Regular Session - March 31, 2015

                                                                   1617

 1               NEW YORK STATE SENATE

 2                          

 3                          

 4              THE STENOGRAPHIC RECORD

 5                          

 6                          

 7                          

 8                          

 9                  ALBANY, NEW YORK

10                   March 31, 2015

11                     4:26 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  


                                                               1618

 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:   In the 

10   absence of clergy, I ask everyone to please bow 

11   their heads in a moment of silent reflection and 

12   prayer.

13                (Whereupon, the assemblage 

14   respected a moment of silence.)

15                ACTING PRESIDENT GRIFFO:   The 

16   reading of the Journal.

17                THE SECRETARY:   In Senate, Monday, 

18   March 30th, the Senate met pursuant to 

19   adjournment.  The Journal of Sunday, March 29th, 

20   was read and approved.  On motion, Senate 

21   adjourned.

22                ACTING PRESIDENT GRIFFO:   Without 

23   objection, the Journal will stand approved as 

24   read.

25                Presentation of petitions.


                                                               1619

 1                Messages from the Assembly.

 2                Messages from the Governor.

 3                Reports of standing committees.

 4                Reports of select committees.

 5                Communications and reports of state 

 6   officers.

 7                Motions and resolutions.  

 8                Senator LaValle.

 9                SENATOR LaVALLE:   Mr. President, 

10   on behalf of Senator Ortt, on page number 22 I 

11   offer the following amendments to Calendar 

12   Number 287, Senate Print Number 2953, and I ask 

13   that said bill retain its place on the Third 

14   Reading Calendar.

15                ACTING PRESIDENT GRIFFO:   The 

16   amendments are received, and the bill shall 

17   retain its place on third reading.

18                Senator LaValle.

19                SENATOR LaVALLE:   Would you now 

20   recognize Senator Gianaris, please.

21                ACTING PRESIDENT GRIFFO:   Senator 

22   Gianaris.

23                SENATOR GIANARIS:   Thank you, 

24   Mr. President.  On behalf of Senator Squadron, I 

25   move that the following bill be discharged from 


                                                               1620

 1   its respective committee and be recommitted with 

 2   instructions to strike the enacting clause:  

 3   Senate Bill 581.

 4                ACTING PRESIDENT GRIFFO:   It is so 

 5   ordered.

 6                Senator LaValle.

 7                SENATOR LaVALLE:   Mr. President, 

 8   can we adopt the Resolution Calendar.

 9                ACTING PRESIDENT GRIFFO:   All in 

10   favor of adopting the Resolution Calendar 

11   signify by saying aye.

12                (Response of "Aye.")

13                ACTING PRESIDENT GRIFFO:   Opposed?  

14                (No response.)

15                ACTING PRESIDENT GRIFFO:   The 

16   Resolution Calendar that was before the house is 

17   adopted.

18                Senator LaValle.

19                SENATOR LaVALLE:   Mr. President, 

20   can we call an immediate meeting of the Finance 

21   Committee off the floor at 4:45. 

22                ACTING PRESIDENT GRIFFO:   There 

23   will be --

24                SENATOR LaVALLE:   I know, yes.  

25   Thank you.  That's not immediate, it's 4:45.


                                                               1621

 1                ACTING PRESIDENT GRIFFO:   There 

 2   will be a meeting of the Finance Committee off 

 3   the floor in Room 332 at 4:45 p.m. 

 4                Senator LaValle.

 5                SENATOR LaVALLE:   We're going to 

 6   stand at ease.

 7                ACTING PRESIDENT GRIFFO:   The 

 8   Senate will stand temporarily at ease.

 9                (Whereupon, the Senate stood at ease 

10   at 4:28 p.m.)

11                (Whereupon, the Senate reconvened at 

12   5:00 p.m.)

13                ACTING PRESIDENT GRIFFO:   The 

14   Senate will come to order.

15                Senator LaValle.

16                SENATOR LaVALLE:   Thank you, 

17   Mr. President.  

18                There will be an immediate meeting 

19   of the Cities Committee, immediate, in Room 332.

20                ACTING PRESIDENT GRIFFO:   There 

21   will be an immediate meeting of the Cities 

22   Committee in Room 332.

23               Senator LaValle.

24                SENATOR LaVALLE:   Mr. President, 

25   would you return to the reports of the standing 


                                                               1622

 1   committees.

 2                ACTING PRESIDENT GRIFFO:   We will 

 3   return to reports of standing committees.

 4                SENATOR LaVALLE:   Do you have a 

 5   report of the Finance Committee at the desk?

 6                ACTING PRESIDENT GRIFFO:   There is 

 7   a report of the Finance Committee at the desk.

 8                SENATOR LaVALLE:   Okay.

 9                ACTING PRESIDENT GRIFFO:   The 

10   Secretary will read.

11                THE SECRETARY:   Senator 

12   DeFrancisco, from the Committee on Finance, 

13   reports the following bills:  

14                Senate Print 2000C, Senate Budget 

15   Bill, an act making appropriations for the 

16   support of government; 

17                Senate 2004C, Senate Budget Bill, an 

18   act making appropriations for the support of 

19   government; 

20                And Senate 4611, Senate Budget Bill, 

21   Concurrent Resolution of the Senate and Assembly.  

22                All bills reported direct to third 

23   reading.

24                ACTING PRESIDENT GRIFFO:   Senator 

25   LaValle.


                                                               1623

 1                SENATOR LaVALLE:   Mr. President, I 

 2   move that we accept the report.

 3                ACTING PRESIDENT GRIFFO:   All in 

 4   favor of accepting the Finance Committee report 

 5   signify by saying aye.

 6                (Response of "Aye.")

 7                ACTING PRESIDENT GRIFFO:   Opposed?  

 8                (No response.)

 9                ACTING PRESIDENT GRIFFO:   The 

10   report is accepted and before the house.

11                SENATOR LaVALLE:   Mr. President.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   LaValle.

14                SENATOR LaVALLE:   Yes, can we have 

15   the reading of the noncontroversial active list.

16                ACTING PRESIDENT GRIFFO:   The 

17   Secretary will read the active list, 

18   noncontroversial.

19                THE SECRETARY:   Calendar Number 

20   308, Senate Budget Bill, Senate Print 2001A, an 

21   act making appropriations for the support of 

22   government.

23                ACTING PRESIDENT GRIFFO:   Read the 

24   last section.

25                THE SECRETARY:   Section 5.  This 


                                                               1624

 1   act shall take effect immediately.

 2                ACTING PRESIDENT GRIFFO:   Call the 

 3   roll.

 4                (The Secretary called the roll.)

 5                THE SECRETARY:   Ayes, 59.  Nays, 2.  

 6   Senators Parker and Perkins recorded in the 

 7   negative.

 8                ACTING PRESIDENT GRIFFO:   The bill 

 9   is passed.  

10                Senator LaValle.

11                SENATOR LaVALLE:   Mr. President, we 

12   have on our desks Supplemental Calendar Number 

13   28A.  Can we have the reading of the 

14   noncontroversial supplemental calendar, Calendar 

15   Number 314.

16                ACTING PRESIDENT GRIFFO:   The 

17   Secretary will read.

18                THE SECRETARY:   Calendar Number 

19   314, Senate Budget Bill, Senate Print 2000C, an 

20   act making appropriations for the support of 

21   government.

22                SENATOR GIANARIS:   Lay it aside.

23                ACTING PRESIDENT GRIFFO:   Lay the 

24   bill aside.

25                Senator LaValle.


                                                               1625

 1                SENATOR LaVALLE:   Can we have the 

 2   controversial reading of the supplemental 

 3   calendar, Number 314.

 4                ACTING PRESIDENT GRIFFO:   We are on 

 5   Supplemental Calendar 28A, and we will now have 

 6   the controversial reading of Calendar Number 314.  

 7   The Secretary is ringing the bell, and the 

 8   Secretary will read.

 9                THE SECRETARY:   Calendar Number 

10   314, Senate Budget Bill, Senate Print 2000C, an 

11   act making appropriations for the support of 

12   government.

13                ACTING PRESIDENT GRIFFO:   Senator 

14   Stavisky.

15                SENATOR STAVISKY:   Thank you, 

16   Mr. President.  I really only have one question, 

17   if somebody would claim sponsorship.

18                SENATOR DeFRANCISCO:   I'll claim 

19   it.

20                (Laughter.)

21                ACTING PRESIDENT GRIFFO:   Senator 

22   DeFrancisco, will you yield?  

23                SENATOR DeFRANCISCO:   Yes.

24                ACTING PRESIDENT GRIFFO:   Senator 

25   DeFrancisco yields, Senator Stavisky.


                                                               1626

 1                SENATOR STAVISKY:   The budget bill 

 2   before us talks about the Performance Improvement 

 3   Plan, which had a 10 percent holdback feature.  

 4   The 10 percent holdback has been withdrawn.  The 

 5   Executive proposed it, but it was withdrawn in 

 6   the final agreement.  What is going to happen to 

 7   the Performance Improvement Plan in this budget?

 8                SENATOR DeFRANCISCO:   (Conferring 

 9   off the record.)

10                SENATOR STAVISKY:   Well, let me 

11   rephrase my question.

12                SENATOR DeFRANCISCO:   There's going 

13   to be an additional $18 million for SUNY.  That's 

14   what I'm being told.  (Conferring off the 

15   record.)

16                What section is it of the bill?  Do 

17   you have a number or a letter?

18                SENATOR STAVISKY:   (No response.)

19                SENATOR DeFRANCISCO:   Senator 

20   LaValle apparently has an answer at hand, and I 

21   don't.  Maybe he can answer it.

22                ACTING PRESIDENT GRIFFO:   Senator 

23   LaValle has not spoken.  

24                Senator Stavisky, I will ask Senator 

25   LaValle to respond if there's no objection.


                                                               1627

 1                SENATOR STAVISKY:   I would 

 2   appreciate it.

 3                ACTING PRESIDENT GRIFFO:   With 

 4   unanimous consent, Senator LaValle, you're 

 5   recognized.

 6                SENATOR LaVALLE:   Yes, thank you.  

 7                Senator Stavisky, you're absolutely 

 8   right.  In the Governor's budget he had money in 

 9   there that there was a penalty if the campuses 

10   did not move forward.  We stripped it of that, 

11   and the money will now go forward so that the 

12   campuses can use it for a variety of reasons.  

13                And one of the things that the 

14   chancellor has made as a priority is a 

15   graduate-in-four, so that this money will be used 

16   pretty much for SUNY for purposes of improving 

17   programs, graduate-in-four, and there is nothing 

18   tied to it in terms of any penalty.

19                SENATOR STAVISKY:   Would the 

20   Senator continue to yield?  

21                SENATOR LaVALLE:   Yes.

22                ACTING PRESIDENT GRIFFO:   The 

23   Senator yields.

24                SENATOR STAVISKY:   It's my 

25   understanding that most if not all of the 


                                                               1628

 1   colleges have already complied with the 

 2   requirements without the sword of Damocles put 

 3   over their heads of the 10 percent withholding.

 4                Are there plans in the future -- and 

 5   that's really the thrust of my question, are 

 6   there plans in the future to reinstate that 

 7   10 percent holdback?  Because the wording, from 

 8   what I understand, is somewhat unclear.

 9                SENATOR LaVALLE:   So at the very 

10   beginning the members probably did not hear a 

11   great deal of concern from the presidents at the 

12   colleges that they represent because they were 

13   moving in a direction, as I had indicated, of 

14   graduate-in-four, different kinds of curriculum 

15   improvements.

16                It is not the intent of our 

17   committee, that you are the ranking member of, 

18   to -- we've rejected it this year.  We would 

19   reject it again next year.  I think we've ended 

20   up with a good result that everyone is very 

21   comfortable with.

22                SENATOR STAVISKY:   Thank you, 

23   Mr. President.  

24                Thank you, Mr. Chairman.

25                ACTING PRESIDENT GRIFFO:   Thank 


                                                               1629

 1   you, Senator Stavisky.

 2                Any other Senator wishing to be 

 3   heard?

 4                Senator Gianaris.

 5                SENATOR GIANARIS:   No.

 6                ACTING PRESIDENT GRIFFO:   Is there 

 7   any other Senator that wishes to be heard?

 8                Senator LaValle.

 9                SENATOR LaVALLE:   Can we lay this 

10   aside temporarily?  We're waiting for a message.

11                ACTING PRESIDENT GRIFFO:   So we 

12   will lay Calendar 314 temporarily aside.

13                Senator LaValle.

14                SENATOR LaVALLE:   Once again, 

15   Mr. President, I would like to go to Supplemental 

16   Calendar Number 28A.

17                ACTING PRESIDENT GRIFFO:   Senator 

18   LaValle, before we do that, on Calendar Number 

19   314, for the record's purposes, I have asked 

20   whether there was any other Senator that wanted 

21   to be heard, and I've seen none and heard none, 

22   so debate is closed on that.  And it's been 

23   temporarily laid aside.  So when we come back, 

24   we'll be ringing the bell for the vote.

25                Senator LaValle.


                                                               1630

 1                SENATOR LaVALLE:   Yes.  On the 

 2   Supplemental Calendar 28A, can we have the 

 3   reading of the noncontroversial Calendar Number 

 4   315.

 5                ACTING PRESIDENT GRIFFO:   The 

 6   Secretary will read.

 7                THE SECRETARY:   Calendar Number 

 8   315, Senate Budget Bill, Senate Print 2004C, an 

 9   act making appropriations for the support of 

10   government.

11                SENATOR GIANARIS:   Lay it aside.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Gianaris, do you mind if we accept the message?

14                SENATOR GIANARIS:   I do not mind.

15                ACTING PRESIDENT GRIFFO:   Senator 

16   LaValle.   

17                SENATOR LaVALLE:   Mr. President, 

18   can we have the controversial reading of Calendar 

19   Number 315. 

20                ACTING PRESIDENT GRIFFO:   Senator 

21   LaValle, there's a message of necessity before 

22   the desk.  Would you like me to consider that 

23   message?  

24                SENATOR LaVALLE:   Yes.

25                ACTING PRESIDENT GRIFFO:   The 


                                                               1631

 1   question is on the message of necessity that's 

 2   before the desk.  All in favor of accepting the 

 3   message signify by saying aye.  

 4                (Response of "Aye.")

 5                ACTING PRESIDENT GRIFFO:   Opposed?  

 6                (No response.)

 7                ACTING PRESIDENT GRIFFO:   The 

 8   message of necessity is accepted.

 9                And Calendar Number 315 has been 

10   laid aside by Senator Gianaris.  The Secretary 

11   will ring the bell, and we will have the 

12   controversial reading.

13                The Secretary will read.

14                THE SECRETARY:   Calendar Number 

15   315, Senate Budget Bill, Senate Print 2004C, an 

16   act making appropriations for the support of 

17   government.

18                ACTING PRESIDENT GRIFFO:   Senator 

19   Krueger.

20                SENATOR KRUEGER:   Thank you, 

21   Mr. President.  If the sponsor would please 

22   yield.

23                ACTING PRESIDENT GRIFFO:   The 

24   sponsor yields.

25                SENATOR KRUEGER:   Thank you.


                                                               1632

 1                Could the sponsor clarify what has 

 2   changed from the original proposal of 

 3   $147.7 million under the Office of Children and 

 4   Families?  It's been modified so that the 

 5   expenditure is instead $110 million relating to 

 6   the age of juvenile jurisdiction.  

 7                So what are we doing with 110 versus 

 8   the 147?  Have we just cut out something, or did 

 9   we change the purpose of the $110 million?

10                SENATOR DeFRANCISCO:   First of all, 

11   the $147.7 million was to include the Raise the 

12   Age.  But since we don't have the actual 

13   mechanics, it was too soon to try to put the 

14   actual mechanics in a bill, he took the funding 

15   out of there.  And I know there is another spot 

16   in the budget that it's included.  

17                Yeah, here it is.  The capital 

18   program related to Raising the Age shall be 

19   subject to a chapter of the Laws of 2015.  So 

20   $110 million of it is from Raise the Age, but 

21   it's not going to be finalized until we have a 

22   chapter that actually describes where individuals 

23   are going to be put and the mechanics of the 

24   changes of Raise the Age to the criminal justice 

25   system as it now stands.


                                                               1633

 1                SENATOR KRUEGER:   So through you, 

 2   Mr. President, if the sponsor would continue to 

 3   yield.

 4                SENATOR DeFRANCISCO:   Yes.

 5                ACTING PRESIDENT GRIFFO:   The 

 6   sponsor yields.

 7                SENATOR KRUEGER:   So the answer is 

 8   $110 million is to be determined in a later bill 

 9   to come before this house at a time yet to be 

10   determined?  

11                SENATOR DeFRANCISCO:   The money is 

12   there, and we have an appropriation.  But we have 

13   to have a bill detailing the changes in procedure 

14   before that money can be used.

15                SENATOR KRUEGER:   Thank you, 

16   Mr. President.  If the sponsor would continue to 

17   yield.

18                SENATOR DeFRANCISCO:   Yes.

19                ACTING PRESIDENT GRIFFO:   The 

20   sponsor yields.

21                SENATOR KRUEGER:   Thank you.

22                So in the section on Empire State 

23   Development Corporation, we've accepted the 

24   $1.89 billion --

25                SENATOR LaVALLE:   Mr. President, 


                                                               1634

 1   excuse me.

 2                ACTING PRESIDENT GRIFFO:   Senator 

 3   LaValle. 

 4                SENATOR LaVALLE:   The members in 

 5   the back rows are having a difficult time hearing 

 6   both Senator Krueger and Senator DeFrancisco.  So 

 7   I don't know whether we need to put up the volume 

 8   in their mics.  Just be mindful of it as you --

 9                ACTING PRESIDENT GRIFFO:    

10   Technologically, let's see if we can the raise 

11   the volume on the mics --

12                SENATOR LaVALLE:   Thank you.

13                ACTING PRESIDENT GRIFFO:   -- and 

14   not in the voices.  

15                And I'd ask those in the back to 

16   please take any conversations outside the 

17   chamber, please.

18                Senator Krueger, you may continue.

19                SENATOR KRUEGER:   Thank you.  I 

20   was -- I had asked the sponsor to yield, I 

21   believe he had said yes.

22                SENATOR DeFRANCISCO:   Yes.

23                SENATOR KRUEGER:   And I was asking 

24   the question involving the Empire State 

25   Development Corporation, $1.89 billion, but it 


                                                               1635

 1   has been modified.  

 2                So it adds $400 million for capital 

 3   projects in areas not eligible for the Upstate 

 4   Revitalization Initiative or the Buffalo Regional 

 5   Innovation Cluster program.  So on that subset, 

 6   one, have we added $400 million or have we 

 7   repurposed $400 million of the original 

 8   $1.89 billion?  

 9                SENATOR DeFRANCISCO:   No, we've 

10   added $400 million.  There was a lot of concern 

11   that only three regions of upstate, of the seven 

12   that are eligible, would get money.  And there 

13   are other areas of the state that felt that they 

14   should be provided some economic development 

15   money to offset what's being given in a program 

16   to other regions of the state.

17                SENATOR KRUEGER:   Through you, 

18   Mr. President, if the sponsor would continue to 

19   yield.

20                SENATOR DeFRANCISCO:   Yes.

21                ACTING PRESIDENT GRIFFO:   The 

22   sponsor yields.

23                SENATOR KRUEGER:   Thank you.

24                So on this section, so there was the 

25   $1.5 billion that the Governor was discussing 


                                                               1636

 1   distributing in three $500 million competitive 

 2   grants.  I believe that is still there and will 

 3   be given out over five years, $100 million per 

 4   year to each of those three winners.  

 5                And then these new $400 million will 

 6   go to only upstate areas and the upstate areas 

 7   not included in the three winners?  

 8                SENATOR DeFRANCISCO:   No, it 

 9   includes not only the other regions, but it also 

10   includes any other area of the state.

11                SENATOR KRUEGER:   It includes -- 

12   sorry.  Through you, Mr. President, if the 

13   sponsor --

14                ACTING PRESIDENT GRIFFO:   The 

15   sponsor yields.

16                SENATOR KRUEGER:   Thank you.  

17                Does it include New York City and 

18   Long Island as well?  

19                SENATOR DeFRANCISCO:   Yes.

20                SENATOR KRUEGER:   Thank you.  

21   Through you, Mr. President, if the sponsor would 

22   continue to yield.

23                SENATOR DeFRANCISCO:   Yes.

24                ACTING PRESIDENT GRIFFO:   The 

25   sponsor yields.


                                                               1637

 1                SENATOR KRUEGER:   On that same 

 2   section, can this money be used for or is it 

 3   explicitly to be used for infrastructure needs 

 4   that we've been hearing so much from counties and 

 5   municipalities that they are so in search of 

 6   money for, or is it not able to be used this way?

 7                SENATOR DeFRANCISCO:   It's just the 

 8   limiting language simply is capital projects.  

 9   And I would think infrastructure would be 

10   eligible -- I know that infrastructure would be 

11   eligible.  And EDC will determine, Empire State 

12   Development Corp. would determine which projects 

13   they were going to fund.

14                SENATOR KRUEGER:   And through you, 

15   Mr. President, an additional question on this 

16   section.

17                SENATOR DeFRANCISCO:   Yes.

18                ACTING PRESIDENT GRIFFO:   The 

19   sponsor yields.

20                SENATOR KRUEGER:   Thank you.  

21                So the $1.5 billion is over five 

22   years.  Is the $400 million intended also to be 

23   over five years, or all in one year?

24                SENATOR DeFRANCISCO:   It can be 

25   used over a period of four years, or it can be 


                                                               1638

 1   matched to the funding upstate at five years.  

 2   Four or five years.

 3                SENATOR KRUEGER:   Through you, 

 4   Mr. President, if the sponsor would continue to 

 5   yield.

 6                SENATOR DeFRANCISCO:   Yes.

 7                ACTING PRESIDENT GRIFFO:   The 

 8   sponsor yields.

 9                SENATOR KRUEGER:   Thank you.  

10                There's also a section on 

11   environmental conservation projects that adds 

12   $200 million for a multiyear Water Quality 

13   Infrastructure Improvement Act, or the 

14   $200 million is part of $566.9 million.  That 

15   water quality infrastructure improvement money, 

16   is that over multiple years?  And how large can 

17   the grants be?

18                SENATOR DeFRANCISCO:   It's over 

19   three years.  

20                And the grants that could come out 

21   of here -- it's applicable to the entire state, 

22   but the grants that come out of here are limited 

23   to $5 million.  And if I'm not mistaken, it 

24   requires a match from the local government 

25   depending upon the type of project.


                                                               1639

 1                SENATOR KRUEGER:   This is where I 

 2   do get a little confused, because there is the 

 3   $200 million for the water quality infrastructure 

 4   and then -- you know what, I wasn't confused.  

 5   Let me refocus my question, Mr. President, if the 

 6   sponsor will continue to yield.

 7                SENATOR DeFRANCISCO:   Sure.

 8                ACTING PRESIDENT GRIFFO:   The 

 9   sponsor yields.

10                SENATOR KRUEGER:   So you can 

11   receive no more than $5 million per project or 

12   per municipality?  

13                SENATOR DeFRANCISCO:   Per 

14   municipality.  So there's enough money to be 

15   spread around.

16                SENATOR KRUEGER:   Through you, 

17   Mr. President, is this money funded through the 

18   EFC?  

19                SENATOR DeFRANCISCO:   Yes.

20                SENATOR KRUEGER:   It is.  So per 

21   municipality.  And is it a one-to-one match?  

22   What's the match formula?

23                SENATOR DeFRANCISCO:   They can 

24   get -- the municipality can get up to 60 percent 

25   of the project cost.


                                                               1640

 1                SENATOR KRUEGER:   So they put in 

 2   40 cents and they get 60 cents --

 3                SENATOR DeFRANCISCO:   Correct.

 4                SENATOR KRUEGER:   -- up to 

 5   $5 million.  

 6                SENATOR DeFRANCISCO:   That's 

 7   correct.

 8                SENATOR KRUEGER:   Counties are not 

 9   eligible, only towns, cities and villages?  

10                SENATOR DeFRANCISCO:   I think 

11   counties are eligible.  I think any governing 

12   unit.  Any governing unit is considered a 

13   municipality.

14                SENATOR KRUEGER:   And through you, 

15   Mr. President, if the sponsor would continue to 

16   yield.

17                SENATOR DeFRANCISCO:   Yes.

18                ACTING PRESIDENT GRIFFO:   The 

19   sponsor yields.

20                SENATOR KRUEGER:   Thank you.  

21                So if there were a group of 

22   municipalities near each other all within one 

23   county, could they come in for a group package 

24   totaling more than $5 million?  Since my 

25   understanding on water infrastructure is it 


                                                               1641

 1   rarely changes when a line is crossed for a town 

 2   or village.

 3                SENATOR DeFRANCISCO:   Yes, I -- it 

 4   would be.  They could combine as long as that 

 5   portion that they're applying for, the costs 

 6   could be justified as occurring in their 

 7   particular municipality.

 8                SENATOR KRUEGER:   Okay, thank you.  

 9                Through you, Mr. President, if the 

10   sponsor would continue to yield.

11                SENATOR DeFRANCISCO:   Yes.

12                ACTING PRESIDENT GRIFFO:   The 

13   sponsor yields.

14                SENATOR KRUEGER:   Thank you.  

15                There's a "Capital Projects -- 

16   Health Department" section that's providing 

17   $175,000 for the Ezra Medical Center.  Can I ask 

18   where that center is located and what that money 

19   is for?

20                SENATOR DeFRANCISCO:   We've got 

21   another participant here.

22                SENATOR HANNON:   May I speak?

23                ACTING PRESIDENT GRIFFO:   Without 

24   objection, I ask for unanimous consent.  Senator 

25   Hannon, you're hereby recognized.  


                                                               1642

 1                Senator Krueger, pose your question.

 2                SENATOR KRUEGER:   Thank you.

 3                If I might repeat the question, 

 4   within the $1.2 billion capital projects for the 

 5   Health Department there was added $175,000 for 

 6   the Ezra Medical Center.  I was wondering what or 

 7   where that medical center is and what the 

 8   $175,000 is for.

 9                SENATOR HANNON:   It is a community 

10   health center, I think it's an FQHC, Federally 

11   Qualified Health Center.  It's located in 

12   Brooklyn.  And through a drafting error, it was 

13   left out of the main bill.

14                SENATOR KRUEGER:   Okay, thank you.

15                Through you, Mr. President, if some 

16   sponsor would continue.

17                SENATOR DeFRANCISCO:   Well, it 

18   depends on the question.

19                (Laughter.)

20                ACTING PRESIDENT GRIFFO:   Senator 

21   DeFrancisco will yield.  And you may continue, 

22   Senator Krueger, and we can designate 

23   accordingly.

24                SENATOR KRUEGER:   I welcome all 

25   sponsors.  I am very equal opportunity that way.


                                                               1643

 1                In the section on Housing and 

 2   Community Renewal, yesterday in a bill we took 

 3   all the housing money out, and then today we seem 

 4   to be putting at least the $439.5 million in 

 5   JPMorgan settlement funds back in.  Is there a 

 6   breakdown on how much money is for what specific 

 7   project that the sponsor can share with me?

 8                SENATOR DeFRANCISCO:   Yup.  We'll 

 9   get that for you right now.

10                There's a Public Housing 

11   Modernization Program, NYCHA, $100 million.  

12   Moderate-Income Loan Program, $25 million.  

13   Mitchell-Lama repairs and revitalization, 

14   $25 million.  SONY Neighborhood Revitalization 

15   Purchase Program, $21,689,965.  Access to Home 

16   for Heroes, $19,000,601.  RESTORE Seniors 

17   Program, $5 million.  Statewide New York IV 

18   Supportive Housing Program, $124.5 million.  

19   Restore New York Communities Initiative, $25 

20   million.  State CDFI Fund, zero.  New York Rental 

21   Assistance Link 1, $40 million.  HIV rent cap, 

22   $27 million.  The Neighborhood Preservation 

23   organization and the Rural Preservation 

24   organization, a total of $20,259,000.  The 

25   Adirondack Housing Community Trust, $1 million.  


                                                               1644

 1   And lastly, Main Street Program, $5.35 million.

 2                SENATOR KRUEGER:   Through you, 

 3   Mr. President, if the sponsor would continue to 

 4   yield.

 5                SENATOR DeFRANCISCO:   Yes.

 6                ACTING PRESIDENT GRIFFO:   The 

 7   sponsor yields.

 8                SENATOR KRUEGER:   Thank you.  

 9                So some of these program amounts 

10   have in fact changed since the Executive proposal 

11   came out; is that correct?  These numbers are 

12   actually different than we had seen earlier?  

13                SENATOR DeFRANCISCO:   That is 

14   correct.

15                SENATOR KRUEGER:   And through you, 

16   Mr. President, if the sponsor would continue to 

17   yield.

18                ACTING PRESIDENT GRIFFO:   The 

19   sponsor yields.

20                SENATOR KRUEGER:   And here I'm 

21   working not off of the budget bill itself, but 

22   actually the report on the budget bill that has 

23   been placed on our desks.  And the language for 

24   Housing and Community Renewal just says "The 

25   Legislature concurs with the Executive 


                                                               1645

 1   recommendation of $91.2 million, with the 

 2   following modifications."  And then the following 

 3   modifications -- that's page 3 of the report -- 

 4   the following modifications are the 

 5   $439.5 million that the sponsor just kindly read 

 6   off of how it's being spent.  

 7                But I'm a little confused.  How does 

 8   that mesh with the $91.2 million?  Did we add 

 9   439.5 to the 91.2 and did the list you just read 

10   off really total more like $529 million?  

11                SENATOR DeFRANCISCO:   That's 

12   correct.  

13                And the fact that this was not in 

14   the normal bill that it was in is because there 

15   was a lot of discussion about how to break up 

16   that money, and it resulted in the additional 

17   funds being placed there.

18                SENATOR KRUEGER:   Okay.  So I 

19   appreciate the sponsor's answer.  I did want to 

20   make sure, because the money has been moving in 

21   and out of different bills, as I discussed here 

22   yesterday.  Things that you thought would be in 

23   one bill weren't, but then they are sometimes 

24   popping up in others.  

25                So I just wanted to go on record 


                                                               1646

 1   that we understood how much money there was for 

 2   housing in the capital budget and how it was 

 3   being distributed.

 4                SENATOR DeFRANCISCO:   And I want to 

 5   go on record simply to say I promised that this 

 6   would all mesh together.  And now I'm explaining 

 7   why it had to be taken out, and now it is coming 

 8   to a final budget at the very end.  And I told 

 9   you I had faith, and I do have faith.

10                SENATOR KRUEGER:   I still like to 

11   work off the facts, but I appreciate the 

12   sponsor's faith.

13                Through you, Mr. President, if the 

14   sponsor would continue to yield.

15                SENATOR DeFRANCISCO:   Yes.

16                ACTING PRESIDENT GRIFFO:   The 

17   sponsor yields.

18                SENATOR KRUEGER:   Thank you.  

19                In the section on "Transportation" 

20   in the capital budget, there's been a change from 

21   the Executive, which moved from $4.9 billion to 

22   $5.1 billion.  What have we added and/or changed 

23   from the original 4.9 to get to 5.1?  

24                SENATOR DeFRANCISCO:   The ones 

25   listed on the sheet that was provided to you are 


                                                               1647

 1   the ones that were added.

 2                And they hopefully will add up to 

 3   the additional -- those are the adds, and 

 4   hopefully it will add up to $200 million.

 5                SENATOR KRUEGER:   I'm sorry, 

 6   through you, Mr. President, there's the dilemma.  

 7   I don't think it does add up.  Because I see 

 8   $200 million added, but in the chart below I see 

 9   $100 million for highways and bridges and 

10   $50 million for one-time consolidated local 

11   highway program, $15 million for upstate transit, 

12   $2.5 million for the Wells Bridge, $1 million for 

13   the Glens Falls highway bridge.  So I think we're 

14   still about $45 million short.  

15                SENATOR DeFRANCISCO:   Then it was 

16   increased from 4.9 million to whatever that next 

17   number is when you add those in.

18                SENATOR KRUEGER:   So it was a 

19   rounding error?  

20                SENATOR DeFRANCISCO:   I don't know 

21   if it was a rounding error, but the intent was -- 

22   and it will be in the bill itself -- that these 

23   were additions to the original $4.9 million.

24                SENATOR KRUEGER:   Through you, 

25   Mr. President, if the sponsor would continue to 


                                                               1648

 1   yield.

 2                SENATOR DeFRANCISCO:   Yes.  Yes.

 3                ACTING PRESIDENT GRIFFO:   The 

 4   sponsor yields.

 5                SENATOR KRUEGER:   So the sponsor 

 6   just pointed out that yesterday we had a 

 7   discussion about faith and that things would all 

 8   come together.  Yesterday I asked him about the 

 9   circuit breaker property tax program.  Is that 

10   going to pop up today somewhere?  

11                SENATOR DeFRANCISCO:   No, and it's 

12   not going to pop up at all.  And neither is the 

13   alternative we provided to the Governor; namely, 

14   a rebate check from new funds for next year, not 

15   this calendar year.  That fell off the table as 

16   well.  So neither one will be in this budget.

17                SENATOR KRUEGER:   Through you, 

18   Mr. President, if the sponsor would continue to 

19   yield.

20                SENATOR DeFRANCISCO:   Yes.

21                SENATOR KRUEGER:   Thank you.

22                What is the total amount in this 

23   capital budget bill?

24                SENATOR DeFRANCISCO:   Well, that's 

25   a very good question.  Whatever all these numbers 


                                                               1649

 1   add up to.

 2                (Laughter.)

 3                SENATOR KRUEGER:   I'm sorry, I -- 

 4   could I ask the sponsor to repeat?  

 5                ACTING PRESIDENT GRIFFO:   It's 

 6   probably a once-in-a-lifetime kind of expression 

 7   from Senator DeFrancisco, Senator.  

 8                SENATOR DeFRANCISCO:   I simply said 

 9   whatever all these numbers add up to is in this 

10   budget.

11                SENATOR KRUEGER:   Through you, 

12   Mr. President.

13                ACTING PRESIDENT GRIFFO:   Senator 

14   Krueger.

15                SENATOR KRUEGER:   They have all 

16   these wonderful budget and policy analysts, one 

17   for each topic.  So somebody knows how much 

18   capital this budget bill adds up to.

19                SENATOR DeFRANCISCO:   A 

20   mere 7 billion, 581 million.

21                ACTING PRESIDENT GRIFFO:   Excuse 

22   me, the chamber is getting a little noisy.  

23   Please, so we can have the members hear each 

24   other.

25                SENATOR KRUEGER:   If the sponsor 


                                                               1650

 1   could just repeat that number one more time for 

 2   me.

 3                SENATOR DeFRANCISCO:   Seven 

 4   billion, 581 million.

 5                SENATOR KRUEGER:   And if the 

 6   sponsor would continue to yield, please.

 7                ACTING PRESIDENT GRIFFO:   The 

 8   sponsor yields.

 9                SENATOR KRUEGER:   Thank you.

10                And how much of the $5.4 billion in 

11   bank settlement money is within this 

12   $7.581 billion capital budget?  

13                SENATOR DeFRANCISCO:   I can't give 

14   you that number at this point.  But all of the 

15   $5.4 billion was utilized in this budget.

16                SENATOR KRUEGER:   So all 5.4 is in 

17   this budget somewhere within various bills.

18                SENATOR DeFRANCISCO:   Right.  And I 

19   know 1.3 went to the Thruway Authority, primarily 

20   for the Tappan Zee Bridge; $1.5 billion went into 

21   the competition.  A group of that -- the money 

22   for the hospitals amounted to --

23                SENATOR KRUEGER:   Through you, 

24   Mr. President, if the -- oh, I'm sorry, I thought 

25   you were done.


                                                               1651

 1                SENATOR DeFRANCISCO:   No, I was 

 2   just going to say the hospital money that went to 

 3   the Utica area, Brooklyn, and rural hospitals, 

 4   that was about 1.4, 1.4 total.  And then there 

 5   was about a billion, 900 million -- $850 million 

 6   that we had to pay back the federal government 

 7   because certain things were overcharged.  

 8                And all those things that I've been 

 9   reading off happened to appear somewhere here.  

10   From the New York State Infrastructure Account.  

11   Is that in here?  And there's a -- as you can 

12   see, let me just -- it should be listed here.  

13   All right.  I did it as best from memory, but let 

14   me try again.

15                Five hundred million for the New NY 

16   Broadband Initiative; $1.3 billion, as I said, 

17   for the Thruway Stabilization Fund, $1 billion of 

18   which goes to the Tappan Zee Bridge; $250 million 

19   for the MTA for Metro-North access to Penn 

20   Station; $50 million for the Southern Tier and 

21   Hudson Valley farm program; $115 million for 

22   infrastructure improvements, including rail and 

23   port capital projects and the State Fair, which 

24   is in my district; $150 million for municipal 

25   restructuring; $150 million for counterterrorism 


                                                               1652

 1   and disaster resistance, including public safety; 

 2   $400 million for healthcare-related projects -- 

 3   the $400 million is the rural part of the 

 4   hospital piece -- and $580-some-odd million for 

 5   paying back the federal government for 

 6   overpayment on developmental disability payments; 

 7   $150 million for the transformative economic 

 8   development projects for Nassau and Suffolk.

 9                So that is 3.5.  The other money is 

10   in the economic development piece, which I 

11   probably could get to you.

12                Repayment on developmental 

13   disabilities, 850, and we're looking for the rest 

14   of the money.  (Conferring off the record.)

15                That list I gave you did not include 

16   something I mentioned before, the 1.5 economic 

17   development in upstate New York.  So that wasn't 

18   listed in what I just said.  The 1.5 is the 

19   Hunger Games.

20                SENATOR KRUEGER:   Okay.  Thank you.  

21   There's a lot of different pieces of information 

22   there.

23                Going specifically to -- through 

24   you, Mr. President, if the sponsor would continue 

25   to yield.


                                                               1653

 1                ACTING PRESIDENT GRIFFO:   The 

 2   sponsor will continue to yield.

 3                SENATOR KRUEGER:   Thank you.  I 

 4   appreciate his trying to pull together all this 

 5   information.

 6                I guess for me it partly highlights 

 7   it's a capital bill worth $7.581 billion.  I 

 8   think it came to print maybe noon today.  We're 

 9   doing this with a message of necessity.  I 

10   empathize with his struggling to find all the 

11   right information.  I think the public would have 

12   even greater trouble figuring this all out 

13   between noon and I guess it's 5:30.

14                Specifically within the New York 

15   State Special Infrastructure Account, where much 

16   of this settlement money that you just read off 

17   is going, there was the $1.3 billion for the 

18   Thruway Stabilization Program.  And my 

19   understanding is that broke out as $900 million 

20   for the Tappan Zee and $400 million for the 

21   Thruway Authority's core capital program.  

22                Is there a list somewhere of what 

23   that $400 million will be spent on, specific 

24   projects?

25                SENATOR DeFRANCISCO:   No, there's 


                                                               1654

 1   no list.  It's going to the Thruway Authority for 

 2   their discretion.  And the thought would be, 

 3   since it's capital money, that it will relieve 

 4   them from responsibility to bond and pay for 

 5   bonding in order to help stabilize the Thruway 

 6   tolls throughout the Thruway system.  So that 

 7   there will hopefully -- it's expected that there 

 8   will be no toll increases this year.

 9                So it's primarily, if they have more 

10   capital, to use that for things that they used to 

11   use Thruway Authority tolls for.

12                SENATOR KRUEGER:   Through you, 

13   Mr. President, if the sponsor would continue to 

14   yield.

15                ACTING PRESIDENT GRIFFO:   The 

16   sponsor yields.

