New York Governor David A. Patterson (D) is joining a number of other states in promoting the use of freeway speed cameras as a way to address his state’s massive $7.4 billion budget shortfall. Patterson’s budget proposal, released yesterday, includes a plan to deploy fifty photo radar vans to generate $96 million in net profit for the general fund by 2012.
“The mistakes of the past — squandering surpluses, papering over deficits, relying on irresponsible fiscal gimmicks to finance unsustainable spending increases — have led us to a financial breaking point,” Patterson wrote. “There are no more easy answers…. The only way we can emerge from this crisis is through shared sacrifice.”
What, you thought Ray LaHood’s war on distracted driving would be limited to a lot of hot air, a do-nothing summit and a ban on federal employees text messaging in federal vehicles? Yeah, so did we. Turns out that the position of Transportation Secretary leaves plenty of time for windmill tilting, as the WSJ reports LaHood is back on his old hobbyhorse. The SecTrans is pushing for the federal ban on texting while driving, and he’s back to the old double-nickel strategy: deny federal highway funding to states that refuse to pass local bans on texting while driving. Which is certainly better than some of the more Patriot Act-esque enforcement methods LaHood had been considering. Still, didn’t the mess that was the distracted driving summit convince LaHood that it’s impossible to legislate against stupidity, especially when there’s such a lucrative business in perpetuating said stupidity? Guess not.
Lawmakers in Indiana, swayed by the potential budget enhancement that recently convinced California’s governor, have introduced legislation that would authorize photo ticketing in the state. House Minority Floor Leader Bill Friend (R-Macy) and state Representative Shelli VanDenburgh (D-Crown Point) last week filed House Bill 1289 to create a so-called work zone freeway speed camera program.
“Revenues for the new fiscal year are way down,” Friend wrote on the day he introduced HB 1289. “Since July 1, 2009, the state is $500 million short of projections.”
With the economy desperately looking for signs that a bottom has been reached, news that Fisker has raised $115m in new funding might indicate that (if nothing else) the money markets are back to their good old speculative selves. At least it might if there weren’t so many darn extenuating circumstances. On the one hand, Fisker seems like the kind of business that has little business attracting much, well, business. Its $90k+ Karma brings little more to the table than some competition for Tesla in the EV-glamor-bauble segment, and like Tesla it’s trying to leverage its first model into ever cheaper, higher-volume vehicles. So why are VC firms giving Fisker the time of day?
Mississippi is starting to get a bit shirty with Toyota. ABC News reports that Mississippi legislators are getting annoyed with Toyota because of the lack of clarity as to when Toyota will start paying the interest on the money the state borrowed to bring Toyota’s car plant to Mississippi. Tate Reeves, State treasurer, told lawmakers during a briefing that discussions are ongoing about when Toyota would begin making payments. The State of Mississippi has already paid about $16.7 million in interest. However, Toyota have a different take on affairs.
Even with a government-mandated arbitration process in place, the battle between Chrysler and its 789 culled dealers is a low-down, dirty dogfight. Last week, Chrysler sent out letters to all of its rejected dealers, in its attempt to comply with the arbitration law’s disclosure requirements. But, dealers tell Automotive News [sub], those letters are justifications, but not explanations. Absent concrete evidence for why their franchises were closed (something GM has provided to its culled dealers), lawyers for some 65 rejected dealers are fighting back.
In a surprise move, Arizona Governor Jan Brewer (R) took a step to save the freeway speed camera program imposed by her predecessor, Janet Napolitano (D), the current US Secretary of Homeland Security. On Friday, Brewer proposed a Fiscal Year 2011 budget that cut spending by $1.1 billion, reduced the state’s workforce by ten percent and raised taxes by $1 billion to address massive deficits brought on by overspending during the economic downturn. Also tucked into the budget were assumptions that automated ticketing would continue beyond 2011, based on expected results from a new referendum proposal. Read More >
Money Control reports that the French government threatened to increase its stake in Renault from 15.01% to 20%. Not because it believes in the company and its products (would you trust a Renault Megane over a Honda Civic or Toyota Auris?), but to further exert control over Renault. Why would it want to do that? Well, that could probably have something to do with the French government’s invite to Carlos Ghosn for a little “sitdown” over the rumours that Renault may produce its new generation of Clio in Turkey, rather than its plant in Flins, France, where the current generation is built.
