Regular Session - May 1, 1996
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7 ALBANY, NEW YORK
8 May 1, 1996
9 11:00 a.m.
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12 REGULAR SESSION
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16 SENATOR JOHN R. KUHL, JR., Acting President
17 STEPHEN F. SLOAN, Secretary
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1 P R O C E E D I N G S
2 ACTING PRESIDENT KUHL: Senate
3 will come to order. Ask the members to find
4 their places, the staff to find their seats.
5 I would ask everybody in the
6 chamber to rise and join with me in saying the
7 Pledge of Allegiance.
8 (Whereupon, the Senate and those
9 present joined in the Pledge of Allegiance to
10 the Flag.)
11 In the absence of clergy, may we
12 bow our heads in a moment of silence.
13 (Whereupon, there was a moment of
14 silence.)
15 Reading of the Journal.
16 THE SECRETARY: In Senate,
17 Tuesday, April 30. The Senate met pursuant to
18 adjournment. Prayer by the Reverend Peter G.
19 Young, Blessed Sacrament Church, Bolton
20 Landing. The Journal of Monday, April 29, was
21 read and approved. On motion, Senate adjourned.
22 ACTING PRESIDENT KUHL: Hearing
23 no objection, the Journal stands approved as
4325
1 read.
2 Presentation of petitions.
3 Messages from the Assembly.
4 Messages from the Governor.
5 Reports of standing committees.
6 Reports of select committees.
7 Communications and reports from
8 state officers.
9 Motions and resolutions.
10 Chair recognizes Senator
11 DiCarlo.
12 SENATOR DiCARLO: Mr. President.
13 On page 22, I offer the following amendments on
14 behalf of Senator Nozzolio, Calendar 257, Senate
15 Print 5951, and ask that said bill retain its
16 place on Third Reading Calendar.
17 ACTING PRESIDENT KUHL:
18 Amendments to Calendar Number 257 are received
19 and adopted. The bill will retain its place on
20 the Third Reading Calendar.
21 Senator Bruno, there's a couple
22 of substitutions at the desk if we could take
23 those.
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1 SENATOR BRUNO: Please make the
2 substitutions.
3 ACTING PRESIDENT KUHL: Secretary
4 will read.
5 THE SECRETARY: On page 5,
6 Senator Trunzo moves to discharge from the
7 Committee on Aging Assembly Bill Number 7522A
8 and substitute it for the identical First Report
9 822.
10 On page 9, Senator Volker moves
11 to discharge from the Committee on Codes
12 Assembly Bill Number 4304 and substitute it for
13 the identical Calendar Number 856.
14 On page 10, Senator Cook moves to
15 discharge from the Committee on Children and
16 Families Assembly Bill Number 8529A and
17 substitute it for the identical First Report
18 Calendar 867.
19 On page 11, Senator Johnson moves
20 to discharge from the Committee on Education
21 Assembly Bill Number 6132E and substitute it for
22 the identical First Report Calendar 875.
23 On page 14, Senator Present moves
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1 to discharge from the Committee on Finance
2 Assembly Bill Number 8844 and substitute it for
3 the identical First Report Calendar 889.
4 On page 15, Senator Tully moves
5 to discharge from the Committee on Environmental
6 Conservation Assembly Bill Number 7505C and
7 substitute it for the identical First Report
8 Calendar 895; and
9 On page 16, Senator Nozzolio
10 moves to discharge from the Committee on Crime
11 Victims, Crime and Correction Assembly Bill
12 Number 8856 and substitute it for the identical
13 First Report Calendar 907.
14 ACTING PRESIDENT KUHL: The
15 substitutions are ordered.
16 Senator Bruno.
17 SENATOR BRUNO: Mr. President. I
18 believe we have a privileged resolution at the
19 desk. I would ask that the title be read. It
20 is a resolution that I sponsored, and I would
21 move for its adoption.
22 ACTING PRESIDENT KUHL: Secretary
23 will read the privileged resolution.
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1 THE SECRETARY: By Senator Bruno,
2 Legislative Resolution, commemorating the 50th
3 Anniversary of the Uniformed Fire Fighters
4 Association to be celebrated on May 3, 1996.
5 The question is on the
6 resolution. All those in favor signify by
7 saying aye.
8 (Response of "Aye.")
9 Opposed nay.
10 (There was no response.)
11 The resolution is unanimously
12 adopted.
13 Senator Bruno.
14 SENATOR BRUNO: Mr. President. I
15 would like to ask for an immediate meeting of
16 the Rules Committee in Room 332.
17 ACTING PRESIDENT KUHL: There
18 will be an immediate meeting of the Rules
19 Committee in the Majority Conference Room, Room
20 332.
21 Immediate meeting of the Rules
22 Committee, Majority Conference Room, Room 332.
23 Senator Bruno.
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1 SENATOR BRUNO: I believe, Mr.
2 President, that there is another privileged
3 resolution at the desk, by Senator Holland. I
4 would ask that its title be read and that we
5 move for its adoption.
6 ACTING PRESIDENT KUHL: Secretary
7 will read the title of the privileged resolution
8 introduced by Senator Holland.
9 THE SECRETARY: By Senator
10 Holland, Legislative Resolution, commemorating
11 the 120th anniversary of the Samuel W. Johnson
12 Steam Fire Engine Company Number 1 to be
13 celebrated on May 4, 1996.
14 ACTING PRESIDENT KUHL: The
15 question is on the resolution.
16 All in favor, signify by saying
17 aye.
18 (Response of "Aye.")
19 Opposed, nay.
20 (There was no response.)
21 The resolution as adopted.
22 Senator Bruno.
23 SENATOR BRUNO: And, Mr.
4330
1 President, I believe there is another privileged
2 resolution by Senator John DeFrancisco. I would
3 ask that the title be read and that we move for
4 its adoption.
5 ACTING PRESIDENT KUHL: Secretary
6 will read the privileged resolution at the desk
7 by Senator DeFrancisco.
8 THE SECRETARY: By Senator
9 DeFrancisco, Legislative Resolution honoring the
10 students of grades K through 5 of the Onondaga
11 Road Elementary School participating in the
12 friends of Gilly Lake Jump-a-thon for winning
13 first place in the Elementary Division of the
14 49th Senate District's "Good News! Goods Kids!"
15 Student Recognition Program.
16 ACTING PRESIDENT KUHL: Chair
17 recognizes Senator DeFrancisco on the
18 resolution.
19 SENATOR DeFRANCISCO: Thank you,
20 Mr. President. This is the last of the three
21 winning groups in our "Good News! Good Kids!"
22 Project in Onondaga County in the 49th Senate
23 District. This is the Elementary Division.
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1 They are from the West Genesee School District,
2 and it's the Onondaga Road Elementary School,
3 and what they have done is a very unique project
4 for any age group but especially for an
5 elementary age group.
6 They have raised money, including
7 $25,840 to make improvements to a park, the Town
8 of Camillus Park, and what they have done and
9 what they are doing now by raising money from
10 various projects and getting pledges from
11 various individuals, they are going to have the
12 options of what to do with these funds, and some
13 of the things that they are contemplating are
14 doing such things as providing docks, pavilions,
15 picnic tables, and biking trails for this park.
16 Now, this is a perfect example of
17 the good things, the good news that we have from
18 students that we don't normally hear about
19 throughout the State of New York, and they are
20 here today and I want to congratulate them, and
21 I'd move for the unanimous adoption of this
22 resolution for these outstanding students, these
23 outstanding citizens in my communities.
4332
1 ACTING PRESIDENT KUHL: The
2 question is on the resolution.
3 All in favor, signify by saying
4 aye.
5 (Response of "Aye.")
6 Opposed, nay.
7 (There was no response.)
8 The resolution is adopted.
9 Senator Bruno.
10 SENATOR BRUNO: Mr. President. I
11 believe there's another privileged resolution at
12 the desk by Senator Farley. I would ask that
13 the title be read, and that we move its
14 adoption.
15 ACTING PRESIDENT KUHL: Secretary
16 will read the title of the resolution by Senator
17 Farley.
18 THE SECRETARY: By Senator
19 Farley, Legislative Resolution, honoring Frank
20 and Mary Battaglia upon the occasion of their
21 50th wedding anniversary.
22 ACTING PRESIDENT KUHL: The
23 question is on the resolution.
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1 All those in favor, signify by
2 saying aye.
3 (Response of "Aye.")
4 Opposed, nay.
5 (There was no response.)
6 The resolution is adopted.
7 SENATOR BRUNO: Recognize Senator
8 Connor, Mr. President.
9 ACTING PRESIDENT KUHL: Chair
10 recognizes Senator Connor.
11 SENATOR CONNOR: Thank you, Mr.
12 President. I have a privileged resolution at
13 the desk, and I would like to call it up and ask
14 that it be read.
15 ACTING PRESIDENT KUHL: Secretary
16 will read the privileged resolution at the desk
17 by Senator Connor in its entirety.
18 THE SECRETARY: By Senator
19 Connor, Legislative Resolution, honoring
20 Michelle Maratto recipient of the New York State
21 Bar Association's 1996 President's Pro Bono
22 Service award in the Second Judicial District on
23 May 1, 1996.
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1 Whereas, it is the sense of this
2 Legislative Body to honor those individuals of
3 the State of New York whose magnanimous
4 contributions have made a substantial impact on
5 the quality of life in their communities; and
6 Whereas, attendant to such
7 concern and fully in accord with it's long
8 standing traditions, it is the sense of this
9 Legislative Body to honor Michelle Maratto,
10 recipient of the New York State Bar
11 Association's 1996 President's Pro Bono Service
12 Award in the Second Judicial District at a
13 luncheon to be held at the New York State Bar
14 Center in Albany, New York, on May 1, 1996; and
15 Whereas, as pro bono attorney,
16 Michelle Maratto's commitment and humanitarian
17 concern for her clients is inspirational;
18 Michelle Maratto has been a
19 prominent member of the Brooklyn Bar
20 Association's Volunteer Lawyers Project whose
21 pro bono work focuses upon helping clients with
22 terminal illnesses, including AIDS, and usually
23 involves homes or hospital visits to provide
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1 assistance;
2 Since joining the Volunteer
3 Lawyer's Project, Michelle Maratto has handled
4 25 matters, donating over 150 hours to clients,
5 accepting 13 referrals in 1995 alone, as well as
6 spending countless additional hours mentoring
7 new volunteers on the home and hospital panel;
8 Whereas, the cases handled by
9 Michelle Maratto involve multiple trips to
10 distant and dangerous neighborhoods and dealing
11 with emotionally distraught clients, and the
12 services provided by Michelle Maratto are not
13 limited to the discrete matters referred to by
14 the Volunteer Lawyer's Project but include
15 tremendous involvement in dealing with all
16 clients' problems, including landlord/tenant,
17 divorce, wills and estate work;
18 Michelle Maratto's work as a
19 mentor has had a positive impact on the ability
20 of the Lawyer's Volunteer Project to recruit
21 volunteers, involving not only answering
22 substantive questions but also accompanying new
23 volunteers on first visits and recruiting
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1 volunteers herself; and
2 Whereas, this Legislative Body is
3 greatly moved to extend its highest commendation
4 to Michelle Maratto for her generosity of spirit
5 and humanitarian concern; now, therefore, be it
6 Resolved, that this Legislative
7 Body pause in its deliberations to honor
8 Michelle Maratto, recipient of the New York
9 State Bar Association's 1996 President's Pro
10 Bono Service Award in the Second Judicial
11 District on May 1, 1996; and be it further
12 Resolved, that a copy of this
13 resolution, suitably engrossed, be transmitted
14 to Michelle "Mickey" Maratto.
15 ACTING PRESIDENT KUHL: The chair
16 recognizes Senator Connor on the resolution.
17 SENATOR CONNOR: Thank you, Mr.
18 President.
19 I think the resolution sets forth
20 why Michelle Maratto deserves the State Bar
21 Association award. For myself, as her
22 representative in this body, as a lawyer and as
23 a member of the Brooklyn Bar Association myself,
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1 I am indeed proud of her efforts and proud that
2 she is being so recognized by the New York State
3 bar association. Indeed, her efforts have been
4 largely responsible for the success of the
5 Volunteer Lawyer Project because, as the
6 resolution points out, she not only undertook
7 work on behalf of many clients herself on a pro
8 bono basis but she has been active in recruiting
9 and mentoring other lawyers who were willing to
10 provide these free legal services.
11 And, indeed, this idea of
12 voluntaryism, of providing service to those who
13 are in need and can not afford to pay for it is
14 one of the oldest American traditions and
15 certainly one of the highest traditions and
16 responsibilities of the bar, and I am indeed
17 delighted, Mr. President, to introduce to this
18 body Michelle Maratto, who is here today with
19 her husband, John Stella, with her family, and
20 to extend on behalf of this body our
21 congratulations and our heartfelt thanks for her
22 efforts as a volunteer.
23 Thank you, Mr. President.
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1 ACTING PRESIDENT KUHL: Is there
2 any other Senator wishing to speak on the
3 resolution?
4 (There was no response.)
5 Hearing none, the question is on
6 the resolution.
7 All those in favor signify by
8 saying aye.
9 (Response of "Aye.")
10 Opposed, nay.
11 (There was no response.)
12 The resolution is unanimously
13 adopted.
14 Senator Bruno.
15 SENATOR BRUNO: Mr. President. I
16 believe there is one more privileged resolution
17 at the desk by Senator Goodman. I would ask
18 that the title be read and that we move for its
19 adoption.
20 ACTING PRESIDENT KUHL: Secretary
21 will read the title of the privileged
22 resolution.
23 THE SECRETARY: By Senator
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1 Goodman, legislative resolution, honoring Kitty
2 Carlisle Hart.
3 ACTING PRESIDENT KUHL: Senator
4 Goodman on the resolution.
5 SENATOR GOODMAN: Mr. President.
6 This resolution evokes a combination of feelings
7 on the part of many of us, feelings of warm
8 appreciation and at the same time sadness
9 because, after a tenure of 25 years working for
10 the New York State Council on the Arts, our
11 beloved friend Kitty Carlisle Hart has chosen to
12 retire from that post.
13 Mr. President. Kitty Carlisle
14 Hart has served this state with the greatest
15 distinction and integrity and with complete and
16 noble dedication, first as a member of the New
17 York State Council appointed by Governor Nelson
18 Rockefeller and, subsequently, as the chair of
19 that organization appointed by Governor Hugh
20 Carey.
21 She has served under six
22 Governors, and she made it clear yesterday as we
23 named "the Egg" in her honor, which took place
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1 at a ceremony at "the Egg" itself, which is now
2 known as the Kitty Carlisle Hart Performing Arts
3 Center -- she made it clear that she has always
4 called each of the governors for whom she has
5 served "Darling." And she said to Governor
6 Pataki yesterday, as he presented her with her
7 plaque commemorating this great occasion,
8 "Governor Darling, I appreciate this, and, by
9 the way, may I have permission to call you my
10 sixth Governor Darling?" -- a request which was
11 readily granted.
12 As we all know, Kitty Carlisle
13 Hart is an extraordinary personality, an
14 individual of wit, taste and grace, for which
15 she is justly famous, and a style that combines
16 warmth, intelligence, responsiveness and
17 compassion. During her tenure, the Council has
18 become the most famous and the most professional
19 of any state's arts council and has served as
20 the model for every other state council as well
21 as for the federal National Endowment for the
22 Arts on which, as you know, I have the privilege
23 to serve.
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1 I can tell you that frequently,
2 in the conduct of the affairs of the National
3 Endowment for the Arts, reference is made to
4 Kitty Carlisle Hart and to the New York State
5 Council on the Arts which is truly that of our
6 Empire State and the foremost of all of the Arts
7 Councils, having set the pattern for government
8 assistance to the arts through matching grants,
9 not simply give-aways but the presentation of
10 monies to worthy causes on the condition that
11 they will match either two for one, one for one,
12 or in some cases even three for one, local
13 effort exceeding that of the federal government.
14 During her tenure and due to her
15 efforts, the Council presided over an
16 extraordinary increase in the numbers and kinds
17 of arts organizations providing services to the
18 people of this state. It has fully implemented
19 the legislative intent of the Council insuring
20 that the role of the arts and the life of our
21 communities will continue to grow and will play
22 an ever important part in the welfare and
23 education experience of our citizens and in
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1 maintaining the paramount position of this state
2 in the nation and in the world as a cultural
3 center and of assuring the Council's activities
4 be directed toward encouraging and assisting
5 rather than in any way limiting the freedom of
6 artistic expression.
7 Mr. President. Kitty Carlisle
8 Hart has been an activist chairperson visiting
9 every part of the state, developing a personal
10 relationship with virtually every arts
11 organization in the state, creating and
12 implementing policies and procedures that assure
13 that every region of New York is well served by
14 the Council. She's never been too busy to
15 listen nor too tired to care and, as a result,
16 has won the affection, friendship and devotion
17 of all who work in the arts community.
18 Her rigorous schedule in
19 discharging her duties as chairman is legion.
20 She has taken on myriad other roles, also, as
21 friend of performing artists, advocates,
22 strategists, technicians, thinkers, doers.
23 She's a conscience and a guide far exceeding the
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1 requirements of her position.
2 She has fulfilled all these roles
3 because she truly believes in the power and
4 importance of the arts and artistic imagination;
5 and while all of this has been going on, be it
6 noted that she has also personally appeared on
7 the Broadway stage where she had originally
8 started her career many years ago, and I know it
9 will be recalled by the members of this house
10 most fondly that the name Kitty Carlisle Hart
11 derives from the fact she was married to the
12 great, one and only Moss Hart, one of Broadway's
13 leading lights until his untimely death some
14 years ago.
