Regular Session - February 28, 1995

                                                                 
1524

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         9                       ALBANY, NEW YORK

        10                       February 28, 1995

        11                          3:00 p.m.

        12

        13

        14                       REGULAR  SESSION

        15

        16

        17

        18

        19       SENATOR JOHN R. KUHL, JR., Acting President

        20       STEPHEN F. SLOAN, Secretary

        21

        22

        23











                                                             
1525

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

         2                      ACTING PRESIDENT KUHL:  Senate

         3       will come to order.  Members will find their

         4       place.  I ask those present in the chamber to

         5       rise for the Pledge of Allegiance to the Flag.

         6                      (Whereupon, the Senate joined in

         7       the Pledge of Allegiance to the Flag.)

         8                      We're joined today by the

         9       Reverend Peter G. Young of the Blessed Sacrament

        10       Church of Bolton Landing for a prayer.

        11                      Father Young.

        12                      FATHER PETER G. YOUNG:  May I

        13       take a moment of personal privilege and thank

        14       all of the many Senators that sent me letters of

        15       congratulations on my recent recovery from heart

        16       attack and open heart surgery.  I want to again

        17       thank them for their generosity and their

        18       thoughtfulness.

        19                      Dear God, as we come together,

        20       may we pray in this great chamber for the

        21       progressive kind of work here that is being done

        22       in the name of Your good Senators and the people

        23       of this state.











                                                             
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         1                      We pray that You will guide them

         2       and give them Your health and Your love in their

         3       dedication and their energy to accomplish Your

         4       task.

         5                      We ask You this in Your name, now

         6       and forever.

         7                      Amen.

         8                      ACTING PRESIDENT KUHL:  Reading

         9       of the Journal.

        10                      THE SECRETARY:  In Senate,

        11       Monday, February 27.  The Senate met pursuant to

        12       adjournment.  The Journal of Sunday, February

        13       26, was read and approved.  On motion, Senate

        14       adjourned.

        15                      ACTING PRESIDENT KUHL:  Hearing

        16       no objection -

        17                      SENATOR CONNOR:  Mr. President.

        18       I object to the Journal as read.  There are

        19       omissions from the Journal which I believe a

        20       number of my colleagues would like to discuss;

        21       and, therefore, I would yield to Senator

        22       Paterson, who wishes to debate my objection.

        23                      ACTING PRESIDENT KUHL:  Chair











                                                             
1527

         1       recognizes Senator Paterson for the purpose of

         2       making some objections to the Journal as read.

         3                      Senator Paterson.

         4                      SENATOR PATERSON:  Mr.

         5       President.  At the end of two hours, the debate

         6       on the death penalty yesterday was circumvented;

         7       and because of that, many people who had issues

         8       that they had worked very hard on that their

         9       constituents would like to have heard, a

        10       controversial issue, one that received a great

        11       deal of media coverage, one that means a lot to

        12       people on both sides, one that has a very strong

        13       spiritual value to people whether they are for

        14       or against it, these individuals, five of them,

        15       were denied the opportunity to speak.  We're not

        16       talking about a procedural denial.  The denial

        17       was in accordance with Senate procedures.  After

        18       two hours, a member can move to close debate.

        19       But we're talking about the vestige of civility

        20       if it still remains in the Senate and the

        21       opportunity for these individuals to be heard on

        22       this particular issue.

        23                      I myself wanted to talk about the











                                                             
1528

         1       death penalty.  I am opposed to the death

         2       penalty.  I feel one of the reasons I'm opposed

         3       is that the death penalty bill as we saw it

         4       yesterday does not provide effective counsel.

         5       There are a lot of issues and a lot of cases in

         6       which the Sixth Amendment standard of effective

         7       counsel has not been met.  There have been a

         8       number of cases that were overturned later

         9       because the defendant didn't receive effective

        10       counsel in other states, and their standards

        11       were similar to that which was presented in Bill

        12       2649, which is the death penalty bill.

        13                      In addition to that, we read in

        14       the newspapers and saw very recently what I

        15       think was a very horrible situation in Mineola

        16       where an individual whose name is Colin

        17       Ferguson, who killed six people on the Long

        18       Island railroad, who injured 26 others, who

        19       certainly would qualify I think under many

        20       standards as being an individual potentially to

        21       receive the death penalty, and he was allowed to

        22       defend himself when he met the standard of the

        23       730 psychiatric proceeding and was able to go











                                                             
1529

         1       forward and assist his counsel.  That was fine.

         2       However, how could an individual such as this

         3       have actually defended himself?  Should this

         4       crime have taken place a year or two later when

         5       we have established a death penalty in this

         6       state, this individual would have actually been

         7       defending himself on his way to the electric

         8       chair or to some injection that would have ended

         9       his life.  Is this effective counsel?  Did we

        10       see this situation occurring right when we were

        11       debating the death penalty?  I think it's

        12       absolutely outrageous.

        13                      An effective counsel and still a

        14       finding of guilt could have produced the same

        15       reaction.  But since we didn't provide in that

        16       legislation the types of standards that we would

        17       recommend where there would be a sufficient

        18       capital defenders office, where there would be

        19       lawyers who were trained or had had experience

        20       in criminal prosecution for over five years,

        21       then we might actually have seen a better

        22       opportunity.

        23                      But the death penalty itself, I











                                                             
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         1       wanted to argue but was not allowed to.  I

         2       wanted to argue that the death penalty is really

         3       a shrill solution and does not solve the

         4       problems of crime in our society.  In the states

         5       that have had the death penalty, the crime rate

         6       is increased.

         7                      One of the principal arguments

         8       against the death penalty is that of deterrence,

         9       and we've heard about crimes committed against

        10       individuals while the person is serving a life

        11       sentence.  We always have options of security

        12       that we can use to keep a person incarcerated

        13       and to keep them away from even the corrections

        14       officers who are designed to make sure that they

        15       are secure in their facility.

        16                      And so, for those reasons and

        17       others that I would have liked to have

        18       discussed, I am opposed to the death penalty.

        19       We have some other Senators here that wanted to

        20       discuss that issue; and at this time, I would

        21       like to yield to one of them and that would be

        22       Senator Waldon.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
1531

         1       Paterson, would you excuse me just a minute?

         2       Senator Skelos has an announcement he would like

         3       to make.

         4                      SENATOR SKELOS:  Mr. President.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Skelos.

         7                      SENATOR SKELOS:  I believe that

         8       speakers will be recognized through the chair.

         9       There will be an immediate meeting of the Rules

        10       Committee in the Majority Conference Room.

        11                      ACTING PRESIDENT KUHL:  There

        12       will be an immediate meeting of the Rules

        13       Committee in the Majority Conference Room, Room

        14       332.

        15                      Senator Paterson, are you

        16       through, sir?

        17                      SENATOR PATERSON:  Yes, I am, Mr.

        18       President.

        19                      ACTING PRESIDENT KUHL:  Other

        20       Senators wishing to speak?

        21                      Senator Waldon.  Chair recognizes

        22       Senator Waldon.

        23                      SENATOR WALDON:  Mr. President.











                                                             
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         1       I, too, am concerned about what happened here

         2       last evening, and I am, too, also concerned

         3       about the incompleteness of the Journal.  Had I

         4       been allowed to speak yesterday with my prepared

         5       remarks, I would have spoken to the issue of

         6       racial justice in regard to the death penalty.

         7                      As I see it, this bill has three

         8       aspects that speak to the issue of racial bias

         9       and the imposition of the death penalty.  It is

        10       interesting that this Governor would go to such

        11       lengths to address the question of racial bias.

        12                      First, the death penalty bill

        13       permits the Court to conduct individualized voir

        14       dire, individualized closed-door questioning of

        15       prospective jurors on any issue affecting their

        16       qualifications to sit as a juror, including

        17       whether the person harbors any racial biases.

        18                      Second, it requires the Trial

        19       Court to prepare a report for submission to the

        20       Court of Appeals to help the Court determining

        21       whether a particular sentence of death is

        22       disproportionate or excessive considering the

        23       victim's -- I'm sorry -- the defendant's crime











                                                             
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         1       or crimes.  These reports are then to be made

         2       available to appellants for use in capital

         3       cases.

         4                      Finally, in the direct appeal to

         5       the Court of Appeals, the Court must determine

         6       whether the sentence was as the result of

         7       passion, prejudice, or other arbitrary factors

         8       including race of the defendant or race of the

         9       victim and whether the sentence is excessive or

        10       disproportionate to the penalty imposed in

        11       similar cases by virtue of the race of the

        12       defendant or the race of the victim.

        13                      What this bill, my colleagues,

        14       does is admits that the death penalty has been

        15       imposed in a racially-biased manner.  What it

        16       lacks is an effective mechanism to prevent

        17       racial bias from tainting the capital

        18       prosecution.

        19                      My colleagues, the language in

        20       this bill addressing racial injustice and the

        21       imposition of the death penalty is akin to mere

        22       window dressing.  It allows the Governor to say

        23       that he is sensitive to discrimination issues











                                                             
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         1       but it does not stop people from being put to

         2       death where it can statistically be demonstrated

         3       that their sentence is part of a disproportion

         4       ate sentencing pattern.

         5                      I submit that even if we were to

         6       adopt my amendment we could not guarantee that

         7       decisions related to whether a case which shall

         8       be punishable by death will be free from bias.

         9       No language, no matter how carefully drafted,

        10       can reach into a person's heart be they juror,

        11       prosecutor, judge, and expel his or her biases.

        12       This is simply not possible.

        13                      And, yet, the Governor has a

        14       section in his bill entitled, "Individual

        15       Questioning For Racial Bias."  Interestingly,

        16       the section permits jurors to be questioned

        17       outside the presence of other jurors about

        18       anything including the possibility of racial

        19       bias, and the Governor thought racial bias

        20       worthy of inclusion in the title of this

        21       section.

        22                      Mr. President.  Why do I consider

        23       racial justice to be an essential component of a











                                                             
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         1       death penalty bill?  Because almost all capital

         2       cases involve white victims.  Eighty-five

         3       percent of the victims in death penalty cases

         4       are white, even though 50 percent of murder

         5       victims in this country are black.  Just 11

         6       percent of the cases in which the victim is

         7       black results in a death sentence.

         8                      I would like to have entered, as

         9       I would have yesterday had I been given the

        10       opportunity to speak, certain data which bears

        11       on the position I have taken with the amendment

        12       that I would have submitted, Mr. President,

        13       yesterday, had I been given the opportunity in

        14       this collegial body.  I would have said -- I beg

        15       your pardon, Mr. President.  I would have stated

        16       that those who have been executed in this

        17       country since 1976 who were white were 55

        18       percent or 143.  Those who have been executed in

        19       this country since 1976 who were black are 38

        20       percent or 99.  Those who have been executed in

        21       this country since 1976 who were Hispanic are 6

        22       percent or 15, and the Native Americans show up

        23       as only one person executed equaling less than











                                                             
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         1       zero percent.

         2                      Eighty-five percent of the

         3       victims in death penalty cases -- I'm repeating

         4       that.  I apologize.

         5                      It is extremely important

         6       regarding what I wish to submit, Mr. President,

         7       or what I would have submitted yesterday to give

         8       you this information for the record.  When there

         9       was a white defendant -- no.  When there was a

        10       black defendant -- let's scratch that.  Let me

        11       just put these notes down and finish my point.

        12                      The point I would have been able

        13       to make yesterday is that there is disparate

        14       treatment of those who are minorities in the

        15       criminal justice system in regard to capital

        16       punishment, and I would have hoped that the

        17       consideration of this amendment by my colleagues

        18       would have put on point that the system is

        19       unfair and that we have to include in it a

        20       degree of fairness, and my amendment would have

        21       accomplished that.

        22                      I thank you very much, Mr.

        23       President, for this opportunity to say today











                                                             
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         1       what I would have said yesterday had I been

         2       given the opportunity to correct the incorrect

         3       record of yesterday by what I have included

         4       today.  I hope that this information will help

         5       my colleagues in their deliberations not only

         6       today on the matters facing us but in future

         7       matters which will relate specifically to the

         8       death penalty and justice -- justice for all of

         9       us not just for some of us.

        10                      I thank you very much, Mr.

        11       President.  I yield the floor.

        12                      ACTING PRESIDENT KUHL:  The chair

        13       recognizes Senator Abate.

        14                      SENATOR ABATE:  I, too, can not

        15       support the adoption of the Journal.  I too

        16       would like to have had the opportunity to

        17       express my outrage around the violence that we

        18       see in our streets and talk about what I think

        19       is a rational solution to reduce that violence

        20       and protect the people that we have been elected

        21       to serve.

        22                      I do not believe and the record

        23       does not reflect that the death penalty is good











                                                             
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         1       public policy.  It is not good public policy in

         2       terms of deterrent, cost, or justice.  And the

         3       victim community is not a monolithic community.

         4       They will tell you that they do not gain when

         5       one life is taken for another, and they

         6       understand that the law of the street and the

         7       law of the prisons is an eye for an eye, a tooth

         8       for a tooth.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       Abate, can I interrupt you for just a minute?

        11       There is far too much motion and far too much

        12       noise in the chamber.  Senator Abate is making a

        13       very, very serious statement, and she deserves

        14       the respect and attention of all the people in

        15       this body.

        16                      Thank you.

        17                      Senator Abate.

        18                      SENATOR ABATE:  Thank you,

        19       Senator.

        20                      And if I had been given an

        21       opportunity yesterday to speak, I would have

        22       said that this does not make sense and that we

        23       should not make the law of the land an eye for











                                                             
1539

         1       an eye; and by passing the death penalty, we

         2       give legal credibility to the perpetuation of

         3       violence.

         4                      I also would have spoken to the

         5       contents of the bill itself and would have

         6       proffered a number of amendments.  We are all

         7       concerned, whether you agree with the death

         8       penalty or you don't agree, that we must produce

         9       a death penalty bill if it's passed that assures

        10       that no innocent person is convicted and

        11       executed, and we must look at the trial phase to

        12       make sure that there is a fair trial, and

        13       there's no protection in terms of full and open

        14       discovery.

        15                      If we look at the current laws on

        16       the books now, discovery is inadequate even for

        17       a misdemeanor case.  It says that Rosario

        18       material, police reports, do not have to be

        19       turned over to the defense until after a jury is

        20       sworn.  Now, what does that mean in a capital

        21       case?  That means that pleas will be taken by

        22       ill-informed defendants, and that might mean

        23       that people will be pleading to life











                                                             
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         1       imprisonment or maybe to a capital offense

         2       without full knowledge of the evidence against

         3       them.  It means that the prosecutors can

         4       withhold evidence to the 11th hour and thus also

         5       means the defense counsel can not adequately

         6       prepare a defense in these cases.

         7                      So if I could have been heard

         8       yesterday, my amendment would have reformed the

         9       discovery system in capital cases to allow the

        10       discovery process to begin 15 days after

        11       arraignment.  The amendment would also have

        12       asked not only for this early discovery to

        13       prevent innocent people from being convicted, it

        14       would have also said that the district attorney

        15       had to preserve the evidence long after the

        16       trial, had to seal that evidence for the court

        17       to preserve that evidence for future appeals and

        18       that there would be appropriate sanctions if the

        19       district attorney did not abide by these rules

        20       and regulations.

        21                      It is very important at all

        22       phases of this trial through appeal that

        23       indigent people receive effective and adequate











                                                             
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         1       counsel, and there is agreement by all parties

         2       that there should be a capital defenders

         3       office.  But who -- and this is the question.

         4       Who should govern that board?  Should it be we

         5       as legislators, as politicians?  Should it be

         6       the Assembly and Senate or the Governor; or

         7       should it be people with real expertise -

         8       judges and lawyers and bar associations -- that

         9       should make up that board, people who have lived

        10       and labored in the courts who understand the

        11       complexities of the Penal Law and the Criminal

        12       Procedure Law.

        13                      I suggest if I had been given the

        14       opportunity to proffer that amendment that you

        15       would have listened and maybe that amendment

        16       would have been accepted.

        17                      And I think my third amendment

        18       would have been one that Senator Volker would

        19       particularly have been interested in, because he

        20       has long fought and even in 1985, and I have

        21       quotes by him in 1987, he talked about the

        22       necessity for effective counsel from charge all

        23       the way to the Supreme Court; and if it were











                                                             
1542

         1       necessary to put all those protections in the

         2       law, sobeit.  This bill that was passed

         3       yesterday retreats from the time-honored

         4       agreements that Senator Volker reached many

         5       years ago.

         6                      The funding for capital services,

         7       I believe does not go far enough.  It only goes

         8       to one direct appeal to the Court of Appeals and

         9       one collateral motion, a 440 motion.  It talks

        10       about one lawyer not two lawyers, and it's not

        11       clear when the funding of this counsel begins,

        12       whether it should begin when -- even though it's

        13       a murder two case when everyone knows that it's

        14       going to be elevated to a murder one, should

        15       those costs be funded early on so that everyone

        16       has a right to effective counsel?

        17                      I am disheartened.  I know many

        18       of the people in the room are disheartened that

        19       they were not given an opportunity to speak

        20       yesterday.  I hope in the future that the record

        21       will be a full record that reflects the thinking

        22       of our hearts and minds, the thinking of the

        23       hearts and mind of not just a few in the chamber











                                                             
1543

         1       but everyone in the chamber.

         2                      And I hope if we're given an

         3       opportunity to debate this bill again, it will

         4       be representing a full airing and a full

         5       representation of a debate that's honest and

         6       real and we can go home in full conscience that

         7       we have done so.

         8                      With that, I object to the

         9       adoption of the record.

        10                      ACTING PRESIDENT KUHL:  Chair

        11       recognizes Senator Dollinger on the motion.

        12                      SENATOR DOLLINGER:  Mr.

        13       President.  I rise to also object to the Journal

        14       for yesterday, the 27th of February 1995.

        15                      As everybody in this chamber

        16       knows, there was an extremely interesting, at

        17       times heated, at times passionate, at times

        18       extremely eloquent discussion that occurred

        19       which several members of this body did not have

        20       the opportunity to participate in, and I think

        21       for us to close the Journal on that day without

        22       a full reflection of the views of the membership

        23       of this body would be an error and would be











                                                             
1544

         1       inconsistent with the traditions of this

         2       chamber.

         3                      In my own case, Mr. President, I

         4       had three amendments that I wanted to propose to

         5       the bill that was before us then that I was not

         6       able to put into the Journal, and I would just

         7       refer to them quickly here to give the Journal a

         8       full sense of what would have been discussed had

         9       I had the opportunity yesterday.

        10                      The first amendment was what I

        11       call the double indictment amendment.  What that

        12       would have stated is that a grand jury upon the

        13       indictment of an individual for a capital

        14       offense would then be asked to determine with 24

        15       members present with those members present and

        16       analyzing the evidence to find out whether there

        17       is reasonable cause to have someone held over

        18       for a capital indictment.  They would then have

        19       the opportunity to determine whether or not

        20       there was reasonable cause to conclude that if a

        21       jury found them guilty of those offenses a

        22       capital punishment would be required under the

        23       laws of the State of New York.











                                                             
1545

         1                      The benefit of that double

         2       indictment by the grand jury would be to remove

         3       in the highly charged political environment that

         4       often faces district attorneys faced with

         5       absolutely atrocious crimes.  The political

         6       pressure mounts; the newspaper pressure mounts.

         7       The hot klieg lights of the television cameras

         8       often times affects district attorneys who may

         9       or may not be running for reelection, their

        10       judgment about the appropriateness of capital

        11       punishment.

        12                      By having a double indictment

        13       process in our criminal procedure law, we would

        14       be in a position where we would remove the other

        15       taint, not just the taint of racism, not just

        16       the taint of fairness, but the taint potentially

        17       of political motivation in pursuing the death

        18       penalty.  Because the Journal was closed

        19       yesterday prematurely, I did not have the

        20       opportunity to argue that amendment.  My hope is

        21       if this bill comes back, we will have that

        22       argument and that debate in greater detail.

        23                      The second amendment I wanted to











                                                             
1546

         1       propose was an amendment that dealt with the

         2       concept of perjury.  Perjury is not dealt with

         3       in the bill that we discussed yesterday.

         4                      My amendment, had I been allowed

         5       to stand on this floor and articulate it, would

         6       have required an increase in the penalty for

         7       perjury in a capital case or capital

         8       investigation.  Why do so many innocent people

         9       get convicted erroneously of capital offenses?

        10       Because accomplices, other people who could

        11       corroborate are lying to the police, lying under

        12       oath, yet under the State of New York and the

        13       law in the State of New York we have no

        14       increased penalty for perjury in a capital

        15       case.  In fact, you can now lie under oath in a

        16       capital case in this state, and I believe it's

        17       merely a Class D felony.  My proposal would have

        18       increased the penalty for perjury in a capital

        19       case to provide a greater deterrence to those

        20       who will lie and if their lies could cost the

        21       life of someone else.

        22                      Again, I wasn't given the

        23       opportunity, Mr. President.  It's not in the











                                                             
1547

         1       Journal.  I regret that it wasn't there.

         2                      The last amendment was a simple

         3       one, and it would have provided that there would

         4       be a sunset provision in the bill that we passed

         5       yesterday.  Why do we have a sunset provision in

         6       a death penalty?  It seems to me it's pretty

         7       clear.  We have an entire list of statutes which

         8       this Legislature in its infinite wisdom subjects

         9       to a sunset -- our banking regulations, our

        10       NYPHRM, our hospital regulations, our collective

        11       bargaining regulations, our agency shop, are all

        12       subject to an analysis that requires the

        13       Legislature periodically to take a look to see

        14       whether the predictions that we had about their

        15       success or failure warranted their continuation

        16       in this state.

        17                      We had the opportunity yesterday,

        18       had I had the opportunity to talk before the

        19       Journal was closed, in which we could have

        20       debated a sunset provision, so that the issues

        21       of racial fairness, the issues of cost raised by

        22       Senator Nanula, the issues of fairness and

        23       counsel fees raised by Senator Abate, all could











                                                             
1548

         1       have been discussed at great length at another

         2       time, at the time that the sunset expired, when,

         3       if the will of the people of this state was to

         4       continue with the death penalty, we could

         5       analyze all those issues with the absolute skill

         6       of knowing first hand what it cost, knowing who

         7       had been accused, knowing whether racial taints,

         8       whether cost factors, whether fairness had

         9       affected the process.  It seems to me that if

        10       there is a compelling argument for a sunset

        11       provision, it should have been in the bill

        12       yesterday.  It should have been on the floor.

        13       It should have been a part of the Journal.

        14                      The Journal, I believe, carries

        15       an important message to our future, an important

        16       message to a generation from now, to a hundred

        17       years from now.  When I was a member of a body

        18       before the Senate, a legislative body, I had the

        19       opportunity to go back and look at the Journal

        20       from 100 years before.  It was an interesting

        21       experience to see what was important then.  I

        22       think by prematurely closing the Journal

        23       yesterday on the issue of the death penalty, we











                                                             
1549

         1       did a disservice to the members of this chamber

         2       and to our collective legacy to the people of

         3       this state.  I object to the Journal for

         4       February 27, 1995.

         5                      ACTING PRESIDENT KUHL:  Chair

         6       recognizes Senator Nanula.

         7                      SENATOR NANULA:  Thank you, Mr.

         8       President.  I, too, rise in objection, in

         9       opposition to the adoption of yesterday's

        10       Journal.  In conjunction with a number of my

        11       colleagues, I, too, had an amendment at the

        12       desk.  We were not able because of the closure

        13       of debate on this particular topic to

        14       substantively discuss, in addition to a number

        15       of these other measures and these other

        16       amendments, my amendment which is a simple one.

        17       It requires DCJS and OCA to prepare an annual

        18       report on the fiscal impact of the death

        19       penalty, its prosecution to the state including

        20       costs borne by the court system and by state

        21       agencies.

        22                      In a time when our colleagues on

        23       the opposite side of the aisle are talking about











                                                             
1550

         1       fiscal responsibility, it's very confusing and

         2       alarming to me that we are not looking at the

         3       fiscal implications of this legislation,

         4       especially in localities.  I know that our D.A.,

         5       Kevin Dillon, in Erie County is very concerned

         6       over the projected cost of implementing the

         7       death penalty.  We were not able to discuss this

         8       because, again, the Journal was closed, the

         9       debate was ended, and I would have liked to have

        10       spoken and requested some information from the

        11       sponsor in regards to things that I think are

        12       admirable regarding this bill.

        13                      As an example, this bill provides

        14       for the appointment of counsel for indigent

        15       defendants in capital cases for trial and direct

        16       appeal with fees to be paid out of the state

        17       budget.  I don't know.  I have not been told.

        18       There isn't any information in this bill

        19       regarding where those fees are allocated in this

        20       year's state budget.

        21                      In addition, it creates a capital

        22       defender office whose expenses, again, are

        23       supposed to be paid out of the state budget.











                                                             
1551

         1       Where are these allocations stipulated in the

         2       budget?  In addition to that, this bill has a

         3       tremendous impact, as I previously stated, on

         4       localities, on local D.A.s.  Again, in a time of

         5       fiscal responsibility, in a time where certainly

         6       in Erie County and in the city of Buffalo, we

         7       are under the heavy hand of cuts, under the

         8       heavy hand of cutbacks, extraordinary aid,

         9       things that were supposed to be in last year's

        10       budget that are now being projected to be cut, I

        11       think it's an egregious act by the members of

        12       this house, of this chamber, to pass a bill that

        13       does not have a fiscal aspect to it in regards

        14       to the legislation of the death penalty.