17                SENATOR DeFRANCISCO:   Yes.

18                SENATOR KRUEGER:   Okay, so there's 

19   not a specific list.  But if one actually goes to 

20   the budget language of the bill under the Thruway 

21   Stabilization Program -- there's no point in 

22   really reading a page number, but it's under 

23   "Miscellaneous -- All State Departments," 

24   "New York State Special Infrastructure Account, 

25   Capital Projects."  


                                                               1655

 1                It says:  "Provided, however, that 

 2   funds shall not be made available from this 

 3   appropriation unless the New York State Thruway 

 4   Authority has submitted a plan to the Governor, 

 5   the speaker of the Assembly, the President Pro 

 6   Tem of the Senate that describes the portions of 

 7   the funding appropriated herein that will be used 

 8   for costs related to the New NY Bridge" -- which 

 9   is what we've been calling the new Tappan Zee 

10   Bridge -- "bridge-related transportation 

11   improvement and the Thruway core capital 

12   programs."

13                So I believe that this budget bill 

14   is actually requiring there being a lined-out 

15   document or MOU before money can be spent.  Would 

16   the sponsor agree with me that we should be 

17   getting that before money is appropriated?  

18                SENATOR DeFRANCISCO:   We don't have 

19   to approve a list.  We have to get a listing of 

20   specifically what they're going to use the 

21   additional money for.

22                SENATOR KRUEGER:   Through you, 

23   Mr. President, if the sponsor --

24                SENATOR DeFRANCISCO:   And by the 

25   way, with respect to your prior remarks about not 


                                                               1656

 1   being able to read the -- or find all of the 

 2   different parts of this infrastructure account, 

 3   they were -- most of them were in the fact sheet 

 4   that we provided you with today.  

 5                And also, the other 1.5 was from 

 6   another part of the budget -- namely, the 

 7   economic development program some call the Hunger 

 8   Games.  So it all added up, they were just in two 

 9   different places.

10                SENATOR KRUEGER:   Through you, 

11   Mr. President, if the sponsor would continue to 

12   yield.

13                SENATOR DeFRANCISCO:   Yes.

14                ACTING PRESIDENT GRIFFO:   The 

15   sponsor yields.

16                SENATOR KRUEGER:   Yes, I am very 

17   glad we have these reports on each bill put on 

18   our desks.  I think the sponsor might remember we 

19   had a budget reform law that passed in 2007 that 

20   requires these kinds of reports, and I think 

21   we're all very glad we have them in comparison to 

22   the system before.

23                And again, I believe the sponsor is 

24   correct that the list does not have to be voted 

25   on, but it has to be shared.  But we have not 


                                                               1657

 1   seen that list as of now.

 2                SENATOR DeFRANCISCO:   Well, the 

 3   reason is they haven't made the list yet, not 

 4   making decisions yet as to where the funding is 

 5   going to be used.  We just confirmed the chairman 

 6   of the Thruway Authority I think yesterday, and 

 7   she hasn't had time yet to do that.

 8                With respect to the sheets, I agree 

 9   with you, this is extremely helpful to me.  I 

10   remember when I sat in your chair, and I remember 

11   we got no lists, we got no --

12                SENATOR KRUEGER:   We did, actually.  

13   That was post-2007.  You had the reports.

14                SENATOR DeFRANCISCO:   But we got 

15   not answers whatsoever from your predecessor.  

16   And I've got video of those, just so you know.  

17   We're trying to cooperate as best we can.

18                SENATOR KRUEGER:   Through you, 

19   Mr. President, what was the line of Mr. Gianaris 

20   yesterday about the New Deal?

21               I'm sorry, may I ask Senator 

22  Gianaris to yield, please.

23                ACTING PRESIDENT GRIFFO:   Senator 

24   Krueger, would -- sure.  Senator Gianaris, do you 

25   yield?


                                                               1658

 1                (Laughter.)

 2                SENATOR KRUEGER:   Thank you.  

 3                ACTING PRESIDENT GRIFFO:   Without 

 4   objection.

 5                SENATOR GIANARIS:   What you said, 

 6   Mr. President.

 7                (Laughter.)

 8                SENATOR KRUEGER:   So we're going 

 9   back in history again, Senator Gianaris, to a 

10   predecessor who's no longer here but apparently 

11   there's video of him.  What would be your 

12   response about going back in history and budget 

13   discussions?

14                SENATOR GIANARIS:   I believe 

15   yesterday I indicated that the statute of 

16   limitations has expired on going too far back, 

17   unless they want us to invoke the Republicans' 

18   opposition to the New Deal, which was apparently 

19   through the '30s and '40s, Senator Hannon.

20                (Laughter.)

21                SENATOR KRUEGER:   Thank you.  

22                ACTING PRESIDENT GRIFFO:   Senator 

23   Gianaris.  

24                Senator Krueger, are you on the 

25   bill?  


                                                               1659

 1                SENATOR KRUEGER:   I am on the bill, 

 2   thank you.

 3                ACTING PRESIDENT GRIFFO:   Senator 

 4   Krueger on the bill.

 5                SENATOR KRUEGER:   I do want to 

 6   thank my colleagues, the two sponsors who got up 

 7   to answer questions.

 8                The capital budget is an enormously 

 9   important budget bill.  We're talking about 

10   almost $8 billion in money for an incredibly 

11   broad range of capital issues throughout the 

12   state, throughout every agency of the state.  

13                There are some good things in this 

14   bill.  It expands infrastructure money for 

15   localities, an issue that I have been crucially 

16   aware of that we are, I feel, starving our 

17   localities for basic infrastructure money as we 

18   put more and more money into these, as my 

19   colleague referred, these Hunger Game 

20   competitions that too often don't put any money 

21   into basic infrastructure.

22                The strength of an economy, the 

23   strength of our state, from the northern end to 

24   the southern tip of Long Island, requires that we 

25   have a solid infrastructure, we have roads and 


                                                               1660

 1   bridges, we have clean water, we can assure 

 2   people, if they come to live here or if they come 

 3   to do business here or open up new businesses 

 4   here, that we have the basics that they need to 

 5   make sure that they can live their life and be 

 6   successful.

 7                We need quality workers for them to 

 8   hire who have been educated in the great 

 9   K-through-college educational system.  They need 

10   to be assured that when they turn on the 

11   electricity, it will go on and stay on; when they 

12   turn on the water, clean water will come out for 

13   them to drink.  And so much of this money is 

14   being spent appropriately for the future of the 

15   State of New York and the infrastructure.

16                I no doubt could find a number of 

17   things here that I would say was not being spent 

18   correctly or that I am disappointed have remained 

19   in this final budget bill, in this final capital 

20   budget bill.  But tonight I am comfortable voting 

21   yes on this, Mr. President.  

22                Thank you.

23                ACTING PRESIDENT GRIFFO:   Senator 

24   Espaillat.

25                SENATOR ESPAILLAT:   Thank you, 


                                                               1661

 1   Mr. President.  Would the sponsor yield for a 

 2   couple of questions?  

 3                ACTING PRESIDENT GRIFFO:   The 

 4   sponsor yields.

 5                SENATOR DeFRANCISCO:   If it's not 

 6   about the three-card monte.

 7                (Laughter.)

 8                SENATOR ESPAILLAT:   I am still 

 9   looking for the red.  Perhaps I'll find it today.  

10                Through you, Mr. President.  We were 

11   visited by the NYCHA chair, and the New York City 

12   mayor has expressed an interest in capturing 

13   capital dollars to improve the conditions of 

14   NYCHA-complex buildings and has even pledged to 

15   match capital dollars up to $300 million.  Is 

16   there any capital monies for NYCHA in this bill?

17                SENATOR DeFRANCISCO:   Yes, just a 

18   mere $100 million.

19                SENATOR ESPAILLAT:   Okay.

20                SENATOR DeFRANCISCO:   That's not 

21   bad.

22                SENATOR ESPAILLAT:   That's not bad.  

23   Well, thank you for that.

24                And originally the Governor put on 

25   the table the New York/New York IV program to 


                                                               1662

 1   fund affordable housing and housing also for 

 2   Mitchell-Lama middle-income homes.  Is there any 

 3   funding for that particular program in the 

 4   budget?  

 5                SENATOR DeFRANCISCO:   There's 

 6   $124.5 million for supportive housing.  And also 

 7   I know there's Mitchell-Lama on this, 

 8   $25 additional million.

 9                SENATOR ESPAILLAT:   So through you, 

10   Mr. President, if the sponsor will yield.

11                ACTING PRESIDENT GRIFFO:   The 

12   sponsor yields.

13                SENATOR ESPAILLAT:   So there is an 

14   additional $25 million on top of the 124 for 

15   New York/New York for Mitchell-Lama housing in 

16   particular?  

17                SENATOR DeFRANCISCO:   Correct.

18                SENATOR ESPAILLAT:   Okay, very 

19   good.

20                Now, HCR, the office for Housing and 

21   Community Renewal, what is the total budget for 

22   HCR?  And is that in that particular bill?

23                SENATOR DeFRANCISCO:   I don't have 

24   that information.  We can tell you what the 

25   capital is.  The entire capital is $91.2 million.  


                                                               1663

 1   The capital is 91.2, adding to it the 

 2   $439,549,000 which is in the listing of the 

 3   capital additions.

 4                SENATOR ESPAILLAT:   Thank you.  I 

 5   want to thank the sponsor.  

 6                Mr. President, on the bill.

 7                ACTING PRESIDENT GRIFFO:   Senator 

 8   Espaillat on the bill.

 9                SENATOR ESPAILLAT:   For the first 

10   time in many years, we have been able to capture 

11   funding for NYCHA buildings in the City of 

12   New York.  Some years back, many years back, we 

13   abandoned them, and these structures have 

14   suffered deterioration.  We were able to get some 

15   funding through the stimulus package when we 

16   federalized a number of them, over 30 of those 

17   complexes that were not part of the federal 

18   program.  And that capital funding proved to be 

19   very effective in improving the conditions of 

20   those buildings and the apartments within.

21                So this $100 million assigned to 

22   NYCHA, although shorter than what we proposed as 

23   a conference -- because we felt that a good 

24   portion of the settlement money, the $5 billion 

25   settlement money should go to this endeavor -- is 


                                                               1664

 1   a step in the right direction.

 2                In addition, the 124 for 

 3   New York/New York, which proposes to finance 

 4   statewide multi-agency supportive housing 

 5   programs to provide housing and support services 

 6   for vulnerable New Yorkers, is also a step in the 

 7   right direction.

 8                We're hoping that the HCR housing 

 9   agency will stay whole as we finish this budget.  

10   And, Mr. President, at least we found one of the 

11   reds today that we were looking for yesterday.  I 

12   will be voting in the affirmative on this bill.

13                ACTING PRESIDENT GRIFFO:   Senator 

14   Panepinto.

15                SENATOR PANEPINTO:   Mr. President, 

16   will the speaker entertain some questions, or the 

17   sponsor entertain some questions?  

18                ACTING PRESIDENT GRIFFO:   Senator 

19   DeFrancisco, do you yield?  

20                SENATOR DeFRANCISCO:   Yes.

21                ACTING PRESIDENT GRIFFO:   The 

22   Senator yields.

23                SENATOR PANEPINTO:   Senator 

24   DeFrancisco, on the economic development portion 

25   of the capital bill, there's a change from the 


                                                               1665

 1   competitive process.  Is Western New York going 

 2   to be part of the competitive process that's now 

 3   put in place?

 4                SENATOR DeFRANCISCO:   No.  In 

 5   addition to the $1 billion without competition 

 6   that you got, there's another $400 million in 

 7   this budget, since you were not included in the 

 8   Hunger Games, that you will have available to you 

 9   in this budget.

10                SENATOR PANEPINTO:   So it's the 

11   $400 million separate appropriation which Western 

12   New York can compete for?  

13                SENATOR DeFRANCISCO:   Not compete, 

14   get.

15                SENATOR PANEPINTO:   Get, okay.

16                SENATOR DeFRANCISCO:   If you want 

17   to compete, we can add it to the pot.

18                SENATOR PANEPINTO:   If the Governor 

19   and you took it out of the competition --

20                ACTING PRESIDENT GRIFFO:   Senator 

21   Panepinto, are you asking the sponsor to continue 

22   to yield?

23                SENATOR PANEPINTO:   Yes, please.

24                ACTING PRESIDENT GRIFFO:   Okay.  

25   Senator DeFrancisco yields.


                                                               1666

 1                SENATOR PANEPINTO:   So will there 

 2   be regional competitions?  How will the money 

 3   then be distributed, the $1.5 billion?  

 4                SENATOR DeFRANCISCO:   The 1.5, 

 5   there's seven regions listed in the budget, all 

 6   upstate.  Three of them will be winners for 

 7   additional funds.  But the losers aren't going to 

 8   be losers, because there's still economic 

 9   development money at the REDC tables.  And they 

10   won't be excluded from funding, they just won't 

11   get as much funding as three winners in this 

12   competition.

13                SENATOR PANEPINTO:   Will the 

14   sponsor continue to yield?  

15                ACTING PRESIDENT GRIFFO:   The 

16   sponsor yields.

17                SENATOR DeFRANCISCO:   Yes.

18                SENATOR PANEPINTO:   Who will make 

19   the decision on those funding requests?

20                SENATOR DeFRANCISCO:   It goes right 

21   through the same Economic Development Councils.  

22   And there's an overall super-duper body in Albany 

23   that makes recommendations and supposedly makes 

24   the decisions, but I've got a feeling there may 

25   be some Governor input.


                                                               1667

 1                SENATOR PANEPINTO:   Will the 

 2   speaker continue to yield?  

 3                ACTING PRESIDENT GRIFFO:   The 

 4   sponsor yields.

 5                SENATOR DeFRANCISCO:   Yes.

 6                SENATOR PANEPINTO:   On higher 

 7   education, what's the allocation for SUNY and 

 8   CUNY for capital projects in our capital budget?

 9                SENATOR DeFRANCISCO:   Well, CUNY, I 

10   got that right here.  It's $160.9 million total.  

11   And SUNY, if this is in alphabetical order, 

12   $462,427,000.

13                SENATOR PANEPINTO:   Will the 

14   sponsor continue to yield?

15                SENATOR DeFRANCISCO:   Yes.

16                ACTING PRESIDENT GRIFFO:   The 

17   sponsor yields.

18                SENATOR PANEPINTO:   Was there 

19   consideration given to the five-year capital plan 

20   that both SUNY and CUNY lobbied for?  And what 

21   was the reasoning behind not going in that 

22   direction?  

23                SENATOR DeFRANCISCO:   It's not in 

24   the budget.

25                SENATOR PANEPINTO:   It's not in the 


                                                               1668

 1   budget.

 2                SENATOR DeFRANCISCO:   You're 

 3   talking about additional funds for capital?  

 4                SENATOR PANEPINTO:   Yes.

 5                SENATOR DeFRANCISCO:   For SUNY and 

 6   CUNY, there's no additional funds.  That is 

 7   correct, there's no additional funds.  

 8                In the capital plan it's listed as 

 9   sort of a wish list, but there's no appropriation 

10   for it.

11                SENATOR PANEPINTO:   And will the 

12   sponsor continue to yield?  

13                SENATOR DeFRANCISCO:   Yes.

14                ACTING PRESIDENT GRIFFO:   The 

15   sponsor yields.

16                SENATOR PANEPINTO:   Isn't it true 

17   that we've just finished two five-year 

18   consecutive plans for SUNY funding for capital 

19   projects?

20                SENATOR DeFRANCISCO:   The last one 

21   that was approved was completed two years ago.

22                SENATOR PANEPINTO:   Okay.  Will the 

23   sponsor continue to yield?  

24                SENATOR DeFRANCISCO:   Yes.

25                ACTING PRESIDENT GRIFFO:   The 


                                                               1669

 1   sponsor yields.

 2                SENATOR PANEPINTO:   On the question 

 3   of -- under the "Labor" portion of the capital 

 4   budget, there's a $60 million appropriation for 

 5   information technology for the Workers' 

 6   Compensation Board.  Is there any detail to that, 

 7   of what that's going to go towards?  

 8                SENATOR DeFRANCISCO:   I'll check 

 9   for you.

10                It's a capital appropriation to 

11   upgrade their software and hardware for claims 

12   administration.

13                SENATOR PANEPINTO:   Will the 

14   speaker continue to yield?  

15                SENATOR DeFRANCISCO:   Yes.

16                ACTING PRESIDENT GRIFFO:   The 

17   sponsor yields.

18                SENATOR DeFRANCISCO:   This isn't 

19   the Assembly; I'm not the speaker.  I just want 

20   you to be clear about that.

21                SENATOR PANEPINTO:   The sponsor, I 

22   apologize.

23                SENATOR DeFRANCISCO:   All right.  

24                SENATOR PANEPINTO:   Is that 

25   $60 million going to be spent this year, or is 


                                                               1670

 1   that a continuing program?

 2                SENATOR DeFRANCISCO:   Well, the 

 3   intent is to get this system up and operating as 

 4   quickly as possible.  But they anticipate that 

 5   the program will take five years to complete.

 6                SENATOR PANEPINTO:   Will the 

 7   sponsor continue to yield?  

 8                SENATOR DeFRANCISCO:   I'm getting 

 9   kind of tired now, but go ahead.

10                (Laughter.)

11                SENATOR PANEPINTO:   I apologize.  

12   I'll wrap it up.

13                ACTING PRESIDENT GRIFFO:   The 

14   sponsor yields.

15                SENATOR PANEPINTO:   Under the 

16   $150 million for severe weather acts, how will 

17   that be determined or how will that money be 

18   distributed?

19                SENATOR DeFRANCISCO:   Well, it's 

20   additional CHIPS money, if I'm not mistaken.  

21   Fifty million?  Which one are you referring to?  

22   I'm sorry.

23                ACTING PRESIDENT GRIFFO:   He was 

24   referring to severe weather, he said.

25                SENATOR PANEPINTO:   Severe weather, 


                                                               1671

 1   acts of terrorism.  It was a $150 million 

 2   appropriation.

 3                SENATOR DeFRANCISCO:   I got 

 4   50 million of it so far, for DOT trucks or 

 5   equipment.  Forty million for counterterrorism.  

 6   And 60 million for police equipment for local law 

 7   enforcement.

 8                SENATOR PANEPINTO:   On the bill.

 9                ACTING PRESIDENT GRIFFO:   Senator 

10   Panepinto on the bill.

11                SENATOR PANEPINTO:   Thank you, 

12   Senator DeFrancisco.  

13                I'll be voting aye on the capital 

14   spending bill, but I'm disappointed that the 

15   Governor and the Senate Republicans didn't 

16   consider the five-year programs that SUNY and 

17   CUNY wanted or the five-year DOT appropriation.

18                But all in all, the capital budget, 

19   you know, looks like it's moving forward, and I'm 

20   a yes on it.

21                ACTING PRESIDENT GRIFFO:   Senator 

22   Squadron.

23                SENATOR SQUADRON:   Thank you, 

24   Mr. President.  If the sponsor, having taken a 

25   brief rest, would yield.


                                                               1672

 1                ACTING PRESIDENT GRIFFO:   The 

 2   sponsor yields.

 3                SENATOR DeFRANCISCO:   Rest won't 

 4   help me here, but go ahead.

 5                (Laughter.)

 6                SENATOR SQUADRON:   Thank you very 

 7   much.  It's a marathon, not a sprint, Senator.  

 8                As Senator Espaillat talked about, 

 9   I'm also pleased to see the NYCHA amount.  I 

10   noticed you had said it was $100 million, through 

11   you, Mr. President.  Which, you know, is no small 

12   amount.  

13                I wanted to ask on page 748 of this 

14   bill, I see $150 million, at the top of that 

15   page, for severe weather.  And I just wanted to 

16   know what --

17                SENATOR DeFRANCISCO:   We just 

18   discussed that.  That was the last question I 

19   answered.

20                SENATOR SQUADRON:   Yes.  Fifty 

21   million for trucks, I heard about that.

22                SENATOR DeFRANCISCO:   Fifty million 

23   for trucks.  And these have great emission 

24   systems, because they're new.

25                (Laughter.)


                                                               1673

 1                SENATOR DeFRANCISCO:   And then 

 2   $60 million for equipment for police, and 

 3   40 million for something else.  Counterterrorism.

 4                SENATOR SQUADRON:   Thank you.  So 

 5   if the sponsor would continue to yield.

 6                SENATOR DeFRANCISCO:   Yes.

 7                ACTING PRESIDENT GRIFFO:   The 

 8   sponsor yields.

 9                SENATOR SQUADRON:   So is there 

10   another part of this bill that has a weather 

11   system -- weather detection system, as was at 

12   some point under discussion in this budget?

13                SENATOR DeFRANCISCO:   No, it's -- 

14   it's -- I don't know why it was termed "weather 

15   detection."  But of the three components, what 

16   it's earmarked for.  Well, "earmarked" is a bad 

17   word.  What it's programmed for.

18                SENATOR SQUADRON:   Thank you.  If 

19   the sponsor would continue to yield.

20                ACTING PRESIDENT GRIFFO:   The 

21   sponsor yields.

22                SENATOR DeFRANCISCO:   Yes.

23                SENATOR SQUADRON:   If the sponsor 

24   would go to the part of the budget that 

25   appropriates capital for the MTA.


                                                               1674

 1                SENATOR DeFRANCISCO:   Okay.

 2                SENATOR SQUADRON:   What's the total 

 3   amount of capital appropriated for the MTA?

 4                SENATOR DeFRANCISCO:   Okay, the 

 5   total amount is -- well, the $750 million for 

 6   general capital needs, and $250 million for 

 7   Penn Station access.

 8                SENATOR SQUADRON:   And is the total 

 9   amount -- if the sponsor would continue to yield.

10                SENATOR DeFRANCISCO:   One billion.

11                SENATOR SQUADRON:   If the sponsor 

12   would continue to yield --

13                SENATOR DeFRANCISCO:   Yes.

14                SENATOR SQUADRON:   -- is the total 

15   amount -- how much less than the Governor 

16   proposed is the total amount?

17                SENATOR DeFRANCISCO:   I don't 

18   believe we reduced it.  But I may be wrong.

19                SENATOR SQUADRON:   If the sponsor 

20   would continue to yield.

21                ACTING PRESIDENT GRIFFO:   The 

22   sponsor yields.

23                SENATOR SQUADRON:   I believe 

24   there's a reduction of $150 million from the 

25   Governor's proposal?  Forgive me.


                                                               1675

 1                SENATOR DeFRANCISCO:   No, that 

 2   $150 million was not an MTA capital money.

 3                SENATOR SQUADRON:   For 

 4   transit-oriented development?  

 5                SENATOR DeFRANCISCO:   Transit- 

 6   oriented development.  Does that go to the MTA?

 7                That was specifically for parking 

 8   garages, I'm being told.  And that money is -- so 

 9   that's still in the budget, along with the other 

10   billion.   (Conferring off the record.)

11                That's correct, but I'm told that 

12   the ultimate budget didn't limit it to parking 

13   garages, as the Governor had in his budget.  

14   There was broader language that it could be used 

15   for other capital projects.

16                SENATOR SQUADRON:   If the sponsor 

17   would continue to yield.  My understanding is it 

18   was for parking garages around Long Island 

19   Railroad stations in particular.  And if I 

20   understand the sponsor, it does exist elsewhere 

21   in this budget in this bill, or in another bill, 

22   and if so -- well, in any case, where?  In any 

23   case, where, I think is the form of the question.

24                SENATOR DeFRANCISCO:   The 150 is 

25   still there, but it's just a language change.  


                                                               1676

 1   It's in this bill, correct?  Yes.

 2                SENATOR SQUADRON:   If the sponsor 

 3   would continue to yield.

 4                ACTING PRESIDENT GRIFFO:   The 

 5   sponsor yields.

 6                SENATOR SQUADRON:   Thank you.  So 

 7   the language changed and the location changed, 

 8   but the appropriation is the same?  

 9                SENATOR DeFRANCISCO:   The 

10   appropriation is the same.  The language was 

11   broadened so the MTA was not limited to garages.  

12                It's under "Special Infrastructure."  

13   We can give you the correct page.

14                SENATOR SQUADRON:   If the sponsor 

15   would continue to yield.  So is it still for 

16   MTA-related projects?  

17                SENATOR DeFRANCISCO:   Yes, but it 

18   gives MTA more discretion.

19                SENATOR SQUADRON:   Okay.

20                SENATOR DeFRANCISCO:   I don't know 

21   how I can explain it --

22                SENATOR SQUADRON:   No, no, thank 

23   you.  I appreciate that.

24                We're figuring out an understanding.  

25   Sometimes these questions and answers are a 


                                                               1677

 1   public opportunity, sometimes they're an 

 2   opportunity to understand a bill that is fresh in 

 3   our minds, and this is the latter case.  

 4                If the sponsor would continue to 

 5   yield.

 6                SENATOR DeFRANCISCO:   Okay.  

 7                ACTING PRESIDENT GRIFFO:   The 

 8   sponsor yields.

 9                SENATOR SQUADRON:   So in total, 

10   what will be the annual deficit to the current 

11   proposed MTA capital plan after this budget is 

12   passed?

13                SENATOR DeFRANCISCO:   I'm being 

14   told there's no current plan by the MTA.

15                SENATOR SQUADRON:   If the sponsor 

16   would continue to yield.

17                SENATOR DeFRANCISCO:   As far as 

18   what their actual deficit is, as we sit here 

19   today?  There's no plan as far as how they're 

20   going to --

21                SENATOR SQUADRON:   Just a 

22   clarification of the question.  I said the 

23   proposed plan.

24                SENATOR DeFRANCISCO:   The Executive 

25   did not accept the plan, and it was never 


                                                               1678

 1   implemented.  It was vetoed in a prior bill.

 2                SENATOR SQUADRON:   If the sponsor 

 3   would continue to yield.

 4                SENATOR DeFRANCISCO:   Yes.

 5                SENATOR SQUADRON:   Does the sponsor 

 6   know the sort of rule of thumb for fare hikes or 

 7   toll hikes, for that matter, in relation to 

 8   capital deficits?

 9                SENATOR DeFRANCISCO:   I don't know 

10   what the rule of thumb is on just about anything.  

11   We try to be -- you know, we try to have specific 

12   lines and specific dollar amounts that are in the 

13   budget.  But as far as a rule of thumb by 

14   whatever agency or whatever thumb is being used, 

15   I don't know.  We act with more precision here.

16                (Laughter.)

17                SENATOR SQUADRON:   If the sponsor 

18   would continue to yield.

19                ACTING PRESIDENT GRIFFO:   The 

20   sponsor will yield.

21                SENATOR DeFRANCISCO:   Yes.

22                SENATOR SQUADRON:   Is it 

23   sufficiently precise to say that you would have a 

24   1 percent toll or fare increase for every billion 

25   dollars in capital deficit?  


                                                               1679

 1                SENATOR DeFRANCISCO:   I don't know.  

 2   I have no idea.  But we have the same problem in 

 3   upstate transit, and it was a real fight to get 

 4   capital and operating.  So it's not limited to 

 5   the MTA.

 6                Unfortunately, we can't get 

 7   everything we want when we want it.  So it may 

 8   not be all that's needed, but we're suffering the 

 9   same thing throughout the state.  We do the best 

10   we can.

11                SENATOR SQUADRON:   If the sponsor 

12   would continue to yield.

13                SENATOR DeFRANCISCO:   Yes.

14                ACTING PRESIDENT GRIFFO:   The 

15   sponsor yields.

16                SENATOR SQUADRON:   I was pleased to 

17   see, in fact, an increase in capital funds for 

18   the other transit systems in the state.  

19                And also just to -- not to look 

20   backwards, but to look forwards, last evening we 

21   also discussed there being no operating increase 

22   for upstate transit, but I think there was in 

23   fact a 5 or 10 percent increase in operating as 

24   well.  So those increases are appropriate and, as 

25   the sponsor says, probably insufficient.


                                                               1680

 1                Is it the sponsor's view that the 

 2   upstate transit system should get a higher 

 3   increase than the MTA or that they should be 

 4   proportional?  

 5                SENATOR DeFRANCISCO:   No, I think 

 6   everybody should be treated in the same 

 7   proportional way, unless there's like a hospital 

 8   in Brooklyn that keeps getting more money every 

 9   year to operate.  There's some emergency 

10   situations that last for years and years and 

11   years; sometimes you've got to bite the bullet 

12   and pay for those.

13                But as far as upstate New York is 

14   concerned, in the Governor's budget there was no 

15   operating or capital increase until the 

16   Legislature got involved.

17                So -- but we should do it as 

18   proportional as we can unless there's an 

19   emergency situation.

20                SENATOR SQUADRON:   If the sponsor 

21   would continue to yield.

22                SENATOR DeFRANCISCO:   Yes.

23                ACTING PRESIDENT GRIFFO:   The 

24   sponsor yields.

25                SENATOR SQUADRON:   Just a final 


                                                               1681

 1   question.  

 2                I notice that in the $100 million 

 3   for NYCHA, that I think is important and is the 

 4   reason I'm going to be voting for this bill that 

 5   Senator Espaillat and you discussed previously, 

 6   how many different agencies need to be involved 

 7   before that money is actually released for NYCHA 

 8   to use to fix its roofs and begin to keep itself 

 9   in a state of good repair?

10                SENATOR DeFRANCISCO:   I'm getting 

11   the answer, I hope.  (Conferring off the record.)

12                HCR proposes a plan in conjunction 

13   with the City of New York and the Department of 

14   Transportation -- excuse me.  DHCR establishes a 

15   plan in consultation with NYCHA and it's approved 

16   by the Department of Budget.

17                SENATOR SQUADRON:   If the sponsor 

18   would continue to yield.  

19                And DASNY as well, and the Dormitory 

20   Authority as well, actually disburses the 

21   dollars; is that correct?  With the Department of 

22   Budget circling back in there at the end.  

23                SENATOR DeFRANCISCO:   Okay, I 

24   agree.

25                SENATOR SQUADRON:   Thank you.


                                                               1682

 1                On the bill.

 2                ACTING PRESIDENT GRIFFO:   Senator 

 3   Squadron on the bill.

 4                SENATOR SQUADRON:   Look, we talked 

 5   about three different issues here.  The issue 

 6   that Senator Panepinto raised for the 

 7   $150 million that I appreciate the description of 

 8   by the sponsor but is not described in any detail 

 9   in the budget, we've had many different answers 

10   over the last couple of months on what's 

11   happening with that $150 million.  We have 

12   $100 million for the New York City Housing 

13   Authority.  And we have $150 million for the MTA 

14   that has disappeared but I'm being told is still 

15   there for the MTA.  

16                These three dollar amounts seem 

17   unrelated.  But when you look at it and when you 

18   look at some of the priorities, I think it's 

19   important to raise the question why is it that 

20   the New York City Housing Authority, the largest 

21   public landlord in this state by a long shot, 

22   needs to struggle for any dollars -- and again, 

23   $100 million is a big step forwards from where 

24   we've been, and that has to be acknowledged -- 

25   but then needs a five-agency process to access 


                                                               1683

 1   that money?  

 2                Why is it that the MTA and the 

 3   upstate transit authorities, for that matter, 

 4   need to struggle and beg for every dollar and 

 5   have $150 million disappear, have at best a 

 6   vagueness of the consequences of underfunding 

 7   their capital plan, when these transit agencies 

 8   and the MTA in particular are the lifeline for 

 9   economies in every single city in our state and 

10   in the entire downstate region, not just in 

11   New York City, from Suffolk County to 

12   Nassau County through the five boroughs, through 

13   Westchester and Rockland?  

14                At the same time that $150 million 

15   that have the words "severe weather," have the 

16   word "terrorism" -- all very important.  You 

17   don't need to tell me, as a representative of 

18   Lower Manhattan, how important these issues are, 

19   either of them -- just kind of goes through and 

20   we get a description.  And again, I appreciate we 

21   got some sort of description here at the eleventh 

22   hour.  

23                I really do think that there's 

24   something wrong with this budget process.  We 

25   need more transparency in the process.  We should 


                                                               1684

 1   have closed the tables down.  We should have had 

 2   more representation in the so-called room when it 

 3   was being negotiated.  Because we know that we 

 4   need to fix NYCHA.  That's a critical thing for 

 5   more than 400,000 New Yorkers; it is their home.  

 6   We know we need to fix the MTA capital plan, we 

 7   need our buses and subways and our upstate 

 8   transit systems running, kept in a state of good 

 9   repair and expanded.  

10                And we certainly need to do a lot to 

11   prepare for severe weather and terrorism, but we 

12   need to do it in a way where we understand as a 

13   Legislature, all 63 of us in the Senate, what it 

14   is we're doing and why it's money well-spent.  

15                I will be voting yes on this bill.  

16   I do support the funding that is in here for the 

17   MTA.  I do support the funding that's in here for 

18   NYCHA; that is a big step forward in Albany by 

19   any measure.  But I do wish that we had a 

20   different process to get here.  

21                Thank you, Mr. President.  

22                ACTING PRESIDENT GRIFFO:   Senator 

23   Panepinto.

24                SENATOR PANEPINTO:   Mr. Speaker, 

25   would the sponsor kindly yield to one more 


                                                               1685

 1   question from me?  

 2                ACTING PRESIDENT GRIFFO:   Senator 

 3   DeFrancisco, will you yield to a question from 

 4   Senator Panepinto?  

 5                SENATOR DeFRANCISCO:   Yes.

 6                ACTING PRESIDENT GRIFFO:   He does.

 7                SENATOR PANEPINTO:   Senator, you 

 8   told me that the $400 million in the economic 

 9   development was available to Buffalo.  I've got 

10   in front of me the bill language, and it says -- 

11   it references the $400 million and says the funds 

12   shall not be available from this appropriation 

13   for projects within regions that are eligible to 

14   receive funding from the Upstate Revitalization 

15   Initiative or the Buffalo Regional Innovation 

16   Cluster program.

17                What's the Buffalo Innovation 

18   Regional Cluster program that exempts us from the 

19   $400 million in funding?

20                SENATOR DeFRANCISCO:   It's 

21   $400 million.  We talked about the competition; 

22   that's understood.  It's another pot of money for 

23   Western New York that is not included in the 

24   additional Buffalo Billion.  

25                So I guess you could say that it's 


                                                               1686

 1   -- correct me if I'm wrong -- that the 400 -- you 

 2   don't have the full billion yet, if I'm not 

 3   mistaken.

 4                SENATOR PANEPINTO:   That's correct.

 5                SENATOR DeFRANCISCO:   And you're 

 6   short maybe a few hundred million, right? 

 7                So I think this could be used in 

 8   support of those projects not otherwise -- not 

 9   otherwise started towards the -- to use it 

10   towards the Buffalo Billion, but not on projects 

11   that have already been accounted for.  

12                (Conferring off the record.)

13                SENATOR PANEPINTO:   Mr. President, 

14   I'm not sure if we're still formulating an answer 

15   or --

16                ACTING PRESIDENT GRIFFO:   Yes, we 

17   are, Senator Panepinto.

18                SENATOR PANEPINTO:   Okay, I wasn't 

19   sure.

20                ACTING PRESIDENT GRIFFO:   Be 

21   patient.

22                SENATOR DeFRANCISCO:   We're still 

23   forming an answer.  And it will come out when 

24   it's percolated.

25                ACTING PRESIDENT GRIFFO:   Senator 


                                                               1687

 1   DeFrancisco.

 2                SENATOR DeFRANCISCO:   All right, I 

 3   misspoke before, you're absolutely right.  

 4                There's seven regions that are 

 5   eligible, three that are not:  Buffalo, because 

 6   they got the Buffalo Billion, Long Island, and 

 7   New York City.  So the $400 million is basically 

 8   available to Long Island and New York City, if 

 9   I'm not mistaken.  Yes, that's the way it is.  I 

10   misspoke before.

11                SENATOR PANEPINTO:   Thank you very 

12   much.

13                ACTING PRESIDENT GRIFFO:   Thank 

14   you, Senator Panepinto.

15                Senator Klein.

16                SENATOR KLEIN:   Thank you, 

17   Mr. President.

18                I don't have any questions for the 

19   sponsor, I just wanted to highlight --

20                ACTING PRESIDENT GRIFFO:   Senator 

21   Klein on the bill.

22                SENATOR KLEIN:   -- two important 

23   pieces of the capital portion of the budget.  

24                Certainly I do want to thank my 

25   colleague Senator Adriano Espaillat for his 


                                                               1688

 1   advocacy on behalf of the Housing Authority.  

 2                But I also want to make it clear 

 3   that this is the first time since 1998 that the 

 4   State of New York in our budget has ever given 

 5   any money to the New York City Housing Authority.  

 6   And I really want to thank any colleagues in the 

 7   Republican Conference, especially Senator Skelos, 

 8   for joining us in really making this happen.

 9                Clearly this was not something that 

10   was in the Governor's proposed budget, this was 

11   $50 million that came from the Assembly and this 

12   is $50 million that came from the State Senate 

13   from last year's JPMorgan settlement.  

14                Again, I think this is a very 

15   important down payment on that money.  And I 

16   think by having DHCR and these other agencies 

17   provide oversight, I think it's important.

18                I really unfortunately do not have 

19   faith that the New York City Housing Authority 

20   can actually make these repairs and make them on 

21   their own in a timely fashion.  I'm not saying 

22   that the new NYCHA chair isn't working very hard 

23   and isn't very qualified.  But I think everyone 

24   knows that NYCHA has a history of really ignoring 

25   these repairs, not making them in a timely 


                                                               1689

 1   fashion, and the tenants are the ones that 

 2   suffer.

 3                Myself and some of my colleagues in 

 4   this room put out a report a couple of months ago 

 5   which actually, according to investigations in 

 6   really the entire City of New York of NYCHA 

 7   units, we found leaky ceilings, roofs that needed 

 8   repairs for probably over the last 10 years, 

 9   intercom systems, dangerous conditions in 

10   hallways -- where NYCHA can very well be 

11   considered the worst landlord in the City of 

12   New York.  

13                So I think the oversight that we're 

14   going to provide under this budget bill I think 

15   is something that is important.  I think 

16   certainly the eyes of the state are looking to 

17   see to make sure that this hundred million 

18   dollars gets to the NYCHA developments and 

19   actually goes in the form of repairs -- it's 

20   something that's very important.  

21                The other piece that I want to 

22   highlight is something that I think is again 

23   something very important, something that I 

24   advocated for for quite some time.  It's the 

25   $250 million for the MTA for the Metro-North 


                                                               1690

 1   Railroad access to Penn Station in my home county 

 2   of the Bronx.  

 3                Myself and the borough president, 

 4   Ruben Díaz, Jr., three years ago put out a study 

 5   where we advocated for these stations.  This is 

 6   truly going to be a game-changer for the 

 7   communities in the Bronx that actually are going 

 8   to be home to these Metro-North stations.  One is 

 9   going to be in Co-op City, one is going to be in 

10   Parkchester, one is going to be in Hunts Point, 

11   and one in Morris Park.  

12                One of the problems that these 

13   communities all shared over the years is that in 

14   order to get into Manhattan to go to work or just 

15   leisure, or even to go in the reverse direction 

16   to Westchester or Connecticut, it was probably a 

17   one-hour commute.  You know, clearly that's not 

18   causing a community for people to want to live 

19   there or be able to even get a job in Manhattan 

20   or other places.  

21                When these Metro-North stations are 

22   up and running, the commute is now going to be 19 

23   to 20 minutes -- 19 to 20 minutes, they'll be 

24   able to get to Penn Station.  This is going to 

25   not only change the economic climate in the 


                                                               1691

 1   Bronx, but also really benefit these communities.  

 2                So this is not only a very, very 

 3   important transportation project that we've been 

 4   advocating for for a long time, but it's an 

 5   important economic development tool as well.  So 

 6   of course I'm going to vote yes on this capital 

 7   portion of the budget.  

 8                Thank you.  

 9                ACTING PRESIDENT GRIFFO:   Seeing 

10   and hearing no other Senator that wishes to be 

11   heard -- Senator Dilan.

12                SENATOR DILAN:   Yes, I would like 

13   to ask the sponsor questions.

14                ACTING PRESIDENT GRIFFO:   Senator 

15   DeFrancisco, do you yield to Senator Dilan?  

16                SENATOR DeFRANCISCO:   Yes.

17                SENATOR DILAN:   Through you, sir, 

18   with respect to DOT and MTA, I know in previous 

19   years it has been the tradition of this body or 

20   of this state to vote on a capital plan.  And I 

21   believe that the capital plan for both the MTA 

22   and DOT expire this year.  