15 Mr. President. Kitty Carlisle
16 Hart is truly the darling of this Legislature,
17 and we are very sorry indeed to see her leave,
18 but we understand, of course, that having served
19 for a quarter of a century, she does have a
20 desire to proceed with other interests. She
21 will soon be seen again on the Broadway stage.
22 It's my hope that she will appear here often.
23 She has graciously pledged her full support to
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1 the new Chairman of the Endowment recently
2 appointed by the Governor, and I know that we'll
3 have the benefit of her wisdom over many years
4 to come.
5 We salute her. We love her, and
6 we cherish her.
7 Thank you, Mr. President.
8 SENATOR GOLD: Mr. President.
9 ACTING PRESIDENT KUHL: Senator
10 Gold on the resolution.
11 SENATOR GOLD: Thank you very
12 much.
13 Mr. President. One of my early
14 assignments in the Legislature was to be on the
15 Arts Committee, which at one point we all know
16 Senator Lombardi was very involved with, and I
17 want to, if we're saying nice things,
18 congratulate Senator Goodman, who has also shown
19 great concern in that area.
20 I would have to agree with
21 absolutely everything that Senator Goodman said
22 today. If you had a dictionary and you opened
23 the dictionary up to the word "class," you will
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1 find Kitty Carlisle's picture there. This woman
2 is class.
3 And, I will never forget the
4 first time after her appointment when she
5 appeared before the legislative financial
6 committees to talk about money for the arts, and
7 I don't think there was one member on that panel
8 that didn't expect to hear about how wonderful
9 it is to enjoy the classics and how wonderful it
10 is to hear about Broadway and music and poetry,
11 and that wasn't what she talked about. She
12 looked at this panel of legislators who were
13 concerned about money, and she talked the
14 economic interest of this state, and she talked
15 about tourism as a major business, and she
16 knocked us all right off our feet because, if
17 there was one argument that was attractive to
18 that committee, she understood it.
19 She understood that people didn't
20 have to know the merits of the arts. She talked
21 about finances, and that, I think, is to a great
22 extent one of reasons she was so successful
23 because she understood the bottom line and what
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1 her job was.
2 She is a major asset to this
3 state, and I am delighted, as Senator Goodman
4 indicated, that she is not walking away from us
5 but merely changing a little bit of her
6 responsibility.
7 She is a fabulous, great lady and
8 we were lucky to have had her in that position
9 as Chair of the Arts for as long as we did.
10 ACTING PRESIDENT KUHL: Senator
11 Farley on the resolution.
12 SENATOR FARLEY: Thank you, Mr.
13 President.
14 I rise to say thank you to Kitty
15 Carlisle Hart, who has been an absolute treasure
16 to this state, and, you know, she served in some
17 very, very difficult years. I think we all
18 remember that, back when there was a lot of
19 financial problems, as there are still today,
20 but she always spoke eloquently on behalf of the
21 arts and she always delivered for the arts.
22 Kitty Carlisle is a lovely
23 woman. Senator Gold, you used the word class,
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1 but I guess I have to emphasize that also
2 because she is such a woman of breeding and
3 culture and class that just to be around her
4 convinces anybody that we must support the
5 arts.
6 She's a lovely person. She's
7 done a great job for New York State. She's a
8 friend of this Legislature. She's a friend of
9 the entire state, and we're very, very proud of
10 her and we're grateful for what she's done.
11 She has served us for many, many
12 years, and she still is a bright and shining
13 star, and we wish you well, Kitty, and all the
14 best, and thank you very much for all that
15 you've done for New York State.
16 ACTING PRESIDENT KUHL: Senator
17 Lack on the resolution.
18 SENATOR LACK: Thank you, Mr.
19 President.
20 I, too, rise to thank Kitty
21 Carlisle Hart for everything that she has done
22 for this state, but in somewhat more of a
23 personal sense.
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1 I can recall how I first really
2 met her. I went to an arts function here in
3 Albany. It was held across the street in the
4 State Education Building.
5 ACTING PRESIDENT KUHL: Senator
6 Lack, could you pardon a interruption?
7 (There was a pause in the
8 proceedings.)
9 SENATOR LACK: Thank you, Mr.
10 President.
11 So I went across the street to
12 the State Education Building to attend a
13 function, and as I walked in, someone said, "Oh,
14 Ms. Hart would like to meet you; you have old
15 friends in common," and I found out through my
16 family we did, and she was so gracious. This
17 was about ten years ago. I immediately became
18 captivated with her. She invited me to sit at
19 her table that evening. She started to explain
20 to me, in some of the same manner in which
21 Senator Gold spoke, about the economic
22 significance of the arts in this state and what
23 the arts can do not only in New York City but
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1 throughout.
2 When she learned where I was from
3 in Long Island and lived in the Town of
4 Huntington, she spent about 15 to 20 minutes
5 extolling the virtues of the local arts council
6 in my town, even down to some of the smallest
7 performance groups that existed in the town,
8 explained to me how she had attended their
9 performances, had met the parents in the cases
10 where there were young kids, and how she was
11 taken with the type of work they were doing,
12 even knew the first names of the secretaries who
13 worked in the Arts Council's local office.
14 And as I later become interested
15 in the arts, attended performances and exhibits
16 and went to museums in my district, I was not
17 surprised after the first three times to walk in
18 to a performance or to an exhibit at a museum
19 and find not only my constituents but Kitty
20 Carlisle Hart, who had come out on behalf of the
21 state's Arts Council because there was either a
22 financial interest or an artistic interest in
23 what was going on in that exhibit or that
4350
1 performance, and she wanted to be there on
2 behalf of the state.
3 She has been a more than tire
4 less worker, and as I go around the country now
5 in my capacity as President of NCSL and people
6 talk about the type of arts involvement we have
7 in New York, there is no doubt that every last
8 dime that we spend on it and every last ounce of
9 commitment that we have put into the arts stems
10 from the involvement of Kitty Carlisle Hart.
11 So, Ms. Hart, I thank you for
12 what you have been and for what you have made
13 the rest of us who have gotten involved with you
14 in the arts program, and I will continue that
15 involvement, and I thank you for opening its
16 horizons to me.
17 ACTING PRESIDENT KUHL: Senator
18 Oppenheimer on the resolution.
19 SENATOR OPPENHEIMER: Well, "To
20 Tell The Truth," I have to tell the truth about
21 Kitty Carlisle Hart. Most of us do remember
22 back "To Tell The Truth," and some of the people
23 probably in this chamber remember her first for
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1 that. But to talk about her just in that
2 capacity would be just an infinitesimally small
3 part of her life.
4 She has been a lifetime champion
5 of the arts, and I remember one of her finest
6 hours was when there was an attack on the Arts
7 Council because of some art, not performing art
8 but art paintings that were coming under attack
9 because the art had been drawn by a homosexual,
10 and she stood up to the greatest attack I have
11 seen on the arts, and she was magnificent. She
12 was a wonderful champion.
13 Her activity has included not
14 just the large groups that we all know about but
15 the small groups, the aspiring artists, the
16 young people, educating them because it is only
17 through educating our young that we can expect
18 our arts to continue into the -- into the
19 future, and one of the grave situations I see
20 occurring when I go to Lincoln Center is that so
21 many, many people there are gray-haired and that
22 there are not enough young people involved, and
23 that is why I'm so concerned to bring art into
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1 our elementary schools and our high schools
2 because, if children are brought up with the
3 arts, they will pursue them the rest of their
4 lives.
5 I sometimes wonder if my calculus
6 has much value to me today, but the arts that I
7 was brought up with from early childhood have
8 meaning for me every day of my life.
9 The fact that we have all
10 mentioned her great charm, her great
11 graciousness, her great intellect. In singling
12 out the importance of the arts to the economy of
13 New York City -- and the state, but principally
14 New York City -- she has contributed mightily to
15 our understanding of what that impact is.
16 And I must say she has been a
17 great friend to me and to my husband, who is so
18 involved at Lincoln Center.
19 So all I can say is thank you
20 from the bottom of my heart and our collective
21 hearts here in the Senate, Kitty, and lots of
22 good luck on Broadway.
23 ACTING PRESIDENT KUHL: Senator
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1 Leichter on the resolution.
2 SENATOR LEICHTER: Mr.
3 President. I, too, want to join the resolution,
4 and I assume Senator Goodman will put every
5 member of the Senate on the resolution?
6 Senator, is this resolution open
7 to all members of the Senate?
8 SENATOR GOODMAN: Yes. Thank you
9 very much, Senator Leichter. I trust and hope
10 that you will all feel you would wish to
11 participate. It is indeed open.
12 SENATOR LEICHTER: Good. Thank
13 you, Senator Goodman.
14 I'm not going to talk about what
15 Kitty Carlisle has meant for the arts because
16 that is so well known and covered by some of the
17 previous speakers. I just want to mention just,
18 very briefly, her unfailing, courtesy,
19 cooperation, friendship. She really made you
20 feel so at ease. She had that ability to
21 communicate with you to make you feel that she
22 was really interested in you as a person, as
23 indeed she was. I'll always remember once being
4354
1 at her house and she took me around and showed
2 me these wonderful pictures of her and Moss
3 Hart. This is a person who has had such a rich
4 legacy, has been so much part of the culture of
5 this country. We were, indeed, fortunate to
6 have her serve as head of the State Council of
7 the Arts, and I hope for many, many more years
8 we will have the ability of seeing her
9 participate in the richness of the life, the
10 cultural life of the City and the State of New
11 York and, indeed, of the whole nation.
12 Thank you.
13 ACTING PRESIDENT KUHL: Senator
14 Marchi on the resolution.
15 SENATOR MARCHI: Mr. President.
16 The remarks that have been elicited by Kitty
17 Carlisle Hart are so justified and so widespread
18 and so widely felt.
19 My wife, Maria Luisa, and I -
20 she's a dear friend of our family, has been in
21 our home many times, and we revel in her
22 friendship, that warm humanity that
23 characterizes her. She has a genuine love of
4355
1 people, a sense compassion that she just rejects
2 things that are mean-spirited and narrow-minded
3 and certainly is a role model for young and old,
4 whatever age. This is a young heart at work.
5 Senator Oppenheimer has mentioned
6 the siege that she suffered on several
7 occasions, and on each and every occasion she
8 rose with great dignity, recognizing the fact
9 that mortal institutions have some frailties.
10 But the majesty of the service that she was
11 rendering and that the Council of the Arts was
12 rendering was worth defending and promoting and
13 enlarging because it adds so many dimensions to
14 our life.
15 I might say that most of my
16 conversations with her, Mr. President, have been
17 in Italian of all things and even our
18 correspondence, and her Italian is impeccable
19 better than almost anybody in the capital or the
20 State of New York with minor exceptions.
21 But this is a great human being,
22 and I believe that if you go out on the highways
23 and byways -- and not only in this country, Mr.
4356
1 President. She studied in Rome for many years
2 and studied opera. I have heard her name
3 mentioned with great admiration and esteem
4 outside the Western Hemisphere such is the
5 magnitude of her -- the esteem with which anyone
6 who has ever come in contact with holds her.
7 So we wish her well and only on
8 the condition that we exact the promise that she
9 is not going to be scarce. I mean she is going
10 to be available and with us on many, many
11 occasions from now on.
12 ACTING PRESIDENT KUHL: Senator
13 Mendez on the resolution.
14 SENATOR MENDEZ: Mr. President.
15 I also want to say thank you to Kitty Carlisle
16 Hart.
17 Many wonderful things have been
18 said about her here today -- you know, for
19 example, the kind of a lovely person that she
20 is, her social graces, and I want to just
21 mention to you her sensitivity to other people.
22 Many, many years ago -- about 12
23 or 14 years ago, I received a call from an
4357
1 organization, from a group of Puerto Rican and
2 Hispanic organizations. They were very
3 distressed because they felt that they were
4 being discriminated against in terms of funding,
5 lack of understanding, or their expression of
6 art.
7 So I called Mrs. Hart. She was
8 so gracious. She invited all these individuals
9 to her home. We had a meeting, and she worked
10 very hard and resolved the problems.
11 One thing that has not been
12 mentioned here is that this lovely human being,
13 Mrs. Hart, is not only intelligent and has this
14 tremendous amount of talent but she's also an
15 excellent problem solver.
16 So we are all going to miss her.
17 We wish her well and, once more, we all say
18 thank you.
19 ACTING PRESIDENT KUHL: The
20 question is on the resolution.
21 All those in favor signify by
22 saying aye.
23 (Response of "Aye.")
4358
1 Opposed, nay.
2 (There was no response.)
3 The resolution is adopted.
4 All members are on the
5 resolution.
6 Senator Skelos, that brings us to
7 calendar.
8 SENATOR SKELOS: Mr. President.
9 If we could take up the noncontroversial
10 calendar.
11 ACTING PRESIDENT KUHL: Secretary
12 will read the noncontroversial calendar.
13 THE SECRETARY: On page 25,
14 Calendar Number 359, by Senator Skelos, Senate
15 Print 520A, an act to amend the Education Law,
16 in relation to notification to parents.
17 ACTING PRESIDENT KUHL: The
18 Secretary will read the last section.
19 THE SECRETARY: Section 3. This
20 act shall take effect on the first day of
21 September.
22 ACTING PRESIDENT KUHL: Call the
23 roll.
4359
1 (The Secretary called the roll.)
2 THE SECRETARY: Ayes 53.
3 ACTING PRESIDENT KUHL: The bill
4 is passed.
5 THE SECRETARY: Calendar Number
6 386, by Senator Lack, Senate Print 5954A, an act
7 to amend the Tax Law, in relation to extending
8 the authorization for imposition of a hotel and
9 motel tax.
10 ACTING PRESIDENT KUHL: The
11 Secretary will read the last section.
12 THE SECRETARY: Section 2. This
13 act shall take effect immediately.
14 ACTING PRESIDENT KUHL: Call the
15 roll.
16 (The Secretary called the roll.)
17 THE SECRETARY: Ayes 53.
18 ACTING PRESIDENT KUHL: The bill
19 is passed.
20 THE SECRETARY: Calendar Number
21 508, by Senator Stafford, Senate Print 6298A, an
22 act to amend the Highway Law, in relation to
23 implementing an exchange of highways between the
4360
1 state and the county of Washington.
2 ACTING PRESIDENT KUHL: There is
3 a home rule message at the desk.
4 The Secretary will read the last
5 section.
6 THE SECRETARY: Section 3. This
7 act shall take effect immediately.
8 ACTING PRESIDENT KUHL: Call the
9 roll.
10 (The Secretary called the roll.)
11 THE SECRETARY: Ayes 53.
12 ACTING PRESIDENT KUHL: The bill
13 is passed.
14 THE SECRETARY: Calendar Number
15 547, by Member of the Assembly Sidikman,
16 Assembly Print 8911, Concurrent Resolution of
17 the Senate and Assembly, proposing an amendment
18 to Article 6 of the Constitution.
19 ACTING PRESIDENT KUHL: The
20 question is on the resolution.
21 All those in favor, signify by
22 saying aye.
23 (Response of "Aye.")
4361
1 Opposed, nay.
2 (Response of "Nay.")
3 Call the roll.
4 (The Secretary called the roll.)
5 Announce the results when
6 tabulated.
7 THE SECRETARY: Ayes 51. Nays
8 2. Senator Gold and Maziarz recorded in the
9 negative.
10 ACTING PRESIDENT KUHL: The
11 resolution is adopted.
12 THE SECRETARY: Calendar Number
13 605, by Senator Farley, Senate Print 2992A, an
14 act to amend the Banking Law, in relation to
15 permissible fees in connection with open end
16 loans.
17 ACTING PRESIDENT KUHL: The
18 Secretary will read the last section.
19 THE SECRETARY: Section 3. This
20 act shall take effect immediately.
21 ACTING PRESIDENT KUHL: Call the
22 roll.
23 (The Secretary called the roll.)
4362
1 THE SECRETARY: Ayes 53.
2 ACTING PRESIDENT KUHL: The bill
3 is passed.
4 THE SECRETARY: Calendar Number
5 618, by Senator Volker, Senate Print 3863A, an
6 act to amend the Civil Practice Law and Rules,
7 in relation to summary judgment.
8 SENATOR VOLKER: Star that bill,
9 please.
10 ACTING PRESIDENT KUHL: The bill
11 will be starred at the request of the sponsor.
12 THE SECRETARY: Calendar Number
13 627, by Senator Levy, Senate Print 6446, an act
14 to amend the Transportation Law, in relation to
15 payment of fees and other charges by credit
16 card.
17 ACTING PRESIDENT KUHL: The
18 Secretary will read the last section.
19 THE SECRETARY: Section 2. This
20 act shall take effect immediately.
21 ACTING PRESIDENT KUHL: Call the
22 roll.
23 (The Secretary called the roll.)
4363
1 THE SECRETARY: Ayes 53.
2 ACTING PRESIDENT KUHL: The bill
3 is passed.
4 THE SECRETARY: Calendar Number
5 629, by Senator Levy, Senate Print 6532, an act
6 to amend the Vehicle and Traffic Law, in
7 relation to the use of radar and laser
8 detectors.
9 ACTING PRESIDENT KUHL: The
10 Secretary will read the last section.
11 THE SECRETARY: Section 3. This
12 act shall take effect on the first day of
13 November.
14 ACTING PRESIDENT KUHL: Call the
15 roll.
16 (The Secretary called the roll.)
17 THE SECRETARY: Ayes 53.
18 ACTING PRESIDENT KUHL: The bill
19 is passed.
20 THE SECRETARY: Calendar Number
21 642, by Senator Holland, Senate Print 6241, an
22 act to amend the Social Services Law, in
23 relation to permanently excluding persons from
4364
1 eligibility.
2 ACTING PRESIDENT KUHL: The
3 Secretary will read the last section.
4 THE SECRETARY: Section 2. This
5 act shall take effect immediately.
