clean energy, clean water, and safe waste water disposal improve the lives of all New Yorkers.

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Leaders in the business of engineering www.acecny.org

SEPTEMBER 26, 2011

New York Infrastructure Status Update

ew York’s infrastructure isn’t just roads and bridges. It encompasses the systems that help New Yorkers meet their basic needs and provide the backbone for the economy—everything from clean drinking water and navigable waterways to highspeed trains and high-speed Internet. So just how well is New York doing? —Jon Lentz

Aviation New York has the country’s busiest flight space, with three delay-prone hubs at LaGuardia, John F. Kennedy International and across the river at Newark Liberty International. In his campaign last year, Gov. Andrew Cuomo cited billions of dollars lost to traffic congestion each year and called for upgraded “Next Generation” air traffic control systems and expansion of Orange County’s Stewart International Airport, which the Port Authority took over in 2007 to help expand flights in the region. Jeff Zupan of the Regional Plan Association says runways at JFK and Newark must also be expanded, with initial steps taken now. “One has to look at demand and supply to see how they match or don’t match,” he said. “In the case of the airports, there’s barely enough supply to meet the demand.”

Bridges New York’s bridges were in bad shape before Tropical Storm Irene, with over 2,000 of them structurally deficient—and that number could shoot up as upstate recovers. “Before the storm, New York’s bridges were a patient in serious condition,” Sen. Chuck Schumer said. “Now, in the eastern part of the state from Westchester all the way up to the Canadian border, many are in intensive care and getting worse by the day.” With many bridges built over 50 years ago, some aren’t wide enough for modern cars; others weren’t designed for heavy trucks; and many are past their expected life spans. Cuomo has called for reforming the Dedicated Highway and Bridge Trust Fund, but it’s unclear how he’ll find more revenue for highway and bridge projects when the fund is now largely used to pay off its debts.

Drinking Water Nearly 10,000 public water-supply systems provide almost all of New York State’s drinking water, with water-quality tests conducted annually. New York City’s unusual unfiltered system relies on environmental protections in its upstate watershed to keep the water clean. The city is also increasing transmission capacity by building a third water tunnel, the largest capital project in the state’s history. Steve Cohen of Columbia University’s Earth Institute said the city’s decision in 1984 to dedicate revenue for drinking water and sewage treatment illustrates a basic infrastructure principle. “You have to basically develop recurring revenue streams,” Cohen said. “We used to not have water bills in New York. It was part of a general tax—of your property tax and other taxes. But because of the needs of financing sewage-treatment plants and the needs of financing a water system that was aging, they created the Water Board, and now if you own a house, you pay a water bill every year.”

Energy New York has sufficient energy resources, but what worries some experts is transmission. “It’s no secret in New York that we have an older system,” said Gavin Donohue of the Independent Power Producers of New York. “Transmission infrastructure and the ability to move power needs to be improved in New York State. We’re hopeful that will be a priority of the New York Power Authority in the future.” Some older power plants have also been “repowered” with modern, cleaner technology in recent years, and the new Article X law will streamline permitting for new and repowered plants. Cuomo wants to close the Indian Point nuclear plant, however, and it’s unclear how the state would replace its power. Others have called for more investment in “smart grid” technology to make transmission more efficient and encourage renewable energy.

SEPTEMBER 26, 2011

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Internet Cuomo has called for a “Connect NY” broadband program to expand high-speed Internet access to all areas of New York, but the state is already doing fairly well on Web access. More than 99 percent of all households had access to broadband Internet in June 2011, though not everyone is connected. Broadband speeds are improving too: New York is the fifth-ranked state, with 61 percent of users reporting speeds higher than the Federal Communications Commission minimum of 4 megabits per second. “More needs to be done to improve affordability so more are connected,” said Assemblywoman Donna Lupardo, who chairs the Legislative Commission on Science and Technology.

Ports and waterways Some of New York’s infrastructure is natural, such as the ports in and around New York City, and major waterways that have served as passageways for trade and commerce for hundreds of years, like the Hudson River. The Erie Canal was one of the country’s early major infrastructure investments, initially ridiculed but ultimately a key economic boon for the region. The canal, no longer the major economic artery it was, has been maintained as a recreational and historic destination. New York’s ports handled 96 million tons of waterborne traffic in 2005, ranking it 11th in the nation, according to the American Society of Civil Engineers.

Trains Cuomo has emphasized high-speed rail, calling for 100-mile-per-hour trips from New York City to Albany, and between Albany and Buffalo. The state has a section of the country’s busiest high-speed rail line, the Northeast Corridor, and lines connecting to New York City are projected to be the best locations for further investment in terms of ridership gains. “In a nutshell, I would say we have better rail service here in the Northeast Corridor than any place in the country, but we’re a long ways from world-class high-speed rail,” said RPA’s Petra Todorovich. Cuomo has secured some federal funding rejected by other states, though it’s uncertain how much more the Obama administration will invest in high-speed rail with an unsympathetic Congress. The governor has also called for a national rail freight plan to ease truck traffic on the state’s highways.