23                I would like to know if we're voting 

24   on a capital plan for MTA and DOT.  Is it a 

25   one-year plan, two-year plan, three-year plan, 


                                                               1692

 1   four-year plan or a five-year plan?  And where is 

 2   the plan?  Because I know that the MTA originally 

 3   came out with a plan of $32.5 billion, which was 

 4   immediately rejected by the commissioner of DOT, 

 5   who's a member of the Capital Review Board.  Can 

 6   you let me know what's going on with those plans, 

 7   sir?

 8                SENATOR DeFRANCISCO:   Yeah, the 

 9   Executive rejected the MTA plan because there's a 

10   $15 billion gap.  And we're not going to get to 

11   the plans during the budget process, it's going 

12   to have to be done at a later date this session, 

13   if there can be an agreement.

14                SENATOR DILAN:   So the sponsor 

15   continues?

16                ACTING PRESIDENT GRIFFO:   The 

17   sponsor yields.

18                SENATOR DILAN:   So you're telling 

19   me that we're not voting on any capital plan for 

20   MTA or DOT at this time?  

21                SENATOR DeFRANCISCO:   That is 

22   correct, because of the rejection by the Governor 

23   of a plan that was proposed by MTA that had a 

24   $15 billion gap.  

25                We all understand the need to have a 


                                                               1693

 1   plan.  But the Governor, I think rightly, wants 

 2   it to be a real plan without a gap in it that 

 3   just pushes it down the road.  So we're all 

 4   trying to work towards that goal before the end 

 5   of session.

 6                SENATOR DILAN:   So therefore that 

 7   means the budget will be late.  Thank you.

 8                ACTING PRESIDENT GRIFFO:   Thank 

 9   you, Senator Dilan.

10                Seeing and hearing no Senator that 

11   wishes to be heard, debate is closed.  The 

12   Secretary will ring the bell.

13                The Secretary will read the last 

14   section.

15                THE SECRETARY:   Section 3.  This 

16   act shall take effect immediately.

17                ACTING PRESIDENT GRIFFO:   Call the 

18   roll.

19                (The Secretary called the roll.)

20                ACTING PRESIDENT GRIFFO:   Senator 

21   Dilan to explain his vote.

22                May I have some order in the house, 

23   please.

24                SENATOR DILAN:   You know, I just 

25   rise -- I'm kind of inclined to vote no on this 


                                                               1694

 1   bill.  However, there are some good things in the 

 2   capital plan.  It does provide $100 million for 

 3   New York City Housing Authority, and I think 

 4   that's perhaps the only reason why I would vote 

 5   yes in this portion of the bill.

 6                I'm very disappointed that we do not 

 7   have a capital plan for the MTA or Department of 

 8   Transportation.  I know when the budget hearings 

 9   started, as Senator Krueger knows, in early 

10   February, we asked the commissioner of DOT for 

11   her capital plan, which she never submitted to 

12   us.  We asked her for a list of capital projects, 

13   which was never provided to this body.  I think 

14   that that's a total disrespect to the legislative 

15   process that we do not have a list of projects 

16   for DOT.  

17                And the fact that at least the MTA 

18   did do due diligence by providing their five-year 

19   plan, which was immediately rejected by the 

20   Capital Review Board, perhaps at the urging of 

21   the second floor -- I'm just very disappointed 

22   with the process that we are following here.  

23                But I am voting yes --

24                ACTING PRESIDENT GRIFFO:   Excuse 

25   me, could I have some order in the chamber, 


                                                               1695

 1   please.  

 2                Senator Dilan.

 3                SENATOR DILAN:   I am voting yes, 

 4   but I think that the public just needs to know 

 5   that there's something definitely wrong with the 

 6   process.  When we as a Legislature cannot put 

 7   together a five-year plan with sufficient time to 

 8   do it, there is just something that is definitely 

 9   broken here.

10                Thank you.

11                ACTING PRESIDENT GRIFFO:   Senator 

12   Dilan, how do you vote?  

13                SENATOR DILAN:   I vote aye.

14                ACTING PRESIDENT GRIFFO:   Senator 

15   Dilan to be recorded in the affirmative.

16                Announce the results.

17                THE SECRETARY:   Ayes, 60.  Nays, 2.  

18   Senators Parker and Perkins recorded in the 

19   negative.

20                ACTING PRESIDENT GRIFFO:   The bill 

21   is passed.

22                Senator LaValle.

23                SENATOR LaVALLE:   Mr. President, 

24   once again on Supplemental Calendar Number 28A, 

25   can we have the noncontroversial reading of 


                                                               1696

 1   Calendar Number 318.

 2                ACTING PRESIDENT GRIFFO:   We will 

 3   have, on the supplemental calendar, Calendar 

 4   Number 318 read.  The Secretary will read.

 5                THE SECRETARY:   Calendar Number 

 6   318, Senate Budget Bill, Senate Print 4611, 

 7   Concurrent Resolution of the Senate and Assembly.

 8                ACTING PRESIDENT GRIFFO:   Call the 

 9   roll on the resolution.

10                (The Secretary called the roll.)

11                ACTING PRESIDENT GRIFFO:   Senator 

12   Hamilton to explain his vote.

13                SENATOR HAMILTON:   Thank you, 

14   Mr. President.

15                I believe that if someone does 

16   commit a crime, a felony, they should pay for 

17   their crime.  But personally for myself, I have a 

18   30-year pension already in place.  And I don't 

19   perceive myself committing a felony, but we do 

20   have overzealous prosecutors who do go after 

21   elected officials for some other reason.  And it 

22   doesn't apply to everybody, and that's why I'm 

23   voting no on it.  

24                And also the next reason why I'm 

25   voting no is for families, especially children 


                                                               1697

 1   and wives and significant others who depend on 

 2   pensions.  Especially for mothers who were home 

 3   caretakers of their children for most of their 

 4   life, I just wouldn't want to see them adversely 

 5   affected by any bad deeds of anyone.

 6                So I just want to record the vote 

 7   that I believe that a penalty should be applied 

 8   to someone who commits a felony, but I don't 

 9   think the family members should be jeopardized in 

10   having income for living from the pension.  So I 

11   think the pension is a property right that should 

12   not be taken away for bad deeds of anyone.

13                Thank you very much.

14                ACTING PRESIDENT GRIFFO:   Senator 

15   Hamilton to be recorded in the negative.

16                Some order in the house, please.

17                Senator Hassell-Thompson to explain 

18   her vote.

19                SENATOR HASSELL-THOMPSON:   Thank 

20   you, Mr. President.  I rise to explain my vote.  

21                You know, I have some real 

22   difficulty with this bill.  And I certainly am 

23   one who believes that people ought to serve time, 

24   do whatever's appropriate if they commit a crime.

25                But I think it's unconscionable for 


                                                               1698

 1   us to sit here and talk about people who pay into 

 2   their pension program and then you decide that 

 3   the money that they have put in, you're going to 

 4   take it back.

 5                If you're in Tier 1, I can 

 6   understand that, because those who were fortunate 

 7   enough to have been in Tier 1, the state paid 

 8   that pension.  But for those who have been in the 

 9   pension plan from Tier 3 on, the majority of that 

10   money is their money.  

11                Therefore, I will never in this 

12   chamber vote to remove a pension as a part of the 

13   penalty.  I vote no.

14                ACTING PRESIDENT GRIFFO:   Senator 

15   Hassell-Thompson to be recorded in the negative.  

16                Announce the results.

17                THE SECRETARY:   In relation to 

18   Calendar 318, those recorded in the negative are 

19   Senators Comrie, Dilan, Hamilton, 

20   Hassell-Thompson, Montgomery, Parker, Peralta, 

21   Perkins, Sanders and Savino.

22                Ayes, 52.  Nays, 10.

23                ACTING PRESIDENT GRIFFO:   The 

24   resolution is adopted.

25                Senator LaValle, that completes the 


                                                               1699

 1   reading of both the noncontroversial and 

 2   controversial calendars before the house.

 3                SENATOR LaVALLE:   Mr. President.

 4                ACTING PRESIDENT GRIFFO:   Senator 

 5   LaValle.

 6                SENATOR LaVALLE:   I'd like to call 

 7   an immediate meeting of the Finance Committee in 

 8   Room 332.

 9                ACTING PRESIDENT GRIFFO:   There 

10   will be an immediate meeting of the 

11   Finance Committee in Room 332.

12                The Senate will stand temporarily at 

13   ease.

14                (Whereupon, the Senate stood at ease 

15   at 6:30 p.m.)

16                (Whereupon, the Senate reconvened at 

17   6:56 p.m.)

18                ACTING PRESIDENT GRIFFO:   The 

19   Senate will come to order.

20                Senator LaValle.

21                SENATOR LaVALLE:   Thank you, 

22   Mr. President.

23                Can we return to the reports of 

24   standing committees for the report --

25                ACTING PRESIDENT GRIFFO:   We are 


                                                               1700

 1   returning to reports of standing committees.

 2                Senator LaValle.

 3                SENATOR LaVALLE:   I believe there's 

 4   a report of the Finance Committee at the desk.  

 5   May we please have it read at this time.

 6                ACTING PRESIDENT GRIFFO:   There is 

 7   a report of the Finance Committee at the desk.  

 8                The Secretary will read. 

 9                THE SECRETARY:   Senator 

10   DeFrancisco, from the Committee on Finance, 

11   reports the following bills:  

12                Senate Print 2006B, Senate Budget 

13   Bill, enacts into law major components; 

14                Senate 4612A, Senate Budget Bill, an 

15   act to amend a chapter of the Laws of 2015.  

16                 Both bills reported direct to third 

17   reading.

18                ACTING PRESIDENT GRIFFO:   Senator 

19   LaValle.

20                SENATOR LaVALLE:   Mr. President, I 

21   move we accept the report of the Finance 

22   Committee.   

23                ACTING PRESIDENT GRIFFO:   The 

24   question is on accepting the Finance Committee 

25   report before the house.  All in favor signify by 


                                                               1701

 1   saying aye.

 2                (Response of "Aye.")

 3                ACTING PRESIDENT GRIFFO:   Opposed?  

 4                (No response.)

 5                ACTING PRESIDENT GRIFFO:   The 

 6   report of the Finance Committee is accepted and 

 7   before the house.

 8                Senator LaValle.

 9                SENATOR LaVALLE:   Mr. President, we 

10   have on our desks Senate Supplemental Calendar 

11   Number 28B.  I move we have a reading of the 

12   noncontroversial supplemental agenda, Bill 316.

13                ACTING PRESIDENT GRIFFO:   We are on 

14   Senate Supplemental Calendar 28B, and the 

15   Secretary will read Calendar Number 316.

16                THE SECRETARY:   Calendar Number 

17   316, Senate Budget Bill, Senate Print 2006B, an 

18   act to amend the Education Law.

19                SENATOR LaVALLE:   Mr. President, is 

20   there a message of necessity at the desk?  

21                ACTING PRESIDENT GRIFFO:   There is 

22   a message of necessity at the desk.

23                SENATOR LaVALLE:   I move we accept 

24   the message.

25                ACTING PRESIDENT GRIFFO:   All in 


                                                               1702

 1   favor of accepting the message of necessity of 

 2   the Governor signify by saying aye.

 3                (Response of "Aye.")

 4                ACTING PRESIDENT GRIFFO:   Opposed?  

 5                (No response.)

 6                ACTING PRESIDENT GRIFFO:   The 

 7   message is accepted and the bill is before the 

 8   house.

 9                SENATOR GIANARIS:   Lay it aside.

10                ACTING PRESIDENT GRIFFO:   The bill 

11   is laid aside.

12                Senator LaValle.  

13                SENATOR LaVALLE:   Mr. President, I 

14   move we go to the controversial reading of the 

15   supplemental calendar, Number 316.

16                ACTING PRESIDENT GRIFFO:   The 

17   Secretary will ring the bell.

18                The Secretary will read.

19                THE SECRETARY:   Calendar Number 

20   316, Senate Budget Bill, Senate Print 2006B, an 

21   act to amend the Education Law.

22                ACTING PRESIDENT GRIFFO:   Senator 

23   Gianaris.

24                SENATOR GIANARIS:   Mr. President, I 

25   believe there's an amendment at the desk.  I ask 


                                                               1703

 1   that the reading of the amendment be waived and 

 2   that Senator Latimer may be heard on the 

 3   amendment.

 4                ACTING PRESIDENT GRIFFO:   Senator 

 5   Gianaris, upon review of the amendment I find 

 6   that it is not germane to the bill at hand.

 7                SENATOR GIANARIS:   That is 

 8   disappointing, Mr. President.  I would like to 

 9   appeal from that decision and ask that 

10   Senator Latimer be heard on the appeal.

11                ACTING PRESIDENT GRIFFO:   Your 

12   appeal is accepted.  

13                And, Senator Latimer, you may be 

14   heard.

15                SENATOR LATIMER:   Thank you, 

16   Mr. President.  

17                My amendment to this legislation is 

18   germane because it does maintain the same purpose 

19   and addresses the same areas of law as the 

20   underlying bill.  

21                The amendment that we've before us 

22   in the house I believe is logical action which 

23   allows for us to plan for a well-thought-out plan 

24   for teacher evaluation, done with a proper 

25   review, implementation that allows us the time 


                                                               1704

 1   necessary to involve all of the stakeholders that 

 2   should be involved in this process, and at the 

 3   same time have the school districts that have to 

 4   know what their available dollars are, because in 

 5   the course of the next few weeks they're 

 6   finalizing budgets which will go before the 

 7   voters in their various school districts in May.  

 8   That budget for the school districts is the 

 9   urgent need of the law, but the APPR program is 

10   not urgent to go in effect today or tomorrow.

11                And in fact we've just had an 

12   education in what happens when you implement 

13   something that is rushed and it's poorly 

14   administered.

15                So, Mr. President, I would argue 

16   that what this amendment does is take rationality 

17   to the process, it puts the dollars and it takes 

18   the policy and puts them on a different time 

19   frame that makes logical sense and would give the 

20   best possible opportunity for a successful 

21   result.

22                ACTING PRESIDENT GRIFFO:   Thank 

23   you, Senator Latimer.

24                The vote is on the ruling of the 

25   chair.  It's a procedural vote.  All those in 


                                                               1705

 1   favor of overruling the chair's decision signify 

 2   by saying aye.

 3                (Response of "Aye.")

 4                SENATOR GIANARIS:   Show of hands, 

 5   please. 

 6                ACTING PRESIDENT GRIFFO:   Senator 

 7   Gianaris has requested a show of hands and it is 

 8   so ordered.  

 9                Announce the results.

10                THE SECRETARY:   Ayes, 24.

11                ACTING PRESIDENT GRIFFO:   The 

12   ruling of the chair stands.

13                Senator Gianaris, why do you rise?

14                SENATOR GIANARIS:   Mr. President, I 

15   believe there's another amendment at the desk.  I 

16   ask that the reading be waived and that Senator 

17   Espaillat be heard on the amendment.

18                ACTING PRESIDENT GRIFFO:   Senator 

19   Gianaris, upon reviewing the amendment that has 

20   been proposed before the desk, we rule that it is 

21   not germane and therefore out of order.

22                SENATOR GIANARIS:   I would like to 

23   appeal that decision, Mr. President, and ask that 

24   Senator Espaillat be heard on the appeal.

25                ACTING PRESIDENT GRIFFO:   The 


                                                               1706

 1   appeal is accepted and, Senator Espaillat, you 

 2   may be heard.

 3                SENATOR ESPAILLAT:   Thank you, 

 4   Mr. President.  

 5                My amendment to this legislation is 

 6   germane because it does maintain the purpose and 

 7   addresses the same areas of the law as the 

 8   underlying bill.

 9                Families are struggling throughout 

10   the state because the national government has 

11   failed to raise the federal minimum wage to keep 

12   pace with inflation.  

13                In 1938, FDR -- as we have been 

14   referring to the New Deal in this past two 

15   days -- signed the first federal minimum wage 

16   law, the Fair Labor Standards Act, with a 

17   25-cent-per-hour wage floor and a 

18   44-hour-work-week ceiling for most employees.  In 

19   the depths of the Great Depression, this 

20   legislation lifted families out of poverty.  

21                The national government has failed 

22   to increase the federal minimum wage enough to 

23   keep pace with inflation, and families are once 

24   again struggling throughout the state.  In 

25   New York City, one in three rental households 


                                                               1707

 1   spend more than 50 percent on rent and utilities, 

 2   and are considered severely rent-burdened.  One 

 3   in five city residents are recipients of SNAP, 

 4   and over 1.9 million people, one in three New 

 5   York City residents, struggle to afford food.  

 6                This is due to the skyrocketing cost 

 7   of living in our state while wages have 

 8   stagnated, having a serious and detrimental 

 9   impact on working-class New Yorkers.  

10                Raising the minimum wage will help 

11   boost economic activity, propelling our economy 

12   forward.  This amendment will raise the base 

13   statewide minimum wage to $10.50 on and after 

14   January 1, 2016, and index it to a real consumer 

15   price index.

16                Now, Mr. President, there are 

17   several states, many that have already passed 

18   legislation upping the minimum wage above what we 

19   have it at right now:  Alaska has enacted 

20   legislation for $9.75 effective January 1, 2016.  

21   California at $10, effective January 1, 2016.  

22   Connecticut at $9.60 on 1/16 and $10.10 on 1/17.  

23   Hawaii, $8.50, 1/16, $9.25 on 1/17.  

24   Massachusetts at $10 in January 2016 and $11.00 

25   in January 2017.  Michigan at $9.25 in January 


                                                               1708

 1   2018.  And so forth.

 2                So we are far behind.  This 

 3   amendment will raise the base statewide minimum 

 4   wage to $10.50 on and after January 1, 2016.  

 5                It would also allow cities and 

 6   counties to raise their minimum wage up to 

 7   30 percent higher than the state.  We know that 

 8   the cost of living varies across the state.  The 

 9   cost of living in Midtown Manhattan is not the 

10   same as the cost of living in Syracuse.  The cost 

11   of living in the Bronx is not the same cost of 

12   living as in Scarsdale, New York.

13                There are varied costs of living 

14   across the state, the economies are regionally 

15   motivated, and we must have the ability to 

16   address those needs.  

17                We must act as FDR 77 years ago and 

18   reinstate a livable wage to elevate working-class 

19   families out of poverty.  

20                Thank you, Mr. President.

21                ACTING PRESIDENT GRIFFO:   Thank 

22   you, Senator Espaillat.

23                The vote will be on the procedures 

24   of the house.  The vote before you is all those 

25   in favor of overruling the ruling of chair 


                                                               1709

 1   signify by saying aye.

 2                (Response of "Aye.")

 3                SENATOR GIANARIS:   Show of hands, 

 4   please. 

 5                ACTING PRESIDENT GRIFFO:   Senator 

 6   Gianaris has requested a hand vote, and so 

 7   ordered.

 8                Results?  

 9                THE SECRETARY:   Ayes, 25.

10                ACTING PRESIDENT GRIFFO:   The 

11   ruling of the chair stands.

12                Senator Gianaris.

13                SENATOR GIANARIS:   Hello, 

14   Mr. President.  

15                I believe there's yet another 

16   amendment at the desk.  I ask that its reading be 

17   waived and that Senator Squadron be heard on the 

18   amendment.

19                SENATOR SQUADRON:   Thank you --

20                SENATOR GIANARIS:   I have to appeal 

21   first.

22                ACTING PRESIDENT GRIFFO:   Once 

23   again, Senator Gianaris, upon review of the 

24   amendment we rule that it is not germane to the 

25   bill and therefore out of order.


                                                               1710

 1                SENATOR GIANARIS:   I would like to 

 2   appeal that decision and ask that Senator 

 3   Squadron be heard on the appeal.

 4                ACTING PRESIDENT GRIFFO:   The 

 5   appeal is accepted.  Senator Squadron, you may be 

 6   heard.

 7                SENATOR SQUADRON:   Thank you, 

 8   Mr. President.  That pause created a great deal 

 9   of excitement, so thank you.

10                (Laughter.)

11                SENATOR SQUADRON:   I believe that 

12   my amendment is germane.  It maintains the same 

13   purpose and addresses the same area of law as the 

14   underlying bill.  

15                In fact, as recently as last 

16   evening, Senator DeFrancisco talked about the 

17   fact that a provision the Governor originally put 

18   in was getting driven forward into this bill.  

19   And we do see, relative to independent 

20   expenditures, a provision in this bill that was 

21   originally linked to this very provision, which 

22   everyone in this house will be surprised to know 

23   is about closing the limited liability company 

24   loophole.  

25                The limited liability company 


                                                               1711

 1   loophole, as folks know, allows anonymous, 

 2   nontransparent, unlimited contributions from 

 3   corporations, from individuals, from any other 

 4   entity into this political system.  It is used 

 5   extensively.  You've all heard me speak about it 

 6   extensively through the course of this month.  So 

 7   I'm actually going to take this time to explain 

 8   its importance with others' words.  

 9                The New York Times said:  "For 

10   powerful politicians and the big businesses they 

11   court, getting around New York's campaign 

12   donation limits is easy, thanks to the LLC 

13   loophole."  

14                For those of you who think that the 

15   New York Times may not reflect what happens in 

16   your district, the Albany Times Union said:  

17   "Closing the LLC loophole would be an important 

18   first step in reducing the corrupting influence 

19   of money in political campaigns.  Taking this one 

20   simple bite out of corruption will force any 

21   politician who objects to explain why."  If only 

22   that were true.

23                It's not just the New York Times and 

24   the paper that covers this town.  The Syracuse 

25   Post-Standard:  "And then there's the LLC 


                                                               1712

 1   loophole that makes a mockery of campaign 

 2   contribution limits."  The Rochester D&C, 

 3   Democrat and Chronicle:  LLC stands for "limited 

 4   liability company," but in a growing number of 

 5   cases it also means "let's legally cheat."

 6                The Buffalo News:  "But the LLC 

 7   loophole lets those very officeholders" -- us -- 

 8   "bathe in a river of money given by business 

 9   interests seeking favorable treatment.  So each 

10   year the loophole lives on as a widely loathed 

11   fixture in campaign finance."  

12                The Glens Falls Post-Star:  "The 

13   difference between a legitimate campaign 

14   contribution and an outright bribe continues to 

15   be murky in Albany," in an article written about 

16   LLCs.  

17                The Plattsburgh Press-Republican in 

18   the North Country:  "Top-heavy influence in the 

19   political process" is created through the LLCs.  

20   "The average individual cannot give that kind of 

21   money, only the wealthy and powerful can.  It is, 

22   in effect, buying influence."  

23                The Middletown Times Herald Record:  

24   "Good luck following the other millions that flow 

25   through these limited liability corporations that 


                                                               1713

 1   have the ability to split up fundraising efforts 

 2   to avoid exceeding even New York's generous 

 3   limitations, and then making sure that the money 

 4   all goes to a single candidate."

 5                Not only is this amendment germane, 

 6   it is necessary.  It is necessary if we have any 

 7   hope of restoring faith in our government.  It is 

 8   necessary if the ethics reforms that have been 

 9   made such a priority this year, appropriately, 

10   are going to have any appreciable effect on the 

11   culture in this town.  And it's necessary if you 

12   believe newspapers, local newspapers across the 

13   state, these and others.

14                This is not a New York City issue,  

15   this is not an Albany issue, this is a New York 

16   State issue.  This is an issue of the validity of 

17   our government, and it is germane, as are the 

18   other provisions in this bill, including the one 

19   on independent expenditures.  And that's why I 

20   hope that my colleagues join me in overruling the 

21   ruling of the chair.  

22                Thank you, Mr. President.

23                ACTING PRESIDENT GRIFFO:   Thank 

24   you, Senator Squadron.

25                The question is again on the 


                                                               1714

 1   procedures of the house.  All those in favor of 

 2   overruling the ruling of the chair signify by 

 3   saying aye.

 4                (Response of "Aye.")

 5                ACTING PRESIDENT GRIFFO:   Opposed?  

 6                SENATOR GIANARIS:   Show of hands.

 7                ACTING PRESIDENT GRIFFO:   Senator 

 8   Gianaris has requested a show of hands.  It is so 

 9   ordered.  

10                Results?

11                THE SECRETARY:   Ayes, 24.

12                ACTING PRESIDENT GRIFFO:   The 

13   ruling of the chair stands.

14                The bill is before the house.

15                Senator Latimer.

16                SENATOR LATIMER:   Thank you, 

17   Mr. President.  Will the sponsor yield for some 

18   questions?

19                ACTING PRESIDENT GRIFFO:   Without 

20   objection, Senator DeFrancisco will yield to 

21   Senator Flanagan, chair of the Education 

22   Committee.  With unanimous consent, so ordered.

23                Senator Latimer, you may pose a 

24   question.

25                SENATOR LATIMER:   Thank you, 


                                                               1715

 1   Mr. President.  Thank you, Senator Flanagan.

 2                This bill has got a lot of things in 

 3   it.  In addition to education, it's got ethics 

 4   and brownfields and so forth.  But I want to 

 5   limit the questions to those that I know you're 

 6   very expert in and to try to understand exactly 

 7   what kind of an arrangement we have here.

 8                In the Senate one-house bill that 

 9   was passed by our house a couple of weeks ago on 

10   the Senate majority line, it was a high priority 

11   that there be full restoration of the GEA.  

12   Senator, can you tell us, in the agreement now 

13   that's been struck with the Governor and the 

14   other house, what is the percentage in the 

15   aggregate for GEA restoration?

16                SENATOR FLANAGAN:   Mr. President, 

17   through you, I am more than happy to speak to 

18   that issue, but I just want to be a little 

19   cautious, in that that's in the appropriation 

20   bill, not the Article VII bill.  

21                But the GEA, as we began this year, 

22   and in the Executive Budget, was at 

23   $1.036 billion.  Our advocacy, through the 

24   one-house budget resolution, as it has been for 

25   the last several years, was to eliminate it in 


                                                               1716

 1   its entirety.  But, Senator Latimer, you are 

 2   aware that we operate on a three-legged chair 

 3   here with the Governor, the Senate and the 

 4   Assembly, and ultimately we effectuate a 

 5   compromise.  So the change this year is that the 

 6   GEA is further reduced from $1.036 billion by 

 7   $603 million.

 8                SENATOR LATIMER:   The questions 

 9   that relate, Mr. President, to the dollars and 

10   cents of the GEA, would you prefer that they be 

11   addressed on the next bill in the Aid to 

12   Localities?

13                ACTING PRESIDENT GRIFFO:   Without 

14   objection, Senator Flanagan will answer them now.

15                SENATOR LATIMER:   Okay, I'll follow 

16   whatever direction you have.

17                Will the Senator yield for 

18   additional questions.  

19                SENATOR FLANAGAN:   Yes.

20                ACTING PRESIDENT GRIFFO:   The 

21   Senator yields.

22                SENATOR LATIMER:   Thank you, 

23   Senator.  

24                The distribution of the GEA benefits 

25   at this relative percentage, which we estimate to 


                                                               1717

 1   be about a 60 percent restoration in the 

 2   aggregate, is not equally distributed throughout 

 3   all districts at that same level.  There is a 

 4   formula for which we've seen language.

 5                Can you give us a range of the upper 

 6   end and the lower end of restoration so that we 

 7   understand, when we go back to our districts, 

 8   which districts have been restored at a high 

 9   level and which at a low level of restoration?  

10                SENATOR FLANAGAN:   Yes.  Consistent 

11   with the pattern that started with the GEA at its 

12   inception, it was $2.8 billion.  Now it's just 

13   slightly over $400 million left in the balance.  

14                And as an aside, I am terribly 

15   confident and comfortable that by the time we 

16   have this budget discussion next year, we will 

17   all be talking about the final elimination of the 

18   GEA.

19                Within the GEA structure, last year 

20   the minimum restoration that any district could 

21   have had was 29 percent.  Those would be 

22   basically your higher-wealth, essentially 

23   lower-needs districts.  But certainly every 

24   district in the State of New York has its own set 

25   of needs.  


                                                               1718

 1                We drove, over the first three 

 2   years, a significantly higher portion of 

 3   restoration to high-needs districts, which 

 4   include the City of New York, the Big Four, 

 5   high-needs rural, high-needs urban, high-needs 

 6   suburban.  But the restoration occurred at a much 

 7   more accelerated pace for districts that are, 

 8   frankly, poorer in comparison.  And we continue 

 9   that this year.

10                But I would say, Senator Latimer, 

11   there are two things that are noteworthy.  The 

12   minimum restoration now goes from 29 percent to 

13   50 percent.  So every district across the State 

14   of New York, the least amount of restoration that 

15   you would have on GEA would be 50 percent.

16                On the high end, I have to be 

17   honest, I'm not quite sure but I believe it's -- 

18   I can confidently say that it is probably around 

19   90 or north, but certainly less than a hundred.

20                Everyone in this budget still has 

21   some GEA, but the districts who are high-needs 

22   still receive the overwhelming majority of the 

23   increase in funding, GEA or otherwise.  And where 

24   there is less of a restoration on GEA, there is 

25   more of an enhancement on Foundation Aid.


                                                               1719

 1                SENATOR LATIMER:   Will the Senator 

 2   continue to yield?  

 3                SENATOR FLANAGAN:   Yes.

 4                SENATOR LATIMER:   Thank you.  

 5                In looking at the school runs that 

 6   we saw earlier today and doing some simple 

 7   mathematics, it appears that there are districts, 

 8   though, that restoration has reached only the 

 9   30 percent level.  Which means that there are 

10   some number of districts, and not just a few of 

11   them, that will still have 70 percent of the 

12   current level of GEA that is still unrestored, 

13   leaving for next year a significant amount of 

14   money that is still owed those districts.  

15                And the argument that has been made 

16   in many different venues is that this is money 

17   that we took from these districts during a time 

18   of crisis and now that the crisis is over, we 

19   should be able to restore it.  That is the 

20   rationale that the majority and you yourself have 

21   made, and I think accurately so when you made 

22   that argument.

23                So what is your sense of what kind 

24   of a time frame we could realistically look at 

25   for 100 percent restoration, given the fact that 


                                                               1720

 1   some districts only have a 30 percent restoration 

 2   this year?  

 3                SENATOR FLANAGAN:   Senator Latimer, 

 4   I would make a couple of points.  First of all, 

 5   I'll only differentiate in this regard.  I can 

 6   very clearly tell you I did not vote for the GEA.  

 7   Certainly at its inception, I voted against it at 

 8   the time.  And we are living the effects of that 

 9   enactment a number of years ago.  

10                I respectfully disagree, the minimum 

11   restoration -- and I spent a lot of time talking 

12   to our staff, and the negotiations went back and 

13   forth.  The minimum restoration is 50 percent, 

14   not 30.  If there are lower numbers for school 

15   districts, it is primarily a function of the fact 

16   that they either had lower reimbursement on 

17   expense-based aids or reductions.  

18                And let me parenthetically add while 

19   we ultimately have to come to a compromise, I can 

20   tell you unequivocally that the Assembly balked 

21   at our efforts to raise that minimum restoration 

22   to a higher number.  Again, I know we come to a 

23   negotiated compromise.  But when you are dealing 

24   back and forth, I am very, very confident and 

25   knowledgeable that the Assembly balked at exactly 


                                                               1721

 1   what you are speaking to.

 2                SENATOR LATIMER:   Will the Senator 

 3   continue to yield?  

 4                SENATOR FLANAGAN:   Yes.

 5                ACTING PRESIDENT GRIFFO:   The 

 6   Senator yields.

 7                SENATOR LATIMER:   Senator, I know, 

 8   I'm sure you fought very strong for this.  This 

 9   is a practical reason why those of us in the 

10   minority should be included in negotiations 

11   because you had, in this chamber, Democrats who 

12   supported your point of view and could give you a 

13   bipartisan argument against other Democrats who 

14   might not have shared your point of view.

15                But I would say that my 

16   understanding in reading the runs -- and I'm 

17   happy to be redirected by anybody on staff -- it 

18   seems very clear to me that in a number of cases 

19   the restoration is only at 30 percent for certain 

20   districts.  But we'll hold that off to an offline 

21   conversation rather than to trouble individuals 

22   with additional time.

23                The next question I have is 

24   regarding Foundation Aid.  In the one-house bill 

25   there was no particular reference to Foundation 


                                                               1722

 1   Aid.  What does this agreement represent, in 

 2   general terms, in terms of Foundation Aid for the 

 3   new school year?  

 4                SENATOR FLANAGAN:   Senator Latimer, 

 5   I'm going to give you a two-part answer.  I 

 6   failed to answer the second part of your previous 

 7   question.

 8                We have consistently advocated for 

 9   the elimination of GEA.  It is our hope, desire, 

10   intention, plan, strategic planning, however one 

11   may want to call it -- there is now just slightly 

12   over $400 million left in GEA.  Based on our 

13   track record, collectively, Democrats and 

14   Republicans, last year we restored $602 million, 

15   this year we got to $603 million.  I think it's 

16   very fair to say that getting the full 

17   elimination next year is something that is 

18   eminently within striking distance.

19                Now, as relates to Foundation Aid, 

20   you are accurate, in the one-house budget 

21   resolution we spoke to the elimination of GEA and 

22   an increase in general support to public schools.

23                Here, there's $427 million in 

24   Foundation Aid, $427 million additional funding 

25   in Foundation Aid over last year.  Which is, by 


                                                               1723

 1   the way, a very significant increase in 

 2   Foundation Aid vis-a-vis last year.  Last year it 

 3   was roughly 250, so this year it went from 250 to 

 4   427.

 5                SENATOR LATIMER:   Will the Senator 

 6   continue to yield?  

 7                SENATOR FLANAGAN:   Yes.

 8                SENATOR LATIMER:   Thank you.  

 9                In terms of what we've heard much 

10   about, failing schools or problem schools or 

11   target schools, whatever terminology is being 

12   used, how has the Foundation Aid been targeted to 

13   address those situations in this document, given 

14   the fact that it is identified that these are the 

15   schools that are in the greatest jeopardy?  

16                SENATOR FLANAGAN:   Senator Latimer, 

17   I would make this distinction.  I think if you 

18   look at, quote, unquote, failing schools, the sad 

19   news is that we have them.  The sadder news is 

20   that they are distributed all throughout the 

21   state, it is not just an urban problem by any 

22   stretch of the imagination.  

23                I can comfortably tell you without 

24   having any specific school district in front of 

25   me that a number of these schools get a 


                                                               1724

 1   relatively high amount of funding compared to 

 2   many other districts in the State of New York.  

 3   And I don't want that misinterpreted.  I'm not 

 4   suggesting for one moment that they don't deserve 

 5   it or that we shouldn't be looking at 

 6   opportunities to try and find ways to ameliorate 

 7   that situation.  But I'll use, respectfully, the 

 8   City of New York as an example.  

 9                You know, there are certain 

10   parameters under which we operate vis-a-vis the 

11   city and overall education funding.  It's a 

12   little different when you're driving a $9 billion 

13   check to the City of New York or thereabouts.  

14   They have a lot more latitude in terms of the 

15   fungibility of what they do within their schools 

16   right now.  

17                I've had a number of meetings with 

18   the mayor's office recently on what they call 

19   Renewal Schools.  They came up with $150 million 

20   to address some of their concerns.  I asked them 

21   where they got the money:  They made some 

22   discretionary moves at the local level, they have 

23   School Improvement Grants, they have federal 

24   funding, they have Community Schools funding.

25                So I think one of the areas where 


                                                               1725

 1   the Governor's Education Reform Commission did 

 2   some good work, very solid work, was in creating 

 3   this whole concept of Community Schools, which in 

 4   essence would allow for not only immersion during 

 5   the school day but thereafter.  So where you have 

 6   those unique set of circumstances, you have a 

 7   high index of poverty, free and reduced lunch, a 

 8   disproportionate number of ELLs or students with 

 9   disabilities.  Those are the types of things that 

10   can be addressed.  You can have a mental health 

11   worker or a social worker, a health-type person 

12   who would be available on-site, and a lot of the 

13   other districts may not have that.

14                So I believe that you could arguably 

15   and fairly say that money is driven to these 

16   districts in a higher percentage than in many 

17   other districts in the State of New York.  

18   Irrespective of what we may do in the whole 

19   concept or rubric of failing schools.

20                SENATOR LATIMER:   Thank you, 

21   Senator.  

22                Mr. President, may I continue?  This 

23   is a very deep area of the budget, so I 

24   appreciate your indulgence.  Would the Senator 

25   yield for additional questions?  


                                                               1726

 1                SENATOR FLANAGAN:   Yes.

 2                ACTING PRESIDENT GRIFFO:   The 

 3   Senator yields.

 4                SENATOR LATIMER:   Thank you, 

 5   Senator.  

 6                The CFE court case, which was 

 7   adjudicated a number of years ago, identified a 

 8   significant amount of money that was owed the 

 9   New York City school system because of the school 

10   budget formula that extended over many, many 

11   years.  And in the first two years or so after 

12   the court ruling, there were some special amounts 

13   of money that were targeted to restore that for 

14   that district.  That has stopped happening over 

15   the last few years.  

16                Can you describe how this budget 

17   treats the responsibility for CFE compliance for 

18   New York City schools?  

19                SENATOR FLANAGAN:   Well, I would 

20   say a couple of things.  

21                The CFE case at its inception 

22   certainly involved the City of New York.  And 

23   I've read all the cases -- Supreme Court, 

24   Appellate, Court of Appeals, back down and back 

25   up.  So there are a number of court cases that 


                                                               1727

 1   focused on the City of New York.  

 2                At the time, Governor Pataki and the 

 3   Legislature, both Senate and Assembly, Democrats 

 4   and Republicans, came up with steps that helped 

 5   address some of the needs or the issues raised by 

 6   the court.  

 7                As you are well aware, Foundation 

 8   Aid was the creation of Governor Spitzer at the 

 9   time, and there are differing schools of thought 

10   in terms of what was done as it relates to 

11   content.  Certainly Foundation Aid was not a 

12   New York City approach only; it was a statewide 

13   approach.  So when speaking about Foundation Aid 

14   and the City of New York, it is very important to 

15   recognize -- and I know you're aware of this -- 

16   that there are a number of districts who were the 

17   beneficiaries of the legislative outgrowth of the 

18   CFE case.

19                I will say this.  I believe that 

20   there are a number of people who would say that 

21   we have not met the commitment of CFE, and I 

22   would differentiate it and put it this way.  

23   Since Governor Cuomo became governor, in his 

24   first year in office he inherited a $10 billion 

25   deficit that he did not create.  He was charged 


                                                               1728

 1   with, as we were, with fixing the problem.  The 

 2   historical nature of the problem I'm not going to 

 3   get involved in.  I'll just say that in the first 

 4   year, everybody made difficult choices that 

 5   nobody liked making.  

 6                Since then, we have directionally 

 7   been moving in a very, very positive direction.  

 8   So if you incorporate what we have done in the 

 9   last four years, including this budget, we have 

10   added over $4.4 billion in new funding to 

11   education.  I believe -- and I respect the fact 

12   that there are those who will disagree.  I 

13   believe we are meeting our obligations to the 

14   extent that we can within existing resources and 

15   the revenues of the State of New York.

16                So there are those who constantly 

17   raise the specter that we are not spending 

18   enough.  But I know this and you know this, 

19   because we come from similar communities.  When 

20   you add up what we are spending in general 

21   support for public schools and you add in what we 

22   fund the STAR program at, we're talking about 

23   $27 billion of taxpayers' money that goes towards 

24   education and, by extension, our taxpayers and 

25   property taxpayers.  Because as you well know, 


                                                               1729

 1   the more money we drive from the State of 

 2   New York back to local districts, the less 

 3   pressure there is on the local property tax.

 4                SENATOR LATIMER:   Will the Senator 

 5   continue to yield?  