        15                      Again, I think it's also

        16       disheartening that we were not as a chamber, as

        17       a legislative body, able to debate and discuss

        18       this measure to the proper length that it

        19       deserved.  I also feel in a proposed era of new

        20       cooperation, something that sounds exciting,

        21       that we would instead have leadership that

        22       denounces the ability for members to present

        23       opinions and objections and amendments.











                                                             
1552

         1                      For all those reasons, I again

         2       rise to oppose -- in opposition of yesterday's

         3       Journal.

         4                      Thank you very much.

         5                      ACTING PRESIDENT KUHL:  Question

         6       is on Senator Bruno's motion to accept the

         7       Journal as read.

         8                      All those in favor, signify by

         9       saying aye.

        10                      SENATOR PATERSON:  Party vote in

        11       the negative, Mr. President.

        12                      SENATOR SKELOS:  Party vote in

        13       the affirmative.

        14                      ACTING PRESIDENT KUHL:  Secretary

        15       will record the party line votes.

        16                      THE SECRETARY:  Ayes 32, nays 20;

        17       party vote.

        18                      ACTING PRESIDENT KUHL:  The

        19       motion is adopted.

        20                      Presentation of petitions.

        21                      Messages from the Assembly.

        22                      Messages from the Governor.

        23                      Reports of standing committees.











                                                             
1553

         1                      Secretary will read.

         2                      THE SECRETARY:  Senator Cook from

         3       the Committee on Education reports the following

         4       bills direct for third reading:

         5                      Senate Print 1304, by Senator

         6       Cook, an act to amend the Education Law, in

         7       relation to providing legal services.

         8                      1538, by Senator Cook, Education

         9       Law, in relation to the establishment of and

        10       maintenance.

        11                      1637, by Senator Johnson, an act

        12       to authorize payment of transportation aid.

        13                      Senator Lack from the Committee

        14       on Judiciary reports the following bills:

        15                      Senate Bill 2135, by Senator

        16       Lack, an act to amend the Estates, Powers and

        17       Trust Law, in relation to the division of

        18       trusts.

        19                      Senator Volker from the Committee

        20       on Codes reports the following bills:

        21                      Senate Print 303, by Senator

        22       Kruger, an act to amend the Penal Law, in

        23       relation to increasing the criminal penalty.











                                                             
1554

         1                      Senate Print 474, by Senator

         2       Holland, Penal Law, in relation to the

         3       possession of noxious materials.

         4                      574, by Senator Johnson, an act

         5       to amend the Penal Law, in relation to the term

         6       of licenses.

         7                      692, by Senator Saland, an act to

         8       amend the Penal Law, in relation to the minimum

         9       period of imprisonment.

        10                      985, by Senator Lack, Penal Law,

        11       in relation to the possession and sale of

        12       fireworks.

        13                      1088, by Senator Spano, Penal

        14       Law, in relation to the crime of criminal

        15       employment.

        16                      1113, by Senator Volker, an act

        17       to amend the Penal Law, in relation to the crime

        18       of false impersonation.

        19                      1417, by Senator Saland, an act

        20       to amend the Criminal Procedure Law and the

        21       Family Court Act, in relation to the access of

        22       records.

        23                      Senator Larkin from Committee on











                                                             
1555

         1       Local Government reports:

         2                      Senate Bill 1937A, by Senator

         3       Skelos, an act to amend Chapter 7879 of the laws

         4       of 1936.

         5                      Senator Levy from the Committee

         6       on Transportation reports:

         7                      Senate Print 334, by Senator

         8       Levy, Public Authorities Law, in relation to the

         9       implementation of recommendations.

        10                      Senate Print 372, by Senator

        11       Levy, Vehicle and Traffic Law, in relation to

        12       increasing the penalties for aggravated

        13       unlicensed operation.

        14                      429, by Senator Levy, an act in

        15       relation to authorizing the Commissioner of

        16       Transportation.

        17                      610, by Senator Stafford, an act

        18       to amend the Vehicle and Traffic Law, in

        19       relation to the operation of school buses.

        20                      972, by Senator Levy, an act in

        21       relation to the requiring of Department of Motor

        22       Vehicles to include certain information.

        23                      1409, by Senator Goodman, Vehicle











                                                             
1556

         1       and Traffic Law, in relation to increasing

         2       penalties for subsequent violations.

         3                      2270, by Senator Levy, Vehicle

         4       and Traffic Law, in relation to the proof

         5       required.

         6                      2356, by Senator Johnson, an act

         7       to provide for the issuance of special vehicle

         8       identification.

         9                      2191, by Senator Levy, an act to

        10       amend the Public Authorities Law and the

        11       Administrative Code of the City of New York, in

        12       relation to creating the committee.

        13                      Senator Hannon from the Committee

        14       on Health reports:

        15                      Senate Print 642, by Senator

        16       Lack, Public Health Law, in relation to

        17       penalties.

        18                      724, by Senator Cook, Public

        19       Health Law, in relation to potable waters.

        20                      Senator Tully from the Committee

        21       on Environmental Conservation reports the

        22       following bills:

        23                      Senate Print 418, by Senator











                                                             
1557

         1       Cook, Environmental Conservation Law, in

         2       relation to permitting certain directional

         3       signs.

         4                      Senate Print 620, by Senator

         5       Stafford, Environmental Conservation Law, in

         6       relation to permitting certain advertising.

         7                      Senate Print 2322, by Senator

         8       LaValle, an act to amend the Environmental

         9       Conservation Law and Chapter 262 of the Laws of

        10       1993.

        11                      Senator Saland from the Committee

        12       on Children and Families reports:

        13                      Senate Print 207, by Senator

        14       Rath, an act to amend the Family Court Act, in

        15       relation to the return of children.

        16                      466, by Senator Holland, Social

        17       Services Law, in relation to access to the

        18       statewide register.

        19                      1741, by Senator Skelos, an act

        20       to amend the Social Services Law, in relation to

        21       the access of certain conviction records.

        22                      Senate Print 2105, by Senator

        23       Saland, an act to amend the Social Services Law











                                                             
1558

         1       and the Public Health Law, in relation to the

         2       disclosure of HIV-related information.

         3                      2108, by Senator Saland, an act

         4       to amend the Family Court Act, in relation to

         5       judicial notification.

         6                      2115, by Senator Saland, Family

         7       Court Act, in relation to the placement of

         8       children upon disposition.

         9                      2119, by Senator Saland, Social

        10       Services Law, in relation to bona fide research

        11       projects.

        12                      Senator Goodman from the

        13       Committee on Investigation reports:

        14                      Senate Print 267, by Senator

        15       Farley, an act to amend the Arts and Cultural

        16       Affairs Law, in relation to the use of permanent

        17       durable paper.

        18                      Senate Print 927, by Senator

        19       Goodman, an act to amend the Arts and Cultural

        20       Affairs Law, in relation to the sale of

        21       consigned works.

        22                      Senate Print 983, by Senator

        23       Goodman, an act to amend the Arts and Cultural











                                                             
1559

         1       Affairs Law, in relation to the New York State

         2       Fine Arts Collection.

         3                      Senate Print 1540, by Senator

         4       Lack, Executive Law, in relation to authorizing

         5       the Division of Human Rights.

         6                      And Senate Print 1921, by Senator

         7       Goodman, an act to amend the Alcoholic Beverage

         8       Control Law, in relation to information

         9       required.

        10                      All bills ordered directly to

        11       third reading.

        12                      ACTING PRESIDENT KUHL:  All bills

        13       are reported directly to third reading.

        14                      Chair would recognize Senator

        15       Bruno.

        16                      SENATOR BRUNO:  Mr. President.  I

        17       would like at this time to introduce to my

        18       colleagues some people that I invited here to

        19       the chamber.  Jamie Adams that is here in the

        20       front of the chamber with her mom and dad, Burke

        21       and Carol Adams, and her brother, Dan, and

        22       sister, Julie.

        23                      You may not recognize Jamie, but











                                                             
1560

         1       she was the 1995 Cerebral Palsy Poster Lady, and

         2       this past year, they raised more money than they

         3       have ever raised in previous years; and if you

         4       visit with Jamie, you will see why.  So we're

         5       happy to have Jamie and her family in the

         6       chamber and hope that you will have a very

         7       enjoyable day here at the capitol.

         8                      Thank you.

         9                      (Applause.)

        10                      ACTING PRESIDENT KUHL:  Reports

        11       of select committees.

        12                      Communications and reports from

        13       state officers.

        14                      Motion and resolutions.

        15                      Senator Bruno.

        16                      SENATOR BRUNO:  May we at this

        17       time, Mr. President, adopt the Resolution

        18       Calendar with the exception of Resolution 395.

        19                      ACTING PRESIDENT KUHL:  The

        20       motion is to accept the Resolution Calendar with

        21       the exception of Number 395.

        22                      All those in favor, signify by

        23       saying aye.











                                                             
1561

         1                      (Response of "Aye.")

         2                      Opposed, nay.

         3                      (There was no response.)

         4                      The resolutions are adopted.

         5                      Senator Bruno, that brings us to

         6       the calendar.

         7                      SENATOR BRUNO:  Mr. President.

         8       Can we at this time read Resolution 395 in its

         9       entirety.

        10                      ACTING PRESIDENT KUHL:  Secretary

        11       will read Resolution Number 395 in its entirety.

        12                      THE SECRETARY:  In Senate.

        13       Legislative Resolution Number 395 commending

        14       Vincent J. Graber, Sr., former New York State

        15       Assemblyman from the 148th Assembly District for

        16       his years of dedicated service.

        17                      Whereas, it is the sense of this

        18       legislative body that those who give positive

        19       definition to the profile and disposition of the

        20       communities of the State of New York do so

        21       profoundly strengthen our shared commitment to

        22       the exercise of freedom; and

        23                      Whereas, attendant to such











                                                             
1562

         1       concern and fully in accord with its long

         2       standing traditions, it is inherent of this

         3       Legislative Body to commend Vincent J. Graber,

         4       Sr., former New York State Assemblyman from the

         5       148th Assembly District for his years of

         6       dedicated service; and

         7                      Whereas, Vincent J. Graber, Sr.,

         8       is married to the former Patricia Murray of

         9       Troy, New York, the Grabers are parents of ten

        10       children, Mrs. Judy Siwy, Mrs. Lynn Carrow,

        11       Vincent, Jr., Robert, James, Daniel and Peter

        12       Graber and Kevin, Christopher, and William

        13       Thompson; and

        14                      Whereas, Vincent J. Graber, Sr.,

        15       a Democrat, former Speaker Pro Tem of the

        16       Assembly, represented the 148th Assembly

        17       District in Erie County; the district consists

        18       of the Towns of West Seneca, Lancaster, Elma,

        19       Clarence, along with part of the city of

        20       Buffalo; and

        21                      Whereas, during his legislative

        22       career Mr. Graber served as the chair of the

        23       Assembly Transportation Committee, 1979-1988;











                                                             
1563

         1       vice chair of the Legislative Commission on

         2       Critical Transportation Choices, 1979-1988;

         3       chair, Subcommittee on Railroads, 1975-1988;

         4       member, National Conference of State

         5       Legislatures; member, Eastern Region Council of

         6       State Governments; chair, Council of State

         7       Governments National Transportation Positive

         8       Guidance Committee; in 1985, United States

         9       Department of Transportation Secretary,

        10       Elizabeth Dole, appointed Mr. Graber a member of

        11       the National Commercial Motor Vehicle Safety

        12       Regulatory Review Panel; and

        13                      Whereas, Vincent J. Graber, Sr.,

        14       commitment to the people of the State of New

        15       York mirrors those prerogatives of personal

        16       initiative and accountability so paradigmatic of

        17       our American manner; and

        18                      Whereas, the laws sponsored by

        19       Vincent J. Graber, Sr., have helped New York

        20       become the leading state in the nation in

        21       reducing highway deaths and injuries caused by

        22       drinking and driving; in 1984, he authored the

        23       present law requiring the use of seat belts in











                                                             
1564

         1       vehicles required to be equipped with the same;

         2       this measure was the first such statute to be

         3       enacted in the United States; it was the

         4       continuation of the Assemblyman's interest in

         5       this area that led to the successful sponsoring

         6       of a similar law relative to child restraints in

         7       passenger vehicles; the Assemblyman was

         8       successful in 1988 in sponsoring the law which

         9       requires New York State to conduct the first

        10       bridge inspection program in the nation; he also

        11       saw passed into law his bill creating an

        12       addiction interlock program to combat repeat DWI

        13       offenders; and

        14                      Whereas, the legislative career

        15       of Vincent J. Graber, Sr., reflects an

        16       unyielding commitment to the very principles and

        17       ideals upon which this beloved nation was first

        18       founded; and

        19                      Whereas, through his long and

        20       sustained commitment to the positive and

        21       salutary definition of the State of New York,

        22       Vincent J. Graber, Sr., did so unselfishly

        23       advance that spirit of united purpose and shared











                                                             
1565

         1       concern which is the unalterable manifestation

         2       of our American experience; now, therefore, be

         3       it

         4                      Resolved, that this Legislative

         5       Body pause in its deliberations and most

         6       joyously commend Vincent J. Graber, Sr., former

         7       New York State Assemblyman from the 148th

         8       Assembly district for his years of dedicated

         9       service fully confident that such procedure

        10       mirrors our shared commitment to persevere, to

        11       enhance, and to yet effect that patrimony of

        12       freedom which is our American heritage; and be

        13       it further

        14                      Resolved, that a copy of this

        15       resolution, suitably engrossed, be transmitted

        16       to Vincent J. Graber, Sr.

        17                      ACTING PRESIDENT KUHL:  Chair

        18       recognizes Senator Volker on the resolution.

        19                      SENATOR VOLKER:  Mr. President.

        20       Let me just say that this resolution is in

        21       behalf of somebody who I think just most

        22       everybody in the chamber probably knows Vince;

        23       been a long-time friend of mine and colleague in











                                                             
1566

         1       the Assembly; and if I might say in behalf of

         2       anybody in the chamber that would like to go on

         3       the resolution, why, you know you are more than

         4       welcome to go on as a co-sponsor.

         5                      In fact, I -- should we do what

         6       we have done in the past, is to say unless

         7       somebody doesn't want to -

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Volker, why don't we take the procedure that

        10       we'll put all the members on unless there is

        11       some member who does not wish to be on the

        12       resolution if they would come up and signify

        13       that to the Secretary; otherwise, we'll put all

        14       members on the resolution.

        15                      SENATOR VOLKER:  Fine.  This is a

        16       busy day.  I know that there is a lot going on,

        17       so just let me say a couple words in behalf of

        18       this.  First of all, I think there's some people

        19       that are not aware that he is the only person

        20       that ever defeated me in an election.  I have to

        21       say that, and I'm the only person that ever

        22       defeated him in an election, so we beat each

        23       other at one time or another, became very close











                                                             
1567

         1       personal friends; and as I think obviously you

         2       are aware became, shall we say, mates in an

         3       attempt to restore the death penalty in this

         4       state, and I promised him that when the time

         5       comes that we are actually doing it that I'm

         6       going to have him up here.  In fact, he is

         7       coming up next week I just want to tell you for

         8       a little party, and I expect by then we will,

         9       hopefully, have the death penalty pretty well

        10       wrapped up if everything goes well.

        11                      I also want to say that there is

        12       a couple of other things that I don't think

        13       people are aware of.  Vince Graber and I tried

        14       more overrides than any legislators in the

        15       history of the New York State Legislature.

        16       There is also something else that is not

        17       well-known, because we are probably better known

        18       for our failures than for our successes, but we

        19       also succeeded more times than any legislators

        20       in the history of the Legislature, and that is

        21       on several other issues that over the years the

        22       two of us attempted and were successful in.

        23       Unfortunately, not in the death penalty but we











                                                             
1568

         1       were on several other issues.

         2                      I certainly miss Vince and I

         3       think a number of people here do, who was a

         4       strong and powerful voice for those of us

         5       particularly I think in Upstate New York and in

         6       criminal justice.  He -- as I say, we expect

         7       that he will be here next week.  I guess they

         8       are having a party for him, and I would just say

         9       that I was proud to have him as a friend and

        10       that -- and that -- also, as George [Onorato] is

        11       looking at me here, I can see that he also wants

        12       to say that he was an excellent golfer, although

        13       George is a lot better than he is.

        14                      But, at any rate, he was a good

        15       friend and a good legislator and he certainly

        16       will be missed.

        17                      ACTING PRESIDENT KUHL:  Chair

        18       recognizes Senator Stachowski on the

        19       resolution.

        20                      SENATOR STACHOWSKI:  Mr.

        21       President, I would be remiss if I didn't get up

        22       and say a couple of words about Vince Graber,

        23       since he was my Assemblyman and it was also my











                                                             
1569

         1       pleasure to serve with him; and as I came here

         2       many years after he was already here, I will

         3       always be indebted to him for showing me around

         4       and teaching me many things about Albany.

         5                      But I think I will always hold it

         6       against him that he never taught me that unique

         7       system of score keeping that he used so

         8       successfully while he played golf here in

         9       Albany.

        10                      ACTING PRESIDENT KUHL:  The

        11       question is on the resolution, Resolution Number

        12       395.  All in favor, signify by saying aye.

        13                      (Response of "Aye.")

        14                      Opposed, nay.

        15                      (There was no response.)

        16                      The resolution is adopted.

        17                      Senator Bruno, that brings us to

        18       the calendar, I believe.

        19                      SENATOR BRUNO:  Mr. President.

        20       Can we now take up the noncontroversial

        21       calendar.

        22                      ACTING PRESIDENT KUHL:  Secretary

        23       will read the noncontroversial calendar.











                                                             
1570

         1                      THE SECRETARY:  Calendar Number

         2       60, by Senator Levy, Senate 773, an act to amend

         3       the Penal Law, in relation to including the

         4       theft of dogs and cats within the crime of grand

         5       larceny.

         6                      ACTING PRESIDENT KUHL:  Secretary

         7       will read the last section.

         8                      THE SECRETARY:  Section 3.  This

         9       act shall take effect on the first day of

        10       November.

        11                      SENATOR MONTGOMERY:  Explanation.

        12                      ACTING PRESIDENT KUHL:  Lay the

        13       bill aside.

        14                      THE SECRETARY:  Calendar Number

        15       67, by Senator Kuhl, Senate 2081A.

        16                      SENATOR PATERSON:  Lay it aside.

        17                      ACTING PRESIDENT KUHL:  Lay the

        18       bill aside.

        19                      THE SECRETARY:  Calendar Number

        20       79, by Senator Levy, Senate 384.

        21                      SENATOR PATERSON:  Lay it aside.

        22                      ACTING PRESIDENT KUHL:  Lay the

        23       bill aside.











                                                             
1571

         1                      THE SECRETARY:  Calendar Number

         2       81, by Senator Skelos, Senate 409, an act to

         3       amend the Real Property Tax Law, in relation to

         4       the definition of income for senior citizen real

         5       property.

         6                      ACTING PRESIDENT KUHL:  Secretary

         7       will read the last section.

         8                      THE SECRETARY:  Section 2.  This

         9       act shall take effect immediately.

        10                      ACTING PRESIDENT KUHL:  Call the

        11       roll.

        12                      (The Secretary called the roll.)

        13                      THE SECRETARY:  Ayes 55.

        14                      ACTING PRESIDENT KUHL:  The bill

        15       is passed.

        16                      THE SECRETARY:  Calendar Number

        17       84, by Senator Padavan, Senate 1473, an act to

        18       amend Chapter 420 of the Laws of 1991.

        19                      ACTING PRESIDENT KUHL:  Secretary

        20       will read the last section.

        21                      THE SECRETARY:  Section 2.  This

        22       act shall take effect immediately.

        23                      ACTING PRESIDENT KUHL:  Call the











                                                             
1572

         1       roll.

         2                      (The Secretary called the roll.)

         3                      THE SECRETARY:  Ayes 55.

         4                      ACTING PRESIDENT KUHL:  The bill

         5       is passed.

         6                      THE SECRETARY:  Calendar Number

         7       85, by Senator Farley, Senate 1631, an act to

         8       amend the Education Law, in relation to

         9       authorizing the State University Trustees to

        10       make courses available for certain persons.

        11                      ACTING PRESIDENT KUHL:  Secretary

        12       will read the last section.

        13                      THE SECRETARY:  Section 2.  This

        14       act shall take effect on the first day of April.

        15                      ACTING PRESIDENT KUHL:  Call the

        16       roll.

        17                      (The Secretary called the roll.)

        18                      THE SECRETARY:  Ayes 55.

        19                      ACTING PRESIDENT KUHL:  The bill

        20       is passed.

        21                      THE SECRETARY:  Calendar Number

        22       87, by Senator Holland, Senate 1247, an act to

        23       amend the Education Law.











                                                             
1573

         1                      ACTING PRESIDENT KUHL:  Secretary

         2       will read the last section.

         3                      THE SECRETARY:  Section 2.  This

         4       act shall take effect on the first day of

         5       January.

         6                      ACTING PRESIDENT KUHL:  Call the

         7       roll.

         8                      (The Secretary called the roll.)

         9                      THE SECRETARY:  Ayes 55.

        10                      ACTING PRESIDENT KUHL:  The bill

        11       is passed.

        12                      THE SECRETARY:  Calendar Number

        13       91, by Senator Holland.

        14                      SENATOR HOLLAND:  Lay it aside

        15       for the day.

        16                      ACTING PRESIDENT KUHL:  Lay the

        17       bill aside for the day.

        18                      Senator Bruno, that completes the

        19       noncontroversial calendar.

        20                      SENATOR BRUNO:  Mr. President.

        21       Can we now take up the controversial calendar.

        22                      ACTING PRESIDENT KUHL:  Secretary

        23       will read the controversial calendar.











                                                             
1574

         1                      THE SECRETARY:  Calendar Number

         2       60, by Senator Levy, Senate 773, an act to amend

         3       the Penal Law, in relation to including the

         4       theft of dogs and cats within the crime of grand

         5       larceny.

         6                      SENATOR PATERSON:  Explanation.

         7                      SENATOR BRUNO:  Lay the bill

         8       aside.

         9                      ACTING PRESIDENT KUHL:  Lay the

        10       bill aside, temporarily.

        11                      THE SECRETARY:  Calendar Number

        12       67, by Senator Kuhl, Senate 2081A, an act in

        13       relation to the certain project of the Hornell

        14       Industrial Development Agency.

        15                      SENATOR PATERSON:  Explanation.

        16                      ACTING PRESIDENT HOBLOCK:

        17       Explanation asked for.

        18                      Senator Kuhl.

        19                      SENATOR KUHL:  Senator Dollinger,

        20       did you ask for an explanation, sir?

        21                      SENATOR DOLLINGER:  Yes, I did.

        22                      SENATOR KUHL:  Senator Dollinger,

        23       this is a home rule request for a piece of











                                                             
1575

         1       legislation that is coming from the city of

         2       Hornell.  Two years ago, this chamber and the

         3       Assembly came together and adopted a bill

         4       dealing with industrial development agency

         5       reform.  There was a provision in that bill that

         6       said -- which I believe became effective

         7       somewhere around October of 1993.  There was a

         8       provision in that bill that said that any

         9       projects which dealt with retail establishments

        10       that were commenced prior to that effective date

        11       that they would not have any effect with regard

        12       to the preclusions of that particular bill.

        13                      What has happened since that time

        14        -- there was prior to the adoption of that

        15       piece of legislation a project that was started

        16       in the city of Hornell which has now come to a

        17       halt as the result of a misinterpretation, in my

        18       opinion, of that particular grandfather clause

        19       by a court decision.

        20                      What this bill does is allow for

        21       the completion of that project which will bring

        22       a countless number of jobs, countless number of

        23       monies in the form of new sale tax, to a











                                                             
1576

         1       community that is desperately trying to recover

         2       from the blight of a railroad industry

         3       occupation rehabilitation that has disappeared

         4       over the last several decades.

         5                      ACTING PRESIDENT HOBLOCK:

         6       Senator Dollinger.

         7                      SENATOR DOLLINGER:  Through you,

         8       Mr. President.  Just one question.

         9                      Could you tell me the scope of

        10       the retailers involved in the project?

        11                      SENATOR KUHL:  The scope of the

        12       retailers?

        13                      SENATOR DOLLINGER:  The number of

        14       retailers and who they are?

        15                      SENATOR KUHL:  I don't know the

        16       entire plaza that's being constructed, but there

        17       are two major retailers.  One you may be

        18       familiar with, Wegman's grocery store, which is

        19       founded, I think, and based in Rochester, New

        20       York, probably your district, and another one is

        21       a Wal-Mart store.  I believe that there are

        22       several other potential retailers that are going

        23       to go into this plaza, but at this point the











                                                             
1577

         1       project has come to a halt.

         2                      SENATOR DOLLINGER:  That answers

         3       my question, Mr. President.  Before we vote, I

         4       think I should just disclose that I don't think

         5       I should vote on this, that's all.  I should ask

         6       to be excused, that's all.

         7                      SENATOR SKELOS:  Last section.

         8                      ACTING PRESIDENT HOBLOCK:  There

         9       is a home rule message at the desk.

        10                      Secretary will read the last

        11       section.