Roads and highways A reformed, dedicated state highway and bridge trust fund would help repair New York’s highway system, which experts say is among the worst in the country, should Cuomo succeed in refinancing it. Nearly half of the major roads are in poor or mediocre condition, and a similar portion of major urban highways is congested. “What business would want to relocate here, with such shoddy roads?” asked Robert Sinclair Jr., a spokesman for AAA New York. “You’ve got the constant deterioration with the excess reliance on trucks in our area. A study we did years ago shows that the average truck does the damage of 2,000 cars.” Sinclair said New York City has more wear and tear on its roads than other major U.S. cities because it lacks a freight rail path into the heart of the city, despite almost a century of planning for a freight train tunnel from New Jersey to Brooklyn.

Mass transit The MTA is in a financial pickle, trying to find ways to cut $9–10 billion from its capital plan while pushing ahead on aggressive projects like East Side Access, the Second Avenue Subway and several other major expansions. Other systems are facing their own financial struggles just to maintain their bus and rail fleets. The agency recently announced plans to take on $15 million in debt serves to help fund its capital plan, a move that State Comptroller Tom DiNapoli warned could lead to more future fare increases. Still, Cuomo has called for the state to develop “world-class mass transit systems,” while addressing the MTA’s capital program deficit and making the jumble of upstate transit systems more efficient. He’ll also have to name a leader to take the reins from Jay Walder, the celebrated MTA chairman, who is headed for a job in the private sector.

Wastewater New York has $21.8 billion in wastewater infrastructure needs, according to the American Society of Civil Engineers. Like drinking water, the state has many systems across the state, some better than others—but many of them are vulnerable to overflowing during heavy storms. “A big part of Mayor Bloomberg’s long-term 2030 plan is [a] significant capital investment plan to deal with that: to redirect some runoff to make sure it doesn’t go through the wastewater treatment plants, and to upgrade wastewater treatment plants to make sure they can deal with that kind of flow,” said Hope Cohen of the RPA. “If you go to smaller places, you may not have sewers; you may have wells and septic tanks. You may not reach wastewater treatment plants as readily.”

THE CAPITOL

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SEPTEMBER 26, 2011

EXPERT ROUNDTABLE Infrastructure Joan McDonald Commissioner, New York State Department of Transportation

Q: In what shape is New York’s infrastructure? JM: Our transportation system is one of the oldest in the country. We also feel the impact of harsh winters—and a fairly harsh hurricane in the last couple of weeks. Many of our roads and bridges were built before the interstate highway system. Our downstate parkways were built to accommodate vehicles of a much different size and weight and in a time when the vehicle protections weren’t as high. We have a mix of roads and bridges that require replacement, and we do that on an ongoing basis, first and foremost to make sure that infrastructure is safe.

concrete plans on how to invest in its infrastructure? JM: New York State DOT gets its capital funding as part of an annual appropriation through the budget process. We’ve been focusing primarily over the last several months on the federal reauthorization legislation, because some of the proposals would have been extremely detrimental to New York State. We were very pleased

engage in the discussion along with many, many others for funding, but first and foremost to have a rigorous capital-planning process and a project-delivery process, so that the money that comes to the department is spent and invested wisely and as quickly as we can. That’s what I feel my priority is as the commissioner. Yes, it’s to advocate for additional funding, but it’s really important to

funded. The impact of that means maintenance costs are higher than they should be because of deferred and neglected maintenance over the years. The bottom line, though, is that the physical infrastructure is the heart of the state’s economic and social infrastructure. There’s no way to have a thriving economy in the state without making sure that the infrastructure is sound.

Joan McDonald

Howard Glaser

Charles Fuschillo

that both houses of Congress passed a six-month extender and the president has signed at the current levels, at the current program authorizations, so we’ve been focusing on Washington.

have a solid capital program that justifies the funding.

Q: How will the administration

Q: Where will the money come from? JM: I feel very strongly that because of interstate commerce and interstate travel, the federal government has been and should continue to be the primary funder for roads and bridges. Going back to the interstate highway system of the ’50s and the first ISTEA legislation in 1991, the federal government has stepped up to the plate and made significant investments in our transportation systems. That discussion is an interesting discussion these days, but I believe it should continue to come from the federal government.

Q: When will the state put forward

Q: What’s your top priority? JM: There’s also from a publicpolicy standpoint a need for health care and housing, and as the commissioner for transportation, my job is to

Howard Glaser State Operations Director, Gov. Andrew Cuomo

Q: In what shape is New York’s infrastructure? HG: The state’s infrastructure is highly overburdened and under-

invest in infrastructure? HG: We have to find innovative ways to finance infrastructure. You can’t infinitely raise fees, tolls and taxes to pay for infrastructure. We’re looking at public-private partnerships and innovative financing structures. That’s going to have to be part of the future.