 6                SENATOR FLANAGAN:   Yes.

 7                ACTING PRESIDENT GRIFFO:   The 

 8   Senator yields.

 9                SENATOR LATIMER:   Thank you.

10                The issues I relate to CFE may be 

11   pursued by some of my colleagues who are more 

12   familiar with the impacts in their districts, so 

13   I'll hold those off except to make a correlation 

14   to the issue of the receivership proposal that 

15   the Governor put before us and then whatever is 

16   in this final plan.  

17                Can you describe, Senator, what this 

18   plan does in terms of the receivership proposal 

19   for troubled schools?

20                SENATOR FLANAGAN:   How long do you 

21   have, Senator Latimer?  

22                SENATOR LATIMER:   I think we have 

23   until 12 o'clock tonight, Senator.

24                SENATOR FLANAGAN:   Okay.  So I 

25   would say there are a couple of very important 


                                                               1730

 1   points to recognize.  And you know what?  I'm 

 2   going to take the liberty of speaking for both of 

 3   us only for a moment.

 4                I believe that one of the problems 

 5   we have is the dialogue that takes place 

 6   vis-a-vis education.  We all support education, 

 7   all of us.  We may come at it from different 

 8   angles, but we all care about kids and parents 

 9   and students, and we equally care about teachers.  

10   There's nothing more important than having a good 

11   teacher in front of the classroom.  

12                I believe one of the failures -- and 

13   I'm using that word specifically -- is the level 

14   of the dialogue.  So I'm going to take the 

15   liberty of just saying you hate the word "failing 

16   schools"; so do I.  So in this discussion I'm not 

17   calling them failing schools anymore, because I 

18   think of parents who would send their children to 

19   a school like that, the perception becomes the 

20   reality, it's a bad way to start the day and it's 

21   certainly a bad way to end the day.

22                So I think we can have a fair 

23   discussion about struggling schools, opportunity 

24   schools, renewal schools, revitalization 

25   schools -- but at the end of the day, all those 


                                                               1731

 1   schools are filled with children.  And I know you 

 2   have the same level of concern.

 3                As it relates to a receiver, there 

 4   are significant changes from what the Governor 

 5   had advocated in his original budget.  And the 

 6   schools, as defined, total 178 across the State 

 7   of New York, 91 of which are within the City of 

 8   New York.  

 9                But there is a subcategory that is 

10   amongst the most egregious by far, and I 

11   frankly -- I really don't even like having to 

12   have this discussion, because it means that we 

13   have failed in some regards in relation to these 

14   schools in particular.  There's a lot of reasons 

15   for that.  But nonetheless, there are 27 schools 

16   that fall within the most egregious category.  

17   The balance of the 151 are still in extremis, but 

18   not necessarily to the same degree.  

19                The reason I focus on that is 

20   because there are different standards and there's 

21   differentiation between and amongst what would 

22   happen in each of those schools.  There is 

23   discussions about additional funding.  There are 

24   parameters that suggest that any one of these 

25   schools, as a result of what may happen, will now 


                                                               1732

 1   become a community school, which would make them 

 2   eligible for School Improvement Grants and some 

 3   of the things I mentioned in terms of federal 

 4   funding.  So just by that alone, that may 

 5   generate additional funding for some of these 

 6   schools as defined.

 7                In the category of the 27 schools, 

 8   there is a slight distinction between the City of 

 9   New York and the rest of the state.  I believe 

10   it's fair to represent that on the whole, this is 

11   not a knee-jerk reaction, it is a fluid process 

12   that allows for some changes.  And it has a set 

13   of benchmarks that if you meet them, you can get 

14   out of that quagmire.  If you don't, there are 

15   additional points at which action can be taken 

16   either in concert with the district or in concert 

17   with SED or by SED in the most far-reaching 

18   circumstances.  

19                So in those 27 schools the mayor and 

20   the City of New York had expressed grave concern 

21   about who may be playing what fundamental roles.  

22   Therein, the chancellor would be appointed the 

23   receiver, and that would be after one year.  

24   There is a one-year window to have a turnaround 

25   plan developed at the local level and have it 


                                                               1733

 1   reviewed and potentially approved by the State 

 2   Education Department.  

 3                So I do think it's very important to 

 4   reiterate that this is not, you know, the bill 

 5   getting enacted tonight and tomorrow there's a 

 6   receiver.  I have a pretty confident feeling that 

 7   a lot of people here, and by extension in our 

 8   other house, are not really apt or desirous of 

 9   just jumping in overnight.  I think this sets a 

10   very good timetable, a solid timetable.  

11                So again, those 27 schools are under 

12   a different framework, if you will.  And the 

13   other 151 schools, they actually get a little bit 

14   more time, I think it's more of a three-year 

15   process.  

16                In the 27 and the 151, the 

17   superintendent may be appointed as the receiver.  

18   And, you know, a lot of people said, well, if the 

19   super gets in there, are they just going to 

20   ignore the school board?  I think part of this 

21   discussion would include the notion that 

22   superintendents are hired by school boards.  So I 

23   think there's probably a pretty good chance that 

24   as opposed to taking drastic measures, that there 

25   would be some middle-ground efforts to try and 


                                                               1734

 1   ameliorate these situations locally.  

 2                One thing that's very important in 

 3   both scenarios is that there is an obligation to 

 4   have a community engagement team, which would 

 5   include parents and stakeholders at the local 

 6   level.  

 7                And then, Senator Latimer, as you 

 8   are well aware, there are issues involving 

 9   negotiations, what can be done by the receiver, 

10   and can the receiver just gratuitously go in and 

11   say everyone is now unemployed.  I don't believe 

12   that to be the case.

13                So I think there are safeguards that 

14   prevent egregious action from being taken.  But 

15   nonetheless, it recognizes the situation that we 

16   find ourselves in as a state.  Because amongst 

17   those 178 schools, it is distributed equitably 

18   and geographically throughout the State of 

19   New York.

20                SENATOR LATIMER:   Will the Senator 

21   continue to yield?  

22                SENATOR FLANAGAN:   Yes.

23                ACTING PRESIDENT GRIFFO:   The 

24   Senator yields.

25                SENATOR LATIMER:   Thank you.  


                                                               1735

 1                The explanation you have given, 

 2   where will I find in the budget the language that 

 3   shows the implementation along the lines that 

 4   you've said?  The original Executive proposal was 

 5   rather harshly written and was written in a way 

 6   where an external person would come in, there was 

 7   no identification of resources of how that 

 8   external person would come in and would have the 

 9   ability to abrogate contracts and take some very 

10   bold actions.  

11                Can you point out, Senator, for our 

12   benefit how the implementation you've just 

13   described verbally is placed into reality?  

14                SENATOR FLANAGAN:   Senator Latimer, 

15   just to show you how fortunate I am, I have a 

16   tabbed bill copy here.  And I would say that a 

17   fair reading would be that it would start on 

18   page 148, under subpart H.  And given the depth 

19   of this issue, it goes on for at least several 

20   different pages.

21                SENATOR LATIMER:   Will the Senator 

22   continue to yield?

23                SENATOR FLANAGAN:   Yes.

24                ACTING PRESIDENT GRIFFO:   The 

25   Senator yields.


                                                               1736

 1                SENATOR LATIMER:   I appreciate --

 2                SENATOR FLANAGAN:   In fact, Senator 

 3   Latimer, let me just -- I would say it goes on 

 4   from page 148 till the end of the bill.

 5                SENATOR LATIMER:   Okay, very good.  

 6   Thank you, Senator.  Again, Mr. President, I 

 7   realize this is a long process of questioning, 

 8   but again this is a multiheaded issue.  So I 

 9   apologize to my colleagues and to you.  I just 

10   want to make sure we get out each of these points 

11   as best as we can.

12                The issue of the 3020-a removal 

13   procedures, Senator, that's in this bill, is 

14   there a rationale for why we have moved from a 

15   three-person panel to an individual person?  And 

16   I think the concern that we have is that a 

17   three-person panel will do a more balanced job of 

18   evaluating the situation; one person may or may 

19   not have that same approach and might tend to err 

20   on one side or other of these things.

21                SENATOR FLANAGAN:   Well, I think 

22   within the discussion of 3020-a that it's 

23   important to recognize some of the other changes 

24   that we made as well.  

25                And now, and I frankly am amazed 


                                                               1737

 1   that we even had to have a legitimate discussion 

 2   on this, if a teacher is convicted of a violent 

 3   felony offense against a child -- believe it or 

 4   not, the law did not allow for automatic removal.  

 5   However, that person's teaching certificate can 

 6   now be revoked upon that conviction.  And even in 

 7   spite of that, we still provide due process 

 8   protection for that individual, no matter how 

 9   heinous the crime may be, and they are then 

10   subject to an expedited 3020-a process.

11                Second, there are now equal 

12   standards for teachers along with everyone else.  

13   There were aspects of discovery and some of 

14   procedural aspects of these hearings which 

15   afforded the teachers a different set of rules 

16   than other similarly situated parties and, I 

17   think it's fair to say, people who would be 

18   subject to civil service Article 75 hearings like 

19   CSEA and PEF.  

20                So now there's an equal footing and 

21   the hearing officer has the opportunity to set a 

22   timetable on discovery.  That provides balance.  

23   That's something that school districts have asked 

24   for for a number of years.

25                So I think I'm going to -- and I'll 


                                                               1738

 1   get much more directly to your point.  A very 

 2   strong feeling, and I saw comments from 

 3   Assemblywoman Nolan on what she said on the 

 4   Assembly floor not too long ago, that this 

 5   effectuates a reasonable compromise.  

 6                We believe that there are due 

 7   process protections and there is also an 

 8   opportunity to streamline the process and to 

 9   provide for efficiency and potential cost savings 

10   to districts.  

11                And by the way, I think one of the 

12   things that gets overlooked -- I know we talk 

13   about things like DNA evidence.  There are many 

14   times that DNA evidence can be used to exonerate 

15   someone.  Here, a more timely process without 

16   depriving anyone of their due process rights 

17   could be beneficial to a teacher as well.

18                So I think the single hearing 

19   officer is for purposes of efficiency and an 

20   opportunity to potentially save money and still 

21   have an positive outcome.

22                SENATOR LATIMER:   Will the Senator 

23   continue to yield?  

24                SENATOR FLANAGAN:   Yes.

25                SENATOR LATIMER:   Thank you, 


                                                               1739

 1   Senator.

 2                ACTING PRESIDENT GRIFFO:   The 

 3   Senator yields.

 4                SENATOR LATIMER:   I'm concerned 

 5   that the savings of going from three hearing 

 6   officers to one hearing officer is not much of a 

 7   savings when in other parts of this budget we're 

 8   talking about adding outside consultants to come 

 9   in to do a variety of different things where we 

10   don't seem to be as worried about either the 

11   streamlining or the savings in cost savings.

12                There appears in the 3020 changes 

13   that have been made that there is a presumption 

14   of guilt on the individual.  Is that not a fair 

15   comment from your perspective?

16                SENATOR FLANAGAN:   No.

17                SENATOR LATIMER:   Because it seems 

18   that's changed -- it has changed the dynamic.

19                SENATOR FLANAGAN:   Well, I respect 

20   your opportunity to essentially say it that way, 

21   I just don't happen to agree.

22                SENATOR LATIMER:   Isn't the 

23   burden -- I'm sorry, through the president, may 

24   I -- will he continue to yield for questions?  

25                ACTING PRESIDENT GRIFFO:   The 


                                                               1740

 1   sponsor yields.

 2                SENATOR LATIMER:   Doesn't this 

 3   change the burden, Senator, to the individual to 

 4   defend themselves rather than on the organization 

 5   to prove their failure to perform in a certain 

 6   fashion?  Isn't that changed fundamentally by 

 7   this?

 8                SENATOR FLANAGAN:   Well, Senator 

 9   Latimer, I would say there are distinctions 

10   between 3020-a proceedings based on misconduct 

11   and now in 3020-b what one may define as being 

12   ineffective or incompetent.  And there are 

13   distinctions between the two of those.  So let me 

14   go back to 3020-a for a second.  

15                There is, and I just want to make -- 

16   because of the gravity of this, I want to make 

17   sure I'm saying it correctly.  Okay, we do a 

18   couple of other things which I think are 

19   important as well.  We allow for a child witness 

20   to testify through closed circuit television.  

21                Here's a good example.  We allow a 

22   school district to suspend an employee without 

23   pay who was charged with misconduct, conduct 

24   constituting physical or sexual abuse of a 

25   student.  These are very serious charges, and 


                                                               1741

 1   people recognize that.  

 2                There is a potential suspension, but 

 3   there has to be a probable cause hearing.  No one 

 4   can be suspended without pay for more than 

 5   120 days -- which, by the way, is a lesser 

 6   standard than exists in the City of New York, 

 7   which is 90 days.  

 8                So there are, I think there are a 

 9   number of continued due-process protections for 

10   anyone who is accused of either misconduct or, 

11   under the new portions of 3020-b, something that 

12   would rise to the level of incompetence.

13                So on that point, I think what 

14   you're probably more alluding to -- and I 

15   certainly don't want to speak for you -- is the 

16   concept of if you are rated ineffective on your 

17   teacher evaluations, what then are the procedures 

18   and what is the sort of the rules of engagement 

19   in terms of something like that?  

20                There's a distinction between being 

21   found ineffective twice.  There's a distinction 

22   from that and being found ineffective for three 

23   years.  Under the two-year scenario, a school 

24   district may bring the proceeding.  If you are 

25   found ineffective for three years, the school 


                                                               1742

 1   district is obligated to bring that proceeding.  

 2   And while we may debate what is ineffective, 

 3   effective, highly effective or developing, I 

 4   think it is a reasonable standard to say if 

 5   someone has been found ineffective for three 

 6   years in a row, that there should be a proceeding 

 7   brought.

 8                SENATOR LATIMER:   Mr. President, 

 9   will the Senator continue to yield?  I will try 

10   my best to wrap these questions up as quickly as 

11   I can.

12                ACTING PRESIDENT GRIFFO:   The 

13   Senator yields.

14                SENATOR LATIMER:   Thank you.  

15                Thank you, Senator.  

16                I would disagree, Senator, that I 

17   think there is a change in the presumption on the 

18   3020-a situation, so we're going to have to be in 

19   disagreement on that one.  

20                I want to touch on the last topic 

21   area -- there are many other topic areas, but in 

22   deference to your time and the time of my 

23   colleagues, I want to touch on the APPR 

24   situation.  

25                The plan that has been put before us 


                                                               1743

 1   here, isn't that a permanent acceptance of 

 2   high-stakes testing as now part and parcel of 

 3   what we're doing, instead of using this 

 4   opportunity to reevaluate, through other 

 5   stakeholders, whether or not we want to see this 

 6   high-stakes testing?  

 7                We have heard from parents in your 

 8   counties and in my counties how unhappy they are 

 9   with high-stakes testing.  There's legislation 

10   that's sponsored on your side of the aisle for 

11   opt-out information and so forth.  But yet it 

12   seems as if we are now accepting and doubling 

13   down on that by moving in this direction.  Is 

14   that a fair or unfair comment?

15                SENATOR FLANAGAN:   Senator Latimer, 

16   I do not agree.  There is language specifically 

17   relating to actions that have been taken in the 

18   past.  And I would remind everyone that 

19   collectively, we made improvements to areas of 

20   this section of the law last year.

21                So in here one of the fundamental 

22   precepts is that the whole idea has to be on how 

23   to effectively and diagnostically assess 

24   students, at the same time looking very clearly 

25   on how to reduce testing.  It's specifically 


                                                               1744

 1   written into the bill.  

 2                And I would also tell you that this 

 3   is a unique opportunity, because the stakeholders 

 4   involved, the people you reference, the beauty of 

 5   this approach is that there is a public comment 

 6   period under which the Regents would draft 

 7   regulations and the public and everyone similarly 

 8   situated -- parents, grandparents, students -- 

 9   they'd all have an opportunity for that input.  

10   And you and I both know very well there is going 

11   to be no shortage of comments.

12                SENATOR LATIMER:   Will the Senator 

13   continue to yield?

14                SENATOR FLANAGAN:   Yes.  

15                ACTING PRESIDENT GRIFFO:   The 

16   Senator yields.

17                SENATOR LATIMER:   Thank you, 

18   Senator.  

19                I would argue that what we want to 

20   have now, Senator, is we want to start with a 

21   stakeholder-based review of the process and then 

22   let the Board of Regents and then this 

23   Legislature approve whatever comes out of that 

24   process.

25                But let me ask a question in a 


                                                               1745

 1   different direction.  We have the testing that 

 2   will test students and will also be the basis for 

 3   evaluation of teachers in two basic areas:  

 4   English language and in math.  How do we assess 

 5   teachers that don't teach in either of those two 

 6   courses, based on the grades of the students in 

 7   Grades 3 to 8, when the other teachers that don't 

 8   teach in those two areas are going to be judged 

 9   by what's happening to those students in the 

10   areas which are part of the standardized testing?  

11                SENATOR FLANAGAN:   A couple of 

12   things.  

13                First of all, that is really a 

14   fundamental component of the charge that we are 

15   giving to the Board of Regents.  And we have had 

16   a multitude of people comment and significant 

17   input from all areas of the educational community 

18   on the Governor's proposal.  So there are 

19   significant changes from the Governor's original 

20   proposal.  

21                The issues that you are addressing 

22   and the concerns that you raise are not only 

23   valid but I think that they could be contemplated 

24   and acted upon in a proper and appropriate 

25   capacity through the process that is contained in 


                                                               1746

 1   this statute.

 2                SENATOR LATIMER:   Will the Senator 

 3   continue to yield?  

 4                SENATOR FLANAGAN:   Yes.

 5                ACTING PRESIDENT GRIFFO:   The 

 6   Senator yields.

 7                SENATOR LATIMER:   Thank you.  

 8                The question of the cost for outside 

 9   review.  And I understand that it is not 

10   specified in so many words exactly who will be 

11   the person doing the outside evaluation part of 

12   this.  But that really represents another 

13   mandate.  

14                And unless you can tell me 

15   otherwise, isn't that another unfunded mandate 

16   that's placed before the local districts, for 

17   them to have an outside person come in?  There 

18   will have to be some cost factor involved in 

19   that, and I don't see anything in our budget that 

20   allows additional funding so that schools can 

21   handle that additional cost.

22                SENATOR FLANAGAN:   If you look at 

23   the Governor's original proposal, one of the most 

24   overarching themes that we heard, in addition to 

25   concerns about APPR, was exactly the point that 


                                                               1747

 1   you are making.  That's why it looks nothing like 

 2   what the Governor originally proposed.  

 3                And within that framework, what we 

 4   are doing is providing SED and the Regents an 

 5   opportunity to review exactly what you're 

 6   speaking to.  It is not an outside evaluation.  

 7   It is someone who would be qualified and employed 

 8   by a school district.  It is not an outside third 

 9   party, it is someone who is already gainfully 

10   employed by that school district.  

11                And the weight of that can be 

12   nominal.  That's something that would be 

13   determined by input -- excuse me, by the Board of 

14   Regents, ultimately, with input of all the 

15   stakeholders that we are both referring to.

16                SENATOR LATIMER:   Thank you, 

17   Senator.

18                Mr. President, may I go on the bill?  

19                ACTING PRESIDENT GRIFFO:   Senator 

20   Latimer on the bill.

21                SENATOR LATIMER:   Thank you very 

22   much.  

23                And I want to thank Senator 

24   Flanagan, as always, for being an articulate and 

25   energetic spokesperson.  I enjoy these 


                                                               1748

 1   conversations, John.  And.  I hope to the extent 

 2   that we enjoy them at all, you do as well.

 3                On the bill itself, Mr. President, 

 4   we have before us a budget which we all know is a 

 5   fiscal document.  But constitutionally and by 

 6   interpretation of the courts of the State of 

 7   New York, that significant policy can be adopted 

 8   inside a fiscal document.  

 9                But I can argue what may be 

10   constitutional and what may be legal is still 

11   unwise.  We have before us a bill, as I said 

12   earlier, that marries policies on ethics, 

13   policies on brownfields with policies on 

14   education.  And there are other component pieces 

15   to this.  And that is mixing, as I said a few 

16   years ago, kumquats and peanut brittle in one 

17   single document.  That is a bad way to make 

18   change, particularly when what we are embarking 

19   on is a major change in the way we're going to 

20   deliver education in this state.

21                And I would argue that we're using 

22   the power of the purse to compel people to do 

23   something because they need the money.  That is 

24   exactly the way we got into mandatory testing, 

25   because the power of the purse was so essential 


                                                               1749

 1   to us back in 2010, when we couldn't close the 

 2   budget without federal money to help do that.

 3                Some people will call this reform.  

 4   Some people will call this wreckage.  Because we 

 5   are changing the system of educational delivery, 

 6   and we're doing it in the context of a budget and 

 7   under the threat of financial support, which 

 8   these schools desperately need.  We have put 

 9   property caps on them and, as I said earlier 

10   yesterday when I spoke about general governments, 

11   we put other mandates on them and they have very 

12   little place to go.  We limit how much funds they 

13   can accumulate from year over year to draw 

14   against.  

15                And so we now have other issues to 

16   be resolved.  I believe that all of this change 

17   on education is built on a faulty presumption, 

18   and that is the presumption that public education 

19   in New York is failing.  I do not believe that.  

20   I have districts, the majority, the vast majority 

21   of my districts in my home district -- and I 

22   understand it may not be a representative 

23   district all across the state -- which are 

24   proving every single day the validity of public 

25   education and their ability to produce a positive 


                                                               1750

 1   result for kids in a public setting.  

 2                So in those places where we are not 

 3   succeeding with public education, the question to 

 4   me is not an across-the-board wholesale 

 5   restructuring but an attention that's been long 

 6   overdue in those areas where we have problems in 

 7   public education.  

 8                And I will agree with Senator 

 9   Flanagan, we toss the word "failing" out, but it 

10   makes a connotation that's not accurate.  Because 

11   individuals rise and fall, and there are 

12   brilliant individuals in every setting and there 

13   are individuals who have to work harder in every 

14   setting.  And I think we do ourselves a 

15   disservice when we lump groups of people and we 

16   attach a word "failing" to them.  I think we are 

17   creating a self-fulfilling prophecy.  

18                It has been proven time and time 

19   again, study after study, that there is a 

20   correlation between poverty and performance.  And 

21   the poverty of the individual, the tax base of 

22   the area, since we pay for schools initially 

23   based on property tax, is the property tax wealth 

24   of a community allows for them to provide 

25   services in Community A that may not be present 


                                                               1751

 1   in Community B, and that performance follows 

 2   having those resources along with other factors 

 3   that are in here.

 4                But we are tying ourselves in this 

 5   budget now more firmly than we ever have before 

 6   to a mast on a ship, and that mast that we're 

 7   tying ourselves to is high-stakes testing.  And 

 8   you know on each side of the aisle how people are 

 9   reacting to this commitment to high-stakes 

10   testing.  There are other states in this nation 

11   that are backing off of that, that are seeking 

12   waivers to avoid having to go through with what 

13   they think could be a negative effect on their 

14   educational process.  

15                And it's not just what we talk about 

16   in teachers and administrators and school 

17   districts and school trustees, but it's the 

18   parents themselves, it's the parents that feel 

19   the loss of local control, that they can't go and 

20   have the same impact on their teachers and their 

21   administrators in the neighborhood school because 

22   the system is changing and it's creating a whole 

23   different set of priorities.

24                Now, there is a school of thought 

25   that says you go into a school and you take 


                                                               1752

 1   names, you kick butt, you find the 

 2   underperforming teachers and the underperforming 

 3   administrators and get rid of them.  

 4                Mr. President, I'm a fan of the 

 5   New York Knicks.  There hasn't been a worse year 

 6   in my life for the New York Knicks than this 

 7   year.  This year began when we fired a coach and 

 8   brought in a very expensive president, and the 

 9   results of the New York Knicks is worse today 

10   than it was a year ago.  And the reason is the 

11   New York Knicks do not have sufficient talent at 

12   this point in time to perform well enough.  

13                So you can rearrange the coach 

14   structure and the president all you want, but if 

15   you don't have enough quality players on the 

16   court, you're going to lose a lot of games.  And 

17   that is exactly what is happening.

18                And my great concern is that we're 

19   looking at the wrong things when we look at where 

20   we need to put time and attention into our 

21   situation.  The APPR system, to me, is 

22   fundamentally flawed if it doesn't begin with a 

23   bottom-up review of what will work in terms of 

24   evaluating teachers.  

25                And in the same way that we would 


                                                               1753

 1   not restructure fire services in this state and 

 2   not talk to a firefighter, that we could figure 

 3   out to how best to deliver fire services and 

 4   never talk to the people on the lines or to 

 5   vilify the firefighters.  Well, we wouldn't dream 

 6   of doing that because we see every day the 

 7   bravery of firefighters.  And when we see them 

 8   with soot on their face, there's an emotional 

 9   attachment to what they do in the public domain.  

10                But I think we have forgotten that 

11   same aspect of teaching and that every day that 

12   teachers go into those settings and they teach 

13   our children, and those of us who are ourselves 

14   products of that system that have come through 

15   the system as it has existed up to now.

16                I've used the analogy before from my 

17   business background of observing what happened in 

18   the early '80s with Coca-Cola and the 

19   introduction of New Coke.  I won't repeat that 

20   analogy, but I think it is apt.  

21                What I also think is apt is the 

22   story of Enron.  Most of us remember that Enron 

23   was a major energy company in the United States.  

24   Ken Lay, the president of it, was a friend of 

25   presidents and prominent individuals.  They had 


                                                               1754

 1   enough resources to buy the naming rights for the 

 2   Houston Astros' home park.  In fact, they used to 

 3   call it Ten-Run Field, because it was such a good 

 4   hitters' ballpark, instead of Enron Field.  

 5                But we know what happened to Enron.  

 6   They built a business model on sand.  And when it 

 7   collapsed, it collapsed thoroughly and 

 8   completely.  And there were brilliant people that 

 9   were involved in the selling and the construct of 

10   what Enron did professionally.  

11                So it has been proven time and time 

12   again that brilliant people can articulate a 

13   different vision and that vision can be wrong and 

14   that vision can fail.

15                Now, I learned math without the 

16   benefit of Common Core or the New Math.  I know 

17   how to count.  I know how many votes for this 

18   budget there's going to be in this house, and I 

19   know how many votes there are going to be in the 

20   other house.  I don't speak to persuade, I don't 

21   speak to insult anybody who's going to vote in 

22   their own way.  But in your own mind, in your own 

23   conscience, you have to be asking yourself a 

24   question:  Is this what we should be doing in the 

25   State of New York?  You have to ask it.  


                                                               1755

 1                Many of you have served in this 

 2   position or in other positions for a long time.  

 3   You don't need me to tell you to look at the 

 4   scope of what you've seen in your life.  But this 

 5   is a sea change.  We are locking it in because of 

 6   a budget and because of financial realities, and 

 7   it raises some significant questions.  And those 

 8   questions, when they get answered, may be 

 9   answered to reverse the path that we're on.  But 

10   if that reversal comes ten years down the road, 

11   that's ten years' worth of students that we 

12   today, in this government, have written off.  

13                And we let the editorial boards 

14   drive us in a direction.  Those same editorial 

15   boards told us to take the $750 million back in 

16   2010.  Didn't they?  Those are the same editorial 

17   boards that are telling us today that, oh, we 

18   have to make these changes because they represent 

19   reform.

20                Mr. President, you've been very 

21   indulgent.  I thank you for your time.  I don't 

22   speak all that much in session, so I appreciate 

23   the fact that you allowed me to raise these 

24   questions.  I thank Senator Flanagan and my 

25   colleagues for their thoughtfulness.  


                                                               1756

 1                I intend to vote in the negative on 

 2   this bill.  I intend to hope for the best, but I 

 3   am very concerned that we are on a wrong path 

 4   today and that path is going to cause us great 

 5   difficulty.

 6                ACTING PRESIDENT GRIFFO:   Senator 

 7   Peralta.

 8                SENATOR PERALTA:   Thank you, 

 9   Mr. President.

10                Today, ladies and gentlemen, is --

11                ACTING PRESIDENT GRIFFO:   Senator 

12   Peralta, are you on the bill?  

13                SENATOR PERALTA:   On the bill.

14                ACTING PRESIDENT GRIFFO:   Senator 

15   Peralta on the bill.

16                SENATOR PERALTA:   Today, ladies and 

17   gentlemen, is the birthday of the great labor 

18   leader Cesar Chavez.  And how appropriate but yet 

19   sad that we have to talk about how decades later, 

20   after his struggles, that we're still talking 

21   about the lack of dignity and the lack of respect 

22   for immigrants who have come here to this country 

23   to work hard and live the American dream.  

24                He would have been 88 years old 

25   today.  And he stood for something.  He stood for 


                                                               1757

 1   a struggle.  It didn't matter to him whether they 

 2   were documented or undocumented, but he stood for 

 3   a struggle.  

 4                Mr. President, here we go again.  

 5   Another year, another budget that doesn't include 

 6   the DREAM Act.  This is going to look and sound 

 7   like the movie "Groundhog Day," where the same 

 8   day gets repeated over and over and over again.  

 9   Another year of false fear-mongering propaganda 

10   led by the majority, perpetuating an intolerant 

11   ideology that the sky is going to fall if we 

12   allow these undocumented kids to receive money 

13   from the Tuition Assistance Program, better known 

14   as TAP.  

15                But the irony here, Mr. President, 

16   is that the TAP is an entitlement program, 

17   meaning that everyone, including the 

18   undocumented, would have to meet the residency 

19   and income eligibility requirements.  Meaning 

20   that everyone would have to file a tax return, 

21   either using a Social Security number or an ITN 

22   number to qualify.  And for those who don't know, 

23   an ITN is used by the undocumented to file taxes.  

24   So as long as the household income is under 

25   $80,000 a year and they met all the criteria in 


                                                               1758

 1   the standard, then and only then would they 

 2   qualify to receive TAP.  

 3                But who cares about these facts as 

 4   long as the majority can continue to promote 

 5   these falsehoods, that these individuals don't 

 6   pay taxes and citizens would have to subsidize 

 7   the cost.  Well, the irony here is that the 

 8   college graduates would contribute over $60,000 

 9   more in taxes than if they didn't receive a 

10   degree.  Which means the investment would pay for 

11   itself, and then some, since the maximum 

12   investment that we would be making per individual 

13   would be about $20,000 for the four-year period.  

14                But who cares about these facts as 

15   long as the majority can continue to perpetuate 

16   and promote these falsehoods, that these 

17   individuals won't be able to get jobs anyway 

18   after they graduate because of their immigration 

19   status, even though most can become independent 

20   contractors, can open up small businesses or an 

21   LLC and in turn hire people to work for them 

22   without a problem.  And in fact, most immigrants 

23   do.  They're about 60 percent more likely to open 

24   up a small business because of their immigration 

25   status.  Not to mention that if they qualify 


                                                               1759

 1   under the DACA policy, and if it continues to be 

 2   in effect on a federal level, where an individual 

 3   can get a temporary status that's renewed every 

 4   two years with a valid Social Security number and 

 5   permission to work, these kids have another 

 6   option to then in turn, again, pay taxes.

 7                But who cares about these facts as 

 8   long as the majority can continue these 

 9   falsehoods, that by giving money -- in this 

10   sense, $27 million worth -- to the undocumented, 

11   that the children of hardworking blue-collar 

12   parents would lose out because these kids, these 

13   undocumented kids, would take away money from 

14   them.  

15                But the irony here, Mr. President, 

16   is that the only reason that these kids of these 

17   hardworking blue-collar parents would lose out is 

18   because their parents' household income is more 

19   than $80,000 a year.  Which means that they would 

20   lose out whether we included these Dreamers or 

21   not.  The Dreamers have nothing to do with them 

22   qualifying for TAP, because simply put, ladies 

23   and gentlemen, simply put, their parents just 

24   make too much money to qualify for TAP.

25                Which is why we have been pushing to 


                                                               1760

 1   increase the income eligibility from $80,000 to 

 2   $150,000 or more.  And by the way, if the person 

 3   qualifies for TAP, no one will ever say to that 

 4   person "We don't have enough money" or "We ran 

 5   out of money" because we as a state are required 

 6   to find the money for them.  

 7                But who cares about these facts as 

 8   long as the majority continues to promote these 

 9   falsehoods.  

10                Ladies and gentlemen, New York State 

11   and Dreamers have really lost out here today -- 

12   New York State because we really had an 

13   opportunity to really live up to our distinction 

14   of being state innovators and progressive 

15   thinkers, and the Dreamers because they had hoped 

16   to attend and graduate college and pave the way 

17   for the next generation.  They had hoped to begin 

18   living the American dream and become even more 

19   productive members of society.  

20                But today they have lost out.  What 

21   we have done today is punish these kids for the 

22   actions of their parents.  What we have done 

23   today is say to them no matter how hard you work, 

24   no matter how many colleges court you because of 

25   your high GPA and your high achievements, and no 


                                                               1761

 1   matter how much taxes your parents pay into the 

 2   system, the American dream is not for you because 

 3   you are not welcome here.  Because your parents 

 4   made a decision to bring you to this country 

 5   without your consent so that you can live a 

 6   better life and actually break the chains of 

 7   poverty, receiving a high-quality education.

 8                So I hope, Mr. President, that every 

 9   one of my colleagues in the majority can sleep 

10   well at night -- and I'm pretty sure you will -- 

11   knowing that this was done intentionally here 

12   today, crushing these kids' hopes and aspirations 

13   of succeeding in the only place that they call 

14   home and the only place that they pledge 

15   allegiance to, the only place that they grew up 

16   and know, all over this fear-mongering ideology 

17   of a minority voting bloc.  

18                But, Mr. President, like the sun 

19   rises every morning, I too believe that even in 

20   the darkest hours there's still light at the end 

21   of the tunnel, because it's always darkest before 

22   the dawn.  So I want to take this opportunity to 

23   call upon the Governor to make it a priority, as 

24   he has said throughout his entire campaign last 

25   year, and he has said throughout this entire 


                                                               1762

 1   budget process.  

 2                Because when the Governor placed the 

 3   DREAM in his executive budget, it lit the spark 

 4   in the eyes of every Dreamer.  And it sent a loud 

 5   message that he too, he too believed in what they 

 6   can accomplish.  He sent an infusion of hope and 

 7   inspiration up the ladder of success that after 

 8   all those other disappointing years that this, 

 9   this would be the year that the DREAM would 

10   finally become a reality.  

11                But yet much to the dismay of all 

12   those Dreamers, the DREAM Act was talked about 

13   being left out of the budget, which led the 

14   Dreamers to go on a drastic hunger strike and 

15   call attention to the importance of this issue.  

16   And even with that, the Dream was pushed out of 

17   the final budget.  Needless to say, I, as well as 

18   many others, was disappointed, infuriated, 

19   devastated.  These are the words that I've used.  

20                But we all know that the Governor 

21   has much more political capital than any of us.  

22   And when he has championed other issues and has 

23   used his political capital, as in the case of 

24   marriage equality, the SAFE Act and even this 

25   year, the ethics reform, he has leveraged it well 


                                                               1763

 1   and sometimes, sometimes, seemingly against all 

 2   odds.  

 3                So today I call upon the Governor to 

 4   keep his promise and use his political capital to 

 5   ensure that the DREAM is passed before the end of 

 6   this session, because these Dreamers are 

 7   depending on the Governor now.  The ball is in 

 8   his court.  The fate of their futures are in his 

 9   hands, and he can build up his progressive 

10   legacy.  And I will stand by him, and I know many 

11   more will stand next to him to do whatever it 

12   takes to make sure that the DREAM becomes a 

13   reality.  

14                So I implore the Governor to rise up 

15   above the politics and allow these Dreamers to 

16   wake up one morning to the reality that New York 

17   State is willing to allow them to succeed and 

18   receive TAP in order to achieve their full 

19   potential.  In the words of the great Cesar 

20   Chavez, once social change begins it cannot be 

21   reversed.  You cannot uneducate the person who 

22   has learned to read.  You cannot humiliate the 

23   person who feels pride.  You cannot oppress the 

24   people who are not afraid anymore.  

25                Finally, Mr. President, since my 


                                                               1764

 1   voice has been taken for granted yet another year 

 2   and my leader has not been allowed in the room to 

 3   talk about these issues, this budget does not 

 4   merit my positive vote.  And although I fully 

 5   understand, as my colleague Senator Latimer 

 6   pointed out, that I am in the minority and I will 

 7   not affect the outcome of this final passage, as 

 8   it was once said, I'm sick and tired about being 

 9   sick and tired of having my vote taken for 

10   granted.  

11                So therefore, Mr. President, I will 

12   be voting nay.

13                ACTING PRESIDENT GRIFFO:   Senator 

14   Panepinto.

15                SENATOR PANEPINTO:   On the bill, 

16   please, Mr. President.

17                ACTING PRESIDENT GRIFFO:   Senator 

18   Panepinto on the bill.

19                SENATOR PANEPINTO:   There are good 

20   things in this bill.  But I think that Senator 

21   Latimer's analogy of kumquats and peanut brittle 

22   is appropriate.  I can't think of two things that 

23   less go together than ethics reform, brownfields 

24   and broken education reforms.

25                I would like to be able to vote for 


                                                               1765

 1   ethics reform.  I think it's something whose time 

 2   has come.  I wish that the ethics discussion was 

 3   done in the light of day.  I wish it was 

 4   transparent.  But I support the Governor on his 

 5   ethics reform.  

 6                We should disclose our outside 

 7   income, we should disclose our clients if it's 

 8   appropriate.  And I think there are many good 

 9   things in the ethics package.  I'm happy to 

10   disclose who my clients are.  I'm happy to 

11   disclose how much money I make.  And we all 

12   should do that.  And this legislation will allow 

13   us to do that.  

14                Unfortunately, I'm not going to be 

15   able to vote for this ethics package because it's 

16   connected to a broken education package.  

17                There's good things in here on 

18   brownfields.  I represent 40 miles of waterfront.  

19   We've got Bethlehem Steel that was there, we've 

20   had the Huntley Power Station, we've got 40 miles 

21   of industry along the water, and we benefit from 

22   the brownfields program.  

23                Unfortunately, I can't vote for the 

24   brownfields program because it's connected to a 

25   broken educational plan.  And I'm disappointed by 


                                                               1766

 1   those things.  

 2                So let's talk about this so-called 

 3   educational plan.  We were supposed to have a 

 4   transparent discussion about education reform.  

 5   Well, our leader wasn't part of that process, our 

 6   voices weren't heard, and what we get back is a 

 7   process by which due process is taken away from 

 8   teachers, where we shift the presumption onto 

 9   someone who has been a teacher.  We are 

10   eliminating or curtailing, you know, that due 

11   process in the 3020-a procedure.  

12                More problematic than that 

13   elimination of due process is that we're 

14   infringing on the collective bargaining 

15   principles that we hold near and dear to our 

16   hearts.  The American labor movement was built in 

17   New York State, and it's a disgrace that this 

18   legislation impedes on that collective bargaining 

19   process.

20                How does it impede?  Well, this 

21   should be something that should be negotiated at 

22   the bargaining table between teachers and 

23   municipalities.  But from on high, we're telling 

24   educators what to do.  And we're doing it in a 

25   way that we're imposing our will on boards of 


                                                               1767

 1   education and superintendents, and those 

 2   boards are independently elected democratic 

 3   bodies.  

 4                This week a board in my district had 

 5   a nonbinding vote to consider whether or not they 

 6   would implement Common Core testing.  And what 

 7   happened as a result of that?  They were sent a 

 8   threatening letter by the Department of 

 9   Education, threatened to be put into 

10   receivership, and got a call from the Lieutenant 

11   Governor.  That is not the democratic process.  

12   That's an independently elected board who we 

13   should respect.  

14                So where are we going with this?  

15   Well, testing, the overtesting that was mentioned 

16   by Senator Latimer is where we want to go.  

17   There's no correlation between the overtesting of 

18   our children where there's a correlation of the 

19   effectiveness of teachers.  The American Society 

20   of Statisticians finds no correlation between 

21   what happens in that test and the effectiveness 

22   of the teacher.  