        12                      THE SECRETARY:  Section 4.  This

        13       act shall take effect immediately.

        14                      ACTING PRESIDENT HOBLOCK:  Call

        15       the roll.

        16                      (The Secretary called the roll.)

        17                      SENATOR DOLLINGER:  Mr.

        18       President.  If I could just be recognized to ask

        19       to be excused because I believe there is

        20       certainly an appearance of a conflict if not a

        21       conflict.  I don't know what the rules are under

        22       the Public Officers Law, but I would ask to

        23       abstain.











                                                             
1578

         1                      SENATOR BRUNO:  Without

         2       objection.

         3                      ACTING PRESIDENT HOBLOCK:

         4       Without objection, Senator Dollinger abstains.

         5                      THE SECRETARY:  Ayes 53.  Nays

         6       1.  Senator Leichter recorded in the negative.

         7                      ACTING PRESIDENT HOBLOCK:  The

         8       bill is passed.

         9                      THE SECRETARY:  Calendar Number

        10       79, by Senator Levy, Senate 384, an act to amend

        11       the Vehicle and Traffic Law, in relation to

        12       requiring school bus drivers involved in

        13       personal injury accidents.

        14                      SENATOR PATERSON:  Explanation.

        15                      ACTING PRESIDENT HOBLOCK:

        16       Explanation asked for.

        17                      SENATOR BRUNO:  Lay it aside at

        18       the request of the sponsor.

        19                      ACTING PRESIDENT HOBLOCK:  Lay it

        20       aside.

        21                      Senator Bruno, that completes the

        22       calendar.

        23                      SENATOR BRUNO:  Mr. President.











                                                             
1579

         1       Can we now have the report of standing

         2       committees and the Rules report that I believe

         3       is at the desk.

         4                      ACTING PRESIDENT HOBLOCK:

         5       Secretary will read.

         6                      THE SECRETARY:  Senator Bruno

         7       from the Committee on Rules reports the

         8       following bills directly to third reading:

         9                      Senate Bill 1831, Budget Bill, an

        10       act to amend to Tax Law, in relation to the

        11       reduction of rates and enhancement of credits

        12       under the state personal income tax.

        13                      Senate Bill 2320, by Senator

        14       Bruno and others, Concurrent Resolution of the

        15       Senate and Assembly proposing an amendment to

        16       Article 7 of the Constitution, in relation to

        17       limiting the growth on New York State

        18       disbursements.

        19                      Senate Bill 2545, by Senator

        20       Bruno and others, an act to provide a retirement

        21       incentive for certain public employees.

        22                      All bills directly for third

        23       reading.











                                                             
1580

         1                      SENATOR LEICHTER:  Mr. President.

         2                      ACTING PRESIDENT HOBLOCK:

         3       Senator Leichter.

         4                      SENATOR LEICHTER:  If we can just

         5       hold a second.

         6                      Mr. President.  I would like to

         7       object to moving Senate Bill 2320 direct to

         8       third; and whatever the procedure we used

         9       yesterday, Mr. President, as far as raising that

        10       procedural objection, I would like to do it in

        11       relation to that bill.

        12                      ACTING PRESIDENT HOBLOCK:

        13       Senator Bruno, do you want to move the adoption

        14       of the Rules Committee before we have the

        15       objection?

        16                      SENATOR BRUNO:  Yes.  I would

        17       like to move the adoption of the report of the

        18       Rules Committee at this time, Mr. President.

        19                      ACTING PRESIDENT HOBLOCK:

        20       Senator Leichter.

        21                      SENATOR LEICHTER:  Yes, if I may

        22       be heard on it and that may be the best way of

        23       doing it.  Really, on reflection, there











                                                             
1581

         1       certainly is a difference between the objection

         2       that we raised yesterday on the death penalty

         3       bill which had never gone through committee.

         4       S.2320 did go through the Judiciary Committee

         5       today, so there really is a distinction, and

         6       maybe my objection should best be voiced when

         7       the bill comes up because I think it's premature

         8       for us to consider it, but I don't think there

         9       is the same nature of objection that we made

        10       yesterday, so I will withdraw any objection.

        11                      ACTING PRESIDENT HOBLOCK:  All

        12       those in favor of adopting the Rules report,

        13       signify by saying aye.

        14                      (Response of "Aye.")

        15                      Opposed, nay.

        16                      (There was no response.)

        17                      The report is adopted.

        18                      Senator Bruno.

        19                      SENATOR BRUNO:  Mr. President.

        20       At this time, can we take up Calendar Number

        21       135.

        22                      ACTING PRESIDENT HOBLOCK:

        23       Secretary will read.











                                                             
1582

         1                      THE SECRETARY:  Calendar Number

         2       135, by Senator Bruno, Senate Bill 2320, an act

         3       proposing an amendment to Article 7 of the

         4       Constitution, in relation to limiting the growth

         5       on New York State disbursements.

         6                      ACTING PRESIDENT HOBLOCK:

         7       Explanation asked for.  Senator Bruno.

         8                      SENATOR BRUNO:  Mr. President.  I

         9       believe this is the spending cap resolution and

        10       bill, which upon its passage in both houses

        11       would go to the people after two passages of the

        12       Legislature which would put a cap on spending

        13       for the people of this state, and the cap would

        14       be 9 percent of the personal income of the

        15       state, people of this state as evidenced by the

        16       U.S. Department of Commerce; and with this

        17       spending cap in place, which would be if you

        18       follow the calendar and the procedures, in '98,

        19       in order to spend more than the cap, the

        20       Governor would have to declare that it was an

        21       emergency situation.  It would need two-thirds

        22       of the Legislature to concur.

        23                      For any funds that are in excess











                                                             
1583

         1       of the cap, when they exceed a quarter of one

         2       percent, they will go into a special fund and

         3       that special fund would be a stabilization of

         4       taxes in this state and a reduction of debt, and

         5       it can only be used for those two purposes, to

         6       reduce taxes or to reduce the debt.

         7                      Now, Mr. President, it's no

         8       secret in this state that we have lagged in the

         9       recovery over these last four years and we have

        10       led the country in job loss in the last four

        11       years.  Forty percent of all the jobs lost in

        12       this country came from New York.  Part of the

        13       reason relates to excessive taxes and excessive

        14       regulation.

        15                      We are contemplating tax cuts

        16       here in this state that are overdue.  In order

        17       to make tax cuts meaningful, you have to control

        18       spending, and we have demonstrated over and over

        19       again in this house and in the other house that

        20       we can not control spending of our own

        21       volition.  So if we change the Constitution of

        22       this state, it will be very, very difficult to

        23       then revert back to our spending and taxing ways











                                                             
1584

         1       of the past which have led us to a $5 billion

         2       deficit this year that we are all having to

         3       contend with, and it would be a lot more fun

         4       serving in office this year had we not had to

         5       contend with that deficit.

         6                      So, Mr. President, I urge my

         7       colleagues to support the passage of this

         8       legislation that is before us today.

         9                      SENATOR LEICHTER:  Mr. President.

        10                      ACTING PRESIDENT HOBLOCK:

        11       Senator Leichter.

        12                      SENATOR LEICHTER:  Mr.

        13       President.  Senator Bruno, although you don't

        14       trust yourself, I trust you.

        15                      SENATOR BRUNO:  Thank you.

        16                      SENATOR LEICHTER:  I realize that

        17       in the last four years, Senator, you voted for

        18       budgets that, as you say, were out of control;

        19       and what you are saying to the people of this

        20       state is "Please don't trust Senator Joe Bruno.

        21       He is out of control.  He is not going to do

        22       what you want to do or what is good for the

        23       State of New York."











                                                             
1585

         1                      Now, some of us voted against

         2       those budgets, Senator, but I think you are

         3       every bit as responsible as legislators that

         4       serve on this side of the aisle, on that side of

         5       the aisle, or legislators that are going to

         6       serve here ten, fifteen, twenty years ago when

         7       you and I may no longer be here.

         8                      Senator, I think this is a bad

         9       idea.  I think your explanation shows why it is

        10       a bad idea because very frankly, Senator, your

        11       economics, Senator, just do not support this

        12       bill, and your economic theory is not one that

        13       one would find in any credible economic course

        14       or in any economic treatise.

        15                      The idea that the reason that the

        16       State of New York for the last four or five

        17       years has had a job loss is because we have

        18       spent too much is just nonsense.  I'm sorry to

        19       put it that strongly, but it is.  Indeed, there

        20       may be times when it is important for a state or

        21       a government to spend money to spur economic

        22       recovery, and that's of course how we got out of

        23       the Depression.











                                                             
1586

         1                      Let me say, Senator, this Calvin

         2       Coolidge-like view you have of business and the

         3       economy -- that's when you are progressive; on

         4       other days, it sounds more like President

         5       McKinley -- is really not consonant with what

         6       all economists will tell you.  To hamstring

         7       government in this fashion by putting on an

         8       automatic cap on expenditures and saying

         9       legislators cannot be trusted is just the wrong

        10       way to proceed.

        11                      Senator, you and I are very

        12       fortunate, all of us in this country are very

        13       fortunate, because probably the greatest

        14       collection of leaders that this world has ever

        15       seen got together and formulated the United

        16       States Constitution and it's worked wonderfully

        17       for over 200 years.  It has given us the

        18       greatest government.  It has enabled to us build

        19       the greatest nation, the most democratic nation,

        20       the most prosperous nation, that this world has

        21       ever seen.

        22                      Similarly, New York State over

        23       the centuries has had great leadership.  Neither











                                                             
1587

         1       the federal government nor the state, none of

         2       the founding fathers, have ever proposed that

         3       there be a spending cap because they appreciated

         4       and understood the fluidity of government, the

         5       changing economics, and they trusted the people

         6       and they trusted the people to elect good

         7       representatives, and they trusted the

         8       representatives to do the right things.  They

         9       didn't impose these artificial restraints and

        10       constraints on how government would act.

        11                      But let me raise something which

        12       really disturbs me and which is a pattern,

        13       Senator Bruno, that we are seeing here which is

        14       government by bulldozer, government by rushing

        15       ahead blindly.  We saw it yesterday.  We had a

        16       death penalty bill that had to be voted on

        17       Monday even though it bent the process of this

        18       body and negated the committee system that we

        19       have.

        20                      Today, we have a bill or

        21       resolution, constitutional resolution, changing

        22       the basic framework by which our government acts

        23       that makes such drastic changes, and yet it's











                                                             
1588

         1       put forward without sufficient deliberation,

         2       consideration and time, above all, for the

         3       public to comment.

         4                      What's the rush?  If you want to

         5       move the constitutional process for amending the

         6       State Constitution, you can do it anytime before

         7       the end of the session.  There will have to be

         8       another Legislature that will have to pass it,

         9       and then it will go to the voters.

        10                      Before we do this, we ought to

        11       have people comment on it.  We ought to have

        12       hearings.

        13                      I will certainly yield.

        14                      SENATOR BRUNO:  Will Senator

        15       Leichter yield?

        16                      SENATOR LEICHTER:  Yes.

        17                      ACTING PRESIDENT HOBLOCK:

        18       Senator yield?

        19                      Senator Bruno.

        20                      SENATOR BRUNO:  Senator, do you

        21       recall that we have passed this bill three out

        22       of the last five years at least that you have

        23       had time to study and review this?  Do you











                                                             
1589

         1       remember that, Senator?

         2                      SENATOR LEICHTER:  Senator, have

         3       you -- let me -

         4                      SENATOR BRUNO:  The same bill,

         5       Senator?

         6                      SENATOR LEICHTER:  -- answer.

         7                      SENATOR BRUNO:  And my question

         8       is, did you have time to study it over the last

         9       five years, Senator?

        10                      SENATOR LEICHTER:  Senator, I

        11       have had time to study it.  Let me tell you,

        12       it's no better with age than it was three years

        13       ago, Senator.

        14                      SENATOR BRUNO:  Thank you.  Would

        15       you stand for another question?

        16                      SENATOR LEICHTER:  If I can

        17       answer your first question.

        18                      ACTING PRESIDENT HOBLOCK:

        19       Senator Leichter, will you yield?

        20                      SENATOR LEICHTER:  I will yield,

        21       but I just want to finish the question that you

        22       asked me before, Senator Bruno.  The point is

        23       that you've never had public hearings on this.











                                                             
1590

         1       You have never had an opportunity to get

         2       business leaders, labor leaders, economists,

         3       political scientists, theorists, to comment on

         4       the wording of this bill.  You got provisions in

         5       there that sound like something that came out of

         6       a comedy show.

         7                      SENATOR BRUNO:  And, Senator,

         8       Leichter -- Mr. President -- speaking of comedy

         9       shows, I really appreciated you comparing me to

        10       President McKinley, who I believe was shot, and

        11       I guess there is some inference there.

        12                      But having said that -

        13       question:  Do you know if this cap had been in

        14       place for the last four years how much money we

        15       would have in surplus today in that account?

        16       Take a guess, Senator.

        17                      SENATOR LEICHTER:  I will let you

        18       tell me, Senator.

        19                      SENATOR BRUNO:  $5.1 billion,

        20       surplus.  Not deficit, Senator.  Wouldn't it be

        21       nice to be sitting in this chamber giving the

        22       taxpayers a refund, reducing our debt?  Wouldn't

        23       that be a nice, moderate, conservative thing to











                                                             
1591

         1       do, Senator, rather than continuing our liberal

         2       spending and taxing ways, Senator?

         3                      SENATOR LEICHTER:  Senator, it

         4       would be highly unwise and unreasonable to do

         5       because, if you had done that over four years,

         6       you might have $5.1 billion but you would have

         7       such a loss of jobs, you would have so much

         8       misery on the streets of this city, Senator,

         9       least of all, you wouldn't have been able to

        10       fund all your member items.

        11                      So I assure you that that cap

        12       would not have worked.  Indeed, if that cap were

        13       in effect, my understanding is Governor Pataki's

        14       budget would not be within the cap; and as we

        15       know, this is a hard -- in fact, some people

        16       consider it a harsh budget, so the cap just

        17       doesn't work.  To say that we would have had

        18       $5.1 billion if the cap were in effect, Senator,

        19       we would have property taxes that would be sky

        20       high.  We would have class sizes in New York

        21       City of 70 to 80 kids.  We would have had to

        22       open up the prisons of the state and let the

        23       prisoners out because there wouldn't have been











                                                             
1592

         1       enough money to run the Department of

         2       Correctional Services.

         3                      Senator, if you just want to

         4       return all of the money to taxpayers and all of

         5       us would like to avoid paying taxes, why don't

         6       you just eliminate all taxes?  I hate to give

         7       you that idea because we'll see that bill on the

         8       floor tomorrow.  You will probably rush it

         9       through the Rules Committee and put it out.

        10                      But the fact of the matter is,

        11       Senator, that if you take a look historically at

        12       what people pay in New York State for taxes as a

        13       percentage of income, it hasn't really gone up

        14       very much.  New York State may be a high tax

        15       state because of the costs here for some

        16       historical reasons, but that's not the reason

        17       why we have lost business.  We were a higher

        18       taxed state when we were the leader in job

        19       creation and job growth and job retention in the

        20       United States.

        21                      There are economic forces at work

        22       in this country, at work in the world, which

        23       really determine how the economy of this state











                                                             
1593

         1       does, and whether we spend a billion more or

         2       less, very frankly, has almost nothing to do

         3       with the economic welfare of this state.  But if

         4       we impose this sort of a cap and are unable to

         5       take care of the needs of the people of this

         6       state because we're not going to be able to fund

         7       the schools, and we're not going to be able to

         8       provide assistance to people who are ill, and we

         9       can't provide help to the elderly, and we can't

        10       have day care and all the other services that

        11       are necessary including, by the way, substantial

        12       assistant to business.  I just issued a report

        13       which showed that that last year we had total

        14       appropriations to business of $1.2 billion.

        15       Senator, you wouldn't be able to do this if you

        16       had a cap in effect.

        17                      But let me just point out to you

        18       some language, and I think that bears on the

        19       point that I made on the necessity of having

        20       hearings, having discussion.  I think there is

        21       members on my side of the aisle that might very

        22       well support a cap if it was intelligently

        23       worded.  Contrast -- contrast what we're doing











                                                             
1594

         1       with the Senate of the United States, that for

         2       weeks has been considering a balanced budget

         3       amendment which is a somewhat similar approach

         4       to trying to restrict spending by this cap, and

         5       they have had hearings, they've had discussions,

         6       they've had deliberations, they've had

         7       economists.  They've looked at what the

         8       consequences would be.  Senator, legislation by

         9       rushing ahead blindly does not serve the people

        10       of the State of New York, and I submit to you

        11       that's what you are doing here.

        12                      I just want to read the

        13       definition of emergency.  I would love to have

        14       you comment on this, because when I said this

        15       was something that came out of a comedy talk

        16       show, I think it is.  "Emergency shall mean an

        17       extraordinary unforeseen or unexpected

        18       occurrence or combination of circumstances in a

        19       given fiscal year which requires immediate and

        20       sudden fiscal action of a drastic but temporary

        21       nature."

        22                      Senator, tell me, if you can, an

        23       example of something that is of drastic nature,











                                                             
1595

         1       unforeseen, unexpected but at the same time it

         2       is temporary.  Would you yield, Senator Bruno?

         3                      ACTING PRESIDENT HOBLOCK:

         4       Senator Bruno, will you yield?

         5                      SENATOR BRUNO:  Yes, Mr.

         6       President.  Sorry, I was dozing.

         7                      (Laughter.)

         8                      SENATOR LEICHTER:  Senator, I

         9       think you were dozing when you wrote this bill,

        10       frankly.

        11                      SENATOR BRUNO:  No.  You have

        12       such a melodious tone to your rhetoric.

        13                      SENATOR LEICHTER:  I am going to

        14       be less melodious, Senator.  Tell me -

        15                      SENATOR BRUNO:  Yes, I heard the

        16       last part, and recognize this, Senator.  The

        17       Governor in his good, sound, sensible, sane,

        18       judgment would look at the world of New York

        19       State and say, "I believe we have an emergency

        20       and I, based on these circumstances, propose to

        21       the Legislature that there is an emergency in

        22       this state that requires extraordinary action,"

        23       and then this great deliberative body must











                                                             
1596

         1       concur by two-thirds vote before that emergency

         2       can be reality.

         3                      So, Senator, you talk about

         4       hearings, you talk about discussion.  I would

         5       suggest to you that there isn't any better

         6       format to review and then you could say all of

         7       the nice things and wise things that you usually

         8       say about the emergency that's purported, and

         9       then we either by two-thirds vote concur or not,

        10       and that's how we would deal with reality not

        11       supposition, Senator.

        12                      SENATOR LEICHTER:  Mr.

        13       President.

        14                      ACTING PRESIDENT HOBLOCK:

        15       Senator Leichter.

        16                      SENATOR LEICHTER:  If Senator

        17       Bruno would be good enough to continue to yield.

        18                      ACTING PRESIDENT HOBLOCK:

        19       Senator Bruno, do you yield?

        20                      SENATOR BRUNO:  Yes, Mr.

        21       President.

        22                      SENATOR LEICHTER:  When the

        23       Governor certifies there is an emergency,











                                                             
1597

         1       assuming this resolution is adopted eventually

         2       by the people, he would have to certify within

         3       the terms of the Constitution, namely, this

         4       particular resolution; isn't that right?

         5                      SENATOR BRUNO:  That is so.

         6                      SENATOR LEICHTER:  He couldn't

         7       just say it's an emergency because I think it's

         8       an emergency.  He would have to say it's an

         9       emergency because, among other things, there is

        10       a sudden fiscal action of a drastic but

        11       temporary nature.  He would have to certify

        12       that; is that right?

        13                      SENATOR BRUNO:  Yes, and it could

        14       have to do with some disruption in the City and

        15       it might be in your district where something

        16       took place which was of massive nature, a great

        17       dislocation of your constituency, the people of

        18       the City, and it wouldn't be conducive to good

        19       health and welfare, and he would then make that

        20       judgment.

        21                      SENATOR LEICHTER:  Senator, let

        22       me ask you this question.  Suppose there was an

        23       earthquake.











                                                             
1598

         1                      ACTING PRESIDENT HOBLOCK:

         2       Senator Leichter, are you asking Senator Bruno

         3       to yield again?

         4                      SENATOR LEICHTER:  Yes.

         5                      ACTING PRESIDENT HOBLOCK:

         6       Senator Bruno, do you yield?

         7                      SENATOR BRUNO:  Yes, Mr.

         8       President, I do.

         9                      SENATOR LEICHTER:  Okay.

        10       Senator, suppose there was an earthquake in New

        11       York City -- if there was an earthquake in New

        12       York City that had effects that are not just

        13       temporary because, as you know, once the earth

        14       shifts things are somewhat different.  It's

        15       permanent.  Would that qualify as an emergency

        16       since what has occurred is not temporary?

        17                      SENATOR BRUNO:  Yes, that would

        18       qualify, Senator Leichter.

        19                      SENATOR LEICHTER:  Even though

        20       the effect is longlasting.

        21                      SENATOR BRUNO:  Yes, Senator

        22       Leichter, that would qualify.

        23                      SENATOR LEICHTER:  Okay.  So what











                                                             
1599

         1       you're telling me is that temporary really

         2       doesn't mean temporary.

         3                      SENATOR BRUNO:  Senator Leichter,

         4       temporary means temporary; and temporary could

         5       be one year, five years, depends on whatever you

         6       would relate it to.

         7                      SENATOR LEICHTER:  Could

         8       temporary be 50 years?

         9                      SENATOR BRUNO:  I guess if you

        10       were thinking in terms of millions of years,

        11       yes, very much so.

        12                      SENATOR LEICHTER:  I think I'm

        13       making my point that we have language here that

        14       is highly loose and subject, really, to all

        15       sorts of varying interpretation.

        16                      One of the issues before the U.S.

        17       Congress and the Senate now in the debate on the

        18       constitutional amendment, the balanced budget

        19       amendment, is the concern that Senator Nunn and

        20       others have raised that you are really turning

        21       over the legislative power to the Court because

        22       there, too, there will be interpretations that

        23       probably will be made by the Court which may











                                                             
1600

         1       require the Court to actually allocate

         2       spending.

         3                      I would submit to you that

         4       language of this sort where the Governor maybe

         5       would certify that emergency has occurred

         6       because something that has an effect over a

         7       hundred years and he says, "Well, I think that's

         8       temporary because I'm looking at the millennium

         9       and that's really a short period of time."

        10       Somebody else may say, "Wait a second, 100 years

        11       isn't temporary."  I think it's considerations

        12       of that sort that ought to be reviewed, ought to

        13       be analyzed, the public ought to be given a

        14       chance to comment on before we rush ahead with

        15       changing the basic framework of how this state

        16       acts.

        17                      So I would strongly urge that

        18       this bill be withdrawn.  If you want to bring it

        19       back later in the session, this resolution, you

        20       can certainly do it.  There is no reason in the

        21       world that this needs to be done now.  If you

        22       want to do it in this session, you can do it;

        23       but why not do it in an orderly deliberative











                                                             
1601

         1       way?  Why not give the people of New York State

         2       an opportunity and a chance to be heard?

         3                      You know, all the wisdom in the

         4       world is not contained in this chamber, and

         5       bills that come out even with the imprimatur of

         6       the Majority Leader maybe can be improved or can

         7       be shown not to be wise.  I don't know what the

         8       concern is or the fear, really, to let the

         9       public be part of the legislative process as

        10       they should be.  Congress has hearings.

        11       Congress debates important matters in a

        12       deliberative fashion.  What is the rush?

        13                      If we're making a political

        14       statement, Senator, have a press conference.

        15       Say you are in favor of a cap on spending and

        16       you are going to come up with a workable,

        17       sensible cap.  That's fine.  You have made your

        18       political statement.  Now let's do the hard

        19       work.  But, instead, to have the press release,

        20       in effect, be the resolution and to rush it

        21       through this way, Senator, that's no help.  You

        22       are never going to achieve what I think you

        23       honestly want to achieve.  I strongly disagree











                                                             
1602

         1       with you, but I know that you are sincere in

         2       your belief that if you reduce government

         3       spending that somehow or other this state is

         4       going to bloom economically.  To my mind, it

         5       doesn't make sense, but that's your belief.  But

         6       at least do it in a way that is going to

         7       accomplish what you want it to do and not in a

         8       way that is merely, I think, a political press

         9       release.

        10                      So if you read this, I think you

        11       will see that it's probably not workable.  I

        12       think you will also see that it imposes a very

        13       severe limitation.  If you just consider the

        14       fact that, as I have been told -- I believe it's

        15       correct.  Nobody, at least, has gotten up and

        16       said, "You are wrong, Leichter" -- that Governor

        17       Pataki's budget would not be within this cap if

        18       that were now part of the Constitution of State

        19       of New York, and we know that it is a very,

        20       very, very tight budget that has made many of

        21       us, including on the other side of the aisle,

        22       very uncomfortable then you will appreciate what

        23       a severe restriction it is.  But by passing











                                                             
1603

         1       something of this sort, we are handcuffing

         2       future legislators.  We are handcuffing the

         3       ability of this state to meet future crisis that

         4       we have no way of understanding or future needs

         5       that may not fit into the definition here of

         6       emergency.