VOICES Hope Cohen Associate Director, Regional Plan Association’s Center for Urban Innovation

Q: Is New York’s infrastructure in good shape? Some things are working better than other things. Generally speaking, if a piece of infrastructure has a dedicated revenue stream, it’s in better shape. Classically, the Port Authority-maintained bridges are the best, having the best toll stream. MTA-maintained bridges are next, and New York City-maintained bridges do less well, for example across the East River, because they do not have dedicated toll revenue. Drawing from that from the city and the five boroughs, that’s kind of true across the board. If there’s dedicated revenue stream associated with a piece of infrastructure, it’s generally maintained better; and if there isn’t, if it has to be supported out of some more general pot, it can vary. Q: How can the state invest more in its infrastructure? Many people think the most promising paths are going

SEPTEMBER 26, 2011

to be some kind of public-private partnerships. Some things have already been done, including where you have private investment, and in some cases private operation and maintenance, and there are a variety of different models for doing that. It’s a very much a case-by-case [thing] in terms of the type of infrastructure and the locality in question.

Ross Pepe Treasurer, New York Roadway and Infrastructure Coalition

Q: What is the impact of New York’s aging infrastructure? It has great impact on local communities, businesses, residents, schools. Every entity that requires transportation to move people, goods and services across their landscape is being affected by the poor conditions. Mass transit is another area where these systems are old, deteriorated and need repair. Constant effort is required to keep these infrastructure systems in place, and unfortunately, the money has not been applied in a way that there’s sufficient resources to keep the system in a state of good repair.

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Q: How did it get to this point? Down in Washington, it’s the inability of Congress to come together and get a new highway transportation act in place. It expired eighteen months ago, and still they do not have a new one in place. They are dealing with continuing resolutions with fewer dollars, reducing the program, cutting the aid to New York State, as well as every state across the nation. It’s just constant bickering in Washington. In New York, the funds are stretched beyond the capacity of the dedicated highway fund. No one is addressing that aspect of where the money is coming from.

Q: What can Governor Cuomo do? We have to take a good, hard look, and it’s time to begin thinking about a steady revenue stream that can supply the resources for New York State to address the infrastructure’s decline, both on highways and bridges and mass transit, and other areas, as well. The infrastructure is broad. It doesn’t just deal with transportation; it deals with clean water, drinking water and institutional establishments. There’s a whole range of infrastructure that’s being shortchanged today that cannot be upgraded because of a lack of funds.

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Q: What about reforming the dedicated highway and bridge trust fund? HG: I don’t know the cost [of reforming the trust fund], but we’re looking at the reform of that, absolutely.

Q: Will alternative financing stretch tax dollars enough to meet the state’s needs? HG: As the governor has said, you can’t tax your way into making the state stronger. Another element

Rob Astorino

it’s very expensive to repair and maintain these roads. We’re going to continue to have expenses from these storms long after the water has receded.

State Sen. Charles Fuschillo Jr. Chair, Senate Transportation Committee

Rob Astorino Westchester County Executive

Q: In what shape is the state’s infrastructure? CF: It’s in desperate need of repair. It’s critically important to maintain and improve our infrastructure for a viable economy. I firmly believe that once the state makes the appropriate capital investments, it goes hand-in-hand with an economic boost to create jobs, but also moving goods and services. More and more people travel on our highways, and they are in need of constant maintenance. In a lagging economy, funds and capital investments have been short.

Q: When might we see investment by the Cuomo administration? HG: I think as we move into the new legislative year you’ll be hearing a lot more about this. Q: What lessons were learned during the hurricane response? HG: The state’s infrastructure held up remarkably well, given the power and force of these storms. We had, at one point, almost four hundred roads and bridges that had been closed as a result of the storm. Today that number is just a handful. So we’ve demonstrated that the state has the ability to respond quickly to open up transportation and infrastructure lifelines. That’s the good news. Of course, the bad news is

THE CAPITOL

Q: In what shape is New York’s infrastructure? RA: New York’s infrastructure right now is aging, and it’s in desperate need of attention. The Tappan Zee Bridge is Exhibit A. This bridge has been studied now for a decade. They’ve poured over $83 million into studies, and they’ve set aside not a single cent to actually fix the bridge. The problem is the bridge needs to be replaced. I think everybody realizes that now. They’re spending about $100 million a year in repairs just to keep it open. I think the governor understands the necessity to replace that bridge, and I think he can get it done.

Q: What should be done to increase investment?

that’s important to New York is federal support. New York State receives $3 billion a year from the federal government to support transportation needs. That funding is under serious attack right now in Congress. So one of the things we’re working on very hard is to make sure that the U.S. Congress understands that not only our state but every state economy is dependent on maintaining the transportation networks, and that that funding flow needs to continue.

highways and bridges and tunnels, and a lack of jobs, and [that] could continually lead to a downturn in the economy here in New York State. But I’m confident that the state will make an investment in its infrastructure as we proceed in the next session.

CF: One of the strategies that I’ve been pushing for a while now is the option of public-private partnerships, and funding an infrastructure bank. Those two options are critically important for a successful capital program as we move forward in this state. The public-private partnerships—I held a hearing, and I have another one coming up—work extremely well in other states and other countries, and we need to give the agencies responsible for our bridges and highways the option of entering into P3s.

