Regular Session - March 11, 2013

                                                                   850

 1               NEW YORK STATE SENATE

 2                          

 3                          

 4              THE STENOGRAPHIC RECORD

 5                          

 6                          

 7                          

 8                          

 9                  ALBANY, NEW YORK

10                   March 11, 2013

11                     3:12 p.m.

12                          

13                          

14                  REGULAR SESSION

15  

16  

17  

18  SENATOR JOSEPH GRIFFO, Acting President

19  FRANCIS W. PATIENCE, Secretary

20  

21  

22  

23  

24  

25  


                                                               851

 1               P R O C E E D I N G S

 2                ACTING PRESIDENT GRIFFO:   The 

 3   Senate will come to order.  

 4                I ask all present to please rise 

 5   and join with me as we recite the Pledge of 

 6   Allegiance to our Flag.

 7                (Whereupon, the assemblage recited 

 8   the Pledge of Allegiance to the Flag.)

 9                ACTING PRESIDENT GRIFFO:   Today's 

10   invocation will be offered by Rabbi Shmuel M. 

11   Butman, from Lubavitch Youth Organization in 

12   Brooklyn, New York.  

13                Rabbi.  

14                RABBI BUTMAN:   {In Hebrew}  Our 

15   heavenly Father, we ask You to bestow Your 

16   blessings upon all the members of the New York 

17   State Senate.  

18                They should have a lot of success 

19   in all their endeavors, in all their communal 

20   endeavors and in all their personal endeavors, 

21   especially since they have just done a great 

22   deed, that they have passed a resolution 

23   proclaiming 111 Days of Education in honor of 

24   the 111th birthday of the Lubavitcher Rebbe, 

25   Rabbi Menachem M. Schneerson.  


                                                               852

 1                In Psalm Number 112, 112, that we 

 2   start saying on the Rebbe's 111th birthday, 

 3   King David speaks about the righteous men and 

 4   women.  And he promises them that whoever is 

 5   going to follow the path of righteousness, {in 

 6   Hebrew}, which means that their children are 

 7   going to have a lot of success, that they will 

 8   never fear any fear and they will never fear any 

 9   adversities, and that they will have eternal 

10   success for all of their lives, for themselves 

11   and for their children, when they follow the 

12   path of righteousness.  

13                You, the legislators in the 

14   New York State Senate, you are not only 

15   legislating laws that govern the State of 

16   New York but also, by extension, the United 

17   States of America.  And by extension, the United 

18   States of America of America is a superpower, 

19   the whole world looks to us.  And when we 

20   legislate laws that govern how people should 

21   behave, between man and man and man and God, 

22   then those laws have an effect all over the 

23   world.  

24                I should also tell you that every 

25   Sabbath, every Shabbos in our community, in our 


                                                               853

 1   shuls, in our synagogues, we say a special 

 2   prayer for you for your success.  We say the {in 

 3   Hebrew}.  All those who serve the public with 

 4   faith, as you do, we ask Almighty God that 

 5   Almighty God should grant you good health and 

 6   long life and you should be able to continue to 

 7   do the right thing and making this world a 

 8   better place.

 9                Many years ago, when I opened the 

10   United States Senate in Washington, I went to 

11   see the Rebbe.  And the Rebbe said to me that 

12   "You should take with you a tzedakah pushke," a 

13   charity box.  "And while you are offering the 

14   prayer," the Rebbe told me, "you should also 

15   give charity, you should put in a dollar.  And 

16   on the dollar it says 'In God We Trust.'  And 

17   everybody should see what you are doing, and 

18   they should know what money should be used 

19   for."  

20                So that's what we are going to do, 

21   what the Rebbe said.  We are going to put in a 

22   dollar in the tzedakah.  And we are going to ask 

23   you, whoever wants to join us later -- I don't 

24   think you to think that this is a fundraising 

25   campaign.  Because if it would be, we would ask 


                                                               854

 1   you for much more than a dollar.

 2                (Laughter.)

 3                RABBI BUTMAN:  This is a campaign to 

 4   do more goodness and more kindness.  You are 

 5   welcome to join us later.  Only one dollar per 

 6   person.  And then you are going to do another act 

 7   of goodness and kindness.  

 8                God bless you all.  You should be 

 9   able to pass the budget successfully, with God's 

10   help, and you should have a lot of success in 

11   your personal lives and in your communal 

12   endeavors.  God bless you, every single one of 

13   you.  

14                Thank you.

15                ACTING PRESIDENT GRIFFO:   Thank 

16   you, Rabbi.

17                The reading of the Journal.

18                THE SECRETARY:   In Senate, Sunday, 

19   March 10th, the Senate met pursuant to 

20   adjournment.  The Journal of Saturday, March 9th, 

21   was read and approved.  On motion, Senate 

22   adjourned.

23                ACTING PRESIDENT GRIFFO:   Without 

24   objection, the Journal stands approved as read.

25                Presentation of petitions.


                                                               855

 1                Messages from the Assembly.

 2                The Secretary will read.

 3                THE SECRETARY:   On page 7, 

 4   Senator Seward moves to discharge, from the 

 5   Committee on Insurance, Assembly Bill Number 1831 

 6   and substitute it for the identical Senate Bill 

 7   Number 2756, Third Reading Calendar 53.

 8                ACTING PRESIDENT GRIFFO:    

 9   Substitution so ordered.

10                THE SECRETARY:   On page 7, 

11   Senator Seward moves to discharge, from the 

12   Committee on Insurance, Assembly Bill Number 1832 

13   and substitute it for the identical Senate Bill 

14   Number 2757, Third Reading Calendar 54.

15                ACTING PRESIDENT GRIFFO:    

16   Substitution so ordered.

17                THE SECRETARY:   And on page 12, 

18   Senator Nozzolio moves to discharge, from the 

19   Committee on Codes, Assembly Bill Number 196 and 

20   substitute it for the identical Senate Bill 

21   Number 3034, Third Reading Calendar 131.

22                ACTING PRESIDENT GRIFFO:   

23   Substitution so ordered.

24                Messages from the Governor.

25                Reports of standing committees.


                                                               856

 1                Reports of select committees.

 2                Communications and reports from 

 3   state officers.

 4                Motions and resolutions.

 5                Senator Fuschillo.

 6                SENATOR FUSCHILLO:   Mr. President, 

 7   on behalf of Senator Hannon, on page number 7 I 

 8   offer the following amendments to Calendar Number 

 9   58, Senate Print Number 2069, and ask that said 

10   bill retain its place on Third Reading Calendar.

11                ACTING PRESIDENT GRIFFO:   The 

12   amendments are received, and the bill will retain 

13   its place on third reading.

14                Senator Fuschillo, one second 

15   please.

16                May I have some order in the house, 

17   please.

18                Senator Fuschillo.

19                SENATOR FUSCHILLO:   On behalf of 

20   Senator LaValle, on page number 14 I offer the 

21   following amendments to Calendar Number 166, 

22   Senate Print Number 2920, and ask that said bill 

23   retain its place on the order of Third Reading 

24   Calendar.

25                ACTING PRESIDENT GRIFFO:   The 


                                                               857

 1   amendments are received, and the bill shall 

 2   retain its place on third reading.

 3                SENATOR FUSCHILLO:   On behalf of 

 4   Senator Marcellino, on page number 13 I offer the 

 5   following amendments to Calendar Number 156, 

 6   Senate Print Number 3046, and ask that said bill 

 7   retain its place on Third Reading Calendar.

 8                ACTING PRESIDENT GRIFFO:   The 

 9   amendments are received, and the bill shall 

10   retain its place on third reading.  

11                Senator Fuschillo.

12                SENATOR FUSCHILLO:   May we please 

13   have the reading of the noncontroversial 

14   calendar.

15                ACTING PRESIDENT GRIFFO:   The 

16   Secretary will read.

17                THE SECRETARY:   Calendar Number 53, 

18   substituted earlier by Member of the Assembly 

19   Morelle, Assembly Print 1831, an act to amend the 

20   Insurance Law.

21                ACTING PRESIDENT GRIFFO:   Read the 

22   last section.

23                THE SECRETARY:   Section 2.  This 

24   act shall take effect on the same date and in the 

25   same manner as Chapter 495 of the Laws of 2012.


                                                               858

 1                ACTING PRESIDENT GRIFFO:   Call the 

 2   roll.

 3                (The Secretary called the roll.)

 4                THE SECRETARY:   Ayes, 55.

 5                ACTING PRESIDENT GRIFFO:   The bill 

 6   is passed.

 7                THE SECRETARY:   Calendar Number 54, 

 8   substituted earlier by Member of the Assembly 

 9   Morelle, Assembly Print 1832, an act to amend the 

10   Insurance Law.

11                ACTING PRESIDENT GRIFFO:   Read the 

12   last section.

13                THE SECRETARY:   Section 2.  This 

14   act shall take effect on the same date and in the 

15   same manner as Chapter 496 of the Laws of 2012.

16                ACTING PRESIDENT GRIFFO:   Call the 

17   roll.

18                (The Secretary called the roll.)

19                THE SECRETARY:   Ayes, 55.

20                ACTING PRESIDENT GRIFFO:   The bill 

21   is passed.

22                THE SECRETARY:   Calendar Number 65, 

23   by Senator Ranzenhofer, Senate Print 1434, an act 

24   to amend the Vehicle and Traffic Law.

25                ACTING PRESIDENT GRIFFO:   Read the 


                                                               859

 1   last section.

 2                THE SECRETARY:   Section 2.  This 

 3   act shall take effect on the first of November.

 4                ACTING PRESIDENT GRIFFO:   Call the 

 5   roll.

 6                (The Secretary called the roll.)

 7                THE SECRETARY:   In relation to 

 8   Calendar Number 65:  Ayes, 53.  Nays, 2.  

 9   Senators Montgomery and Perkins recorded in the 

10   negative.

11                ACTING PRESIDENT GRIFFO:   The bill 

12   is passed.

13                THE SECRETARY:   Calendar Number 66, 

14   by Senator Marcellino, Senate Print 1480, an act 

15   to amend the Vehicle and Traffic Law.

16                ACTING PRESIDENT GRIFFO:   Read the 

17   last section.

18                THE SECRETARY:   Section 4.  This 

19   act shall take effect on the first of November.

20                ACTING PRESIDENT GRIFFO:   Call the 

21   roll.

22                (The Secretary called the roll.)

23                THE SECRETARY:   Ayes, 55.

24                ACTING PRESIDENT GRIFFO:   The bill 

25   is passed.


                                                               860

 1                THE SECRETARY:   Calendar Number 

 2   109, by Senator Zeldin, Senate Print 3414, an act 

 3   to amend the General Business Law.

 4                ACTING PRESIDENT GRIFFO:   Read the 

 5   last section.

 6                THE SECRETARY:   Section 2.  This 

 7   act shall take effect immediately.

 8                ACTING PRESIDENT GRIFFO:   Call the 

 9   roll.

10                (The Secretary called the roll.)

11                THE SECRETARY:   Ayes, 55.

12                ACTING PRESIDENT GRIFFO:   The bill 

13   is passed.

14                THE SECRETARY:   Calendar Number 

15   131, substituted earlier by Member of the 

16   Assembly Weinstein, Assembly Print Number 196, an 

17   act to amend the Criminal Procedure Law.

18                ACTING PRESIDENT GRIFFO:   Read the 

19   last section.

20                THE SECRETARY:   Section 2.  This 

21   act shall take effect immediately.

22                ACTING PRESIDENT GRIFFO:  Call the 

23   roll.

24                (The Secretary called the roll.)

25                THE SECRETARY:   Ayes, 55.


                                                               861

 1                ACTING PRESIDENT GRIFFO:   The bill 

 2   is passed.

 3                THE SECRETARY:   Calendar Number 

 4   138, by Senator Griffo, Senate Print 1965, an act 

 5   to amend the Highway Law.

 6                ACTING PRESIDENT GRIFFO:   Read the 

 7   last section.

 8                THE SECRETARY:   Section 4.  This 

 9   act shall take effect on the 120th day.

10                ACTING PRESIDENT GRIFFO:   Call the 

11   roll.

12                (The Secretary called the roll.)

13                THE SECRETARY:   Ayes, 55.

14                ACTING PRESIDENT GRIFFO:   The bill 

15   is passed.

16                THE SECRETARY:   Calendar Number 

17   140, by Senator Savino, Senate Print 2963, an act 

18   directing.

19                ACTING PRESIDENT GRIFFO:   Read the 

20   last section.

21                THE SECRETARY:   Section 2.  This 

22   act shall take effect on the 90th day.

23                ACTING PRESIDENT GRIFFO:  Call the 

24   roll.

25                (The Secretary called the roll.)


                                                               862

 1                THE SECRETARY:   Ayes, 55.

 2                ACTING PRESIDENT GRIFFO:   The bill 

 3   is passed.

 4                Senator Fuschillo, that completes 

 5   the noncontroversial reading of the calendar.

 6                SENATOR FUSCHILLO:   Thank you, 

 7   Mr. President.  

 8                I believe there's a privileged 

 9   resolution at the desk by Senators Skelos and 

10   Klein.  I ask that the title be read and move for 

11   its immediate adoption.

12                ACTING PRESIDENT GRIFFO:   The 

13   resolution is accepted, in accordance with rules 

14   and regulations of the house, and the Secretary 

15   will read.

16                THE SECRETARY:   Resolution Number 

17   818, by Senators Skelos and Klein, adopting 

18   proposed amendments to the 2013-2014 Executive 

19   Budget submission (Legislative Bills Senate 

20   2600C, 2603C, 2604C, 2605C, 2606C, 2607C, 2608C 

21   and Senate 2609C).

22                ACTING PRESIDENT GRIFFO:   Again, 

23   some order in the house.  

24                The resolution is before the house.

25                Senator DeFrancisco.


                                                               863

 1                SENATOR DeFRANCISCO:   Thank you 

 2   very much.  

 3                This is the resolution setting forth 

 4   the Senate's version of the one-house budget that 

 5   will be negotiated along with the Assembly and 

 6   the Governor's office.  I know there will be some 

 7   questions, and so I just want to briefly outline 

 8   what it does.

 9                What's most important to many 

10   people, at least that I've heard during the 

11   budget hearings, is state aid to education.  And 

12   what bothers a lot of people throughout the state 

13   is the Gap Elimination Adjustment that has cost 

14   or resulted in a lot less dollars to many, many 

15   districts throughout the state.

16                Well, we thought that some of the 

17   Governor's money that was programmed for other 

18   purposes should be used to eliminate or reduce 

19   the Gap Elimination Adjustment to drive more to 

20   districts.  That, by far, has been their 

21   priority.

22                And the monies that the Governor had 

23   proposed were $321 million for Gap Elimination 

24   Adjustments, and we increase that amount to 

25   $620 million, which will have a great effect on 


                                                               864

 1   all of our districts.  In addition, the budget 

 2   language that we're hoping for is to completely 

 3   eliminate it in a matter of three years, and 

 4   that's a goal that we think is attainable.  

 5                The Governor had proposed 

 6   $154 million for High Tax Aid.  We increased that 

 7   to $221 million.  