23                So we're going to overtest students, 

24   we're going to stress out parents, and then we're 

25   going to evaluate those teachers based upon 


                                                               1768

 1   flawed tests.  The paradigm is upside down.  

 2   We're supposed to be educating children to do 

 3   well on tests, not educating children to evaluate 

 4   their teachers.  That's not what's supposed to 

 5   happen in the classroom.  

 6                So I think what's really going on is 

 7   education has become the whipping boy for income 

 8   inequality.  We don't want to deal with the 

 9   systemic income inequality in this country.  In 

10   the budget proposal from the Governor we talked 

11   about a minimum wage increase and raising that 

12   minimum wage to $10.50 in Western New York and 

13   $11.50 in New York City.  We talked about, you 

14   know, a fight for $15.  Income inequality is the 

15   problem.  Kids come to school undernourished, 

16   underclothed, and without having the tools to 

17   compete.  But we don't want to deal with those 

18   issues, we want to blame teachers for what the 

19   problems of society are.  

20                You know, if we don't deal with that 

21   disparity in income, we really are letting down 

22   our democracy.  And we've got to fight to raise 

23   people up.  This budget could have dealt with 

24   raising the minimum wage, it could have dealt 

25   with, you know, paid family leave, but it chose 


                                                               1769

 1   not to.  And it chose to scapegoat teachers in 

 2   the process.  

 3                We could have eliminated the GEA, 

 4   the Gap Elimination Adjustment.  We chose not to.  

 5   And in fact what we did with the Gap Elimination 

 6   Adjustment is we funded 63 percent of the Gap 

 7   Elimination Adjustment.  Now, I haven't been in 

 8   school in a long time, but that's a failing 

 9   grade.  Sixty-three percent is a failing grade 

10   for the GEA.  We get an F for New York State 

11   because we didn't fully fund that gap 

12   elimination.  

13                We deserve an A+ in education.  And 

14   we don't have failing schools.  My daughters 

15   attend a school in Buffalo, New York, that's a 

16   public school that's rated among the top ten in 

17   the country.  I pay my taxes, and they go to that 

18   school and they're taught by tremendous teachers.  

19   And we don't have a broken education system, we 

20   have a broken economic system.  And we don't want 

21   to deal with the broken economic system.  

22                So I'm ashamed that we're only 

23   funding 63 percent of the GEA.  That's a failing 

24   grade.  We're New York.  We should be funding it 

25   at 95 percent or 100 percent.  That would give us 


                                                               1770

 1   an A+.  And our kids deserve an A+ in education.  

 2   We shouldn't scapegoat teachers.  We shouldn't 

 3   overburden parents.  We shouldn't stress out 

 4   kids.  We should fund education like we're 

 5   supposed to and like the courts say we should.  

 6                So I'm voting no on the bill, 

 7   although there's some good things in it.  But we 

 8   should not punish our kids and hold them hostage 

 9   for our inability to do the right thing and fund 

10   education.  

11                Thank you, Mr. President.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Díaz.

14                SENATOR DIAZ:   Thank you, 

15   Mr. President.  

16                Ladies and gentlemen, today is a 

17   very difficult day.  It's a very difficult 

18   situation which we are all in.  Again, I have to 

19   ask the same question, Mr. -- on the bill, I'm 

20   sorry.

21                ACTING PRESIDENT GRIFFO:   Senator 

22   Díaz on the bill.

23                SENATOR DIAZ:   Again, I have to ask 

24   the same question that I asked last night.  Last 

25   night we were debating taxes for the rich who 


                                                               1771

 1   could buy airplanes and boats, and there were 

 2   some Senators in my party stating that those were 

 3   taxes for the rich.  And there were some Senators 

 4   from my party saying that they were not taxes for 

 5   the rich.  

 6                Today we are dealing with a bill 

 7   where my colleagues, my county chairman, my 

 8   speaker, my democratic colleagues in the Assembly 

 9   coordinate it, talk about it, plan it with the 

10   Governor, a Democrat, with the leader of the 

11   Republican Party, and there was a three-way 

12   agreement in this bill.  

13                So I have the same predicament that 

14   I had last night.  I've got some members of my 

15   Democratic Party saying that this is a good bill 

16   they coordinated that will protect children in 

17   the school.  I have some members of my Democratic 

18   Party saying this is a terrible bill, that we 

19   should not vote for it.  

20                And we come here tonight and if we 

21   vote against the bill, some people will say we 

22   are voting against the children and we are 

23   protecting the unions and we are protecting other 

24   interests and not the interests of our children 

25   in our schools.  If we vote in favor of the bill, 


                                                               1772

 1   there are people going to say that we are 

 2   anti-teacher, that we are against the teachers, 

 3   and that we are voting against the unions.  

 4   That's the predicament that we have, especially 

 5   on this side of the aisle.  

 6                On the other hand, Mr. President, 

 7   let's see what is facts.  Fact number one.  There 

 8   are 178 failing schools in the State of New York.  

 9   Fact, 178 failing schools in the State of 

10   New York.  Fact, undeniable.  

11                A second fact:  250,000 children, 

12   the majority of them black and Hispanic, have 

13   been sent for the last 10 years, knowingly, 

14   purposely, have been sent to those failing 

15   schools.  For the last ten years, 250,000 

16   children, the majority of them, not to say all of 

17   them, the majority of them black and Hispanic 

18   children have been sent to failing schools.

19                Fact:  79 of those 178 failing 

20   schools are located in the City of New York.  

21   Seventy-nine of those failing schools are located 

22   in the City of New York, fact.  

23                Fact, 40 of those failing schools, 

24   Mr. President and ladies and gentlemen, 40 of 

25   those failing schools are located in Bronx 


                                                               1773

 1   County.  And nine of those failing schools are 

 2   located in the district that I represent.  Fact, 

 3   250,000 children have been sent to failing 

 4   schools in the last ten years, 178 failing 

 5   schools in the State of New York, 79 of those 

 6   failing schools in the City of New York, 40 of 

 7   those failing schools in Bronx County, and nine 

 8   of these failing schools in my district.

 9                Fact.  Should I -- am I against the 

10   teachers or am I in favor of the children?  Am I 

11   against the children or am I against the 

12   teachers?  These facts and other facts, 800,000 

13   children are being -- have been failed every 

14   year, 800,000 children.

15                So we are here today, I represent 

16   the City of New York, I represent a district in 

17   the Bronx County.  And I'm here, ladies and 

18   gentlemen, with all due respect to everybody 

19   else -- and to everyone, I always, when I have to 

20   speak, I speak my mind and I do what my counsels 

21   tell me.  But I'm here to look out for the 

22   children, not for teachers, not for unions, not 

23   for the mayor, not for the governor, not for 

24   anybody.  I'm here to look out for the best of 

25   the children that I represent.


                                                               1774

 1                What are the reason for these 

 2   failing schools and for 250,000 kids have been 

 3   sent for the past ten years to failing schools?  

 4   What are the reasons why 79 of those failing 

 5   schools are in the City of New York?  And what 

 6   are the reason that 40 of them are in the Bronx, 

 7   and what are the reason that nine of them are in 

 8   my district?  

 9                Some people say it is because of 

10   lack of money.  Some people say that happened 

11   because of lack of money.  Some other people say, 

12   wait -- and I'm one of them -- money is always 

13   needed and we should work to protect and to be 

14   sure that our public school system works for our 

15   children and that black and Hispanic children 

16   stop being left out.  All children, especially 

17   black and Hispanic children.  

18                And other people say the reason 

19   is -- this is the simple reason.  The City of 

20   New York, when we distribute money, every county 

21   or every district gets money assigned to those 

22   districts.  But the City of New York is one 

23   district, the whole city.  So when the money is 

24   distributed, the money goes to one district, the 

25   City of New York.  


                                                               1775

 1                And ladies and gentlemen, no matter 

 2   how much money we have put -- because I have been 

 3   here for the last 12 years, and every single year 

 4   we assign money to assist them.  Every single 

 5   year we assign money to assist them, and every 

 6   single year the schools in black and Hispanic 

 7   communities are rotten.  Every single year we 

 8   assist with money, but the money never gets to 

 9   our children.  The money never gets to the 

10   districts that really need the money.  Because 

11   the money here goes to one district, and the one 

12   district is the City of New York, so the City of 

13   New York distributes the money according to how 

14   they please.  

15                It is not until something is done to 

16   change that system and we could assign and locate 

17   the money directly to the districts, so 

18   District 7 in the Bronx, so District 9, so 

19   District 12 in the Bronx could get directly the 

20   money.  Then we will have a chance to save our 

21   children.  But not until we do that, not until we 

22   do that, ladies and gentlemen, no matter how much 

23   money we put, no matter how much money we send, 

24   the money never gets to our districts.  

25                And I'm telling you here in front of 


                                                               1776

 1   you and in front of my Lord Jesus and Savior, 

 2   that's the truth.  Our children, our districts 

 3   don't get the necessary money that they need.  

 4   But we -- we -- we send money.  District 7 in the 

 5   Bronx, they don't get the money -- they get some 

 6   money.  District 9 in the Bronx, oh, they get 

 7   some money.  District 12, oh, they get some 

 8   money.  But the real money, the money that they 

 9   need, they don't get because it's supposed to go 

10   directly to the city.  

11                So, ladies and gentlemen, if you 

12   want to stop the abuses, you want to stop all 

13   these things, let's change the system.  Let's 

14   assign the money instead of assigning the money 

15   to the one district, the City of New York, let's 

16   assign the money to districts.  District 7, 

17   directly, here's your pile of money.  District 

18   12, District 9, here's your pot of money.  You do 

19   now what you're supposed to do.  And I assure 

20   you, Mr. President, I assure you, ladies and 

21   gentlemen, that the whole thing will stop.

22                So money is not the problem.  The 

23   problem is who gets the money.  Money is not the 

24   problem, the problem is who gets the money.

25                Now, to do that and to try to save 


                                                               1777

 1   our children, some people have tried to create 

 2   some solutions.  Before I was an elected official 

 3   and before charter schools came to the system, 

 4   Reverend Floyd Flake -- Reverend Wyatt Tee Walker 

 5   from Manhattan and Reverend Floyd Flake from 

 6   Queens and myself, the three of us got together 

 7   to lobby for charter schools before charter 

 8   schools.  

 9                And charter schools came about 

10   because, because the idea was let's try to do 

11   something to protect and to try to save our 

12   children, and at least until this problem with 

13   the money going directly to our district in the 

14   public system -- and, ladies and gentlemen, the 

15   public system works.  And I know, if the money 

16   goes to our districts directly, it works.  It 

17   will work.  

18                Once you send the money directly to 

19   the district, the public system of the schools in 

20   my districts, in our districts will work.  But 

21   they will never get the money.  The money will 

22   never get to them because there's other things 

23   more important than to send the money directly to 

24   where it's needed.

25                So charter schools came to be, and 


                                                               1778

 1   charter schools were a creation to be located in 

 2   black and Hispanic communities to serve black and 

 3   Hispanic children.  At least a little bit, to see 

 4   what we could do.

 5                In this budget, some people that say 

 6   that they are for the children, those that fry 

 7   biscuits for the children, they fry and they're 

 8   oooh, we're for the children.  Yeah, because 

 9   everybody use the black and Hispanic children for 

10   their needs.  And everybody use the black and 

11   Hispanic children whenever it's good for them.  

12                And I told somebody, the other day I 

13   told somebody:  You know something, our 

14   community, the black and Hispanic community, our 

15   minority community, I don't know why we're doing 

16   so bad, because everybody fight for us.  

17   Everybody fight for the poor.  Everybody fight 

18   for black and Hispanic children, everybody for 

19   the children.  

20                Why are we doing so bad?  Why all 

21   our schools are doing so bad?  Why are we having 

22   250,000 children sent to failing schools for the 

23   last ten years?  Why?  Where are those saviors?  

24   Where have been all those protectors of our 

25   children's education that knowingly, knowingly, 


                                                               1779

 1   ladies and gentlemen, knowingly, they have sent 

 2   our children to failing schools.

 3                So there was a law invented, the 

 4   Educational Income Tax Credit, to try to help 

 5   another way.  So no education tax credit, no 

 6   charters.  Because people don't want charter 

 7   schools, people want more money, more money, more 

 8   money.  More money.  No, no, no charter schools 

 9   where black and Hispanic children are being -- 

10   taking opportunities and being saved.  No charter 

11   schools.  More money, more money.  No education 

12   tax credit, because that's no good.  More money.  

13   More money.

14                Go to the schools in my districts, 

15   in black and Hispanic neighborhoods, and you will 

16   see how they look and you'll see how they are.  

17   So go to those areas, go to other areas and 

18   compare.  And you will see, ladies and gentlemen, 

19   you will see that our children are always the 

20   ones, our students are always the ones left 

21   behind.  Left behind.  

22                And I -- I -- I didn't come here to 

23   fight for nobody else's interests.  I didn't come 

24   here and -- I don't go campaigning to say vote 

25   for me because I'm going to help you out.  And 


                                                               1780

 1   when I come here and say, oh, no good, this no 

 2   good, this is no good.  I came here -- and I 

 3   always do what my conscience tell me.  I have 

 4   always done what I believe is right.  

 5                And ladies and gentlemen, yes, of 

 6   course for the last four years I have been 

 7   standing in my conference and here and telling 

 8   all my colleagues the DREAM Act is not in, let's 

 9   vote against it.  Nobody listened for four years.  

10   Oh, no, they go, oh, no, no, he's a Democrat, we 

11   got to do it.  Oh, no.  

12                This year again, the fifth year, 

13   this year again, no -- no -- no DREAM Act.  

14   People that were saying people three months ago, 

15   people that were saying two months ago, if 

16   there's no DREAM Act, he's going to see we will 

17   not vote for it, and you will see I will not vote 

18   for this thing, for this budget if there is no 

19   DREAM Act on it.  The DREAM Act, the same people 

20   are now saying this is a good budget.  I'm 

21   disappointed.  

22                Ladies and gentlemen, some people -- 

23   people say "I'm tired."  Well, I'm tired too.  My 

24   first concern is the children.  Children first.  

25   Children first.  And charter schools have been 


                                                               1781

 1   helping children, black and Hispanic children, in 

 2   my districts in our communities.  And that's my 

 3   only concern.  

 4                Charter school works, public school 

 5   works.  Public school is good.  But again, the 

 6   money doesn't get to our communities.  It is not 

 7   that it's a public system.  It is not the 

 8   teachers, it is not -- it's the money, where the 

 9   money goes.  Let's change the system.  Let's 

10   change the system.  Let's change the system.

11                My friend here, let's change the 

12   system.  Senator Rivera, let's change the system.  

13   Let's change the system in a way that the money 

14   goes directly to the districts, where our 

15   districts goes with that money.  Once the City of 

16   New York gets the money, our communities don't 

17   get the money they need.  Our areas don't get the 

18   money they need.

19                So whose fault is that?  It's not 

20   the teachers.  It's not the public education.  

21   It's how the money's being distributed.  The 

22   money doesn't get to us.  Once again, again -- 

23   and with this I'll conclude -- again, no matter 

24   how much money we assign, no matter how much 

25   money we assign to the district, one in New York, 


                                                               1782

 1   there is one district, the money doesn't get to 

 2   the districts that need it.  Never gets to them.  

 3   Not until we change the system in how the 

 4   district is going to the city and the money goes 

 5   directly to districts, then the thing will 

 6   change.  

 7                Meanwhile, meanwhile my suggestion, 

 8   I'm happy, I'm honored to say meanwhile, till 

 9   that time comes, charter schools.  Charter 

10   schools till that time comes.  Education income 

11   tax credit till that time comes.  But until that 

12   time comes, nothing going to happen, and I will 

13   continue fighting for charter schools.  

14                And that's why I'm voting yes in 

15   this one.  Thank you.

16                ACTING PRESIDENT GRIFFO:   Thank 

17   you, Senator Díaz.

18                Senator Stavisky.

19                SENATOR STAVISKY:   Thank you, 

20   Mr. President.

21                ACTING PRESIDENT GRIFFO:   Senator 

22   Stavisky, are you on the bill or do you have 

23   questions?

24                SENATOR STAVISKY:   No, I would like 

25   to ask a couple of questions.


                                                               1783

 1                ACTING PRESIDENT GRIFFO:   Okay.  

 2   Senator Flanagan?  

 3                SENATOR STAVISKY:   I assume Senator 

 4   Flanagan.

 5                SENATOR FLANAGAN:   Yes.

 6                ACTING PRESIDENT GRIFFO:   Okay, 

 7   Senator Stavisky, you may pose your questions.  

 8                I want to remind the members that 

 9   we're closing on the time of --

10                SENATOR STAVISKY:   I know that.  I 

11   will be relatively --

12                ACTING PRESIDENT GRIFFO:   No, no, 

13   you're fine, I'm just giving general information 

14   for the membership as a whole.

15                SENATOR STAVISKY:   If the Senator 

16   would yield.

17                SENATOR FLANAGAN:   Yes.

18                SENATOR STAVISKY:   I am one of the 

19   few teachers serving in the Legislature, as I've 

20   said many times.  My colleague across the aisle, 

21   Senator Marcellino, is the other one.  We are 

22   both high school teachers.  

23                Oh, I'm sorry, Senator LaValle also.  

24   And I think Senator Stewart-Cousins.  And Senator 

25   Little.  Then I speak on behalf of everybody.


                                                               1784

 1                (Laughter; cross-talk.) 

 2                SENATOR STAVISKY:   One of my 

 3   teaching positions was at a vocational high 

 4   school in Queens, Thomas Edison.  And when I was 

 5   hired, I was asked "Can you teach math?"  Because 

 6   my license area, social studies, we had plenty of 

 7   social studies teachers.  But very few math 

 8   teachers, which I think is a problem today.  We 

 9   are short of people who can teach in the STEM 

10   subjects.  

11                How would this legislation affect my 

12   evaluation as a teacher of math teaching out of 

13   license?

14                SENATOR FLANAGAN:   Teaching out of 

15   license?

16                SENATOR STAVISKY:   Yes.  I'm a 

17   licensed social studies teacher, but I was given 

18   a program of math to teach.  I had a lot of math 

19   in college.  But nevertheless, I was not licensed 

20   in math.  How would my evaluation and tenure be 

21   affected by this legislation?  

22                SENATOR FLANAGAN:   Senator 

23   Stavisky, I'm going to give a two-part answer.  

24                And I try very hard to pay 

25   attention; I'm not exactly sure.  I'm not sure 


                                                               1785

 1   that it would be any different under this 

 2   proposed new law than it would be under present 

 3   or existing law.  And my good colleague from 

 4   Staten Island reminds me that the City of 

 5   New York, as many other places, endeavors to make 

 6   sure that people are teaching in their 

 7   certification.  And I'm sure that's a continued 

 8   effort on the part of the city.

 9                SENATOR STAVISKY:   Before I taught 

10   at -- if the Senator would continue to yield.

11                SENATOR FLANAGAN:   Yes.

12                SENATOR STAVISKY:   Before I taught 

13   at Edison, I taught at a high school.  In fact, 

14   my first teaching job was at a high school in 

15   Manhattan that was all boys, it was called 

16   Haaren.  It was at 59th Street and 10th Avenue.  

17   It's now John Jay College.  

18                But the boys there came from often 

19   single-parent homes, they were often students who 

20   could not read, they were disciplinary problems.  

21   They were struggling, quite frankly.  And how 

22   would my evaluations in a school where the 

23   reading level was extremely low, these are not 

24   students who would do well on standardized 

25   testing -- and yet would I continue to be 


                                                               1786

 1   evaluated based upon my students' test scores?

 2                SENATOR FLANAGAN:   What subject are 

 3   you teaching?

 4                SENATOR STAVISKY:   Social studies.

 5                SENATOR FLANAGAN:   So you're not 

 6   ELA/math 3 through 8, you're outside the state 

 7   tests?

 8                SENATOR STAVISKY:   That's correct.

 9                SENATOR FLANAGAN:   Okay.  So I 

10   believe it's accurate that we have a framework 

11   right now of 20, 20, 60.  

12                And there are opportunities, and 

13   I've had many discussions with districts outside 

14   of the City of New York where they have 

15   collectively bargained, non-ELA and math 

16   teachers, at the school district level -- and 

17   again, I would repeat, collective bargained that 

18   they will use either schoolwide measures or -- I 

19   had one district visit me from Senator LaValle's 

20   area in which they said they originally started 

21   out with SLOs, which you know are student 

22   learning objectives, and they didn't like that.  

23   So without any change in the law, they 

24   collectively bargained to go and be evaluated 

25   based on the test scores of the teachers 3 


                                                               1787

 1   through 8.

 2                I believe that what we are trying to 

 3   achieve are a number of different things.  And I 

 4   think there's almost unanimity on some of the 

 5   factors that you spoke to directly and others 

 6   have raised separately.  And I'm going to give 

 7   you what I think and hopefully use that as maybe 

 8   a modicum of what legislative intent would be.

 9                If you have two teachers who are 

10   competent and qualified, and in one class there's 

11   25 students who I'll use the loose description 

12   are, quote, unquote, gifted and talented, and 

13   then you have in the next classroom 25 students, 

14   there's 7 children with IEPs, there are six 

15   English language learners, there are children who 

16   are chronically in poverty, children who are 

17   undernourished and malnourished, I believe that 

18   our intention is do everything conceivable, and 

19   some of that protection exists within existing 

20   law that can be collectively bargained, but 

21   everything conceivable to make sure that those 

22   factors are taken into account.  

23                There are comments in the 

24   legislation that speak to correspondence between 

25   the Governor's office and the chancellor, 


                                                               1788

 1   Chancellor Tisch, in which she had written about 

 2   a 20-page response to inquiries from the 

 3   Governor's office.  They lay out some of those 

 4   concerns.  And I want to make sure that IEPs, 

 5   students with disabilities, English language 

 6   learners, indices of poverty, including free and 

 7   reduced lunch, would be part of anything that 

 8   ultimately leads to a teacher's evaluation, 

 9   regardless of subject.

10                ENATOR STAVISKY:   Thank you.

11                On the bill.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Stavisky on the bill.

14                SENATOR STAVISKY:   I believe that 

15   the principal is the leader in the school.  The 

16   principal in a high school, it's usually the 

17   assistant principal, will come and evaluate the 

18   teachers.  And that's good.  I think the 

19   principal sets the tone.  And I'm convinced that 

20   a good school begins with a good principal, as 

21   well as teachers who are licensed, involved 

22   parents, school support staff, et cetera.  

23                But what happens if the principal 

24   and the teacher do not get along?  What happens 

25   if the principal just doesn't like the teacher?  


                                                               1789

 1   That teacher is going to get an unsatisfactory or 

 2   a poor evaluation.  That I find troubling.

 3                Secondly, I am concerned that 

 4   teachers are not going to want to go into these 

 5   school districts where children may not speak 

 6   English, they may be ELL students, they may be 

 7   disabled, they may have special needs.  They may 

 8   be disadvantaged in a whole variety of ways.  

 9                And I'm concerned that teachers are 

10   not going to go to those school districts.  

11   They're going to be more concerned about their 

12   evaluations and about receiving tenure than 

13   teaching the children.  That is a concern.  

14                Secondly, I represent a school 

15   district in New York City of immigrants.  My 

16   Senate district, as I've said many times, is 

17   about two-thirds Asian-American.  And these 

18   children come to the United States as children, 

19   and they don't speak English.  They learn very 

20   quickly.  But again, it's difficult to attract 

21   teachers, quite often, to schools that are a 

22   little different than the schools that they're 

23   used to.

24                The observation reports are so 

25   subjective that I'm not sure that that is the 


                                                               1790

 1   best way to evaluate teachers in conjunction with 

 2   the students' achievements on this standardized 

 3   testing.  I'm afraid that there is such an 

 4   emphasis on high-stakes testing that it becomes 

 5   unfair for these children.

 6                All of these issues I think are of 

 7   concern to me.  And lumping these issues into a 

 8   bill -- what was it, pretzels and -- no, no, not 

 9   pretzels, peanut brittle and kumquats.  Lumping 

10   ethics legislation into this bill is a mistake, 

11   because I think we all support strong ethics 

12   legislation.  I don't think it's strong enough.  

13                Brownfields.  Extremely important in 

14   my Senate district, particularly in Flushing and 

15   downtown Flushing, which is a brownfield area and 

16   which is undergoing tremendous economic 

17   development, and it will continue with the 

18   brownfields cleanup that I think is going to 

19   occur in the next few years.  

20                I think we're doing a disservice to 

21   our constituents, and I think we're doing a 

22   tremendous disservice to the children.  Because 

23   with all due respect, they are our clients.  

24   They're the ones who we care about.  And yes, I 

25   do care about our children.  And I intend to vote 


                                                               1791

 1   no on this bill.  

 2                Thank you, Mr. President.

 3                ACTING PRESIDENT GRIFFO:   Senator 

 4   Espaillat.

 5                SENATOR ESPAILLAT:   Yes, 

 6   Mr. President, thank you.  On the bill.

 7                ACTING PRESIDENT GRIFFO:   Senator 

 8   Espaillat on the bill.

 9                SENATOR ESPAILLAT:   Yes, I will 

10   address three issues hopefully quickly.  Time is 

11   of the essence.

12                First, on high-stakes testing.  It 

13   was just brought up by my colleague the impact 

14   that it's having on the performance, the academic 

15   performance of children.  And I will limit myself 

16   to the City of New York, where 50 percent of 

17   New Yorkers are now foreign-born or the sons and 

18   daughters of folks that came from other places 

19   across the world.  

20                And language proficiency continues 

21   to be a major hurdle in the academic achievement 

22   of children.  And I can tell you that because I 

23   was one of those kids that sat in the back of a 

24   classroom for three years, two to three years, 

25   not knowing what was being said.  Didn't have 


                                                               1792

 1   bilingual education back then; monolingual 

 2   education.  I sat in the back of a classroom for 

 3   three years not really understanding what was 

 4   being said.

 5                And so in a city that has 

 6   50 percent, Senator Flanagan, of kids from 

 7   outside the country -- and you can go to the 

 8   neighborhoods of the City of New York, and you 

 9   see them, how they change.  Chinatown is no 

10   longer downtown in Manhattan, it's in Flushing.  

11   The real Chinatown is in Flushing.  The Mexican 

12   community now lives in East Harlem.  There are 

13   Africans in the Bronx, Southeast Asians in 

14   Queens, Russians in Brooklyn.  

15                And so this is a city, an 

16   amalgamated city of different cultures from 

17   around the world, where the kids that make up the 

18   educational system have a problem with language 

19   proficiency.  Maybe they can read, maybe they can 

20   speak, but when they begin to write the language, 

21   they have difficulties.  

22                And if you take math, which used to 

23   be a computation science, it's no longer a 

24   computation science.  It is a science designed to 

25   elicit analytical reasoning.  In fact, you need 


                                                               1793

 1   to have greater proficiency in reading to 

 2   decipher a very complicated math problem where 

 3   the answer is a trick answer, somewhere that you 

 4   may not know where it is, certainly if you don't 

 5   speak, write or read the language with 

 6   proficiency.

 7                So language proficiency continues to 

 8   be a major, major challenge for our kids.  And 

 9   when you have a kid right off a plane being 

10   forced to take a Regents exam in English language 

11   arts, which is tough enough for you as born kids, 

12   you're setting that kid to fail.  And half of the 

13   kids in our school system are in that 

14   predicament.

15                So unless we break away from this 

16   high-stakes test-taking model which just pushes 

17   the kids to gobble up information without really 

18   taking the time to address their linguistic 

19   needs, we're going to continue to fail.  We're 

20   going to fail in English language arts.  We're 

21   going to fail in math and science, which are no 

22   longer computation sciences, but they are now 

23   sciences that -- and if you speak to Kaplan and 

24   some of the other test-makers, they will tell you 

25   they hide the answer.  


                                                               1794

 1                One day I was having a breakfast and 

 2   explaining to a group of business leaders down in 

 3   the Wall Street area about how difficult it was 

 4   for a foreign-born kid to determine the answer, 

 5   and the guy sitting right across from me said "I 

 6   know, because I make those tests."  He was one of 

 7   the Kaplan guys.  "And we design those tests to 

 8   make it difficult linguistically for you to get 

 9   the right answer."

10                And so these kids are facing major 

11   hurdles.  Yes, it's not just about money.  And 

12   the teachers are facing great challenges because 

13   they have to face these real-life situations 

14   every day in their classrooms.  

15                And so the problem is more complex 

16   than meets the eye.  And I can tell you, again, 

17   because I was one of those kids.  I lost a grade 

18   when I came here, because back then they would 

19   take a grade away from you.  I was a good math 

20   student back home.  And when I came here, I was 

21   doing math above grade level.  But I couldn't 

22   speak the language for three years, Lanza.  I 

23   couldn't speak the language.  And so I fell back.  

24                When I got to college -- I found one 

25   of my freshman college papers at my mother's 


                                                               1795

 1   house the other day, and I read it.  And I said, 

 2   man, I wasn't really there.  I wasn't there yet.  

 3   Not like I am right now.  Maybe some of you can 

 4   say that I speak Shakespearean English now, 

 5   right?  Right? 

 6                (Laughter.)

 7                SENATOR ESPAILLAT:   And I read it 

 8   and I said, wow, you know, I was not really 

 9   there.  But when I looked at it, I was only six 

10   years in the country.  Most of the data tells you 

11   that it takes seven years for you to master a 

12   language.  

13                So if 50 percent of our kids are 

14   foreign-born, if they're facing these 

15   language-related issues, proficiency issues, and 

16   we continue to treat them the same way and cut 

17   them with the same scissors, we're going to 

18   continue to fail.

19                So I am against high-stakes testing.  

20   And I think the teachers are facing great 

21   difficulties in the classroom, greater than meet 

22   the eye.  And I'm not here to defend anybody.  

23   I'm here to defend the kids.  I was one of those 

24   guys.  

25                But we need to change that model.  


                                                               1796

 1   And maybe more money needs to come to the 

 2   classroom, that's right.  Maybe we need to take a 

 3   look at the bureaucratic setup and how much money 

 4   that's gobbling up that's not trickling down to 

 5   instruction in the classroom.  And so that's the 

 6   first issue.

 7                The second issue is totally 

 8   different.  And I now understand, you know, we 

 9   may be getting into this three-card monte game 

10   again, DeFrancisco, because now I have to speak 

11   about ethics.  And whereas this part of the bill 

12   also brings about some changes such as reporting 

13   outside income, a review of the per-diem process, 

14   I don't know really how much change happens 

15   there.  

16                When I come from the garage, I swipe 

17   in.  When I come from the garage into the LOB 

18   building, I swipe in.  Maybe we'll have to swipe 

19   in again over here.  And that's fine, I'll swipe 

20   in three or four times.  Does that really take 

21   care of the ethical problem in Albany?  I don't 

22   know.

23                And then you have the pension issue 

24   that we just took up right now.

25                Unless we bring about changes in 


                                                               1797

 1   campaign finance, unless we bring about public 

 2   financing of campaigns, money will continue to 

 3   run this town.  Money will continue to run this 

 4   town.

 5                So let's come back at another 

 6   juncture, maybe not in the budget, and let's talk 

 7   about public financing of campaigns and how we 

 8   can level out the playing field so that I can 

 9   have four people run against me.  Why should we 

10   worry so much about being primaried or run 

11   against?  That's what we're here to do.  Let 

12   people run.  Let people have the ability to raise 

13   a little money and be as competitive financially 

14   as I can be as an incumbent.  

15                There's no issue with that.  I've 

16   had 15 primaries in the last 17 years.  You know 

17   about that, Senator, right?  And so unless you 

18   have public financing of campaigns, we will 

19   continue to face these major issues.

20                And finally, Senator Peralta was 

21   very eloquent in speaking about the omission of 

22   the DREAM Act in this budget.  And I will tell 

23   you what Langston Hughes said in his rendition of 

24   "Harlem":  

25               "What happens to a dream deferred?  
                 Does it dry up 

                                                               1798

 1               like a raisin in the sun?  
                 Or fester like a sore -- 
 2               And then run?  
                 Does it stink like rotten meat?  
 3               Or crust and sugar over -- 
                 like a syrupy sweet?
 4               Maybe it just sags 
                 like a heavy load.
 5               Or does it explode?"
    
 6                I think it will explode.  

 7                We need to bring these kids into the 

 8   educational system and give them the tools that 

 9   all New Yorkers have at their disposition to be 

10   better members of our society.  

11                I will be voting in the negative, 

12   Mr. President.

13                ACTING PRESIDENT GRIFFO:   Senator 

14   Sanders.

15                SENATOR SANDERS:   Thank you, 

16   Mr. President.  

17                My colleagues have all waxed 

18   poetically on these great issues -- on the bill, 

19   of course.

20                ACTING PRESIDENT GRIFFO:   Senator 

21   Sanders on the bill.

22                SENATOR SANDERS:   And there are 

23   many things that we can say, but let me say this.  

24   In roughly three hours the Empire State, God 

25   willing, will have a budget.  The Empire State 


                                                               1799

 1   will have a budget.  

 2                But a budget is really a reflection 

 3   on priorities.  A budget is the reflection of 

 4   what the state is, who are we as a state.  And 

 5   with that in mind, we've gone from -- we've taken 

 6   some amazing turns while I've been here.  We went 

 7   from the rising tide of the DREAM Act to the -- 

 8   we became the rising tide that lifts all yachts.

 9                (Laughter.)

10                SENATOR SANDERS:   We've come a long 

11   way.  We've gone from obeying the law with CFE to 

12   spiting the law with our educational budget.  

13   We've come a long way.

14                Although there are many good and bad 

15   things in this budget, perhaps the most glaring, 

16   the most costly, the most horrible omission that 

17   we have done has been our failure to raise the 

18   minimum wage.  

19                Perhaps we have gotten a little bit 

20   too far away from the average man and woman on 

21   the street, trying to make ends meet and live on 

22   the minimum wage.  Perhaps we have forgotten what 

23   it's like -- and maybe we've never known what 

24   it's like to try to feed a family on the minimum 

25   wage, a wage that has not increased in many 


                                                               1800

 1   years.  

 2                This is going to be costly to us as 

 3   a society because raising the minimum wage, my 

 4   friends, is one of the best economic stimulus 

 5   that you can have.  Any economist is going to 

 6   tell you that one of the best ways of stimulating 

 7   an economy is raising the minimum wage.  

 8                Why?  Because unlike the 

 9   billionaires that we seem to have catered to, the 

10   low-wage workers, they don't buy jets, they don't 

11   buy yachts.  They buy food, they buy clothing.  

12   They go to the local stores, not to the hedge 

13   funds.  They don't put their money away.  They're 

14   taking care of immediate needs.  And therefore 

15   you have stimulated your economy better than any 

16   of these ideas of giving more to the rich.

17                Trickle-down.  How about bubbling up 

18   instead of trickling down?  

19                My friends, let me just point to one 

20   thing.  And I'm going to be quick, Mr. President.  

21   I'm going to get us to 12 o'clock.  Scott 

22   Stringer, who's the comptroller of New York City, 

23   he gave two, but I'll just read a small one.  He 

24   said "A minimum wage of 13.13 is likely to 

25   benefit New York City's working poor 


                                                               1801

 1   substantially.  The Comptroller's office 

 2   estimated that nearly 1.2 million New York City 

 3   workers who would benefit from the increase would 

 4   experience a weekly impact on average earnings 

 5   large enough to improve their housing stability 

 6   and health security."

 7                Meaning that we could have saved 

 8   ourselves a lot of money.  We're spending a lot 

 9   of money trying to prop up people inside, keep 

10   you in your house.  Why don't we just pay them 

11   enough so they can pay their own rent and won't 

12   need a subsidy?  We're spending enough to try to 

13   catch up after the fact when we should deal with 

14   their health now.  So we missed our opportunity, 

15   my friends, and America is going to suffer for 

16   years to come.

17                So as I conclude, Mr. President -- I 

18   told you I was going to be quick.  You owe me 

19   some time.  But that's all right, I'll get it the 

20   next budget.  

21                So as I conclude, may we in the 

22   Empire State return to our mission, return to 

23   helping people pull themselves up by their 

24   bootstraps instead of stepping on their 

25   bootstraps as we rush to cater to the 


                                                               1802

 1   well-heeled.

 2                Thank you very much, Mr. President.

 3                ACTING PRESIDENT GRIFFO:   Thank 

 4   you, Senator Sanders.  I appreciate that.

 5                Senator Hoylman.

 6                SENATOR HOYLMAN:   Thank you, 

 7   Mr. President.  On the bill.

 8                ACTING PRESIDENT GRIFFO:   Senator 

 9   Hoylman on the bill.

10                SENATOR HOYLMAN:   Thank you.  

11                And thank you for your fairness 

12   throughout tonight's proceeding.

13                I'm going to be speaking briefly on 

14   Part CC of ELFA, the ethics disclosure portion.  

15   And while there is some of it I think we will we 

16   all appreciate -- taking steps for additional 

17   disclosure of income, disclosure of clients, 

18   exceptions to disclosure, per diem reform, 

19   pension forfeiture, the use of personal campaign 

20   funds, independent expenditures, different issues 

21   addressed and not addressed -- I would like to 

22   say that fundamentally, Mr. President, I don't 

23   think this addresses the problem that we have in 

24   our Legislature.  

25                And the problem is practicing 


                                                               1803

 1   lawyers, frankly.  I can say that; I'm one.  I'm 

 2   a lawyer.  But we lawyers, we're paid, it is our 

 3   profession, we are trained, we learn how to find 

 4   loopholes.  

 5                So you can't tell me, Mr. President, 

 6   that the lawyers in this chamber and the lawyers 

 7   who work for lawyers in this chamber aren't 

 8   already poring over this legislation trying to 

 9   find ways to subvert it.  And that's the problem.

10                Fundamentally, you can't serve two 

11   masters.  Either you represent the people of the 

12   State of New York or you represent your clients.  

13   You can't have it both ways.  

14                Yes, it is profitable, as we know, 

15   to have outside clients.  But the problem, 

16   Mr. President, is that when you are a lawyer -- 

17   and I think the nonlawyers know this too -- you 

18   have confidentiality with your clients, a 

19   fiduciary relationship.  You have secrets, 

20   secrets that you share with your clients, that 

21   are only between you and the client.  Where do 

22   the people of New York come into that equation?  

23                Now, this bill attempts to address 

24   that by requiring certain practices of law to 

25   reveal their clients given certain thresholds of 


                                                               1804

 1   expenditure.  But again, fundamentally, we 

 2   haven't addressed the root problem.

 3                Now, there isn't any need to permit 

 4   outside income, in my opinion, especially after 

 5   this bill, because this Legislature and the 

 6   Governor have wisely taken steps to establish a 

 7   pay commission.  So for all the lawyers who feel 

 8   like they don't make enough money here, well, 

 9   that will be addressed.

10                So I'm hoping, Mr. President, that 

11   this is another step that we can rely on to 

12   fundamentally alter this chamber and have only 

13   professionals who serve the people rather than 

14   outside interests.

15                I think that we should also 

16   understand why lawyers might get hired by 

17   clients, lawyers who work in the Legislature.  I 

18   mean, let's face it, you're a Senator.  That's 

19   access.  And we should address that head-on by 

20   banning the practice of law while being members 

21   of the Legislature.  

22                We don't have to reinvent the wheel, 

23   either.  Congress has already done it.  They had 

24   their Watergate moment.  I think we're actually 

25   undergoing ours, to a certain extent.  In 


                                                               1805

 1   Congress you cannot practice law and you're 

 2   limited in outside income to 15 percent of your 

 3   base salary.  We should follow suit.  The 

 4   Attorney General and others have suggested even 

 5   greater restrictions on outside income.  I think 

 6   it's time that the Legislature addresses that 

 7   too.

 8                Now, frankly, I think this is the 

 9   only place in America where we seem to feel sorry 

10   for lawyers.  And we shouldn't.  There's more of 

11   us than them.  And we should end the lawyer 

12   exceptionalism in the New York State Legislature.  