6 ACTING PRESIDENT KUHL: Call the
7 roll.
8 (The Secretary called the roll.)
9 THE SECRETARY: Ayes 53.
10 ACTING PRESIDENT KUHL: The bill
11 is passed.
12 THE SECRETARY: Calendar Number
13 648, by Senator Sears, Senate Print 1394, an act
14 to amend the County Law, in relation to
15 additional enhanced emergency telephone system
16 surcharge.
17 ACTING PRESIDENT KUHL: The
18 Secretary will read the last section.
19 THE SECRETARY: Section 2. This
20 act shall take effect immediately.
21 ACTING PRESIDENT KUHL: Call the
22 roll.
23 (The Secretary called the roll.)
4365
1 THE SECRETARY: Ayes 53.
2 ACTING PRESIDENT KUHL: The bill
3 is passed.
4 THE SECRETARY: Calendar Number
5 649, by Senator Sears, Senate Print 2711, an act
6 to amend the County Law, in relation to
7 additional enhanced emergency telephone system
8 surcharge provisions.
9 ACTING PRESIDENT KUHL: The
10 Secretary will read the last section.
11 THE SECRETARY: Section 2. This
12 act shall take effect immediately.
13 ACTING PRESIDENT KUHL: Call the
14 roll.
15 (The Secretary called the roll.)
16 THE SECRETARY: Ayes 53.
17 ACTING PRESIDENT KUHL: The bill
18 is -- Senator Waldon, why do you rise?
19 SENATOR WALDON: Excuse me, Mr.
20 President. I was regrettably preoccupied when
21 Calendar 642 was passed. I request unanimous
22 consent to be recorded in the negative.
23 ACTING PRESIDENT KUHL: Without
4366
1 objection, hearing no objection, Senator Waldon
2 will be recorded in the negative on Calendar
3 number 642.
4 The bill is passed.
5 THE SECRETARY: Calendar Number
6 652, by Senator Volker, Senate Print 5969, an
7 act to amend the Local Finance Law, in relation
8 to the sale of bonds and notes of the city of
9 Buffalo.
10 ACTING PRESIDENT KUHL: There is
11 a home rule message at the desk.
12 The Secretary will read the last
13 section.
14 THE SECRETARY: Section 2. This
15 act shall take effect immediately.
16 ACTING PRESIDENT KUHL: Call the
17 roll.
18 (The Secretary called the roll.)
19 THE SECRETARY: Ayes 53.
20 ACTING PRESIDENT KUHL: The bill
21 is passed.
22 THE SECRETARY: Calendar Number
23 653, by Senator Nozzolio, Senate Print 6179, an
4367
1 act to amend the Town Law, in relation to
2 providing for the election of a third town
3 justice.
4 ACTING PRESIDENT KUHL: The
5 Secretary will read the last section.
6 THE SECRETARY: Section 2. This
7 act shall take effect immediately.
8 ACTING PRESIDENT KUHL: Call the
9 roll.
10 (The Secretary called the roll.)
11 THE SECRETARY: Ayes 53.
12 ACTING PRESIDENT KUHL: The bill
13 is passed.
14 THE SECRETARY: Calendar Number
15 752, by Senator Hoblock, Senate Print 6256, an
16 act to amend the Highway Law, in relation to
17 designating a portion of the state highway
18 system as the Disabled American Veterans
19 Memorial Highway.
20 ACTING PRESIDENT KUHL: The
21 Secretary will read the last section.
22 THE SECRETARY: Section 3. This
23 act shall take effect immediately.
4368
1 ACTING PRESIDENT KUHL: Call the
2 roll.
3 (The Secretary called the roll.)
4 THE SECRETARY: Ayes 53.
5 ACTING PRESIDENT KUHL: The bill
6 is passed.
7 Senator Bruno, that completes the
8 noncontroversial calendar.
9 SENATOR BRUNO: Mr. President.
10 Can we return to reports of standing
11 committees. I believe that there is a report
12 from the Rules Committee at the desk. Can we
13 have it read.
14 ACTING PRESIDENT KUHL: We will
15 return to reports of standing committees.
16 The Secretary will read the
17 report at the desk.
18 THE SECRETARY: Senator Bruno
19 from the Committee on Rules reports the
20 following bills direct to third reading:
21 7478, by Senator Bruno, an act to
22 amend the Tax Law, in relation to enacting the
23 Tax Reduction and Economic Incentive Act of
4369
1 1996.
2 Senate Print 7486, by the Senate
3 Committee on Rules, an act to amend Chapter 261
4 of the Laws of 1993, relating to the Nassau
5 County accelerated adjudication program.
6 ACTING PRESIDENT KUHL: Without
7 objection, the bills are reported directly to
8 third reading.
9 SENATOR BRUNO: May we accept the
10 report.
11 ACTING PRESIDENT KUHL: The
12 motion is to adopt the Rules Committee report.
13 All those in favor, signify by
14 saying aye.
15 (Response of "Aye.")
16 Opposed, nay.
17 (There was no response.)
18 The Rules report is adopted.
19 Senator Montgomery, why do you
20 rise?
21 SENATOR MONTGOMERY: Yes. Mr.
22 President. I would like unanimous consent to be
23 recorded in the negative on Calendar Number 359.
4370
1 ACTING PRESIDENT KUHL: Without
2 objection, hearing no objection, Senator
3 Montgomery will be recorded in the negative on
4 Calendar Number 359.
5 Senator Wright, why do you rise?
6 SENATOR WRIGHT: Mr. President.
7 I would request that we place a sponsor star on
8 my bill, Senate 3186A, Calendar Number 46.
9 ACTING PRESIDENT KUHL: Calendar
10 Number 46 will be starred at the request of the
11 sponsor.
12 Senator Bruno.
13 SENATOR BRUNO: Mr. President.
14 Can we now take up Calendar 910.
15 ACTING PRESIDENT KUHL: Secretary
16 will read.
17 THE SECRETARY: Calendar Number
18 910, by Senator Bruno, Senate Print 7478, an act
19 to amend the Tax Law, in relation to enacting
20 the Tax Reduction and Economic Incentive Act of
21 1996.
22 SENATOR STACHOWSKI: Explanation.
23 ACTING PRESIDENT KUHL: Senator
4371
1 Bruno, an explanation of the bill has been asked
2 for by the Acting Minority Leader Senator
3 Stachowski.
4 SENATOR BRUNO: Thank you, Mr.
5 President. Colleagues. Approximately a year
6 ago, we were in this chamber and we were
7 contemplating one of the biggest tax cuts ever
8 passed in New York State, biggest tax cut,
9 personal income taxes and business taxes, in the
10 United States.
11 Governor George Pataki proposed
12 the largest personal income tax cut, 3.9 billion
13 over three years. That became part of the
14 budget that we adopted in this state. At that
15 time, when we debated this tax cut package,
16 conversations on the floor were that we couldn't
17 afford to cut taxes in this state. We couldn't
18 afford to cut taxes. So we like to say, let's
19 look at the record.
20 Before the tax cut went into
21 place, over the previous 12 years during the
22 administration that was in Albany, New York was
23 50th in job creation in all of the United States
4372
1 -- 50th. Highest taxed per capita in all of
2 the United States. In one short year, we have
3 moved from 50th in job creation to 6th in job
4 creation. Over 102,000 new jobs created in New
5 York State last year, about 26,000 this past
6 February. For the first time in anyone's
7 memory, including Senator John Marchi's, Site
8 Magazine that is used by major industries in the
9 world to site plants has New York as one of the
10 ten top sites -- tenth -- in places to locate
11 your business.
12 So we are doing some things
13 right. But are we and have we done enough? The
14 answer is no. How do we know? Because, Mr.
15 President, we are in a very competitive
16 society. New York has to compete with all the
17 other states and every country in the world for
18 jobs, and jobs are the most important things
19 that any of us in government can focus on,
20 because if people are working, they are off
21 welfare, they are off unemployment, they are off
22 the streets where they commit crimes, and they
23 are being productive. So we have to focus on
4373
1 job creation.
2 We're competing with other
3 states; and what do other states do?
4 Ohio, which is number 1 in Site
5 Selection Magazine as a place to locate your
6 business -- Ohio, one of the more unlikely
7 places in the United States -- number 1. Why?
8 They incentivize business.
9 Michigan, 21 tax cuts in five
10 years. Michigan has done a turn, going from one
11 of the worst places to be in business to one of
12 the most desirable. Why? They recognize that
13 you have to do things to be competitive, and
14 they have done them.
15 Virginia. We weren't even in
16 contention when Motorola and Toshiba located a
17 plant to employ up to 5,000 people. New York
18 wasn't even at the table. Why? Virginia had an
19 incentive package of $165 million.
20 So we have got to be competitive
21 if we are going to create jobs and continue the
22 economic development policies that Governor
23 George Pataki and we in this chamber have been
4374
1 partners in through last year and into this
2 year. So we have a tax cut package that we are
3 proposing here in this chamber, and I am hopeful
4 that everyone in this chamber will see fit to be
5 supportive of this package to continue to
6 stimulate the economy of New York State, because
7 there isn't anything that we can do that is more
8 constructive or more positive to meet the
9 deficit that we have in this state, 5 billion,
10 following a 5 billion. We have got to create
11 revenue.
12 How do you create revenue in a
13 state? Unlike the federal government, we can't
14 print money. So we in the state make our money
15 from taxes, tax revenues, personal income and
16 business taxes.
17 Common sense would tell you that
18 if we encourage business growth by being
19 competitive to the rest of the world, businesses
20 will locate here. They will expand here. They
21 will pay taxes here, and they will employ people
22 that will pay taxes here in New York State.
23 So this past year, we stopped the
4375
1 exodus to every other state. We stopped it.
2 While New York lost three-quarters of a million
3 people three years ago, Texas gained a quarter
4 of a million people. But we stopped it. We
5 have made the turn.
6 This package will stimulate the
7 economy of this state, and that's why it's
8 critically important that we support it.
9 We start with -- now listen. I
10 know you want to hear this. We start by phasing
11 out the gross receipts tax on utilities. One of
12 the things that you hear from businesses is that
13 they can't grow here. They can't locate here
14 because of the high cost of energy. We have a
15 20 percent gross receipts tax. Whether the
16 utilities make money or not, the consumer pays
17 on top of an already noncompetitive utility
18 cost. We're going to phase that out over four
19 years, freezing it the first year.
20 We want to phase out the estate
21 tax. We want to make us in New York State
22 conform with the Feds and the other states and
23 repeal the gift tax that we have here in New
4376
1 York State. Why? People move to Florida and to
2 other states so that when they pass their
3 estate, the people that -- they have worked hard
4 and so the people that they love will receive
5 the benefit of their labors while they were on
6 this earth. Now, common sense tells me that we
7 have to encourage people to stay here. Why
8 would we want to encourage people to move to
9 Florida to die? I can't answer that question,
10 and I don't think anyone in this chamber can.
11 That's in this package.
12 There is one tax in this state
13 that all of us that were here have to be ashamed
14 to have participated in and that is capital
15 gains tax on properties over a million, the
16 so-called Cuomo tax. Cuomo tax. Think about
17 this and I'm asking you, Senator Skelos, and my
18 colleagues to just use common sense.
19 When that tax went in 12 or 13
20 years ago, the revenue from properties over a
21 million dollars were almost $800 million to the
22 people of this state, and those revenues paid
23 for education, for welfare, for Medicaid, for
4377
1 higher ed', for roads, for bridges. What did we
2 do with the Cuomo tax? Since it went in, the
3 revenue to the state went from 800 million, 600
4 million, 300 million to a low of 83 million.
5 It's back up to about 105 million.
6 Now, again, common sense would
7 dictate that if you have done something wrong
8 you fix it. Some people will say, Oh, that's a
9 tax break for the wealthy. Well, it isn't a tax
10 break for the wealthy because that revenue from
11 800 million to 100 million has deprived people
12 from welfare benefits, from higher ed'
13 supplements, secondary educational aid. That's
14 where that 700 million has gone. Down the
15 drain. We have to fix it. This package fixes
16 that.
17 And, by the way, for those of you
18 from New York City, listen to this. We asked
19 and we're supported in a study that was done on
20 the Cuomo tax. If that tax leaves, the study
21 shows, 7.7 billion of property transfers will
22 take place in a fairly short order, creating up
23 to 7,000 new jobs, and the taxes from that
4378
1 transfer will produce about $200 million to New
2 York City -- $200 million to New York City that
3 isn't there today. The hit at the state level,
4 about 20 million. Cheap enough initially.
5 Petroleum business taxes. We
6 have got to help our truckers be competitive.
7 We have been encouraging truckers to locate in
8 Jersey, Mass', Vermont, anywhere but New York.
9 We have been encouraging truckers to gas up
10 anywhere but New York. That is in this package,
11 the petroleum business tax: 10 cents a gallon
12 off diesel fuels, 6 cents a gallon and 3 cents a
13 gallon off home heating. Critically important
14 to make businesses more competitive in this
15 state.
16 Now, this is one, Senator, Mr.
17 President, that I know you have been a party to
18 as chairing agriculture. It's a circuit breaker
19 for farmers. It's a 20 percent credit for
20 farmers on their property taxes. Now, that is
21 critically important. We are an agricultural
22 state. All of us in this chamber know that
23 farmers have been out of business having to put
4379
1 their land up for development. Why? Because
2 they can't compete. We have got to cut taxes
3 for farmers, one of the largest industries here
4 in New York State.
5 Truckers are presently taxed on
6 gross receipts. We have to make them
7 competitive; and a gross receipt tax is the most
8 onerous tax. Why? I know Senator Gold knows
9 why because he is making notes. Why? Because
10 it's a tax on revenue. Whether you make a
11 profit or not, you pay a tax. That is wrong.
12 We have to tax truckers on their bottom line.
13 If they are profitable, they pay a tax. If they
14 are not profitable, they don't pay a tax. We
15 help them become profitable. Got to do that.
16 We have a container tax. We took
17 one cent off of two. There's another cent. We
18 have to remove that. That's in this package.
19 Why do we have to remove that? Because we put
20 that tax in in 1990, for what purpose? Senator
21 Connor knows that that tax went on to fund the
22 interest on the Environmental Bond Issue, and
23 the Environmental Bond Issue didn't pass. So
4380
1 what did we do with that two cents and 10 cents
2 per gallon on beer? What did we do with it? We
3 spent it. We put bottlers out of business is
4 what we've done. Got to get rid of it. Just
5 like the Environmental Bond Issue that went
6 down, this tax has to go down. Senator Mendez
7 agrees with that.
8 The alcohol beverage tax. My
9 neighbors -- I live about 20 miles from the
10 Vermont border, 15 miles. My neighbors go to
11 Vermont to buy their alcoholic beverages that
12 they drink, only on festive occasions like
13 holidays.
14 SENATOR CONNOR: In moderation.
15 SENATOR BRUNO: In moderation.
16 And what happens when they go to Vermont -- what
17 happens when they go to Vermont -- think about
18 this. Now, these are, you know, senior
19 citizens. They make it an excursion when they
20 go to Vermont. They go to Bennington, a
21 beautiful little community out of New York
22 State. So they buy their beverages for the
23 holidays; and while they are there, they buy
4381
1 clothing. They buy food, they gas up, they go
2 into restaurants; and guess what? They do that
3 regularly. Why do we want to encourage people
4 to drive out of our state, when we have the most
5 beautiful state in all of the United States?
6 Isn't that true? There is no question about
7 it.
8 There are sales taxes that we
9 have levied on businesses that are
10 unconscionable. How on earth we have allowed
11 these taxes to stay on these businesses is
12 beyond my imagination, and I am sure that we
13 will correct it this year. There are vendors -
14 think about this. Senator Onorato, you like hot
15 dogs.
16 SENATOR ONORATO: Let me make
17 notes.
18 SENATOR BRUNO: Right. If you go
19 to a vending machine, you will pay a tax on
20 beverages and some of what you buy in the
21 vending machine. You pay a tax. Now, if
22 instead of going to the vending machine you go
23 to a counter and at the counter you buy the same
4382
1 things, guess what? There is no tax. There is
2 no tax. Now, some of us didn't realize that so
3 we can be forgiven for allowing that situation
4 to exist here in this state. But now we know
5 it, we got to remove it. We got to be
6 competitive.
7 There are a whole litany of taxes
8 just like that, automatic car washers. You get
9 your car washed, Senator Lachman. You have a
10 nice clean car. You have to pay a tax if you go
11 through a vending device. If you don't, you
12 don't pay a tax. It's wrong. What's the hit to
13 the state? Maybe 2 million. But you know
14 what? Some of the people, again, that live all
15 around the borders, Massachusetts, Vermont, New
16 Jersey, do you know what they do? While they
17 are out getting their festive beverages and
18 shopping, they get the car washed. Makes sense.
19 This is the last one that I'm
20 going to share with you, but this one I saved
21 until last because it is really one of the
22 biggest mistakes that we've made that we will
23 now correct.
4383
1 There are printers here in New
2 York State who print promotional material. One
3 of the plants is located, coincidentally, in my
4 district, employs 1600 people. They have plants
5 in Michigan; and guess what? If they produce
6 certain materials here in this state that they
7 are going to ship around the country and around
8 the world, we tax them in a way that is like 20
9 times what they would pay if they produced the
10 same material and mailed it out of Michigan or
11 one of their other plants. Now, why do we do
12 that? We might just as well get a bus, load the
13 employees that are in my district on that bus,
14 and bus them out of the state. It is crazy. It
15 makes us noncompetitive.
16 So, as you are making your notes,
17 as you are preparing to debate, as you are
18 preparing to amend this beautiful package of job
19 creation, think about the common sense approach
20 of helping make businesses in this state more
21 competitive, creating more jobs for the people
22 who support us, who work hard, businesses that
23 locate here.