 8                So we think those are the priorities 

 9   for education money, and that's why we redirected 

10   funds and found other funds by other cuts to 

11   provide more money in that direction.

12                From a procedural matter, I think 

13   that we have done other things that are going to 

14   be making it easier to have our third on-time 

15   budget, a responsible budget that's not going to 

16   increase taxes and also not cause more 

17   difficulties by increasing taxes.  

18                Now, incorporated in this bill as 

19   far as economic development, you've got to cut to 

20   make the state in a better shape, but you're not 

21   going to solve the entire problem by cutting.  

22   And the jobs program that we came up with last 

23   week is an integral component of this.  I will 

24   not go through the details.  If anyone has any 

25   questions, they can provide them, give them to 


                                                               865

 1   me, and I'll be more than happy to answer as best 

 2   I can.

 3                The Senate also is proposing to 

 4   eliminate the 18A assessment to reduce energy 

 5   costs for businesses and individuals.  That helps 

 6   farmers, that helps every business.  That also 

 7   individuals.  We all have had our calls from our 

 8   various constituents looking over their energy 

 9   bill and asking, "What in God's name is this 

10   additional charge?"  

11                Well, that additional charge was 

12   supposed to expire this year.  According to the 

13   Governor's budget, he's requesting that it be 

14   renewed.  We think that would be a very, very bad 

15   idea to do that.

16                We're also attempting to make the 

17   state more business-friendly by reducing the 

18   corporate franchise tax for manufacturers and 

19   eliminating it altogether over the next four 

20   years.

21                To help the middle class, we want to 

22   be in a position to increase the dependents 

23   exemption from $1,000 to $2,020 and provide a 

24   supplemental tax credit of an additional $500 per 

25   family and restore the STAR tax rebates.  


                                                               866

 1                Once again, you can't just cut 

 2   forever and expect a result.  You have to grow 

 3   the economy, and that's an integral part of this 

 4   budget.

 5                To help local governments, we're 

 6   proposing to accelerate the takeover of the local 

 7   growth of Medicaid, 1 percent cap in 2013 and a 

 8   zero percent cap in 2014, saving counties 

 9   millions of dollars.  

10                We provide $20 million more for 

11   enhanced aid and incentives for municipalities 

12   programs, to assist local governments.  I was 

13   just in the hall with one of the mayors of the 

14   major cities who would love to see more 

15   assistance, because their troubles are extremely 

16   difficult to deal with.

17                In order to provide what hasn't been 

18   provided over the last seven years, we increased 

19   the CHIPS funding, which is extremely important 

20   to all districts throughout the state as far as 

21   facilitating road and bridge construction, but 

22   most importantly roads.  And that's an additional 

23   hundred million dollars.  And to provide another 

24   $16 million for upstate transit systems.

25                The Senate also knows the importance 


                                                               867

 1   of higher education.  We're increasing base aid 

 2   to students attending community college by $150 

 3   per student if this becomes part of the ultimate 

 4   budget.  

 5                And we unpotted -- this has nothing 

 6   to do with the medical marijuana.  There's a lot 

 7   of pots in the Governor's budget lumping together 

 8   a lot of nonprofit agencies on a broad spectrum 

 9   of things, and reducing the overall cost so the 

10   groups would have to compete for the few 

11   dollars.  Well, by the time they competed and by 

12   the time they get paid, they're in another year.  

13                And secondly, it reduces -- all 

14   these pots substantially reduce legislative 

15   oversight.  And I think that was important to do 

16   the unpotting.

17                The one big issue -- and many of us 

18   sat through many of these budget hearings -- was 

19   the 6 percent cut to individuals with 

20   developmental disabilities.  We would like to 

21   restore, it's in our budget, $120 million to the 

22   Office for People With Developmental Disabilities 

23   to ensure that our most vulnerable of all 

24   citizens are protected.  

25                And there's a few more things here.  


                                                               868

 1   Casino gambling is not in it, and I'll wait for 

 2   questions.  That isn't ready.  We don't know 

 3   where the casinos are going or if the Senate even 

 4   wants to go that direction, or the Assembly.  So 

 5   I think rather than hold up the budget, so we can 

 6   get an early budget this year we proposed 

 7   decoupling that from our one-house.  

 8                And with that said, I'll open it up 

 9   for questions and try my darndest to give you 

10   intelligent and accurate answers.

11                ACTING PRESIDENT GRIFFO:   Senator 

12   Krueger.

13                SENATOR KRUEGER:   Thank you, 

14   Mr. President.

15                Well, I appreciate the sponsor's 

16   explanations of the bill.  And I would agree, 

17   there's something for everyone in this bill.  In 

18   fact, there's lots of things in this one-house 

19   resolution that many of my colleagues no doubt 

20   will speak on because they agree.  

21                But my questions for the sponsor 

22   involve the dollars and cents and how it adds up 

23   or it doesn't add up.  So if the sponsor would 

24   please yield to some questions.

25                ACTING PRESIDENT GRIFFO:   Senator 


                                                               869

 1   DeFrancisco, do you yield?  

 2                SENATOR DeFRANCISCO:   Yes.

 3                ACTING PRESIDENT GRIFFO:   Senator 

 4   DeFrancisco yields.

 5                Again, I'm going to ask, there are a 

 6   lot of people in the chamber today.  If you can 

 7   take the business that you're discussing 

 8   in-chamber out of the chamber so the members can 

 9   engage in debate and dialogue.

10                Senator Krueger, you may continue.

11                SENATOR KRUEGER:   Thank you.  

12                Through you, Mr. President, if the 

13   sponsor can tell me what's the dollars that have 

14   been added through this resolution above and 

15   beyond the Governor's budget, the new adds.

16                SENATOR DeFRANCISCO:   The question 

17   is how do we pay for the new adds?  

18                SENATOR KRUEGER:   No.  How much 

19   money is in this resolution for line items that 

20   didn't exist in the Governor's proposed budget?  

21   So things that you added.

22                SENATOR DeFRANCISCO:   Well, we pay 

23   for everything by either reprogramming the 

24   Governor's monies or project additional revenues 

25   from other sources.  So it's difficult to say 


                                                               870

 1   exactly.  When you talk about adds, it's not all 

 2   necessarily adds that weren't funded by something 

 3   that we're cutting.  So it's not that we're just 

 4   coming up with more programs and not paying for 

 5   it.

 6                SENATOR KRUEGER:   Maybe I'll ask 

 7   the sponsor again, through you, Mr. President.  

 8   I'm going to ask him what are the total new 

 9   appropriations and what are the decreased 

10   appropriations from the Governor's budget.  And 

11   from those two numbers, we can help get to an 

12   answer to the bigger question.  

13                So how much in new appropriations is 

14   in this resolution compared to the lines that 

15   were in the Governor's budget?  

16                ACTING PRESIDENT GRIFFO:   Senator 

17   DeFrancisco.

18                SENATOR DeFRANCISCO:   That's 

19   $930 million.  And there are cuts in the amount 

20   of $828 million.  And the difference is really 

21   funded by programs that we believe can 

22   substantiate the balance of the funding.

23                And Senator Hannon mentioned to me, 

24   which was -- I really didn't realize it's an 

25   excellent point.  That's why there may be 


                                                               871

 1   intelligent answers, because others are telling 

 2   me what to say or suggesting a point.

 3                This isn't really that much.  In the 

 4   30-day amendments, the Governor reprogrammed or 

 5   moved around over a billion dollars in 30 days of 

 6   his own proposal.  So this is not an 

 7   extraordinary amount of money in view of the 

 8   overall amount of the budget.

 9                SENATOR KRUEGER:   And through you, 

10   Mr. President, if the sponsor would continue to 

11   yield.

12                SENATOR DeFRANCISCO:   Yes.

13                ACTING PRESIDENT GRIFFO:   The 

14   sponsor yields.

15                SENATOR KRUEGER:   And then he 

16   mentioned additional revenue or less revenue.  

17   Can you tell me how much in new revenue there is 

18   in this budget resolution?  And then the 

19   follow-up question is how much from the 

20   Governor's budget is being taken off as revenue.

21                SENATOR DeFRANCISCO:   We are 

22   anticipating a deal with some of the tribes, the 

23   Indian tribes, for their compact with the state.  

24   We're projecting $450 million right there alone.

25                By the way, some of these 


                                                               872

 1   projections, they total about four times of what 

 2   we really need.  So if we're off on some of them, 

 3   we can stand corrected.  We got plenty either 

 4   way.

 5                Medicaid reestimates, we propose -- 

 6   and this is huge.  And hopefully everybody will 

 7   agree with me.  In New York State we see all of 

 8   these the last few years:  2 percent across the 

 9   board cut, 6 percent across the board cut.  To 

10   me, that is not the way to go, because good 

11   programs get cut along with programs that maybe 

12   are spending too much.  And that's not a way to 

13   run anything, let alone government, where people 

14   have the needs that they have in New York State.

15                We would like to eliminate, either 

16   through waste reduction, by cutting parts of 

17   programs, or cutting into the optional services 

18   provided by Medicaid to the tune of about 

19   $200 million.  And what do I mean by that?  We 

20   provide -- out of the 33 optional services that 

21   the federal government doesn't require us but 

22   will allow us to give, to provide, we provide 31 

23   of them.  Now it's pretty obvious why we spend 

24   more in Medicaid then the next two states 

25   combined.  


                                                               873

 1                We want more education aid?  The 

 2   line for Medicaid has gone well past the 

 3   education line, and it's over $60 billion a 

 4   year.  So it's got to come under control some 

 5   way.  I'll give you one example and then I'll 

 6   stop, because there's a lot of them.

 7                When a group of individuals with 

 8   severe handicaps in wheelchairs came in to see 

 9   me -- actually, it was two years ago because I've 

10   been on this horse for a long time, this soapbox 

11   a long time.  I said, "If you don't like the 

12   2 percent cuts, give me some ideas."  

13                A person in a wheelchair said to 

14   me:  "Well, look, I have a car that's retrofitted 

15   to allow my wheelchair to be put in it.  I have 

16   an aide, and that aide charges a few dollars an 

17   hour to the state.  But despite that, I have to 

18   get to my normal regular medical and dental 

19   appointments by some transportation vehicle from 

20   a service that costs three times as much as it 

21   would otherwise."

22                Now, that's from people that we've 

23   really got to help, some of the most vulnerable 

24   people.  I'm sure there's a ton of those in the 

25   developmentally disabled area as well.


                                                               874

 1                So my point is I don't mean cut out 

 2   transportation because it's an optional service.  

 3   I believe that the way to go is to really plan on 

 4   this in this budget and make sure we get it done 

 5   by making these changes that are attainable.  

 6   That's two examples.

 7                ACTING PRESIDENT GRIFFO:   Senator 

 8   Krueger.

 9                SENATOR KRUEGER:   Through you, 

10   Mr. President, if the sponsor would continue to 

11   yield.

12                SENATOR DeFRANCISCO:   Yes.

13                ACTING PRESIDENT GRIFFO:   The 

14   sponsor yields.

15                SENATOR KRUEGER:   Although one of 

16   the questions I was going to ask him was about 

17   the cut to optional services in Medicaid, and he 

18   in fact jumped in there with his example.  

19                So I'm going to go on to other 

20   things, but just to highlight that $208 million 

21   cut, he used the one example of transportation.  

22   But of course if we were to cut those optional 

23   services, it would also mean we were cutting out 

24   dental services, occupational and physical 

25   therapy, hospice care, clinical services, 


                                                               875

 1   prosthetic and orthotic devices, hearing aids, 

 2   and a long list of about 31 different items.  So 

 3   we might agree or disagree about the severity of 

 4   the impact on people if we were to cut that 

 5   program in Medicaid.

 6                But I wanted to ask a sponsor about 

 7   a few items that they did put in their one-house 

 8   resolution.  One of the answers to my question 

 9   before was that there was $600 million, of which 

10   $450 million is being booked for unpaid taxes 

11   from tribal nations.  And my understanding is 

12   that we've all known about this for years and 

13   years and years; we never really could get that 

14   money.  So do we think we can get that money this 

15   year?

16                ACTING PRESIDENT GRIFFO:   Senator 

17   DeFrancisco.

18                SENATOR DeFRANCISCO:   They're 

19   presently in binding arbitration.  And we believe 

20   it's reasonable to assume that it's going to be 

21   done this year.

22                If it isn't, as I mentioned, the 

23   list I have is extensive and it's four times what 

24   we would really need to actually have happen in 

25   order to fill the balance of the gap of the 


                                                               876

 1   budget for some of the things we're adding.

 2                In addition, I'm glad I jumped in on 

 3   optional services.  Because that comment about 

 4   cutting occupational services, cutting everything 

 5   imaginable, people are going to be cut and let 

 6   alone without services, that's exactly why it 

 7   never happens.  Because the scare tactics that 

 8   are used that would say that optional services 

 9   are sacrosanct and there's no savings we can make 

10   about it by making it a more efficient system, I 

11   think is exactly why it doesn't happen.  

12                And I hope, Senator Krueger, after 

13   we've gotten to be such good buddies sitting 

14   through six weeks of budget hearings next to each 

15   other, and during that lovefest, hopefully you'll 

16   look at some of these areas and reasonably cut 

17   back on the $4.1 billion in optional services.

18                Thank you.

19                SENATOR KRUEGER:   Thank you.

20                Through you, Mr. President, if the 

21   sponsor would continue to yield.

22                SENATOR DeFRANCISCO:   Yes.

23                ACTING PRESIDENT GRIFFO:   The 

24   sponsor yields.

25                SENATOR KRUEGER:   So when you added 


                                                               877

 1   up the amount that you are increasing the debt in 

 2   the budget by adding costs, you came to about 

 3   $930 million.  But do you also not have a 

 4   $1.3 billion STAR rebate program?

 5                SENATOR DeFRANCISCO:   Yes.  But by 

 6   the way, we didn't increase the debt.  Because 

 7   according to our budget, there will be a 

 8   $1.9 billion, with a B, reduction in All Funds 

 9   spending and a 1.5 percent decrease in spending 

10   for state funds for the state-only funds.  So it 

11   doesn't increase spending.

12                SENATOR KRUEGER:   Through you, 

13   Mr. President, if the sponsor would continue to 

14   yield.

15                SENATOR DeFRANCISCO:   Yes.

16                ACTING PRESIDENT GRIFFO:   The 

17   sponsor yields.

18                SENATOR KRUEGER:   Well, excuse me, 

19   the sponsor very kindly continued to yield, but 

20   I'm going to just ask one more question and then 

21   speak a little bit, because my time is up.  

22                Can you tell me how much in new 

23   costs will be projected for the state from the 

24   brownfields Article 7 language which allows 

25   brownfields credits to be moved from $45 million 


                                                               878

 1   to $150 million per project and allows Superfund 

 2   programs into the brownfields program?  What's 

 3   your projected cost to the state for that?  

 4                SENATOR DeFRANCISCO:   I don't know 

 5   the answer to that.  I'll have to consult with a 

 6   member of staff.  

 7                The answer is zero.  And you may ask 

 8   why.

 9                SENATOR KRUEGER:   I might ask why, 

10   thank you.  Through you, Mr. President.

