David Paterson

Governor David Paterson announced Tuesday that he had signed Assembly Member Sam Hoyt's Smart Growth Infrastructure Public Policy Act, making it the law of the land that all state infrastructure spending must comply with a set of smart growth principles, including fostering compact, mixed-use development and reducing dependence on the automobile.

Tucked into an otherwise bleak state budget, there's one piece of good news for transit riders. One of Governor Paterson's amendments to the state budget would authorize New York City to keep its bus lanes clear of traffic with camera enforcement. 

So it's come to this. With transit revenues plummeting to the point where the MTA has to deal with a $400 million shortfall on top of an austerity plan that already calls for deep cuts in service, Governor Paterson yesterday proposed shifting the burden of the MTA payroll tax to fall heavily on New York City businesses. The idea is to tax city payrolls at .54 percent and suburban payrolls at .17 percent, skewing the flat .34 percent rate established last spring.

In case you've forgotten who's in charge these days, Governor Paterson's nomination of Jay Walder to succeed Lee Sander as MTA chief was quickly met with a joint statement from Malcolm Smith, John Sampson, and Fare Hike Four members Pedro Espada and Carl Kruger. In the interest of "transparency and accountability," the senators say they plan to put Walder in front of their committees before any decision is made. Kruger, for his part, tells The Daily Politics that he doesn't consider the backbone of the region's economy to be a particularly urgent agenda item.

Former MTA CEO Lee Sander spent the last two-and-a-half years doing his best to make the MTA a transparent, accountable public agency, and in doing so restore its reputation. He let the sunshine in, but was unable to undo the damage to the agency's image caused by years of attacks from transit advocates, unions and politicians.

Now that Governor Paterson has backtracked on his pledge to secure a long-term solution to New York's transit funding crisis, the push is on to spin the slapdash result as a responsible outcome, not a capitulation to Albany's lowest common denominator.

We're getting dangerously close to transit Armageddon.

Heading into the weekend, Governor Paterson is still keeping a tight lid on exactly how he plans to handle the MTA's huge funding shortfall. Lately, Paterson has taken to joking about this crisis by saying that "light bends around Albany" -- a not-so-veiled reference to Senate Democrats and their closed-door machinations. I first heard the line a few weeks ago at the RPA Regional Assembly, where we all laughed and ate up the governor's act.

Let's recap the last week of the MTA funding saga. On Monday, Malcolm Smith and the Senate Democrats introduced a "conversation starter" bill that had already been lambasted as insufficient and backwards. On Tuesday, the MTA finance committee announced that revenues from taxes and fares have plummeted deeper than expected, turning the $1.2 billion doomsday budget gap into a $1.8 billion chasm. On Wednesday, Governor Paterson claimed that he had "some new ideas" to break the legislative impasse. Yesterday, some Paterson staffers started to let slip what the governor had in mind, and today we woke up to the big news.