4384
1 The more tax a business pays, the
2 more business they are doing. The more business
3 they are doing, the more taxes they pay, and we
4 in this chamber are public servants. We are
5 here to serve the public. We all know that. We
6 will perform the greatest public service by
7 following the lead of Governor George Pataki,
8 who put forth the biggest tax cut package in the
9 United States last year.
10 We will follow that up this year
11 by doing something that will continue to
12 stimulate the growth in this state that we in
13 this chamber -- most of you voted for the
14 budget. We did it last year. You on this side
15 of the aisle, my left, coincidentally, are
16 partners in all of the good things that have
17 happened in this state, so I am confident that
18 you will continue to partner as we, Mr.
19 President, together move this state forward.
20 Thank you.
21 SENATOR CONNOR: Mr. President.
22 ACTING PRESIDENT KUHL: Senator
23 Connor, why do you rise?
4385
1 SENATOR CONNOR: Thank you, Mr.
2 President.
3 ACTING PRESIDENT KUHL: Why do
4 you rise?
5 SENATOR CONNOR: On the bill.
6 ACTING PRESIDENT KUHL: I have a
7 list going, Senator Connor. Senator Goodman
8 asked to speak, then you would be next.
9 SENATOR CONNOR: Thank you, Mr.
10 President.
11 ACTING PRESIDENT KUHL: Senator
12 Goodman.
13 SENATOR GOODMAN: Very brief, Mr.
14 President.
15 Mr. President. I rise to speak
16 in strong support of the remarks that have just
17 been made by the Majority Leader and would like
18 to simply point out that there are several areas
19 of sensitivity in our tax structure which have
20 been repeatedly brought to our attention which
21 might be worth mentioning in this particular
22 debate.
23 First of all, broadly, we should
4386
1 point out that there is, I think, a consistent
2 strand of disagreement between our sides of the
3 aisle on the matter of tax policy, and on almost
4 any occasion when the Republicans seek to
5 advance cuts in taxes which will in some way
6 benefit those of higher income brackets, the
7 charge is made that this is a "soak the poor to
8 give to the rich" proposal.
9 That, I think, may exaggerate it
10 slightly, but there is a sense between us that
11 there is a desire on our part to feather the
12 nests of the most affluent and, often, at the
13 expense of the poor. I, respectfully, reject
14 that and point out to you that our view of this
15 is quite different.
16 It is our view that in order to
17 stimulate the economy and in particular to
18 assure the jobs in the future will be able to be
19 enriched rather than depleted as they have been
20 so egregiously over the last decade, that tax
21 policy plays a crucial part in this whole
22 undertaking. I'm going to take one of the most
23 controversial and sensitive parts of our package
4387
1 and try to hit the nail on the head, and that's
2 the estate tax.
3 Now, the estate tax applies, as
4 we all know, to the estates of those who have
5 accumulated wealth during their lifetime and who
6 have some hope of passing it on to the next
7 generation of their families, and the assertion
8 is suggested that the estate tax is the
9 quintessential example of how we're trying to
10 help the well-to-do at the expense of poor.
11 I would point out to you that the
12 estate tax and the strategy connected with it is
13 possibly one of the most important things we can
14 do to develop the entire state economy for the
15 benefit of the less fortunate, and the reasoning
16 is very simple. I have had innumerable calls
17 from people who say we are about to move to
18 Florida, and we would like you to know that the
19 reason we're moving to Florida is that the
20 estate tax makes it impossible for us to remain
21 here, because Florida has rates that do not
22 punish those who have accumulated capital during
23 their lifetime and, as a result, we're leaving.
4388
1 Now, are these people all with
2 one foot in the grave and one foot on a banana
3 peel? No. They are people with significant
4 amounts of time left in their lives who would be
5 paying income tax to the State of New York and
6 all the other taxes which people who have some
7 income are able to pay, and yet we're losing
8 that entire tax base prematurely by literally
9 driving them out of the state.
10 The amounts involved relative to
11 the total state budget of $63 billion are
12 minuscule, yet we are skimming the cream off of
13 our tax base by having the shortsighted view
14 that to bring the estate tax schedules into
15 conformity with the federal is in some way
16 making an improper gift to the affluent.
17 I think we can apply similar
18 reasoning, as Senator Bruno has very lucidly
19 done, to a number of the other taxes which we're
20 writing up this morning. It is our belief that
21 an enlightened tax cut policy applied to the
22 sensitive karate chop points or nerve centers of
23 the tax structure will unquestionably permit us
4389
1 to stop the job hemorrhage which has so depleted
2 our state.
3 This underlies the Governor's
4 strategy in seeking a long-term tax relief
5 package, and I think we've already had quite an
6 extensive debate earlier this year in regard to
7 one piece of this and we need not go over all of
8 these points again. I know Senator Leichter and
9 I had an extensive and cordial but disagreeing
10 discussion with regard to that earlier measure,
11 but I think the same principles apply.
12 We want to build a state. We
13 want to build it on the solid concrete block of
14 enlightened policy, and we want to send a
15 message that when you come to New York you will
16 not be nibbled and chiseled away as an
17 individual capable of earning income. You will
18 not be in an uncordial environment which has
19 permitted New Jersey, Pennsylvania,
20 Massachusetts, Vermont -- all of the states
21 which abut New York have managed to suck out of
22 New York some of the marrow from of our bones
23 economically because they have congenial and
4390
1 consistent policies which send a signal to
2 people which says, "Come in to our state and we
3 won't tax you to death.
4 So I think this is a basic point,
5 and it's my belief that the voters in the last
6 election did send a very specific message on
7 that in New York State. There was a distinct
8 dichotomy between the offerings of the two
9 candidates for governor. The taxpayers did opt
10 and the voters did opt for a cut in taxes and
11 it's simply a fulfillment of that will as
12 expressed at the polls which you see a portion
13 of here in the debate this morning.
14 ACTING PRESIDENT KUHL: Senator
15 Connor, I'm informed by the desk that you have
16 seven amendments proposed. Just so we know,
17 orderly, how you want to deal with this. Do you
18 want to take them one at a time now? Because
19 there are some other members on your side of the
20 aisle who have indicated a willingness to speak,
21 too.
22 SENATOR CONNOR: We can call up
23 the first amendment, if you want, my amendment.
4391
1 ACTING PRESIDENT KUHL: All
2 right. We'll waive the reading of that.
3 SENATOR CONNOR: Waive the
4 reading of that, and I will explain it. In my
5 remarks, I'll address the overall tax policy
6 issues raised by the Majority.
7 ACTING PRESIDENT KUHL: Fine.
8 SENATOR CONNOR: Let me say, Mr.
9 President, that there is one myth that's been
10 propagated in this state, and that's that
11 somehow or other Democrats are against tax
12 cuts.
13 Let me say right here and now the
14 Senate Democrats are for tax relief for the
15 middle class and working people and the
16 businesses who employ and train them in New York
17 State.
18 And, there are some features in
19 this tax package that Senator Bruno has
20 presented that I agree wholeheartedly with. It
21 does, though, look very much like an exercise
22 that I have seen virtually every year for the
23 last 18 years; and that is, the Republican
4392
1 majority brings before the house its often one
2 house tax package.
3 And, for years, I didn't get it.
4 For years, when that happened, Mr. President, I
5 worried, "But where is the money for this?" How
6 do we pay for this, and how does it fit into the
7 whole budget negotiations that are going on?
8 Well, Mr. President, I get it.
9 It's actually nothing more than a statement of a
10 wish list. Perfectly legitimate statement by
11 the Majority of who they are for, what they
12 would do if they could do it, and that's
13 legitimate.
14 And, today, Mr. President, the
15 Senate Democrats will present ways to make this
16 bill better and also to show who we're for and
17 what we would do if we could do it. You will
18 hear amendments, Mr. President, that will
19 provide to Sally and Harry in Oswego County
20 relief for their property taxes. That's what we
21 stand for in contrast to the obsession with
22 repealing the mansion taxes on people who buy
23 and sell real estate residences over a million
4393
1 dollars.
2 It's a matter of priorities, Mr.
3 President. We're not against tax cuts, but we
4 think it's important that the tax cuts be
5 focused on the people who need the help most.
6 Now, in general, what we hear from the Majority
7 is what I believe is a discredited theory. I
8 once thought it worked; and that is, provide
9 overall tax relief, provide tax relief to
10 businesses, and it will trickle down and provide
11 jobs and income for average New Yorkers. It
12 once worked.
13 But today the trickle-down
14 theory, the old theory -- and it was a theory
15 Democrats ascribed to. John Kennedy when he was
16 President pushed a tax cut. Why? Well, he
17 believed a rising tide lifts all boats. But
18 we're in a different hyper-technical, hyper
19 efficient economy today, and what we've seen is
20 an economy where a rising tide lifts all yachts,
21 and Sally and Harry are stuck in that leaky row
22 boat of life and they are not being lifted.
23 They are being laid off. They are seeing no
4394
1 growth in real income.
2 And, indeed, I know Senator Bruno
3 said 102,000 new jobs -- is that the number?
4 102,000 jobs, and we've debated before whether
5 you look at the employer statistics or the
6 household statistics and how it may actually be
7 that maybe there are more people working in New
8 York State, but they live in Pennsylvania, New
9 Jersey, Connecticut, Vermont, and it's not a
10 real job growth for New Yorkers.
11 But I pose a question for New
12 Yorkers. You have had the tax cuts of last
13 year, and, yes, many of us supported them after
14 we negotiated and made a better -- better
15 package for middle class New Yorkers. But I ask
16 New Yorkers: Do you really feel safer in your
17 jobs; and if this tax package passes, will you
18 really feel that you will never be laid off?
19 Will you really feel that suddenly your income
20 -- you'll have real growth? You won't be stuck
21 flipping burgers? You'll hold that job? Do you
22 feel in Monroe County you'll keep that white
23 collar job? There won't be any more layoffs?
4395
1 If this passes, can we really tell New Yorkers
2 that?
3 New Yorkers need relief today.
4 They need relief from taxes, and they need job
5 security and real jobs. They can't wait for
6 some theory that used to work that says let's
7 give tax cuts to businesses and they will grow
8 as businesses and they will employ more people
9 down the road. Why, Mr. President? Because
10 we've seen businesses get more and more
11 profitable and, once upon a time when we all
12 studied economics, that meant more people would
13 work; and we all knew when companies were laying
14 off people, it meant times were tough. The
15 company was losing money. Probably the CEO
16 would forego part of his income. Sales weren't
17 good. Recession was on the way.
18 That's not where we are today.
19 Now we see profits go, CEO compensation go
20 through the ceiling, and the average worker laid
21 off. Now when you hear about 10,000 layoffs,
22 people rush to buy the stock. It must be a good
23 year.
4396
1 Well, that doesn't serve the
2 working men and women and the middle class men
3 and women in this state, and that's why this
4 discredited theory -- which I would have
5 ascribed to ten years ago, that giving these
6 corporations tax breaks will somehow or other
7 benefit average New Yorkers.
8 And it's not the fault of the
9 Majority. It's not the fault of their economic
10 theorists. It's the economy we're in today. We
11 have to wake up. The world has changed and the
12 amendments we're offering address that very
13 problem because it may take longer and it may
14 never happen that this trickle down when you do
15 away with taxes on business will somehow benefit
16 the workers.
17 Because, I ask you, we have seen
18 a radical, extremist Republican majority in
19 Washington refuse to reach out and tax
20 billionaire Americans who park themselves in the
21 Cayman Islands to avoid all taxes, estate taxes
22 and other taxes. Why? Why protect them?
23 You know, I am not from the old
4397
1 leveling theory of break up all the accumulated
2 wealth and somehow distribute it, but I ask
3 this, Mr. President. Where are the
4 entrepreneurs? Where are the people who
5 accumulate wealth and still call it capital and,
6 by capital, meaning they will invest it in
7 businesses that grow and employ people? We
8 don't see that now.
9 They take all that wealth and
10 they put it in their pocket and they keep it in
11 their pocket. They put it in passive -- passive
12 investments that create no jobs, and then they
13 lay off more people so they can have more
14 passive investment money coming into their
15 pocket.
16 I am perfectly willing to give
17 incentives to true entrepreneurs, to businesses
18 that are willing to grow and employ New
19 Yorkers. That's why, Mr. President, the first
20 amendment I have called up, which will cost
21 nothing from the Governor's budget, is taken
22 from a proposal the Senate Democrats put forward
23 called ESCRA, the Employment Security and
4398
1 Corporate Responsibility Act, which has many
2 features, including a raise in the minimum wage
3 which hopefully we will deal with later this
4 year.
5 But one of the features in there
6 is a tax credit for corporations. Yes,
7 Democrats want a tax credit for corporations,
8 for corporations that retrain their workers in
9 the new technologies and put them to work rather
10 than laying them off and move off somewhere else
11 looking for the properly trained people. And do
12 you know what? We put that out and labor unions
13 said this is very interesting; we can support
14 this. And business, business came forward and
15 said, you know, we kind of like this. We will
16 take a look at that; we can support this.
17 So let's make this tax proposal
18 better. Now, I say it won't cost anything
19 because we have earmarked -- the Governor in his
20 budget has a pot full of money, $50 million,
21 unassigned, really, but to go to the Empire
22 State Development Corporation for job
23 development, and we say let's use our
4399
1 legislative prerogative and tell them exactly
2 how to use that. Use it for tax credits for
3 businesses that really train or retrain and
4 employ New Yorkers, not for big give-aways for
5 companies to come in and make big promises, "Oh,
6 we're going to have 600 jobs here," and two or
7 three years later the town and the county is
8 holding the bag when they pull up stakes and
9 leave and lay off the 100 -- not 600 -- the 100
10 people they managed to employ for two or three
11 years. We've all heard it.
12 Haven't all your IDAs and your
13 job development schemes and your counties and
14 your towns been ripped off that way? We're for
15 the companies that promise and deliver jobs, and
16 we want to help those companies, and that's what
17 this economy is about, and that's what the
18 average New Yorker wants.
19 Mr. President. This amendment
20 would spend that money. It's already in the
21 budget for those tax credits for those
22 businesses, those responsible businesses who in
23 my mind and in the mind of my colleagues
4400
1 represent the kind of opportunity and
2 entrepreneurial spirit that we Democrats have
3 always supported even in the dark days of the
4 '60s and early '70s, when Republican majorities
5 in both houses and a Republican Governor drove
6 New York's taxes through the ceiling.
7 I recognize it's a new Republican
8 Party now, undoing the wrongs of the past, you
9 know. I remember Senator Bruno -- I remember
10 him standing alone on that side against taxes,
11 but I also remember in 1990 all the Democrats on
12 this side of the aisle standing with Senator
13 Bruno against many of these petty taxes that
14 were put in then.
15 So I tell you, Mr. President,
16 it's a new Democratic Senate here. We're for
17 tax cuts. We just want better tax cuts because
18 we're concerned about that homeowner Upstate.
19 We're concerned about that middle class taxpayer
20 who is earning less. We're concerned about the
21 people who are afraid for their jobs -- blue
22 collar and white collar, afraid for their jobs.
23 We want to reassure them, and we want to focus
4401
1 not on business as a whole, not on people that
2 already got it so they can have more and not
3 invest it or put it in passive investments.
4 We're concerned about the companies that really
5 deliver the goods, that really employ New
6 Yorkers, that want to grow and make money, and
7 make money and share it by growing and growing
8 and employing more and more New Yorkers.
9 That's why we proposed these
10 amendments, and each one of these amendments -
11 and I have talked about the first one, Mr.
12 President -- will focus the tax relief that the
13 Majority wants to give much more focused, not on
14 special interests, not on the beverage industry
15 or not on some in particular but on middle class
16 and working people in New York State and those
17 who wish they could work, those who want jobs,
18 those who had jobs and lost them, those who had
19 good paying jobs and now have underpaying jobs
20 or part-time jobs or no-benefit jobs.
21 These are the people we want to
22 provide tax relief to and to the companies that
23 employ them. Very, very important. We're for
4402
1 business. Business creates jobs. We understand
2 that business creates jobs. We want to focus on
3 businesses that create jobs not on giving relief
4 to people who have accumulated enormous wealth
5 and are so comfortable they dropped out of the
6 old entrepreneurial spirit. They don't invest.
7 They don't take chances. They don't take
8 chances to grow this new economy.
9 And we say the old trickle-down
10 theory won't work because of that phenomenon,
11 because companies lay off tens of thousands of
12 people and their profits go up. So we have to
13 have a new approach to how we help the right
14 kind of businesses to employ New Yorkers.
15 So, Mr. President, in general, I
16 say we're with you on tax cuts, but let's pay
17 attention to who gets the benefit. Let's make
18 sure, not because of some theory that says
19 somehow or other a couple of years from now it
20 will land in their pockets. Let's make sure
21 now, the year after we do the tax cut that
22 working New Yorkers, that middle class New
23 Yorkers, that our families, our homeowners -
4403
1 not our large real estate holders, not our
2 mansion owners -- our homeowners get that
3 benefit now so they have hope for the future in
4 New York.
5 So these amendments, I think you
6 will see as the sponsors explain them, as I have
7 explained the first one, will have that focus.
8 It's not that we disagree about tax cuts.
9 Believe me, we don't disagree. It's who is
10 going to benefit. Who gets the money, and
11 that's what it's about, Mr. President.
12 I urge the adoption of my
13 amendment to provide those tax credits to
14 corporations that employ New Yorkers, that do it
15 now. I know Senator Bruno hopes it will happen
16 because of economics. We're saying reward those
17 companies now.
18 ACTING PRESIDENT KUHL: Is there
19 any other Senator wishing to speak on the
20 amendment by Senator Connor?