11                SENATOR DeFRANCISCO:   Because the 

12   eligibility standards are much tighter, which 

13   will allow less people to get these credits.

14                SENATOR KRUEGER:   Through you, 

15   Mr. President, on the bill briefly.

16                ACTING PRESIDENT GRIFFO:   Senator 

17   Krueger on the bill.

18                SENATOR KRUEGER:   Actually, on the 

19   resolution.

20                ACTING PRESIDENT GRIFFO:   On the 

21   resolution, Senator Krueger.

22                SENATOR KRUEGER:   Thank you.  

23                So here's one of the big dilemmas 

24   for me.  There's lots of good things I like in 

25   this that we've added back.  But when I do the 


                                                               879

 1   math -- and I don't have time to go through it 

 2   all here -- it really doesn't add up.  And in 

 3   fact, if you look at full annualized costs being 

 4   proposed by my colleagues in their resolution, 

 5   you're leaving us with an aggregate gap of about 

 6   $3.5 billion.  

 7                And yes, it's true you can say if 

 8   you take a list of items that are cut out of the 

 9   state budget, it appears to give us more money.  

10   But so much of that is capital funding or dry 

11   appropriations that we can't turn into cash that, 

12   when I look at this resolution, I go, it's a wish 

13   list that will leave us in the hole aggregate 

14   going forward in years almost $3.5 billion.  And 

15   I can't justify supporting a resolution that 

16   would in fact leave the taxpayers $3.5 billion 

17   further in the hole, because of course it would 

18   mean that we have to cut more important items 

19   actually in the budget.  

20                And just as an example, I believe 

21   that the brownfields tax credit money would add 

22   up as the old brownfields tax credit.  We have 

23   about half a billion on the books yet to be paid 

24   out.  

25                And I am concerned that creating a 


                                                               880

 1   $1.3 billion payout through STAR, another 

 2   $800 million in tax cuts for families -- even 

 3   though who doesn't like tax cuts for families -- 

 4   a package of jobs proposals that the Senate 

 5   Republicans made on Friday allowing for capping 

 6   the tax -- eliminating, excuse me, corporate 

 7   taxes on 200,000 businesses, a 10 percent PIT 

 8   exemption, eliminating corporate tax on 

 9   manufacturers -- it all sounds great, but that's 

10   another billion dollars.  

11                It actually creates in the bill a 

12   section that would require a supermajority to 

13   approve any new taxes.  So that means we would 

14   require 42 of 63 Senators to vote for any new tax 

15   ever, heading into future, which almost ties our 

16   hands to ever, ever create new revenue, even 

17   though this proposal would actually leave us 

18   probably $3.5 billion in the hole in the 

19   outyears.  

20                It also has a number of Article 7 

21   sections that I believe my colleagues will speak 

22   about that can do great harm to important policy 

23   efforts that we have moved forward with in the 

24   years.  

25                So I'm shocked at how little time 


                                                               881

 1   there is to discuss this today.  And of course we 

 2   don't have bills in front of us, we just have one 

 3   resolution, which is an outline.  So a lot of the 

 4   details are actually in the bills that we are not 

 5   voting on and not discussing today.  

 6                Thank you, Mr. President.  

 7                ACTING PRESIDENT GRIFFO:   Thank 

 8   you, Senator Krueger.

 9                Senator Rivera.

10                SENATOR RIVERA:   Thank you, 

11   Mr. President.  On the resolution.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Rivera on the resolution.

14                SENATOR RIVERA:   So I will -- as 

15   has been mentioned before, our time will be brief 

16   here, so I will get right to the point on a few 

17   things that I'd like to bring attention to that 

18   are in the health section of this resolution and 

19   what the resolution refers to as far as one of 

20   the bills that we will eventually see.  

21                First of all, although I do not call 

22   them pots, I've been calling them buckets, I do 

23   agree wholeheartedly with my colleague and with 

24   my Senate colleagues that what the Department of 

25   Health or the Governor proposed in taking all of 


                                                               882

 1   these programs, putting them into all these 

 2   different pots or buckets makes it much more 

 3   difficult for many of the programs to even 

 4   exist.  

 5                They will be competing against each 

 6   other in times when it doesn't really make sense 

 7   for them to compete against each other.  It makes 

 8   it more difficult for these programs to operate.  

 9                I wholeheartedly agree that this is 

10   something that we should resist.  And I'm very 

11   happy to see that this is what happened in this 

12   resolution.  Hopefully it's what happens in the 

13   final budget and we don't have that problem with 

14   public health programs.  

15                So I will laud them for that.  But 

16   there are a few other things that I want to point 

17   out which unfortunately are not in there.

18                Number one, even though they have 

19   also rejected, our colleagues in the Senate here 

20   have rejected the $40 million cut to these public 

21   health programs, they have ignored a proposal 

22   that I put forward that would potentially create 

23   between $35 million and $40 million of revenue 

24   specifically as it relates to taxing tobacco 

25   products at a higher rate, certainly smokeless 


                                                               883

 1   tobacco and other products like cigars.  

 2                In this case, this resolution 

 3   actually has language to cap the tax on cigars at 

 4   50 cents when these things are much more 

 5   expensive, sometimes.  

 6                But that is one way that we could 

 7   generate the revenue that this $40 million cut 

 8   would hit the public health programs with.  So I 

 9   am dismayed that it was not included in this 

10   resolution.  I would suggest that we include it 

11   in the final version of the budget, $35 million 

12   to $40 million of revenue that would go directly 

13   to these kinds of programs.

14                One part that I am only going to 

15   mention briefly because I know that my colleagues 

16   in Brooklyn, Senator Parker and others, will 

17   definitely speak about it, is a pilot program.  

18   The pilot program that was suggested here, that 

19   the Governor suggested to inject private money 

20   into different hospitals across the state 

21   specifically as it relates to SUNY Downstate, but 

22   other.  

23                The original proposal was two pilot 

24   programs.  This is something that is incredibly 

25   concerning to many of us because it would allow 


                                                               884

 1   money to come into public health institutions.  

 2   Unfortunately, the proposal from my Republican 

 3   colleagues actually expands it immensely.  It 

 4   goes from two pilot programs to ten pilot 

 5   programs.  This is a very serious issue.  

 6                We believe that allowing this -- it 

 7   would allow a slot of private money to come into 

 8   public healthcare institutions in the state.  It 

 9   was incredibly concerning to us when it was two 

10   pilot programs, and now that it is 10, it is even 

11   more concerning to us.  I would encourage my 

12   colleagues to reconsider this.  

13                And I certainly would -- I'm very 

14   concerned about what this would do in the long 

15   term to the tradition of nonprofit healthcare in 

16   the State of New York.

17                And just one more thing that I'd 

18   want to point out is currently Executive Budget 

19   includes a proposal to eliminate the Family 

20   Health program, and the Senate Republicans agree 

21   with this proposal.  What it would do is it would 

22   create a part of the coverage for people that are 

23   poor in the State of New York.  We think that 

24   about 77,000 people are potentially going to be 

25   left out in the cold when you're transitioning 


                                                               885

 1   from the elimination of Family Health Plus and 

 2   the spinning up, if you will, of the Affordable 

 3   Care Act money.

 4                There is a serious consideration 

 5   about the folks that are between 139 percent of 

 6   poverty and 149 percent of poverty.  There is a 

 7   discussion, a serious discussion to be had here 

 8   because, again, it is potentially leaving 77,000 

 9   people out in the cold.  Or it would at least 

10   open them up to going into the healthcare 

11   exchange and paying $600 and some odd dollars for 

12   healthcare coverage.  This is a problem because 

13   these folks are likely going not to be able to 

14   afford it since they are about $12,000 a year in 

15   income.

16                So last but not least I'll say that 

17   there are many things in this budget resolution 

18   which I think we should laud.  Certainly the fact 

19   that you have the elimination of the proposal by 

20   the Governor to take the public healthcare 

21   dollars and split them up into all these 

22   different buckets or pots I think is a good 

23   thing.  

24                But the inclusion of the pilot 

25   program and the elimination of Family Health Plus 


                                                               886

 1   and not dealing with the 77,000 folks that might 

 2   be left out in the cold is a big problem.  

 3                So I know that my colleagues will be 

 4   speaking on other parts of it.  But for those 

 5   reasons and many others that my colleagues will 

 6   outline, I will be voting in the negative on this 

 7   resolution.

 8                Thank you, Mr. President.

 9                ACTING PRESIDENT GRIFFO:   Senator 

10   Diaz.

11                SENATOR DIAZ:   Thank you, 

12   Mr. President.

13                Mr. President, as you know, I'm 

14   always happy to see you there.  And you should 

15   know that we have senior citizens over there 

16   listening to us.  And you should also know, 

17   Mr. President, that all my life I have been 

18   working on behalf of senior citizens.  

19                Right now I am the ranking member in 

20   the Senate Aging Committee.  And when I was a 

21   City Council member in New York City in 2001, I 

22   became the chairman of the Aging Committee.  Over 

23   there we had a struggle to protect and defend and 

24   keep senior citizen programs and services.  Then 

25   when I came to the Senate, when we became the 


                                                               887

 1   majority, I became also the chairman of the 

 2   committee.

 3                And we have been fighting.  And 

 4   every single year, Mr. Chairman, you should know, 

 5   ladies and gentlemen, that every single year I 

 6   had to fight because seniors have been cut.  

 7   Every single year.  My struggle, my fight.  And 

 8   my questions are, why are you hitting senior 

 9   citizens after they have given us their life, 

10   their sweat?  We should be protecting them.  

11                Let me tell you and you should know, 

12   Mr. President, that in the Bronx I created Casa 

13   Boricua Senior Center, I created Betances Senior 

14   Center, I created the South Bronx Senior 

15   Transportation Network, I created Millbrook 

16   Senior Center.  So I have been working with 

17   senior citizens.  

18                And every year, as I said before, 

19   ladies and gentlemen, I have to stand here and 

20   stand in the City of New York and everywhere 

21   fighting and asking why seniors have been cut.  

22                But this year, Mr. President, this 

23   year I praise the Lord.  I thank my savior, Jesus 

24   Christ.  Because this year you should know, 

25   ladies and gentlemen, is the first time that 


                                                               888

 1   seniors have not been touched.  And for the first 

 2   time the Majority, Senator Skelos and the 

 3   Majority are asking to increase the budget by 

 4   $2.7 million.  

 5                So I'm here not to criticize this 

 6   time, I'm here to praise.  And I'm here to 

 7   express my appreciation to the Senate Majority 

 8   for taking care of the senior citizens and 

 9   increasing -- not too much, not too much, only 

10   $2.7 million.  But at least you are not cutting 

11   and the Governor is not cutting.  The Governor 

12   wants something, the Senate Majority wants to 

13   increase it, and I applaud and I am here to 

14   support, to thank the Senate Majority for 

15   increasing, for taking care of senior citizens.  

16                And, ladies and gentlemen, my fellow 

17   Senators, praise the Lord.  Thank you very much.  

18   And I am Senator Ruben Diaz, and this is what you 

19   should know.  

20                (Laughter.)

21                ACTING PRESIDENT GRIFFO:   Thank 

22   you, Senator Diaz.

23                Senator Fuschillo.

24                SENATOR FUSCHILLO:   Mr. President, 

25   with unanimous consent, I'd like to recognize 


                                                               889

 1   Senator Flanagan for the purposes of an 

 2   introduction.

 3                ACTING PRESIDENT GRIFFO:   Without 

 4   objection, Senator Flanagan.

 5                SENATOR FLANAGAN:   Thank you, 

 6   Mr. President.

 7                I have the pleasure -- and I really 

 8   appreciate the indulgence of my colleagues.  And 

 9   yes, my last name is Flanagan and yes, to some 

10   extent I think this is the holy day of obligation 

11   or something like that, because the Ancient Order 

12   of Hibernians are having their function tonight 

13   here, right in Albany, and we are joined today by 

14   this evening's honoree.  He had an opportunity to 

15   be over in the Assembly earlier today, and that 

16   is Al Smith, Al Smith IV, who is joined by his 

17   lovely wife Nan, and they are visiting here 

18   today.  He is being honored tonight.  

19                But I just want to give you a quick 

20   snapshot of his background.  He's done a lot of 

21   different things in terms of employment.  But I 

22   think you would remember two things in 

23   particular.  He's done an extraordinary amount of 

24   work in raising money for the prevention and 

25   treatment of cancer, and he put together this 


                                                               890

 1   group called I think it's Hacksters for Hope 

 2   that's been going around for a number of years, 

 3   and they've raised over $12 million for that 

 4   research and treatment.  So he's done a lot of 

 5   terrific philanthropic work.  

 6                For anyone who has had an 

 7   opportunity to go to the Al Smith dinner, I have 

 8   to tell you -- this year was my first 

 9   opportunity, and it was fascinating.  Obviously 

10   you had the President and Mr. Romney there, and 

11   they were both so good that they were almost as 

12   good as the MC, who was Mr. Smith.  He was 

13   engaging, he had great stories, he had a 

14   phenomenal sense of humor.  

15                And I just would ask the indulgence 

16   of this body to recognize him and congratulate 

17   him for being the honoree for tonight's 

18   festivities.  Mr. Smith, nice to see you here.

19                ACTING PRESIDENT GRIFFO:  Thank you, 

20   Senator Flanagan.

21                (Extended applause.)

22                ACTING PRESIDENT GRIFFO:   Thank 

23   you, Mr. Smith.  It's always a pleasure and honor 

24   to have you.  We extend the courtesies of the 

25   house to have the great descendant of the late, 


                                                               891

 1   great Governor Al Smith.  Thank you so much.  

 2                Senator Tkaczyk.

 3                SENATOR TKACZYK:   Mr. President, 

 4   I'll be speaking on the resolution.

 5                ACTING PRESIDENT GRIFFO:   Senator 

 6   Tkaczyk on the resolution.

 7                SENATOR TKACZYK:   As the ranking 

 8   member of the Mental Health and Developmental 

 9   Disabilities Committee, I'd like to make a couple 

10   of comments on the budget that's before us.  

11                Under the Office for People With 

12   Developmental Disabilities, the Senate's budget 

13   proposal fully restores the $120 million cut from 

14   the 6 percent across-the-board reduction proposed 

15   in the Governor's 30-day budget amendment.  These 

16   are funds that are going to non-state-operated 

17   residential and non-residential developmental 

18   disability providers.  

19                I fully support that restoration.  

20   However, I hope that the $120 million restoration 

21   does not result in a cost shift that will lead to 

22   reductions in other areas of the mental hygiene 

23   budget.

24                Under the mental health portion of 

25   the budget, I want to speak briefly about the 


                                                               892

 1   Community Mental Health Reinvestment Act.  The 

 2   entire mental hygiene system is moving towards an 

 3   integrated system of care that is community-based 

 4   and will be coordinating management care along 

 5   with the provision of health and mental hygiene 

 6   services.  

 7                One of the ways we fund local 

 8   community-based mental health services is by the 

 9   savings incurred when we close and downsize state 

10   psychiatric facilities.  This is the sole purpose 

11   of New York's landmark Community Mental Health 

12   Reinvestment Act, which celebrates its 20th 

13   anniversary this year.  