Q: What is the impact on infrastructure from Hurricane Irene? CF: It doesn’t alter the picture. It just shows the ever-increasing need for money to maintain, improve and rebuild our infrastructure. I believe the governor estimated that it would cost a billion dollars for Hurricane Irene. Those are dollars the state definitely needs. The governor has made it a priority, and I’m confident that any damage that was done will be repaired, based on Governor Cuomo’s statements.

Q: What will happen without more investment? CF: We’ll see a decline in our

Q: How did it get to this point? RA: Overall in this state—and really, in this country—we’ve got to start prioritizing government and government services. Our bridges, our roads, our dams— these are important vital projects that need to get done. That’s what we’ve got to get focusing on. Mayor Bloomberg has done a good job at bringing this issue to the forefront. It’s certainly not a sexy issue. But it is important that we invest in our infrastructure because that’s where our jobs are going to be.

Q: Where will the money come from? RA: It gets down to priorities. We can’t as a state or as counties say yes to everyone that walks in the door. Unfortunately, that’s been going on for too long. We’re broke as a state, we’re broke as counties and we’re the highest taxed in the nation, awful for business, and everything’s crumbling around us. So we’ve got to have some very strong leadership on all levels that can and will say no to special interests, and will say yes to the things that government is supposed to do, like making sure our bridges, our tunnels, our dams, our roads are safe. That’s what it boils down to. editor@nycapitolnews.com

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Lift The Laws That Hobble Rebuilding Recovery Zones need relief from costly rules

areas struggling to rebuild from the burdens forced upon them by Albany. Why not make rebuilding less expensive, and why not seek to permanently lower taxpayer costs ebuilding creaky public for local governments and school districts infrastructure is an urgent priority located in the Recovery Zones? I formerly represented two counties for economic recovery across New York—but it’s all the more urgent for hard-hit by the floods, Greene and Schoharie. These communities, and areas of our state devastated others in the region, have been by flooding from Tropical struggling economically for Storms Irene and Lee. decades, and simply cannot Rebuilding roads, schools afford to pay for the artificially and other public infrastructure inflated expenses imposed is estimated to cost hundreds upon them by state law. of millions; private losses bring Rebuilding roads, bridges these amounts to well over and schools is the most imme$1 billion in the state. While John Faso diate task of government. To federal aid and private insurlower costs, communities ance will surely cover much of these efforts, state and local govern- should be relieved of the requirement to ment will be facing new, unplanned liabili- pay prevailing wages and supplements on ties. Individual homeowners, should they public construction. Typically, prevailing choose to rebuild, will also face untenable wage rules inflate public-sector construction costs by 25 to 30 percent over what financial burdens. This is a major crisis for New York. the same construction would cost in the This situation requires we rethink many private sector. The state Labor Department of the embedded policy choices imposed doesn’t conduct wage surveys to accurately by Albany that unreasonably increase determine local prevailing wages; it simply rebuilding expenses. The Legislature and accepts union collective-bargaining agreegovernor must recognize we cannot afford ments as the prevailing wage. These rules also assume that over 30 to rebuild while burdened by requirements percent of the local workforce in given which make it too expensive. New York should adopt a policy I’ve trades are represented by unions. This dubbed “Recovery Zones,” which will relieve threshold is clearly not met in many parts

SEPTEMBER 26, 2011

of the state, like the rural areas hit by the floods. The Labor Department could make a finding to this effect, dramatically lowering rebuilding expenses. There is no shortage of qualified, experienced private-sector contractors—union and nonunion—ready, willing and able to work at market rates. Communities also should be relieved from the burden of the archaic Wicks law, which bars a general contractor from bidding on a public job and instead requires multiple contracts for many public works. Virtually every independent analysis of this law over the past 30 years has found that Wicks adds an estimated 10 to 20 percent to public construction expense while serving no public purpose. In the private sector, no such arbitrary rule exists. General contractors are responsible for being on budget and on time. But in the peculiar parallel universe that is public construction in New York, multiple contracts—even though less efficient and more costly—must be awarded. Pure nonsense. Local governments and schools in Recovery Zones should also be relieved of Albany’s most expensive operational mandate—the state’s Triborough law, which keeps public-employee pay and benefits in place even after contracts

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expire. Lifting the law will let governments reset those contracts, bringing them more in line with what taxpayers in these areas can afford. New employees could also be offered new and less expensive pension options as well. All of these proposals conflict with long-standing and powerful special interests in New York. However, the state is broke; the local governments and schools in these areas are broke; and taxpayers simply can’t afford to pay gold-plated costs to rebuild. If we don’t take dramatic action to change the economics of rebuilding, it simply will not happen, and many people will just pick up and leave. Recovery Zones should be part of an effort to genuinely revive the economic prospects of these areas and permanently lower costs for taxpayers. The real goal, however, isn’t just cutting rebuilding costs—it’s attracting and retaining privatesector employers in these depressed regions. Reviving the private-sector economy by lowering governmental and taxpayer costs is the only path toward offering these areas a hopeful future. John Faso is a former minority leader of the state Assembly and was the Republican candidate for governor in 2006. He is a partner in the Albany office of the national law firm Manatt, Phelps & Phillips, LLP.