21 Senator Bruno.
22 SENATOR BRUNO: Mr. President. I
23 would just stand and congratulate Senator Connor
4404
1 on his foresight and, I think, an excellent
2 proposal and something that I think we in the
3 majority here would certainly embrace in the
4 proper format, and we will discuss that with you
5 as we go forward. But as these amendments are
6 presented here in the lateness of the hour, I
7 would recommend that we pass the tax package
8 that is on the floor, and then we will work with
9 you and the Speaker to see if we can't enhance
10 because, Senator Connor, we agree.
11 We are in agreement, and I have
12 never seen a tax cut that I don't like.
13 ACTING PRESIDENT KUHL: The
14 question is on the amendment.
15 SENATOR CONNOR: Party vote in
16 the affirmative.
17 SENATOR BRUNO: Party vote in the
18 negative.
19 ACTING PRESIDENT KUHL: Secretary
20 will call the roll.
21 (The Secretary called the roll.)
22 Record the party line vote.
23 THE SECRETARY: Ayes 20. Nays
4405
1 35.
2 ACTING PRESIDENT KUHL: The
3 amendment is lost.
4 Secretary will read the last
5 section.
6 THE SECRETARY: Section 82, this
7 act shall take effect immediately.
8 ACTING PRESIDENT KUHL: Call the
9 roll.
10 (The Secretary called the roll.)
11 SENATOR DOLLINGER: I have an
12 amendment to the bill, as well.
13 SENATOR CONNOR: Mr. President.
14 I presented the first amendment. Other members
15 have the other amendments.
16 ACTING PRESIDENT KUHL: Lest you
17 be confused, gentlemen, there are a couple of
18 members who have another place to go. We are
19 going to take a selective roll call vote. Then
20 we will be right back to you. We'll never
21 slight either of you.
22 Call the roll.
23 Senator Skelos, how do you vote?
4406
1 SENATOR SKELOS: Aye.
2 ACTING PRESIDENT KUHL: Senator
3 Rath, how do you vote?
4 SENATOR RATH: Aye.
5 ACTING PRESIDENT KUHL: The roll
6 call is withdrawn. We're back on the -
7 Senator Mendez, why do you rise?
8 SENATOR MENDEZ: Mr. President.
9 I would like to have unanimous consent to be
10 recorded in the negative on Calendar Number 642.
11 ACTING PRESIDENT KUHL: Senator
12 Mendez, I would like to do that after we
13 complete this, if that's okay.
14 SENATOR MENDEZ: All right.
15 ACTING PRESIDENT KUHL: Because
16 we're on debate on the bill.
17 Senator Dollinger, I had Senator
18 Gold as next as presenting his amendment.
19 SENATOR GOLD: No, Senator
20 Dollinger is ahead of me.
21 ACTING PRESIDENT KUHL: All
22 right. Chair recognizes Senator Dollinger.
23 SENATOR DOLLINGER: My thanks to
4407
1 Senator Gold and my thanks to the President. I
2 ask that my amendment be put before the house.
3 I waive its reading and ask to be heard on the
4 amendment, Mr. President.
5 ACTING PRESIDENT KUHL: The
6 amendment is before the house, Senator
7 Dollinger. The reading of it is waived, and you
8 have the floor to explain it.
9 SENATOR DOLLINGER: Thank you,
10 Mr. President. I will be brief.
11 Consistent with what Senator
12 Connor said about targeting tax relief, this
13 amendment targets tax relief for businesses.
14 This is part of the Democratic attempt to target
15 a reduction in the gross receipts tax for those
16 companies that are most likely to leave this
17 state because of high taxes, the same kind of
18 business customers that Senator Bruno talked
19 about.
20 Under the Majority proposal, they
21 would freeze the gross receipts tax for two
22 years and then gradually phase it out. We can't
23 wait that long for tax relief. Why should the
4408
1 businesses who came to Senator Seward's hearing
2 at the Energy Committee and Telecommunication
3 and begged us to reduce the gross receipts tax
4 -- said this tax is far too onerous. It was
5 devastating to the development of new technology
6 in this state so that New York State could
7 continue to be a leader in telecommunications
8 deregulation and in electrical power
9 deregulation. One of ways to do that was to
10 reduce the gross receipts tax.
11 The people who were complaining
12 were business customers and manufacturers, the
13 entities that have to pay a substantial
14 surcharge on their electrical bills to cover
15 gross receipts tax.
16 This amendment would do four
17 things. First of all, it would create a
18 manufacturers' exemption for the gross receipts
19 tax -- you know, manufacturers like Eastman
20 Kodak Company, like IBM, like Grumman, like
21 General Electric, you name it, the big employers
22 we try to bring to this state, the people who
23 create value, who create jobs. This would
4409
1 create an exemption for them so that they would
2 not be subject to the gross receipts tax. It's
3 what business wanted. It's what the Business
4 Council asked for. It's a tax specifically
5 designed to reduce the cost to manufacturers.
6 That's its first facet.
7 Secondly, it would reduce 25
8 percent the telecommunication portion of the tax
9 on business customers, so that gross receipts
10 tax on telephones used by business customers
11 would go down 25 percent. Ask any one of those
12 business that Senator Bruno has lauded as being
13 critically important to this state what they
14 want. All of them would say reduce my gross
15 receipts tax. I don't have to pay as much for
16 my telephone usage.
17 The third thing it would do, it
18 would give an incentive in this state to
19 continue to be a leader in the nation in the
20 development of high-speed electronic
21 communications because it would create an
22 additional exemption for those telephone lines
23 used in high speed data transmission, tele
4410
1 conferencing, high speed Internet access for
2 businesses and individuals. You want New York
3 State to be the leader in the next round of
4 telecommunications technology? This is your
5 chance, gentlemen. Here's your chance. Take
6 the gross receipts tax off these kinds of wires
7 that we ought to be encouraging the development
8 of in this state rather than discouraging.
9 Lastly, this amendment has good
10 news for the water companies. They now pay $2
11 million in gross receipts tax. Abolished under
12 this bill. Gone. History. In addition, it
13 lowers water bills. In addition, it removes it
14 entirely from the trucking industry. Senator
15 Bruno's proposal says we're going to save some
16 money for the trucking industry. We got to do
17 something good for it. Here it is. Save them
18 $17 million, not sometime in the future, not
19 five years in the future. We can do it now.
20 Let the Senate go on record now.
21 Reduce it for -- eliminate it for water
22 companies, give our trucking companies a break,
23 develop high speed technology in the
4411
1 telecommunications industry, give our business
2 customers a 25 percent reduction in their gross
3 receipts tax and, lastly, give our
4 manufacturers, the people who provide the
5 quality jobs, the high paying jobs that we all
6 want, give them an exemption from the gross
7 receipts tax.
8 Here's your chance. Do you
9 really want to cut taxes? Do you want to do it
10 now? You want to give our businesses some
11 relief? You want to live up to what we now
12 share? When Senator Bruno says we want to cut
13 taxes for business, Senator Connor says we want
14 to cut taxes for business, here's your chance.
15 Vote yes on this amendment, and
16 it will happen.
17 ACTING PRESIDENT KUHL: Is there
18 any other Senator wishing to speak on the
19 amendment?
20 (There was no response.)
21 Hearing none, the question is on
22 this amendment.
23 SENATOR CONNOR: Party vote in
4412
1 affirmative.
2 ACTING PRESIDENT KUHL: Secretary
3 will call the roll.
4 (The Secretary called the roll.)
5 ACTING PRESIDENT KUHL: Record
6 the party line vote.
7 SENATOR BRUNO: Party vote in the
8 negative.
9 THE SECRETARY: Ayes 21, nays
10 35.
11 ACTING PRESIDENT KUHL: The
12 amendment is defeated.
13 The Chair recognizes Senator
14 Gold.
15 SENATOR GOLD: Thank you, Mr.
16 President.
17 I have an amendment. I'd waive
18 its reading and ask permission to explain it.
19 ACTING PRESIDENT KUHL: The
20 reading of the amendment is waived. The floor
21 is yours to explain the amendment.
22 SENATOR GOLD: I understand that
23 as you used to say, it's a tough crowd. So
4413
1 knowing I couldn't do it all myself, I want you
2 to know, Senator Bruno, I have Spiderman and the
3 Hulk and a few other superheroes. Maybe that'll
4 help. I don't know. Yeah, it's a great tie.
5 It's my son Adam's, Adam Gold, my son Adam.
6 Senator Bruno, first of all, you
7 made a comment that you admired and respected
8 and congratulated our Leader and then made all
9 of us feel very good. You said that because of
10 the lateness of the hour -- that was your words
11 -- that you'd like to go with your package and
12 get it over with. I would just like to remind
13 you, you are the one who runs the Senate and we
14 have legislative days. You could have this bill
15 reprinted. We could have this on the table next
16 week, and I don't think the lateness of the hour
17 would prevent that.
18 What I do believe, though, is
19 that obviously this conversation is a wish list
20 as has been pointed out because we really have
21 no budget, and I say to myself, Is Joe Bruno
22 saying that we take the Pataki budget and cut 80
23 million from that and that's what we're giving
4414
1 the voters? That why we haven't seen a budget
2 this year? I don't know. I know last year you
3 put out a budget and you challenged the Assembly
4 to put out a budget. This year, your side of
5 the aisle, for a good reason, is running away
6 from the Pataki budget, and I think I almost
7 respect you for doing that.
8 Senator Goodman made a comment
9 that there's a difference of tax philosophy
10 between your side of the aisle and ours, and I
11 would, in all fairness to Senator Goodman, have
12 to agree with him. Your side of the aisle votes
13 for five billion in taxes and then tells the
14 public you didn't do it. At least when we do
15 something, we own up to it and we're not ashamed
16 of it, but if you take your votes, Senator
17 Bruno, and not necessarily you but certainly the
18 gentleman you're talking to and other members on
19 your side, if you take your votes over the last
20 four, five, six years and indeed since I have
21 been a member, you're the Majority who voted in
22 all of these taxes. So you go through the
23 ritual of offering tax cuts that's on a day when
4415
1 we don't do the budget and then on the day we do
2 the budget, you vote the tax cuts in, and you're
3 smart enough to know that the press can't put
4 two days together, so you get away with it.
5 With regard to my amendment, my
6 amendment deals with a circuit breaker to
7 protect people on the issue of local taxes, and
8 I think it's interesting that in discussing your
9 package, Senator Bruno, you indicated that New
10 York was 50th in jobs. You talked about
11 everything except local taxes, and I don't blame
12 you because it's got to be a major embarrassment
13 for you.
14 It's a major embarrassment for
15 you because New York is the first in the nation
16 on local taxes, and if it's up to Governor
17 Pataki this year, I don't know whether you can
18 get better than first, but I guess he'll secure
19 our place in history as first forever because,
20 for example, as you go around the state and take
21 a look at the Pataki budget and the impact it
22 will have on local taxes, it's overwhelming.
23 In Delaware County right now
4416
1 where from '88 to '94, the increase was 6.5
2 percent, if you work in the Pataki budget this
3 year, it will go to 11.6. It's going to double
4 the local tax impact in Delaware County.
5 Herkimer County which has been
6 raised by 6.5 percent in the same time is going
7 to go over ten percent if you go with the Pataki
8 budget.
9 Tompkins County where I spent a
10 lovely six years has increased 8.1 percent.
11 It's going to go over 10 percent, almost to 11
12 percent.
13 Let me see, Gus. Do I see you
14 around in here? Let me see. What's a good
15 county for you in here? Well, I'll be glad to
16 show you the list, but all over the place, in
17 Cayuga County, 5 percent up to 10.3 percent.
18 That's what the Pataki budget will do to local
19 taxes, and interestingly enough, part of the
20 main bill here talks about cutting the gross
21 receipts tax on utilities. The Pataki budget
22 opens up the option of local governments to
23 increase it.
4417
1 The whole block grant program is
2 a scam to hide the fact that we are pushing
3 costs down to the localities. That's what it
4 is. It's one of the biggest scams that's ever
5 been attempted to be perpetrated on the state,
6 and I'll never forget that budget hearing when a
7 local upstate welfare official testifying before
8 the Senate and Assembly joint committee sat
9 right up against that microphone and looked at
10 us and said, And we think the concept of block
11 grants is terrific, giving us that local
12 discretion, and then he moved a foot or two away
13 from the microphone and said, As long as you
14 give us enough money. He didn't want that part
15 on the record but he wanted us to hear it. Of
16 course, if you give us enough money, and that's
17 the whole idea of the block grant program, to
18 not give the amount of money, and what's the
19 locality going to do about it? Since we have
20 given the mandates, they're going to increase
21 property taxes.
22 My amendment is going to take
23 that circuit breaker and instead of limiting it
4418
1 to households under 18,000, to raise that
2 threshold to 100,000 because that now becomes
3 some kind of reality throughout this state.
4 Your plan not only makes sure you
5 take care of the very, very highest, but you
6 ignore that middle income group who is
7 struggling.
8 As a matter of fact, one of the
9 -- one of the most tragic pieces of testimony I
10 have ever heard at any hearing I've ever
11 attended in my quarter of a century in this
12 house was in New Paltz, Senator Stavisky was
13 bright enough to set up hearings around the
14 state so that students and others could talk
15 about the impact of the Governor's budget on the
16 college population, and the chancellor testified
17 that as a result of last year's increases in
18 tuition at SUNY, 10,000 students dropped out.
19 Now, that's a tragedy without hearing anything
20 else, but what was even worse is that 8500 of
21 those students were part-time students.
22 Now, think about that. Think
23 about that. Part-time students, Senator Bruno,
4419
1 not bums, not welfare cheats, not this, that,
2 not millionaires' kids. These are young people,
3 some of them, by the way, not so young, some of
4 them middle-aged people who are able to go back
5 to school but, Senator, this is the cream of
6 this state, people who say, I need an education
7 and I'm going to work part of the day and I'm
8 going to go to school part of the day. I'm
9 going to raise my family part of the day and I'm
10 going to improve my life. 8500 of those people
11 were knocked out of their college education
12 right in the middle because of the Pataki
13 program of last year and the increase.
14 Horrifying testimony.
15 What we are doing in my amendment
16 is we are putting in that circuit breaker. We
17 increase the value of the credit for seniors and
18 middle income taxpayers six-fold. We provide a
19 credit for residential and agricultural uses,
20 Senator Kuhl. We increase the property value
21 which is eligible from 85,000 to 250,000, full
22 value. We provide for report to the Legislature
23 from the Tax Department on the impact of this
4420
1 enhanced program.
2 Now, the bottom line is that I
3 ascribe to the philosophies as set forth by my
4 Conference and it's espoused by Senator Connor.
5 I think that you have to change as things change
6 and education changes. You wonder when you
7 listen to some of the philosophies why are we
8 taking education away from our children? Why
9 are we doing these things? Because we are
10 envisioning the Jetsons tomorrow where all you
11 have to know is to go in to work and push a blue
12 button or a red button and put your feet up and
13 get a paycheck because machines are going to do
14 it? I don't think so.
15 I think that the issue of honesty
16 is one which it's about time we came to grips
17 with, and if your party put in these taxes, I'm
18 delighted that at least Senator Bruno will stand
19 up and say, "Look, we did some mistakes. I'm
20 willing to try to help to change some of those
21 mistakes."
22 Senator Bruno, in my years in the
23 Senate, I think it's the first time I ever heard
4421
1 a Republican at least admit that he was part of
2 a tax program. I know that under the secrecy
3 provisions of the Senate, every time there's a
4 vote on taxes, you burn the roll calls because
5 you don't want to have to admit you did it.
6 But this circuit breaker is
7 important. If the taxing philosophy of the
8 Republican Party is such that you're going to
9 force increases again and again on local
10 taxpayers, then you've got to have a circuit
11 breaker and at least protect the categories of
12 people that I have mentioned. You've got to
13 protect the seniors. You've got to protect
14 middle income people. You've got to let them
15 educate their children, and you've got to let
16 them be in a position where they can afford to
17 keep their homes.
18 That's what the amendment does.
19 ACTING PRESIDENT KUHL: Is there
20 any other Senator wishing to speak on the
21 amendment?
22 (There was no response.)
23 Hearing none, the question is on
4422
1 the amendment.
2 SENATOR PATERSON: Party vote in
3 the affirmative.
4 ACTING PRESIDENT KUHL: The
5 Secretary will call the roll.
6 (The Secretary called the roll.)
7 Party vote in the negative by the
8 Democrats -- excuse me -- in the positive.
9 Senator Bruno.
10 SENATOR BRUNO: Party vote in the
11 negative.
12 ACTING PRESIDENT KUHL: Record
13 the party line votes.
14 THE SECRETARY: Ayes 21, nays 35.
15 ACTING PRESIDENT KUHL: The
16 amendment is defeated.
17 ACTING PRESIDENT KUHL: Senator
18 Stavisky, you had an amendment?
19 SENATOR STAVISKY: Yes, I do. I
20 believe the amendment is at the desk.
21 ACTING PRESIDENT KUHL: It is.
22 SENATOR STAVISKY: I'd ask to
23 waive the reading, and I will explain.
4423
1 ACTING PRESIDENT KUHL: The
2 amendment is before the house. The reading is
3 waived. Senator Stavisky is recognized for the
4 purpose of explaining his amendment.
5 SENATOR STAVISKY: I have been
6 enormously impressed by the air of good feelings
7 in which Senator Bruno praised Senator Connor
8 and Senator Connor responded, and I want you to
9 know that this expression of mutual interest and
10 a desire to solve problems for the benefit of
11 all of the residents of the state is a lesson
12 that should not be lost, and we should build
13 upon that sense of good feeling and cooperation.
14 Accordingly, I learned a very
15 valuable lesson from some Republican members of
16 the state Senate who had the good sense to offer
17 legislation that would accomplish the following
18 result: That would create a personal income tax
19 deduction for college tuition.