14                The anticipated savings from closing 

15   and downsizing the state psychiatric centers in 

16   this year's proposed budget is $25 million.  The 

17   Governor and Assembly proposed taking $5 million 

18   of that amount and putting that into reinvestment 

19   in the community.  The budget proposal before us 

20   sweeps even that small fund into General Fund 

21   purposes.  

22                The money comes from a real closure, 

23   the Mohawk Valley Psychiatric Center in Utica.  

24   Closing this facility results in real needs for 

25   the community.  


                                                               893

 1                Simply put, community-based 

 2   organizations are being asked to provide more 

 3   services to more people with increasing 

 4   challenging needs in a system that is not keeping 

 5   up with the commitment to the providers who are 

 6   expected to meet those needs.  We've been asking 

 7   them to do more with less; now we're asking them 

 8   to do more with nothing.  I sincerely hope the 

 9   final budget includes restoration of that 

10   funding.  

11                I'd like to speak also a little bit 

12   on education.  I am very pleased that the Senate 

13   budget resolution includes many of the funding 

14   increases I've been fighting for, including an 

15   overall increase in general support for public 

16   schools and additional funding to restore the Gap 

17   Elimination Adjustment.  

18                However, since we don't have 

19   adequate information regarding the amount of aid 

20   that each district will be receiving, I certainly 

21   hope that we will not continue past practices of 

22   shortchanging districts that need it most, 

23   particularly lower-income rural and small-city 

24   school districts in counties like Montgomery, 

25   Greene and other upstate areas.  Upstate rural 


                                                               894

 1   school districts and those in our small cities 

 2   have been denied their fair share of education 

 3   aid for too long and cannot afford to increase 

 4   property taxes to compensate.  

 5                The goal to eliminate the Gap 

 6   Elimination Adjustment for all of our schools in 

 7   three years is laudable, and one I fully 

 8   support.  

 9                I don't like everything in this 

10   budget, but I like most of it.  I'll be voting 

11   aye.  Thank you.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Espaillat.

14                SENATOR ESPAILLAT:   Thank you, 

15   Mr. President.  

16                I rise to speak to the portion of 

17   the budget that addresses housing in the State of 

18   New York.

19                ACTING PRESIDENT GRIFFO:   Senator 

20   Espaillat on the resolution.

21                SENATOR ESPAILLAT:   Yes, 

22   Mr. President.  

23                As you may remember, a couple of 

24   years ago we extended the rent stabilization laws 

25   for the State of New York.  During that very long 


                                                               895

 1   and often contentious debate, we spoke very 

 2   clearly about the needs of tenants throughout the 

 3   State of New York.  And while we extended the law 

 4   and in so doing provided protection for millions 

 5   of tenants across the State of New York, and 

 6   whereas we also slightly strengthened tenant 

 7   protection during that debate, it was also very 

 8   prominent during that debate the call for a 

 9   Tenant Protection Unit within the agency, the 

10   state's agency that governs housing; that is, 

11   HCR.  

12                And the Governor was also an 

13   outspoken member of this government, the state 

14   government, in calling for the establishment of a 

15   Tenant Protection Unit that would protect the 

16   rights of rent-regulated tenants and provide 

17   information to both owners and tenants.  It would 

18   also help increase compliance and enforce rent 

19   regulation.  It would also look to detect 

20   landlords that did not comply with the law or 

21   were fraudulent in their practices.  

22                This is very important, 

23   Mr. President, for thousands of families across 

24   the State of New York that rent their apartments, 

25   that find often that they are victims of 


                                                               896

 1   landlords that are sometimes unscrupulous.  

 2                And I am very distressed to see that 

 3   in this budget the $5.8 million -- which is a 

 4   drop in the bucket.  When you consider that we 

 5   may have a $137 billion budget, that we don't 

 6   have the $5.8 million that both the Governor 

 7   called for and the Assembly called for in their 

 8   resolution is highly distressing.

 9                And so, you know, we are concerned 

10   that this unit, which proposes not only to 

11   provide legal services to tenants that find 

12   themselves in court perhaps facing an eviction, 

13   sometimes an illegal eviction from their 

14   landlords -- not only does this unit proposes to 

15   that, but it also proposes to create a database 

16   so when you rent an apartment, those young 

17   families that start out, maybe a police officer 

18   and a teacher that rent their first apartment 

19   before they start their family, they will be able 

20   to know the full rent history of that apartment, 

21   perhaps even if the apartment has any violations, 

22   if the building has any violations, any issues.

23                So this cannot happen unless we have 

24   some funding behind this unit.  And the 

25   resolution presented by the Majority today does 


                                                               897

 1   not include this funding.  This is not a 

 2   back-breaking effort.  And we ask that that 

 3   funding be included.  

 4                For that reason, Mr. President, I 

 5   will be compelled to vote against this 

 6   resolution.

 7                ACTING PRESIDENT GRIFFO:   Senator 

 8   Gipson.

 9                SENATOR GIPSON:   On the bill.

10                ACTING PRESIDENT GRIFFO:   Senator 

11   Gipson on the bill.

12                SENATOR GIPSON:   Thank you, 

13   Mr. President.

14                As the constituents of my district 

15   in the great Hudson River Valley know, I spent 

16   the last two years campaigning on a platform of 

17   creating new jobs in the Hudson Valley and making 

18   sure that we keep the ones that we have and 

19   trying to reduce the cost of living and also 

20   putting a lot of focus on improving our education 

21   system.  

22                And I'm very happy to say that this 

23   resolution today goes a long way in achieving 

24   those goals, and that the work that we have been 

25   doing here towards those goals has really begun 


                                                               898

 1   to pay off.  And I'm hopeful that we can make 

 2   much more progress on these issues.  

 3                This particular bill proposes that 

 4   we keep the Beacon women's facility open, which 

 5   is in the southern part of my district, which 

 6   currently employs over 120 people in the local 

 7   community and provides urgently needed services 

 8   to a group of women that are looking for a second 

 9   changes in their life.  And I am happy to see 

10   that we are going to hang onto those jobs.  

11                I am encouraging that the Governor 

12   stand by this proposal and work with us to make 

13   sure that we help keep the economy in Beacon 

14   thriving by keeping these local jobs there and 

15   continuing to provide the services that these 

16   women depend upon.

17                Also in my district there is a 

18   juvenile facility in the Town of Red Hook that 

19   provides, again, urgently needed services to a 

20   group of people that would have no other place to 

21   go, including some there who rely on services 

22   that are geared towards the LGBT community.  

23                Again, this resolution restores the 

24   funding to that facility, keeps it open, keeps 

25   the jobs local.  And again, I would encourage the 


                                                               899

 1   Governor to sign onto this and work with us in 

 2   growing the economy locally in the Hudson River 

 3   Valley.

 4                My district also has an enormous 

 5   amount of schools that fall into the category of 

 6   853, which provide very important services to 

 7   those with developmental disabilities.  We have 

 8   increased the aid to these schools in this 

 9   proposal.  

10                This is critically important, in 

11   that these people that go to these facilities 

12   would have no other place to go, they would have 

13   no other place to turn for that funding.  And I 

14   am encouraged to see that we are working in a 

15   bipartisan manner to make sure that these schools 

16   have the funding they need to provide these 

17   valuable services.  

18                With the increased aid to the 853 

19   schools in my district, we will be saving 

20   approximately 750 jobs in the Hudson River 

21   Valley.  That is obviously very important to 

22   growing our economy.  And again, I urge the 

23   Governor to sign onto this resolution in respect 

24   to that particular issue.

25                My district in the Hudson River 


                                                               900

 1   Valley also has an enormous amount of 

 2   agriculture.  And one of the great things that 

 3   I've seen in this particular resolution is that 

 4   there is a proposal to remove the 18-a utility 

 5   assessment charge.  The farms across New York 

 6   State, including those in my district, are some 

 7   of the biggest users of utilities in this state.  

 8   They will benefit greatly by removing this tax, 

 9   which is making it more expensive for them to do 

10   the farming that they need and making it more 

11   expensive for them to hire local.  

12                So I am reaching way across the 

13   aisle -- I want it to be noted that I am reaching 

14   way across the aisle in working with my 

15   Republican counterparts and hopefully asking that 

16   the Governor remove this unnecessary tax in the 

17   state budget.

18                And I am also very encouraged that 

19   we are making steps towards offering some mandate 

20   relief to our local governments in this 

21   resolution.  As a person who comes from local 

22   government, I can attest to the fact that mandate 

23   relief is something that our local governments 

24   desperately, desperately need.  

25                I would consider this to be very 


                                                               901

 1   much on the light side of mandate relief, but at 

 2   least we are offering up $20 million that the 

 3   Governor did not have in his budget.  That is a 

 4   step in the right direction.  We are going to 

 5   need to do to a lot better than that moving 

 6   forward, and I would encourage us all to find a 

 7   way to do that in the future.

 8                I just want to touch briefly on 

 9   school aid.  We are increasing, in this 

10   resolution, school aid, and we are adding in 

11   greatly needed aid to all of our local schools.  

12   But I would say to point out this, that the way 

13   that we're funding schools right now is a bit of 

14   a shell game.  And even though I'm happy to see 

15   that we are greatly increasing school aid in this 

16   budget, the way in which we're doing it, the 

17   formulas which we are doing it by are somehow 

18   confusing, somewhat outdated, in great need of 

19   revision.  

20                And I just want to point out that I 

21   am the sponsor of something called the Equity in 

22   Education Act that would totally change and 

23   reform the way that we fund education so that we 

24   can make sure that all of our schools are getting 

25   the funding that they need in this urgent time to 


                                                               902

 1   make sure that we are competing globally and that 

 2   the schools in the poor part of our districts are 

 3   getting the same type of funding as the schools 

 4   in the wealthy part of our districts.  And that 

 5   bill would do that, and it would take it even 

 6   further than we have gone with this particular 

 7   resolution.  

 8                I am going to be voting yes on this 

 9   resolution, and I appreciate you giving me time 

10   to speak on it.

11                ACTING PRESIDENT GRIFFO:   Senator 

12   Peralta.

13                SENATOR PERALTA:   Thank you, 

14   Mr. President.

15                When I look at this one-house 

16   budget, I see a few good things, like a rejection 

17   of the Beacon closure and a restored funding for 

18   local workforce training.  I also see some bad 

19   things, like concurrence with the Governor's 

20   unemployment insurance reforms, which would raise 

21   the qualifying threshold and have a devastating 

22   effect on low-wage workers across this state.  

23                But mostly I see missed 

24   opportunities.  This chamber had the chance to 

25   lead on the critical issues of our time and 


                                                               903

 1   instead decided to play it safe.  

 2                Instead of fighting for an increased 

 3   minimum wage indexed to inflation, which would 

 4   help bring New York's working poor out of poverty 

 5   and keep the issue from remaining a political 

 6   football going forward, you decided to punt.  

 7                Instead of giving hope and 

 8   opportunity to thousands of young New Yorkers by 

 9   pushing for the DREAM Act, you stood silent.  

10                Both of these measures are about 

11   more than just helping the disenfranchised.  They 

12   are about providing for the future of our state 

13   as a whole.  

14                Increasing the minimum wage is not a 

15   job killer, as opponents deride.  In fact, the 

16   various proposals on the table can be expected to 

17   generate between 7,000 and 15,000 new jobs.  

18   Passing the DREAM Act might cost a little bit 

19   more right now, but it will pay clear and 

20   tangible dividends in the near future.  

21                Let's not lose the opportunity to 

22   make a real investment for the future of this 

23   great state.  College graduates pay an extra 

24   $3900 in annual state taxes, meaning that TAP 

25   funding for the undocumented could more than pay 


                                                               904

 1   for itself within six years, on average.  

 2                Being a leader means taking a stand 

 3   instead of the path of least resistance.  These 

 4   are the issues on which we must lead, and here is 

 5   where we must take our stand.  That's why we need 

 6   a real minimum wage attached with an index and a 

 7   DREAM Act that paves a path to future 

 8   prosperity.  

 9                Mr. President, I have to vote nay.  

10   Thank you.

11                ACTING PRESIDENT GRIFFO:   Senator 

12   Hassell-Thompson.

13                SENATOR HASSELL-THOMPSON:   Thank 

14   you, Mr. President.

15                While I concur with most of the 

16   public protection portion of the budget 

17   resolution, I am concerned and disappointed that 

18   the transfer of Fulton Correctional Facility has 

19   been capriciously rejected.  I strongly urge the 

20   Coalition to reconsider its position regarding 

21   the Executive's adaptive reuse plan to transfer 

22   the Fulton Correctional Facility to the Thomas 

23   Mott Osborne Society.  

24                Osborne is an institute of unmatched 

25   experience in the implementation of reform and 


                                                               905

 1   rehabilitation programs.  It provides 

 2   opportunities for individuals in conflict with 

 3   the law through rehabilitation programs.  The 

 4   Fulton plan proposes to restore to the community 

 5   priceless opportunities preventing and reducing 

 6   the damage caused by crime and incarceration.

 7                I also have a concern about the 

 8   proposed elimination of the New York City 

 9   presentence investigation and submission of 

10   written report when an individual is sentenced to 

11   a term of imprisonment up to one year or less.

12                The information that is contained in 

13   a presentence report has vital information not 

14   only about the offense which resulted in 

15   imprisonment, but also about the individual.  

16   Individuals who will be incarcerated up to a year 

17   will be away from their families, their doctors, 

18   their jobs and their communities.  For 

19   individuals that may suffer from health 

20   conditions requiring medication or medical 

21   history requiring certain prohibitions from 

22   physical activity, mental health, substance and 

23   alcohol abuse issues, this information would not 

24   be available.

25                This report also functions as an 


                                                               906

 1   important tool and resource for the facility to 

 2   more effectively assess the needs of the offender 

 3   who they are charged with the responsibility of 

 4   housing.  And it's an additional tool for the 

 5   judge to use when sentencing an individual, 

 6   notwithstanding a negotiated sentence.

 7                Lastly, this portion of the public 

 8   protection portion speaks to the closure of 

 9   prisons.  I am appreciative of the Senate's 

10   recommendation to reject the Governor's proposal 

11   to close the Beacon Correctional Facility in 

12   Dutchess -- and I want to congratulate my 

13   colleague Senator Terry Gipson for the leadership 

14   that he has provided -- but also to the Senate 

15   for recognizing that Beacon is the last remaining 

16   women's minimum-security facility in New York 

17   State and, if this prison closes, the inmates 

18   will potentially have to be moved to 

19   medium-security or maximum-security facilities 

20   over 376 miles away from Dutchess County, 

21   creating hardships for families and especially 

22   for children in their visitation to parents.

23                Finally, I want to echo my 

24   colleague's sentiment that even if, against our 

25   recommendation, the Executive does in fact close 


                                                               907

 1   Beacon or Bayview, it is critical that proper 

 2   notice under the current law be adhered to.  

 3                Currently, New York correction law 

 4   requires the commissioner of the Department of 

 5   Correctional Services to provide at least 

 6   12 months' notice of this prison closure.  And in 

 7   doing so, it will give an opportunity for the 

 8   kind of activities that the Bronx has 

 9   participated in in trying to present a program 

10   for reuse of the Fulton facility, and will give 

11   economic empowerment back to communities as well 

12   as respond to the needs of people coming out of 

13   prison to reduce recidivism.