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BEYOND THE CAPITOL

Schoharie Blues In a village in crisis, residents and lawmakers wonder how to recover from Tropical Storm Irene BY SUSAN ARBETTER

story colonial has been home to Wennberg, his wife Kimberly, a nursing student, and their 8-year-old daughter, Maggie. Now he can’t wait to get rid of it, cracked foundation and all. But he can only move as fast as the insurance companies will allow him to move. “Their hands are tied,” he says. “This just isn’t covered under our policy. They asked me a lot of questions about us and our house. And basically in the end they said, ‘Now that we’ve talked, it’s official; we’re not going to help you.’ ” Like many Schoharie residents, the Wennbergs are in limbo. They don’t know if their house will be condemned or if the powers-that-be will deem it salvageable. And they don’t know when they will hear any word, one way or the other. Before leaving the house to stay with friends, they examine the pool in the backyard. Their bright white diving board sticks straight up in the air, like an obscene gesture.

t first glance, the white tents behind the Schoharie Reformed Church make the parking lot look inviting, like a yard sale. But as you walk past piles of construction debris, mud-caked minivans and makeshift tables displaying donated bottles of used cleaning products, a different scene reveals itself. The parking lot is a staging area for Bill Danielson disaster relief. Local historian Carle Kopecky in front of Schoharie’s welcome sign. The Village of Schoharie (population: largest single-span covered bridge in I saw it occurring—I have four congres1,300) was largely destroyed by flooding America. Kopecky says with some amaze- sional districts; I had a couple of members after Tropical Storm Irene last month. together and I made it clear we’re not interment, “It’s always survived, until now.” It’s a nightmare that Assemblyman Pete Just across the road from the museum ested in rancor. We’re more interested in Lopez has lived through twice in two is the Schoharie Valley Farm, famous for meeting needs.” weeks: His district stretches from Ulster Lopez must work with four members produce featured at some of the finest County, north through the Mohawk Valley restaurants in New York City, such as of Congress, two Democrats and two and then west into the Southern Tier, an Thomas Keller’s Per Se on the Upper Republicans. “Where I’ve seen it, that area hit more recently by Tropical Storm [partisanship] surface I say, ‘Folks, West Side. Lee. In all, six of the counties Lopez Farmer Richard Ball reports tens of respectfully, let’s step away, get it done represents are in crisis. thousands of dollars in crop losses, but and then you guys can debate how best “The scale and intensity of these disasmany farmers are worse off than he is. to work it out.’ ” ters has never before been seen in this So far, so good. Lopez reports the Cuomo region,” he says. “It’s unprecedented.” his isn’t the first or even the fifth “Farmers in the region have suffered Next to one of the tents, Lopez and time the village of Schoharie has twice,” he says. “They’ve lost infrastruc- administration and the state’s congressional delegation are working on creative ways volunteer Sarah Goodrich sip donated been destroyed. Carle Kopecky, the ture, and they’ve lost the harvest.” It’s natural to wonder about Schoharie’s to assist victims like the Wennbergs. One bottled water in the heat that’s finally director at the Old Stone Fort Museum, drying the region out. When asked about says that while Mother Nature is usually to survival. Does the village have what it takes idea is retroactive flood insurance, which was tried after Hurricane Katrina. Another the state and federal response to the blame, the village was initially destroyed to rebuild yet again? For an 11th time? Ball says yes. “I hear people say, ‘It’s idea is “repurposing” federal block grants flooding, he pauses for a moment. by fire in 1780 set by Tories, among others. “It’s been good. But there is so much You can detect Kopecky’s brand of never going to be the same.’ It’s not. But to communities. Lopez is also excited by a need,” he says. “The needs far outstrip humor in the village’s “Welcome” sign, that doesn’t mean it’s not going to be good. clearinghouse for nontraditional “offers of resources.” which now eulogizes the Blenheim This valley is famous for its soil. There will agricultural assistance.” “An Amish community has offered And the needs keep changing. Just Bridge, the 156-year-old covered bridge always be someone here to farm it.” But Dave Wennberg doesn’t farm; he barn-reconstruction services to farmers,” three days after the flood, the community destroyed by the flooding, with the words works at a television station in Albany. he says. The Farm Bureau is taking the was in triage mode, with most people in “Irene, You Tory!” a desperate search for relatives or basic Since then, the Schoharie Valley has He loves rural living, but he doesn’t lead on this. Says Lopez, “It’s really going to boil needs like shelter. Most were wearing faced severe flooding 10 times. But Irene need this. A little more than two weeks after the down to what’s going to happen at the white masks to avoid inhaling dust. A was the worst, Kopecky says. visitor walking on Main Street in the village The Blenheim Bridge was built in 1855, flood, he’s excited about finding someone federal level with funding. None of us can just after the disaster would have noticed and was immediately given national civil to tear down his house. He knows how predict what will happen. This is still an the mud first, then the smell, created from engineering landmark status. Up until it strange that sounds. “I am scared to death open wound.” editor@nycapitolnews.com a toxic slurry of farm-animal waste and washed away two weeks ago, it was the of the prospect. But I’m even more afraid of them saying it should be fixed the bottom of the Schoharie and not flattened.” Creek. Having endured two 100-year While some residents floods over the past 10 years, the never lost hope—like those Wennbergs are strongly considwith the white wet-vac hoses ering moving away from the village. Susan Arbetter coiling across their yards— The infrastructure of the village is reports from the others were too immersed in weak. But the relationships here are Capitol in Albany loss to think about mucking strong—as long as politics doesn’t for Central New out the kitchen. interfere with recovery, Lopez warns. York’s PBS station, “I’m not paying my mort“Early on in the response we saw WCNY in Syragage today. We’re just going jockeying by various electeds, and cuse. She hosts a to let that one slide,” says positioning to determine who would daily live radio David Wennberg, 40, as he be providing assistance,” he says. show, “The Capitol gazes from his driveway at “Who would be the ones meeting Pressroom,” and produces The Capitol the wreckage of his home. He needs. There came to be some Report, broadcast daily on television is stunned. level of political rancor. When across New York. For a decade, this two- A house exploded after its owner failed to turn off the electricity.