13   Let's ban fiduciary relationships.  Let's end 

14   outside income.  Let's serve the people of 

15   New York and only the people of New York.

16                Thank you, Mr. President.

17                ACTING PRESIDENT GRIFFO:   Thank 

18   you, Senator Hoylman.

19                I just want to extend a reminder to 

20   everyone that we have exceeded the time.  I am 

21   going to exercise some flexibility and allow 

22   debate to continue.  We do have several more 

23   members and several other bills before the house, 

24   so I'd just ask members to be respectful of that, 

25   so each will have the opportunity to be heard.


                                                               1806

 1                I'll call on Senator Comrie now.  

 2   Senator Comrie?  

 3                SENATOR COMRIE:   Mr. President, on 

 4   the bill.

 5                ACTING PRESIDENT GRIFFO:   Senator 

 6   Comrie on the bill.

 7                SENATOR COMRIE:   I'm rising today 

 8   to vote no on the bill.  There are many issues 

 9   that need to be addressed that have not been 

10   addressed that affect our community.  I'll focus 

11   on some that affect my district.  

12                I'll focus on agreeing with most 

13   of -- everything that Senator Latimer said.  My 

14   district has a high turnover of foster-care 

15   children in many of our schools, where some of my 

16   schools have a 40 percent turnover in foster-care 

17   children in the building within a year.  There's 

18   no way that a teacher, without additional 

19   resources that are needed -- that could be 

20   gleaned if we had respected the CFE decision -- 

21   would be able to get those resources so that they 

22   could make sure that there were smaller class 

23   sizes, that we wouldn't have to deal with 

24   overcrowding in our schools and that we could 

25   address those needs for children that are moving 


                                                               1807

 1   from building to building within the course of a 

 2   year.

 3                The issues of teacher evaluation, 

 4   teacher tenure and teacher funding are all issues 

 5   that frankly could be worked out better for all 

 6   people if there weren't -- if there was not such 

 7   a negative attitude towards trying to come to a 

 8   compromise instead of pointing fingers of blame 

 9   at people.  

10                And it's at a point where we need to 

11   stop blaming the system, stop blaming, trying to 

12   find a victim, but really, as Senator Díaz said, 

13   try to help the children, try to make sure that 

14   our children get the resources that they need -- 

15   understanding that we have failing schools, 

16   understanding that we have failing systems all 

17   over the state -- and that the resources are 

18   adequately put in the areas that are failing.

19                We need to make sure that there's 

20   more funding also for the people that were most 

21   hurt that we had a $5 billion windfall from.  

22   That people are calling a windfall, but it's 

23   really money that was taken from people that 

24   should be given redress.  This money was gleaned 

25   and stolen from people, $5 billion from people 


                                                               1808

 1   that were in foreclosure, people that were 

 2   dealing with -- that were hoodwinked by the 

 3   system, people that were criminalized and also, 

 4   further, given no help when they were trying to 

 5   get help.  

 6                And it's only through this one 

 7   opportunity that we've gotten from our Attorney 

 8   General and the legal system to try to help these 

 9   people, and there's barely any money to redress 

10   these issues or to give any opportunity to 

11   continue affordable housing in this budget or 

12   housing support in this budget as well.  

13                And opportunity for people to come 

14   back and do the things necessary to ensure that 

15   people can stay in their homes and that people 

16   can maintain an opportunity to allow young people 

17   to also be able to afford to live in their 

18   communities.  In my community, most of the young 

19   people are looking to move out because they can't 

20   afford to buy a home in the community they grew 

21   up in.

22                And also, while we are working -- 

23   the Summer Youth Employment Program, which is a 

24   program which also has thousands of kids every 

25   year crying and calling up our offices looking 


                                                               1809

 1   for work because they've applied for the Summer 

 2   Youth Employment Program.  We've actually 

 3   increased no additional slots this year.  That's 

 4   a travesty when we have such a budget surplus, 

 5   when we could do something to help our 

 6   communities.  

 7                And this is not even talking about 

 8   the $5 billion money from the settlement.  We had 

 9   a general budget surplus in the budget.  We're 

10   not reaching back and lifting up people.  We're 

11   not reaching back and making sure that all 

12   communities can benefit from the largesse in this 

13   state.  We're not reaching back and making sure 

14   that our young people that are trying to get 

15   their first job can go out and benefit.

16                I was the lucky recipient of a 

17   summer youth employment job back when I was a 

18   youth, and that changed my life.  It changed my 

19   focus.  It changed my opportunity to understand 

20   what work was, what responsibility was, how to 

21   show up on time and how to be responsible.

22                If we don't give these kids this 

23   opportunity -- especially these kids that are 

24   focused on the Internet, focused on social 

25   media -- an opportunity to get a real job, an 


                                                               1810

 1   opportunity to have responsibility in large 

 2   numbers, we're going to lose more generations of 

 3   kids to selfishness and to things that are just 

 4   totally anti-educational.

 5                We need to make sure that our youth 

 6   employment programs are better invested.  Our 

 7   community reinvestment funds also, and 

 8   after-school programs, have been woefully 

 9   underfunded in this budget.  

10                There are many other items, but I'm 

11   fighting a head cold and it seems to have gotten 

12   worse today.  So I'm going to just say that, you 

13   know, I'm disappointed in this budget.  I'm 

14   disappointed that our conference wasn't 

15   represented in the budget so that we could be 

16   able to make sure that all of our voices were 

17   heard in the room.  

18                And I understand that there was past 

19   history, but I'm working on the present.  I'm 

20   working on the future.  I don't want to hear 

21   about what happened in the past.  You know, every 

22   time I get into a group somebody wants to tell me 

23   history.  I'm worried about the future and the 

24   future of this state where we have 8 million 

25   people that are not represented in a room.  Where 


                                                               1811

 1   we have a legislature that is trying to work on 

 2   developing ideas and policies and we can't have 

 3   everybody in the room having a real discussion, 

 4   that's a failed legislature.

 5                So I'm voting no on this.  Thank you 

 6   very much, Mr. President.

 7                ACTING PRESIDENT GRIFFO:   Senator 

 8   Rivera.

 9                SENATOR RIVERA:   Thank you, 

10   Mr. President.  On the bill.

11                ACTING PRESIDENT GRIFFO:   Senator 

12   Rivera on the bill.

13                SENATOR RIVERA:   Fact.  A few weeks 

14   ago there was an article in the New York Post 

15   that identified a series of failing schools.  

16   Fact.  My picture was on this article.  And of 

17   the schools that were identified as being failing 

18   in this list that was identified in this article, 

19   13 of them are in my district.  

20                Fact.  When you look at these 

21   schools -- actually, there's 12 of them, not 13, 

22   12.  I've visited seven of them in the four years 

23   that I've been in the Senate, a couple of them 

24   just in the last year.  

25                Fact.  If we take all the money that 


                                                               1812

 1   the Campaign for Fiscal Equity owes these 

 2   schools, it adds up to about $26 million.

 3                Fact.  When I spoke to the 

 4   principals of these schools and I asked them 

 5   whether they could use -- let's say at I.S. 219, 

 6   New Venture School, whether they could have used, 

 7   I don't know, $968,758.87, well, let's just say 

 8   that the exclamation that came out is not 

 9   something that necessarily I can say on this 

10   floor.

11                But fact.  This money, which is not 

12   in this budget, would help all these 

13   institutions, all these schools.  Of them, six 

14   are Renewal Schools, one is a Community School.  

15   And there's real challenges that face the 

16   children in those schools.  

17                When we're talking about the money 

18   that is owed to these schools, it's not that 

19   we're saying just like money can make everything 

20   better.  But you cannot tell me that if P.S. 92 

21   had another million dollars -- actually, 

22   $1,088,101.67, they probably could have done 

23   something with that.  They probably could have 

24   tutoring, extracurricular activities, 

25   after-school programs, social service programs, 


                                                               1813

 1   supplies.  These resources are necessary.  This 

 2   is not in this budget.

 3                Second, this budget also -- fact, I 

 4   should say.  Fact.  This bill and the proposal, 

 5   the education proposal that we have before us, 

 6   doesn't just talk about testing, it doubles down 

 7   on testing.  

 8                We've had many discussions on this 

 9   floor and in the public conversation about 

10   education as far as high-stakes testing and how 

11   we should be really reconsidering whether it's 

12   the way that we want to actually measure success 

13   of students or teachers.  And now we are doubling 

14   down.

15                Third, fact.  What this bill does is 

16   it establishes a sort of reform -- and I use that 

17   term loosely -- which are ultimately punitive, 

18   extremely punitive to the folks that are on the 

19   front lines every single day to try to make the 

20   lives of these school kids better.

21                These are all facts.  And the 

22   concern, the main concern that I have about that 

23   part of this budget -- and certainly Senator 

24   Latimer outlined them at length -- is that it 

25   might indeed perpetuate the status of these 


                                                               1814

 1   schools.  I do not call them failing, I call them 

 2   challenged.  And they're challenged just like the 

 3   neighborhoods that they are in.  These are the 

 4   schools that I represent.  These are the children 

 5   that I represent.  These are the parents that I 

 6   represent.  

 7                Another fact.  The overwhelming 

 8   majority of the students in the entire State of 

 9   New York go to public schools.

10                Fact.  There's certain charter 

11   schools in my district that are successful.  

12   Others are not.

13                Fact.  Maybe 5 percent of the total 

14   number of children in the entire school system in 

15   the state go to charter schools.  And if we are 

16   to, in this body, say that we care about the 

17   children of the state, we should be thinking 

18   about how we reform the system, certainly not in 

19   this way, but in a way that impacts that 

20   95 percent.

21                Two more points, Mr. President, and 

22   I shall conclude.  

23                Senator Peralta talked about it at 

24   length, and we've talked about it on this floor 

25   many, many times as far as what the DREAM Act is 


                                                               1815

 1   and what it is not.  It does not take away 

 2   anything from anyone.  The DREAM Act gives access 

 3   to students that are individuals, children, that 

 4   came here without wanting to.  Their parents 

 5   brought them here.  And they have already been 

 6   successful in the educational system of our 

 7   state.  And we're saying to them:  Well, now you 

 8   can't be anything else.  Congratulations on being 

 9   successful in high school, but you can't go to 

10   CUNY or SUNY.

11                It doesn't take away anything from 

12   anybody.  It doesn't take away anything from any 

13   other student.  It just provides access to them.

14                Fact.  Lastly, the ethics proposal 

15   that we have in front of us is also, 

16   unfortunately, woefully, not addressing the real 

17   concerns that we need to address in this body.  

18   And many of my colleagues have talked about this 

19   in detail.  

20                So I will just say that I join them 

21   in saying that for all of these reasons, 

22   certainly as it relates to no DREAM Act in this 

23   budget, a weak ethics reform, and an education 

24   proposal that in the three instances that I 

25   mentioned -- no CFE funding, doubles down on 


                                                               1816

 1   high-stakes testing, and establishes reforms that 

 2   are ultimately punitive as opposed to trying to 

 3   really fix the system -- Mr. President, I think 

 4   that this is a bad budget bill, and I'll be 

 5   voting in the negative.  And that is a fact.

 6                Thank you, Mr. President.

 7                ACTING PRESIDENT GRIFFO:   Senator 

 8   Hamilton.

 9                SENATOR HAMILTON:   Mr. President, 

10   would the sponsor of the bill please yield to a 

11   question?  

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Flanagan, do you yield?  

14                SENATOR FLANAGAN:   Yes.

15                ACTING PRESIDENT GRIFFO:   Senator 

16   Flanagan yields.

17                SENATOR HAMILTON:   Senator 

18   Flanagan, how you doing today?  

19                SENATOR FLANAGAN:   Good.

20                SENATOR HAMILTON:   Senator 

21   Flanagan, I'd like to know how would you rate, on 

22   a letter grade, the State Education Department?  

23                SENATOR FLANAGAN:   I'm sorry, could 

24   you repeat the question?  

25                SENATOR HAMILTON:   The State 


                                                               1817

 1   Education Department, their overall performance 

 2   of educating our kids, which letter grade would 

 3   you give them? 

 4                SENATOR FLANAGAN:   Oh, Senator 

 5   Hamilton, I think that -- you know, I look at 

 6   things over a continuum of time.

 7                SENATOR HAMILTON:   Right.

 8                SENATOR FLANAGAN:   I am unabashed 

 9   in suggesting a couple of things.  I don't always 

10   agree with the State Education Department.  I 

11   have great admiration for the people who serve as 

12   Regents even when I may not agree with them.  I 

13   have a special admiration for the chancellor, 

14   because these people dedicate hundreds and 

15   hundreds of hours of their time that frankly they 

16   don't need to.

17                Within the Education Department 

18   there are some highly incredibly talented 

19   individuals who do yeomanlike work for children 

20   all across the State of New York, children with 

21   disabilities, children in preschool programs.  So 

22   I can look in isolation and pick out some 

23   extraordinarily talented people who -- I was on 

24   the phone today with SED for 45 minutes before we 

25   had this debate already talking about where 


                                                               1818

 1   things may go.

 2                So respectfully, I would say I 

 3   believe that it's important for us as members and 

 4   as a Legislature to have a good working 

 5   relationship with the State Education Department, 

 6   even when we aren't always in sync.

 7                SENATOR HAMILTON:   Yes, 

 8   Mr. President, would the sponsor please yield to 

 9   a question?  

10                SENATOR FLANAGAN:   Yes, I do.

11                ACTING PRESIDENT GRIFFO:   The 

12   Senator yields.

13                SENATOR HAMILTON:   Senator 

14   Flanagan, how would you rate the State Education 

15   Department by letter grade?  

16                SENATOR FLANAGAN:   Senator 

17   Hamilton, I think I've answered the question.  

18   See, one of the good things about this body is 

19   it's deliberative and we get to answer questions 

20   in the way we think appropriate.  Which I've 

21   done.

22                SENATOR HAMILTON:   Okay.  So 

23   overall, since you won't give me a letter 

24   grade --

25                ACTING PRESIDENT GRIFFO:   Senator 


                                                               1819

 1   Hamilton, are you on the bill?

 2                SENATOR HAMILTON:   Would the 

 3   sponsor of the bill please yield to a question.

 4                ACTING PRESIDENT GRIFFO:   Are you 

 5   on the bill or do you want to ask a question?  

 6                SENATOR HAMILTON:   I'm on the bill.  

 7   I'm on the bill.  I'm just trying to get to 

 8   the --

 9                ACTING PRESIDENT GRIFFO:   No, do 

10   you want to speak on the bill or do you --

11                SENATOR HAMILTON:   I want to speak 

12   on the bill.  I want to ask a question to the 

13   bill, yes.

14                (Laughter.)

15                ACTING PRESIDENT GRIFFO:   Senator 

16   Flanagan, do you yield to a question?  

17                SENATOR FLANAGAN:   I yield, yes.

18                ACTING PRESIDENT GRIFFO:   All 

19   right.  Go ahead, Senator Hamilton.

20                SENATOR HAMILTON:   If he'd please 

21   yield to a question.

22                SENATOR FLANAGAN:   Yes.

23                SENATOR HAMILTON:   I see in the 

24   bill we put a lot of emphasis on the teachers and 

25   turning schools around.  But I want to get to the 


                                                               1820

 1   point -- there seems to be no emphasis on the 

 2   State Education Department on turning the system 

 3   around.  

 4                Right now we have black and Hispanic 

 5   students only graduating at a 60 percent ratio.  

 6   Only 15 percent of black and Hispanic students 

 7   are ready for college.  So we are putting 

 8   emphasis on the teachers, but we're not putting 

 9   emphasis on the person or the entity that's in 

10   charge of the State Education Department.  

11                So my question is, how much time do 

12   we give the State Education Department to turn 

13   around the system?  

14                SENATOR FLANAGAN:   Well, I would 

15   respectfully suggest that if it were only the 

16   State Education Department alone, that that would 

17   be a completely different story.  

18                But the State Education Department 

19   is funded by the State of New York as well as the 

20   federal government, so it's a shared 

21   responsibility that extends to the Governor, the 

22   Senate and the Assembly, and frankly, by 

23   extension, stakeholders throughout the State of 

24   New York.  That includes superintendents, 

25   teachers, administrators, students as 


                                                               1821

 1   ambassadors, PTAs, school boards.  

 2                So there's a lot of people involved 

 3   in this process, and I would not -- I don't want 

 4   to nor would I rest that sole responsibility on 

 5   the State Education Department.

 6                SENATOR HAMILTON:   Would the 

 7   sponsor please yield to a question?  

 8                SENATOR FLANAGAN:   Yes.

 9                ACTING PRESIDENT GRIFFO:   The 

10   sponsor yields.

11                SENATOR HAMILTON:   There has to be 

12   some accountability somewhere, and it starts from 

13   the top.  And I know we have stakeholders that 

14   are part of the system.  But if we're going to 

15   put emphasis on teachers that are not performing 

16   well, we have to put emphasis on the people who 

17   are at the top of delivering the curriculum, on 

18   delivering evaluating teachers.  

19                So if we have a system that's 

20   failing us, how much time do we give a 

21   commissioner as far as turning the system around, 

22   when we know every year of a child's life is 

23   important?  

24                So the question is how many years -- 

25   if the children are failing, if only 15 percent 


                                                               1822

 1   of black and Hispanic kids are ready for college, 

 2   how much time should we give the commissioner to 

 3   turn the system around at least to get them to 

 4   50 percent?  Or even less.  To get them at, say, 

 5   30 percent, how much time should we give the 

 6   commissioner for that, Senator?  

 7                SENATOR FLANAGAN:   Well, Senator 

 8   Hamilton, the first thing I'd like to do is get a 

 9   commissioner.  We might be in a better spot if we 

10   had a commissioner --

11                SENATOR HAMILTON:   Good point.  

12   Good point.

13                SENATOR FLANAGAN:   -- which is the 

14   charge of the Regents and the State Education 

15   Department.  

16                And I believe that you could look at 

17   any one of these issues or any day and make it a 

18   snapshot in time.  There are a variety of factors 

19   that affect what the State Education Department 

20   does.  

21                And I can tell you, while he's now 

22   down in Washington, I had many, many 

23   conversations with former Commissioner King about 

24   education, educational policy.  

25                I've spoken with Senator Robach, my 


                                                               1823

 1   colleague who represents Rochester, about the 

 2   graduation rates of black and Hispanic males in 

 3   the City of Rochester.  

 4                I live on Long Island; I'm troubled 

 5   by that.  And I think we all share that, not only 

 6   that concern but that responsibility.

 7                But, Senator Hamilton, since you've 

 8   asked me a few questions, I would wonder -- 

 9   Mr. President, through you -- if you would yield.

10                SENATOR HAMILTON:   Yes, I would, 

11   Senator.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Hamilton yields.

14                SENATOR FLANAGAN:   Senator 

15   Hamilton, we had an occasion recently to visit 

16   with the New York State Assembly on a joint 

17   legislative session that involved the election of 

18   new Regents.  Did you attend that session?

19                SENATOR HAMILTON:   Yes.

20                SENATOR FLANAGAN:   And --

21                SENATOR HAMILTON:   I supported -- I 

22   supported Lester Young, from Brooklyn, who has 

23   been in the forefront of educating young black 

24   men in our community in Central Brooklyn.  

25                And also for Mrs. Cashin, also, who 


                                                               1824

 1   was around when I was on the school board who 

 2   helped us keep the fifth best school in New York 

 3   State, the Crown School for Law and Journalism.  

 4   So yes, to answer your question.  

 5                SENATOR FLANAGAN:   So would it be 

 6   fair -- Mr. President, through you -- Senator 

 7   Hamilton, did you support all the Regents 

 8   appointments?  

 9                SENATOR HAMILTON:   Did I support 

10   all the Regents appointments?  I guess I did 

11   support all the Regents appointments.  Yes, I 

12   did.

13                SENATOR FLANAGAN:   Okay, so would 

14   you -- Mr. President, through you.

15                ACTING PRESIDENT GRIFFO:   Senator 

16   Hamilton, do you yield?

17                SENATOR FLANAGAN:   Senator 

18   Hamilton, would you concur, then, that the 

19   Regents play a significant role and that they are 

20   essentially the body that sets up educational 

21   policy in the State of New York?  

22                SENATOR HAMILTON:   Can you please 

23   repeat the question, please?  I didn't hear it.  

24                SENATOR FLANAGAN:   Would you agree 

25   that the Regents play a pivotal role in education 


                                                               1825

 1   in New York, particularly in light of the fact 

 2   that they set educational policy? 

 3                SENATOR HAMILTON:   Yes, they do 

 4   play a pivotal role.  And of the people who were 

 5   voted in this year, four were new.  And they do 

 6   it for free, yes, they do.  

 7                But you're switching the issue here 

 8   of going from the State Education Department and 

 9   the time it takes for them to turn around the 

10   system.  If we're doing it for schools at two 

11   years and they go into receivership, how much 

12   time do we give to the State Education Department 

13   so they can go into some type of receivership so 

14   our children can get an education and be able to 

15   be productive citizens in our state?  

16                SENATOR FLANAGAN:   Mr. President, 

17   through you.  Senator Hamilton, are you 

18   suggesting that the State Education Department be 

19   placed in receivership?  

20                SENATOR HAMILTON:   No, I do not, 

21   Senator Flanagan.  What I'm saying is we have to 

22   put time limits on failing educators, failing 

23   State Education Departments {sic} who are not 

24   serving our children in this state.  And if we're 

25   doing it for the schools, we should do it for the 


                                                               1826

 1   State Education Department when we do get a 

 2   commissioner.  

 3                But at some point in time we have to 

 4   have a limitation on failure at the top of the 

 5   educational system.

 6                SENATOR FLANAGAN:   Mr. President, 

 7   through you.  Senator Hamilton, you represent the 

 8   City of New York, and I certainly understand that 

 9   and respect that.

10                SENATOR HAMILTON:   Yes.

11                SENATOR FLANAGAN:   Do you believe 

12   that the mayor and the City Council play a 

13   significant role in educational policy in the 

14   City of New York?  

15                SENATOR HAMILTON:   Under -- yes, 

16   under the old policy, Mayor Bloomberg had the 

17   system for 12 years, and it's failing.  That's 

18   why I believe we have to have a holistic way of 

19   educating our children, with parents, 

20   stakeholders in the community and the school 

21   system working together.  Not just a top-down 

22   approach, but from a bottom-up approach, because 

23   the parents know what's best for their children.  

24                A parent living in Brooklyn should 

25   not have to go to Manhattan to find out what's 


                                                               1827

 1   going on with their child.  So I'm not for 

 2   mayoral control in New York City, I'm for having 

 3   parents and all the stakeholders in our community 

 4   effecting the change and making sure our children 

 5   learn.

 6                SENATOR FLANAGAN:   So I just want 

 7   to make sure I understand.  Are you saying you're 

 8   opposed to mayoral control?  

 9                SENATOR HAMILTON:   I say I'm 

10   opposed to it the way that mayoral control is set 

11   up right now, yes, I am.

12                SENATOR FLANAGAN:   So you would 

13   expect that we would have changes in the law?  

14                SENATOR HAMILTON:   Excuse me, is it 

15   my -- do I have a bill on the floor?  

16                ACTING PRESIDENT GRIFFO:   You 

17   asked -- Senator Hamilton, you have the floor.  

18   But you asked Senator Flanagan to yield --

19                SENATOR HAMILTON:   Yes, I will, I 

20   will answer the question, yes.  I'm sorry.

21                SENATOR FLANAGAN:   So let me ask on 

22   a parallel.  You believe that there are issues 

23   that the State Education Department has failed to 

24   address, and you are inquiring of me, to some 

25   extent, how long they should have to fix those 


                                                               1828

 1   issues.  

 2                I'm going to ask you a parallel.  

 3   You suggested that you are not enamored with 

 4   mayoral control as it exists.  How long do you 

 5   believe the mayor should have to make the changes 

 6   that you're talking about, since the mayor wants 

 7   mayoral control and the graduation rates are not 

 8   at the level that anyone believes they should be, 

 9   including the mayor?  

10                SENATOR HAMILTON:   Well, to answer 

11   your question, Senator Flanagan, that's why I'm 

12   not for total mayoral control.  I believe we 

13   should go back to the school boards, who have 

14   three-year terms.  And with those three-year 

15   terms, if the school board is not being 

16   productive in educating our children, they will 

17   be voted out of office.  

18                The same way I think we should have 

19   three-year terms or a three-year period of 

20   analyzation for the commissioner in the State 

21   Education Department to see if they can make a 

22   turnaround in the school system.  And if they 

23   can't, then we need to get someone else.

24                SENATOR FLANAGAN:   Okay.  So, 

25   Mr. President, through you, if Senator Hamilton 


                                                               1829

 1   would continue to yield.

 2                ACTING PRESIDENT GRIFFO:   Senator 

 3   Hamilton, do you yield?  

 4                SENATOR HAMILTON:   Yes, I will 

 5   answer the question.

 6                SENATOR FLANAGAN:   The Board of 

 7   Regents hires the commissioner.  Senator 

 8   Hamilton?  

 9                SENATOR HAMILTON:   Yes.

10                SENATOR FLANAGAN:   The Board of 

11   Regents hires the commissioner.  Are you 

12   suggesting that there be a three-year contract 

13   period for the commissioner, whomever that person 

14   may be?  

15                SENATOR HAMILTON:   No, I -- I -- 

16   Senator Flanagan, I believe the question was how 

17   much time should we give the mayor of New York 

18   City to be at the head of the school system.  

19                And you asked me was I for mayoral 

20   control, and I said I'm for mayoral control but 

21   not in its present form.  And I said that we 

22   should go back to having school boards, which are 

23   elected by the people and responsive to the 

24   people, with three-year terms.

25                SENATOR FLANAGAN:   Okay, 


                                                               1830

 1   Mr. President, through you.  What I heard, part 

 2   of your answer was that the commissioner should 

 3   be under a three-year review.  So I'm just trying 

 4   to make sure -- see, I believe differently.  

 5                I believe that the Board of Regents 

 6   should have the wherewithal to remove a 

 7   commissioner who's not fulfilling their duties 

 8   and responsibilities.  So I don't believe in a 

 9   contract.  And the Board of Regents is the 

10   management team for the State Education 

11   Department.  

12                But I appreciate Senator Hamilton's 

13   indulgence.

14                ACTING PRESIDENT GRIFFO:   Senator 

15   Hamilton, do you want to continue on the bill?

16                SENATOR HAMILTON:   Yes, I would 

17   like to continue on the bill.  But due to time, I 

18   just want to thank Senator Flanagan for your time 

19   in answering the questions.  

20                And I just want to end in just 

21   saying I'm not voting for this bill.  I think the 

22   teachers are being scapegoated and it's going to 

23   drive good teachers away from school districts 

24   that are low-performing for being in fear of 

25   losing their jobs.


                                                               1831

 1                And I just want to say -- I want to 

 2   congratulate -- this is the last day of Women's 

 3   History Month, and I want to congratulate the 

 4   women of Seneca Falls who in 1848 had the first 

 5   suffrage meeting here in New York State.  And it 

 6   took 70 years later for women to get the right to 

 7   vote, in August of 1920.  And now we're almost a 

 8   hundred years from when the women had the right 

 9   to vote in this great country, and our great 

10   leader, Andrea Stewart-Cousins, is still not the 

11   room.  Hopefully, within a hundred years of women 

12   having the right to vote, we would have a woman 

13   in the room making decisions.  

14                And because Andrea Stewart-Cousins, 

15   who is representing 8 million people, was not 

16   part of the process, I cannot support this bill.  

17   And I just hope that we can have a woman making 

18   history in this great room, being part of the 

19   good old boy network.  

20                Thank you very much.

21                ACTING PRESIDENT GRIFFO:   Senator 

22   Breslin.

23                SENATOR BRESLIN:   Thank you, 

24   Mr. President.  On the bill.

25                ACTING PRESIDENT GRIFFO:   Senator 


                                                               1832

 1   Breslin on the bill.

 2                SENATOR BRESLIN:   I will be very 

 3   short, as the time is late and time is short.

 4                When I first got to the Senate, I 

 5   had many teachers and principals from New York 

 6   City telling me about the conditions of their 

 7   schools.  I thought they were, at best, 

 8   apocryphal -- until I went down and visited.  And 

 9   what I found were schools that had coal-burning 

10   stoves, asbestos, doors locked, kids who ran from 

11   class to class because they didn't have a seat in 

12   the next class, books that were out of date, half 

13   the teachers not certified.  And I could go on 

14   and on.  And we were effectively denying hundreds 

15   of thousands of kids every year the right to an 

16   education.

17                That was the genesis of the CFE 

18   decision.  And after the CFE decision by the 

19   Court of Appeals, there was an order of payments 

20   to bring those schools up to par.  That order has 

21   been violated year after year after year after 

22   year.  

23                And now it's moved north.  There's a 

24   small-city case that was just concluded in Albany 

25   that will cover a lot of the small cities outside 


                                                               1833

 1   the CFE district.  A decision not yet been 

 2   rendered.  I assume, based on the precedent of 

 3   New York, it will be essentially the same and 

 4   will have that same condition.  

 5                And what do we do?  Day after day, 

 6   by this legislation and by our conduct over the 

 7   number of years since the CFE decision, is first 

 8   blame the kids and then blame their teachers, and 

 9   put harsh conditions upon them through testing 

10   and evaluations.

11                I believe it's time to stop, 

12   recognize the problem.  I now have five cities in 

13   my district, cities with problems that I saw some 

14   15 years ago in New York City.  The problems of 

15   we need smaller class sizes, we need to take care 

16   of mental health, we need to take of care of 

17   physical health.  We have disruptive kids, we 

18   need those smaller class sizes with some 

19   additional assistance.

20                And without the dollars, it doesn't 

21   work.  And we have to stop blaming the teachers 

22   and the students, come up with the dollars, use 

23   them effectively, and it makes the difference.

24                I've visited schools in the five 

25   cities I represent -- in Troy, Rensselaer, 


                                                               1834

 1   Watervliet, Cohoes and Albany -- and they all 

 2   have similar problems.  And you see those kids 

 3   that could be so effective, and we're denying 

 4   them the opportunities to continue on, get a good 

 5   education, and not be a burden on our society.  

 6   And it's a problem that we can solve, and it 

 7   costs too much not to solve it.

 8                Thank you, Mr. President.  I'll be 

 9   voting in the negative.  

10                ACTING PRESIDENT GRIFFO:   Thank 

11   you, Senator Breslin.

12                Senator Krueger.

13                SENATOR KRUEGER:   Good evening, 

14   Mr. President.  I will not ask any questions, 

15   given the lateness the time frame for this budget 

16   bill.

17                ACTING PRESIDENT GRIFFO:   Senator 

18   Krueger on the bill.

19                SENATOR KRUEGER:   Thank you.

20                So the Regents called for a 

21   $2 billion increase in education aid.  We're 

22   getting $1.3 billion, substantially less.  

23                I've actually immensely enjoyed the 

24   debate here this evening around the Governor's 

25   proposed changes in how to evaluate teachers and 


                                                               1835

 1   how to give them tenure and when to fire them.  

 2   It's sort of amazing to me that the first 

 3   discussion we're having like this is the night 

 4   the budget must be passed.  This is one of the 

 5   last bills to come out and be introduced to us 

 6   with a message of necessity.  

 7                It's extraordinarily complicated 

 8   issues.  And we keep dumbing down our own 

 9   assignment.  We just keep defaulting to more 

10   teach to test, test more, punish for failure in 

11   tests, everybody -- teachers, parents, children.  

12   Don't ask the questions what is working in 

13   education, only criticize and attack.

14                I am incredibly proud of the fact 

15   that I come from New York City.  District 2 

16   schools in Manhattan, parents are fighting to get 

17   their children into our schools.  So for all the 

18   horror stories, let me just remind you New York 

19   City also has some of the best schools in the 

20   nation.

21                But there is of course a correlation 

22   between money available for schools, for 

23   students, the poverty reality of the students 

24   coming to school, the need for special services 

25   if English is their first language, if they have 


                                                               1836

 1   special needs which disproportionately, if they 

 2   live in poverty, they will have.  

 3                And it doesn't really seem like any 

 4   of the proposed changes in this bill will address 

 5   any of that.  It certainly will scare teachers 

 6   away from ever wanting to work in schools with 

 7   poor students or special-needs children.  They'll 

 8   probably be delighted to work in my district, 

 9   where in fact I have disproportionately middle- 

10   and high-middle-income children coming from 

11   families with very high attainment and 

12   educational levels already.  

13                In fact, if you look at the private 

14   schools in my district, they're all running away 

15   from testing and saying we have to get back to 

16   focusing on one size does not fits all and 

17   children need art and music and creativity and to 

18   be able to learn at their own pace in unique 

19   ways.  And then I watch our public schools being 

20   told:  Never let that happen.

21                And if this bill, if it becomes law, 

22   which I guess it will, will increase not only 

23   that structure to test, to test, to test, to die, 

24   but it will also expand on the inequity between 

25   school systems with families and resources who 


                                                               1837

 1   recognize that's just the opposite of what 

 2   they're doing for their own children.

 3                So I do think the discussion is 

 4   seriously worthy of much longer and extended 

 5   evaluation.  I do not believe that this proposal 

 6   tonight in this bill will result in anything good 

 7   for education or our children.  I've watched now 

 8   in the I guess 13 years I've been in the Senate 

 9   as New York City went into mayoral control and 

10   then we had a series of changes by our previous 

11   mayor.  I watched constant change, everybody 

12   always had a new answer -- except it just kept 

13   meaning more testing and not necessarily any 

14   better outcomes.  

15                So I think the rush to say now we 

16   have it down, we'll make all these changes, it 

17   will get better -- I do not believe it will.

18                I also, like many of my colleagues, 

19   am particularly disturbed at what's not here in 

20   this budget tonight.  A minimum wage increase 

21   would have had the most significant impact of 

22   anything we could do in our budget this year, 

23   including significance for families with children 

24   living in poverty.  Because if anyone thinks you 

25   can focus on school if your family is facing 


                                                               1838

 1   eviction or you're not sure what you're going to 

 2   get for dinner tonight, you don't understand 

 3   poverty.

 4                And my colleagues have also waxed 

 5   poetic about their frustration about the fact 

 6   that the DREAM Act is yet again not in a budget 

 7   this year.  And it really has no negative impact 

 8   on anyone else.  It just means children will be 

 9   able to grow up, go to college, get better jobs 

10   and be taxpayers.

11                I don't know the history of everyone 

12   in this chamber.  I'm the grandchild of 

13   immigrants.  My grandfather came here at the age 

14   of 10, ended up going to public university for 

15   free.  He had no papers, he was escaping the 

16   pogroms of Russia.  He then signed up to be a 

17   soldier in World War I at the age of 16 -- no, 

18   I'm sorry, 17, because he did finish college 

19   first, by 17.  He then completed his military 

20   duty in World War I and went off to be one of the 

21   first Jews to graduate Harvard Law School.  

22                He wasn't legal.  He got an 

23   education.  He did everybody proud.  That's all 

24   anyone is asking for with the DREAM Act.  

25                And the ethics.  You know, more 


                                                               1839

 1   disclosure, more transparency really isn't going 

 2   to be a game-changer for the problems up here.  

 3   And ironically, the transparency doesn't even go 

 4   into effect until 2017.  Seriously not a 

 5   game-changer.

 6                But the campaign finance, the LLC 

 7   loophole closing, the rules about limitations on 

 8   income and how you get it, those all disappeared.

 9                So I'll be voting no on this bill 

10   for any number of reasons -- no minimum wage, no 

11   DREAM Act, bad education policy, and not even a 

12   half a loaf on ethics.

13                So I wish we were dealing with a 

14   different bill.  I wish we were having more 

15   substantive discussions about all these issues.  

16   But we just get that one vote on this bill.  So 

17   I'll be voting no, Mr. President.

18                ACTING PRESIDENT GRIFFO:   Senator 

19   Stewart-Cousins.

20                SENATOR STEWART-COUSINS:   Thank 

21   you, Mr. President.  On the bill.

22                ACTING PRESIDENT GRIFFO:   Senator 

23   Stewart-Cousins on the bill.

24                SENATOR STEWART-COUSINS:   You know, 

25   I preface my remarks by saying that I am a 


                                                               1840

 1   product of public school education.  I have had 

 2   the opportunity to teach in public schools.  My 

 3   children attended public schools.  My 

 4   grandchildren attend public schools.

 5                One of the great motivators of 

 6   running for the Senate was because of the impact 

 7   that I know the state has on education and how 

 8   much had to be done.  And I really, really 

 9   believed that we would be able to make that 

10   difference.

11                This budget and its approach is 

12   really, really -- frankly, I think all of my 

13   colleagues have spoken so eloquently about it.  

14   But I think of it in terms of my district, as we 

15   all think in terms of our own districts.

16                I have Yonkers and White Plains and 

17   New Rochelle and Greenburgh and Scarsdale.  And 

18   there couldn't be more stark differences between 

19   some of these school districts.  I have 

20   Scarsdale, which is an extremely high-performing 

21   school, probably one of the highest-performing 

22   schools in the nation.  And Yonkers, according to 

23   what we have been told, has at least 7 so-called 

24   failing schools.

25                The thing that brought these 


                                                               1841

 1   different pieces of my district together was the 

 2   Common Core conversation.  That Common Core 

 3   conversation -- of not whether there should be a 

 4   a Common Core, because I think most of us 

 5   understand why standards matter and why we should 

 6   know what achievements our children have.  What 

 7   brought all of these people together was the 

 8   implementation of Common Core.  What brought all 

 9   of them together was the rush to get it done so 

10   that we could get to the Race to the Top money so 

11   that we could proceed to make sure that we proved 

12   that we could do it better than everybody.

13                And as the rollout occurred, and as 

14   we had the listening tours with the -- you 

15   remember the Regents and everyone else coming all 

16   together, parents in my district flocked to beg, 

17   beg for a reprieve for their children, for their 

18   children's teachers.  Not because they didn't 

19   want Common Core, but they didn't want an 

20   expeditious implementation of an untested 

21   mechanism to be able to dictate the future of 

22   their children and the future of their children's 

23   teachers.

24                And at the end of the day, we all 

25   realized, listening to all of our parents, how we 


                                                               1842

 1   needed to move this back.  And we said our 

 2   children will be exempt from the negative impacts 

 3   of the testing.  But we all agree that there's 

 4   far too much testing going on.  We want our kids 

 5   to have fun while they learn.  It shouldn't be 

 6   the place you go to take a test.

 7                Now, here I am looking at a budget 

 8   that says that how our teachers will be rated 

 9   will be created under the authority of the 

10   commissioner of the State Department of 

11   Education.  

12                And I know Senator Flanagan 

13   mentioned, and we all know, we don't actually 

14   have a commissioner right now.  We've got an 

15   acting commissioner.  And this person has until 

16   June 30th of 2015 to now put together the 

17   evaluation system that's going to rate the 

18   teachers that are going to teach our kids.

19                And this person is going to be able 

20   to consult with experts and practitioners in the 

21   fields of education, economics, and psychometrics 

22   and take considerations of some of the parameters 

23   that were in a letter to the chancellor and the 

24   Board of Regents.  And they're going to consult 

25   in writing with the Secretary of the United 


                                                               1843

 1   States, Arne Duncan, as to what exactly happens.

 2                I don't know about you, but I've 

 3   been down this road.  I understand what faulty 

 4   and fast implementation does.  And I don't blame 

 5   our teachers, who are sitting in classrooms, 

 6   sometimes overcrowded, sometimes underresourced, 

 7   trying to teach children who are now going to 

 8   have to depend on people putting this together in 

 9   a couple of months without, I'm sorry, the 

10   department commissioner in place.

11                Now, that's the global.  And then I 

12   have the City of Yonkers, one of those places 

13   that out of all of my district that has, yes, 

14   these failing schools, all in the same geographic 

15   area.  All of those people have spoken about the 

16   impacts of poverty and all of the things -- 

17   English language learners, all of these things.

18                The superintendent, the mayor comes 

19   begging for $89 million; they'll take 50, of 

20   course.  There's nothing like that in this 

21   budget.  The Assembly, to their credit, was able 

22   to get some capital money for the city.  But as 

23   of right now this district, with these failing 

24   schools, is looking at how to proceed with a 

25   school district that still doesn't have music, 


                                                               1844

 1   still doesn't have art, still doesn't have JV, 

 2   and does not know how any of these things will 

 3   happen -- but they do know that their teachers 

 4   will now have a new system of tests to figure out 

 5   whether or not they're effective.