14                The last comment, I'd like to just 

15   make a quick point in congratulating also the 

16   Senate for denying the Executive's proposal to 

17   appropriate $3 million for the state's operation 

18   for the Department of Economic Development for 

19   the 2016 MWBE disparity study.  

20                As many of you know, this study was 

21   done as a preliminary to the development of 

22   legislation passed by this body and by the 

23   Assembly to ensure that there's full 

24   participation of minorities and women in this 

25   state.  


                                                               908

 1                This disparity study sunsets in 

 2   February of 2016.  In order to ensure that we can 

 3   evaluate whether or not MWBEs have had a fair 

 4   opportunity to participate in the state's 

 5   contracting opportunities, this disparity study 

 6   must in fact be done.  So I thank this body for 

 7   ensuring that the $3 million necessary for this 

 8   study is appropriated in this resolution.

 9                Thank you, Mr. President.

10                ACTING PRESIDENT GRIFFO:   Senator 

11   Savino.

12                SENATOR SAVINO:   Thank you, 

13   Mr. President.

14                You know, I've heard it said here 

15   several times now that this is a very good 

16   one-house budget resolution that has a lot of 

17   very good things that are in it.  

18                This is the ninth time I've 

19   participated in this annual budget dance.  And 

20   there are a lot of very good things in this 

21   one-house budget resolution, and let's kind of 

22   recap some of them, particularly for issues that 

23   are important to me and to many of the people in 

24   this room.  

25                Senator Diaz mentioned that for the 


                                                               909

 1   first time, senior programs are not on the 

 2   chopping block.  We don't have them worried about 

 3   whether there's going to be funding there for 

 4   them.  Not only have we kept it, we've actually 

 5   increased it, for the first time in the nine 

 6   years I've been in the New York State Senate.

 7                Nurse-Family Partnership, a 

 8   critically important program that many of the 

 9   members of the Senate fought to create a few 

10   years ago, is not only still in the budget, it's 

11   not only accepted the Governor's recommendation, 

12   we added $2 million.  Because that's how much we 

13   think the Nurse-Family Partnership matters and 

14   how important it is to women and particularly 

15   women with small children.

16                We all stood up and said we weren't 

17   going to accept the Governor's recommendations of 

18   cutting an additional 6 percent from 

19   developmental disabilities, and we put our money 

20   where our mouth is and we put that money back in 

21   the budget and we said no to that.  That's a good 

22   thing.

23                We've also found ways to deal with 

24   something that was a terrible injustice that was 

25   perpetuated on a group of employees a few years 


                                                               910

 1   ago when this house could not get together enough 

 2   votes to make sure that OTB continued beyond 

 3   their deadline.  When 800 employees lost their 

 4   jobs and hundreds of retirees lost their health 

 5   insurance, we said then we were going to fix it.  

 6   Last year we tried, we didn't put the money in 

 7   the budget, and the Governor vetoed it.  

 8                Well, this year we're putting the 

 9   money in the budget.  Again, living up to a 

10   commitment we made to people who gave their lives 

11   to public service so that they don't die in 

12   poverty because they can't afford to pay their 

13   medical bills.  That's a good thing.

14                Unemployment insurance reform.  I've 

15   been talking about it, it's been an issue of 

16   discussion ever since I got involved in the labor 

17   movement in this state.  And I don't want to tell 

18   you how long ago that has been, because I'm 

19   getting older every year.  

20                But every year there was discussion 

21   about UI reform:  How do we drag a system that 

22   was built in the industrial manufacturing economy 

23   into the modern times, how do we stabilize the 

24   system, how do we shore up the funds, and how do 

25   we finally do something about increasing the 


                                                               911

 1   average worker's weekly wage replacement?  We're 

 2   doing all of that.

 3                And with respect to the concern 

 4   about earning a certain amount of money to be 

 5   eligible for the minimum, when we do something 

 6   else in this budget, we're going to solve that 

 7   problem.  When we raise the minimum wage, we will 

 8   close that gap so those low-wage workers will not 

 9   be shut out.

10                In this budget resolution it states 

11   clearly that it is the intention of the Senate to 

12   modify the Governor's proposal and to do a 

13   minimum-wage increase just like this Legislature 

14   did in 2004.  Some of you were here.  I was not; 

15   I was still an activist in the labor movement.  

16   And an issue that we worked on for several years 

17   to get the minimum wage raised in New York State 

18   was finally accomplished on July 21st of 2004, 

19   when this house passed the minimum wage increase 

20   setting three increases on a date certain:  

21   July 1st of 2005, July 1st of 2006, and July 1st 

22   of 2007.

23                When we are done negotiating this 

24   budget, we will do the same thing.  We are going 

25   to raise the minimum wage for low-wage workers in 


                                                               912

 1   this state because it's the right thing to do.  

 2                So there's a lot of good stuff in 

 3   this budget resolution.  I am very proud to have 

 4   participated in it.  And I'm very proud to go 

 5   into the next round of negotiations where the 

 6   Senate fights like hell to hold onto the things 

 7   that we know are important, and we are going to 

 8   do that together.  And we are going to have a 

 9   budget that each one of us can be proud of.  

10                Thank you, Mr. President.

11                ACTING PRESIDENT GRIFFO:   Senator 

12   Stavisky.

13                SENATOR STAVISKY:   On the 

14   resolution.  On the higher education parts of the 

15   resolution.

16                ACTING PRESIDENT GRIFFO:   Senator 

17   Stavisky on the resolution.

18                SENATOR STAVISKY:   Obviously the 

19   restoration of base aid to the -- or increasing 

20   the base aid to the community colleges, both SUNY 

21   and CUNY, by $150 per full-time equivalent, is a 

22   good thing.  And there are many other good parts 

23   to this budget.  But there are three areas that I 

24   think need improvement.

25                Number one, we've got to support 


                                                               913

 1   SUNY's request and the request of the president 

 2   of Upstate Medical School for the $150 million 

 3   restructuring of Downstate, the short-term aid 

 4   that they require, and the Medicaid adjustment.  

 5   Because if SUNY Downstate goes, so will the other 

 6   SUNY medical schools and their hospitals that are 

 7   associated with them.

 8                Secondly, I think the resolution 

 9   should have rejected the Article 7 language 

10   calling for the pilot project for Kings County 

11   and one other county upstate in terms of 

12   providing a for-profit mechanism, a for-profit 

13   model for the medical schools and the hospitals.  

14   This I think is a very dangerous precedent, and I 

15   think that Article 7 language should have been 

16   rejected.

17                And the third area is the DREAM 

18   Act.  The Assembly, I believe, in their budget 

19   resolution is going to call for a $25 million 

20   allocation for the DREAM Act.  These are kids who 

21   came to the United States as young people.  They 

22   are undocumented, not their fault.  And providing 

23   them with TAP and opportunity programs to me is 

24   the fair and the right thing to do.

25                The community will benefit, there 


                                                               914

 1   will be a stimulus to the economy in terms of 

 2   they're going to be buying locally.  They're not 

 3   going to be buying the airplanes with the reduced 

 4   sales tax.  Those are not the -- that's not going 

 5   to be in their budget plans.  They're going to be 

 6   working people who are going to receive a salary, 

 7   they're going to be paying taxes, they are going 

 8   to be buying locally.  And to me it's an economic 

 9   stimulus that I think we ought to take advantage 

10   of.

11                So I urge the Senate during the 

12   budget conference committees to restore the DREAM 

13   Act and to provide for the hospitals and the 

14   medical schools.

15                Thank you, Mr. President.

16                ACTING PRESIDENT GRIFFO:   Senator 

17   Hoylman.

18                SENATOR HOYLMAN:   Mr. President, on 

19   the resolution.

20                ACTING PRESIDENT GRIFFO:   Senator 

21   Hoylman on the resolution.

22                SENATOR HOYLMAN:   Mr. President, I 

23   oppose this budget resolution because of the 

24   unfair and inequitable way it treats New York 

25   City schoolchildren.  


                                                               915

 1                I think most of us realize that 

 2   New York City in this resolution stands to lose 

 3   $240 million a year because city officials could 

 4   not come to an agreement with teachers over an 

 5   evaluation system.  But, Mr. President, this is 

 6   not the first time New York City's 1.3 million 

 7   public school kids have lost out at the hands of 

 8   government.  

 9                New York City's public school kids 

10   are already losing an additional $260 million a 

11   year in Race to the Top funds, and this chamber 

12   eliminated and made permanent over $300 million 

13   annually in aid and incentives for 

14   municipalities, completely zeroed out.  And now, 

15   Mr. President, this $240 million cut.  

16                And these are cuts that will keep on 

17   cutting.  Remember, they're annual, impacting 

18   every borough of Manhattan, and will escalate to 

19   over a billion dollars in fewer than five years.

20                It's been said that we are punishing 

21   the 1.3 million schoolchildren in New York City 

22   because the adults couldn't come to an 

23   agreement.  Mr. President, I could not agree 

24   more.  It's the adults, not the kids, who should 

25   be put into detention for not being able to work 


                                                               916

 1   out a solution.  It's the adults, not the kids, 

 2   who, barring alternatives, need to find a way to 

 3   fully fund New York City's education system as 

 4   mandated by the court order in the Campaign for 

 5   Fiscal Equity lawsuit.

 6                And it's the adults, Mr. President, 

 7   not the children, who have the responsibility to 

 8   make certain that we have a literate, educated 

 9   and functioning workforce and democracy in our 

10   state.  No less than Thomas Jefferson said that 

11   "An enlightened citizenry is indispensable for 

12   the proper functioning of a republic."  

13   Self-government is not possible unless the 

14   citizens are educated sufficiently to enable them 

15   to exercise oversight.  Therefore, Mr. President, 

16   it is imperative that our nation see to it and 

17   our state sees to it that a suitable education is 

18   provided to all its citizens.

19                Mr. President, I cannot support this 

20   resolution, because not only does it shortchange 

21   New York City's 1.3 million public 

22   schoolchildren, but it also undermines the future 

23   of our state.  A court has recently intervened 

24   and ordered this $240 million cut to be held in 

25   escrow.  And our colleagues in the Assembly 


                                                               917

 1   restored the funding to New York City's public 

 2   school system in their budget resolution.  

 3   Mr. President, I strongly believe that we should 

 4   do the same.  

 5                And for these reasons, I will be 

 6   voting nay on the resolution.

 7                ACTING PRESIDENT GRIFFO:   Senator 

 8   Kennedy on the resolution.

 9                SENATOR KENNEDY:   Thank you, 

10   Mr. President.  

11                I rise today to express support for 

12   major components of the proposed budget 

13   resolution; however to also bring attention to 

14   several issues I believe require more work and 

15   inclusion in the final budget.

16                With this budget resolution, our 

17   chamber is making a statement that we believe our 

18   state must do more to support at-risk children 

19   and young people.  By reinstating funds for 

20   Operation SNUG and for the Court-Appointed 

21   Special Advocates program, otherwise known as 

22   CASA, we are poised to make a real difference in 

23   the lives of young people in communities across 

24   our state.

25                With homicides up by nearly 


                                                               918

 1   40 percent in the City of Buffalo, action is 

 2   urgently needed to stop the violence.  By 

 3   relaunching Operation SNUG, we will help cut down 

 4   on gang activity and make Buffalo and cities 

 5   across the state safer.  When SNUG received 

 6   adequate funding previously, it helped curb gang 

 7   activity in Buffalo and several other cities and 

 8   towns.  

 9                CASA provides volunteer advocates 

10   for abused and neglected children in foster care 

11   and the Family Court system.  Essentially the 

12   program ensures that young people gain access to 

13   the support and services they need to avoid 

14   destructive decisions.  Children need the helping 

15   hand and supportive voice that the CASA program 

16   provides.  

17                Both programs carry very minimal 

18   price tags compared to the tremendous positive 

19   impact they've already made in communities all 

20   across New York State.

21                The Senate has also stepped up to 

22   protect people with developmental disabilities.  

23   After a potential 6 percent cut to OPWDD was 

24   announced, we raised our voices.  We raised our 

25   voices and sent a message across the state that 


                                                               919

 1   these cuts are not acceptable.  These cuts pose a 

 2   major threat to our state's most vulnerable 

 3   citizens.  

 4                This fight is not yet over.  We must 

 5   ensure that this critical funding remains a part 

 6   of the final budget plan as negotiations 

 7   continue.

 8                Rebuilding and strengthening our 

 9   infrastructure remains an urgent priority across 

10   the state as well.  In years past, Western 

11   New York hasn't received its fair share of 

12   resources for our roads and bridges.  More 

13   recently, things have started to change.  It 

14   has become a priority to correct past funding 

15   shortfalls and ensure a fair allocation of 

16   funds are sent to Western New York for road and 

17   bridge reconstruction.

18                As the budget negotiations continue, 

19   I urge the state to boost resources for 

20   infrastructure improvements, especially in 

21   Western New York.  Let's continue to take steps 

22   to fill the funding gap left behind by 

23   disparities suffered in past years.  

24                We must also ensure the 

25   accountability and efficiency of our state's 


                                                               920

 1   transportation agencies.  State investments in 

 2   our roads and transit systems need to be spent 

 3   transparently, wisely and promptly.

 4                I'm pleased to support the call for 

 5   a new five-year SUNY capital plan.  It's critical 

 6   to protecting the academic infrastructure of our 

 7   SUNY system.

 8                The state must also ensure that 

 9   economic development and job creation remain a 

10   top priority.  To that end, our state must 

11   support those programs that have proven effective 

12   in building local industries and growing regional 

13   economies.

14                In Buffalo, we've been building 

15   burgeoning life science industries with the help 

16   of the UB Center of Excellence in 

17   Bioinformatics.  The Centers of Excellence 

18   program deserves additional support, and the 

19   state must now help Buffalo and its Center of 

20   Excellence in Materials Informatics get up and 

21   running.

22                We in the Legislature granted the 

23   University at Buffalo a designation to create 

24   this new center, and we made an initial 

25   allocation of funding.  But now they need our 


                                                               921

 1   support to begin their work to create jobs in 

 2   these cutting-edge technologies.  We must 

 3   adequately fund this and other centers like it 

 4   across the state.

 5                As technology advances and 

 6   industries change, so do the skills required to 

 7   fill the jobs gap and fill jobs in the regional 

 8   economies across the state.  It's given rise to 

 9   what's become known as the skills gap, or the 

10   disparity between skills potential employers 

11   require and the skills that exist in the 

12   population seeking employment.

13                In Western New York the skills gap 

14   is largely to blame for approximately 1,000 local 

15   manufacturing jobs that go unfilled each month.

16                Governor Cuomo outlined an 

17   initiative to address this persistent trend, 

18   called the Next Generation Jobs Linkage Program.  

19   It's a program that deserves our support.  This 

20   jobs training program is similar to a proposal we 

21   drew up called the Centers for Workforce 

22   Achievement.  These programs are designed to 

23   partner community colleges with local employers 

24   to develop a skilled workforce for growth 

25   industries in our regional economy.  It will help 


                                                               922

 1   bridge this gap, this skills gap, this jobs gap.  