SEPTEMBER 26, 2011

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Bank Shot State infrastructure bank floated to boost public-private partnerships BY JON LENTZ

hile President Barack Obama pushes for a federal infrastructure bank to jumpstart private investment in public works, the Cuomo administration is considering a statelevel infrastructure bank as well. “I am a strong proponent of an infrastructure bank and public-private partnerships and design-build,” said Transportation Commissioner Joan McDonald, listing three interrelated initiatives that could help New York rebuild its vital systems. “Right now, we’re looking at everything. It’s all on the table.” In his campaign literature, Gov. Andrew Cuomo proposed a “Rebuild NY”

state infrastructure bank that would use state or federal dollars as equity to fund transportation projects. The bank would use public money to seed revenuegenerating road and bridge projects, making them more attractive to private investors who could finance the rest of the up-front costs. Under this proposal, the administration would provide hard-to-get debt financing for smaller projects in counties or municipalities, as well as create a legal framework for public-private partnerships that would otherwise need state legislation to move forward. Howard Glaser, the governor’s director of state operations, said the administration is actively exploring how to set up a state infrastructure bank. “We’re talking to the financial commu-

nity,” he said. “We’re talking to the labor unions and pension funds about how we might support an infrastructure fund. Those discussions are ongoing.” Advocates say a bank would move projects forward based on merit and provide steady financing protected from shifting political winds. But some critics say such ideas would do little to put a dent in the state’s vast infrastructure needs. “When the discussion takes place with respect to the infrastructure bank

transit, and other areas as well.” Senate Transportation Committee Chairman Charles Fuschillo said funding or creating a new state infrastructure bank is critical. “In other states there are many investors and pensions that are willing to invest funds for a return but also a capital investment in a state,” he said. “I believe those, combined with a capital program, are what we need.” Fuschillo said New York has a dormant version of an infrastructure bank, with no

“When the discussion takes place with respect to the infrastructure bank or PPPs, they have a limited application to all of the work that’s needed out in the field.” or PPPs, they have a limited application to all of the work that’s needed out in the field,” said Ross Pepe, president of the Construction Industry Council of Westchester and Hudson Valley. “We have to take a good, hard look and think about a steady revenue stream that can supply the resources for New York State to address the infrastructure’s decline, both on highways and bridges and mass

money left in its coffers, but that it set a precedent to be followed. “It was during the Paterson administration, I believe, that they raided it and swept the funds out of it,” he said. “I’m hopeful that it is at least started up again and shown that investments can be made in this state by interested parties.” jlentz@nycapitolnews.com

New York State Infrastructure Spending $4,000

State transportation infrastructure: Local infrastructure:

$3,500

(dollars in millions)

$3,000

Thruway Authority and canal system: Water-supply infrastructure:

$2,500

$2,226

$2,168

$2,058

$2,000

$2,562 $2,206

$2,340

$2,385

$1,969

$1,934 $1,867

$1,500 $500

$465

$400 $300 $274$273

$311

$254

$302

$105 $95

$80

$2,494

$2,731

$2,594

$320

$341

$370

$353

$94

$2,757

$394

$188

$147 $95

$2,531

$370 $324

$322

$244 $193

$200 $100

$314

$350

$63

$66

$2,883

$2,983

$40 $3,198

$65

$3,166

$3,444

2001–02 2002–03 2003–04 2004–05 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 Source: NYS Division of Budget