 6                I need -- and so many of us with 

 7   these failing so-called schools and these kids 

 8   who are struggling, we need to find an answer for 

 9   those children.  We need to divert the resources 

10   to those children.  We need to make sure that 

11   when we stand here and suggest we are passing a 

12   budget that is going to help our education system 

13   because there's more money and so on, that we are 

14   at least wrapping around those children who at 

15   this point are waiting desperately for us to do 

16   something.

17                I won't be voting for this budget.

18                ACTING PRESIDENT GRIFFO:   Senator 

19   Klein.

20                SENATOR KLEIN:   Thank you, 

21   Mr. President.

22                I'm going to speak on the ethics 

23   portion of the bill.

24                ACTING PRESIDENT GRIFFO:   Senator 

25   Klein on the bill.


                                                               1845

 1                SENATOR KLEIN:   First and foremost, 

 2   I want to thank my colleagues, especially the 

 3   colleagues on the Republican side of the aisle, 

 4   who I know worked very, very hard, especially the 

 5   practicing attorneys, in fashioning a bill that 

 6   will truly reform our system when it comes to 

 7   outside income.  

 8                I know I had many conversations with 

 9   a lot of the members, and I know specifically 

10   Senator Lanza I know worked very, very hard in 

11   trying to come up with something that would 

12   certainly meet the standards of ethics reform.

13                I also want to thank my colleague 

14   Senator Hoylman, who introduced a piece of 

15   legislation which is reform model along the lines 

16   of Congress, which effectively bans outside 

17   income, especially the practice of law.

18                I have been in public life now for 

19   20 years, and I also remember very distinctly 

20   when I passed the bar.  I think many of us can 

21   always reflect on sort of memorable occasions in 

22   our lives, times we kind of never forget.  And 

23   certainly one of the two proudest moments in my 

24   life was when I was admitted to the bar and when 

25   I was elected to public office for the first time 


                                                               1846

 1   20 years ago.  Those two memories I think shaped 

 2   who I am today.

 3                But I think a public official learns 

 4   very quickly that serving the public is a 

 5   full-time job.  And over the years, my 

 6   constituents always come first.

 7                As I said before, I know a lot of my 

 8   colleagues, just by their actions here and how 

 9   they speak up on legislation that they care 

10   about, how they serve their constituents, 

11   especially my Republican colleagues.  I can only 

12   imagine how they treat the practice of law and 

13   how they treat their clients.  I understand that 

14   they find that responsibility a very important 

15   one.  You owe a very special duty to a client.  

16   You owe them a very special duty to handle their 

17   cases to the best of your ability.

18                So I know the disclosure laws that 

19   are put forth today are probably some of most 

20   effective in the country when it comes to 

21   disclosure.  But I think in recent weeks, and 

22   especially over the past year, outside income, 

23   unfortunately, has casted a taint on both houses 

24   of the State Legislature.  I believe right now 

25   our future is really in jeopardy.  


                                                               1847

 1                And I've always been someone who's 

 2   prided myself on looking to negotiate, looking to 

 3   compromise.  I firmly believe that compromise is 

 4   not a dirty word.  It's a function of government, 

 5   it's a function of the real world.  But you know 

 6   something?  When it comes to outside income, when 

 7   it comes to the practice of law, when it comes to 

 8   representing my constituents, I think we have to 

 9   make one choice.  And I think that choice is a 

10   full ban on outside income.

11                As I said before, I firmly believe 

12   that the current climate in Albany leaves public 

13   officials with a simple choice:  Serve the public 

14   who elected you on a full-time basis, or keep a 

15   full-time career out of office.

16                As I said, my career in the law has 

17   meant an awful lot to me.  I worked my way 

18   through law school, worked for two members of 

19   Congress, served as chief of staff to both.  I 

20   founded a small law practice in the Bronx with 

21   two law school buddies.  We did wills, we did 

22   estates, it was a family sort of practice, 

23   neighborhood practice.

24                But I think at the same time, as 

25   much as I cared about the practice of law, the 


                                                               1848

 1   most that I cared about handling individual 

 2   clients, I think right now this is sort of a 

 3   crossroads.  And I think the message we have to 

 4   send right now to the public must be clear.  We 

 5   are lawmakers, and we are not above the law.  

 6                And while I think the disclosure 

 7   requirements, having to actually go to OCA and 

 8   have them sort of spot a conflict before it 

 9   exists, probably would be something -- in a 

10   different time, that would solve our problem.  

11   But I don't think I am exaggerating when I think 

12   we're going to be back here a month from now, a 

13   year from now, dealing with the same type of 

14   problem over and over and over.

15                So I think the only way we can 

16   effectively handle that is to ban outside income 

17   and become a full-time legislature.  I vote no on 

18   this legislation, Mr. President.

19                ACTING PRESIDENT GRIFFO:   Seeing 

20   and hearing no other Senator that wishes to be 

21   heard, debate is closed, and the Secretary will 

22   ring the bell.

23                The Secretary will read the last 

24   section.

25                THE SECRETARY:   Section 3.  This 


                                                               1849

 1   act shall take effect immediately.

 2                ACTING PRESIDENT GRIFFO:   Call the 

 3   roll.

 4                (The Secretary called the roll.)

 5                ACTING PRESIDENT GRIFFO:   I'm going 

 6   to have Senator Kennedy explain his vote.  And 

 7   remind the members of Rule 10(3)(e), that we'll 

 8   have a two-minute limit.

 9                Senator Kennedy.

10                SENATOR KENNEDY:   Thank you, 

11   Mr. President.  

12                We started this year with all eyes 

13   on Albany and on an issue that's been delayed far 

14   too long, comprehensive ethics reform.  And the 

15   bill we have before us today falls woefully short 

16   of what would restore the public's trust in 

17   government.

18                We're not holding our legislative 

19   body accountable for the reform promises made 

20   just a few months ago.  Further action is still 

21   needed to place limits on outside income and 

22   close the LLC loophole if we want to truly move 

23   toward regaining public trust at the Capitol.  We 

24   must advance serious reforms until we get it 

25   right.  


                                                               1850

 1                And on education, I don't think 

 2   there's a legislator among us who would not agree 

 3   our education system is in need of reform.  But 

 4   this is simply not the way to go about it.  We 

 5   cannot gamble with state aid district by district 

 6   based on a brand-new and untested evaluation 

 7   system that was cobbled together at the last 

 8   minute.  

 9                Never before have we expected 

10   schools to implement such a system in such a 

11   short period of time.  It's been difficult enough 

12   as districts waited for their school aid runs, 

13   but this places an even more dire, undue burden 

14   upon them.  

15                And of course the students are the 

16   ones caught in the middle of this.  They're the 

17   ones who are punished if the teachers and school 

18   districts can't agree on evaluation systems.  

19   They're the ones who will lose out on an 

20   education.  They're the ones who we will have 

21   failed.  

22                Over the past month I've visited 

23   several schools in Buffalo, Cheektowaga, 

24   Lackawanna, throughout Western New York.  If the 

25   teachers and school districts can't agree on the 


                                                               1851

 1   evaluation systems and the ones that are put in 

 2   place, the kids are going to lose out on the 

 3   programs that we're trying to implement here.  

 4                We are worried about the schools and 

 5   the direction of education in New York State.  

 6   Together, we can help these students.  We've made 

 7   incredible strides to help bring school funding 

 8   back by undoing some of the damaging effects of 

 9   the Gap Elimination Adjustment.  But our schools 

10   still lack the full funding they deserve.  And 

11   the proposal to allow a state takeover and --

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Kennedy --

14                SENATOR KENNEDY:   -- eventual 

15   privatization of what's being deemed failing 

16   schools doesn't even appear to provide --

17                ACTING PRESIDENT GRIFFO:   Senator 

18   Kennedy, how do you vote?  

19                SENATOR KENNEDY:   -- the funding 

20   that some of the schools in the City of Buffalo 

21   desperately need.  

22                On behalf of students, teachers, 

23   educated taxpayers across Western New York and 

24   New York State, Mr. President, I vote no.

25                ACTING PRESIDENT GRIFFO:   Senator 


                                                               1852

 1   Kennedy to be recorded in the negative.

 2                Senator DeFrancisco to explain his 

 3   vote.

 4                SENATOR DeFRANCISCO:   It's nice to 

 5   hear such passion --

 6                ACTING PRESIDENT GRIFFO:   Let's 

 7   have some order, please.

 8                SENATOR DeFRANCISCO:   It's nice to 

 9   hear such passion as this late hour.  And I hope 

10   I don't get as passionate.  

11                But I think the comments by Senator 

12   Hoylman during the debate were really out of 

13   line, basically saying that the problem in this 

14   chamber or in the Legislature are lawyers.  Well, 

15   there are good lawyers, there are bad lawyers.  

16   There are lawyers who go to Harvard, and there 

17   are lawyers that are fortunate enough to go to 

18   Duke.

19                (Laughter.)

20                SENATOR DeFRANCISCO:   And every 

21   single one of them --

22                ACTING PRESIDENT GRIFFO:   Senator 

23   Hoylman, why do you rise?  We're on explanation 

24   of votes.  I'd ask members to sit down.  

25                Senator DeFrancisco, you can explain 


                                                               1853

 1   your vote.  Please do not refer to any member by 

 2   name.  Please continue.

 3                SENATOR DeFRANCISCO:   Okay, I won't 

 4   refer to him by name, then.

 5                But the fact of the matter is we're 

 6   glowing over a $5.4 billion surplus because of 

 7   good, solid, ethical lawyering.  

 8                And because you're a lawyer doesn't 

 9   mean you're a corrupt lawyer.  There are corrupt 

10   lawyers, there are corrupt businessmen, there are 

11   corrupt teachers, there are corrupt everything.  

12   There's good and there's bad.  To suggest that 

13   the problem is lawyers is outrageous.  There have 

14   been lawyers in legislative bodies for years, 

15   since the beginning of this government, who have 

16   made great contributions to this country.  

17                So if an individual is ethical, 

18   follows the rules as they existed, we should not 

19   eliminate a class of people and end up with a 

20   class that's excluded.  We hear a lot about 

21   discrimination in this body --

22                ACTING PRESIDENT GRIFFO:   Senator 

23   DeFrancisco, how do you vote?

24                SENATOR DeFRANCISCO:   I vote in a 

25   minute.


                                                               1854

 1                (Laughter.)

 2                ACTING PRESIDENT GRIFFO:   Senator 

 3   DeFrancisco.  Senator DeFrancisco.  

 4                SENATOR DeFRANCISCO:   And I'm just 

 5   finishing this sentence.  And to discriminate by 

 6   those who are so heavily against discrimination 

 7   is outrageous.  

 8                This bill will work, and lawyers 

 9   should not be excluded.  They should be 

10   complimented when they do a good job.  They 

11   should be prosecuted if they act criminally, just 

12   like anybody else in this body.  

13                Thank you.

14                ACTING PRESIDENT GRIFFO:   Senator 

15   DeFrancisco to be recorded in the affirmative.

16                Senator Hoylman.

17                SENATOR HOYLMAN:   Mr. President, 

18   I'll be voting no because if this Legislature 

19   does become full-time, I will remain in this 

20   Legislature as a lawyer, just not as a practicing 

21   attorney who has private clients, profiting on 

22   the side.

23                So I vote no.  Thank you, 

24   Mr. President.

25                ACTING PRESIDENT GRIFFO:   Senator 


                                                               1855

 1   Hoylman to be recorded in the negative.

 2                Announce the results.

 3                THE SECRETARY:   In relation to 

 4   Calendar 316, those recorded in the negative are 

 5   Senators Addabbo, Breslin, Comrie, Dilan, 

 6   Espaillat, Gianaris, Hamilton, Hassell-Thompson, 

 7   Hoylman, Kennedy, Klein, Krueger, Latimer, 

 8   Montgomery, Panepinto, Parker, Peralta, Perkins, 

 9   Rivera, Sampson, Sanders, Savino, Serrano, 

10   Squadron, Stavisky and Stewart-Cousins.

11                Ayes, 36.  Nays, 26.

12                ACTING PRESIDENT GRIFFO:   The bill 

13   is passed.  

14                Senator LaValle.

15                SENATOR LaVALLE:   Mr. President, 

16   can we go to Supplemental Calendar 28A and return 

17   to Calendar Number 314.

18                ACTING PRESIDENT GRIFFO:   Senator 

19   LaValle, we will return to Supplemental Calendar 

20   28A, Calendar Number 314, on which debate had 

21   been closed and the bill was temporarily laid 

22   aside awaiting a message.

23                SENATOR LaVALLE:   Is there a 

24   message of necessity at the desk?  

25                ACTING PRESIDENT GRIFFO:   There is 


                                                               1856

 1   a message of necessity now at the desk.

 2                SENATOR LaVALLE:   I move to accept 

 3   the message.

 4                ACTING PRESIDENT GRIFFO:   All in 

 5   favor of accepting the message signify by saying 

 6   aye.

 7                (Response of "Aye.")

 8                ACTING PRESIDENT GRIFFO:   Opposed?  

 9                (No response.)

10                ACTING PRESIDENT GRIFFO:   The 

11   message of necessity has been accepted and the 

12   bill is before the house.  Debate has been 

13   closed.  

14                The Secretary will read the last 

15   section.

16                THE SECRETARY:   Section 2.  This 

17   act shall take effect immediately.

18                ACTING PRESIDENT GRIFFO:   Call the 

19   roll.

20                (The Secretary called the roll.)

21                ACTING PRESIDENT GRIFFO:   Senator 

22   Gianaris to explain his vote.

23                SENATOR GIANARIS:   Just to remind 

24   my colleagues, Mr. President, this is the bill we 

25   debated earlier in the night.  It was laid aside 


                                                               1857

 1   temporarily and we're now taking it up for the 

 2   vote.  It's the state operations bill.

 3                ACTING PRESIDENT GRIFFO:   Thank 

 4   you, Senator Gianaris.

 5                Announce the results.

 6                THE SECRETARY:   Ayes, 60.  Nays, 2.  

 7   Senators Parker and Perkins recorded in the 

 8   negative.

 9                ACTING PRESIDENT GRIFFO:   The bill 

10   is passed.

11                Senator LaValle.

12                SENATOR LaVALLE:   Can we go back to 

13   motions and resolutions.

14                ACTING PRESIDENT GRIFFO:   We will 

15   return to motions and resolutions.

16                SENATOR LaVALLE:   On behalf of 

17   Senator DeFrancisco, Mr. President, on page 

18   number 1 I offer the following amendments to 

19   Calendar Number 319, Senate Print Number 4612A, 

20   and ask that said bill retain its place on the 

21   Third Reading Calendar.

22                ACTING PRESIDENT GRIFFO:   The 

23   amendments are received, and the bill shall 

24   retain its place on third reading.

25                SENATOR LaVALLE:   Mr. President, 


                                                               1858

 1   can we now call a meeting of the Finance 

 2   Committee in Room 332.

 3                ACTING PRESIDENT GRIFFO:   There 

 4   will be an immediate meeting of the Finance 

 5   Committee in Room 332.

 6                The Senate will stand at ease.

 7                (Whereupon, the Senate stood at ease 

 8   at 9:58 p.m.)

 9                (Whereupon, the Senate reconvened at 

10   10:18 p.m.)

11                ACTING PRESIDENT GRIFFO:   The 

12   Senate will come to order.

13                Senator LaValle.

14                SENATOR LaVALLE:   Mr. President, is 

15   there a report of the Finance Committee at the 

16   desk?

17                ACTING PRESIDENT GRIFFO:   There is 

18   a report of the Finance Committee before the 

19   desk.

20                SENATOR LaVALLE:   I ask that it be 

21   read.

22                ACTING PRESIDENT GRIFFO:   The 

23   Secretary will read.

24                THE SECRETARY:   Senator 

25   DeFrancisco, from the Committee on Finance, 


                                                               1859

 1   reports the following bill:  

 2                Senate Print 4610A, Senate Budget 

 3   Bill, enacts various provisions of the law 

 4   necessary to implement.

 5                The bill is reported direct to third 

 6   reading.

 7                SENATOR LaVALLE:   Mr. President, I 

 8   move to accept the report.

 9                ACTING PRESIDENT GRIFFO:   All those 

10   in favor of accepting the Finance Committee 

11   report signify by saying aye.

12                (Response of "Aye.")

13                ACTING PRESIDENT GRIFFO:   Opposed?  

14                (No response.)

15                ACTING PRESIDENT GRIFFO:   The 

16   Finance Committee report has been accepted and is 

17   before the house.

18                SENATOR LaVALLE:   Mr. President.

19                ACTING PRESIDENT GRIFFO:   Senator 

20   LaValle.

21                SENATOR LaVALLE:   On our desks we 

22   have Supplemental Calendar 28C.  I move that we 

23   go to Calendar Number 317.

24                ACTING PRESIDENT GRIFFO:   The 

25   Secretary will read Calendar Number 317 from 


                                                               1860

 1   Supplemental Senate Calendar 28C, 

 2   noncontroversial.

 3                THE SECRETARY:   Calendar Number 

 4   317, Senate Print 4610A, Senate Budget Bill, an 

 5   act to amend Chapter 41 of the Laws of 1985.

 6                ACTING PRESIDENT GRIFFO:   Senator 

 7   LaValle.

 8                SENATOR LaVALLE:   Mr. President, is 

 9   there a message of necessity at the desk?  

10                ACTING PRESIDENT GRIFFO:   There is 

11   a message of necessity at the desk.

12                SENATOR LaVALLE:   I move we accept 

13   the message.

14                ACTING PRESIDENT GRIFFO:   All in 

15   favor of accepting the Governor's message of 

16   necessity indicate by saying aye.

17                (Response of "Aye.")

18                ACTING PRESIDENT GRIFFO:   Opposed?  

19                (No response.)

20                ACTING PRESIDENT GRIFFO:   The 

21   message of necessity has been accepted, and the 

22   bill is before the house.

23                SENATOR GIANARIS:   Lay it aside.

24                ACTING PRESIDENT GRIFFO:   Lay the 

25   bill aside.


                                                               1861

 1                SENATOR LaVALLE:   Can we now have 

 2   the controversial reading of Calendar Number 317.

 3                ACTING PRESIDENT GRIFFO:   The 

 4   Secretary will ring the bell, and the Secretary 

 5   will read.

 6                THE SECRETARY:   Calendar Number 

 7   317, Senate Budget Bill, Senate Print 4610A, an 

 8   act to amend Chapter 41 of the Laws of 1985.

 9                ACTING PRESIDENT GRIFFO:   Senator 

10   Gianaris.

11                SENATOR GIANARIS:   Mr. President, I 

12   believe there's an amendment at the desk.  I ask 

13   that the reading of the amendment be waived and 

14   that we call on Harvard lawyer Senator Hoylman to 

15   speak on the amendment.

16                (Laughter.)

17                ACTING PRESIDENT GRIFFO:   One 

18   second, please.

19                SENATOR GIANARIS:   Apparently it's 

20   arriving.  There's an amendment on its way to the 

21   desk, Mr. President.  And since the reading will 

22   be waived anyway --

23                ACTING PRESIDENT GRIFFO:   Senator 

24   DeFrancisco, why do you rise?

25                SENATOR DeFRANCISCO:   By the way, I 


                                                               1862

 1   want to object to Senator Gianaris mentioning a 

 2   member's name on the floor.

 3                (Laughter.)

 4                ACTING PRESIDENT GRIFFO:   Duly 

 5   noted.

 6                Senator Gianaris, there is an 

 7   amendment now before the desk.  And as I review 

 8   the amendment, I believe it is not germane to the 

 9   bill at hand and therefore out of order.

10                SENATOR GIANARIS:   I would like to 

11   appeal the ruling of the chair, and I would like 

12   to gratuitously mention Senator DeFrancisco's 

13   name, but then ask that Senator Hoylman be called 

14   on, on the appeal.

15                (Laughter.)

16                ACTING PRESIDENT GRIFFO:   Senator 

17   Hoylman, you are recognized on the appeal of the 

18   ruling of the chair.

19                SENATOR HOYLMAN:   Thank you, 

20   Mr. President.  

21                I contend my amendment to this 

22   legislation is germane because it does maintain 

23   the same purpose and addresses the same areas of 

24   law as the underlying bill, no matter where I 

25   went to law school.


                                                               1863

 1                Mr. President, the budget sweeps 

 2   $41 million from New York's Regional Greenhouse 

 3   Gas Initiative proceeds, directing $15 million to 

 4   prop up as window dressing to an increase in the 

 5   Environmental Protection Fund while dumping 

 6   $26 million into the General Fund for unspecified 

 7   purposes which could be used for anything -- 

 8   supporting tax credits for billionaires buying 

 9   airplanes, to take one example.  

10                My amendment, Mr. President, would 

11   create a lockbox, a lockbox for the RGGI funds, 

12   prohibiting the Legislature from inappropriately 

13   diverting those funds for anything other than the 

14   purposes for which they are intended under the 

15   RGGI compact.  

16                And for those of you who are less 

17   familiar with RGGI, the Regional Greenhouse Gas 

18   Initiative, it actually found its origin in this 

19   chamber.  It was first proposed by Governor 

20   Pataki as a way to harness the free market of the 

21   Northeastern states -- Connecticut, Delaware, 

22   Maine, Maryland, Massachusetts, New Hampshire, 

23   New York, Rhode Island, and Vermont.  With the 

24   goal to cap and reduce carbon dioxide emissions 

25   from the power sector, the biggest users of 


                                                               1864

 1   carbon-based energy sources like coal and natural 

 2   gas, this fund was created which allows the 

 3   investment in alternative forms of energy, to 

 4   create jobs and reduce greenhouse gases.

 5                At the same time, Mr. President, my 

 6   amendment also increases by $15 million the 

 7   amount of the real estate transfer tax that is 

 8   deposited in the Environmental Protection Fund.

 9                So the EPF, the Environmental 

10   Protection Fund, is traditionally funded by the 

11   real estate transfer tax.  And that makes sense, 

12   Mr. President, because those who create growth in 

13   the State of New York -- a lot of those are real 

14   estate developers, and we commend them for 

15   that -- the idea is that they will offset by 

16   paying into the Environmental Protection Fund.

17                But the problem, Mr. President, is 

18   that by robbing RGGI to pay for the EPF, we're 

19   trying to equate apples and oranges, because RGGI 

20   does something very different than the EPF.  The 

21   EPF is sometimes concerned with water resources 

22   or land preservation.  RGGI, though, 

23   Mr. President, is big-picture addressing of 

24   climate change.  And that is so important.  

25                Last year New York's share of RGGI 


                                                               1865

 1   proceeds was about $691 million, and that's been 

 2   used for everybody from energy efficiency to 

 3   renewable energy to direct bill assistance to 

 4   consumers to carbon abatement programs.  

 5                And what's so crucial about it is 

 6   that we've been doing things like reducing 

 7   fossil-based electric generation, generating over 

 8   800,000 megawatt hours from renewal sources.  

 9   We've saved about $917 million for New Yorkers in 

10   residential energy bills.  It's truly been a 

11   success.

12                The problem, Mr. President, is that 

13   by robbing RGGI to pay for the EPF, we undermine 

14   New York's best and sharpest tool to address 

15   climate change.  And this amendment, 

16   Mr. President, would give us the confidence that 

17   we won't be moving money from RGGI into the 

18   EPF -- which doesn't address big-picture climate 

19   change issues -- nor would we be moving money 

20   into the General Fund which could be used for 

21   anything, but the money in RGGI would be 

22   safeguarded to address the issue of global 

23   warming.

24                The budget, as we've heard it 

25   tonight, it's a moral document.  And it really is 


                                                               1866

 1   immoral if we don't do everything in our power to 

 2   make sure that we combat global warming.

 3                So I urge you, Mr. President and my 

 4   colleagues, to support this amendment, put RGGI 

 5   in a lockbox and protect it, and protect the 

 6   environment.

 7                Thank you.

 8                ACTING PRESIDENT GRIFFO:   Thank 

 9   you, Senator Hoylman.  

10                The vote before the house is on the 

11   procedures of the house.  All those in favor of 

12   overruling the ruling of the chair please say 

13   aye.

14                (Response of "Aye.")

15                SENATOR GIANARIS:   Show of hands, 

16   Mr. President. 

17                ACTING PRESIDENT GRIFFO:   A show of 

18   hands has been requested and so ordered.

19                Announce the results.

20                THE SECRETARY:   Ayes, 24.

21                ACTING PRESIDENT GRIFFO:   The 

22   ruling of the chair stands.  

23                The bill in chief is before the 

24   house.  Read the last section.

25                THE SECRETARY:   Section 3 --


                                                               1867

 1                SENATOR GIANARIS:   Mr. President, I 

 2   believe Senator Rivera --

 3                ACTING PRESIDENT GRIFFO:   Senator 

 4   Rivera.

 5                SENATOR RIVERA:   Thank you, 

 6   Mr. President.  

 7                I have a couple of questions about 

 8   Part J, which is related to the $700 million for 

 9   Brooklyn hospitals, if the sponsor would yield 

10   for a few questions.

11                SENATOR DeFRANCISCO:   Yes, I would.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   DeFrancisco yields.

14                SENATOR DeFRANCISCO:   Well, 

15   actually, Senator Hannon probably would be best 

16   to answer your questions.

17                ACTING PRESIDENT GRIFFO:   Senator 

18   Hannon has already spoken, so he's also 

19   recognized.  

20                And, Senator Hannon, do you yield?  

21                SENATOR HANNON:   Yes.

22                ACTING PRESIDENT GRIFFO:   Senator 

23   Hannon yields.

24                SENATOR RIVERA:   Thank you, 

25   Mr. President.


                                                               1868

 1                Again, I'm referring to Part J in 

 2   the budget bill that we have before us, which 

 3   relates to a healthcare facility transformation 

 4   program in Kings County in particular.

 5                Through you, Mr. President.  As 

 6   you're aware, Senator Hannon, the healthcare 

 7   delivery system in Brooklyn is certainly in a 

 8   very precarious position, and this $700 million 

 9   which is identified in this budget to help that 

10   situation along, the way that that's going to 

11   happen is sketched out here.  And I want to have 

12   a brief conversation -- through you, 

13   Mr. President -- about how exactly it's done so 

14   that for the record we know how that process is 

15   going to play itself out.

16                So through you, Mr. President, if 

17   Senator Hannon could describe basically what this 

18   that provision does regarding that $700 million.

19                SENATOR HANNON:   Thank you.

20                I'm really going to take a little 

21   bit of a long-winded answer, because this is 

22   dealing with capital appropriations for 

23   hospitals, and all of Part J is throughout the 

24   state.

25                The first part deals with Brooklyn.  


                                                               1869

 1   The second part deals with Oneida, the County of 

 2   Oneida.  The third part deals with the Essential 

 3   Healthcare Provider Support Program, which is 

 4   again funded in this.  Then there's a critical 

 5   access program under Section 4 of Part J.  And 

 6   finally, there is a new Section 6 which deals 

 7   with, to mix up some terms that have been used 

 8   before, VAP and IAAF.  

 9                And the reason I mention all of 

10   those is to lay the groundwork for the fact that 

11   this is a statewide program, the very last one, 

12   what I just called VAP-IAAF -- and I'm not going 

13   to go into the explanations of the acronyms -- 

14   that deals with 28 hospitals that inexplicably 

15   the administration left with no cash as of 

16   tomorrow morning.  And so our enactment of this 

17   is necessary to make sure that they continue to 

18   have their doors open.

19                When you get going back to the 

20   direct part of your question, there is a lot of 

21   parallels between Brooklyn and Oneida.  And 

22   parallels in regard to how the awards will be 

23   determined, how the capital project will have 

24   long-term sustainability, the extent to which the 

25   proposed project fits into the federal waiver 


                                                               1870

 1   program, the relationship between the capital 

 2   project and primary care outpatient services.  

 3   Those are all parallel in both Oneida and 

 4   Brooklyn.  

 5                For Brooklyn itself, there is a 

 6   provision contained in Section 3 of Part -- 

 7   Section 1 of Part J which talks about for 

 8   Brooklyn, (a) there's no competitive bid needed.  

 9   And second, it has to be an area of high levels 

10   of healthcare disparities, a large number of 

11   Medicaid enrollees, any number of certain 

12   healthcare conditions present in the population, 

13   low levels of income, high rates of unemployment, 

14   et cetera.

15                There are no specific hospitals 

16   mentioned.  Hospitals are used in the plural, 

17   located in Kings County.  There is some 

18   anticipation that this would include Brookdale, 

19   Kingsbrook, Interfaith, University Hospital at 

20   Brooklyn.  That's not specified.  Instead, there 

21   are criteria.  Nothing I say is going to change 

22   the nature of that criteria.  It's what's in the 

23   printed portion.

24                I would think that would be 

25   responsive to your question.


                                                               1871

 1                SENATOR RIVERA:   It would.  

 2   Mr. President, if the sponsor will continue to 

 3   yield.

 4                SENATOR HANNON:   Yes.

 5                ACTING PRESIDENT GRIFFO:   The 

 6   sponsor yields.

 7                SENATOR RIVERA:   Thank you, 

 8   Mr. President.  

 9                Secondly -- and yes, you are -- you 

10   are referring to the part of the bill, and you 

11   mentioned some of it as far as the criteria 

12   that's necessary to apply, for any of these 

13   institutions to apply.  

14                If you could briefly tell us a 

15   little bit about the criteria to award.  And 

16   particularly I wanted to ask -- through you, 

17   Mr. President -- since there is a part of it that 

18   speaks about "including but not limited to," 

19   related to the criteria as far as the awards are 

20   concerned, I just wanted to discuss that briefly.

21                SENATOR HANNON:   When you say 

22   "including but not limited to," you're referring 

23   to what section of the bill?  

24                SENATOR RIVERA:   Section 4, which 

25   is line 44.


                                                               1872

 1                SENATOR HANNON:   Well, first of 

 2   all, as I said, this is all discretionary grants.  

 3   There's no request for proposals, there's no bid.

 4                The criteria, long-term 

 5   sustainability of the applicant or, or, 

 6   preservation of essential health services.  The 

 7   extent to which the proposed project meshes with 

 8   the federal waiver.  The relationship between the 

 9   proposed project and identified community need.  

10   The way the project furthers primary care and 

11   other outpatient services.  The extent to which 

12   the proposed capital project benefits Medicaid 

13   enrollees and uninsured enrollees.  And the 

14   extent to which the applicant has consulted the 

15   community.

16                SENATOR RIVERA:   Through you, 

17   Mr. President, I have one more question, if 

18   sponsor will continue to yield.

19                ACTING PRESIDENT GRIFFO:   The 

20   sponsor yields.

21                SENATOR HANNON:   Yes.

22                SENATOR RIVERA:   Thank you, 

23   Mr. President.

24                I wanted you to briefly speak about 

25   Section 5, which has to do with the oversight as 


                                                               1873

 1   far as this legislative body is concerned, and 

 2   the reports that would be necessary from the 

 3   department as it relates to the awarding of these 

 4   funds.

 5                SENATOR HANNON:   There's a 

 6   provision for quarterly reporting to the chairs 

 7   of Senate Finance and Health, to Assembly Ways 

 8   and Means and Health, and they must be submitted 

 9   no later than 60 days after the close of the 

10   quarter.

11                SENATOR RIVERA:   Thank you, 

12   Mr. President.  On the bill.

13                ACTING PRESIDENT GRIFFO:   Senator 

14   Rivera on the bill.

15                SENATOR RIVERA:   Thank you, 

16   Mr. President.  

17                I thank Senator Hannon for indulging 

18   me in a couple of these questions.  This is just 

19   to make sure that we get this on the record.  

20                We've had the discussion many times 

21   on this floor about the precarious situation that 

22   the healthcare delivery system in Brooklyn finds 

23   itself in.  And we have in this budget, much like 

24   I debated with Senator Hannon yesterday, although 

25   I certainly would have liked for us to be part of 


                                                               1874

 1   the conversation -- we'll get back to that point 

 2   in a second -- I do believe that this part of 

 3   this budget does deal adequately with the idea of 

 4   addressing these concerns that we have in 

 5   Brooklyn.

 6                There is another whole section that 

 7   deals with Oneida County.  I will not touch upon 

 8   it only because it basically does the same thing 

 9   that we're talking about in Brooklyn, except it 

10   does so with $300 million and it substitutes 

11   Oneida County for where Kings County is in this 

12   section.

13                But the important part that I wanted 

14   to make sure that I underlined here, certainly to 

15   give credit where credit is due, I certainly 

16   thank Senator Hannon for making sure that this 

17   was in here; certainly Assemblymember Dick 

18   Gottfried, on the other side of the other 

19   chamber, as far as the inclusion of this; and 

20   many other folks that are involved in this.  

21                The only thing that I would ask you 

22   to do, and I would say it for the record, is that 

23   I would implore that as this process goes 

24   forward, even though as it says here in Section 5 

25   the only people that are supposed to get reports 


                                                               1875

 1   on a quarterly basis are the chairs of Senate 

 2   Finance, Assembly Ways and Means, Senate Health 

 3   and Assembly Health Committees, most of the 

 4   individuals that are -- that represent, if not 

 5   all of the individuals that represent the 

 6   constituents or the patients that would be 

 7   impacted, hopefully positively by this infusion 

 8   of money, are on this side of the aisle.  

 9                We've heard from Senator Parker, 

10   certainly from Senator Montgomery and Senator 

11   Hamilton, among others, about the real serious 

12   concerns that they have with their constituency 

13   and how they're impacted by the current failures 

14   of the healthcare delivery system in Brooklyn.  

15                I do believe, Mr. President, that 

16   this is an adequate way to start dealing with 

17   this problem.  Certainly it's not the end or the 

18   final solution, but it is certainly -- I'm sorry, 

19   I do not want to use that term.  It is not the 

20   ultimate solution, but it is one that I believe 

21   does move the ball forward.  

22                But I would again implore, for the 

23   record, that there be an inclusion of the 

24   individuals on this side of the aisle that 

25   represent these constituencies in Brooklyn to 


                                                               1876

 1   make sure that whatever ultimately happens 

 2   regarding the $700 million, it impacts their 

 3   constituency in the most positive way that is 

 4   possible.  

 5                Thank you, Mr. President.  I'll be 

 6   voting in the affirmative.

 7                ACTING PRESIDENT GRIFFO:   Senator 

 8   Krueger.

 9                SENATOR KRUEGER:   Thank you, 

10   Mr. President.  If the sponsor would please 

11   yield.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Hannon, would you yield?  

14                SENATOR KRUEGER:   Oh, I think it's 

15   perhaps Senator DeFrancisco, since it's not 

16   health. 

17                SENATOR DeFRANCISCO:   Yes.

18                SENATOR KRUEGER:   But if Senator 

19   Hannon wants to be the sponsor --

20                ACTING PRESIDENT GRIFFO:   Senator 

21   DeFrancisco?  

22                SENATOR DeFRANCISCO:   Yes.

23                SENATOR KRUEGER:   Thank you.  

24                On Part B, the START-UP NY airport 

25   facility section, can you explain how a law that 


                                                               1877

 1   was supposed to apply to college campuses and 

 2   then was expanded to land purchased by colleges, 

 3   even if it wasn't adjacent to the college 

 4   campuses, is now expanding to airport facilities 

 5   and for what purpose?

 6                SENATOR DeFRANCISCO:   How it's 

 7   happened is by this bill.  It expanded the 

 8   properties where START-UP NY would be eligible.  

 9   And the two leaders and the Governor believe that 

10   these airports would be a good location to have 

11   start-up businesses, and that's why it's being 

12   amended.

13                SENATOR KRUEGER:   Through you, 

14   Mr. President, if the sponsor would continue to 

15   yield.

16                SENATOR DeFRANCISCO:   Yes.

17                ACTING PRESIDENT GRIFFO:   The 

18   sponsor yields.

19                SENATOR KRUEGER:   So like other 

20   geographic areas within the START-UP NY program, 

21   businesses that locate here won't pay property 

22   taxes, employees won't pay personal income taxes, 

23   the exact same deal for tax-free businesses?  

24                SENATOR DeFRANCISCO:   That is 

25   correct.


                                                               1878

 1                SENATOR KRUEGER:   Through you, 

 2   Mr. President, if the sponsor would continue to 

 3   yield.

 4                SENATOR DeFRANCISCO:   Yes.

 5                ACTING PRESIDENT GRIFFO:   The 

 6   sponsor yields.

 7                SENATOR KRUEGER:   Are there 

 8   businesses who have already been identified to 

 9   receive this largesse from the state?  

10                SENATOR DeFRANCISCO:   I don't know 

11   that answer.  I don't believe so, but -- I've 

12   been told that there's none presently there.  But 

13   those areas want to have the opportunity to try 

14   to attract businesses and get this largesse from 

15   the state.

16                SENATOR KRUEGER:   Through you, 

17   Mr. President, if the sponsor would continue to 

18   yield.

19                SENATOR DeFRANCISCO:   Yes.

20                ACTING PRESIDENT GRIFFO:   The 

21   sponsor yields.

22                SENATOR KRUEGER:   So we used to 

23   have an Empire Zone model that sort of kept 

24   expanding and expanding to eat up significant 

25   parts of New York.  Is this the continuation of 


                                                               1879

 1   an expansion of START-UP NY to turn into the 

 2   Empire Zone program?  

 3                SENATOR DeFRANCISCO:   The rules and 

 4   regulations are different for START-UP NY than 

 5   they were from the Empire Zone program, but I can 

 6   see where you could see an analogy.  But that's 

 7   what was agreed upon by the Governor and the two 

 8   leaders.

 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:   Part D creates 

16   the New York City Corporate Tax Reform Package of 

17   2015.  Is this supported by the City of New York, 

18   this version?  

19                SENATOR DeFRANCISCO:   Yes.  In 

20   fact, it was drafted, the sheet that you have 

21   that kind of gives a summary, it was actually 

22   drafted in conjunction with the New York City 

23   Finance Office.  And this is just changes in the 

24   way that corporate tax is structured, and it 

25   apparently is revenue-neutral.


                                                               1880

 1                SENATOR KRUEGER:   Thank you.

 2                Through you, Mr. President, if the 

 3   sponsor would continue to yield.

 4                SENATOR DeFRANCISCO:   Yes.

 5                ACTING PRESIDENT GRIFFO:   The 

 6   sponsor yields.

 7                SENATOR KRUEGER:   Thank you.

 8                Section G, New York State Water 

 9   Infrastructure Improvement Act of 2015, we had 

10   actually discussed this in a previous bill, that 

11   it's $5 million per municipality, 60 percent 

12   match, $200 million, $50 million available, and 

13   then $75 million in the two outyears.

14                But can the sponsor tell me what the 

15   estimated actual demand for water infrastructure 

16   improvement is throughout the State of New York?

17                SENATOR DeFRANCISCO:   Well, I'm 

18   sure it's substantial.  

19                The mayor and the City of Syracuse 

20   have been talking about this all during the 

21   budget process and before that.  We basically 

22   have, in Syracuse, a water main break about every 

23   three days.  And it's an aging infrastructure.  

24                The infrastructure's been neglected 

25   in many, many areas for a long, long time.  And 


                                                               1881

 1   so there's going to be a substantial demand with 

 2   respect to this figure.

 3                I would think, quite frankly, you 

 4   know, that more money hopefully will be put into 

 5   this pot as soon as possible.  But at least it's 

 6   a start.

 7                SENATOR KRUEGER:   Through you, 

 8   Mr. President, if the sponsor would continue to 

 9   yield.

10                SENATOR DeFRANCISCO:   Yes.

11                ACTING PRESIDENT GRIFFO:   The 

12   sponsor yields.