         7                      I think it is unwise, but it is

         8       certainly unfortunate and certainly improvident

         9       to proceed in this fashion and to really

        10       preclude and exclude the people of the State of

        11       New York on something as important as this to be

        12       heard not just at the end when you slap a

        13       resolution on the ballot but right in fashioning

        14       that resolution to see that what you have really

        15       makes sense.

        16                      I submit what is before us does

        17       not make sense.

        18                      ACTING PRESIDENT HOBLOCK:

        19       Senator Dollinger.

        20                      SENATOR DOLLINGER:  Mr.

        21       President.  Before I go to the text of this

        22       bill, and I have some questions for Senator

        23       Bruno, maybe I should deal with those.  I would











                                                             
1604

         1       like to deal with the specific subject matter

         2       the text of the bill.  I actually have a

         3       proposal for a series of amendments, which I

         4       understand I need unanimous consent in order to

         5       bring up because it's a resolution and not a

         6       bill.  Before I posture those amendments to the

         7       chair, however, I would just like to discuss a

         8       series of the concepts that the amendments deal

         9       with, with Senator Bruno, and perhaps by

        10       question and answer format, and so if Senator

        11       Bruno would yield to a question?

        12                      ACTING PRESIDENT HOBLOCK:

        13       Senator Bruno, will you yield to a couple of

        14       questions?

        15                      SENATOR BRUNO:  Yes, Mr.

        16       President.  Senator Dollinger.

        17                      SENATOR DOLLINGER:  I asked this

        18       question in the Judiciary Committee this

        19       morning, and I just want to make sure I fully

        20       understand it.  The state spending limitation

        21       that's talked about in this bill is derived by

        22       multiplying the personal income, the state

        23       personal income, which is determined by the











                                                             
1605

         1       Department of Commerce in the federal

         2       government, but let's just talk about the state

         3       personal income.

         4                      Why isn't corporate income

         5       included in the basis for calculation?  After

         6       all, corporations are using our services.  They

         7       are part of our spending.  We spend money for

         8       corporations.  Senator Leichter pointed out that

         9       we spend a billion-point-two on direct

        10       assistance for our private enterprises, for

        11       corporations, but they are also using the

        12       spending.  They are using our roads, using our

        13       transportation network.

        14                      Why don't we include corporate

        15       spending in there?

        16                      SENATOR BRUNO:  Senator, we could

        17       have.  Practically speaking, you can use any

        18       formula that you want to.  The fact of the

        19       matter is that that had been contemplated, but

        20       the information that we have is that it takes

        21       about two years to compile that kind of

        22       information as relates to business in any

        23       accurate fashion.  So it didn't seem practical











                                                             
1606

         1       or workable.  We could have said 2 percent of

         2       personal income and such a percent of corporate

         3       income.  Could have done it.  It wasn't

         4       practical.  That's the reason.

         5                      SENATOR DOLLINGER:  Again through

         6       you, Mr. President.  I also understand that to

         7       calculate the personal income, the Department of

         8       Commerce publishes about three months behind the

         9       initial receipt of the data, and then at a six

        10       month picture makes a further revision of the

        11       earlier personal income numbers to reflect the

        12       actual or better calculation based on

        13       withholding and other information that -

        14       frankly, I should add by way of interjection,

        15       the chairman of the Judiciary Committee allowed

        16       me to talk to staff.  I had a conversation with

        17       staff in which much of this was discussed.  I

        18       appreciate that courtesy on his part, but we

        19       still will have a calculation of personal income

        20       tax base which will be used as the basis for

        21       this formula which will take six months beyond

        22       the end of the year before we will have the real

        23       number that we have to deal with.  Isn't that











                                                             
1607

         1       correct?

         2                      SENATOR BRUNO:  The calendar as

         3       was related in the bill I think takes into

         4       account the mechanics of doing something

         5       realistic in the forthcoming budget.  There is

         6       about a three-month lag realistically in getting

         7       numbers that pertain to that.

         8                      SENATOR DOLLINGER:  But my

         9       further understanding -- again through you, Mr.

        10       President.

        11                      ACTING PRESIDENT HOBLOCK:

        12       Senator Dollinger.

        13                      SENATOR DOLLINGER:  -- is that

        14       the three-month lag is accompanied by a three

        15       month period in which a revision occurs which

        16       relates six months back because they get new and

        17       better numbers in the second three-month period.

        18                      SENATOR BRUNO:  There are

        19       adjustments, but once you have a targeted

        20       number, then there can be adjustments as you go

        21       forward.

        22                      SENATOR DOLLINGER:  Again through

        23       you, Mr. President.  If we're making a six-month











                                                             
1608

         1       adjustment, how do we end up with the kind of

         2       accuracy, the kind of number that would be

         3       pegged to state spending which occurs -- I

         4       assume the cap would take effect on April 1, the

         5       day the budget is passed.  That's when the cap

         6       would go into effect for the past year.  Isn't

         7       that correct?

         8                      SENATOR BRUNO:  For the future,

         9       and the numbers would relate to the past

        10       effective to the particular date.

        11                      SENATOR DOLLINGER:  Okay.  Again

        12       through you, Mr. President.

        13                      SENATOR BRUNO:  And I might just

        14       add in that answer that this year's budget when

        15       we talk about how we would limit spending,

        16       Senator Leichter is right.  This year's budget

        17       would not meet this criteria.  But guess what?

        18       It would allow us this year to spend $62

        19       billion, not exactly a pittance on behalf of the

        20       people of this state.  62 billion, Senator,

        21       within the confines of this 9 percent determined

        22       by this formula.

        23                      SENATOR DOLLINGER:  Again through











                                                             
1609

         1       you, Mr. President, to Senator Bruno.  What I

         2       understand is that we will use last year's

         3       personal income to determine the cap for the

         4       next year's spending.  Isn't that correct?

         5                      SENATOR BRUNO:  To the previous

         6       June, that is correct.

         7                      SENATOR DOLLINGER:  Okay.  So

         8       it's all retroactive.  The calculation is

         9       retroactive, yet the year we're going to spend

        10       into is the year that -- we're going to be

        11       confined by last year's numbers.  So if the

        12       economy picked up and we had lots of income

        13       pouring in, in the next fiscal year, we would be

        14       capped to what had occurred the year before.

        15                      SENATOR BRUNO:  Previous June,

        16       that is correct.

        17                      SENATOR DOLLINGER:  So even as

        18       the economy picks up, the state couldn't spend

        19       any more money to continue to make sure the

        20       economy keeps moving.  Isn't that correct?

        21                      SENATOR BRUNO:  That is,

        22       Senator.  Bottom line to this discussion really

        23       relates to whether you want to spend and tax or











                                                             
1610

         1       whether you want to change the direction of this

         2       state and stop the spending and stop the taxing,

         3       and those are decisions each of us have to make

         4       individually.

         5                      SENATOR DOLLINGER:  But again

         6       through you, Mr. President.  If the economy

         7       picked up in the budget year and we decided that

         8       we wanted to give more money to business to

         9       further prime the pump to keep the economy

        10       going, the drag on our ability to do that would

        11       be the fact that the tax receipts the year

        12       before had been less.

        13                      SENATOR BRUNO:  Senator, again,

        14       the formula would dictate that once you get over

        15       certain numbers, quarter of one percent as

        16       within this cap, it goes into the stabilization

        17       fund and that money would then be used when it

        18       goes over a certain percent to reduce taxes and

        19       reduce debt, and I would think, Senator, that

        20       those are two things that your constituents

        21       would like to have happen.

        22                      SENATOR DOLLINGER:  Again through

        23       you, Mr. President.  What, Senator Bruno, would











                                                             
1611

         1       be the mechanism for the actual reduction of

         2       that debt?  When would you decide that you've

         3       got enough money in the account to make the

         4       calculation that you're going to reduce the

         5       debt?  Would you have to wait a whole year to do

         6       it?  Would you wait till March 31st when you

         7       close the books and then said, "Okay.  Now we

         8       got more than 2.5 -- .25 percent more than we

         9       anticipated; therefore, we will give a reduction

        10       in income taxes or in debt reduction in the

        11       following year"?  Is that the way it would

        12       work?

        13                      SENATOR BRUNO:  It would in the

        14       next current year.  You would deal with it in

        15       the normal budget process.  You would make

        16       appropriations just as we are doing now in the

        17       normal budget process.

        18                      SENATOR DOLLINGER:  Again,

        19       through you, Mr. President.

        20                      ACTING PRESIDENT HOBLOCK:

        21       Senator Bruno, do you continue to yield?

        22                      SENATOR BRUNO:  Yes, Mr.

        23       President.











                                                             
1612

         1                      SENATOR DOLLINGER:  Two other

         2       parts of the bill.  Senator Leichter dealt with

         3       the emergency clause.  I want to just ask one

         4       question.  In your judgment, Senator, as the

         5       author of this bill, is there anything that's

         6       happened in the State of New York in the last

         7       ten years that would have been an emergency and

         8       triggered the emergency clause in this bill?

         9       Anything?

        10                      SENATOR BRUNO:  I can't relate to

        11       that now.  If I just reviewed the last ten

        12       years, I might think of some situations.  But

        13       off the top of my head, no, I don't think of

        14       any.

        15                      SENATOR DOLLINGER:  Through you,

        16       Mr. President.  Senator, you have been one of

        17       the leading spokesmen of the fact that we lost a

        18       half a million jobs in this state.  In your

        19       judgment, is the fact that we lost a half a

        20       million jobs in this state an emergency under

        21       this bill to allow the Governor to bring forth

        22       additional spending under the requirements of

        23       this bill?











                                                             
1613

         1                      SENATOR BRUNO:  Senator, that's

         2       the difference between you and me.  You think

         3       spending -- state spending, increasing spending

         4       in some ways creates economic development jobs.

         5       Haven't you learned from the last 12 years of

         6       the failures of the past administration that

         7       when government overspends you lose jobs to

         8       other states who control spending and control

         9       taxes?  You have it philosophically reversed.

        10       You are a Liberal.  You are a liberal spender,

        11       and you are a liberal taxer, and that's what

        12       this bill is all about.

        13                      SENATOR DOLLINGER:  Could I

        14       simply ask that Senator Bruno answer the

        15       question?

        16                      ACTING PRESIDENT HOBLOCK:

        17       Senator Dollinger.

        18                      SENATOR DOLLINGER:  Could I ask

        19       that Senator Bruno answer the question?   I'll

        20       deal with the issue of whether I'm a liberal

        21       spender, because while you were voting for those

        22       two budgets the last year, I voted against them

        23       with the other guy who sat across the hall who











                                                             
1614

         1       now sits down in that armed fortress on the

         2       second floor and is the governor of this state.

         3       I was voting no while you were voting yes.  Who

         4       is the liberal spender, Senator?

         5                      Senator, it's you.  It's not me.

         6       I'm not the guy who is at the fat farm who says,

         7       "Take all the food away.  I can't stop

         8       eating."  I am willing to stand up and say we

         9       shouldn't have eaten as much in the last two

        10       years.  I'm the guy who voted against the

        11       budgets.  I wasn't voting for all those liberal

        12       tax and spend budgets that you were voting for

        13       and that your members of the house were voting

        14       for.  I hate to say it, Senator, but you're

        15       incorrect on the facts.

        16                      Will Senator Bruno yield to two

        17       other questions on the bill?

        18                      ACTING PRESIDENT HOBLOCK:

        19       Senator Bruno, will you yield?

        20                      SENATOR BRUNO:  Senator, if you

        21       would like to continue this for the next two

        22       hours, I think there are other people that might

        23       want to be heard, so I will yield to one more











                                                             
1615

         1       question and then I am going to vacate the

         2       premises until you get through, and then I will

         3       resume, whoever wants to talk, in listening.

         4       Okay?

         5                      SENATOR DOLLINGER:  That's fine.

         6                      SENATOR BRUNO:  Is that fair

         7       enough?

         8                      SENATOR DOLLINGER:  That's fine,

         9       Senator.  I didn't get a chance to talk

        10       yesterday.  I was cut off.  I'm going to take my

        11       time today.

        12                      There's just one other question I

        13       would ask the Senator to yield to.

        14                      SENATOR BRUNO:  We all enjoy

        15       listening, so be my guest.

        16                      SENATOR DOLLINGER:  In the bill

        17       by Constitution -- by Constitution, the bill

        18       says that we're going to rely on the United

        19       States Department of Commerce to make the

        20       calculation of personal income which is the

        21       trigger under this bill, isn't that correct,

        22       Senator?

        23                      SENATOR BRUNO:  That is correct,











                                                             
1616

         1       Senator.

         2                      SENATOR DOLLINGER:  Why or was

         3       there any consideration given to the fact that

         4       that should be done by the elected Comptroller

         5       of the State of New York, the person who is

         6       charged by the Constitution of this state with

         7       determining our financial condition?  Why

         8       shouldn't we keep the power to make this

         9       determination here at home rather than rely on

        10       Washington which has such a bad habit of sending

        11       us bad census numbers and all kinds of other bad

        12       data?  Why would we allow that to go to

        13       Washington?

        14                      SENATOR BRUNO:  Because the

        15       judgment was made to use this particular method

        16       rather than another.  It was just a judgment

        17       that was made, and I believe it's a correct

        18       one.  There are other ways to calculate or

        19       justify, and the Comptroller might have been a

        20       suitable alternative.  That's not the way the

        21       bill is drafted.

        22                      SENATOR DOLLINGER:  Just one

        23       final question.











                                                             
1617

         1                      ACTING PRESIDENT HOBLOCK:

         2       Senator Dollinger.

         3                      SENATOR DOLLINGER:  Would the

         4       Majority Leader entertain an amendment to change

         5       that provision, delete the Department of

         6       Commerce, United States Department of Commerce,

         7       and insert the Comptroller as the person who

         8       would make the judgment of the personal income?

         9       He could use the Department of Commerce's

        10       number, but he wouldn't be bound by it.  He

        11       would have to make his own certification.

        12                      ACTING PRESIDENT HOBLOCK:

        13       Senator Bruno, do you yield to another

        14       question?

        15                      SENATOR BRUNO:  If after this

        16       resolution is passed if you want to submit a

        17       chapter amendment, we will take a look at that

        18       as to the merits.

        19                      SENATOR DOLLINGER:  Would you do

        20       it today?  Could I submit these amendments with

        21       unanimous consent of the house?

        22                      SENATOR BRUNO:  We would not do

        23       it today, Senator.  We don't have enough











                                                             
1618

         1       notice.  I can't study it.  I can't review it.

         2       I'd appreciate you following some procedure.  I

         3       might want to have a hearing on it.  I might

         4       want to do all those things that Senator

         5       Leichter proposes; so how can you ask me to do

         6       it now immediately?  It's totally unfair.  I

         7       can't manage that.

         8                      SENATOR DOLLINGER:  Senator, you

         9       took the words right -

        10                      SENATOR BRUNO:  I wish that you

        11       could use a more lengthy process in these

        12       deliberations.

        13                      SENATOR DOLLINGER:  Thank you.

        14                      Mr. President, on the bill.

        15                      ACTING PRESIDENT HOBLOCK:  On the

        16       bill.

        17                      SENATOR DOLLINGER:  I guess I sit

        18       here in almost astonishment that I am being

        19       accused of bringing it in at the last minute.  I

        20       saw this bill in the Judiciary Committee.  I

        21       told the chair of the Judiciary Committee I was

        22       going to go back, write up a series of questions

        23       since it was the first time I had had a chance











                                                             
1619

         1       to look at the bill.  I wrote up a series of

         2       questions.  I wrote up a series of little

         3       amendments.  I sent them to the Judiciary

         4       Committee.  I sent them to all the members,

         5       trying to scramble like mad.

         6                      Why?  Because I didn't put this

         7       bill on the floor.  Someone else decided to put

         8       it on, on the Judiciary Committee, on the Rules

         9       Committee, on the Senate, and all in one day;

        10       and I'm being accused of rushing it by trying to

        11       put some amendments that will hopefully make it

        12       a better bill and allow me to vote for it?  Now,

        13       I don't understand it at all.

        14                      Mr. President, on the bill.  I

        15       guess I'm astounded.  I hear people saying that

        16       the Liberals are spending; that we just -

        17       Senator Bruno said we just can not control

        18       spending.  The answer to that question is he is

        19       absolutely, totally 100 percent wrong.  All you

        20       have to do is just say no; that little thing

        21       that Nancy Reagan made famous, "Just say no."

        22                      I wasn't saying yes, yes, yes,

        23       for the last decade, but there are a whole bunch











                                                             
1620

         1       of people in this chamber who were; and,

         2       frankly, you strike me like that 18-year-old kid

         3       who goes on his first drinking binge and then

         4       says, "God, please don't ever let me drink

         5       again.  I never want to drink again.  I never

         6       want to touch alcohol again."  He wakes up the

         7       next morning over the course of his life and he

         8       says, "Drinking in moderation isn't that bad.

         9       It's when you go on binges that you go

        10       absolutely out of your mind."

        11                      I submit Senator Bruno is

        12       correct.  We may have been going on a binge in

        13       the last ten years, but the solution is right

        14       here, right in this chamber.  It's not with a

        15       constitutional amendment that I am now being

        16       told I can't even amend to change some of the

        17       powers in it, to maybe add corporate income as

        18       well as personal income so we recognize that

        19       there's a corporate use of the services and the

        20       spending of this state.

        21                      And, lastly, the other addition

        22       that I was going to make if Senator Bruno would

        23       have allowed me to put the amendment on the











                                                             
1621

         1       floor was a little tiny amendment that would

         2       change the tax account and would say that in

         3       addition to allowing a reduction of state

         4       property taxes, you could also use the funds

         5       that accrue in this tax limitation account -

         6       use it to reduce local property taxes so that

         7       county executives and our counties would be able

         8       to find their local property taxes go down, the

         9       most regressive tax that we have.  It only says

        10       can be used for debt reduction or state tax

        11       reduction.  Why wouldn't you want to use it for

        12       local property tax reduction?

        13                      You don't want to entertain the

        14       amendments.  You jam these bills through.

        15       Senator Leichter is absolutely correct.  We're

        16       doing this all in one fell swoop.

        17                      ACTING PRESIDENT HOBLOCK:

        18       Senator Goodman.

        19                      SENATOR GOODMAN:  Would Senator

        20       yield to one brief question?

        21                      SENATOR DOLLINGER:  I'd be glad

        22       to.

        23                      ACTING PRESIDENT HOBLOCK:











                                                             
1622

         1       Senator Dollinger, will you yield?

         2                      SENATOR DOLLINGER:  Yes.

         3                      ACTING PRESIDENT HOBLOCK:

         4       Senator Goodman, he yields.

         5                      SENATOR GOODMAN:  Senator, I sit

         6       here in some degree of amazement listening to

         7       your rewriting of the history of past debates

         8       and the adoption of our budgets.  It had been my

         9       impression based upon what I had heard through

        10       my ears that the principal reason on which

        11       people on your side of the aisle voted against

        12       our budgets was not because they expended too

        13       much but because they expended too little; and,

        14       in fact, there have been specific references in

        15       these debates to various areas in which the

        16       people of the state were being shortchanged by

        17       virtue of expenditures which were too slim, not

        18       sufficiently nutritious for the needs of all

        19       these people, whether in the field of education

        20       or health care or care for various people in

        21       their housing needs and the like.

        22                      Now, do I understand you to say

        23       that you depart from the general trend of











                                                             
1623

         1       thinking of your colleagues on that side and

         2       that the reason that you voted against the

         3       budget was that it expended too much?  Merely

         4       for clarification.

         5                      SENATOR DOLLINGER:  If you look

         6       at my discussion with Senator Pataki last year

         7       when I joined him in voting against the budget,

         8       it was for the exact same reason.  I'm only

         9       standing up here suggesting why I voted against

        10       it, not anybody else in the house.

        11                      What I am suggesting, however, is

        12       when you say that you can't control spending,

        13       the problem lies with the people in this

        14       chamber.  We can say no.  We can just say no.

        15                      ACTING PRESIDENT HOBLOCK:

        16       Senator DeFrancisco.

        17                      SENATOR DeFRANCISCO:  Would

        18       Senator Dollinger yield to a question?

        19                      SENATOR DOLLINGER:  Sure.

        20                      ACTING PRESIDENT HOBLOCK:

        21       Senator Dollinger will yield.

        22                      SENATOR DeFRANCISCO:  You ran for

        23       re-election this past October, did you not?











                                                             
1624

         1                      SENATOR DOLLINGER:  I ran in

         2       November, yes.  Actually ran for most of the

         3       spring, summer and fall.

         4                      SENATOR DeFRANCISCO:  Did you?

         5       During that period of time, in any of your

         6       campaign literature, did you highlight the fact

         7       that you brought more educational funds back to

         8       your district?

         9                      SENATOR DOLLINGER:  Actually, I

        10       didn't, no.

        11                      SENATOR DeFRANCISCO:  Did you

        12       ever mention that during the course of your

        13       campaign that you brought more money back to the

        14       district for any programs?

        15                      SENATOR DOLLINGER:  No, I did

        16       not.  I did not.

        17                      SENATOR DeFRANCISCO:  Okay.  Very

        18       good.  Thank you.

        19                      SENATOR DOLLINGER:  I did not.  I

        20       thought it would be duplicitous to do that in

        21       light of my vote against the budget.

        22                      ACTING PRESIDENT HOBLOCK:

        23       Senator Abate.











                                                             
1625

         1                      SENATOR ABATE:  Yes, Mr.

         2       President.  I'm not sure who should yield to

         3       this question on the bill.  Is it Senator

         4       Velella?

         5                      SENATOR VELELLA:  Yes.

         6                      ACTING PRESIDENT HOBLOCK:

         7       Senator Velella, do you yield?

         8                      SENATOR ABATE:  I think as was

         9       said by a number of people, it's not enough just

        10       to pass legislation because we believe in a

        11       concept.  We have to understand the details of a

        12       bill and what drives the bill, understanding the

        13       wording of the bill.  This is a formula-driven

        14       cap, and the cap is driven by nine percent of

        15       the state personal income collected in the

        16       previous year.  My question is, why is it nine

        17       percent and not ten percent, twelve percent, six

        18       percent?  How is that formula arrived at,

        19       because this is the base -- the prime basis for

        20       this formula.

        21                      SENATOR STAFFORD:  Well, that's

        22       obviously a very -

        23                      ACTING PRESIDENT HOBLOCK:











                                                             
1626

         1       Senator Stafford.

         2                      SENATOR STAFFORD:  Thank you.

         3                      That's a very fair question, but

         4       what we're looking at, when you take your family

         5       to the movies, it used to be reasonable.  Now

         6       you're lucky if you get out of it for $100.  My

         7       point is, you only go as much as you can

         8       afford.  That would be nice, possibly.  Some

         9       would say that we could spend more.  Others

        10       would argue that we shouldn't spend more even if

        11       we had it; we should leave it with the people.

        12       So I think it's a compromise.  It's something

        13       that we hammered out on the anvil of discussion,

        14       what positions people had, and I think that's

        15       something we felt we could afford.  It was fair

        16       and still provided the needs of our people,

        17       considering inflation and all other matters.

        18       You know that it's probably what, twice -- twice

        19       the -- over twice the rate of inflation, and I

        20       would suggest maybe we shouldn't be spending

        21       more than that.

        22                      SENATOR ABATE:  Yes, on the

        23       bill.  I agree that we should be exercising -











                                                             
1627

         1                      ACTING PRESIDENT HOBLOCK:

         2       Senator Abate on the bill.

         3                      SENATOR ABATE:  Yes.  -

         4       exercising fiscal discipline and we should be

         5       eradicating waste and doing more with less, but

         6       my problem is, none of us -- and I have just had

         7       the opportunity to see the bill for the first

         8       time -- none of us have been privy to that

         9       discussion around what we can afford, what is

        10       fair, and what is reasonable, and I would

        11       suggest that we should open this up to further

        12       debate and hearing so we can understand how you

        13       arrived at that formula and what the

        14       investigation -- the experts you're relying

        15       upon.  None of us are privy.  All we're hearing

        16       today is the conclusions, not the thought

        17       process, not the information that was before you

        18       when you arrived at this conclusion, and I look

        19       forward to more debate on this issue.

        20                      ACTING PRESIDENT HOBLOCK:

        21       Senator Paterson.

        22                      SENATOR PATERSON:  Mr. President,

        23       what we did -- and I want to thank Senator











                                                             
1628

         1       Galiber and the Finance Minority for compiling

         2       this -- is we took the gross personal income

         3       from calendar year July 1st, 1993 to June 30th,

         4       1994, and we computed that with some help from

         5       the Majority at $463.8 billion.  We then took

         6       that number and multiplied it by 100 over 9,

         7       which would give us 9 percent of that number,

         8       and we got $41.7 billion.  Now, we find that

         9       Governor Pataki's budget for this year, 1995-96

        10       is $42.5 billion.  So, therefore, Governor

        11       Pataki's budget, by my calculation, would be

        12       9.17 percent of the available gross personal

        13       income if the statistics are somewhat similar,

        14       meaning that the Governor's current budget is

        15       actually over the 9 percent.  What that would

        16       also mean is that we would have a deficit of

        17       $5.8 billion and then would have to come up with

        18       another $800 million in savings.

        19                      Now, I cite this as an example

        20       not for total accuracy, but just to point out

        21       that where we limit ourselves in such derision,

        22       strictly enforcing something, putting government

        23       in a sense on automatic pilot, we can't make the











                                                             
1629

         1       adjustments that we might have to make short of

         2       a natural disaster, which is why I'm not in

         3       support of the bill.