 2   It will help lead to high-wage jobs in programs 

 3   for graduates, and a highly trained workforce, 

 4   and help support local businesses.  I urge 

 5   support for this critical program to get New 

 6   Yorkers back to work.  

 7                And last but certainly not least, I 

 8   reiterate my call for an increase in the minimum 

 9   wage.  As the Governor stated in his State of the 

10   State remarks at the beginning of the year, and I 

11   quote:  "It is the right thing to do.  It is the 

12   fair thing to do.  It is long overdue."

13                Let's pass an increase in the 

14   minimum wage that reflects our respect for the 

15   value of hard work, so that hardworking 

16   New Yorkers can hold their heads high after a 40, 

17   50, or 60-hour work week and can return home to 

18   their loved ones with not just a paycheck but 

19   with the dignity that they deserve as well.

20                Thank you, Mr. President.

21                ACTING PRESIDENT GRIFFO:   Senator 

22   Parker.  

23                SENATOR PARKER:   Mr. President, on 

24   the resolution.

25                ACTING PRESIDENT GRIFFO:   Senator 


                                                               923

 1   Parker on the resolution.

 2                SENATOR PARKER:   We've gotten to 

 3   the point in the process when everything has been 

 4   said, everybody just hasn't said it yet.  And so 

 5   let me add my voice to the chorus of those who 

 6   have some mixed emotions about what we see here 

 7   in this resolution.  

 8                There's certainly some things that I 

 9   think were done right, and I applaud folks who 

10   worked on this in terms of working hard to kind 

11   of right some wrongs.  But there's still some 

12   things that we have yet to really resolve in any 

13   kind of significant way.  

14                I'm going to make six quick points, 

15   one about Downstate Medical Center's financial 

16   crisis and the privatization language; around 

17   education, around restoring full funding for 

18   schools and particularly around the Campaign for 

19   Fiscal Equity lawsuit; the minimum wage; 18-a; 

20   lack of support for the developmentally disabled; 

21   and MWBEs.

22                Let me just start with the minimum 

23   wage.  And Senator Peralta and then Senator 

24   Kennedy just touched on it.  We have to do a 

25   minimum wage.  And I was actually disappointed 


                                                               924

 1   that this Senate resolution does not contain a 

 2   specific proposal around the minimum wage with 

 3   indexing.  

 4                I have a bill that actually is based 

 5   on the Fiscal Policy Institute's analysis that 

 6   said had we been indexing the minimum wage since 

 7   1970, we would now be at $11.15.  So I have a 

 8   bill that would make the minimum wage in the 

 9   state $11.15, with indexing.  I know you might 

10   have been waiting for that proposal.  So if you 

11   want to add that, you know, to the final version, 

12   I'm happy to be taking cosponsors on that bill.

13                And then as it relates to Downstate 

14   Medical center in Brooklyn -- and this is really 

15   right now a crisis.  We have a significant 

16   medical crisis in Brooklyn, the fourth largest 

17   city in the country, the largest county in the 

18   universe.  As we call -- me and Simcha Felder 

19   called it, "the People's Republic of Brooklyn."  

20                But we've been shortchanged as 

21   relates to healthcare.  And this is a problem not 

22   just for Downstate but also for Long Island 

23   College Hospital, LICH, as we lovingly called it, 

24   which is scheduled to be closed.  And I've been 

25   working with Senator Daniel Squadron and others 


                                                               925

 1   around both saving that hospital, which is 

 2   important not just for the community that it sits 

 3   in, but for the surrounding communities in places 

 4   like Red Hook that were hit particularly hard by 

 5   Superstorm Sandy.

 6                Let me be clear that Downstate 

 7   treats nearly 400,000 patients on an annual 

 8   basis, and about 85 percent of them are 

 9   African-American.  Many of the communities suffer 

10   from high rates of chronic illness, including 

11   obesity, hypertension, diabetes, and require 

12   ready access to quality healthcare services.  

13                For many, Downstate is the first 

14   choice and the last resort for their healthcare 

15   needs in our communities.  It trains the largest 

16   number of black and Latino healthcare 

17   professionals in the entire country.  If 

18   Downstate were closed, it would devastate 

19   Brooklyn and deepen Brooklyn's healthcare 

20   crisis.  

21                And so, you know, my message around 

22   Downstate is that it is too big to fail and we 

23   need to address it.

24                The budget contains also some 

25   privatization language.  You heard Senator Rivera 


                                                               926

 1   talk about it; you heard Senator Stavisky, our 

 2   ranker on Higher Education, also talk about this 

 3   privatization language that now went from like 

 4   two hospitals to now 10 hospitals.  It's 

 5   amorphous language.  It doesn't really tell us 

 6   what the privatization proposal is.  

 7                And I want to suggesting that both 

 8   the Senate majority, the IDC and the Governor 

 9   eliminate that language until we can clarify it 

10   and have more conversation about it.

11                As it relates to education, we're 

12   not really doing nearly enough as relates to 

13   education.  First, it's unconscionable that this 

14   budget does not restore the $260 million cut from 

15   New York City public schools.  You know, we are 

16   now punishing children because adults can't get 

17   along.  And I don't know anywhere where that 

18   actually makes sense.

19                Put that money back.  Let's figure 

20   out a way to get teacher evaluations.  We all 

21   voted for it, we believe it's the right thing to 

22   do.  But we can't punish children because adults 

23   can't get along.

24                In addition, we have yet to live up 

25   to our fulfillment of the Campaign for Fiscal 


                                                               927

 1   Equity lawsuit.  In 2006, I stood up in this body 

 2   and I took 13 no votes on the budget because of 

 3   CFE.  I'm prepared to do the same thing this time 

 4   as well if in fact we don't make sure that we 

 5   take care of the high-needs school districts 

 6   around the State of New York.

 7                As relates to 18-a -- and Senator 

 8   Gipson eloquently talked about how important this 

 9   was.  You know, let me just congratulate the 

10   drafters of this resolution for eliminating the 

11   18-a surcharge.  This is a surcharge that really 

12   ought to be used for its intended purpose, which 

13   is to make sure that the rate cases are being 

14   heard by the PSC.  

15                When you take that money -- when you 

16   increase the fee and then take the money and put 

17   it into the budget and then make it, you know, 

18   forever, you get rid of both legislative 

19   oversight but then you also pass on a tax.  

20   Mr. Governor, I thought you said no new taxes.  

21   18-a is a tax that is passed down directly to 

22   ratepayers.  It has to go.  And I'm glad that 

23   this Senate resolution does not contain it.

24                As relates to the issues around the 

25   developmentally disabled community, there's a 


                                                               928

 1   whole clawback issue with the federal 

 2   government.  You know, and we just haven't 

 3   addressed this the right way.  That money that 

 4   was overpaid was overpaid because of state 

 5   hospitals.  But then we're making the entire 

 6   system repay the money.  That's not the right way 

 7   to go.  

 8                And I am supportive of the 

 9   $120 million additional funding that was added 

10   into the budget on this issue, but we're still 

11   not doing enough to help people and families who 

12   deal with autism and autism spectrum disorders 

13   but also other kind of developmentally disabled 

14   persons in our community.  And I urge us to do a 

15   lot more.

16                As I conclude, I'm going to 

17   reiterate what Senator Ruth Hassell-Thompson 

18   spoke about as it relates to starting to put 

19   funds in now for the next disparity study 

20   regarding women and minority business 

21   development.  

22                If we want to look at how we in fact 

23   deal with this jobs issue, particularly as it 

24   relates in black and Latino communities, it is 

25   about creating businesses.  Because it's really 


                                                               929

 1   small businesses in those communities and access 

 2   to contracting with the state and local 

 3   governments that in fact provide economic 

 4   opportunities that will help lift us out of this 

 5   jobs crisis that we've been in for a number of 

 6   years.  

 7                We not only need to have another 

 8   disparity study, we still also need to implement 

 9   all of the recommendations from the last 

10   disparity study.  And so while I want to applaud 

11   the Governor for having a 20 percent goal, what 

12   he has not done is put in enough money into the 

13   infrastructure of state government that allows 

14   the recommendations to be implemented.  And so 

15   you have policies, but no people in the agencies 

16   to in fact actually manifest the work that you 

17   want done.  

18                And so this budget is short on 

19   that.  I ask the Governor and I ask this body to 

20   be more responsive and to add this year about 

21   $4 million in for MWBE work around the different 

22   agencies in the state.

23                Thank you very much, Mr. President.

24                ACTING PRESIDENT GRIFFO:   Senator 

25   Montgomery.  


                                                               930

 1                SENATOR MONTGOMERY:   Yes, thank 

 2   you, Mr. President.  I would just like to speak 

 3   on the resolution.

 4                ACTING PRESIDENT GRIFFO:   Senator 

 5   Montgomery on the resolution.

 6                SENATOR MONTGOMERY:   Thank you.  

 7                There are just several areas that I 

 8   would like to comment on.

 9                First, I want to say how pleased I 

10   am that this resolution reflects certainly what I 

11   and many of my colleagues on this side consider 

12   to be extremely important, and that is programs 

13   for youth in our state.  

14                The Executive's proposal has 

15   suggested that we should combine the YDDP and the 

16   SDPP programs into one and consider that to be 

17   the Youth Development Program, period.  This 

18   proposal rejects that, because we understand that 

19   those two programs serve, in very different ways, 

20   different parts of our state.  The YDD program 

21   primarily has funded county-wide, county-based 

22   youth development programs, while the Special 

23   Delinquency Prevention Program has funded 

24   specific communities within the state and within 

25   counties.


                                                               931

 1                This resolution honors that and 

 2   further clarifies some of the language as it 

 3   relates to how these funds will be allocated.  I 

 4   am happy about that, because we did not want to 

 5   see those programs disrupted.  And we also are 

 6   happy to see that this resolution has increased 

 7   the funding for those programs.

 8                Also, I'm not happy to see that we 

 9   have rejected, essentially -- this resolution, 

10   anyway, has rejected the proposal to expand the 

11   Close To home initiative.  And I do hope that 

12   that is one of those things that we can continue 

13   to negotiate about, because we would like to see 

14   what are the positive aspects of this program, 

15   which relates to how we treat young people who 

16   are in trouble in our state.  It relates to how 

17   we view them as rehabilitative as opposed to just 

18   building baby prisons for them.

19                So the Close To Home is as important 

20   for children upstate as it is for New York City.  

21   And as you know, we have already begun to 

22   implement successfully, to a large extent, 

23   Close To Home in New York City.  We would like to 

24   see that continue statewide.

25                I also am extremely pleased to see 


                                                               932

 1   that this resolution has continued our tradition 

 2   of funding the Neighborhood Preservation Programs 

 3   in our state as well as the rural programs, Rural 

 4   Preservation Programs.  And in addition, this 

 5   resolution has added $3 million for the 

 6   Main Street Program, which is another one that 

 7   certainly serves organizations in my own district 

 8   and in districts in the city engaged in community 

 9   preservation, both residential and commercial and 

10   economic.

11                I am also happy to see that we have 

12   rejected the attempt to dismantle these programs 

13   and eliminate them as stand-alone programs in our 

14   budget, which in my estimation in the long run 

15   would threaten the possibility of us continuing 

16   their work.

17                I do want to say, however, that 

18   there is one glaring omission in this budget, and 

19   that is what happens to the State of New York's 

20   health institution, the institution of higher 

21   education in our borough in particular, and that 

22   is Kings County.

23                As you know, we're the largest 

24   county.  We have the largest population, yet we 

25   are experiencing an attack on our healthcare 


                                                               933

 1   system.  And so this budget does not speak to the 

 2   need that we have in the Borough of Brooklyn in 

 3   the County of Kings to make sure that SUNY 

 4   Downstate medical hospital and school are able to 

 5   survive the current crisis and build into the 

 6   future.

 7                We need $150 million to make sure 

 8   that SUNY Downstate survives, as well as our 

 9   other health hospitals and medical schools in the 

10   state also survive.  I see that we've restored 

11   the $28 million for the three institutions, but 

12   we need $100 million for SUNY now.  It would be 

13   irresponsible to support a budget resolution 

14   which does not support our need, our urgent need 

15   to secure that facility and those schools across 

16   our state.

17                So, Mr. President, while I, as 

18   noted, have a lot of reasons to be very, very 

19   happy with the proposals represented in this 

20   resolution, I am loath to support a resolution 

21   which does not consider a very, very major issue 

22   for the County of Kings, and that is the SUNY 

23   Downstate institution and its success from this 

24   point going forward.  

25                So thank you for allowing me to 


                                                               934

 1   speak on this, Mr. President.

 2                ACTING PRESIDENT GRIFFO:   Senator 

 3   O'Brien.

 4                SENATOR O'BRIEN:   Thank you, 

 5   Mr. President.  On the resolution.

 6                ACTING PRESIDENT GRIFFO:   Senator 

 7   O'Brien on the resolution.

 8                SENATOR O'BRIEN:   The Governor is 

 9   to be commended for presenting us some time ago a 

10   budget that didn't raise taxes.  And I know that 

11   everyone connected to any of the several 

12   conferences that we have in the Senate now has 

13   been working diligently towards getting towards 

14   an on-time budget, both of which are extremely 

15   important to our stability as a state and 

16   preparing for our future.  

17                But there's still great weakness in 

18   our economy.  And we have to prioritize, in my 

19   view, those things that will help us move our 

20   economy forward.  And I believe this resolution 

21   puts us on the right path by providing tax relief 

22   to families and helping job creators revitalize 

23   our state's economy.

24                I hear frequently from families 

25   struggling with high taxes, and I believe that 


                                                               935

 1   many of the changes we're proposing today are 

 2   going to be of significant assistance to them.  

 3   The Family Tax Relief Act will provide more than 

 4   $800 million in tax relief for middle-class 

 5   families in the form of a number of tax credits 

 6   and tax breaks.  

 7                We're also adding funding to help 

 8   new businesses get off the ground by providing 

 9   incubator services.  These will include things 

10   like marketing assistance, help finding 

11   investors, presenting business plans, and 

12   providing expert advice on accounting and 

13   regulatory compliance.  

14                Providing help to new small 

15   businesses and to families is one of the most 

16   certain paths to growing our state's economy.  

17   Small businesses are the engines of job growth.  

18   They're challenged now to find new ways to 

19   compete and prosper in a changing global economy, 

20   and we need to assist them.

21                At the same time, this bill makes it 

22   possible for families to stay in New York and 

23   spend more money here driving our consumer 

24   economy to new heights.

25                I support this resolution because 


                                                               936

 1   its measures encourage job creators to locate and 

 2   launch new businesses here and helps make sure 

 3   that hardworking families have a bearable tax 

 4   burden.  We are growing a business-friendly 

 5   climate in New York State and looking out for 

 6   families through tax relief.  

 7                The provisions in this resolution, 

 8   in my estimation, will significantly help our 

 9   progress towards these goals, and for those 

10   reasons I support the resolution.