20 Unfortunately, the New York Tax
21 Reform and Reduction Act of 1987 resulted in the
22 expiration of a tuition deduction in 1989.
23 Although the 1987 Act increased the standard
4424
1 deduction and reduced tax rates, the loss of the
2 tuition deduction was particularly heart felt by
3 families who have more than one dependent in
4 college at the same time. The reinstatement of
5 this tuition deduction will provide taxpayers of
6 the state with a reinstatement of the tuition
7 deduction and additional financial relief needed
8 to pursue quality education for their dependents
9 and ultimately lead to a more productive work
10 force.
11 I am reading not from a
12 Democratic propaganda piece. I am reading from
13 a memorandum of support given to a Senate bill
14 sponsored by Senator Owen Johnson who was
15 magnificent in the Higher Education Committee
16 meeting today. He and I arrived at the same
17 conclusions with regard to what was a
18 questionable bill, and I was delighted that
19 Senator Johnson had the independence and
20 integrity to question that piece of legislation
21 and to seek improvements, and so I have learned
22 that we should be listening to each other, and I
23 am asking that this piece of legislation, which
4425
1 allows a tax -- a tuition deduction in behalf of
2 dependents attending full time at an institution
3 of higher learning in the state the opportunity
4 to have a maximum deduction of either $1,000 or
5 one half of the tuition less any tuition
6 assistance received, and I think that that's a
7 marvelous concept, and I commend the Republican
8 members of the Senate for having the good sense
9 and judgment to introduce such a worthwhile
10 piece of legislation.
11 Look, if you can convince Leonard
12 Stavisky who is not a Republican that you have a
13 very interesting and worthwhile piece of
14 legislation, I am willing to support it, and I
15 ask Senator Johnson, of course, as the prime
16 sponsor of this bill and Senator DeFrancisco and
17 Senator Farley and Senator Holland and Senator
18 LaValle and Senator Levy and Senator Marchi and
19 Senator Padavan and Senator Present and Senator
20 Rath and Senator Seward and Senator Skelos and
21 Senator Trunzo and Senator Velella and Senator
22 Volker, you did the right thing, and I'm joining
23 with you and I'm introducing as an amendment to
4426
1 the bill before us the legislation that you put
2 forth, and I'm certain that you did it in good
3 faith.
4 So you've convinced me, and I
5 think you've convinced perhaps a number of the
6 members on this side, and I would like you to
7 stand up for the legislation that you proposed
8 and join us. We'll have more than enough votes
9 to make this the law of the state of New York,
10 certainly by action of the Senate, if you
11 re-establish, reconfirm your good sense in
12 sponsoring this legislation.
13 And so, Mr. President, I move
14 this amendment to the bill that is before us and
15 urge every one of the Senate sponsors of this
16 bill, the Johnson, et al bill, to stand up and
17 be counted and to vote for reconfirmation of
18 their commitment to affordable higher education
19 for their children and sometimes for themselves
20 and sometimes even for their parents. It's
21 never too late to learn.
22 Senior citizens are going back to
23 college, and if someone is willing to make that
4427
1 commitment, I think that we should help the
2 taxpayers bear some of the benefits of the
3 Johnson bill which I am fully prepared to
4 support, and I urge every Democrat to follow the
5 lead of our Republican colleagues in supporting
6 this as an amendment to the present bill.
7 I move the amendment.
8 ACTING PRESIDENT KUHL: Is there
9 any other Senator wishing to speak on the
10 amendment?
11 (There was no response.)
12 Hearing none, the Secretary will
13 call the roll.
14 (The Secretary called the roll.)
15 SENATOR PATERSON: Party vote in
16 the affirmative.
17 ACTING PRESIDENT KUHL: Record
18 the party line votes. Announce the results.
19 THE SECRETARY: Ayes 21, nays
20 35.
21 ACTING PRESIDENT KUHL: The
22 amendment is defeated.
23 The Chair recognizes Senator
4428
1 Stachowski.
2 SENATOR STACHOWSKI: Mr.
3 President, I have an amendment at the desk, I
4 believe, and I would like to waive its reading
5 and explain the amendment.
6 ACTING PRESIDENT KUHL: The
7 amendment is at the desk, Senator Stachowski.
8 The reading of it is waived, and you're provided
9 with the opportunity to explain the amendment.
10 SENATOR STACHOWSKI: Basically
11 what this amendment would do would -- it would
12 amend the Tax Law to provide that educational
13 assistance of -- granted to an employee by an
14 employer so they could get a higher education
15 would be excluded from the New York State
16 taxes. I think that this is an important piece
17 of legislation in today's marketplace where
18 people are unsure of their jobs and when they
19 have the opportunity to get a higher education
20 and the employer is willing to give them the
21 money, that this would be a great place for us
22 to make a stand and maybe say, We're not going
23 to tax this benefit that the employers are nice
4429
1 enough to grant to their employees.
2 I think it's a very important
3 amendment. I think that not having written this
4 myself and not having thought up this myself, I
5 should give credit to the people that did, and
6 so that I would point out to everybody that just
7 this past year, this was the Nozzolio-Alesi
8 bill, and I know that these are two great people
9 that had foresight when they thought of this
10 exception, and they knew that this was the right
11 thing to do, exclude these taxes, exclude this
12 amount of money from New York State taxes, and
13 seeing that this was the right time to move this
14 bill, I only follow their lead and move this as
15 an amendment and, Mr. President, I would like to
16 move the amendment.
17 ACTING PRESIDENT KUHL: Is there
18 any other Senator wishing to speak on the
19 amendment?
20 (There was no response.)
21 The Secretary will call the roll
22 on the amendment.
23 (The Secretary called the roll.)
4430
1 ACTING PRESIDENT KUHL: Record
2 the party line votes.
3 THE SECRETARY: Ayes 21, nays 35.
4 ACTING PRESIDENT KUHL: The
5 amendment is defeated.
6 SENATOR GOLD: Mr. President.
7 ACTING PRESIDENT KUHL: Senator
8 Gold, why do you rise?
9 SENATOR GOLD: I don't think
10 you're giving some of the members on the other
11 side a chance to get their hands up on
12 exceptions. I think you're going too fast.
13 ACTING PRESIDENT KUHL: That's
14 probably intentional (laughter).
15 SENATOR GOLD: Oh, okay. Thank
16 you.
17 ACTING PRESIDENT KUHL: The Chair
18 recognizes Senator Oppenheimer for an
19 amendment.
20 SENATOR OPPENHEIMER: It's always
21 a pleasure when you're here at the Chair,
22 Senator Kuhl.
23 Well, this amendment underlies -
4431
1 underlines.
2 ACTING PRESIDENT KUHL: Excuse
3 me, Senator. Are you offering up the amendment
4 at this time at the desk?
5 SENATOR OPPENHEIMER: Yes, I'm so
6 sorry. Is the amendment at the desk and, if so,
7 I would waive its reading.
8 ACTING PRESIDENT KUHL: The
9 amendment is before the house. We'll waive the
10 reading of it and provide Senator Oppenheimer
11 the opportunity to explain the amendment.
12 SENATOR OPPENHEIMER: Thank you,
13 Senator Kuhl.
14 This amendment underlines what
15 many of you now know is one of my primary
16 concerns, and it underscores my concern for New
17 York women and at the same time, for the economy
18 of New York.
19 Child care is, in my opinion, a
20 major state purpose, yet our state is only
21 providing for about 30 percent of the need for
22 child care in our state, and I can tell you that
23 parents are very stressed out about this, and it
4432
1 very negatively impacts the quality of their
2 lives not to know that their children are well
3 cared for while they are in the work force.
4 Now, currently New York State
5 does support child care in the form of grants to
6 not-for-profits serving DSS youngsters, but we
7 have to turn our concerns to other centers,
8 profit-making centers, and so I offer this
9 amendment which has the good name of Senator
10 Goodman on it as he was the original sponsor of
11 this, and it would apply to centers which are
12 created inside of corporate headquarters or with
13 several corporations working together to provide
14 a child care center.
15 In these centers would be at
16 least 50 percent -- actually, no, more than 50
17 percent employees' children. The other 50
18 percent would be open to the neighborhood
19 children, to the parents who live nearby,
20 require child care because they work but don't
21 work for these specific employees or particular
22 employer.
23 I can tell you this will retain a
4433
1 lot of top talented women in our work force, and
2 this is something that is prized in our
3 society. We have some of the best educated
4 members of the work force anywhere in the United
5 States, and some of these women are dynamite but
6 they are strapped for child care, and that's
7 where this -- this particular bill -- amendment
8 would serve so well not only the women but the
9 economy of our state.
10 I can tell you that in
11 Westchester County, this is already popular. We
12 have several corporations that have created
13 child care centers. Indeed, last week as you
14 may know, was the Week of the Child in New York
15 State, and I paid visits to several of my child
16 care centers which are located in corporations,
17 and there are some amazing programs going, but I
18 would like to see this offered around the state,
19 not just in limited areas where there is an
20 acceptance of the importance of child care to
21 our economy, to our women and, indeed, to our
22 families.
23 So this amendment would provide a
4434
1 credit against the corporate franchise tax for
2 50 percent of the costs of planning, develop
3 ment, construction, renovation, alteration or
4 improvement of real property or personal
5 property which is used as a child care
6 facility. It would amount to $150,000 per
7 facility and to encourage private giving,
8 there's also a credit of $150,000 per taxpayer.
9 This is a wonderful incentive,
10 and we believe it will result in the
11 construction and creation of additional day care
12 centers in New York State's companies.
13 Thank you.
14 ACTING PRESIDENT KUHL: Is there
15 any other Senator wishing to speak on the
16 amendment?
17 (There was no response.)
18 Hearing none, the Secretary will
19 call the roll on the amendment.
20 (The Secretary called the roll.)
21 SENATOR PATERSON: Party vote in
22 the affirmative.
23 SENATOR BRUNO: Party vote in the
4435
1 negative.
2 ACTING PRESIDENT KUHL: Record
3 the party line votes and announce the results.
4 THE SECRETARY: Ayes 21, nays 36.
5 ACTING PRESIDENT KUHL: The
6 amendment is defeated.
7 Senator Onorato.
8 SENATOR ONORATO: Mr. President,
9 I have an amendment at the desk. I waive the
10 reading and ask for the opportunity to briefly
11 explain it.
12 ACTING PRESIDENT KUHL: There is
13 an amendment at the desk, Senator Onorato. The
14 reading of the amendment is waived, and you are
15 provided at this time with an opportunity to
16 explain the amendment.
17 SENATOR ONORATO: Mr. President,
18 this is a very, very short amendment, and I
19 didn't have the opportunity -- had I known
20 earlier that the tax bills were going to be
21 presented today, I would have asked for an
22 opportunity to present it in the Finance
23 Committee, and I'm sure that it was an oversight
4436
1 on your part, an innocent one, I'm sure. I am
2 taking this opportunity to have you rectify it
3 now.
4 My amendment would simply give a
5 tax credit to small businesses that would
6 provide health benefits to their employees. We
7 know how very, very important it is to provide
8 health benefits, and we know how expensive and
9 difficult it is for our small businesses in our
10 state to provide those benefits. It would
11 certainly be extremely beneficial to the entire
12 state, millions of working people who cannot
13 afford to pay for their health benefits, and it
14 would be a tax savings to the state of New York
15 by having people have health insurance whereby
16 not necessitating them going onto a Medicaid
17 roll, and this would encourage more employees to
18 provide this benefit. The soaring costs of
19 health insurance have prevented many New York
20 small businesses from offering such plans to
21 their employees.
22 Now, this bill would help
23 alleviate the financial burden of providing
4437
1 health insurance coverage to employees of small
2 business, relieving some of the strain imposed
3 on profit margins by rising health insurance
4 costs and consequently help to reduce the number
5 of working insured in this state.
6 Ladies and gentlemen, I urge the
7 unanimous adoption of this amendment.
8 Thank you, Mr. President.
9 ACTING PRESIDENT KUHL: Is there
10 any other Senator wishing to speak on the
11 amendment?
12 (There was no response.)
13 Hearing none, the Secretary will
14 call the roll.
15 (The Secretary called the roll.)
16 Own.
17 SENATOR PATERSON: Party vote in
18 the affirmative.
19 ACTING PRESIDENT KUHL: Record
20 the party line votes and announce the results.
21 THE SECRETARY: Ayes 21, nays 36.
22 ACTING PRESIDENT KUHL: The
23 amendment is defeated.
4438
1 Senator Leichter, you had
2 indicated a willing -- a desire, I should say,
3 to speak on the bill. You're next on the list.
4 SENATOR LEICHTER: Thank you.
5 ACTING PRESIDENT KUHL: Senator
6 Dollinger?
7 SENATOR DOLLINGER: Is this on
8 the bill itself?
9 ACTING PRESIDENT KUHL: Yes.
10 We're now on the bill.
11 SENATOR DOLLINGER: Could I be -
12 just talk as well?
13 ACTING PRESIDENT KUHL: We'll add
14 you to the list.
15 The Chair recognizes Senator
16 Leichter on the bill.
17 SENATOR LEICHTER: Mr. President,
18 on the bill. I think the first thing that we
19 have to do is really deal with this obscure and
20 strange economic analysis that Senator Bruno
21 presented us with. I hate to dispel the
22 illusion and the myth that the Senator and the
23 Republicans live under, but it's time to look at
4439
1 the figures. Let's look at the facts.
2 We're really given what I call
3 the big nonsense by the Republicans on the tax
4 cuts. The fact is that the job growth in 1995
5 in the state of New York was slower than it was
6 in 1994, the last year of the Cuomo
7 administration. The fact also is that at the
8 end of 1995, there were 174,000 fewer New
9 Yorkers working.
10 Let's take a look at the
11 unemployment statistics. The unemployment
12 statistics are -- show that -- and I just want
13 to get the exact figures, if you'll bear with me
14 a moment. The latest unemployment figures in
15 New York released last week by the state Labor
16 Department shows that unemployment increased in
17 March to 6.9 percent from 6.6 percent in
18 February. At 6.9 percent, the state's March
19 1996 unemployment rate is higher than the
20 unemployment rate a year ago and it's higher
21 than the unemployment rate of 5.7 when Governor
22 Cuomo left office. It's also almost a full one
23 percent higher than the national unemployment
4440
1 rate. So I think we've got to dispel this
2 illusion, this myth, that the Pataki tax cuts
3 have generated great economic activity in the
4 state of New York.
5 I will say that the Republicans
6 have done very well in selling a tax cut to the
7 voters, selling it on the basis, This is what's
8 necessary to stimulate the state's economy, but
9 at all the figures you look at, you see there
10 has been no economic stimulus. Fortunately, in
11 this area, we have facts and figures. We know
12 how many people work. We know what the
13 unemployment is, but there's another set of
14 figures which shows the tax cuts as such -- and
15 Senator Bruno has said he never met a tax cut he
16 didn't like, and that's absolutely correct,
17 Senator Bruno. It may be the only thing you
18 said that was correct, but the point -- but the
19 point is that some tax cuts are not helpful to
20 most New Yorkers. Some tax cuts, indeed, help a
21 very small portion of the public. Some tax cuts
22 may help your rich friends, but they don't help
23 the public, and that's why I think these figures
4441
1 are so important.
2 About a month ago, I attended a
3 joint meeting of the Finance Committees plus the
4 Budget Director where various economic experts
5 were asked to give their projections of job
6 growth in the state of New York in the coming
7 year -- this year, actually, 1996 and years in
8 the future -- and the interesting thing is that
9 every one of the analysts predicted that New
10 York State would have a slower rate of growth in
11 job creation than the rest of the nation. In
12 fact, Senator Bruno's representative showed -
13 came, and I believe that the Senate projection
14 is that we would have a job growth of .5 percent
15 less -- less than the national average. I think
16 the Director of the Budget predicted a job
17 growth of about .7 percent less than the
18 predicted national average. The economic
19 experts predicted a job growth that was even
20 smaller. So it's clear that the Pataki tax cuts
21 have done nothing in helping economic growth in
22 this state, and that has to be looked at and
23 considered when you see this tax package.
4442
1 Again, not all taxes benefit New
2 York State. Some -- I'm sorry -- all tax cuts
3 benefit New York State. It may also be that not
4 all taxes benefit New York State, and certainly
5 there are taxes that have not benefited the
6 state. There are regressive taxes. The gross
7 receipts tax is a regressive tax. It should be
8 eliminated. I put in a bill to eliminate it and
9 there are other taxes, and among the Republican
10 proposals, there's no question, there are taxes
11 that are a deterrent to growth. There are taxes
12 that are unfair.
13 Now, why can't we just eliminate
14 all these taxes? Well, we've got a problem that
15 the state also needs revenue in order to provide
16 services. If you take a look at what has
17 happened as a result of the policies that have
18 been pursued by the Pataki administration, more
19 and more of the service burden has been thrown
20 on the locality, and we have seen a significant
21 increase in the real estate tax. So when we say
22 New York State is number one among all the
23 states in taxes per capita, that is primarily
4443
1 due to the -- the local taxes.
2 As far as state taxes are
3 concerned, we're about fifteenth or
4 seventeenth. Now, maybe the Senate and the
5 Assembly can look good in shifting the burden on
6 the localities in saying, We cut taxes, but then
7 the taxes are raised on the local level. Maybe
8 somebody else would get blamed for it. We as
9 state legislators will not get blamed, but we
10 certainly haven't helped the taxpayers and
11 that's, of course, exactly what has happened,
12 particularly in the last year, as you've seen a
13 significant increase in the real estate tax.