         4                      Furthermore, I would have to say

         5       to the Majority, if they do not get rid of this

         6       cap by April, I personally may lead a strike of

         7       the Senate Minority and, who knows, maybe

         8       they'll have to bring in replacement Senators.

         9                      So, with that, I find that we

        10       have to really focus on -- on the actual cuts we

        11       might make in a particular year, rather than

        12       trying to set a standard for events that will

        13       occur five years down the road that we cannot

        14       anticipate.

        15                      Thank you, Mr. President.

        16                      ACTING PRESIDENT HOBLOCK:  On the

        17       resolution, call the roll.

        18                      SENATOR PATERSON:  Slow roll

        19       call.

        20                      ACTING PRESIDENT HOBLOCK:  The

        21       clerk will call the roll slow.

        22                      THE SECRETARY:  Senator Abate.

        23                      SENATOR ABATE:  No.











                                                             
1630

         1                      THE SECRETARY:  Senator Babbush,

         2       excused.

         3                      Senator Bruno.

         4                      (Affirmative indication.)

         5                      THE SECRETARY:  Aye.

         6                      Senator Connor.

         7                      (Negative indication.)

         8                      THE SECRETARY:  No.

         9                      Senator Cook.  Senator Cook.

        10                      SENATOR COOK:  Yes.

        11                      THE SECRETARY:  Senator

        12       DeFrancisco.

        13                      SENATOR DeFRANCISCO:  Yes.

        14                      THE SECRETARY:  Senator DiCarlo.

        15                      (There was no response.)

        16                      Senator Dollinger.

        17                      SENATOR DOLLINGER:  To explain my

        18       vote briefly, Mr. President.

        19                      ACTING PRESIDENT HOBLOCK:

        20       Senator Dollinger to explain his vote.

        21                      SENATOR DOLLINGER:  Thank you,

        22       Mr. President.

        23                      I think this is a concept that we











                                                             
1631

         1       have the ability to remedy ourselves.  We don't

         2       need the constitutional authority to tell

         3       ourselves we're not going to spend any more

         4       money.  I think that the amendments I discussed

         5       could have improved this and perhaps made it a

         6       more palatable matter, but the Majority is not

         7       willing to entertain those.  I disagree with the

         8       procedure; I disagree with the process and I

         9       disagree with the substance.  I vote no.

        10                      THE SECRETARY:  Senator Espada.

        11                      SENATOR ESPADA:  No.

        12                      THE SECRETARY:  Senator Farley.

        13                      SENATOR FARLEY:  Aye.

        14                      THE SECRETARY:  Senator Galiber.

        15                      SENATOR GALIBER:  No.

        16                      THE SECRETARY:  Senator Gold.

        17                      (There was no response.)

        18                      Senator Gonzalez.

        19                      SENATOR GONZALEZ:  No.

        20                      THE SECRETARY:  Senator Goodman.

        21                      SENATOR GOODMAN:  Yes.

        22                      THE SECRETARY:  Senator Hannon.

        23                      SENATOR HANNON:  Yes.











                                                             
1632

         1                      THE SECRETARY:  Senator Hoblock.

         2                      SENATOR HOBLOCK:  Yes.

         3                      THE SECRETARY:  Senator Hoffmann.

         4                      SENATOR HOFFMANN:  Yes.

         5                      THE SECRETARY:  Senator Holland.

         6                      (There was no response.)

         7                      Senator Johnson.

         8                      SENATOR JOHNSON:  Aye.

         9                      THE SECRETARY:  Senator Jones.

        10                      (There was no response.)

        11                      Senator Kruger.

        12                      SENATOR KRUGER:  No.

        13                      THE SECRETARY:  Senator Kuhl.

        14                      SENATOR KUHL:  Aye.

        15                      THE SECRETARY:  Senator Lack.

        16                      (There was no response.)

        17                      Senator Larkin.

        18                      (There was no response.)

        19                      Senator LaValle.

        20                      SENATOR LAVALLE:  Aye.

        21                      THE SECRETARY:  Senator Leibell.

        22                      SENATOR LEIBELL:  Yes.

        23                      THE SECRETARY:  Senator Leichter.











                                                             
1633

         1                      SENATOR LEICHTER:  Mr. President,

         2       briefly to explain my vote.

         3                      ACTING PRESIDENT HOBLOCK:

         4       Senator Leichter to explain his vote.

         5                      SENATOR LEICHTER:  Yeah.  Putting

         6       aside for a moment what I think is a poorly

         7       worded resolution, and even for the moment, the

         8       whole idea that we would want to hamstring

         9       government this way and a notion that I,

        10       frankly, find offensive that you cannot trust

        11       your elected representatives to do the sensible

        12       and the right thing, what disturbs me is that

        13       there is an underlying economic approach here

        14       which fails to understand what this state needs

        15       and what the problems of the state are.

        16                      The problems of the state have

        17       not been that we have overspent.  We've lost

        18       jobs for any number of reasons.  Jobs have gone

        19       to Bangladesh not because we spend a couple

        20       hundred million dollars more.  We've lost jobs

        21       because of worldwide economic competition.  We

        22       can meet some of that competition.  We have a

        23       wonderful work force here in New York State.  We











                                                             
1634

         1       have resources and other things.  We need to

         2       build that up.  We need to educate our people.

         3       We need to spend money prudently, but we also

         4       have to spend money at times to create economic

         5       prosperity, and to limit ourselves in this

         6       fashion and to proceed with a viewpoint that

         7       Senator Bruno expressed when I sort of kidded

         8       him -- and certainly no offense was intended

         9       when I said these are the ideas of Calvin

        10       Coolidge and President McKinley.  I mean, it's

        11       as if he's never heard of Maynard Keynes and

        12       other people, economic theories that have to

        13       guide a sensible government, and this blind

        14       approach that the Majority has taken -- which

        15       may be very popular with the public.  "I'm going

        16       to cut taxes.  I'm going to cut spending", and

        17       so on, but in the long run, you're going to

        18       bankrupt the state.  You're going to make this

        19       the "waste state" instead of the Empire State.

        20       I vote no.

        21                      THE SECRETARY:  Senator Levy.

        22                      SENATOR LEVY:  Aye.

        23                      THE SECRETARY:  Senator Libous.











                                                             
1635

         1                      SENATOR LIBOUS:  Aye.

         2                      THE SECRETARY:  Senator Maltese.

         3                      (There was no response.)

         4                      Senator Marchi.

         5                      SENATOR MARCHI:  Aye.

         6                      THE SECRETARY:  Senator

         7       Markowitz.

         8                      (There was no response.)

         9                      Senator Mendez.

        10                      (There was no response.)

        11                      Senator Montgomery.

        12                      ACTING PRESIDENT HOBLOCK:

        13       Senator Montgomery.

        14                      SENATOR MONTGOMERY:  Yes, Mr.

        15       President, to explain my vote briefly.

        16                      I look at this legislation as one

        17       more -- one more statement to the electorate of

        18       the state of New York that we are not really

        19       willing to see the needs of people before the

        20       interest of politics, and I think it's a very

        21       cruel hoax on the public and there is a lot of

        22        -- I hear a lot of this explanation that the

        23       voters have given us a mandate and we're











                                                             
1636

         1       following that mandate, but I don't believe that

         2       the voters have given us a mandate to change the

         3       quality of life in this state to the extent that

         4       none of us will be able to call ourselves

         5       proudly New Yorkers or that we will be able to

         6       refer to our state as the Empire State in ten

         7       years, and we know that cutting taxes, in fact,

         8       does not create jobs.  We are not talking about

         9       creating jobs.  We have lost our edge on the

        10       automobile industry in this nation.  We've lost

        11       the manufacturing industry in this nation.  We

        12       have lost the job base where any man or woman

        13       could go out and get a job and support

        14       themselves with decency and pride and expect to

        15       be able to send their children to college and

        16       expect to be able to buy a home, and expect to

        17       be able to buy a car based on the fact that

        18       there was a job for them that they could do,

        19       that they had the skills to do and that they are

        20       willing to do.

        21                      We are not talking about that.

        22       We're just talking about pretending that we're

        23       cutting taxes to put money in the pockets of











                                                             
1637

         1       people, and it really is not money, and it

         2       really is never going to reach their pockets

         3       because they're going to pay it out in every

         4       other way possible in addition to making huge

         5       contributions just to keep our little programs

         6       going in the districts that we represent because

         7       they're going to be out of business very

         8       shortly.

         9                      I'm being asked to double the

        10       number of contributions I'm making personally to

        11       letter programs because they're going to be out

        12       of business and each one of us is going to have

        13       to face at that, so we're not going to get any

        14       money back in our taxes, so that is a hoax on

        15       the public I will not participate in.  I vote

        16       no.

        17                      THE SECRETARY:  Senator Nanula.

        18                      (There was no response.)

        19                      Senator Nozzolio.

        20                      SENATOR NOZZOLIO:  Mr. President,

        21       I rise to explain my vote.

        22                      ACTING PRESIDENT HOBLOCK:

        23       Senator Nozzolio to explain his vote.











                                                             
1638

         1                      SENATOR NOZZOLIO:  My colleagues,

         2       we are debating this measure today as most

         3       families would have to sit around their kitchen

         4       table and decide whether or not they had to cap

         5       their own spending habits.  Each family in the

         6       state does.  Each business of the state has had

         7       to retrench over these years to do more with

         8       less and to make their operations more effective

         9       and efficient.

        10                      What this spending cap does is

        11       stop the rate of growth of government.  That's

        12       all it does.  It doesn't reduce government.  It

        13       doesn't eliminate government.  It only reduces

        14       the rate of growth.  I hear all this tongue

        15       lashing about how this measure will be the end

        16       of the Empire State.  Frankly, this measure will

        17       ensure that we have an Empire State once again.

        18       It will produce jobs.  It will show businesses

        19       and families across this state that New York

        20       government, for a change, will be living within

        21       its means.

        22                      Mr. President, that's why I

        23       support this measure.











                                                             
1639

         1                      THE SECRETARY:  Senator Onorato.

         2                      SENATOR ONORATO:  Mr. President,

         3       to explain my vote.

         4                      ACTING PRESIDENT HOBLOCK:

         5       Explain your vote, Senator Onorato.

         6                      SENATOR ONORATO:  I voted for

         7       this amendment -- resolution in the past, but I

         8       have some serious doubts today that it doesn't

         9       include families in the limitations on the

        10       spending, especially when it comes to tax

        11       incentives for the corporations, and I always

        12       like to say that I want to be fair and give

        13       everybody a fair share of the pie, and I don't

        14       believe that this particular resolution goes far

        15       enough.  If you're going to cut the -- put a cap

        16       on spending, let's include it on everybody.  If

        17       an amendment addressing my concerns meet those

        18       requirements, I will be very, very happy to vote

        19       in the affirmative, but as of today, I vote no

        20       on this current one.

        21                      THE SECRETARY:  Senator

        22       Oppenheimer.

        23                      SENATOR OPPENHEIMER:  Nay.











                                                             
1640

         1                      THE SECRETARY:  Senator Padavan.

         2                      SENATOR PADAVAN:  Yes.

         3                      THE SECRETARY:  Senator Paterson.

         4                      ACTING PRESIDENT HOBLOCK:

         5       Senator Paterson, to explain your vote.

         6                      SENATOR PATERSON:  Thank you, Mr.

         7       President.

         8                      The investment tax credit which

         9       is actually a subsidy does not appear as a

        10       subsidy in the budget because, since it's

        11       regarded as a corporate franchise tax, it

        12       escapes the cap.  So tax expenditures really are

        13       not listed because they are part of the tax

        14       system, and I think this is a way that we are -

        15       and it's been said by members of both sides of

        16       the aisle, really engaging in a lot of back door

        17       financing and back door expenditures aren't even

        18       going to be listed under this system.  Because

        19       of this and because of the unemployment, I think

        20       that will accrue, I vote no.

        21                      THE SECRETARY:  Senator Present.

        22                      SENATOR PRESENT:  Aye.

        23                      THE SECRETARY:  Senator Rath.











                                                             
1641

         1       Senator Rath.

         2                      SENATOR RATH:  Aye.

         3                      THE SECRETARY:  Senator Saland.

         4                      SENATOR SALAND:  Aye.

         5                      THE SECRETARY:  Senator Santiago.

         6                      (There was no response.)

         7                      THE SECRETARY:  Senator Sears.

         8                      SENATOR SEARS:  Aye.

         9                      THE SECRETARY:  Senator Seward.

        10                      SENATOR SEWARD:  Aye.

        11                      THE SECRETARY:  Senator Skelos.

        12                      SENATOR SKELOS:  Yes.

        13                      THE SECRETARY:  Senator Smith.

        14                      SENATOR SMITH:  No.

        15                      THE SECRETARY:  Senator Solomon.

        16                      (There was no response.)

        17                      Senator Spano.

        18                      SENATOR SPANO:  Aye.

        19                      THE SECRETARY:  Senator

        20       Stachowski.

        21                      SENATOR STACHOWSKI:  Yes.

        22                      THE SECRETARY:  Senator Stafford.

        23                      SENATOR STAFFORD:  Aye.











                                                             
1642

         1                      THE SECRETARY:  Senator Stavisky

         2       is excused.

         3                      Senator Trunzo.

         4                      SENATOR TRUNZO:  Aye.

         5                      THE SECRETARY:  Senator Tully.

         6                      (There was no response.)

         7                      Senator Velella.

         8                      SENATOR VELELLA:  Yes.

         9                      THE SECRETARY:  Senator Volker.

        10                      SENATOR VOLKER:  Yes.

        11                      THE SECRETARY:  Senator Waldon.

        12                      (There was no response.)

        13                      THE SECRETARY:  Senator Wright.

        14                      SENATOR WRIGHT:  Aye.

        15                      ACTING PRESIDENT HOBLOCK:  Call

        16       the absentees.

        17                      THE SECRETARY:  Senator DiCarlo.

        18                      SENATOR DiCARLO:  Yes.

        19                      THE SECRETARY:  Senator Gold.

        20                      (There was no response.)

        21                      Senator Holland.

        22                      SENATOR HOLLAND:  Yes.

        23                      THE SECRETARY:  Senator Lack.











                                                             
1643

         1       Senator Lack.

         2                      SENATOR LACK:  Aye.

         3                      THE SECRETARY:  Senator Larkin.

         4                      SENATOR LARKIN:  Aye.

         5                      THE SECRETARY:  Senator Maltese.

         6                      SENATOR MALTESE:  Aye.

         7                      THE SECRETARY:  Senator

         8       Markowitz.

         9                      SENATOR MARKOWITZ:  With all due

        10       respect to Senator Bruno, I vote no.

        11                      THE SECRETARY:  Senator Mendez.

        12                      SENATOR MENDEZ:  No.

        13                      THE SECRETARY:  Senator Nanula.

        14                      SENATOR NANULA:  No.

        15                      THE SECRETARY:  Senator Santiago.

        16                      (There was no response.)

        17                      Senator Solomon.

        18                      (There was no response.)

        19                      Senator Tully.

        20                      SENATOR TULLY:  Aye.

        21                      ACTING PRESIDENT HOBLOCK:

        22       Results?

        23                      THE SECRETARY:  Ayes 38, nays











                                                             
1644

         1       16.

         2                      ACTING PRESIDENT HOBLOCK:  The

         3       resolution is adopted.

         4                      Senator Bruno.

         5                      SENATOR BRUNO:  Yes.  Mr.

         6       President, can we now take up Calendar 134?

         7                      ACTING PRESIDENT HOBLOCK:  The

         8       Secretary will read.

         9                      THE SECRETARY:  Calendar Number

        10       134, Budget Bill, an act to amend the Tax Law,

        11       in relation to reduction of rates and

        12       enhancement of credits under the state personal

        13       income tax.

        14                      ACTING PRESIDENT HOBLOCK:  Read

        15       the last section.

        16                      THE SECRETARY:  Section 21.

        17                      SENATOR BRUNO:  Mr. President -

        18                      SENATOR PATERSON:  Explanation.

        19                      SENATOR BRUNO:  -- before we

        20       proceed, can we recognize Senator Oppenheimer?

        21                      ACTING PRESIDENT HOBLOCK:

        22       Senator Oppenheimer.

        23                      SENATOR OPPENHEIMER:  Thank you











                                                             
1645

         1       very much, Senator Bruno.

         2                      I guess I have to just shout

         3       louder in the future.

         4                      ACTING PRESIDENT HOBLOCK:  I'm

         5       sorry.

         6                      SENATOR OPPENHEIMER:  Or clap my

         7       hands or something.  I would like unanimous

         8       consent to be recorded in the negative on

         9       Calendar Number 67.

        10                      SENATOR BRUNO:  Without

        11       objection, Mr. President.

        12                      ACTING PRESIDENT HOBLOCK:  So

        13       recorded.

        14                      SENATOR BRUNO:  Regular order,

        15       Mr. President.

        16                      ACTING PRESIDENT HOBLOCK:

        17       Explanation has been asked for.

        18                      SENATOR GALIBER:  Yes, there was

        19       an explanation asked for.

        20                      SENATOR BRUNO:  Mr. President, we

        21       just passed in this house with some very sound

        22       judgment by the great majority of people in this

        23       chamber, a spending cap.  When you deal with a











                                                             
1646

         1       spending cap, you can also afford then the

         2       rewards of a spending cap which is a tax cut.

         3                      This bill is a Governor's program

         4       bill.  It will cut taxes over the next four

         5       years $6.8 billion -- 6.8 billion.  It reduces

         6       the top income tax rate from the present level,

         7       close to eight percent to 5.9 percent and at the

         8       bottom of the scale, at 4 percent.  It's

         9       important that we all recognize and understand

        10       that 4.4 billion of this tax cut, two-thirds of

        11       it, goes for people with incomes of under

        12       $100,000 -- under 100,000 a year, and I would

        13       ask you to focus also on the fact that this tax

        14       cut will take about 400,000 people off the tax

        15       rolls as it is implemented, 400,000 people in

        16       this state at the lower income levels will come

        17       off.  It increases the dependency allowances.

        18       It does the things that are important to the

        19       people of this state to help stimulate the

        20       economy and move this economy forward.

        21                      All of us can make excuses on why

        22       we should not have a tax cut.  Can't afford it.

        23       We have to spend the money, but the numbers are











                                                             
1647

         1       all familiar to you in this chamber, too

         2       familiar.  There has been pain and suffering in

         3       this state, especially over the last four or

         4       five years as we led the country in job loss

         5       across the whole United States by 40 percent of

         6       all of the jobs lost coming from New York, not

         7       10 percent, 20 percent.  Just think about that.

         8       That's pain and suffering.

         9                      Nine out of ten times in the last

        10       30 years taxes were cut, jobs increased.  The

        11       estimates are that this tax cut package will

        12       produce about 375,000 jobs.  You know what the

        13       bottom line for that is for the people of this

        14       state?  About $2.1 billion in additional revenue

        15       in this state, 2.1 billion in additional

        16       revenue, and with that additional revenue when

        17       people are prospering, businesses are doing

        18       well, we can afford to do the kinds of things

        19       that we want to do for the people of this state,

        20       as relates to all of the goods and services that

        21       the people of this state would like to have to

        22       improve the quality of their lives but, ladies

        23       and gentlemen, the spending and taxing policies











                                                             
1648

         1       of the past have to be in the past.

         2                      There was a message on November

         3       8th across the country, certainly here in New

         4       York State, demanding change -- demanding

         5       change, not minimal change, not pretending to

         6       cut taxes while in reality we raised taxes.

         7       Those kinds of games should be things of the

         8       past.

         9                      This is a true tax cut.  It is a

        10       job stimulation package.  It will move the

        11       economy of this state forward when the CEO of

        12       IBM made a decision to help all of the people of

        13       this state investing 245 million in new

        14       facilities, retaining jobs, growing jobs here.

        15       Did you hear and read what his comments were?

        16       He couldn't have been more complimentary to the

        17       new administration of Governor George Pataki and

        18       indicated that already they see a change of

        19       attitude by the people in charge in New York

        20       State from taxing and spending to reducing

        21       spending, cutting taxes, making government more

        22       friendly to people in business.

        23                      What prompted their decision?











                                                             
1649

         1       How many other hundreds of companies are there

         2       like the IBMs of this world looking at New York

         3       to see how serious we are?  Are we going to

         4       continue the failing ways in the past?  The

         5       answer is no.  This Governor has delivered a

         6       very strong message.  He has said, "We will do a

         7       25 percent tax cut for the people of this state

         8       over the next four years."  This is the

         9       Governor's tax cut package.  The people of this

        10       state elected him because they believed in his

        11       message of spending less and cutting taxes.

        12                      Less than two years from now, all

        13       of us in elected office in this chamber, most of

        14       us, will face a constituency, and that

        15       constituency is going to judge us on what we

        16       have done for them and for the people of this

        17       state.  So I would just remind everyone in this

        18       chamber, we have a responsibility to our

        19       constituents and to the people of this state,

        20       and our responsibility is to deliver good

        21       government and with a people vote, we ought to

        22       be responsive to the people, and this Governor

        23       is not forgetting the promises that he made











                                                             
1650

         1       after he's elected.  He has put together a

         2       package.  He was elected with this in the

         3       forefront of his campaign, and it is now before

         4       this house.

         5                      So I ask my colleagues to review

         6       it, to study it.  It has been deliberated over

         7       in both chambers in various ways, reviewed by

         8       the press.  It's no stranger to any of us.  So

         9       now it comes time to stand up and choose.  Do we

        10       live in the past and continue to spend and tax

        11       or do we recognize that the present for our

        12       constituents, for a better life in this state

        13       and in the future relates to cutting spending

        14       and cutting taxes?

        15                      Thank you, Mr. President.

        16                      ACTING PRESIDENT HOBLOCK:

        17       Senator Paterson.

        18                      SENATOR PATERSON:  Mr.

        19       President -

        20                      SENATOR GOODMAN:  Mr. President,

        21       is there a list?

        22                      ACTING PRESIDENT HOBLOCK:  I

        23       apologize.  Senator Stafford is next on the











                                                             
1651

         1       list.  I apologize.

         2                      SENATOR STAFFORD:  I will pass.

         3       I think the question was, do we have a list of

         4       speakers, and we probably do.  I'll speak later.

         5                      ACTING PRESIDENT HOBLOCK:  Okay.

         6       Senator Goodman is next.

         7                      SENATOR GOODMAN:  Mr. President,

         8       let's sit back for a moment and take a non

         9       statistical look at what we're being asked to do

        10       today.  Let's take a little helicopter trip over

        11       recent history and look down on the broad trends

        12       that relate to this action.

        13                      In very plain and simple terms

        14       what has happened is that New York State has

        15       been on a downward escalator propelled

        16       ineluctably by the fact that it has been grossly

        17       uncompetitive with its neighboring states,

        18       grossly unable to compete in the effort to keep

        19       jobs in the state of New York and to attract new

        20       businesses into the state of New York.

        21                      Specifically, let's take a look

        22       at our neighbors.  Connecticut, personal income

        23       top rate on wage income, 4.5 percent;











                                                             
1652

         1       Massachusetts, 5.9 percent; New Jersey, 6

         2       percent; Pennsylvania, 2.8 percent.

         3                      Mr. President, in every

         4       surrounding state, there has been a magnet

         5       drawing out of our state the most precious and

         6       important thing we can do to help our people

         7       which is to give them long-term jobs.  Let's be

         8       clear.  We're seeing a complete differentiation

         9       of philosophy here.  Many of us have great

        10       compassion and concern for people who are out of

        11       work and being out of work suffer many of the

        12       pangs and arrows of life which is sub...

        13       subsistence level.

        14                      And we ask ourselves the

        15       question, how are we going to assist these

        16       people?  Are we going to assist them by having

        17       government spend for programs which ameliorate

        18       their plight or are we going to try to interlace

        19       in our whole governance and taxation structure,

        20       such an arrangement that we will impel people

        21       into permanent jobs by which they will find a

        22       true place in society and not one dependent on

        23       the largess of a state which can vary from day











                                                             
1653

         1       to day and year to year?

         2                      I respectfully submit to all of

         3       my colleagues on the other side who, I think,

         4       have a definite concern and compassion for the

         5       welfare of people, that the best formula we can

         6       find for the permanence of a welfare arrangement

         7       is to make sure that we give people jobs that

         8       are permanent.  Now, what has that got to do

         9       with taxation?

        10                      There's an overwhelming body of

        11       evidence which points to the fact that when we

        12       are surrounded by states that have lower income

        13       taxes, it is the income tax which is the

        14       principal subject for analysis when we determine

        15       where a corporate executive is going to put his

        16       concerns, his subsidiaries, his factories, his

        17       headquarters and the like.  When a chief

        18       executive -- and we've heard it time and again

        19       from their lips -- is thinking about where to go

        20       into another state to try to find a more

        21       congenial climate, he inevitably -- one of the

        22       first things he will look at is the tax rate in

        23       that state, and because New York has had an











                                                             
1654

         1       uncompetitively high tax rate over and over

         2       again, decisions have been made to stay away

         3       from New York.