13                SENATOR KRUEGER:   The sponsor might 

14   recall there was an attempt by the state to draw 

15   down money from a federal loan program for water 

16   infrastructure improvement that we were 

17   attempting to use for the New NY Bridge.  I think 

18   originally it was over $500 million, then cut in 

19   half, and now we still have the EPA determining 

20   whether they will give us anything.

21                Might the sponsor agree with me that 

22   we'd be better off using water infrastructure 

23   improvement money to improve our water 

24   infrastructure?

25                SENATOR DeFRANCISCO:   Not 


                                                               1882

 1   necessarily.  

 2                I was on the board that approved 

 3   half of the use of that fund for the Tappan Zee 

 4   Bridge.  I thought we could -- that clearly half 

 5   of the fund was -- half of the requested amount 

 6   of money was justified in view of the 

 7   environmental issues that had to be resolved as 

 8   part of the Tappan Zee project.  So I think that 

 9   was perfectly legitimate, to cut the request down 

10   in half.  

11                And I think as far as whether this 

12   could have done it, this fund could have done it, 

13   it wasn't there at the time.  But -- so I think 

14   it was correct to do what was done.

15                SENATOR KRUEGER:   Through you, 

16   Mr. President, if the sponsor would continue to 

17   yield.

18                SENATOR DeFRANCISCO:   Yes.

19                ACTING PRESIDENT GRIFFO:   The 

20   sponsor yields.

21                SENATOR KRUEGER:   There's a number 

22   of sweeps in this bill in Part I, specifically 

23   the RGGI sweep, which takes $41 million from RGGI 

24   and moves the proceeds into a General Fund.  RGGI 

25   is not technically a budget item, and it's not 


                                                               1883

 1   technically an authority that we traditionally 

 2   sweep from.  It was set up actually as a 

 3   cap-and-spend program, not through statute.

 4                Does the sponsor potentially share 

 5   my concern that it's not actually legal for us to 

 6   sweep money into our budget from a nonbudgetary 

 7   and non-public authority funding stream?  

 8                SENATOR DeFRANCISCO:   No, I don't 

 9   share your concerns.

10                SENATOR KRUEGER:   On the bill, 

11   Mr. President.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Krueger on the bill.

14                SENATOR KRUEGER:   You know, it's 

15   late.  I respect my colleague, but I do not agree 

16   with his analysis of my questions on this bill.

17                I never supported the START-UP NY 

18   program and voted against it.  And I raised the 

19   point, I believe at the time, that I was worried 

20   we would start to expand it until it became the 

21   21st century new model of Empire Zones, where we 

22   ate up our tax revenue by giving people 

23   exemptions for everything under the sun, under 

24   any geographic circumstance that somebody said it 

25   sounded like a good idea to let them be tax-free 


                                                               1884

 1   or them be tax-free.

 2                You know, I'm particularly 

 3   frustrated to learn that somehow the small 

 4   business tax reduction that was in the original 

 5   proposed budget bill is not in the final budget 

 6   bill this year.  I think that I can make a much 

 7   stronger case for a reduction in taxes for small 

 8   start-up businesses who disproportionately create 

 9   new jobs in New York State.  But alas, that tax 

10   reduction disappeared.  

11                But we continue to expand on these 

12   what I call more special-interest and luxury-item 

13   tax exemptions.  I would far prefer to see us be 

14   able to reduce everyone's taxes across the board 

15   rather than these continuing carve-outs for 

16   airports or, I guess last night, airplanes and 

17   yachts.  It's another one of these specialized 

18   carve-outs.

19                I'm also concerned that we are 

20   putting so little into the infrastructure needs 

21   of our communities.  As I said on the earlier 

22   bill, there's I think up to a $36 billion demand 

23   for water infrastructure improvements in this 

24   state.  We come up with $50 million this year, 

25   out of $5 million a pop for a municipality.  


                                                               1885

 1                I suspect we will hear loudly from 

 2   our local governments by tomorrow that that's not 

 3   really going to do it, we're not going to save 

 4   our upstate cities and towns and our aging 

 5   infrastructure, including down in my city, in 

 6   Manhattan, some of the oldest infrastructure in 

 7   the State of New York.

 8                And yet I know we have more money 

 9   out there, but we don't ever use it for these 

10   kinds of purposes.  And I don't know the legal 

11   argument.  I think we will see about whether we 

12   actually have the authority to take RGGI money 

13   and put it on budget into a general fund.  I hope 

14   somebody does challenge us on that, because I 

15   think it's a very bad precedent and a very bad 

16   decision.  And it potentially opens the door for 

17   a large number of challenges if we start to take 

18   money that is not technically ours to take to 

19   balance our budget through sweeps.

20                And having said all that, there's 

21   things in here that I'm glad to see.  And I'm 

22   torn about whether, at this late date, to vote no 

23   or yes.  I sort of want to split my vote, I vote 

24   yes on half the bill and I vote no on the other 

25   half.  But I'm not allowed to.  


                                                               1886

 1                What do I do, yes or no?  What 

 2   should I do folks, yes or no?  

 3                (Laughter.)

 4                ACTING PRESIDENT GRIFFO:   Senator 

 5   Krueger, can you please conclude.  

 6                SENATOR KRUEGER:   You know, I'm 

 7   going to vote no.  Even though there's good 

 8   things in this bill, there's too many dangerous 

 9   precedents for me to be comfortable with it.  

10                So I'm voting no, Mr. President.  

11   Thank you all for your help.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Comrie.  

14                SENATOR COMRIE:   Mr. President, I 

15   wanted to ask a question of the sponsor regarding 

16   hospital funding, if I may.

17                ACTING PRESIDENT GRIFFO:   Senator 

18   Hannon, will you yield?  

19                SENATOR HANNON:   Yes.

20                SENATOR COMRIE:   Thank you, 

21   Senator.  

22                I wanted to know some more specifics 

23   about how hospitals can apply for the funding 

24   that have projects that are already in the 

25   pipeline, that are ready to go, shovel-ready 


                                                               1887

 1   projects, as I would say.  

 2                And I would just want to preface 

 3   that, if I may.  Queens County has been 

 4   historically underbedded since the Berger Report 

 5   in 2006.  Since 2006, we've lost three major 

 6   hospitals in the borough and we're even more 

 7   severely underbedded than before.  We have four 

 8   hospitals that have shovel-ready projects, and 

 9   I'd like to know how they can be considered as 

10   priorities in this available dollars.

11                SENATOR HANNON:   Two points to the 

12   answer.  

13                The first part is how do you do it, 

14   you write a letter to the commissioner of the 

15   Health Department and talk about what projects 

16   you have.  They'll start to consider that, put 

17   you in a queue.  

18                The second part to the answer --

19                ACTING PRESIDENT GRIFFO:   Excuse 

20   me, Senator Hannon.

21                Can we have some order, please.

22                Senator Hannon, please continue.

23                SENATOR HANNON:   The second part to 

24   the answer is to be aware that this state has now 

25   applied for and received $8 billion from the 


                                                               1888

 1   federal government for a waiver for something 

 2   that's very awkwardly called the DSRIP program, 

 3   design change and all of that.

 4                That waiver, when we took the money, 

 5   we said we will reduce hospital admissions by 

 6   25 percent in five years.  And the Medicaid 

 7   director said "And I hope to reduce it by 

 8   50 percent."

 9                When you apply to the Health 

10   Department for monies that were appropriated 

11   tonight, they're going to be evaluating the 

12   application in conjunction with the waiver in 

13   conjunction with the goal of reducing admissions.  

14   And I would just say to you that the fact that 

15   there are less beds is not automatically a need 

16   for getting more.  

17                And in fact, just the fact that 

18   people want to improve their hospitals is not 

19   enough to meet the conditions of the waiver, 

20   since the waiver requires a lot of community 

21   health.  And we put a provision in here for 

22   revolving payments for community health projects.

23                So there's going to be a whole 

24   different view than we've had before.  We talked 

25   about it, trying to do it equitably in terms of 


                                                               1889

 1   projects and throughout the state.  But it's also 

 2   the nature is different.  

 3                And so all of you, whether you're in 

 4   Oneida or you're in Brooklyn or someplace else, 

 5   ought to be paying attention to this waiver, 

 6   because every one of your healthcare providers in 

 7   each area of the state is going to be subject to 

 8   this waiver, and organizing together.  So it's a 

 9   great thing to think about in the next three 

10   weeks.

11                SENATOR COMRIE:   Thank you.

12                On the bill, Mr. President.

13                ACTING PRESIDENT GRIFFO:   Senator 

14   Comrie on the bill.

15                SENATOR COMRIE:   I appreciate the 

16   information from Senator Hannon.  

17                I just want to further emphasize 

18   that Queens County has been severely underbedded 

19   in hospital beds and hospital procedures.  Many 

20   Queens residents have to travel to Brooklyn just 

21   to get the opportunity to have full diagnostic 

22   services done.  

23                I believe that these hospitals that 

24   are looking and have shovel-ready projects are 

25   already dealing with overpopulation.  Jamaica 


                                                               1890

 1   Hospital, which is a crisis care center and 

 2   emergency center for Queens and Brooklyn, needs 

 3   projects, and they have shovel-ready projects 

 4   just to improve their ability to take in 

 5   emergency patients.  Their ambulatory surgery 

 6   suite, their cardiac catheterization suite, their 

 7   ambulatory imaging suite are all in need of 

 8   update so that they can maintain the flow as they 

 9   are dealing with an overabundance of patients 

10   every day.  

11                Flushing Hospital Center, the same 

12   thing.  They're trying to get an emergency triage 

13   suite and an observation suite.  New York Medical 

14   Hospital is also trying to improve their 

15   facilities so that they can keep up with the 

16   deluge of patients.  So I would hope that in 

17   these monies that are available that 

18   Queens County can be given every consideration.  

19                And Queens Hospital also, which is 

20   having an overabundance of patients due to the 

21   closing of Mary Immaculate Hospital, Peninsula 

22   Hospital, and other hospitals in Queens, is 

23   seeing patients at a higher level than they ever 

24   have before.  And even though they've been 

25   working to try to acquire more space, I would 


                                                               1891

 1   hope that they can be given the opportunity to 

 2   ensure that they are getting part of this extra 

 3   money.  

 4                And that this entire Senate would 

 5   work to make sure that Queens can find a way to 

 6   improve their services on emergency care, because 

 7   most of the requests for the shovel-ready 

 8   projects are for emergency care services to deal 

 9   with the high numbers that these hospitals are 

10   getting now, and those services will not be 

11   transferred to the other types of centers that 

12   are being requested in the Derma {ph} report.  So 

13   I would hope that we could consider that.  

14                Thank you.  Thank you, 

15   Mr. President.  

16                ACTING PRESIDENT GRIFFO:   Senator 

17   Dilan.

18                SENATOR DILAN:   Mr. President, I 

19   would like to ask a question of the chairman of 

20   the Health Committee for a quick --

21                ACTING PRESIDENT GRIFFO:   Chairman 

22   of the Health Committee, did you say?  

23                Senator Hannon, do you yield?  

24                SENATOR HANNON:   Yes.

25                SENATOR DILAN:   Yes, just for a 


                                                               1892

 1   point --

 2                ACTING PRESIDENT GRIFFO:   Senator 

 3   Dilan.

 4                SENATOR DILAN:   Mr. President, just 

 5   for a point of clarification, the Senator 

 6   mentioned several hospitals in Brooklyn.  I just 

 7   want to know, is this application process open to 

 8   all hospitals in Brooklyn?  

 9                SENATOR HANNON:   Yes.

10                SENATOR DILAN:   It is.

11                SENATOR HANNON:   If you meet those 

12   criteria.

13                SENATOR DILAN:   The reason I asked 

14   the question is because I know that you mentioned 

15   certain hospitals.  And I just wanted 

16   clarification that all hospitals in Brooklyn are 

17   eligible.

18                SENATOR HANNON:   Those hospitals I 

19   mentioned are not in the bill, they're just the 

20   ones that have been mentioned the most.  They're 

21   the ones that frankly have made some headlines of 

22   being in financial trouble.

23                SENATOR DILAN:   Thank you very 

24   much.  

25                On the bill.


                                                               1893

 1                ACTING PRESIDENT GRIFFO:   Senator 

 2   Dilan on the bill.

 3                SENATOR DILAN:   Yeah, just a point 

 4   also.  I'd just like to indicate for the record 

 5   that this is an issue that all members of the 

 6   entire Brooklyn delegation have been working on, 

 7   and I'd that to be noted in the record.  

 8                Thank you.  

 9                ACTING PRESIDENT GRIFFO:   Senator 

10   Montgomery.

11                SENATOR MONTGOMERY:   Thank you, 

12   Mr. President.  

13                Would the chair of the Health 

14   Committee answer a question?  

15                SENATOR HANNON:   Yes.

16                ACTING PRESIDENT GRIFFO:   Senator 

17   Hannon yields.

18                SENATOR MONTGOMERY:   Thank you.  

19   Through you.  

20                Senator Hannon, I just have a couple 

21   of questions that I would like to ask you, one on 

22   the funds that are established based on Part J.  

23   Obviously we're very happy to see the 

24   $700 million that's a targeted amount.  But you 

25   then talk about several other funds as part of 


                                                               1894

 1   this legislation.  

 2                And the two questions that I have is 

 3   I don't see the amounts associated with those 

 4   funds, one.  

 5                And two, since there are specific 

 6   criteria established related to eligibility for 

 7   the $700 million, are other hospitals that don't 

 8   meet that criteria going to be eligible for the 

 9   other funds that you have established in this 

10   bill?  The Community Health Revolving Loan Fund, 

11   there's an Essential Healthcare Provider Support 

12   Program fund.  Are other hospitals going to be 

13   eligible for all that?  

14                SENATOR HANNON:   There's different 

15   criteria for different groups.

16                SENATOR MONTGOMERY:   For different 

17   groups.

18                SENATOR HANNON:   And Oneida 

19   obviously is not Kings.  The revolving loan fund 

20   is basically for primary care.  That's 

21   $19.5 million, all of which is found in the 

22   approp bill, capital.  

23                And then there's the community -- 

24   no, that's for the community health revolving 

25   fund.  Then the sole community hospitals, which 


                                                               1895

 1   wouldn't be a criteria for anybody in the 

 2   metropolitan area.  And then there's others -- 

 3   then there's rural, and there's 355 of the 400 

 4   for the rurals.  So it is divvied up.

 5                The key, which I mentioned before, 

 6   is this waiver money.  As that waiver money is 

 7   established and made available to members of the 

 8   geographic region belonging to what's known as a 

 9   preferred provider group, PPS, then they will be 

10   able to share in that as they meet certain 

11   project milestones that they themselves have 

12   submitted.  

13                So there is a source of additional 

14   monies.  I do believe one of the hospitals in 

15   Brooklyn did not become part of a PPS, I believe 

16   that's Brookdale.  But that was their own choice 

17   and their own standards.  

18                So there is monies available, and 

19   that needs to be looked at carefully.  The 

20   hospital community is well aware of all of this.

21                SENATOR MONTGOMERY:   Okay.  The 

22   second question that I have is related to the 

23   temporary adjustment to reimbursement rates.  And 

24   I would like to know, exactly how does that work?  

25   Does that have any relevance to those of us, 


                                                               1896

 1   those hospitals in Brooklyn that have had this 

 2   huge disparity in their reimbursement rates?  

 3   Which in a sense, in a way, has triggered some of 

 4   the fiscal problems that they have.  And so is 

 5   this an attempt to address that problem, or is 

 6   this something else that I'm misreading it?  

 7                SENATOR HANNON:   The first criteria 

 8   for VAP, which is -- for lack of a better term, 

 9   but I'm going to use what the negotiators have 

10   been using, which is VAP, Vital Access Provider, 

11   dash, IAAF.  Those are the hospitals, the 28 

12   hospitals that shared in the $250 million from 

13   the first part of the waiver.  And they were 

14   given that when they had less than 15 days of 

15   cash on hand and were deemed to be essential to 

16   their communities.  

17                There are several that are in 

18   Kings County:  Brookdale, Interfaith, Kingsbrook 

19   and Wyckoff Heights.  And Downstate was part of a 

20   public program.  The rest of it were hospitals 

21   around the state.  So it's not just Brooklyn 

22   that's suffering.  

23                But these hospitals would get these 

24   monies, and one presumes relatively 

25   proportionally to what they got last year.  But 


                                                               1897

 1   that's not to say they can just assume it's going 

 2   to happen.  The criteria in the bill is they must 

 3   show long-term viability.  And these are the 

 4   hospitals that for decades have not shown that.  

 5   So there's a lot of work that they have to do 

 6   immediately.

 7                SENATOR MONTGOMERY:   Right.  Right.

 8                Mr. President, on the bill.

 9                ACTING PRESIDENT GRIFFO:   Senator 

10   Montgomery on the bill.

11                SENATOR MONTGOMERY:   Yes.  I asked 

12   a question specifically about the issue of the 

13   rate adjustment because, while certainly we want 

14   to do as much as we can to save hospitals that 

15   have been in trouble for many years and are 

16   trying to survive -- and they're the VAPs, that 

17   we understand -- we have lost several hospitals, 

18   one very recently.  Last year we lost a major 

19   hospital in Brooklyn, facility, and so there's 

20   been a lot of pressure on the remaining hospitals 

21   in the region to fulfill some of what we've lost 

22   based on LICH closing, Long Island College 

23   Hospital closing.

24                So we now have a situation where 

25   many of our hospitals have for many years been 


                                                               1898

 1   short-changed in terms of their reimbursement 

 2   rates.  That is a problem that creates a 

 3   structural imbalance in terms of their fiscal 

 4   position.  And so we cannot necessarily assume 

 5   that just because the hospital is not going into 

 6   bankruptcy tomorrow, it's not in a weakened 

 7   position, because the reimbursement rates are so 

 8   very different between Manhattan hospitals and 

 9   Brooklyn hospitals.

10                So I hope that we can look at that 

11   as a major issue in terms of our healthcare 

12   system.  So as we move to transform the system, 

13   we really need to create an equitable 

14   reimbursement rate process so that our system in 

15   Kings County, which serves the largest number of 

16   people, is the largest, most populous county in 

17   the whole state, does not suffer this very, very 

18   weak, vulnerable healthcare delivery system 

19   because we have a structural imbalance.

20                So I would like to just say that 

21   this is an opportunity.  I'm very happy to see 

22   that you've put that funding into Kings County, 

23   $700 million.  We're very happy that you and the 

24   Governor and all of us have worked very hard to 

25   save, as much as we can, our hospitals.  But we 


                                                               1899

 1   do recognize that going forward, we're going to 

 2   need to look very carefully at that reimbursement 

 3   rate system so that we don't continue to have to 

 4   come to this every year or so to rescue these 

 5   health institutions.  

 6                So thank you, Mr. President.  I'll 

 7   be voting yes.

 8                ACTING PRESIDENT GRIFFO:   Hearing 

 9   and seeing no other Senator that wishes to be 

10   heard, the debate is closed and the Secretary 

11   will ring the bell.  

12                Read the last section.

13                THE SECRETARY:   Section 3.  This 

14   act shall take effect immediately.

15                ACTING PRESIDENT GRIFFO:   Call the 

16   roll.

17                (The Secretary called the roll.)

18                ACTING PRESIDENT GRIFFO:   Announce 

19   the results.

20                THE SECRETARY:   Ayes, 59.  Nays, 3.  

21   Senators Krueger, Parker and Perkins recorded in 

22   the negative.

23                ACTING PRESIDENT GRIFFO:   The bill 

24   is passed.

25                Senator LaValle.


                                                               1900

 1                SENATOR LaVALLE:   Mr. President, on 

 2   our desks someplace is Supplemental Calendar 28B.

 3                ACTING PRESIDENT GRIFFO:   We'll 

 4   refer to Supplemental Calendar 28B.

 5                SENATOR LaVALLE:   And if we can go 

 6   to the noncontroversial reading of Calendar 319.

 7                ACTING PRESIDENT GRIFFO:   On 

 8   Supplemental Calendar 28B, we will have the 

 9   noncontroversial reading of Calendar Number 319.

10                The Secretary will read.

11                THE SECRETARY:   Calendar Number 

12   319, Senate Budget Bill, Senate Print 4612B, an 

13   act to amend a chapter of the Laws of 2015.

14                ACTING PRESIDENT GRIFFO:   Senator 

15   LaValle.

16                SENATOR LaVALLE:   Is there a 

17   message of necessity at the desk?  

18                ACTING PRESIDENT GRIFFO:   There is 

19   a message of necessity at the desk.

20                SENATOR LaVALLE:   I move we accept 

21   the message.

22                ACTING PRESIDENT GRIFFO:   All in 

23   favor of accepting the Governor's message of 

24   necessity signify by saying aye.

25                (Response of "Aye.")


                                                               1901

 1                ACTING PRESIDENT GRIFFO:   Opposed?  

 2                (No response.)

 3                ACTING PRESIDENT GRIFFO:   The 

 4   message is accepted and the bill is before the 

 5   house.

 6                Read the last section.

 7                THE SECRETARY:   Section 2.  This 

 8   act shall take effect immediately.

 9                ACTING PRESIDENT GRIFFO:   Call the 

10   roll.

11                (The Secretary called the roll.)

12                THE SECRETARY:   Ayes, 61.  Nays, 1.  

13   Senator Parker recorded in the negative.

14                ACTING PRESIDENT GRIFFO:   The bill 

15   is passed.

16                Senator LaValle.

17                SENATOR LaVALLE:   Mr. President, 

18   that was our last bill that we needed to pass.  

19                Mr. President.

20                ACTING PRESIDENT GRIFFO:   Can I 

21   have some order, please, in the chamber.

22                SENATOR LaVALLE:   Thank you.

23                ACTING PRESIDENT GRIFFO:   Senator 

24   LaValle.

25                SENATOR LaVALLE:   Can you recognize 


                                                               1902

 1   Senator Stewart-Cousins, please.

 2                Excuse me, Senator LaValle?  

 3                SENATOR LaVALLE:   Sorry.  We have 

 4   on our desk another resolution calendar.  

 5                We are opening for sponsorship, by 

 6   Senator Breslin, Resolution 1332.  It's a 

 7   resolution extending admiration to William A. 

 8   Toomey, III.  Mr. President, I move we adopt this 

 9   resolution.

10                ACTING PRESIDENT GRIFFO:   What 

11   we'll do, Senator LaValle, is have the Resolution 

12   Calendar before the house, and we'll adopt the 

13   calendar.  

14                All in favor of adopting the 

15   Resolution Calendar before the house signify by 

16   saying aye.

17                (Response of "Aye.")

18                ACTING PRESIDENT GRIFFO:   Opposed?  

19                (No response.)

20                ACTING PRESIDENT GRIFFO:   The 

21   Resolution Calendar is adopted.  

22                The resolution that Senator Breslin 

23   has sponsored is open for cosponsorship.  Should 

24   you choose not to be a cosponsor, please notify 

25   the desk.


                                                               1903

 1                Now we will have remarks from the 

 2   leaders?  

 3                SENATOR LaVALLE:   Now we're ready 

 4   to recognize Senator Stewart-Cousins.

 5                ACTING PRESIDENT GRIFFO:   I'd ask 

 6   for some order in the house, please, as we call 

 7   upon the leaders for closing remarks for the 

 8   2015-2016 budget.

 9                Senator Stewart-Cousins.

10                SENATOR STEWART-COUSINS:   Thank 

11   you, Mr. President.  

12                And again, thank you, Senator Skelos 

13   and Senator Klein.  And of course I want to 

14   congratulate Governor Cuomo for once again 

15   getting a budget passed on time, at least in this 

16   house, through the Senate.  

17                And I really wanted to thank my 

18   wonderful conference.  During this budget 

19   process, you were incredible.  You raised such 

20   important issues.  You debated with intelligence, 

21   passion and compassion.  And I was also so 

22   heartened by the way you stood up for me every 

23   day as we talked about my being in the 

24   negotiation room.

25                So again, I couldn't be more 


                                                               1904

 1   grateful and more proud of all of you, and I 

 2   thank you all.

 3                And I'd also want to, in terms of 

 4   the budget, give a special thanks to my ranker, 

 5   Senator Krueger, for all of your hard work.  And 

 6   of course the staff on both sides of the aisle.  

 7   What happens during these weeks and months are 

 8   really just incredible feats, and you all do it 

 9   and you all make us look really smart and really 

10   good.  So I want to thank all of you.

11                So I bet you all know what I'm going 

12   to say.  I'm going to say what my colleagues 

13   said.  What happened in this budget and the story 

14   of this budget is more a story of who was 

15   included and who was left out.  And it's also 

16   more of a story of what didn't happen as opposed 

17   to what did.

18                So we'll talk about some of the 

19   things that didn't happen, because I know you all 

20   are going to hear the things that did.

21                But for our part, we failed to raise 

22   the minimum wage that would have lifted thousands 

23   of New Yorkers out of poverty.  We failed to 

24   provide desperately needed property tax relief 

25   for homeowners and business owners across 


                                                               1905

 1   New York State, yet we gave tax breaks to yacht 

 2   owners and airplane owners.  

 3                We failed to deliver relief for 

 4   renters and provide adequate funding for 

 5   affordable housing.  We failed to address the 

 6   inequality in how we fund our schools.  And 

 7   instead of using comprehensive bottom-up 

 8   approaches, we once again rely on SED and a quick 

 9   testing fix.

10                We haven't gone far enough to ensure 

11   that every child has the opportunity to access 

12   quality affordable higher education.  We failed 

13   to pass the DREAM Act.

14                Scandal after scandal has rocked 

15   Albany, yet we failed to pass a meaningful ethics 

16   package that would have gotten to the heart of 

17   the problem.  

18                We didn't include paid family leave 

19   or Raise the Age legislation, and we even failed 

20   to provide the transparency and openness that the 

21   public deserves when we deal with such a massive 

22   undertaking.  We simply rushed bills to print and 

23   then to the floor with little or no real public 

24   debate or input.

25                And always this time of the year we 


                                                               1906

 1   pat ourselves on the back for what we've 

 2   accomplished and we talk about the importance of 

 3   on-time budgets.  And I agree, they are 

 4   important.  But I know that we also can't forget 

 5   that we still have a lot of work to do, and we've 

 6   got three months in the session left.  

 7                And in these three months I hope 

 8   that the voices of my conference and the over 

 9   8 million people we represent are allowed to 

10   participate in negotiations that will continue to 

11   build our economy, create jobs, and cut the tax 

12   burden.  I hope together we'll be able to find 

13   real solutions for our education system and not 

14   simply more testing or demonizing our teachers.  

15                I hope that together we'll be able 

16   to pass even stronger ethics reforms and a real 

17   public financing system.  I hope that we'll be 

18   able to enact Raise the Age legislation and 

19   create more affordable housing across New York 

20   State.  I hope together we will extend and 

21   strengthen our rent control rations, pass paid 

22   family leave, and enact a real minimum wage 

23   indexed to inflation to lift people out of 

24   bone-crushing poverty.

25                Ladies and gentlemen, as we embark 


                                                               1907

 1   on our break, I wish you happy Easter and 

 2   Passover and a good rest.  And I hope that when 

 3   we come back, we'll be able and ready and willing 

 4   to together take on the rest of New York's 

 5   problems and continue to work together.  

 6                Thank you.

 7                (Applause.)

 8                ACTING PRESIDENT GRIFFO:   Thank 

 9   you, Senator Stewart-Cousins.

10                Senator LaValle.

11                SENATOR LaVALLE:   Mr. President, 

12   would you recognize Senator Klein.

13                ACTING PRESIDENT GRIFFO:   Senator 

14   Klein.

15                SENATOR KLEIN:   Thank you, 

16   Mr. President.

17                I know the hour is late, but a lot 

18   of work and a lot of time and effort went into 

19   crafting this budget.  And I know the Republican 

20   side of the aisle, their staff, led by Robert 

21   Mujica, has worked so hard.  

22                But certainly the staff of the 

23   Independent Democratic Conference -- although a 

24   small conference, we have very demanding and 

25   focused members -- worked very hard as well.  I 


                                                               1908

 1   want to thank our chief of staff, John Emrick, 

 2   our finance director, Francesc Marti, deputy 

 3   finance director Sarah Bangs, and David Frazier, 

 4   our policy director Dana Carotenuto, our counsel 

 5   Shelley Andrews, Candice Giove in communications.  

 6                I think they deserve a tremendous 

 7   round of applause.  Thank you.

 8                (Applause.)

 9                SENATOR KLEIN:   I also want to say 

10   a very special thank you to my colleagues in the 

11   Independent Democratic Conference.  

12                We unveiled a very ambitious plan 

13   called Invest New York in the beginning of the 

14   year.  We were focused.  We accomplished a lot of 

15   it.  Some of it has not been done, but that means 

16   we have to roll up our sleeves and work even 

17   harder over the months ahead.  

18                And I want to thank Senator Cousins, 

19   and especially I want to thank Senator Skelos.  I 

20   think Senator Skelos proves each and every day 

21   that he's a leader.  He proves that he's 

22   interested in getting things done.  You know, a 

23   lot of people talk the talk about working 

24   together in a bipartisan fashion; I think Senator 

25   Skelos does that, he believes in it, and he 


                                                               1909

 1   accomplishes it each and every day.  

 2                I think this is certainly monumental 

 3   once again.  It's about 11:20.  Hopefully the 

 4   Assembly does the same; we're about to pass the 

 5   fifth on-time budget.  I know some will say it's 

 6   merely a talking point.  Others who understand 

 7   good government realize by doing this we lower 

 8   our bond rating.  By doing this we tell financial 

 9   institutions we're serious about doing the 

10   people's business.  

11                And I think, first and foremost, I 

12   think the people understand that now the 

13   State Senate and government works.  When we used 

14   to pass budgets two months, three months late, 

15   now we do it on time and it's become a matter of 

16   course.  And I think it's our seriousness in 

17   governing.  

18                I think today we have a budget where 

19   we invest $1.3 billion more in education.  When 

20   it comes to our schools and our students, we're 

21   increasing our investments, making sure students 

22   in K through 12 also have the support they need.  

23                Childcare subsidies, I think we 

24   recognize that working families around the State 

25   of New York need help in decent, affordable 


                                                               1910

 1   childcare.  There were many years that went by 

 2   that we actually, because of the financial 

 3   crisis, made severe cuts to childcare subsidies.  

 4                This is the second year in a row 

 5   we've increased our state support for daycare, 

 6   recognizing that families need help with daycare.  

 7   And it's not only about daycare, it's an economic 

 8   development tool.  How are we ever going to 

 9   expect working moms or working families to go out 

10   and work if they can't rely on decent, affordable 

11   childcare at home?  And we've accomplished that.  

12                I think our investment in housing 

13   has been the most we've done in a long time.  As 

14   we talked about before, $100 million, 

15   $100 million to NYCHA, which makes sure we're 

16   taking our investment in NYCHA, our low-income 

17   housing seriously.  And there's going to be 

18   strings attached, and there should be.  Because I 

19   think NYCHA can do a better job in making sure 

20   they deliver decent and affordable housing for 

21   the thousands of tenants across New York City.  

22                Something that I'm particularly 

23   proud of, as I worked on it for a long time and 

24   we actually made our initial investment this 

25   year, is the Mitchell-Lama housing program.  


                                                               1911

 1                Many of you probably know anywhere 

 2   in the State of New York that the Mitchell-Lama 

 3   housing program is the greatest housing program 

 4   ever created in the State of New York.  It worked 

 5   well.  It understood a very simple premise, that 

 6   you can have different income groups, various 

 7   income levels living under one roof.  And they've 

 8   called that their home for many, many years.  

 9                Unfortunately, we haven't built any 

10   new Mitchell-Lama housing in over 30 years.  Well 

11   today, as part of this budget, we established 

12   Mitchell-Lama 2020, a $50 million investment for 

13   new housing, $50 million investment to 

14   rehabilitate existing Mitchell-Lama housing, 

15   recognizing that we need housing for all levels 

16   of the income spectrum in our state.  

17                We're talking about a lot of very, 

18   very important things and I think a lot of very 

19   important accomplishments.  But like any budget, 

20   you celebrate your victories and you roll up your 

21   sleeves and you work hard to get the things that 

22   you weren't able to get.  

23                I still believe that we need an 

24   increase in the minimum wage.  I think there's no 

25   excuse for thousands of hardworking taxpayers 


                                                               1912

 1   across this state still living paycheck to 

 2   paycheck.  And I think it was mentioned here 

 3   before that one of the greatest economic 

 4   development tools is an increase in the minimum 

 5   wage.  When we increased the minimum wage to $9, 

 6   I predicted that it would not only help our 

 7   economy but it would create jobs, putting more 

 8   money back into our local communities and stores.  

 9                Paid family leave.  I'm very proud 

10   of the fact that we had a committee hearing that 

11   was chaired by the Labor chair, Jack Martins, 

12   where we heard both sides of a very important 

13   issue.  We heard from the business community, we 

14   heard from working families and labor groups.  

15   But I'm confident that we can come up with a paid 

16   family leave package that doesn't burden business 

17   but at the same time helps our workers.  

18                Because I think we have to remember 

19   a very simple truth, that no New Yorker should 

20   ever have to choose between what their heart is 

21   telling them to do and what their bank account 

22   allows them to do.  

23                I think before the end of this 

24   legislative session we have to once again do 

25   property tax relief.  We have to recognize that 


                                                               1913

 1   the American dream of homeownership around our 

 2   state is slipping.  Senior citizens can't afford 

 3   to live in their family home, young families 

 4   can't afford to buy a home because of the high 

 5   cost of property taxes.  And I'm very confident 

 6   that we can get together and once again pass 

 7   meaningful property tax relief.  

 8                You know, there's a lot of other 

 9   things that we need to do, but I think I'll leave 

10   it at that.  And I just want to say we should be 

11   very proud today because we did address many, 

12   many of the needs of New Yorkers.  We once again 

13   did it in a bipartisan fashion.  And I'm very, 

14   very proud to be part of the fifth on-time budget 

15   in a row.  

16                Thank you, Senator Skelos.  

17                (Applause.)

18                ACTING PRESIDENT GRIFFO:   Thank 

19   you, Senator Klein.

20                Senator LaValle.

21                SENATOR LaVALLE:   Mr. President, 

22   would you recognize Senator Skelos.

23                ACTING PRESIDENT GRIFFO:   Senator 

24   Skelos.

25                SENATOR SKELOS:   Thank you, 


                                                               1914

 1   Mr. President.

 2                Let me start off by saying the 

 3   Governor, because he is so thrilled with this 

 4   budget, he's invited all of us -- seriously -- 

 5   back to the mansion to celebrate how wonderful 

 6   this budget is.  So you're all invited.  It's 

 7   down the street.  And I'm sure there will be some 

 8   libations there.  So he just wants to thank 

 9   everybody for supporting him in his budget.

10                I want to start off by thanking 

11   Senator Klein and certainly Senator 

12   Stewart-Cousins.

13                ACTING PRESIDENT GRIFFO:   Can I 

14   have some order in the chamber.  

15                Excuse me, Senator Skelos.  

16                Members, please.  Thank you.  

17                Senator Skelos.

18                SENATOR SKELOS:   -- and Senator 

19   Stewart-Cousins, all working together to make 

20   sure that we did have an on-time budget.  

21                I want to thank Senator DeFrancisco, 

22   chair of Finance.  His journey to this point is 

23   long and many times boring as he sat through all 

24   those budget hearings, listening to testimony 

25   upon testimony, but working diligently answering 


                                                               1915

 1   the questions today.  

 2                So, Senator DeFrancisco, we thank 

 3   you for the great, great job that you've done as 

 4   chair.

 5                (Applause.)

 6                SENATOR SKELOS:   All of our 

 7   staff -- IDC, minority, majority -- we're all 

 8   blessed to have great people that work day and 

 9   night to make sure that we get to this point of 

10   having a budget completed to serve the people of 

11   this state.  

12                I want to thank counsel Dave Lewis, 

13   communications director Kelly Cummings, but in 

14   particular I want to thank Beth Garvey.

15                (Applause.)

16                SENATOR SKELOS:   Now, as you know, 

17   there will be a change in her life shortly, to 

18   the better.  

19                But -- and I've said this before, 

20   Beth, in all honesty, until I really experienced 

21   going through this budget cycle with you, I 

22   didn't appreciate the ability that you have and 

23   how important you are to the functioning of this 

24   Senate.  So we thank you, Beth.

25                (Applause.)


                                                               1916

 1                SENATOR SKELOS:   Robert Mujica.  

 2   What can I say about Robert?  I'd better say more 

 3   than I said about Beth, because I don't want him 

 4   to get jealous.  

 5                But he is, I really believe, the 

 6   most talented person that I've ever met in 

 7   government.  Respected by all in this chamber, 

 8   Republican or Democrat, and certainly respected 

 9   by the Governor and the Assembly, in his ability 

10   to bring issues together, especially as they 

11   relate to the budget, and get a positive result 

12   for the people of this state.  

13                So, Robert, all of us thank you for 

14   the great work that you've done.

15                (Applause.)

16                SENATOR SKELOS:   So with your help, 

17   and hopefully the help of the Assembly -- I think 

18   they've completed one bill so far, hopefully 

19   more -- this will be our fifth on-time budget.  

20   And really, we're all to be congratulated for 

21   that.

22                Many of our priorities, our 

23   Republican priorities for a brighter future for 

24   the taxpayers and their families, are in this 

25   budget.  For the fifth year in a row, our budget 


                                                               1917

 1   lives within a 2 percent spending cap and rejects 

 2   tax increases.  In just five years, we've turned 

 3   a $10 billion deficit to a surplus, and certainly 

 4   that positions us well for the future.

 5                I'm pleased that we have done away 

 6   with nearly 60 percent of what remains of the 

 7   Gap Elimination Adjustment which was imposed upon 

 8   our schools a number of years ago, and boosted 

 9   overall state aid by $1.4 billion.  As a result, 

10   students will once again have the resources they 

11   need to learn and to thrive.

12                As a state, we make private-sector 

13   job creation a priority and ensure that every 

14   region of the state is helped with its needs, as 

15   we should:  $1.5 billion for upstate 

16   revitalization and critical capital funds for 

17   Long Island, New York City, and the 

18   Hudson Valley.

19                The Governor and the Legislature 

20   have worked together to strengthen the state's 

21   ethics codes and disclosure laws, increase 

22   transparency, and restore the public's trust.  

23                Despite these victories, there's a 

24   lot more to do.  We have yet to reach an 

25   agreement on the creation of an education 


                                                               1918

 1   investment tax credit.  We need to lift the cap 

 2   on charter schools so that all kids have the 

 3   ability to learn and have opportunities.  We need 

 4   to make the property tax cap permanent, among 

 5   other things.  And certainly, based upon the 

 6   discussions that we had today, we will explore 

 7   how and if mayoral control should be continued in 

 8   New York City, in what will be in the best 

 9   interests of the students of New York City.

10                I will be asking all of us to work 

11   together for the next couple of months, and I 

12   think this budget is certainly a good start.  

13   Before we close our session in June, let's finish 

14   the job for taxpayers, job creators, and all 

15   New Yorkers.  

16                I thank you very much.  Have a happy 

17   Easter and a happy Passover.  

18                I'm serious about the Governor's 

19   invite --

20                (Laughter.)

21                SENATOR SKELOS:   -- so if we go, 

22   enjoy yourself, be careful going home, and have a 

23   great break.  

24                And there being -- any business at 

25   the desk?  


                                                               1919

 1                ACTING PRESIDENT GRIFFO:   There is 

 2   no further business before the desk, 

 3   Senator Skelos.

 4                SENATOR SKELOS:   Thank you.  Then I 

 5   move we stand adjourned until Tuesday, 

 6   April 21st, at 3:00 p.m., intervening days being 

 7   legislative days.

 8                (Standing ovation.)

 9                ACTING PRESIDENT GRIFFO:   On 

10   motion, the Senate will stand adjourned until 

11   Tuesday, April 21st, at 3:00 p.m., intervening 

12   days being legislative days.

13                The Senate is adjourned.

14                (Whereupon, at 11:30 p.m., the 

15   Senate adjourned.)

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