The TARP bailout of GM finance partner GMAC is being criticized by a congressional oversight panel [full report in PDF format here], reports the Detroit Free Press. The panel alleges that the Treasury
has not yet articulated a specific and convincing reason to support the company… It has never stated that a GMAC failure would result in substantial negative consequences for the national economy. If Treasury has made such a determination, then it should say so publicly.
US Transportation Secretary Ray LaHood announced on Wednesday that he would re-write funding guidelines to dispense with rigid cost-benefit analysis when deciding which transit programs should receive funds. Under the previous system, because motorists provided the majority of the funding through the gas tax, money was allocated to cost-effective transit programs that promised the greatest overall reduction in traffic congestion. In remarks at the Transportation Research Board annual meeting, LaHood explained that the objective criteria will be replaced by a set of goals.
My commitment is to the American taxpayer. My commitment is to recover every single dime the American people are owed… We want our money back and we’re going to get it.
Without even getting into the politics of President Obama’s proposed “financial crisis responsibility fee,” it’s easy to see that the initiative holds a wealth of implications for America’s TARP-recipient automakers. In Obama’s new rhetoric, taking TARP money put businesses in a new category of special obligation to the taxpayers. Though the fee is targeted at financial institutions, the principle applies just as much to Detroit.
A few months back I noted that the French government was interfering in the car industry by demanding French plants stay open as a condition of their bailout of Renault. Well, things are getting even more….well….French. New York times (via Reuters) reports that French President Nicolas Sarkozy has summoned Renault and Nissan CEO, Carlos Ghosn for a cosy chat. Actually, “grilling” might be better way of putting it. The invitation has come about after reports surfaced that Renault might be producing its new Clio in Turkey, rather than France. This could be considered state bullying, but the French State is a 15% shareholder in Renault. French Industry minister, Christian Estrosi made absolutely no effort to cover this coercion.
The Federal Highway Administration (FHWA) will issue a final rule next month that will force states to spend an estimated $1.2 billion to implement the “511” traffic information hotline championed by former Vice President Al Gore. So far, thirty-two states have established telephone numbers that provide callers with pre-recorded traffic updates. The rule will standardize the data formats and required features that will apply to all the states, beginning with coverage in the top-fifty metropolitan areas.
Hey, we’ve finally found someone who believes in the Volt and Chrysler’s alleged new products. Too bad he’s from the government that owns 60 percent of GM and 15 percent of Chrysler… and he can’t explain his optimism in anything but the broadest platitudes. Did Transportation Secretary Ray LaHood properly disclose his relationship with the state-owned automakers per FCC standards? Probably not. But that’s OK, since few probably took him seriously to begin with.
California Governor Arnold Schwarzenegger, desperately seeking new sources of revenue to cover a $19.9 billion budget shortfall, yesterday declared a state of fiscal emergency. As part of his proposed solution, Schwarzenegger called for the deployment of a massive statewide speed camera program to generate at least $397.5 million in net profit to state and local government.
Under the proposal, existing red light cameras at intersections would be converted into “speed on green” cameras that issue citations to motorists who try to speed up at an intersection to make the light. Those who slow down and fail to make the light will be mailed a red light camera ticket.
“Various federal rules are tying our hands and preventing us from reducing costs in some state programs,” Schwarzenegger explained at a news conference yesterday. “I want to remind the federal judges and the politicians California is not Washington. We do not have the luxury of printing money or running trillion-dollar deficits.”
New York Governor David A. Patterson (D) is joining a number of other states in promoting the use of freeway speed cameras as a way to address his state’s massive $7.4 billion budget shortfall. Patterson’s budget proposal, released yesterday, includes a plan to deploy fifty photo radar vans to generate $96 million in net profit for the general fund by 2012.
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