14 In fact, over the last ten years
15 -- and some of this trend certainly started
16 under the last Governor -- we have seen the real
17 estate tax grow at a much greater rate than the
18 income tax, and I think all of you hear from
19 your constituents about how high the real estate
20 tax is. Since I represent an urban area, I
21 don't hear it quite to the same extent, but if
22 you look at the figures, you know that's the
23 case.
4444
1 So the question is one of our
2 responsibility to raise proper revenue so that
3 we can provide services and not shift burdens on
4 the localities.
5 What the Pataki tax cut really
6 did was it was an income shift. It really
7 benefited five, ten percent of the population
8 and working people, people of moderate income,
9 middle income people receive very little
10 benefit. In fact, 40 percent of the total
11 benefit of the Pataki tax cut of $6.8 billion is
12 going to go to five percent of the population.
13 Now, in the present tax proposal
14 -- tax cut proposal that we have, there is
15 similarly included items that I would just call
16 a tax shift. I said, yes, there were some items
17 like the gross receipts tax and some of the
18 other taxes which we should eliminate, and we
19 should do that when we can when we know that we
20 have sufficient revenue, or we ought to get rid
21 of those taxes by seeing bad parts of the Pataki
22 income tax cuts not going into effect. That was
23 my proposal, that we not implement the Pataki
4445
1 tax cut for people who make more than 100,000
2 and use that revenue to avoid devastating cuts.
3 You may want to modify that in some respects,
4 and if you bring in more income, then maybe you
5 could do some of these tax cuts which would be
6 in the interest, but I also want to point out
7 that there's some tax cuts proposed here like
8 the estate tax that may benefit Roy Goodman's
9 constituents. It doesn't benefit most of the
10 people in this state. The mansion tax which
11 Senator Bruno called the Cuomo tax is one that
12 has brought in a significant amount of revenue.
13 Senator Bruno says, But look how
14 that revenue declined. Well, it declined at a
15 time when the real estate market was at a
16 recession or depression out of which it hasn't
17 come fully yet and actually the receipts of that
18 tax are now increasing. If you eliminate that
19 tax, really, you're benefiting the wealthy and
20 you're not benefiting most of the people of the
21 state of New York.
22 The problem that I have with this
23 tax package is that we don't have the revenue to
4446
1 do it. It would cost $80 million this year,
2 thereby worsening our deficit and over the years
3 when fully implemented, it would lose us $1
4 billion in revenue, and as we have been here in
5 the last few years battling and struggling with
6 the budget, the reason is deficits that have
7 been driven by tax cuts that were enacted by the
8 Legislature or signed by the Governor that we
9 just did not have the revenue to do, and I
10 believe the very same thing would occur if we do
11 this particular Republican proposed bill, this
12 tax cut, which is sort of an ad hoc proposal.
13 It's not in the context of an overall financial
14 plan where we say, These are the obligations
15 that we have for the people of New York. These
16 are the services we must provide. These are the
17 burdens that we want to lift from the localities
18 and figuring that out, we need so much revenue,
19 and you can either afford certain tax cuts or
20 you may want to increase certain taxes and cut
21 other taxes. That would be a sensible, rational
22 way to proceed. The way you're proceeding, you
23 think is a good, political way to proceed.
4447
1 Well, I submit to you that I
2 think the voters are a lot smarter than that. I
3 think they're going to see that, first of all,
4 it's a charade and secondly, they will see that
5 you're just putting more of the burden, more of
6 the cost of providing services on localities,
7 and if you act in this way and push this bill
8 without knowing that you have sufficient revenue
9 to deal with the needs of the people of the
10 state of New York, you're just going to further
11 drive up the real estate tax.
12 So, Mr. President, let me say
13 while, you know, we like to have it be Christmas
14 every day and give gifts to the public and say,
15 Oh, we cut your taxes; we cut your taxes, the
16 fact is it would be an irresponsible act for us
17 to take at this time, and I will be voting in
18 the negative.
19 ACTING PRESIDENT KUHL: The Chair
20 recognizes Senator Nozzolio on the bill.
21 SENATOR NOZZOLIO: Thank you, Mr.
22 President.
23 Mr. President, my colleagues, I
4448
1 rise in support of this measure and in so doing,
2 praise the efforts of our Majority Leader,
3 Senator Joe Bruno, for bringing this important
4 measure before us today and more importantly,
5 for his recognition that this is exactly the
6 medicine that the citizens of this state need to
7 help bring the economic health of our state back
8 to good health.
9 Today is May 1st, Mr. President,
10 a day that begins the springtime. It begins a
11 new month but also connotes what has been known
12 across the country as National Tax Freedom Day.
13 That is a day when citizens across the country
14 celebrate the fact that after four months of
15 working hard, they finally have their state and
16 local taxes completed and paid for.
17 New Yorkers, unfortunately, don't
18 have the opportunity to celebrate Tax Freedom
19 Day in the beginning of the month. Our citizens
20 must work another 30 days at least before we
21 have our combined state, federal and local taxes
22 paid for.
23 That is why this measure is so
4449
1 important. Tax cuts mean less burden for our
2 citizens. They mean jobs for New Yorkers.
3 These taxes that have been placed by prior
4 administrations and prior Legislatures have
5 stunted the growth of economic enterprise in
6 this state. Taking these taxes off our backs
7 provides the citizens the type of security they
8 need to know that the trend begun here in this
9 chamber and supported by Governor Pataki of
10 reducing the burden on our citizens is
11 continuing.
12 Last year, I rose in support of
13 the tax cuts that we pushed very hard for, that
14 those tax cuts in the debate were something as
15 the debate today contested by someone on the
16 other side of the aisle. At that time, I read a
17 letter from president and chief executive
18 officer of Kodak, George Fisher, who indicated
19 that his economic decisions and the economic
20 decisions of business are based on trends. They
21 must renew trends, analyze trends and decide
22 whether the trend was in a good direction or in
23 a bad direction.
4450
1 Well, the trend in this state has
2 been in a bad direction for too long, but we
3 have reversed that trend with actions taken last
4 year and are building upon that trend of cutting
5 taxes this year in New York. It was just 13, 14
6 months ago that we begun that tax cutting
7 effort. Since that time, we've seen executives
8 like George Fisher see good trends in New York
9 and decide to keep business and enterprise in
10 New York State.
11 Last year after we initiated our
12 tax cut, Kodak decided to invest over $300
13 million in New York State, an investment that
14 couldn't be made in any state or in any nation
15 of the world because the trend was in the right
16 direction in New York. That factor led the
17 executives and directors of Kodak to make the
18 decision to invest in New York State.
19 We need to send the right signal
20 to business across New York that we will
21 continue the trend of cutting taxes. Kodak,
22 IBM, in my own district, Gould's Pumps have all
23 been seduced by other states to come to do their
4451
1 business and take our jobs to North Carolina,
2 Virginia or the Sun Belt. We have stopped that
3 trend. Governor Pataki has worked tirelessly in
4 keeping those jobs here in New York State. We
5 must continue to build upon that action.
6 Utility cuts, tax cuts, real
7 estate tax cuts, estate tax cuts, petroleum
8 business tax cuts, agricultural tax cuts,
9 trucker tax cuts, small business tax cuts and
10 sales tax cuts are what we are debating today.
11 Taken together, those tax cuts mean economic
12 revival in New York.
13 We must build upon that revival.
14 We must support what the Governor is trying to
15 do, and this is the right signal, setting the
16 right trend to our businesses across New York,
17 and that is why, Mr. President, it has my full
18 support and, again, I praise Senator Bruno for
19 bringing it to the floor this afternoon.
20 ACTING PRESIDENT KUHL: The Chair
21 recognizes Senator Farley on the bill -- Senator
22 Bruno.
23 SENATOR BRUNO: Mr. President, we
4452
1 have two members, I believe, that have to be
2 elsewhere very shortly. So could we suspend the
3 debate and allow them to vote?
4 Senator Leibell, Senator
5 Oppenheimer.
6 ACTING PRESIDENT KUHL: The
7 Secretary will call the roll -- read the last
8 section. Excuse me.
9 THE SECRETARY: Section 82.
10 SENATOR BRUNO: Senator Leichter.
11 THE SECRETARY: This act shall
12 take effect immediately.
13 ACTING PRESIDENT KUHL: Call the
14 roll.
15 (The Secretary called the roll.)
16 ACTING PRESIDENT KUHL: Senator
17 Leibell, how do you vote?
18 SENATOR LEIBELL: I vote aye.
19 ACTING PRESIDENT KUHL: Senator
20 Oppenheimer, how do you vote?
21 SENATOR OPPENHEIMER: Aye.
22 ACTING PRESIDENT KUHL: Senator
23 Leichter, how do you vote?
4453
1 SENATOR LEICHTER: Nay.
2 ACTING PRESIDENT KUHL: The roll
3 call is withdrawn. We're back on debate on the
4 bill.
5 The Chair recognizes Senator
6 Farley.
7 SENATOR FARLEY: Thank you, Mr.
8 President.
9 You know, I'm going to rise to
10 applaud the Minority. You know, I've served
11 here for a long time, and you guys are starting
12 to sound more like Republicans than anything
13 I've heard in a long time, except for the friend
14 of the American banker, my dear friend Senator
15 Leichter. You did not join in any of those tax
16 cut amendments. Senator Connor, you've got to
17 work on him, but I do applaud you.
18 I know it hurt an awful lot of us
19 over here not to vote for those amendments
20 because I thought they were -- they had a lot of
21 merit in them, but let me just say a couple
22 things about Senator Bruno's bill which I think
23 is very worthwhile.
4454
1 I can recall Senator Pataki came
2 to Schenectady when he was running for Governor,
3 he says, "One of the reasons I'm running for
4 Governor is that I don't want to have to visit
5 my children in North Carolina." That says a
6 lot, and you know what? A lot of these taxes
7 are onerous and as my colleagues have said, it
8 drives business out of this state, and that's
9 tragic, but let me just talk about one little
10 facet of this bill which I was interested in.
11 I happened to have in my district
12 a very large truck stop along -- for those of
13 you that travel west, you may have seen a truck
14 on top of a tank that they made him take down
15 and that sort of thing, but in Fultonville,
16 there's a number of truck stops that tried to
17 sell diesel fuel and a few other things, and
18 guess what? Because we are so non-competitive
19 with the diesel fuel tax, these truckers don't
20 buy any fuel in our state. They fill up in Ohio
21 or in Connecticut, wherever they're going to so
22 that they get through New York State without
23 buying any diesel fuel.
4455
1 This particular legislation that
2 you've got, Senator Bruno, amounts to about a
3 six percent saving on this tax. Guess what?
4 I'm confident -- I'm confident that we're going
5 to get more revenue as a result of this tax
6 cut. We did it with the airlines and the
7 airports last year. It made a significant
8 difference. You could speak to Senator
9 Present. You could speak to Senator Libous or
10 any Senator -- Stachowski -- that is near the
11 border and ask how they go out of state to buy
12 their fuel and how they avoid New York State in
13 buying their fuel, and incidentally, we're
14 holding captive our trucking companies, and so
15 forth, that have to live and work in this state.
16 I'm confident that with this we
17 can really make a difference and improve
18 revenues, and I think that's very, very
19 important as we're looking for all kinds of
20 revenues to do the good things that everybody in
21 this chamber wants to do.
22 So this is -- I heard it said
23 "Where are we going to find the money?" I
4456
1 think we're going to find some money by
2 stimulating the economy and stimulating
3 business, and I mean that very sincerely, and I
4 would be willing to bet a lunch to somebody that
5 should we take off the tax -- or some of this
6 tax on diesel fuel, that the trucking -
7 truckers passing through this state, just let us
8 be with -- competitive with Pennsylvania, with
9 Ohio or some of our bordering states, and I'm
10 confident they would be willing to stop here
11 instead of buying a cup of coffee, to buy a few
12 hundred gallons of diesel fuel.
13 I'd just bring that up as one
14 point. There's a lot of facets to this bill.
15 It's a good piece of legislation. It is a
16 message. It is a message, and I think that all
17 the amendments that the other side brought up is
18 an example that our message is getting through,
19 not only to you people but to the people of the
20 state of New York, and I think you're going to
21 see us turn this state around, and we're going
22 to -- and, Senator Connor, I applaud you for
23 joining in this tax cut movement. I think it's
4457
1 important. It's one we've got to continue, and
2 if we keep it up, maybe we can even convince
3 Senator Leichter and a few others to join in the
4 tax cuts and move this state forward.
5 I'm going to vote aye and thank
6 you, Mr. President.
7 ACTING PRESIDENT KUHL: The Chair
8 recognizes Senator DeFrancisco -- excuse me -
9 Senator Dollinger. Senator Dollinger was next
10 on the list.
11 SENATOR DOLLINGER: Thank you,
12 Mr. President. On this bill.
13 I appreciate Senator Farley's
14 accolade, but I guess I'm called back to an old
15 time story that I once heard about this bill,
16 and it seems it me today that we're under that
17 big top, that big top in which a little old-time
18 religion comes to bear, and how does the old
19 time religion story start off? It always starts
20 off with somebody standing up and saying, "I
21 have been a sinner. I've sinned. I've sinned.
22 I've sinned in the past," and sure enough, I
23 guess that's what I've heard today, is that
4458
1 Senator Farley, Senator Bruno and the Republican
2 Majority in this house, how did those taxes get
3 there? I don't know, Senator Connor. You've
4 been here for a long time. Senator Gold has
5 been here for a long time. I don't know how all
6 these terrible, terrible -- and they are
7 terrible because every tax is terrible -- how
8 did those terrible taxes get here?
9 It seems to me the answer is very
10 simple. There's been -- well, let me -- Senator
11 Gold, you already spoke on the bill, but I'll
12 ask you rhetorically. How did they pass the New
13 York State Senate? It seems to me there's only
14 one way it could have happened, and that is that
15 the Majority on the other side of the aisle
16 decided that these taxes were in the best
17 interests of the state of New York. That's
18 their public policy job is to vote yes or no and
19 figure out what the best interest of the state
20 is and then vote accordingly, and sure enough,
21 all of these very sinful taxes, all of these
22 things that we're now so sorry for are all here
23 because the other side of the aisle put them
4459
1 here, and so the revival starts with someone
2 saying, "I've sinned. I've sinned. I've
3 sinned. I want to be forgiven," and that's the
4 message today, is that the sinners now want to
5 go back and change all the sins and seek
6 repentance for all their sins, so that all these
7 terrible things -- repeal -- they'll repeal
8 their sins and they'll atone for their sins, but
9 it seems to me that the notion is that under
10 this big tent, that somehow all the sinners have
11 to be forgiven.
12 Well, I would suggest if we look
13 around that the way the Democrats have fashioned
14 forgiveness today is a better form of
15 forgiveness. I'm really sorry Senator Nozzolio
16 left because he talked about the biggest
17 employer in upstate New York, Eastman Kodak
18 Company, and I dare say -- I haven't run this
19 out for Eastman Kodak Company, but I dare say
20 one thing. The proposal from the Majority to
21 reduce taxes in this tax package will have a
22 substantially smaller impact on Eastman Kodak
23 Company than the tax package put together by the
4460
1 Democrats. Why?
2 Look through the taxes that the
3 Majority proposal wants to reduce. The gross
4 receipts tax. Great idea. It will affect
5 Eastman Kodak Company, but the power side won't
6 affect Eastman Kodak Company. They generate
7 their own power. They don't pay gross receipts
8 taxes because they generate their own. The real
9 estate gains tax, minimal effect, probably no
10 effect on Eastman Kodak Company at all. The
11 estate tax, that won't affect Eastman Kodak
12 Company. It won't reduce Eastman Kodak
13 Company's taxes. The petroleum business tax,
14 might be some minor influence on Eastman Kodak
15 Company, the largest employer in this state, the
16 company that I want to have stay in this state
17 since it employs almost 19,000 in my district.
18 A great idea to keep them there. Reducing
19 petroleum business tax won't really affect
20 that. May be a minor effect. What about the
21 agricultural circuit breaker? It won't help
22 Eastman Kodak Company. What about the corporate
23 utility tax? It won't help Eastman Kodak
4461
1 Company. The small business capitalization
2 credit, it won't help Eastman Kodak Company.
3 The container taxes won't help Eastman Kodak
4 Company. The alcoholic beverage tax won't help
5 Eastman Kodak Company. The sales tax won't help
6 Eastman Kodak Company, but you know what will
7 help Eastman Kodak Company?
8 Senator Connor, the amendment
9 that you proposed that will provide tax credits
10 for retraining, Eastman Kodak Company is
11 constantly retraining thousands of employees in
12 the Rochester community. They would immediately
13 begin to draw down that tax credit, immediate
14 tax credit and relief for Eastman Kodak
15 Company. George Fisher would want it.
16 What about the tax credit for the
17 reduction in utility taxes that we proposed,
18 that I proposed? They're the manufacturer.
19 They'd get the benefit of the telecommunications
20 reduction right off the bat.
21 What about the tax circuit
22 breaker for real property taxes? Don't kid
23 yourself. If we dropped the taxes for Eastman
4462
1 Kodak Company in their state taxes, they'd pay
2 more real estate taxes. The circuit breaker
3 would reduce their real estate property tax
4 burden. They're the biggest real property
5 taxpayer in Monroe County. They deserve a
6 break.
7 What about the child care credit
8 for employee -- for employees? People at
9 Eastman Kodak Company could put that to work
10 right away.
11 So when you ask me, how do we
12 provide tax credits for Joe and Alice sitting in
13 Rochester, New York, a middle class family; how
14 do we take those income tax reductions for
15 them? We use a tax philosophy on this side of
16 the aisle that helps two people. It helps the
17 business by reducing their taxes, and it helps
18 the individual by obtaining retraining, by
19 obtaining child care, by obtaining things that
20 they need to be more productive workers. You
21 want to help Eastman Kodak Company, don't vote
22 for this plan. Vote for the amendments that you
23 had a chance to vote for an hour ago.