         4                      Now, we certainly can learn from

         5       the lessons of history that we are doing

         6       something wrong.  Frankly, this places us in a

         7       very tough spot.  This is not an easy series of

         8       options which we're being asked to consider this

         9       year.  This is tough stuff.  This is the thing

        10       that tests the sinew of every legislator's

        11       judgment, to see whether we can make an

        12       unpopular decision that is in the best

        13       long-range interest of the people who most need

        14       our help.  Now, I respectfully submit to you,

        15       Mr. President, that what we're doing here has

        16       the best chance of producing the result that we

        17       see.

        18                      Now, the tax proposal of the

        19       Governor was first outlined in a speech that he

        20       made before the Citizens Budget Commission in

        21       New York, and from the moment he made that

        22       statement to the Citizens Budget Commission,

        23       which was at a key point in his election, his











                                                             
1655

         1       prospects for election suddenly skyrocketed

         2       because people got the message.  The only

         3       question was, could he possibly be serious about

         4       the type of tax relief that he proposed?  Now

         5       the election is over and the dust is settling on

         6       that, and we have an opportunity to see just how

         7       serious the new Governor is.

         8                      I don't know about you, but I

         9       have watched him on half a dozen public

        10       television programs on Sundays and the like, and

        11       I've watched very closely his analysis and his

        12       response to questions.  This Governor

        13       understands the economy of the state.  I didn't

        14       have any sense of his understanding while he was

        15       in the Senate because, frankly, he was a rather

        16       quiet man around here.  He rarely stood up on

        17       the floor to debate, but I want to tell you

        18       having observed him very, very closely since his

        19       election, I'm rather impressed, in fact,

        20       profoundly impressed with his grasp of what's

        21       going on here.  He understands the economy.  He

        22       understands the tax structure, and he is

        23       absolutely unwilling to step back from a series











                                                             
1656

         1       of promises he made just because he attained

         2       public office.

         3                      This is not a man who is seeking

         4       to try to stroke the people and to try to be all

         5       things to all people.  He is grabbing the nettle

         6       and he's squeezing it tight in an effort to

         7       bring us into a new era.  The Majority Leader

         8       has amply described the core of that thinking,

         9       and I think it's evident that it's something

        10       which may or may not work and we're going to

        11       find out, but what we're asking the chamber to

        12       do today is to take a step to set up a baseline

        13       which says that we are going to lower taxes

        14       significantly.  We started in 1987, but there's

        15       a generally very deep misunderstanding of what

        16       that legislation was designed to correct.

        17                      You may remember that in the year

        18        '86 there was a change in the federal tax law,

        19       and the change in the federal tax law brought

        20       about a windfall for the state of New York which

        21       if not corrected by us would have resulted in an

        22       unnecessary imposition of taxes on our people.

        23       The significant portion of the '87 tax cut,











                                                             
1657

         1       which we all adopted and for which Sheldon

         2       Silver and many Democrats in the Assembly also

         3       voted, was to do two things:  First, to ride the

         4       windfall and not automatically give away money

         5       that we needed to run the state, but secondly,

         6       to start us on a path of rational tax reduction.

         7                      Now, I don't know how many of you

         8       picked up this morning's Times and noted a

         9       relatively inconspicuous article which said,

        10        "Standard and Poor's Holds Out Prospect of

        11       State Bond Rating Increase."  This has never

        12       been done in my recollection, and I have watched

        13       the raters for a long, long while and, in fact,

        14       when I was Finance Commissioner of New York,

        15       went to the Federal Reserve Board and testified

        16       before the Congress to do something to get those

        17       people to be more responsive to the real world,

        18       and they listened to that.

        19                      They are now saying that, if we

        20       will do two things, cut our taxes and trim our

        21       expenditures to keep pace with those cuts, that

        22       we will be putting ourselves on a long-range,

        23       sounder fiscal basis than ever before in our











                                                             
1658

         1       history, and it would be entitled to a

         2       significant upgrade.  That, in turn, will

         3       trigger certain benefits for us.  It will reduce

         4       the debt service costs which are eating up in -

         5       an ever increasing percentage of the monies that

         6       we expend in our annual budget.

         7                      So there are big things in the

         8       offing here but not without great pain.  Let me

         9       be very candid.  There's been a statement in

        10       certain quarters that there's just been an

        11       earthquake which benefits the Republicans into

        12       the new millennium and that we, because of this

        13       earthquake, suddenly find ourselves in a

        14       pinnacle of power from which we cannot be

        15       dislodged.

        16                      I submit to this chamber, in all

        17       due respect, that this is not an earthquake

        18       which goes in one direction; this is a pendulum

        19       which has swung, and whether this pendulum

        20       continues to swing in the direction of the

        21       Republican thought or whether it comes back and

        22       hits us in the head will largely be up to those

        23       of us on this side of the aisle who are now











                                                             
1659

         1       charged with a responsibility of seeing whether

         2       we can manage competently, and by "competently"

         3       I mean both humanely and effectively, and in the

         4       current budget which confronts us, we're being

         5       asked at this very moment to look at the

         6       categories of expenditure within it to be sure

         7       that we're spending money wisely, that the funds

         8       that we're cutting are not counter-productive,

         9       that there is a return on investment on every

        10       dollar in that budget which will benefit the

        11       people and that, I think, you and we share a

        12       common aim in wanting to do.

        13                      But there's something else I'd

        14       like to comment on briefly.  That's the question

        15       of the theory of Reaganomics.  Many people have

        16       said, Reagonomics was an utter fiasco because

        17       the net result of it was to add trillions of

        18       dollars to our national debt.  That's a true

        19       statement, and there's a reason why it's a true

        20       statement.  The reason is that while the tax

        21       cutting undertaking of the Reaganomics strategy

        22       was, in my judgment, eminently sound, something

        23       else happened on the way to the budget, and that











                                                             
1660

         1       is that expenditures were allowed to get wildly

         2       out of control and while we were cutting taxes,

         3       expenditures were going through the roof.  Even

         4       the Republican cabinet secretaries were being

         5       consumed by their constituencies and they were

         6       allowing expenditures within their vast areas of

         7       responsibility to skyrocket.

         8                      The test is going to be whether

         9       we will fall into the same fallacy, whether we

        10       will make tax cuts and allow the budget to be

        11       busted and go through the roof and, therefore,

        12       create worse deficits than before or whether we

        13       will do these things in tandem and, therefore,

        14       create the discipline necessary for balanced

        15       budgets which, in the long run, will have the

        16       greatest benefit to our people.  There will be

        17       cries of anguish from many quarters and we will

        18       have to distinguish between the legitimate ones

        19       and the ones which demand an answer on our

        20       part.

        21                      But I submit to you today that by

        22       putting in place this tax reduction program, we

        23       are committing ourselves to a responsible course











                                                             
1661

         1       provided it's accompanied by suitable tax -- by

         2       suitable expenditure reduction in tandem.  I

         3       think we're capable of doing that, my

         4       colleagues, but the first step must be to

         5       outline our long-term strategy and looking into

         6       the future, I would say, "Beware, New Jersey and

         7       Connecticut and Pennsylvania and all neighboring

         8       states, Massachusetts, because we are going to

         9       get back in this ball game and we're going to

        10       win it."

        11                      We've got the best people.  We've

        12       got the best natural resources.  We've got the

        13       best technical universities to turn out the

        14       people who can handle the new technology in the

        15       new millennium.  We've got it all provided we

        16       have the strategy which permits it to work.

        17       Let's permit it to work.  Let's pass this bill.

        18                      ACTING PRESIDENT KUHL:  The Chair

        19       recognizes Senator Paterson.

        20                      SENATOR PATERSON:  Thank you, Mr.

        21       President.

        22                      There are four amendments that

        23       are at the desk offered by the Minority in











                                                             
1662

         1       addition to the one that I would convey.

         2       There's one from Senator Waldon, from Senator

         3       Dollinger and Senator Galiber.

         4                      The one that I am offering to the

         5       body right now would establish a new subsection

         6       to Section 616 of the -

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Paterson, would you like to offer that amendment

         9       up at this time, waive its reading and ask for

        10       an opportunity to explain it?

        11                      SENATOR PATERSON:  Yes.  I'll

        12       waive its reading, Mr. President, and -

        13                      ACTING PRESIDENT KUHL:  All

        14       right.  Senator Paterson to explain his

        15       amendment.

        16                      SENATOR PATERSON:  Thank you.

        17                      As I said before, it would add a

        18       new subsection to Section 616 of the Tax Law,

        19       and I think it would comply under what Senator

        20       Goodman described as distinguishing between the

        21       illegitimate anguish and that which demands

        22       action on our part.

        23                      In the Governor's budget, the











                                                             
1663

         1       frail elderly will be vastly hurt through the

         2       denial of home care and the lack of care at all

         3       and also additional losses in nursing home

         4       care.  As a matter of fact, we are cutting

         5       nursing home -- we are cutting home care to 100

         6       hours per week -- 100 home care hours per week.

         7       The state average was 128 hours a week at this

         8       point.  The average in New York City was 36

         9       hours a week, which adds up to 144 hours per

        10       month, but when we look at the distinguishing of

        11       long-term home care and the fact that we have a

        12       moratorium on nursing home construction and the

        13       fact that nursing homes are 80 -- 98 percent

        14       filled to capacity, we realize that the elderly

        15       in this state, and particularly those who have

        16       illnesses, are probably the most afflicted under

        17       our current budget.

        18                      What my amendment would do would

        19       be to establish an additional tax credit and

        20       really what would be a deduction entity for

        21       those who have parents or grandparents living

        22       with them within the home.  We think that this

        23       would add to the extended family.  It would show











                                                             
1664

         1       our children the value of caring for family

         2       members who, unfortunately -- whose tax dollars

         3       provide the broad revenue basis from which we

         4       have all survived, and now our elderly now need

         5       additional care.  We would allow for an income

         6       tax credit for those who would entertain the

         7       option of keeping family members in the home.

         8                      It's something that our elderly

         9       need.  It's something that people who are on

        10       home care right now are looking for some other

        11       way to survive because if they cannot get into

        12       nursing home care, they won't get care at all;

        13       and so this additional -- this additional

        14       opportunity, which would allow for people who

        15       would take their family members into their home,

        16       would be something that we think would qualify

        17       them for this tax credit, and I offer that

        18       amendment at this time.

        19                      ACTING PRESIDENT KUHL:  The

        20       question is on the amendment.  All those in

        21       favor signify by saying aye.

        22                      SENATOR PATERSON:  Party vote in

        23       the affirmative.











                                                             
1665

         1                      ACTING PRESIDENT KUHL:  Party

         2       vote in the affirmative.  The Secretary will

         3       announce the results.

         4                      THE SECRETARY:  Ayes 22, nays

         5       34.  Party vote in the negative.

         6                      ACTING PRESIDENT KUHL:  The

         7       amendment is failed.

         8                      Senator Waldon.

         9                      SENATOR WALDON:  Thank you very

        10       much, Mr. President.

        11                      I believe you have an amendment

        12       at the desk.  I would respectfully ask to waive

        13       its reading and explain the amendment.

        14                      ACTING PRESIDENT KUHL:  There is

        15       an amendment at the desk, Senator Waldon.  We'll

        16       waive the reading of it.  Feel free to explain.

        17                      SENATOR WALDON:  Thank you very

        18       much, Mr. President.

        19                      My amendment would amend

        20       subdivision(a) of Article 1115 of the Tax Law by

        21       adding a new paragraph 30 that would add to

        22       those items exempted from the imposition of

        23       sales and use taxes, articles of clothing and











                                                             
1666

         1       shoes for human use that are sold for $100 or

         2       less.

         3                      Now, this amendment would

         4       accomplish a great deal, my colleagues.  In a

         5       very meaningful sense, it would diminish

         6       pollution because the people who purchase from

         7       other states would not have to drive so far

         8       using their cars, but that's a salutary effect.

         9                      The most immediate effect would

        10       be on those single parent heads of household and

        11       people who are at the lower end of the

        12       socio-economic ladder and who have a need to be

        13       able to purchase clothing -- good quality

        14       clothing and shoes for their children at a

        15       cheaper price, and this would surely do that

        16       because the clothes which are less than $100 in

        17       cost would be exempt from sales tax.

        18                      Now, some people might say -- and

        19       use tax.  Some people might say, "Well, you

        20       know, this is going to diminish our tax base."

        21       I think not, because what would happen here is

        22       that the people would remain in the state of New

        23       York and would do other kinds of ancillary











                                                             
1667

         1       spending to the -- going to the mall, the local

         2       mall, going to the local shop owner and many of

         3       our local shop owners, by the way, have said, "I

         4       have to close my shop and go out of business

         5       because taxes are killing me."  This would

         6       eliminate that.  This would spur our economy in

         7       terms of making sure that our local and small

         8       businesses have additional purchases and

         9       purchases made, and I think it would also do

        10       what Senator Goodman said moments ago, it would

        11       get us back on the track to having our place in

        12       the sun with our sister states in terms of our

        13       economy.

        14                      I recommend this highly to my

        15       colleagues and move the action thereupon.

        16                      Thank you, Mr. President.

        17                      ACTING PRESIDENT KUHL:  The

        18       question is on the amendment.

        19                      SENATOR MARCHI:  Excuse me.

        20                      ACTING PRESIDENT KUHL:  Excuse

        21       me, Senator Marchi.

        22                      Senator Marchi on the amendment.

        23                      SENATOR MARCHI:  Mr. President, I











                                                             
1668

         1       wanted to compliment my distinguished colleague

         2       for -- he's getting in the spirit, I think,

         3       Senator Bruno and Senator Goodman.  This is

         4       contagious.  It's a contagious spirit and one

         5       which I think should be given very careful

         6       consideration.  We're swallowing a great deal in

         7       order to be able to make the bold strides that

         8       have been described in the actions that we have

         9       taken so far.

        10                      I know, Senator, that there is

        11       support for this notion on both sides of the

        12       aisle, and if this spirit continues, I think

        13       that we may have an embarrassment of a -- a

        14       contest here in doing -- taking enlightened

        15       approaches to various aspects of taxation.

        16                      At this point, of course -- I

        17       don't advocate its passage at this point, but

        18       you have started something here, and I have a

        19       bill to that effect, and I thank you for it.

        20       Given the spirit that's prevailing, perhaps

        21       we're on the -- we're on the threshold of a new

        22       era here, but for the nonce -

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
1669

         1       Waldon.

         2                      SENATOR MARCHI:  -- I would

         3       advocate -- I would advocate not the passage at

         4       this moment.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Waldon.

         7                      SENATOR WALDON:  Mr. President, I

         8       didn't know if the learned Senator from Staten

         9       Island was going to pose a question to me, but I

        10       just wanted to respond very briefly, that the

        11       fountain of inspiration is not either in this

        12       camp or in your camp, and I can tell you that

        13       some things that you have done, and some very

        14       recently, Senator, have inspired me to do some

        15       of the things that I do on this floor.  I hope

        16       you do not mind that I'm inspired by you and by

        17       your genius, and I would hope that I could

        18       follow you for a long, long time, because many

        19       of the things that you do here, sir, are really

        20       in the best interest of all the people of the

        21       state of New York, and I appreciate your

        22       inspiration.

        23                      Thank you very much, Mr.











                                                             
1670

         1       President.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Connor.

         4                      SENATOR CONNOR:  Yes, Mr.

         5       President.  I'm supporting this amendment

         6       because it is a good idea, and I congratulate

         7       Senator Waldon for bringing it to the floor.  I

         8       know Senator Marchi had a similar bill for many

         9       years, Senator Goodman has, Senator Present has,

        10       Senator Holland has, so I'm very optimistic

        11       about the chances of this amendment passing

        12       because it is the right thing to do.  It would

        13       be good for the economy in various parts of the

        14       state.  It would be good for the taxpayers, and

        15       it's time we do something like this.

        16                      ACTING PRESIDENT KUHL:  The

        17       question is on the amendment.  All those in

        18       favor signify by saying aye.

        19                      (Response of "Aye".)

        20                      SENATOR PATERSON:  Party vote in

        21       the affirmative.

        22                      ACTING PRESIDENT KUHL:  The

        23       Secretary will call the roll.











                                                             
1671

         1                      (The Secretary called the roll.)

         2                      ACTING PRESIDENT KUHL:  Record

         3       the party line vote and announce the results.

         4                      THE SECRETARY:  Ayes 22, nays 34.

         5                      ACTING PRESIDENT KUHL:  The

         6       amendment is failed.

         7                      Senator Dollinger for the purpose

         8       of offering up an amendment.

         9                      SENATOR DOLLINGER:  Yes, Mr.

        10       President, I do.  I have an amendment at the

        11       desk.  I'd waive its reading and ask for the

        12       opportunity to explain.

        13                      ACTING PRESIDENT KUHL:  Waive the

        14       reading of the amendment.  Senator Dollinger,

        15       the floor is yours to explain.

        16                      SENATOR DOLLINGER:  Thank you,

        17       Mr. President.

        18                      I'm going to try a magic wand

        19       here today.  I agree with Senator Marchi that we

        20       may be embarking on something perhaps momentous,

        21       perhaps the appropriate seasoned sensitive term

        22       is "snowballing effect" what this is all about,

        23       because I remember last year at the budget, I











                                                             
1672

         1       came up with an amendment to the budget.  What

         2       my amendment proposed to do is increase the

         3       deduction or the exemption for a family filing

         4       jointly up to $13,500.  I proposed the

         5       amendment.  It went down on a party line vote,

         6       and lo and behold, the guy who voted against it

         7       who sat right in that chair over there last year

         8       who voted against it, didn't want it in the last

         9       budget, has put it in this budget.  So maybe the

        10       amendment that I'm talking about now will show

        11       up, maybe not in this budget, maybe not in this

        12       final tax package, but who knows, inspiration

        13       may strike the 2nd floor, and he'll see the

        14       wisdom of doing what I'm about to propose to do

        15       because, quite frankly, it's an idea that I

        16       stole from him again.

        17                      What I'd like to do is my

        18       amendment deals with circuit breaker property

        19       tax relief for people who make less than

        20       $100,000.  Let me tell you how it works.  It

        21       amends Subdivision (e) of Section 606 of the New

        22       York State Tax Law.  What it does is it creates

        23       a circuit breaker for property taxes.  The











                                                             
1673

         1       amendment raises the eligibility -- we now have

         2       it for senior citizens.  It raises the

         3       eligibility up to $100,000 of income.  Currently

         4       it's $18,000.  You don't get the circuit breaker

         5       now.  You don't get the benefit of reduction in

         6       your tax -- excuse me -- a credit for the

         7       property taxes that you pay if you have in

         8       excess of $18,000.  We would raise the ceiling

         9       from 18,000 up to $100,000.  We would also raise

        10       the property values that would be eligible for

        11       this circuit breaker legislation from $85,000,

        12       which is the current amount, up to $250,000.  We

        13       would raise the rent threshold from -- up to

        14       $1,000 a month from the $450 a month that

        15       currently exists.

        16                      I'll talk in a second about what

        17       the effect of the increase is, but recognize

        18       that this is not new.  In fact, this is borrowed

        19       heavily from, oh, how about Senator LaValle's

        20       bill, 5431, submitted last year.  Senator Levy

        21       signed on to the concept with Senate Bill 910

        22       which was again submitted last year.  Senator

        23       Skelos signed on board with the same exact idea,











                                                             
1674

         1       Senate Bill 2093, which was again submitted in

         2        '94.  Senator Johnson, my colleague from the

         3       Island, he signed on board with almost the same

         4       exact bill, Senate Bill 2327 in 1994.  It was a

         5       good idea from Senator Johnson.  It's a good

         6       idea from Senator Skelos; a good idea from

         7       Senator Levy; a good idea from Senator LaValle.

         8       It was a good idea when Senator Volker put it in

         9       with Senate 2843 in 1994 and, of course, it was

        10       a very good idea when a Senator from Peekskill

        11       put it in as Senate Bill 6703 in 1994 just as he

        12       was about to embark on a re-election campaign -

        13       or, excuse me, an election campaign to become

        14       the Governor of this state.

        15                      This amendment, what it would do

        16       is it would simply take the benefit of a tax

        17       deduction, tax reduction and it would take it to

        18       the people who need it most, the people who have

        19       small incomes and high property tax.  I think

        20       those are the people in this state who we

        21       recognize are the most depressed by the

        22       antiquated system of taxation in this state that

        23       relies so heavily on property taxes.  This tax











                                                             
1675

         1       cut would go to people who have significantly

         2       small incomes and significantly large property

         3       tax exemptions and, in addition, it would work

         4       so that the neediest get the most benefit out of

         5       it, and those who progressively need less

         6       benefit would get progressively less from the

         7       effect of the tax cut.

         8                      Let me tell you that the effect

         9       for senior citizen who is -- I'll start right at

        10       the bottom -- has less than $1,000 worth of

        11       income, the tax benefit could be as much as

        12       $1100.  For those who have $17,000 -- between

        13       17- and $100,000, the effect of this tax cut

        14       which we have a chance to give today is $516.

        15       That's not bad.  That's for senior citizens.

        16       Not bad.  $516 for each of your constituents.

        17                      For those of you who are not

        18       senior citizens who would also qualify under it,

        19       the tax benefit would be as much as $246.  In a

        20       property tax credit available to someone who

        21       makes more than $17,000, less than $100,000, has

        22       a property valued at less than $250,000, all of

        23       those things would be benefits that would be











                                                             
1676

         1       given, frankly, to the middle class in this

         2       state.  I think we've all acknowledged that they

         3       have paid perhaps more than their share of taxes

         4       at all levels.  This bill specifically addresses

         5       the relationship between onerous property taxes

         6       which are really the taxes that are driving

         7       people out of this state.  Those are the taxes

         8       that you hear business complain about.  Those

         9       are the taxes that you hear individuals complain

        10       about.  Why?  Because every January they have to

        11       go to their town clerk and pay them a big check,

        12       and it gets bigger and bigger and bigger and,

        13       frankly, when the Governor is done with this

        14       budget, it's going to get bigger still as we

        15       pass those costs down to the local communities.

        16                      So we've got a chance if we adopt

        17       circuit breaker legislation to reduce property

        18       taxes, to give all the benefits of the property

        19       tax to the middle class.  We're not going to

        20       give them benefits -- we decided on a reasonable

        21       limit, $100,000, I think a reasonable limit for

        22       the top of the middle class.  Beyond that, I'm

        23       not so sure they need it as desperately as those











                                                             
1677

         1       people who are paying high property taxes and

         2       have low incomes.

         3                      So my hope is that the collective

         4       wisdom of this chamber, the collective wisdom of

         5       Senators LaValle, Levy, Skelos, Johnson, Volker

         6       and Pataki, will be combined with our current

         7       wisdom which is to give a tax cut to the people

         8       who need it most in this state that will take

         9       the concept of circuit breaker legislation,

        10       implement it in our law and give people who are

        11       paying property taxes a real break, a real

        12       property tax credit when they file their income

        13       tax returns.  This is where tax benefit is most

        14       needed.  This is a group that will get the

        15       biggest benefit.  I urge your support of this

        16       amendment.

        17                      ACTING PRESIDENT KUHL:  The

        18       question is on the amendment.  All those in

        19       favor signify by saying aye.

        20                      SENATOR PATERSON:  Party vote in

        21       the affirmative, Mr. President.

        22                      SENATOR BRUNO:  Party vote.

        23                      ACTING PRESIDENT KUHL:  The











                                                             
1678

         1       Secretary will call the roll.

         2                      (The Secretary called the roll.)

         3                      ACTING PRESIDENT KUHL:  Record

         4       the party line vote and announce the results.

         5                      THE SECRETARY:  Ayes 22, nays 34.

         6                      ACTING PRESIDENT KUHL:  The

         7       amendment is failed.

         8                      Senator Galiber for the purposes

         9       of offering an amendment.

        10                      SENATOR GALIBER:  Thank you, Mr.

        11       President.

        12                      It's my understanding that you

        13       have a copy of the amendment at the desk.

        14                      ACTING PRESIDENT KUHL:  There is

        15       an amendment at the desk, Senator Galiber.

        16                      SENATOR GALIBER:  I would ask

        17       that you waive the reading and let me -- allow

        18       me the opportunity to explain the amendment in

        19       brief, I hope.

        20                      ACTING PRESIDENT KUHL:  The

        21       amendment is offered up.  The reading is

        22       waived.  Senator Galiber to explain the

        23       amendment.











                                                             
1679

         1                      SENATOR GALIBER:  Thank you, Mr.

         2       President.

         3                      I've spent a great deal of time

         4       here this evening as most have, listening to

         5       history, and some things that have come forth

         6       aren't exactly correct, but our reflection and

         7       recollection of history is an individual thing.

         8                      Perhaps I can go back to 1987

         9       when we talk about tax cuts.  In 1987, the then

        10       Governor of this state, past administration, had

        11       almost on hands and knees begged us not to take

        12       that tax cut.  As usual, the majority of us did

        13       not heed his warning, and as a result over a

        14       period of years since 1987 the state of New York

        15       has lost some 400,000 jobs, that we went through

        16       a depression almost, a recession certainly.  We

        17       didn't learn from that, and the Governor for a

        18       number of years, not without fault in certain

        19       areas, has held back some $800,000 precluding us

        20       from taking that last step that we make mention

        21       of.