11                Thank you, Mr. President.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Sanders.

14                SENATOR SANDERS:   Thank you, 

15   Mr. President.  On the resolution.

16                ACTING PRESIDENT GRIFFO:   Senator 

17   Sanders on the resolution.

18                SENATOR SANDERS:   Today I stand to 

19   encourage my colleagues on two issues, MWBE and 

20   TANF.  

21                The Minority and Women-Owned 

22   Business Enterprise is the state's attempt to 

23   ensure an even playing field for all companies 

24   that are trying to use the state's purchasing.  

25   The Senate Majority is eliminating the $3 million 


                                                               937

 1   that have been set aside to study the state's 

 2   disparity.  This is important because the 2010 

 3   study, which cost 1.$7 million and took 2.5 years 

 4   to complete, studied only 39 state entities and 

 5   focused on MWBE business activity.

 6                The 2016 study which is needed is a 

 7   much more comprehensive study, requiring a review 

 8   of over a hundred state entities and must also 

 9   include an analysis of workforce diversity with 

10   respect to state contracts, and will cost 

11   $3 million.

12                Another worthy issue is TANF, 

13   Temporary Assistance for Needy Families.  This is 

14   the initiative that they put in what's called the 

15   welfare -- which is now called TANF -- is put in 

16   there to help people get off of welfare.  It's a 

17   hand up, it's not a handout.  And we are in the 

18   process of eliminating many of these 

19   initiatives.  

20                This is the very thing that we want 

21   people to do -- we want them to leave the system, 

22   become taxpayers, become people who are able to 

23   take care of their families, and perhaps even 

24   become state senators one day.

25                We are eliminating some of these 


                                                               938

 1   things, and that is not a wise move.  

 2                On my final thing that I wish to 

 3   say, I want to reflect on how the children of 

 4   New York City are being shortchanged by this 

 5   budget.  And yes, as it has been said earlier, it 

 6   seems to be an argument of adults which is has 

 7   far-reaching effect on the children.  It seems to 

 8   me that when the adults, instead of them going to 

 9   the cool-out room or whatever we want to call it, 

10   we're sending the children over there.

11                So because of the shortchanging that 

12   we are doing for the children of New York City, I 

13   cannot support this resolution.

14                Thank you, Mr. President.

15                ACTING PRESIDENT GRIFFO:   Thank 

16   you, Senator Sanders.

17                Senator Marcellino.

18                SENATOR MARCELLINO:   Thank you, 

19   Mr. President.  On the resolution.

20                ACTING PRESIDENT GRIFFO:   Senator 

21   Marcellino on the resolution.

22                SENATOR MARCELLINO:   Mr. President, 

23   working with the Governor and the Assembly, we 

24   are on track to pass the earliest state budget in 

25   more than 30 years, truly a worthy endeavor.  The 


                                                               939

 1   Senate budget is a responsible plan that controls 

 2   spending, rejects new taxes, makes job creation a 

 3   priority, invests in education, healthcare and 

 4   New York's infrastructure.

 5                Of the three budget proposals -- and 

 6   this one I'm particularly proud of -- advanced 

 7   this year, the Senate's budget proposal is the 

 8   only one put together with input from both sides 

 9   of the aisle.  

10                The Senate budget includes elements 

11   of our Senate Republican Blueprint for Jobs, 

12   including tax relief to small businesses, 

13   manufacturers, lower energy costs for every 

14   New Yorker and every business, and sweeping 

15   reforms to cut red tape.  The Senate's proposal 

16   eliminates the 18-a assessment to reduce energy 

17   costs for businesses and consumers.  We reduce 

18   the corporate franchise tax for manufacturers and 

19   eliminate it altogether over the next four years 

20   so that they can use the resulting savings to 

21   increase new jobs and grow.

22                To help middle-class families meet 

23   the rising cost of living, we increase the 

24   dependent exemption from $1,000 to $2,020 per 

25   dependent.  We provide a new supplemental child 


                                                               940

 1   tax credit of $500 per family and restore the 

 2   STAR exemption rebate for seniors this year.

 3                Our plan imposes a permanent tax 

 4   spending cap, a measure that the 

 5   Republican-controlled Senate has repeatedly 

 6   passed but the Assembly has refused to take up.

 7                Over the past two years, the state 

 8   has saved $18.6 billion -- let me repeat that.  

 9   Over the last two years, the state has saved 

10   $18.6 billion by adhering to a self-imposed 

11   2 percent spending cap.  By making the cap 

12   permanent, New York will save $11.2 billion over 

13   the next four years.

14                Mr. President, there's a lot more in 

15   this budget that's worthy and should be 

16   mentioned, but I'm not going to do it now in 

17   reference to time.  But I urge everyone, 

18   everyone -- it's not a perfect budget by any 

19   means, but I urge everyone to vote for this 

20   budget because it gives us a good start in our 

21   negotiations with the other house and with the 

22   Governor.  I look forward to passing this budget 

23   on time and early, first time in 30 years.  

24                Thank you, Mr. President.

25                ACTING PRESIDENT GRIFFO:   Thank 


                                                               941

 1   you, Senator Marcellino.

 2                Senator Carlucci on the resolution.

 3                SENATOR CARLUCCI:  Mr. President, on 

 4   the resolution.

 5                I want to thank my colleagues for 

 6   putting forth this important resolution, this 

 7   important budget resolution.  

 8                Over the past session I've had the 

 9   distinct privilege of serving as chairman of the 

10   Mental Health and Developmental Disabilities 

11   Committee, and this budget shows our commitment, 

12   government's commitment to say that we have to 

13   fulfill our responsibility to take care of our 

14   most vulnerable populations.  And we believe we 

15   have to balance the budget, and we will balance 

16   the budget, but we're not going to do it on the 

17   backs of people with developmental disabilities.  

18                So I commend my colleagues for 

19   working diligently to reinstate $120 million so 

20   we don't have that across-the-board cut where 

21   families and people with developmental 

22   disabilities will suffer.  

23                I also commend my colleagues for 

24   fully restoring "prescriber prevails."  We have 

25   to make sure that medical professionals, that 


                                                               942

 1   doctors, psychiatrists have the end say, that 

 2   they're the ones with the experience, with the 

 3   degrees, saying which medications patients should 

 4   get.  Particularly when we talk about mental 

 5   health, and we talk about the importance of 

 6   mental health, we have to make sure that 

 7   psychiatrists and doctors can prescribe atypical 

 8   antipsychotic medications that they believe are 

 9   appropriate.

10                I also want to thank my colleagues 

11   for standing up for veterans.  Believe it or not, 

12   right now our young men and women coming back 

13   from Afghanistan suffer from an unemployment rate 

14   that's double that of their civilian 

15   counterparts.  That's outrageous.  But our Senate 

16   is standing up and doing something about it.  

17                With Jobs for Heroes, we're 

18   providing tax credits, tax credits for smart 

19   employers that want to employ veterans coming 

20   back from Afghanistan, and rewarding employers 

21   for high-paying jobs.  So we're not just giving a 

22   blanket tax credit, but we're rewarding employers 

23   for high-paying jobs.  Up to 15 percent of that 

24   salary will go to a tax credit for hiring an 

25   unemployed veteran.  


                                                               943

 1                Also, we're fulfilling our 

 2   commitment and saying that we must raise the 

 3   minimum wage.  It's time we raised the minimum 

 4   wage, and we have to have a solid foundation if 

 5   we're going to allow people working to get out of 

 6   poverty and get into the ranks of the middle 

 7   class.  

 8                And of particular importance when we 

 9   talk about the middle class, we're really 

10   fulfilling our commitment to make sure that we 

11   recognize that the middle class is the economic 

12   driver of this state and this nation.  And by 

13   reinstating the STAR rebate check, we're going to 

14   allow people to stay in the middle class.  We're 

15   going to allow families to stay in their homes in 

16   the suburbs and throughout New York State.  And 

17   this STAR rebate check could mean the difference 

18   between a family staying in their home or having 

19   to go into foreclosure.  

20                So over the coming weeks I look 

21   forward to working with my colleagues to continue 

22   fighting and making sure that these provisions 

23   stay in the budget and that we make sure we 

24   continue to move New York forward.  

25                Thank you, Mr. President.  


                                                               944

 1                ACTING PRESIDENT GRIFFO:   Thank 

 2   you, Senator Carlucci.

 3                Senator Krueger.

 4                SENATOR KRUEGER:   Thank you, 

 5   Mr. President.  I think I have the honor of 

 6   closing tonight, but perhaps others have 

 7   something to say.

 8                So, you know, I do want to apologize 

 9   to my colleague and friend John DeFrancisco.  I 

10   learned after our earlier discussion that 

11   Syracuse had a really bad basketball game 

12   recently.  So that apparently condolences to the 

13   Syracuse fans here, and I guess hooray for the 

14   Georgetown fans, whoever they are.  

15                But to get back on message tonight, 

16   so we've just been debating and talking on a 

17   one-house budget resolution.  Again, it's not a 

18   bill.  It doesn't have any standing in law.  It's 

19   a resolution.  It's a resolution that, when we 

20   add it up, it appears would put us in the hole 

21   about $4.5 billion into the future in financial 

22   plans, with no way to actually pay for it, if you 

23   were to accept the full resolution, because it's 

24   putting a supermajority requirement on any future 

25   tax increases or even continuations of revenue 


                                                               945

 1   that might be sunsetting.  

 2                So it's a $4.5 billion year after 

 3   year budget gap we'd be creating with no ability 

 4   to really pay for it.  That seems like a 

 5   problem.  

 6                It is true it has some individual 

 7   items that people like.  Senator Carlucci just 

 8   talked about a veterans tax credit for hiring 

 9   veterans; I like that program.  That's about a 

10   $15 million expense for the state.  I think it's 

11   worthwhile.  But I don't really know why we would 

12   be giving the wealthiest New Yorkers $70 million 

13   in new itemized deductions, royalty income, 

14   vending machines not having to pay taxes.  

15                So this resolution gives $20 million 

16   in new aid to local governments through 

17   $20 million in AIM, but then it's going to cut 

18   the taxes for vending machines by $20 million.  

19   Which, by the way, is simply saying if you're a 

20   small business who sells candy and salty snacks 

21   and soda, you have to collect and pay the tax, 

22   but if you're a vending machine company you're 

23   competing with, they don't have to collect or pay 

24   the tax.  So I'd say that's really an 

25   inequitable tax change.


                                                               946

 1                And of course we want to give a 

 2   cigar tax cap for the expensive cigars and a 

 3   private-aircraft tax exemption for people with 

 4   their private airplanes.

 5                But there are a couple of nice 

 6   things in there, like the $15 million for vets.  

 7   But what did we take out?  We took out all the 

 8   funding to operationalize the SAFE Act to protect 

 9   citizens from the types of guns that shouldn't be 

10   on our streets.  We passed that law, but now 

11   apparently in this resolution we're not going to 

12   fund the money the State Police need to 

13   operationalize it.  That should concern us.

14                As Senator Espaillat pointed out, 

15   we're going to cut the funding for the Tenant 

16   Protection Unit, affecting hundreds of thousands 

17   of residents in apartments in New York State.  

18                We're going to redirect the housing 

19   capital money from the Mortgage Insurance Fund 

20   that was supposed to go, at about $100 million a 

21   year, towards preservation and expansion of 

22   affordable housing.  We're going to take that and 

23   we're going to stuff that into the General Fund 

24   to help pay for something because we're cutting 

25   all these taxes.  


                                                               947

 1                There's no Foundation Aid for 

 2   education, so I'm delighted that we're putting 

 3   money into education.  But I have to question how 

 4   this resolution is doing it, because I hear that 

 5   school districts are desperate for Foundation Aid 

 6   and that there's court precedent for how we 

 7   should distribute our money.  But that's not how 

 8   this budget does it.  

 9                Actually, we don't really know how 

10   this budget resolution does it because I still 

11   haven't gotten an explanation of how the 

12   education dollars would be distributed in runs, 

13   because there's no runs attached to this 

14   education money being put back in.

15                As were highlighted by several of my 

16   colleagues, there's no funds for the DREAM Act, 

17   which would help ensure that children raised in 

18   this state, living in this state, dreaming of 

19   being taxpayers and someday citizens of this 

20   state still won't have an ability or a fair shot 

21   to go to our colleges, which harms us all.  

22                There was a nice section of the 

23   Governor's bill that would strengthen the Public 

24   Service Commission's ability to hold utilities 

25   accountable for their failure to do right by 


                                                               948

 1   people during times of crisis, like after Sandy 

 2   with LIPA.  I have no idea why that section got 

 3   removed from the Governor's budget.  Because I'm 

 4   a big believer in strengthening oversight and 

 5   accountability for the utilities.  

 6                There's a lot of confusion about 

 7   that minimum-wage proposal.  Somebody just said 

 8   they're proud there's minimum-wage language in 

 9   this resolution.  Well, I've read the 

10   minimum-wage resolution language.  I don't even 

11   understand what it is.  Something happens over 

12   three years, if people study it and decide they 

13   want to do that.  But when I'm reading my 

14   smartphone while sitting here on the floor, 

15   Senator Skelos says he doesn't even agree with 

16   the language that went into the resolution.  

17                So I don't think anybody is actually 

18   supporting a minimum-wage increase in this 

19   resolution.  But I know I am, and I'm waiting to 

20   see a real one.

21                One of my colleagues said "Finally, 

22   something for unemployment benefits" and that 

23   she's proud that that's in there.  Well, you 

24   know, when you read the proposal that the 

25   Governor made and how it's placed here in the 


                                                               949

 1   resolution, it actually risks lowering 

 2   unemployment benefits or doing away with them for 

 3   some of the lowest-wage workers and part-time 

 4   workers.  It takes to 2026 to see any significant 

 5   increase in the incredibly low unemployment 

 6   benefit payout for workers, $5 a year -- $5 

 7   increase in the maximum per year.  

 8                Let's talk about our own pay.  Let's 

 9   talk about inflation.  Let's talk about why we 

10   need a minimum-wage increase.  I'm not sure you 

11   can really with a straight face say "great 

12   victory" when we lowered benefits for some people 

13   to guarantee an increase of $5 per maximum 

14   benefit for others.  That's not what I think is 

15   employment benefit reform.

16                There is no solution for the SUNY 

17   medical schools and particularly the SUNY 

18   Downstate Hospital in Brooklyn that so many of my 

19   colleagues talked about.  

20                So we took gambling out.  And I'm 

21   not saying I'm not happy that we took gambling 

22   out.  But the one thing we left in about gambling 

23   is we're going to allow those under age 21 to 

24   play Quick Draw?  I object.  I really don't think 

25   we should be expanding gambling to those under 


                                                               950

 1   the age of 21.  And since we took everything else 

 2   about gaming out of the Governor's budget in this 

 3   one-house resolution, I think we should have 

 4   taken out the underage gambling as well.

 5                There's some strange Article 7 

 6   language.  And I confess we didn't have that many 

 7   hours to look at all this.  And actually a couple 

 8   of the bills we only saw about two hours before 

 9   we came to the floor here today.  But there's a 

10   strange Article 7 section, again, about the 

11   brownfields proposals.  And I have to say I don't 

12   necessarily agree with my colleague's staff that 

13   this won't cost anything.  I suspect that's 

14   exactly why this is in here, to give some 

15   significant new tax credits to perhaps some of 

16   the worst polluters of land in the state, and I 

17   worry about that.  