SEPTEMBER 26, 2011

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THE CAPITOL

Worth A Dam State’s dams hold up during flooding, amid regulatory successes and failures BY JON LENTZ

ropical Storms Irene and Lee unleashed record floods across New York that inundated towns and caused a billion dollars’ worth of devastation—but nearly all the state’s dams held firm against the deluge. Residents downstream of the Gilboa Dam in Schoharie County were ordered to evacuate, but the dam, which New York City has upgraded in recent years, held firm. Another dam pushed to the brink, the Vischer Ferry Power Dam in Saratoga County, withstood heavy rains, and is currently receiving careful monitoring and emergency work to repair a leak. Though the danger has passed, it was a reminder that New York’s dams need constant attention to prevent disaster— but not all of them get it. Two lower-risk dams did fail—the Echo Lake Dam in Orange County and the Camp Wiccopee Dam in Putnam County— but none of the state’s high-hazard dams, whose failures can cause more severe damage, were compromised. A handful were severely damaged and more than a dozen moderately damaged, but the state avoided the kind of catastrophic dam failures that could have dumped tons of water on towns and villages. “We saw that for high-hazard dams, very few had damage, and the ones that had damage, it was not very severe, for the most part,” said Alon Dominitz, who oversees the state’s dam safety program at the Department of Environmental Conservation. “This was really the first event that any of us can recall where there was any significant amount of damage. I think we weathered it pretty

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The New Rochelle Reservoir No. 1 Dam, which has gone without key repairs and maintenance for more than three decades, does not even have a clear owner.

well, for the most part.” The response was also helped by new state regulations issued in 2009 that require dam owners to write up and submit emergency action plans. Not all owners have complied, but having far more plans in place was a huge help during the flood response, Dominitz said. The state still faces challenges in maintaining and rehabilitating thousands of dams, Dominitz said. Like other parts of New York’s infrastructure, many dams are aging and do not meet modern safety standards. About a third of the high-risk dams are owned by private individuals or groups, such as lake associations, which face more difficulties paying for maintenance and repairs. “When we talk about bridges needing

“This was really the first event that any of us can recall where there was any significant amount of damage. I think we weathered it pretty well, for the most part.” to be fixed, we need dams to be fixed also,” said John Moyle, president of the Association of State Dam Safety Officials. “The American Society of Civil Engineers does a report card every couple years, and they’ve given the dams a ‘D.’ There’s a lot of investment needed to bring dams into compliance.” Some dams do not even have a clear owner. One of them is the New Rochelle Reservoir No. 1 Dam, which has gone without key repairs and maintenance for more than three decades. The dam blends into its leafy surroundings in Westchester County, where it holds back a reservoir surrounded by million-dollar homes. In 2007 state dam safety officials issued a complaint against New Rochelle and two other private owners for safety violations, including an inadequate spillway. The state says New Rochelle owns one side of the dam, a townhouse association owns the other side and a corporation

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Daniel S. Burnstein

called Block 138 owns the center of the dam, including the spillway. “The worst part of the dam is owned by this Block 138 corporation, which doesn’t seem to have any other assets, and whose officers we’ve been unable to identify,” Dominitz said. “There are multimillion-dollar homes all around this lake. None of the people who own those homes have taken any responsibility for the dam.” An official from New Rochelle denied the city owned any portion of the dam or bore any responsibility for it. “It’s old, and we think the state is trying to find someone to take responsibility for it,” said John Clemente, New Rochelle’s city engineer “There’s a lot of dispute over who owns the dam. It’s a hot potato.” As a result of the ongoing impasse, key maintenance and repairs continue to be neglected. A 2008 dam safety report from State Comptroller Thomas DiNapoli found the dam has problems with seepage, stability, spillway capacity and other structural issues, none of which has been addressed. The state is aware of about a dozen such orphan dams that, while rare, are one of the toughest problems for regulatory officials. As a last resort, dam safety officials can drain the reservoir, though they prefer to reach a settlement before it comes to that. “What we generally try to do is get the people that benefit from the dam, and/or the people that own the real property the dam sits on, to step up to the plate and do what has to be done to manage the dam and keep it safe,” Dominitz said. jlentz@nycapitolnews.com SEPTEMBER 26, 2011

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BACK & F O R T H

Grand New Party

ew York State Republican Party Chairman Ed Cox had a better summer this year than last—his work on Bob Turner’s campaign in the Ninth Congressional District could go a long way toward erasing bad memories of the open war between GOP members during the gubernatorial primary last year. He spoke with The Capitol about what’s going right for New York Republicans, the presidential primary candidates and how Gov. Andrew Cuomo makes it easy to be a Republican in New York State.

The Capitol: It seems as though you and the New York State Republican Party are on the upswing, with your win in the Ninth District. What’s the prognosis for the state’s GOP? Ed Cox: Yes! The New York Republican Party is back in New York State. It started with the 2009 local elections which even though they weren’t the most noticed, were the most significant. In those two elections we won the county executive race in Westchester County, in a 2-to-1 Democratic county, with a fiscally conservative candidate [Rob Astorino]. We beat Tom Suozzi, who was a very big name in Nassau County, with a virtual unknown. We won the comptrollership in Nassau County, we won the Legislature in Nassau County, in Dutchess County, in Norfolk County. That was just the 2009 election. It really redefined the politics of New York State, such that not just the Republican candidate but also the Democratic candidate for governor ran as a fiscal conservative. TC: You took a lot of heat for your candidate choices in the Republican gubernatorial primary last year, but you pushed for Bob Turner this year, and that seems like a smart move in hindsight. Do you feel vindicated? EC: Look, the object was to win, so while I did feel

TC: In the Ninth Congressional District race, why do you think the Republicans were able to be unified, where they’ve had so much trouble in the past?