        22                      This step this year is proposed

        23       by two persons, one by the Majority here, the











                                                             
1680

         1       Governor that is, and the Majority who have the

         2       votes, and a bill which has already been passed

         3       in the Assembly.  My amendment covers that bill

         4       which is already passed in this A.3471.  The

         5       Speaker's bill is implemented in two steps as

         6       opposed to four steps.  Two steps means less

         7       pain to an awful lot of the people.  His bill,

         8       rather than the four so that the future needs of

         9       his concerns are completely closed out.  The

        10       Speaker's plan distributes the benefits of the

        11       tax cuts more to the middle, moderate and low

        12       income taxpayer, thus allowing more people to

        13       benefit.  Perhaps the intention of the bill that

        14       is before us was certainly not the end results.

        15                      The Governor's plan gives 1,472

        16       tax cuts to a family of four earning $500,000,

        17       106 reduction to middle income families earning

        18       440,000.  The Speaker's plan gives a family of

        19       40,000, a tax cut of 225 versus the Governor's

        20       106, more than double, Mr. President.

        21                      I listened to Senator Goodman

        22       talk about the, as I dub it the "Love Fest", if

        23       you will, with New Jersey.  Little do we know,











                                                             
1681

         1       some of us anyway, that New Jersey more recently

         2       has lost some 40,000 jobs under their tax cut

         3       plan.  Their middle class and upper class folk

         4       are at arms ready to revolt almost because of

         5       the increase in the real property tax, this

         6       regressive tax that we make so very much about.

         7                      I merely ask you, Senator

         8       Goodman, to take a look, if you will, at the

         9       unemployment rate in New Jersey that has gone

        10       up, and if you look at it very carefully, I'm

        11       not sure that we want to model our state after

        12       New Jersey, the difference, of course, being

        13       that in four years, the governor of that state

        14       made may very well be running for President or

        15       Vice-president.  Not so in our government, our

        16       Governor's case.  The Speaker's overall tax

        17       reduction plan includes sales tax relief which

        18       would benefit all consumers, as well as New York

        19       state realtors, by targeting low income

        20       taxpayers, more of whom claim the standard

        21       deduction.  The Assembly plan already passed

        22       allows New Yorkers to keep $45 million more of

        23       their tax cut than the Governor's plan.











                                                             
1682

         1                      The Speaker's plan as already

         2       passed, I had mentioned, on a number of

         3       occasions, if passed by this Senate would settle

         4       this issue immediately and pave the way, if you

         5       will, toward a timely budget.  The major

         6       difference between the Pataki and Assembly bill

         7       occur after 1995 -- after 1995.  We can then

         8       revisit those issues next session.

         9                      Keep in mind that my amendment,

        10       which is the Assembly bill, tax cut bill, if you

        11       will, indicates that $4.3 million tax -- 4.3

        12       million taxpayers would pay over -- taxes under

        13       the Assembly plan than under the Pataki plan.

        14       71 percent of those who would pay less taxes

        15       under the Assembly plan have incomes under

        16       $50,000.  98 percent have income under 100,000.

        17       The taxpayer with income under 50,000 would be

        18       better off under the Pataki plan than under the

        19       Assembly plan.

        20                      This is the amendment that I

        21       offered on a bill that has already passed.  It

        22       seems to me that it covers, one, the tax cut

        23       which we sorely need.  There's a question of











                                                             
1683

         1       whether or not it's going to produce more jobs

         2       or no, is questionable.  If you go back in

         3       history, you can recall that it did not happen

         4       with a tax cut in 1987.  It's failing in New

         5       Jersey.  I fear that it will fail in Connecticut

         6       also, and that under the circumstances, I would

         7       ask that this amendment be passed.

         8                      ACTING PRESIDENT KUHL:  The

         9       question is on the amendment.

        10                      Senator Connor.

        11                      SENATOR CONNOR:  Thank you, Mr.

        12       President.

        13                      I just want to say that there's

        14       one thing that's apparent today, and that is

        15       that we're all for tax cuts, and to that extent,

        16       what Senator Bruno has done, what the Majority

        17       has done by bringing up tax cut bills, absent

        18       spending, absent all the complications of what

        19       we're going to do with the money, has allowed us

        20       to have a debate over where we would each cut

        21       taxes.

        22                      If you look at history, once upon

        23       a time, New York was a deplorably heavily taxed











                                                             
1684

         1       state, I think a 12 percent income tax rate

         2       under the Rockefeller Republican

         3       administration.  When Governor Carey got in

         4       there, we had a series of tax cut bills and in

         5       the early Cuomo years to give back billions of

         6       dollars to taxpayers that the previous

         7       Republican administration had raised.

         8                      The days of wine and roses were

         9       over and we hit a period of difficulty in the

        10       last few years, and we saw a reluctance to deal

        11       with broad based taxes, to raise them to meet

        12       revenue needs.  What we saw is revenue hunting

        13       and capturing without any policy attached to

        14       it.  An industry would go by doing pretty well,

        15       have some money and we grab it; we call it a

        16       gross receipts tax; we call it a bank tax or a

        17       fuel tax, whatever, just to get revenue in and

        18       say "We didn't raise the broad based taxes."

        19       Why?  Because the Majority in this house which

        20       talked tax cuts under its then leadership

        21       enacted spending increases, restored spending to

        22       the budget.

        23                      Now, we're faced with a -- the











                                                             
1685

         1       Republican bill to cut taxes.  It's a policy

         2       statement.  It's not a statement about we want

         3       to cut taxes vis-a-vis the Democrats because we

         4       want to cut taxes too.  Maybe there were some

         5       traditional Democrats that, you know, were

         6       stubborn about the idea of cutting taxes, but

         7       even those Democrats aren't deaf.  Obviously,

         8       the public wants tax cuts.  Obviously, the

         9       economy of New York demands those tax cuts.

        10                      So what it's really about, this

        11       debate, is whose taxes do you want to cut?

        12       Where do you want to cut those taxes, and we

        13       seem to have a fundamental disagreement.  We

        14       Democrats think, and the Assembly Democrats seem

        15       to agree with us, that we ought to focus these

        16       tax cut benefits on the middle class taxpayer,

        17       people who make less than $100,000, and that's

        18       what this amendment would do.  So we're for tax

        19       cuts, you're for tax cuts, we're for tax cuts

        20       for the people who make less than $100,000, and

        21       your proposal would give much more of the tax

        22       cut benefit to those who make more than

        23       $100,000, and much less of it to the middle











                                                             
1686

         1       class taxpayer.  That's where our difference

         2       is.  It's not about whether or not to cut taxes.

         3         It's about -- and as I say, we're doing this

         4       in a vacuum because we don't have any idea today

         5       about spending.  This is just about what you

         6       would do, what you would do if you could cut

         7       taxes, and what we would do if you could cut

         8       taxes to the tune of billions of dollars is help

         9       the middle class taxpayers.  What you would do

        10       if you could help cut taxes is help the rich

        11       more than the middle class, and that's really

        12       what this difference of opinion is about and we

        13       haven't even touched on other tax policies.

        14                      The justification is a quarter of

        15       a percent or a half of a percent in income tax

        16       is going to rebuild businesses.  With all due

        17       respect to Senator Bruno, I'm not sure that

        18       businesses wouldn't be happy paying another

        19       quarter of a percent in income tax if they made

        20       a lot of money, and I know things like gross

        21       receipts taxes are a cost on business before

        22       they made a nickel, and I'm not an economist.

        23       Common sense tells me, if you want to know what











                                                             
1687

         1       scares business out of New York State, if you

         2       want to know what discourages businesses from

         3       locating here, it's the thought that they have a

         4       big tax bill before they made a nickel in the

         5       cash register, before they made a profit.

         6       They're being actually taxed at the cash

         7       register before they made a profit.

         8                      So this debate is not about tax

         9       policy.  When and if we ever have that, I would

        10       suggest to you that your properties, the

        11       Majority's priorities, the Governor's priorities

        12       on tax cuts are misplaced if the policy is to

        13       create jobs, help business locate in New York,

        14       stay in New York and create jobs.

        15                      I understand the politics.  Lots

        16       of people pay income tax, and you get a lot of

        17       votes -- if you're Governor Cuomo, you got a lot

        18       of votes by saying, "We won't raise it; we'll do

        19       business fees", and if you're Governor Pataki,

        20       you'll get a lot of votes if you say, "We'll

        21       lower it."  If you want to talk about tax

        22       policy, we'll do that some day.  You brought out

        23       income tax and we're saying, "We Democrats want











                                                             
1688

         1       to help the middle class taxpayer," that's where

         2       it's really, really needed, and that's why I

         3       urge the adoption of our amendment.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Dollinger, do you want to speak on the

         6       amendment?

         7                      SENATOR DOLLINGER:  Yes.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Dollinger on the amendment.

        10                      SENATOR DOLLINGER:  Mr.

        11       President, I just want to reiterate the

        12       sentiments of Senator Connor and talk about the

        13        -- the tax package that we have in this

        14       amendment and the significant difference to the

        15       middle class of this tax package versus the one

        16       that underlies it.

        17                      Under an analysis of the tax

        18       package that's contained in this amendment, the

        19       break point -- first of all, go back a second.

        20       Under the tax package that's been put forward by

        21       the Majority today, there will be no tax benefit

        22       to an average -- for a married couple with two

        23       children who have an average amount of itemized











                                                             
1689

         1       deductions; there will be no tax benefit to them

         2       until they make $47,500, no benefit, nothing,

         3       zero, absolute zero.  So if you make less than

         4       $47,500 with a family of two with average

         5       itemized deductions, the word that's being sent

         6       to you today in this chamber is, we have nothing

         7       for you, zero; it's a zero sum game.  You get

         8       nothing.  You don't begin to make it anything

         9       until you're over the $47,500 amount.  Then you

        10       get $13 in a tax benefit under the plan that's

        11       been put forward by the Majority.

        12                      Under the plan that's contained

        13       in this amendment, this amendment would take the

        14       average family with $47,500, two children with

        15       an average amount of itemized deductions and

        16       give them $160, ten times the benefit of the

        17       plan that's being discussed on the state

        18       proposition.  What does that mean to the people

        19       in this chamber?  Let's look at the demographic

        20       data around the state.  It seems to me it's

        21       pretty clear what's going to happen.  Take an

        22       average district like mine where the average

        23       income is about 54- -- $35,545, less than the











                                                             
1690

         1       statewide average in districts.

         2                      What does that mean?  That means

         3       that most everybody in my district is going to

         4       get almost nothing out of this plan.  In fact,

         5       approximately 24 percent of the people in my

         6       district have incomes in excess of $50,000.

         7       Therefore -- therefore, the effect of this tax

         8       plan is that 76 percent of the people in my

         9       district will, in all likelihood, get nothing,

        10       zero from this tax plan.  In the Silver plan,

        11       they would get $160 if they were in the average,

        12       even at the $35 number, the number is about $60

        13       in benefit from the Assembly plan.

        14                      So if I were looking at this from

        15       the straight point of view of how can I do the

        16       most -- for the most people in my district, I

        17       would vote in favor of this amendment and vote

        18       against the general proposition, but look at

        19       some of the other districts around.  I would go

        20       to my colleagues from Western New York, Senator

        21       Libous, Senator Kuhl, Senator Nozzolio, again,

        22       districts that don't have a lot of wealth.  In

        23       those districts -- respectively in Senator











                                                             
1691

         1       Libous' district, only 22 percent of the people

         2       make more than $50,000.  Senator Kuhl's

         3       district, only 18 percent of the people make

         4       more than $50,000, Senator Nozzolio's, 24

         5       percent, rural poverty, pockets of rural

         6       poverty.

         7                      What does the tax plan that comes

         8       from the Assembly have?  It has something for

         9       them.  It has something for them.  The tax plan

        10       that's been proposed by the Majority has nothing

        11       for most of them.  The same thing is true, we

        12       could go through the demographic data, look at

        13       the concentration of wealth, who does very, very

        14       well and who should vote against this amendment

        15       and clearly vote in favor of the Majority plan?

        16       There's no question about it, the nine districts

        17       that live on Long Island that have all the

        18       income, the substantial incomes in this state.

        19       There's no question a it's a great thing for a

        20       whole bunch of people on Long Island.  I'm not

        21       so sure it's a good thing for people upstate.

        22                      I think if you look at the two

        23       plans, you'll see that the plan that's proposed











                                                             
1692

         1       in this amendment drives benefits to the middle

         2       class, to those people who, when they have to

         3       pay their property taxes, it's an ordeal; they

         4       have to save money all year to be able to pay

         5       them, who have to look at every nickel, every

         6       dollar, look at every receipt, look at every

         7       bill.  Let's give them a break.  Let's not give

         8       this to the wealthy people.  Let's give it to

         9       the middle class where it belongs.  This plan

        10       will clearly do that.  It deserves your

        11       support.

        12                      ACTING PRESIDENT KUHL:  The

        13       question is on the amendment.

        14                      SENATOR PATERSON:  Party vote in

        15       the affirmative.

        16                      ACTING PRESIDENT KUHL:  The clerk

        17       will call the roll.

        18                      (The Secretary called the roll.)

        19                      SENATOR BRUNO:  Party vote in the

        20       negative.

        21                      ACTING PRESIDENT KUHL:  Record

        22       the party votes.  Announce the results.

        23                      THE SECRETARY:  Ayes 22, nays 34.











                                                             
1693

         1                      ACTING PRESIDENT KUHL:  The

         2       amendment is failed.

         3                      On the bill, Senator Espada.

         4                      SENATOR ESPADA:  Thank you, Mr.

         5       President.

         6                      With all the talk about corporate

         7       America and CEOs, one would think you can manage

         8       real people from a spread sheet, with a 1, 2, 3

         9       Lotus program where the only thing that counts

        10       is the bottom line.  This is not corporate

        11       America.  This is not some corporate rater

        12       that's coming into a business and throwing

        13       people out because they have to rescue profits.

        14       We're talking about real people here.  Senators

        15       get up and talk about long-term plans.  They

        16       like this part, this phase of it, but where have

        17       they been for the last week when these children,

        18       kids, 18-, 19-, 20-year-olds are coming up here

        19       saying "You're doing away with our higher

        20       education opportunities, scholarship grants,

        21       you're doing away with TAP assistance."  Those

        22       are not real people?  These kids are coming up

        23       here saying that you're mortgaging our future











                                                             
1694

         1       for something that makes sense -- that does not

         2       make any sense to them, and so that is a long

         3       term plan.  They realize it, Senator Goodman.

         4       They get the message.  They understand what the

         5       corporate mentality will yield here, but we're

         6       not talking about CEOs out there and corporate

         7       executives.

         8                      We're talking about people that

         9       have grandmothers that need personal

        10       assistance.  We're talking about not just Wall

        11       Street or Standard and Poor's.  We're talking

        12       about Bed-Stuy, East New York, the South Bronx,

        13       Jamaica, and all the districts that Senator

        14       Dollinger just mentioned, if they could vote

        15       here today, if they could be heard instead of

        16       corporate America, we'd have them supporting the

        17       Dollinger amendment, the Waldon amendment, the

        18       Galiber amendment, the Paterson amendment.

        19       These are real peoples' bills, but they don't

        20       get the chance to be heard here today.  What is

        21       being hear -- heard today is more of the 12

        22       years of Reaganomics.  If one, you know, would

        23       really look at what's happened here, this is not











                                                             
1695

         1       a pendulum that has swung over to right or to

         2       left.  This is a squeaker that we had in

         3       November, 150,000 votes.  I know how to count.

         4       I'm from the South Bronx, but as good an

         5       accountant as any CEO that you could put forth,

         6       and I could count so good that I could tell you

         7       that 150,000 votes edge would not hold up with

         8       the kind of social upheaval and urban

         9       destruction that these kinds of tax cuts and

        10       these kinds of budgets that are being

        11       promulgated here will have on our communities.

        12                      You are devastating us, but we

        13       are rebounding -- we are rebounding through

        14       organization.  These kids are coming up, all of

        15       these people are coming up here to tell us that

        16       we're not really doing what the state mandated

        17       us to do.  It is not tax cuts that put grandmas

        18       out of their homes into the streets.  It is not

        19       to pull out the welfare queen out of the closet,

        20       to talk about AFDC parents and single mothers as

        21       though they were street people.  These are real

        22       people; real people that have enrolled to the

        23       tune of thousands in community colleges in my











                                                             
1696

         1       districts.  These are AFDC single parents that

         2       want to enjoy the American dream.

         3                      These tax cuts, these fiscal

         4       policies that we're adopting here today, these

         5       fiscal gimmicks of spending caps, this is what's

         6       doing us in.  It is not some liberal spending

         7       policies that we have all indulged in.  Have

         8       there been mistakes?  Yes.  Are we repeating

         9       mistakes here today?  Absolutely.  12 years

        10       worth of Reaganomics, being repeated replicated

        11       on a state level.  This is bad fiscal policy.

        12       If real people could take a look at this, they

        13       would probably put us out of business.

        14                      Thank you.

        15                      ACTING PRESIDENT KUHL:  The Chair

        16       recognizes Senator Nozzolio on the bill.

        17                      SENATOR NOZZOLIO:  Thank you, Mr.

        18       President.

        19                      Mr. President, my colleagues,

        20       today is a day that I am very proud to be a

        21       member of this chamber, because today is the day

        22       that we begin a historic victory for the long

        23       over-burdened taxpayers of this state.  This is











                                                             
1697

         1       the tax cut plan that the people of New York

         2       demanded last November.  The plan is going to

         3       put money back into their pockets.  In -- the

         4       plan, in our opinion, will lead to the economic

         5       recovery and resurgence of New York State.

         6                      After 12 years of "Cuomonomics",

         7       it's time for this type of action, action that

         8       will put New York in a competitive situation,

         9       that places us in an environment that will help

        10       New York rebound from this recession just like

        11       the rest of the nation is doing.

        12                      We join Governor Pataki in trying

        13       to restore fiscal responsibility, and have laid

        14       the groundwork for an era which, I believe, will

        15       be characterized by government working for the

        16       people, not people working for the government.

        17       People demand tax cuts.  This tax cut plan is a

        18       plan that the Business Council estimates will

        19       bring 360,000 new jobs to New York.  Lord knows,

        20       we need those jobs.  We need them in every

        21       corner of the state.  It's time we started

        22       voting the way the citizens of this state want

        23       us to vote.  I believe in tax cuts.  The











                                                             
1698

         1       citizens do, and economic recovery will be the

         2       result.

         3                      Mr. President, I urge the

         4       adoption of this measure.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Stafford to close debate on the bill.

         7                      Senator Dollinger, did you wish

         8       to speak before Senator Stafford?

         9                      SENATOR DOLLINGER:  Yes, I didn't

        10       know that the bill was -- yes, Mr. President.  I

        11       just wanted to address the bill, if I could

        12       briefly.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Dollinger on the bill.

        15                      SENATOR DOLLINGER:  I will be

        16       extremely brief.  Mr. President, my views on

        17       amendments are well-known.  I guess my views on

        18       this whole issue of spending caps and the rest

        19       are known, but frankly, I feel like I'm in an

        20       extremely -- I'm the Alice in Wonderland in the

        21       state Senate, because I get a chance to do

        22       something today that I seldom get a chance to

        23       do, and that's vote for a tax cut without











                                                             
1699

         1       cutting spending.  I couldn't ask for a better

         2       position to be put in.  I'm going to get a

         3       chance to tell all the voters back at home that

         4       I support tax cuts; I support middle tax cuts,

         5       but I don't have to make any tough spending

         6       calls, because this isn't a budget bill, this is

         7       just a tax cut.  This is the classic -- and with

         8       all due respect to my colleagues, this is what I

         9       think George Bush had in mind.  Remember when he

        10       made that comment, he called it -- he didn't

        11       call it Reaganomics because, of course, Reagan

        12       wasn't the President at the time.  He called it

        13       "voodoo economics", because what you were doing

        14       was sort of casting a little spell on the

        15       economy and casting a little spell on everybody

        16       to think, here's what we do.  We just cut taxes,

        17       cut taxes, we don't worry about spending, and we

        18       get the benefit of all of the other good things

        19       that government would like to give.  Government

        20       at less cost.

        21                      Well, this is a great chance, I

        22       guess, for all of to us stand here and say to

        23       our constituents, "We all support tax cuts."











                                                             
1700

         1       The bigger question is, what do we do with the

         2       budget when we have to face the impact of those

         3       tax cuts on our constituents?  That will be the

         4       real test, but I want to thank the Majority for

         5       giving me --  I'm going to vote in favor of

         6       these tax cuts.  I'm going to vote in favor of

         7       middle class tax cuts.  I welcome the

         8       opportunity.  I think it's all, frankly, among a

         9       little bit like one of those Eugene Ionesco

        10       plays.  It's a little theatre of the absurd.  It

        11       has some political advantage, but I'm going to

        12       vote in favor of it.

        13                      I thank you for the opportunity

        14       to do that.  When we get serious perhaps in

        15       April or May or June and vote on the budget,

        16       then we'll look at the impact of the tax cut on

        17       spending and how we balance our budget and

        18       really do the job that people sent us here to

        19       do.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Stafford to close debate on the bill.

        22                      SENATOR STAFFORD:  Thank you, Mr.

        23       President.











                                                             
1701

         1                      I'll be brief.  I think it's been

         2       a good debate.  The bill has been explained

         3       well.  I'll try to make sort of a broad stroke

         4       with a conceptual brush here.

         5                      Actually, as Senator Marchi said,

         6       some of the amendments are good amendments, but

         7       everything in life is timing, and it appears

         8       that this would not be the time due to the fact

         9       the bill is finely honed, and when you set -

        10       craft a bill like this, it obviously has to

        11       balance.

        12                      I would say, Mr. President -- and

        13       I'm going to be overly simplistic, but I said

        14       this last year.  You know, this is interesting.

        15       I've seen a lot of budgets, some good, some

        16       better than others, and really what it boils

        17       down to, we all really want the same thing.  We

        18       want the same services.  We want education.  We

        19       want to address crime, the criminal justice

        20       system.  We have capital requirements.  I could

        21       go on and on.  I don't think anybody wants to

        22       spend any money that they feel is not sensible.

        23                      Now, if we keep spending and keep











                                                             
1702

         1       spending, the problem is that the economic

         2       engine is going to run out and then we'll have

         3       nothing.  We'll have absolutely nothing, for the

         4       simple reason there won't be any funds.  There

         5       will not be any funds, and again, no one is

         6       trying to hurt anybody.  No one is trying to be

         7       unrealistic.  No one is trying to see anyone

         8       suffer, but we have to make decisions.  We have

         9       to make decisions.

        10                      Now, one thing that I want to

        11       point out, I don't think this specifically has

        12       been pointed out today, that we still per capita

        13       are double the national average and per capita

        14       in the PI, the personal income tax -- that's

        15       hard, isn't it -- the personal income tax, and I

        16       think we have to think about that, and actually,

        17       we're the highest, except for Alaska, and that

        18       does put us in a difficult position.

        19                      All of us in our districts have

        20       talked to people, and sometimes we hear it when

        21       we don't want to hear it when we have the jobs

        22       that we have, and people are saying that, "We

        23       don't want to stay in New York because it is











                                                             
1703

         1       over -- we are over-taxed in New York."  I think

         2       sometimes it almost becomes a cause.  I don't

         3       think it's always completely accurate, but we

         4       have to make sure that we get our state in line

         5       with other states.  That's been pointed out, and

         6       if we don't -- if we don't, we're just going to

         7       continue to go down.  The jobs we have been

         8       losing, we're going to lose more.  I think this

         9       is good.  I think we're moving in the right

        10       direction but, yes, it's very, very important -

        11       of course, this is the previous bill, if we're

        12       going to reduce taxes, we have to reduce

        13       spending -- we have to reduce spending, and

        14       we're going to have to continue.  We're going to

        15       have to continue -- continually emphasize that

        16       point to ourselves, and I am including -

        17       including myself, right here.

        18                      Now, overall, I think we're going

        19       to end up revising our priorities, but as far as

        20       increased spending, we're simply not going to be

        21       able to do it.  I would suggest that what we're

        22       doing today -- and I think we're going to have

        23       to continue to do it -- if we have a











                                                             
1704

         1       requirement, we're finding where we can readjust

         2       the budget so we can meet that requirement, not

         3       just saying "What we'll do is increase

         4       spending."  That has been done, and it can't be

         5       done any longer.

         6                      I think this tax cut is good, as

         7       has been pointed out very, very well.  The

         8       Governor is keeping his commitment.  He said he

         9       was going to have the tax cut.  Here it is.

        10       Now, I say to all of us, that our job now is

        11       just beginning.  Our job is just beginning.  I

        12       think it was Churchill after the battle of El

        13       Alamein, he said, "This isn't the beginning.  In

        14       fact, it's not the end of the beginning, but

        15       it's the beginning of the end."  So maybe it's

        16       the beginning of the end of doing business as we

        17       have done it and getting on with having a

        18       balanced budget, reduce our revenues so we can

        19       be in line with other states, support our

        20       businesses, and I would just -- one more time

        21       I'll say this because it was pointed out today a

        22       number of times, it was argued -- it was argued

        23       that we cut taxes before, but we still lost











                                                             
1705

         1       jobs.  We lost jobs because we were still -- we

         2       were still double -- double the national average

         3       in personal income tax, and second from Alaska.

         4       That's one example and, of course, I could go

         5       into some of the business taxes.