18                I worry that there's complex 

19   Article 7 language about using the RGGI funds 

20   intended for clean energy, the tax credits that 

21   you trade back for not polluting that's supposed 

22   to go into clean energy.  And there's some 

23   interesting and complex language there that 

24   appears to expand some good things but then allow 

25   it to be shifted into property tax reductions for 


                                                               951

 1   coal plants.  I think everybody ought to take a 

 2   serious look at that one before they vote yes.

 3                There's also something about farm 

 4   assessments.  Now, I agree that there's a real 

 5   problem with property taxes for farms.  But if 

 6   you cap the assessment at 2 percent instead of 

 7   10 percent -- and that's how I read that 

 8   Article 7 language -- you're basically saying to 

 9   the localities with lots of farms:  We're 

10   reducing your property tax revenue.  

11                And I don't know about you, but I 

12   keep hearing that everybody is in a panic about 

13   reduced property tax revenue.  We already capped 

14   at 2 percent the residential property tax.  And 

15   if we go ahead and lower their tax revenue from 

16   farms and there are a lot of farms in their 

17   district -- I know, Mr. President, you have a lot 

18   of farms in your district.  I would really want 

19   to look very carefully at the impact on my 

20   localities from that specific Article 7 

21   language.  

22                Now, I don't actually have any farms 

23   in my district, so I probably won't get a lot of 

24   angry people about that one.  But other people 

25   here might get some calls when the localities 


                                                               952

 1   learn they're getting even reduced property tax 

 2   through that move.

 3                Again, we delay the diesel emissions 

 4   requirement.  Well, I've been here since 2002.  

 5   We passed a requirement to apply higher standards 

 6   for diesel vehicle emissions soon after I got 

 7   here.  And what have we been doing ever since?  

 8   We just keep delaying it.  

 9                So when you pass a good 

10   environmental law but then you just delay out 

11   forever ever implementing the law, don't pretend 

12   you really passed a good environmental law.  So 

13   we do that again today.

14                There are so many reasons not to 

15   vote for this budget resolution.  Not because 

16   there aren't some good things there.  But it's 

17   one house.  It has a life today that ends 

18   tomorrow.  And for me, I'll sleep better at night 

19   knowing that I told my constituents why I had to 

20   vote no on this even though it's true and many of 

21   my colleagues stood up and talk about the good 

22   things that were in here.  

23                We all want to do the good things.  

24   We also have a responsibility to do a balanced 

25   budget.  And we also have a responsibility to not 


                                                               953

 1   do resolutions in dark of night and no time for 

 2   the public or half the colleagues on this floor 

 3   to really delve into it.  And I suspect a bunch 

 4   of my colleagues on the other side of the aisle 

 5   didn't look through all that Article 7 language 

 6   all that carefully either.  

 7                So I'm urging a no vote on this 

 8   bill, Mr. President.  Thank you.

 9                ACTING PRESIDENT GRIFFO:   Senator 

10   DeFrancisco.

11                SENATOR DeFRANCISCO:   I'm just 

12   going to be very brief as everyone will give a 

13   sigh of relief.  I'm not going to respond to 

14   every point.  But I just want to say one thing.  

15                Any bill from any house is going to 

16   have things in it that people don't agree with.  

17   I don't agree with everything in the bill.  There 

18   were several things I wanted in that weren't in 

19   there.  

20                However, this has been done in a 

21   bipartisan way.  Many of the same questions and 

22   concerns at the budget hearings that I raised and 

23   other Republicans raised were raised by Democrats 

24   in the budget hearings as well.  The same 

25   concerns that we had on the major issues were 


                                                               954

 1   mentioned during the budget hearings.  

 2                The point of the matter and the fact 

 3   of the matter is the major issues, as were 

 4   commented on by many of the speakers on both 

 5   sides of the aisle, many good things are in this 

 6   budget.  I would just urge everybody, even though 

 7   you don't like everything in the budget or 

 8   something is omitted that you really wanted 

 9   there, I think it gives us a better bargaining 

10   position, the final negotiations from here to the 

11   final budget, if we've got a bipartisan and a 

12   strong bipartisan "yes" vote on this resolution.

13                And I would urge everyone that they 

14   reconsider some of the drawbacks in the bill and 

15   try to look at the good things to give us more 

16   ability to get those in the final budget.

17                Thank you, Mr. President.

18                ACTING PRESIDENT GRIFFO:   Thank 

19   you, Senator DeFrancisco.

20                Senator Klein.

21                SENATOR KLEIN:   Thank you, 

22   Mr. President.  

23                I want to thank my colleague 

24   Co-President Dean Skelos for his cooperation 

25   during this very short time frame.


                                                               955

 1                Today, for the first time in modern 

 2   history in the New York State Senate, we're 

 3   voting on a budget resolution crafted by a 

 4   bipartisan coalition of Democrats and 

 5   Republicans.  

 6                And I think of course this is our 

 7   first round, now that we enter budget 

 8   negotiations with the Governor and the Assembly.  

 9   But I think what we're putting forth today is a 

10   smart, responsible and fair proposal.

11                I just want to touch on some of the 

12   issues that are included in here that I think are 

13   extremely important.  And I want to thank Senator 

14   Malcolm Smith and Senator Andrew Lanza, the two 

15   cochairs of the bipartisan Task Force on Sandy 

16   Recovery, and all the members that were involved, 

17   because I think we took a very important bold 

18   step in moving forward, in making sure that 

19   relief comes to those who were harmed during 

20   Superstorm Sandy.  And I think we really have a 

21   roadmap in place to make sure we can protect the 

22   residents of the State of New York from future 

23   disasters.

24                For the first time in memory in the 

25   Senate, we're creating an independent office of 


                                                               956

 1   risk management, something that could potentially 

 2   save the taxpayers of the State of New York close 

 3   to $100 million a year by preparing for 

 4   emergencies, by making sure we put in stopgap 

 5   measures so the state doesn't constantly get 

 6   sued, like they did last year to the tune of 

 7   $200 million.  So I think that's going to be 

 8   money well spent and certainly will pay for 

 9   itself.

10                I also want to thank my borough 

11   president in the Bronx, Reuben Diaz, Jr., who put 

12   forth something that was very, very important, a 

13   gun crime database, something that will now post 

14   as part of the pistol database that will come 

15   into effect.  So what we're doing here today is 

16   amending the Governor's proposal and expanding 

17   the database that was proposed in the SAFE Act to 

18   also include anyone who commits dangerous crimes 

19   using a gun.  That's something that the borough 

20   president supported in his State of the Borough, 

21   it's something that I support, and I'm hopeful 

22   that we can actually include that in our final 

23   budget.  

24                I also want to thank my colleague 

25   Senator David Carlucci for really being a leader 


                                                               957

 1   in restoring the $100 million to the Office for 

 2   People With Developmental Disabilities.  This is 

 3   something that is very important to I know all of 

 4   us, both Democrat and Republican.  Because I 

 5   think we're sending a very simple message that we 

 6   can't balance this budget on the backs of the 

 7   mentally disabled.

 8                We also have in this one-house 

 9   budget resolution for the first time a teen 

10   health education program where we're going to 

11   address specific needs of teenagers around the 

12   State of New York like obesity, ovarian cancer.  

13   We're looking at things as far as diabetes that 

14   certainly hit inner-city kids.  And I think the 

15   result will be healthier teens around the State 

16   of New York.

17                As Senator Carlucci mentioned, 

18   something that's very important and I think is 

19   quite historic is a veterans tax credit.  We're 

20   going to provide a tax credit to every business 

21   who hires a returning veteran.

22                Presently the unemployment rate is 

23   high.  But if you look at the numbers among 

24   veterans in New York State, unemployment among 

25   returning veterans from post-9/11 conflicts and 


                                                               958

 1   wars is close to 12 percent.  We can do better.  

 2   I think we should be sending a message to those 

 3   men and women who are returning from overseas 

 4   after defending their country that we should have 

 5   a job waiting for them when they come back.  

 6                And I think by providing that 

 7   incentive to businesses with a tax credit, we'll 

 8   not only reduce unemployment but I think we'll 

 9   make sure that our returning veterans have their 

10   rightful place in our society with a job.

11                Also as was said by my colleague 

12   Diane Savino, the chair of the Labor Committee, 

13   in this one-house resolution we make a commitment 

14   to look at increasing the minimum wage.  That's 

15   something that I think is an issue of fairness.  

16   I also believe it's good business.  Because when 

17   you give a minimum-wage worker a boost in their 

18   salary, they're going to spend it.  And where are 

19   they going to spend it?  They're going to spend 

20   it at local businesses.  So we're going to boost 

21   our local economy.  

22                So that's something that, moving 

23   forward, I hope we can achieve in our final 

24   budget plan.

25                I also want to say a special thank 


                                                               959

 1   you to the staff.  They have worked very, very 

 2   hard, both the IDC staff, the Democratic staff, 

 3   as well as the Republican staff, in a very short 

 4   time frame.  I want to thank my chief of staff, 

 5   John Emrick, and I know I also want to thank 

 6   Robert Mujica, the Republicans' Finance director, 

 7   and everyone involved, because I know there's too 

 8   many to thank.  But they did such a tremendous 

 9   job under a very small time frame in making sure 

10   that we had this one-house resolution ready for 

11   today.  

12                So again, I want to thank my 

13   colleagues.  And of course, Mr. President, I vote 

14   yes on this historic one-house budget resolution.

15                ACTING PRESIDENT GRIFFO:   Thank 

16   you, Senator Klein.

17                To close debate tonight, the chair 

18   recognizes Senator Skelos.

19                SENATOR SKELOS:   Thank you very 

20   much, Mr. President.  

21                And I want too want to thank 

22   Senator Klein, co-leader, Senate Finance Chair 

23   John DeFrancisco, and all the staff that have 

24   worked diligently on bringing this budget 

25   resolution before us for a vote today.  


                                                               960

 1                Our budget is a responsible plan 

 2   that controls spending, rejects new taxes, and 

 3   makes job creation a priority.  It eliminates the 

 4   horrendous 18-a assessment, a job-killing 

 5   surcharge that increases the cost of energy for 

 6   businesses and consumers and holds New York back.

 7                The budget includes elements of our 

 8   Senate Republican Blueprint for Jobs to 

 9   revitalize and rebuild our economy.  We reduce 

10   the corporate franchise tax for manufacturers and 

11   eliminate it altogether over four years.  To help 

12   middle-class families meet rising costs, we 

13   increase the dependent exemption from $1,000 to 

14   $2,020 per dependent; provide a new supplemental 

15   child tax credit of $500 per family; and restore 

16   the STAR rebate checks for fixed-income seniors.  

17                Our plan imposes a permanent state 

18   spending cap passed repeatedly in this house.  

19   Over the past two years, the state has saved over 

20   $18.6 billion by sticking to a self-imposed 

21   2 percent cap.  By making the cap permanent, 

22   New York will save $11.2 billion over the next 

23   four years.  

24                To help local governments, we 

25   accelerate the takeover of local Medicaid, saving 


                                                               961

 1   counties millions of dollars.  That's real 

 2   mandate relief.  Our budget reaffirms the 

 3   Senate's commitment to education by increasing 

 4   state aid.  We restore millions of dollars to 

 5   critical women's health and wellness programs, 

 6   including funding for rape crisis centers, the 

 7   Adelphi University Breast Cancer Program, WIC and 

 8   others.  And we restore the cuts to the Office 

 9   for People With Developmental Disabilities to 

10   ensure the state continues to protect the most 

11   vulnerable New Yorkers.

12                In the Senate we have taken a good 

13   budget and made it better.  Working with the 

14   Governor and the Assembly, New York is on track 

15   to have its earliest budget in 30 years.  Let's 

16   finish the job.

17                ACTING PRESIDENT GRIFFO:   Thank 

18   you, Senator Skelos.

19                The question is on the resolution. 

20   All in favor signify by saying aye.

21                (Response of "Aye.")

22                ACTING PRESIDENT GRIFFO:   Opposed?  

23                (Response of "Nay.")

24                ACTING PRESIDENT GRIFFO:   The 

25   resolution is adopted.


                                                               962

 1                SENATOR GIANARIS:   Show of hands, 

 2   Mr. President.

 3                ACTING PRESIDENT GRIFFO:   A show of 

 4   hands --

 5                SENATOR LIBOUS:   Excuse me, 

 6   Mr. President.

 7                ACTING PRESIDENT GRIFFO:   Senator 

 8   Libous.

 9                SENATOR LIBOUS:   We respect your 

10   enthusiasm.  But this resolution is a little 

11   different, because it has fiscal implication.  It 

12   is a roll call just like a fast roll call.  

13                So if members wish to vote no, all 

14   they need to do is raise their hand.  So if we 

15   could --

16                ACTING PRESIDENT GRIFFO:   Senator 

17   Libous, I was about to instruct, at the request 

18   of the call for a show of hands, that we so 

19   order.  All those in the negative please raise 

20   your hand.  

21                (Members raised their hands.) 

22                ACTING PRESIDENT GRIFFO:   The 

23   Secretary will re-call the roll.

24                (The Secretary called the roll.)

25                ACTING PRESIDENT GRIFFO:   The 


                                                               963

 1   Secretary will announce the results.

 2                THE SECRETARY:   Those recorded in 

 3   the negative are Senators Adams, Breslin, Dilan, 

 4   Espaillat, Gianaris, Hassell-Thompson, Hoylman, 

 5   Krueger, Montgomery, Parker, Peralta, Perkins, 

 6   Rivera, Sampson, Sanders, Serrano, Squadron, and 

 7   Stewart-Cousins.

 8                Ayes, 45.  Nays, 18.

 9                ACTING PRESIDENT GRIFFO:   The 

10   resolution is adopted.

11                Senator Libous.

12                SENATOR LIBOUS:   Mr. President, has 

13   the desk received an announcement from the 

14   Assembly?

15                ACTING PRESIDENT GRIFFO:   We have, 

16   and it is filed in the Journal Clerk's office.

17                Senator Libous.  

18                SENATOR LIBOUS:   Mr. President, is 

19   there any further business at the desk?  

20                ACTING PRESIDENT GRIFFO:   There is 

21   no further business before the desk.

22                SENATOR LIBOUS:   Mr. President, I 

23   do have a very important announcement.  I know 

24   sometimes I say that and then we adjourn --

25                ACTING PRESIDENT GRIFFO:   Could we 


                                                               964

 1   have some order, please. 

 2                SENATOR LIBOUS:   -- but I do have 

 3   an important announcement.  

 4                We expect that sometime hopefully 

 5   within the hour that the General Conference 

 6   Committee will convene this evening.  I can't 

 7   give you a time, but we expect that the General 

 8   Conference Committee will convene hopefully 

 9   within the hour.  So that's a bit of 

10   information.  Do with it as you please.  

11                And there being no further business 

12   before the Senate this evening, I move that we 

13   adjourn until Tuesday, March 12th, at 3:00 p.m.

14                ACTING PRESIDENT GRIFFO:   On 

15   motion, the Senate stands adjourned until 

16   Tuesday, March 12th, at 3:00 p.m.

17                (Whereupon, at 5:24 p.m., the Senate 

18   adjourned.)

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