NEW THIS MORNING

TRANSPORTATION IN THE SPOTLIGHT: The new issue of City & State spotlights New York transportation and infrastructure. Tolls could keep roads and bridges intact, but government remains leery (http://bit.ly/xK83Sc); Port Authority chief Patrick Foye sees a "peace dividend" funding boost as the World Trade Center rebuilding nears completion (http://bit.ly/AwqMXz) and transportation planners look to tax increment financing to pay for improvements (http://bit.ly/wfXIFo). NEW THIS MORNING: * Sen. Kirsten Gillibrand's popularity and re-election prospects are rising among New York voters, with a new Siena poll showing her favorability rating at 54-24 percent: http://bit.ly/dT5kE9 * Gov. Andrew Cuomo's pension reform plan for New York City unions faces legal hurdles because it lacks a report from the city actuary and a home rule vote from the City Council, the Daily News' Juan Gonzalez reports: http://nydn.us/xphm82 * The Cuomo administration is concerned with the impact of military base closures on New York, with the Utica Observer-Dispatch reporting he wants $500,000 in planning funds (http://bit.ly/ynuuMt) and the Watertown Daily Times reporting Lt. Gov. Is in Washington working with New York's Congressional delegation about it (http://bit.ly/xHtt33). * The controversy over the NYPD's surveillance of Muslims has led to deeper scrutiny of Police Commissioner Ray Kelly, who is taking his newfound criticism seriously, the Times says: http://nyti.ms/yToQYp * Suffolk County may run out of money next month as it faces its worst fiscal crisis in history, County Executive Steve Ballone said in declaring a financial emergency, the Times reports: http://nyti.ms/wbRCMY * The Brooklyn Public Library has installed a printing press called the Espresso Book Machine to instantly publish any of 8 million books on demand, as well as new titles by independent publishers, the Wall Street Journal says: http://on.wsj.com/y7DmaN