The "STEP 21" coalition of mostly southern and midwestern states proposes to bring allocations of federal transportation funds to states more in line with the contribution from each state's motorists via the federal gas tax. Daly said he would support such logic if it applied to all federal programs, not only transportation. In such a case, New York would be the greatest beneficiary of all, since New Yorkers' total payments in federal taxes far exceed what the state gets back from the federal government. Transportation is one of the few areas where New York is a net recipient of federal revenues, because of complex ISTEA formulas that account for length of roadway systems, miles traveled, transit ridership, infrastructure conditions, etc. Daly said STEP 21's other logical failing is that "roads don't end at the state line."

Daly also said that if the federal transportation program were eliminated, New York would have to impose a 28cent/gallon gas tax to make up revenue received under the 12 cent/gallon federal gas tax.

Daly's remarks were primarily confined to funding apportionments, although his office was active promoting the benefits of ISTEA transportation "enhancements" projects in media outlets this summer. Daly's comments yesterday on ISTEA programs indicated that NYSDOT would support looser eligibility requirements for congestion mitigation/air quality funds, combining several highway funding categories and streamlining federal reporting requirements.

Next week's Mobilizing the Region will carry in-depth coverage of the Campaign's Sept. 19-21 conference, including other views on ISTEA.