         6                      Mr. President, I think it's a

         7       good bill.  I think it's been a good debate.  I

         8       think the Governor, the staffs of the Governor,

         9       the Legislature here in the Senate are to be

        10       complimented, and I would ask that we have the

        11       last section.

        12                      ACTING PRESIDENT KUHL:  The

        13       Secretary will read the last section.  Is there

        14       a request for a slow roll call?

        15                      SENATOR MONTGOMERY:  Yes.

        16                      ACTING PRESIDENT KUHL:  Five

        17       members standing to request that?  There are.

        18       The Secretary will read the roll slowly.

        19                      THE SECRETARY:  Section 21.  This

        20       act shall take effect immediately.

        21                      Senator Abate.

        22                      SENATOR ABATE:  I would like to

        23       explain my vote.











                                                             
1706

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Abate to explain her vote.

         3                      SENATOR ABATE:  Yes.  The record

         4       is clear that I have supported the amendments

         5       and I'm in support of an alternative tax

         6       reduction package.  I, however, cannot support

         7       this package.  In the context of a budget -- and

         8       you look at the impact on these tax reductions

         9       over four years -- this tax reduction package

        10       will produce a $5.5 billion deficit, and I

        11       believe that the way the reductions are

        12       distributed are not sound.  Five percent of New

        13       Yorkers will receive 60 percent of the tax

        14       benefits, and I would prefer that more the

        15       benefits be given to middle income, moderate and

        16       low income taxpayers.  For these reasons, I

        17       cannot support this package.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Abate in the negative.  The Secretary will

        20       continue to call the roll.

        21                      THE SECRETARY:  Senator Babbush,

        22       excused.

        23                      Senator Bruno.











                                                             
1707

         1                      (Affirmative indication.)

         2                      THE SECRETARY:  Aye.

         3                      Senator Connor.

         4                      SENATOR CONNOR:  Mr. President.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Connor to explain his vote.

         7                      SENATOR CONNOR:  To explain my

         8       vote.  While I -- as I said before, I'm in favor

         9       of tax cuts, I really can't in conscience

        10       support this particular bill because the

        11       amendment to provide the benefits to the middle

        12       class didn't pass.  I don't think at this time

        13       as the public policy in New York State we ought

        14       to be passing a tax cut that favors the rich

        15       taxpayer.  There are just too many middle class

        16       taxpayers who desperately need the relief more

        17       than people who make 2- or $300,000 a year.  So

        18       I vote no.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Connor in the negative.  The Secretary will

        21       continue to call the roll.

        22                      THE SECRETARY:  Senator Cook.

        23                      SENATOR COOK:  Yes.











                                                             
1708

         1                      THE SECRETARY:  Senator

         2       DeFrancisco.

         3                      SENATOR DeFRANCISCO:  Yes.

         4                      THE SECRETARY:  Senator DiCarlo.

         5                      SENATOR DiCARLO:  Yes.

         6                      THE SECRETARY:  Senator

         7       Dollinger.

         8                      SENATOR DOLLINGER:  Yes.

         9                      THE SECRETARY:  Senator Espada.

        10                      SENATOR ESPADA:  No.

        11                      THE SECRETARY:  Senator Farley.

        12                      SENATOR FARLEY:  Aye.

        13                      THE SECRETARY:  Senator Galiber.

        14                      SENATOR GALIBER:  No.

        15                      THE SECRETARY:  Senator Gold.

        16                      (There was no response.)

        17                      Senator Gonzalez.

        18                      (There was no response.)

        19                      Senator Goodman.

        20                      SENATOR GOODMAN:  Yes.

        21                      THE SECRETARY:  Senator Hannon.

        22                      SENATOR HANNON:  Yes.

        23                      THE SECRETARY:  Senator Hoblock.











                                                             
1709

         1                      SENATOR HOBLOCK:  Yes.

         2                      THE SECRETARY:  Senator Hoffmann.

         3                      SENATOR HOFFMANN:  To explain my

         4       vote.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Hoffmann to explain her vote.

         7                      SENATOR HOFFMANN:  This bill

         8       actually marks a departure from the way we've

         9       done our budgeting in the past.  This, I think,

        10       is the first time we've actually passed in this

        11       house, or I assume we're about to pass, a piece

        12       of budget legislation as early as February 28th,

        13       well before the April 1st deadline.

        14                      While there is much discussion

        15       warranted about the merits of the bill and it

        16       may, in fact, not do as much for middle class

        17       taxpayers as many of us would like, I think that

        18       it's important to note the historic significance

        19       of passing at least one piece of budgetary

        20       legislation well before our deadline, and

        21       passing a tax cut plan or part of a tax cut plan

        22       as we go into the final stages of budget

        23       negotiations certainly indicates to the public











                                                             
1710

         1       that we are not going to have an enormous

         2       surplus of funds to spend on all other programs

         3       out there, that this is, in fact, a time of belt

         4       tightening and we are serious about dealing with

         5       the financial woes of the state.  So I will vote

         6       aye.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Hoffmann in the affirmative.  The Secretary will

         9       continue to call the roll.

        10                      THE SECRETARY:  Senator Holland.

        11                      SENATOR HOLLAND:  Yes.

        12                      THE SECRETARY:  Senator Johnson.

        13                      SENATOR JOHNSON:  Aye.

        14                      THE SECRETARY:  Senator Jones.

        15                      SENATOR JONES:  Yes.

        16                      THE SECRETARY:  Senator Kruger.

        17                      SENATOR KRUGER:  Yes.

        18                      THE SECRETARY:  Senator Kuhl.

        19                      SENATOR KUHL:  Aye.

        20                      THE SECRETARY:  Senator Lack.

        21                      SENATOR LACK:  Aye.

        22                      THE SECRETARY:  Senator Larkin.

        23       Senator Larkin.











                                                             
1711

         1                      SENATOR LARKIN:  Yes.

         2                      THE SECRETARY:  Senator LaValle.

         3                      SENATOR LAVALLE:  Aye.

         4                      THE SECRETARY:  Senator Leibell.

         5                      SENATOR LEIBELL:  Yep.

         6                      THE SECRETARY:  Senator Leichter.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Leichter to explain his vote.

         9                      SENATOR LEICHTER:  Mr. President,

        10       I heard our distinguished Majority Leader say -

        11       as he introduced this bill, he said, "Now that

        12       we passed the cap, we can give everybody a tax

        13       decrease."  I'm not aware that the voters of the

        14       state of New York have approved a cap.  We've

        15       taken the very first most tentative step towards

        16       cap and I suspect we'll never see that the

        17       Assembly is going to approve the resolution that

        18       we passed earlier today, but even if it did, it

        19       wouldn't be before 1998 -- it would not be until

        20       1998 that we'd be in a position to say that, as

        21       a consequence of the cap there might be money to

        22       spend or money to return to the taxpayers of the

        23       tax decrease.











                                                             
1712

         1                      The point is, this is an

         2       irresponsible act.  We don't have the money to

         3       give this sort of a tax decrease.  It kicks in

         4       next year with a very, very large amount of

         5       money.  There's no way, as we look at it now,

         6       that we can see how we're going to be able to

         7       provide this.  We're doing the same thing we did

         8       in 1986 or '87 with that tax cut which has

         9       caused us so much grief.  It's also

        10       irresponsible to do a tax cut that kicks in for

        11       any amount this year when we don't know what the

        12       budget is, we don't know what the expenditures

        13       are.  This is just another example of

        14       legislation by rush, legislation by press

        15       release.  It's not a substantive meaningful act,

        16       and I think you're just fooling the taxpayer

        17       saying, "Look what we're doing for you."  You're

        18       doing nothing for them and you're hurting the

        19       state of New York.  I vote in the negative, Mr.

        20       President.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Leichter in the negative.  The Secretary will

        23       continue to call the roll.











                                                             
1713

         1                      THE SECRETARY:  Senator Levy.

         2                      SENATOR LEVY:  Aye.

         3                      THE SECRETARY:  Senator Libous.

         4                      SENATOR LIBOUS:  Mr. President,

         5       to explain my vote.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Libous to explain his vote.

         8                      SENATOR LIBOUS:  Thank you, Mr.

         9       President.

        10                      This tax cut legislation is

        11       probably one of the most meaningful things we're

        12       going to do this year.  I just want to note that

        13       I surely respect the fact that Senator Dollinger

        14       did some research in my district, and I'm glad

        15       that he cares about the people of the Southern

        16       Tier because so do I, but I think what's more

        17       important, Senator Dollinger, is that this tax

        18       cut over the course of the next four years is

        19       going to create jobs for people in the middle

        20       class.  I think it was stated by a number of my

        21       colleagues on the floor that, when tax cuts go

        22       into effect, it does create jobs, and let me

        23       tell you something else.











                                                             
1714

         1                      I think what's even more

         2       significant is that we need to send a positive

         3       signal to the businesses of this state who are

         4       leaving on a daily basis.  As I said in other

         5       debates on this floor, I live on the border of

         6       Pennsylvania.  Pennsylvania is in my district

         7       every day offering incentives to businesses and

         8       pulling them out.  And time and time again, they

         9       say to me that "Taxes in this state are too

        10       high.  The utility rates in this state are too

        11       high.  Workers' Compensation rates in this state

        12       are too high, we're going to leave."

        13                      This tax cut is meaningful.  It

        14       sends a positive message and it will put middle

        15       class Americans and, as a matter of fact, more

        16       Americans and wealthy Americans to work.  I vote

        17       aye.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Libous in the affirmative.  The Secretary will

        20       continue to call the roll.

        21                      THE SECRETARY:  Senator Maltese.

        22                      SENATOR MALTESE:  Aye.

        23                      THE SECRETARY:  Senator Marchi.











                                                             
1715

         1                      SENATOR MARCHI:  Aye.

         2                      THE SECRETARY:  Senator

         3       Markowitz.

         4                      SENATOR MARKOWITZ:  No.

         5                      THE SECRETARY:  Senator Mendez.

         6                      (Affirmative indication.)

         7                      Senator Montgomery.

         8                      (There was no response.)

         9                      Senator Nanula.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Nanula to explain his vote.

        12                      SENATOR NANULA:  Mr. President,

        13       I'm going to be voting a very reluctant yes in

        14       regard to this bill.

        15                      Again, I think we've all

        16       discussed this many times.  I think we can all

        17       agree philosophically that New York State is a

        18       state that needs to restructure the way in which

        19       it provides service to the private sector as

        20       well as municipalities and not-for-profit

        21       agencies.  We all agree that we need to refine

        22       and reduce government involvment in the private

        23       sector.











                                                             
1716

         1                      Coming from the private sector,

         2       running businesses, being involved in building

         3       businesses in New York State, I have firsthand

         4       experience with that.  And certainly cutting

         5       taxes is a key aspect of making that happen, but

         6       this bill, in my opinion, is irresponsible in

         7       that it doesn't provide focus in terms of cuts

         8       to those who really need it.

         9                      I agree with Senator Libous that

        10       it is going, hopefully, to send a message, this

        11       legislation, if it does pass both houses, to the

        12       business community, a message that we are going

        13       to be working towards getting our house in

        14       order, but -- and along with my colleagues, I

        15       agree that we should have given more

        16       consideration to the amendments that were

        17       presented today, especially the Silver plan,

        18       which has a greater impact on the middle class.

        19       It's important we send messages.  It's important

        20       that we redesign and restructure the way in

        21       which businesses can conduct business in this

        22       state.  Tax cuts are an important part of that

        23       but, in my opinion, although I am reluctantly











                                                             
1717

         1       supporting this legislation, this bill does not

         2       accomplish that.

         3                      Thank you.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Nanula, how do you vote?

         6                      SENATOR NANULA:  Yes.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Nanula in the affirmative.  The Secretary will

         9       continue to call the roll.

        10                      THE SECRETARY:  Senator Nozzolio.

        11                      SENATOR NOZZOLIO:  Aye.

        12                      THE SECRETARY:  Senator Onorato.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Onorato to explain his vote.

        15                      SENATOR ONORATO:  Mr. President,

        16       I'm going to vote in the affirmative on this tax

        17       cut only as a sign of good faith to my

        18       constituents in my district that I promised I

        19       would do everything possible to cut taxes.

        20                      I'm certainly not satisfied with

        21       the way the distribution of the tax cut is being

        22       applied in this particular bill, but I know that

        23       it is a one-house bill and hopefully that we're











                                                             
1718

         1       all getting messages from our constituents, I

         2       hope that both houses get the messages that were

         3       brought forth today in debate and to make a more

         4       equitable distribution of this tax cut, and I

         5       hope that they listened to all of our concerns,

         6       because we all are looking to accomplish the

         7       same thing, a fairness across the board where

         8       all of us fare equally.  Those who need it the

         9       very most should get it the most.  Those who

        10       need it the least should get the least, but

        11       again, it's a step in the right direction.  I

        12       vote yes.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Onorato in the affirmative.  The Secretary will

        15       continue the roll.

        16                      THE SECRETARY:  Senator

        17       Oppenheimer.

        18                      SENATOR OPPENHEIMER:  Aye.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Oppenheimer to explain her vote.

        21                      SENATOR OPPENHEIMER:  Once again,

        22       Senator Onorato, as yesterday, has expressed my

        23       sentiments completely, and that was precisely











                                                             
1719

         1       what I was going to say.  I am going to support

         2       this because we know this is something the

         3       people have spoken about, that we feel deeply

         4       that we have to go ahead and make tax

         5       reductions.  This particular tax reduction I'm

         6       not particularly thrilled with.  I would like to

         7       see that it hits the middle class a lot more

         8       than it hits the upper class, and I think it

         9       would be a much wiser move because the money

        10       would be spent more broadly across our economy.

        11                      However, I'm going to support

        12       this.  I know it's a one-house bill.  I know

        13       there's going to be negotiations between the two

        14       houses, and I hope that we come to some middle

        15       ground.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Oppenheimer in the affirmative.  The Secretary

        18       will continue the roll.

        19                      THE SECRETARY:  Senator Padavan.

        20                      SENATOR PADAVAN:  Yes.

        21                      THE SECRETARY:  Senator Paterson.

        22                      SENATOR PATERSON:  No.

        23                      THE SECRETARY:  Senator Present.











                                                             
1720

         1                      SENATOR PRESENT:  Aye.

         2                      THE SECRETARY:  Senator Rath.

         3                      SENATOR RATH:  Aye.

         4                      THE SECRETARY:  Senator Saland.

         5                      SENATOR SALAND:  Aye.

         6                      THE SECRETARY:  Senator Santiago.

         7                      SENATOR SANTIAGO:  No.

         8                      THE SECRETARY:  Senator Sears.

         9                      SENATOR SEARS:  Aye.

        10                      THE SECRETARY:  Senator Seward.

        11                      SENATOR SEWARD:  Yes.

        12                      THE SECRETARY:  Senator Skelos.

        13                      SENATOR SKELOS:  Explain my vote,

        14       Mr. President.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Skelos to explain his vote.

        17                      SENATOR SKELOS:  Mr. President,

        18       I'm delighted to vote for this bill that the

        19       Governor has presented to us because it does

        20       afford opportunity and hope for the taxpayers

        21       and those people who are looking for us to

        22       create jobs in New York State.

        23                      Senator Espada, you mentioned











                                                             
1721

         1       earlier that Governor Pataki snuck in by 150,000

         2       votes.  Well, to me that's an incredible

         3       accomplishment when you have a state with over a

         4       million more Democrats than Republicans, and

         5       there was a message sent this year in this

         6       country.  The House of Representatives,

         7       Republican for the first time since Eisenhower

         8       was President; the U.S. Senate, Republican,

         9       first time since Eisenhower that both houses of

        10       the Legislature in Washington are Republican.

        11       Our house grew in numbers.  The Assembly grew in

        12       numbers.  An overwhelming amount of counties in

        13       this state, a Democrat state, are controlled by

        14       Republican county executives or Legislatures

        15       now.

        16                      So I congratulate the Governor

        17       for presenting this to us, our Majority Leader

        18       for bringing it to the floor because it's

        19       necessary for us to cut taxes.  We cut taxes,

        20       yes, Senator Dollinger, for those who live on

        21       Long Island because we are not wealthy people.

        22       We do not all have polo ponies, as Governor

        23       Cuomo used to say, when he would look to slash











                                                             
1722

         1       education aid to us, and let's look at the

         2       earned income tax credit which would put 400,000

         3       low income working people off the tax rolls when

         4       fully implemented, and that's going to help

         5       people in your district, that's going to help

         6       people in Senator Kuhl's district, in Senator

         7       Libous' district, in all of our districts.  All

         8       people under this bill in New York State will be

         9       assisted.

        10                      So I thank Governor Pataki for

        11       giving us this.  Most of all, I thank him for

        12       keeping his promise to the people of the state

        13       of New York who voted for him and voted for this

        14       promise.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Skelos, how do you vote?

        17                      SENATOR SKELOS:  I vote aye.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Skelos in the affirmative.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Skelos in the affirmative.

        22                      Continue the roll call.

        23                      THE SECRETARY:  Senator Smith.











                                                             
1723

         1                      SENATOR SMITH:  Mr. President, to

         2       explain my vote.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Smith to explain her vote.

         5                      SENATOR SMITH:  I do not believe

         6       that this bill is the end all and be all.  I do

         7       not believe that all of the issues that are

         8       addressed here will come to fruition, but I do

         9       believe firmly that it is time for us to start

        10       awarding a tax cut and, in good faith, I'm

        11       voting yes on this bill.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Smith in the affirmative.

        14                      Continue the roll.

        15                      THE SECRETARY:  Senator Solomon

        16       excused.

        17                      Senator Spano.

        18                      SENATOR SPANO: Aye.

        19                      THE SECRETARY:  Senator

        20       Stachowski.

        21                      (There was no response. )

        22                      Senator Stafford.

        23                      SENATOR STAFFORD:  Aye.











                                                             
1724

         1                      THE SECRETARY:  Senator Stavisky

         2       excused.

         3                      Senator Trunzo.

         4                      SENATOR TRUNZO:  Yes.

         5                      THE SECRETARY:  Senator Tully.

         6                      SENATOR TULLY:  Aye.

         7                      THE SECRETARY:  Senator Velella.

         8                      (There was no response. )

         9                      THE SECRETARY:  Senator Velella.

        10                      SENATOR VELELLA:  Yes.

        11                      THE SECRETARY:  Senator Volker.

        12                      SENATOR VOLKER:  Yes.

        13                      THE SECRETARY:  Senator Waldon.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Waldon to explain his vote.

        16                      SENATOR WALDON:  Thank you very

        17       much, Mr. President.

        18                      We've had a long day, and have

        19       espoused opposition with vigor, with conviction,

        20       with substantive arguments, some compelling,

        21       others not.  I find, though, that at the end of

        22       the day I am not sure that this is what we

        23       should be about, meaning passing this proposal.











                                                             
1725

         1       I think that we're a day late and a dollar

         2       short.

         3                      I think that something which

         4       takes care of five percent of the people of this

         5       state who will benefit to the tune of 60 percent

         6       of whatever this tax cut is all about, is a

         7       mistake.

         8                      I think that our first obligation

         9       is to the majority of the people of the state,

        10       those who are burdened and have been burdened

        11       for a long, long time with paying the way, the

        12       middle class.  I think that this is an example,

        13       again, of a runaway train.  Somebody made a

        14       promise that we'd have a bill by a date certain

        15       and so we're going to have that bill despite the

        16       fact that all of us here know this is but one

        17       house.  This is a one-house bill.  And I, too,

        18       am loyal.

        19                      Someone mentioned our constitu

        20       ents.  We should listen to our constituents.

        21       But I don't believe in looking through the glass

        22       darkly.  I would just share with you a thought

        23       that kind of ran through my mind.  Sometimes I,











                                                             
1726

         1       having been a singer, become quite musical and

         2       there's a song, Let It Be Me -- and I'm not

         3       going to sing, so don't panic, although I can

         4       sing.  There's a line in the song which says,

         5       Don't ever leave me lonely, and I'm going to

         6       paraphrase the next line:  Lie to me and tell me

         7       you love me only.

         8                      That is not the way the song is

         9       written, but I think what we're doing with our

        10       constituents is we're lying to them, for their

        11       love and adoration and their vote.  We're lying

        12       to them and telling them that we have

        13       accomplished something here today.

        14                      I'm not going to do that.  I'm

        15       not going to lie to the constituents, and if

        16       they don't love me because of this vote, that's

        17       O.K. too.  I will still love them.  So this is a

        18       tough love vote, my brothers and sisters.  This

        19       is a tough love vote, but it is, in my opinion,

        20       the right vote for the majority of the people of

        21       the state of New York.

        22                      We're not here to improve the

        23       condition of the rich, but to ensure that all of











                                                             
1727

         1       us will benefit in the largess of the state of

         2       New York.

         3                      I'm compelled, on behalf of my

         4       conscience, to vote in the no.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Waldon in the negative.

         7                      Secretary will continue to call

         8       the roll.

         9                      THE SECRETARY:  Senator Wright.

        10                      SENATOR WRIGHT:  Aye.

        11                      ACTING PRESIDENT KUHL:  Secretary

        12       will call the absentees.

        13                      THE SECRETARY:  Senator Gold.

        14                      (There was no response. )

        15                      Senator Gonzalez.

        16                      (There was no response. )

        17                      THE SECRETARY:  Is that it?

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Bruno.

        20                      SENATOR BRUNO:  Mr. President,

        21       can I explain my vote.  I don't think I was in

        22       the room when my name was called.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
1728

         1       Bruno to explain his vote.

         2                      SENATOR BRUNO:  Thank you.  Thank

         3       you.

         4                      SENATOR ONORATO: No objection.

         5                      SENATOR BRUNO:  No objection by

         6       Senator Onorato.  Thank you.

         7                      SENATOR BRUNO:  Listen, I just

         8       wanted to say that we in this chamber deliberate

         9       over very, very serious issues, and I appreciate

        10       the spirit and the enthusiasm in which we debate

        11       these issues, and I really just want to say, Mr.

        12       President, that I think that the fact that,

        13       after a great deliberation, that we have the

        14       support of a number of our colleagues on that

        15       side of the aisle for this piece of legislation

        16       that will really truly change the direction of

        17       the economy of this state, I think speaks well

        18       for that body, and I'm hopeful that, as we

        19       progress forward, between now and April 1st,

        20       that those people that are seeing the light and

        21       the way to go, will be a good example for many

        22       others in this chamber who will join in

        23       returning this state to a fiscally responsible











                                                             
1729

         1       path.

         2                      So I want to thank all of my

         3       colleagues for their support for Governor

         4       Pataki's tax cut package.

         5                      Thank you, Mr. President.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Bruno in the affirmative.

         8                      Announce the results.

         9                      THE SECRETARY:  Ayes 44, nays

        10       10.

        11                      ACTING PRESIDENT KUHL:  The bill

        12       is passed.

        13                      Senator Bruno, or Senator

        14       Skelos.

        15                      SENATOR BRUNO:  Would you, Mr.

        16       President -- would you call up Calendar Number

        17       136.

        18                      SENATOR SKELOS:  Could you -

        19       excuse me.  You are the Majority Leader, but

        20       could you recognize Senator Santiago, please.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Santiago.

        23                      SENATOR SANTIAGO:  Thank you.  I











                                                             
1730

         1       would like the record to show that, if I had

         2       been in the chamber when Calendar Number 135

         3       passed, I would have voted in the negative.

         4                      ACTING PRESIDENT KUHL:  Without

         5       objection, Senator Santiago will be recorded in

         6       the negative.  Sorry, Senator, that was a slow

         7       roll call, so the record will reflect that had

         8       you been in the chamber you would have been

         9       recorded in the negative.

        10                      Now, Senator Bruno.

        11                      SENATOR BRUNO:  Mr. President,

        12       can we now take up Calendar 136.

        13                      ACTING PRESIDENT KUHL:  Secretary

        14       will read.

        15                      THE SECRETARY:  Calendar Number

        16       136, by Senator Bruno, Senate Print 2545, an act

        17       to provide a retirement incentive for certain

        18       public employees.

        19                      ACTING PRESIDENT KUHL:  Secretary

        20       will read the last section.

        21                      THE SECRETARY:  Section 14.  This

        22       act shall take effect immediately.

        23                      ACTING PRESIDENT KUHL:  Call the











                                                             
1731

         1       roll.

         2                      (The Secretary called the roll. )

         3                      ACTING PRESIDENT KUHL:  Announce

         4       the results.

         5                      THE SECRETARY:  Ayes 56.

         6                      ACTING PRESIDENT KUHL:  The bill

         7       is passed.

         8                      Have some quiet in the chamber,

         9       please.  Some housekeeping.

        10                      Senator Stafford.

        11                      SENATOR STAFFORD:  Mr. President,

        12       would you please remove the sponsor's star from

        13       Calendar Number 40, 4-0?

        14                      ACTING PRESIDENT KUHL:  Sponsor's

        15       star will be removed.

        16                      SENATOR SKELOS:  Any more

        17       housekeeping?

        18                      Then, Mr. President, I move that

        19       we stand adjourned until Wednesday, March 1st,

        20       at 11:00 a.m.

        21                      ACTING PRESIDENT KUHL:  Without

        22       objection, the Senate stands adjourned until

        23       tomorrow, Wednesday, March 1st, at 11:00 a.m.,











                                                             
1732

         1       sharp.

         2                      (Whereupon at 6:32 p.m., the

         3       Senate adjourned.)

         4

         5

         6

         7