“Andrew Cuomo was very smart politically. He stole our clothes. He started talking Republican.”

that we had other good candidates, to convert a really strong capable politician who’s a real fiscal conservative such as Steve Levy to be a Republican and to run [for governor]—he was clearly the strongest candidate that we had. Now, whenever you do something like that, you’re going to ruffle feathers. He would have been the most effective candidate against Cuomo. There were some people here in the party, basically consultants, who really wanted to get their hands on the get-out-the-vote operation and on the national party, so they convinced the national party to turn on Levy, et cetera, et cetera. We weren’t united as a party that way. They weren’t behind the best candidate, for the wrong reasons. A lot of people made a lot of noise, and most of those people were consultants, who were no longer benefiting from the party, because the party was now doing some serious things. But also, Andrew Cuomo was very smart politically. He stole our clothes. He started talking Republican.

TC: It seems Cuomo never took off those Republican clothes. How much of the favorable climate for Republicans in the state now is because of his cooperation with party leaders? EC: The object of this whole process is to make government work well for the people of the state. I mean, the reason I’m doing this job is because I felt it was very important. As [Mississippi Gov.] Haley Barbour once told me, “Ed, if you don’t have a strong state party and you try to win elections, you’re drawing to an inside straight.” I told him I saw this big wave coming after

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the ’08 election. I tried to run around and find other people who would be chairman of the state party, and no one else would do it. So I put myself out there. And the base of the party elected me. We raised money, went right into those ’09 elections and we won. That was a real message, and the Democrats, and certainly Andrew Cuomo, picked it up. The governor on these major fiscal issues has been on track. That’s why the state has gotten the good government it got over the last legislative session. Now, there are things that are left undone; for example, we have a hard property tax cap, but we do not have mandate relief. The governor, on the gay marriage issue, very adroitly pushed it through the Legislature, but that absorbed a lot of political energy that prevented mandate relief and pension reform, and some other major economic issues from getting resolved.

EC: It was all behind-the-scenes. We worked together with the NRCC and the RNC. Out front you have the candidate, the campaign manager. They were out front doing their jobs, and doing them well. We selected the right candidate, and Ed Koch clearly got along well with Bob Turner and they respected each other. Ed Koch said, “The president of the United States has thrown Israel under the bus,” and that became part of our message, because Bob Turner agreed with that. The fact of Ed Koch coming in, in one of the most Jewish districts in the United States, had a huge impact. He sensed this campaign was ready to deliver a message he thought needed to be delivered to the president. In the end the bottom result is, as James Carville said, the White House should panic. In this race we were outspent three to one, and the last time a Republican held the seat was 1923. It is an inner suburb, filled with Reagan Democrats. The Reagan Democrats in the inner suburbs in 2008 gave Obama the benefit of the doubt, but now they’ve turned very hard against him and voted Republican. It’s a very working-class area. They want to be in place in a real community where they can raise their families. These are the people that make the city run, these Reagan Democrats. They exist in every other inner suburb in every major city all across the country. If they vote Republican in 2012, Obama will lose.

TC: Speaking of the presidential race, what do you think of the Republican national primary candidates?

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Andrew Schwartz

EC: New York State has been visited over the past several weeks by, really, two very good candidates, Mitt Romney and Rick Perry. I am a neutral in the process. I am supportive of any candidate who comes to New York State, because that’s good for the state and building the party. We are now in “party-building mode.” We want to put the structure in statewide that stands for pro-growth, pro-business programs, to make it easy for entrepreneurs to build businesses here. We want to stop the hemorrhaging of our most productive citizens.

TC: Did you have conversations with either of the candidates about the issues? EC: Two weekends ago I was with Governor Romney at his fund-raisers out on Long Island, and this week I was with Governor Perry at various events with him. As the congressional district vote showed in NY-9 that there was a huge discouragement among the voting public with President Obama, we all realized we have a very good chance of winning the presidency. For the candidates, New York is very important to them. This is where money can be raised, this is where they can get national media and many of the ethnic centers are here, so the candidates can interact with ethnic groups that are important to their message to get out what they want to say about their campaigns. I think New York can play a major role in this primary. By their being very active here, it builds excitement in the party. TC: Your summer wasn’t just exciting politically. At the beginning, your son Chris Cox married Andrea Catsimatidis. How was the wedding? How are the newlyweds? EC: Oh, it was great. So great. They are just so much in love. We had so many friends and family there, so many that they filled the whole church, the Greek Orthodox cathedral. And they were so much in love that it filled the whole wedding ceremony and the reception with love. It was a wonderful ceremony with lots of symbolism. It’s been a wonderful summer. —Laura Nahmias lnahmias@nycapitolnews.com September 26, 2011

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