4463
1 Lastly, this event reminds me of
2 a scene from a cartoon film that I watched as a
3 little kid. Remember the scene in Dumbo when
4 Dumbo is up on the top of the tower, and he's
5 told by the little commander in his hat to jump
6 off the scaffold and he's going to land in the
7 big tub of water? Well, it seems to me what you
8 have is you have the elephant up there
9 responsible for all of these taxes, and you have
10 Senator Bruno in his cap saying "Jump, Dumbo,
11 jump", and Dumbo jumps and he starts falling
12 fast, and Senator Bruno, the rest of your
13 colleagues are over there, "Okay, guys. Flap
14 those ears, Dumbo. Don't crash, Dumbo. Keep
15 flapping. Start flying", and sure enough just
16 as he's about to hit the ground, just as the tax
17 impact of all of those taxes imposed by
18 Republicans are about to come to roost in this
19 state and cost us jobs and cost us opportunity,
20 Senator Bruno is able to convince Dumbo to
21 spread his little ears, and sure enough he goes
22 flying around the Senate, and everyone in this
23 state says, "What a fantasy. Dumbo is flying.
4464
1 The Republicans are flying around the room
2 claiming that they're out to cut taxes which are
3 there because they put them there in the first
4 place."
5 It's all fantasy. It's all
6 theatre, and it seems to me that's what this is
7 all about. When we get to a budget, we'll then
8 evaluate whether Dumbo is really flying or not.
9 We'll then find out whether the taxes are
10 repealed or whether they're kept there by the
11 Majority in this house.
12 It seems to me Senator Bruno said
13 that there's something wrong with this format.
14 I don't want to deal with these taxes in this
15 format. I'll tell you what. There's something
16 wrong with this picture. It's that old-time
17 religion of trickle down economics that has
18 frankly become flush down economics where we
19 flush our problems on to other levels of
20 government or we penalize the poor. We penalize
21 the misfortunate by taking away programs that
22 they need. It's all fantasy. It's all
23 wonderful theatre, but when you step back and
4465
1 you stop looking at the cartoon show, you
2 realize that we've got a real problem, a real
3 budget and a real state we have to run.
4 ACTING PRESIDENT KUHL: Senator
5 DeFrancisco.
6 SENATOR DeFRANCISCO: You know,
7 some of the people in this chamber can tell
8 stories and tell about cartoon characters and be
9 cute to the nth degree, but I think what we have
10 here is a very serious issue.
11 The serious issue is whether
12 there are going to be any jobs and whether
13 there's going to be any opportunity for the next
14 generation in the state of New York. For there
15 to be opportunity, no matter what happened in
16 the past which obviously was wrong because we're
17 in a bad economic climate right now, has to be
18 changed, and whoever was responsible for that,
19 so be it. The fact of the matter is we have to
20 take some bold steps so that my children and
21 your children and the generations to come are
22 going to have opportunity, the same opportunity
23 that we had in this state.
4466
1 Last year, we were criticized by
2 many who wanted to spend the money rather than
3 give it back to the taxpayers in the way of
4 income tax, that it won't work. The world was
5 going to come to an end. Well, the world didn't
6 come to an end. We actually ended this year
7 with a surplus.
8 These tax proposals here to cut
9 further taxes cut across the board. Utility
10 taxes, real estate tax cuts, sales tax cuts.
11 The theory is send a message that we are
12 changing the economic rules in the state of New
13 York so it's good to stay here, and it's good to
14 get jobs created here, and it's a good situation
15 for the future generations. That's what this is
16 all about, and it's extremely important that we
17 all support this.
18 I know there have been other
19 proposals made today, many of which are
20 proposals made off of bills that were sponsored
21 by members of this side of the house. They all
22 have merit. They all have merit, but today we
23 have these proposals before us. We should all
4467
1 support it. We should not criticize for who
2 created the problem. We should all join in the
3 solution, and this is part of the solution. We
4 have to pass these tax cuts. We owe it to our
5 children and the children of their children.
6 ACTING PRESIDENT KUHL: Senator
7 Libous on the bill.
8 SENATOR LIBOUS: Thank you, Mr.
9 President.
10 I want to rise and support
11 Senator Bruno's efforts in moving this state
12 forward, because that's what I believe is the
13 responsibility of this house and the membership
14 of this house, and I'm always amused when I hear
15 my colleagues on the other side of the aisle
16 talk about the past, and that's the problem with
17 this state, ladies and gentlemen. You have to
18 leave the past and move forward. You can't
19 dwell on what happened yesterday. There's an
20 expression we use upstate that says once the
21 bell is rung, you can't unring the bell. So you
22 have to move forward, and it's obvious that the
23 business climate in this state is broken, and if
4468
1 it's broken, you have to fix it, and that's what
2 this legislation is intended to do, is to fix
3 the business climate of this state.
4 Now, I'm sure that each one of
5 you -- and I would never challenge or question
6 each one's responsibility as an elected official
7 in the time that you spend with your
8 constituents, but I'll share some stories that
9 -- the time I've spent with my constituents.
10 You know, I live in the Southern
11 Tier which is a border community. We border the
12 state of Pennsylvania, and I have spent an awful
13 lot of time the last couple of years going to
14 businesses in all sizes, businesses that
15 employee 2,000 people or businesses that employ
16 three people, and as I knock on their door and I
17 talk to them about New York State and what can I
18 do to help you as a representative in the New
19 York State Senate, without question, every one
20 of them says, "Get the government off my back.
21 Lower my taxes", and it's not just one tax -
22 and, you know, you talk about different types of
23 taxes. They just want to see some movement
4469
1 because they tell us for the last 20 years,
2 there's been no movement.
3 You talk about the truckers and
4 people filling up with fuel and doing different
5 things. We live on the boarder. They go to
6 Pennsylvania. I have gas station owners coming
7 to me telling me that people are filling up on
8 the other side of the border, people who live in
9 New York State because it's cheaper, because the
10 taxes are cheaper.
11 I have business people telling me
12 that we can't continue. We have to go to New
13 York -- we have to go to Pennsylvania from New
14 York State. I have a number of companies that
15 are going to move 20 miles away just to cross
16 the border because the tax structure hasn't
17 changed.
18 And, you know, last year we
19 passed for the first time an income tax cut, and
20 many people said that, you know, that income tax
21 cut is just going to cost more money and you're
22 going to have deficits, and you're not going to
23 be able to fund all these wonderful programs
4470
1 that people want.
2 Let me tell you a little story.
3 A company called Hadco expanded in our
4 community. They expanded 40 -- 400 new jobs,
5 and I met with the president of that company,
6 and it was between New York State and New
7 Hampshire, and he said there's two reasons why
8 we chose New York State. Reason number one was
9 the fact that you folks have a great work force
10 here in the Southern Tier and, unfortunately, we
11 had a great work force because most of our
12 companies like IBM and others had down-sized
13 because they left the state. So we had a
14 tremendous work force, but he said the second
15 reason that we decided to come here is because
16 for the first time you're addressing your tax
17 problem and that for the first time, New York
18 State voted to reduce the personal income tax.
19 He says, Because you see, my workers in New
20 Hampshire go home with nine percent more of
21 their paycheck in their pocket before they even
22 come to work. That's very important. That's
23 why we chose New York State.
4471
1 You know, that personal income
2 tax just alone in my community this year will
3 put over $18 million back into the community.
4 So, you see, you can talk about what happened in
5 the past, and if you want to live in the past -
6 and you can talk about elephants -- I happen to
7 like elephants. I have a tie with elephants on
8 today -- I'd be willing to jump -- to jump with
9 my Leader today because he's jumping into the
10 future. He wants to change the direction of
11 this state. He wants businesses to prosper and
12 to stay in this state. He wants businesses not
13 to leave. He wants them to grow, and when
14 businesses grow, they pay taxes, and there are
15 people who are working to pay taxes, and then
16 through those tax dollars, we could supply even
17 more programs. So you see when your economy
18 grows, the programs will grow, and that's what
19 this tax cut bill does.
20 So I ask my colleagues on the
21 other side of the aisle to join us, and maybe if
22 you don't believe us, I'll ask you to do one
23 thing. Go home -- and I don't care where you
4472
1 live. I don't care if it's Manhattan or upstate
2 New York -- spend the next week and talk to
3 business owners. Look them in the eye. Don't
4 believe us. Look them in the eye, and you ask
5 them -- you ask them what they think today about
6 the present situation of the tax structure in
7 New York State and what should you do as a
8 legislator, and they'll tell you. They'll tell
9 you to support this piece of legislation.
10 ACTING PRESIDENT KUHL: The Chair
11 recognizes Senator Maziarz.
12 SENATOR MAZIARZ: Thank you very
13 much, Mr. President.
14 Just very briefly. I want to
15 rise also in support of this package. Earlier,
16 Senator Nozzolio and Senator Dollinger commented
17 on Kodak generating their own power. The reason
18 that firms, large firms like Kodak, generate
19 their own power in this state and firms like
20 Delco/Harrison Thermal Systems, General Motors
21 employ over about 7,000 people in Niagara County
22 who also generate its own power and Mike Burns,
23 the chairman of -- or the chief executive
4473
1 officer of Harrison/Delco Thermal Systems told
2 me that Harrison had to build its own generating
3 -- power generating station in New York State
4 because they could no longer afford to pay the
5 gross receipts tax for power. 30 percent of
6 their power bill was taxes that had absolutely
7 nothing do with the delivery of power to their
8 particular plant.
9 I think that this is a good
10 bill. I have a small firm, not in my district,
11 Exolon Corporation employs 130 people, and they
12 are going to be moving out of New York State,
13 moving directly across the border into the
14 Province of Ontario because of the cost of power
15 within the state of New York.
16 Senator Bruno, this is absolutely
17 the right direction to take this state in, and I
18 congratulate you and Governor Pataki. I think
19 the most onerous tax that we have on -- both on
20 commercial and residential entities in this
21 state is the gross receipts tax.
22 Thank you, Mr. President.
23 ACTING PRESIDENT KUHL: The Chair
4474
1 recognizes Senator Connor to close for the
2 Minority.
3 SENATOR CONNOR: Thank you, Mr.
4 President.
5 You know, I'm glad I was here
6 when Senator Libous spoke. I couldn't believe
7 my ears. He wants corporations to make more
8 profits so they can pay more taxes and employ
9 people who pay taxes so we can have more
10 government programs. If that isn't the old
11 thinking, Mr. President, I don't know what is.
12 Let me tell you where the new
13 Democrats are. We're not for government
14 programs. We don't want more programs. We want
15 government to recognize basic values of New
16 Yorkers and Americans and put our money behind
17 those values, provide opportunity for our
18 children. That means education. Provide job
19 security for our workers. That means job
20 training, retraining, tax credits to businesses
21 to retrain workers. Meet our responsibilities
22 to provide for the elderly, the retired and
23 those who absolutely can't work. Encourage our
4475
1 citizens' own responsibilities by providing
2 jobs, jobs, jobs so we don't have any welfare.
3 We have people working and we don't have people
4 underemployed. We have people with good paying
5 jobs with benefits and meet our responsibilities
6 to uphold the tradition in New York to have an
7 accountable, responsible, fiscally prudent
8 government.
9 To think that this is all about
10 somehow pumping up -- pumping up the economy,
11 priming the pump so more money can come flooding
12 out and we can have more programs as Senator
13 Libous put it? That's just not what it's
14 about. We should only have what we need to meet
15 the basic values we ought to stand up for, of
16 opportunity, jobs and responsibility toward the
17 elderly.
18 Now, Mr. President, the Majority,
19 with some kind words, has unanimously seen fit
20 to reject the tax proposals put forth by
21 Minority members and, as Senator Dollinger
22 pointed out, they would be better for some of
23 the largest businesses in our state, but we put
4476
1 them forth because the object -- the object here
2 is not just to get money to businesses. The
3 object is to help businesses so that the middle
4 class and working people in the state of New
5 York are the beneficiaries, beneficiaries
6 because they have the job skills and they have
7 the jobs to do the job. That's the object.
8 The object is not as Senator
9 Libous said, so we can have down the road more
10 income for government programs. That's the
11 Rockefeller years thinking, the Republican years
12 of raise taxes, raise taxes, and I know most of
13 you have gotten religion and gotten away from
14 that. It's a new Republican Party over there,
15 but I want to also say that while that's not the
16 object, the object just isn't to make the rich
17 richer for the sake of making the rich richer;
18 the object is to provide the most immediate
19 priority tax relief to those businesses that
20 will employ our middle class and working people,
21 because you ask the working people in New York
22 State. You ask your constituents. Do you feel
23 safer in your job? Are you really making more
4477
1 money; and the answer is going to be no. Real
2 income is down. Every statistic shows that.
3 Part-time jobs are not the goal here. Part-time
4 jobs with no benefits are not the goal here. So
5 our tax proposals -- and many of the proposals
6 in your bill, quite acceptable. They uphold the
7 values we stand for. Some don't. That brought
8 up the question, do I, the Democratic Leader, do
9 my colleagues -- my colleagues, some will and
10 some won't vote for this -- how do I vote for
11 this?
12 Well, let me tell you what I do
13 and don't like about your bill. You talked
14 about the utility tax, gradually bring down the
15 gross receipts tax. Not a bad idea. I can
16 certainly live with that and it benefits New
17 Yorkers, but not as good an idea as Senator
18 Dollinger's proposal, to eliminate it for
19 manufacturers. Why is our idea better? Because
20 it more directly makes that connection with
21 creating jobs. We need manufacturing jobs in
22 this state. We don't need more fast food
23 restaurant, part-time, no benefit jobs. That's
4478
1 not a success.
2 The real estate gains tax, the
3 mansion tax. I have no problem some day with
4 doing away with that. I really don't. No
5 problem with that down the road, but I really
6 object to this when, as a priority we won't
7 accept the kind of property tax circuit breaker
8 that benefits the average New York family in
9 their home. Our priorities are just different.
10 There's a difference between the
11 two parties here, Mr. President. The Republican
12 Party in this house wants to do away with the
13 mansion tax. The Democrats want to protect the
14 average New Yorker's property taxes when they're
15 home. That is a philosophical difference. I
16 don't like that feature of this bill, not until
17 we do the other.
18 The estate tax. Similarly, any
19 proposal from the Republican Party about estate
20 taxes, frankly, arouses my suspicious after I
21 saw those extremist Republicans in control of
22 the Congress refuse to go after the tax money of
23 those billionaire -- billionaire Americans who
4479
1 moved offshore and contribute nothing. Why
2 protect them? What do they do for our people?
3 The petroleum business tax, I
4 think that's a good proposal. Agricultural
5 circuit breaker, this probably -- the
6 agricultural circuit breaker probably tips the
7 scale for me because I'm for it. I think it's a
8 good program. It's one all Democrats are
9 certainly for. We are an agricultural state,
10 and that's a priority industry. When all the
11 other industries fled, we still have
12 agriculture, not as big as it used to be,
13 regrettably, not as many farms as we used to
14 have, but it's an important industry, and this
15 tips the scale for me because while I don't like
16 some features of your bill, since that's in
17 there, I'm going to vote for this bill. I wish
18 we would have done the circuit breaker for the
19 average homeowner too.
20 I don't understand the container
21 and beer tax repeal. It's not a bad idea, but
22 not my priority, not our priority. Something we
23 would like to do, but I would put that about
4480
1 number fifteenth on the list. I'd certainly put
2 the average homeowner in New York State ahead of
3 that beer and beverage container industry. I'd
4 certainly put job retraining tax credits for our
5 corporations that employ New Yorkers ahead of
6 that, and I understand the border problem with
7 taxes, but why focus on the alcoholic beverage
8 tax? We have a problem all over our borders. I
9 represented part of Staten Island for years.
10 Heck, everybody there, the merchants were
11 getting killed. Everybody was shopping in New
12 Jersey and years ago, I remember speaking to the
13 Chamber of Commerce in Hoosick Falls, Senator
14 Bruno, many years ago and their number one
15 complaint was sales taxes, you know?
16 Why aren't we dealing with things
17 like sales taxes on clothing and other things
18 before -- before we worry about the alcoholic
19 beverage tax or, with all due respect, Senator
20 Bruno, an employer in your district that pays -
21 and I admit, some macabre, weirdo tax on
22 promotional materials that probably never should
23 have been there before. I don't know when that
4481
1 came in. Was that probably one of those 1990
2 taxes that Senator Bruno and all the Democrats
3 voted against, while the rest of the Republicans
4 voted for it. I agree it shouldn't be there,
5 but I think before we take care of that
6 employer, that one business, we ought to focus
7 on some of the other people that absolutely need
8 relief.
9 And so, Mr. President, on
10 balance, particularly because of the
11 agricultural circuit tax breaker, because of
12 some of the other things in this bill that are
13 good -- it may not go far enough, but they're
14 good -- and despite the fact -- and let me say,
15 particularly because today is an exercise -- is
16 an exercise in political discourse, it is the
17 revealing of priorities by both parties, it is
18 the statement of whom we're for by both parties
19 and it's nothing for. This is not part of the
20 real budget. Make no mistake about it. It's
21 not part of the real budget. If, as a part of a
22 final budget, we were to be -- I were to be
23 confronted with a tax bill like this that
4482
1 ignored the kind of priorities the Democrats
2 have set forth in our amendments, I would then
3 vote against it, but today being a good feeling
4 what's your tax policy rhetoric day, I'll join
5 in what I heard, I guess from Senator Bruno. He
6 never met a tax cut he didn't like, and I'll
7 vote for this, but only because of those couple
8 things like the agricultural circuit breaker
9 that I think are very, very essential to a
10 significant portion of New Yorkers, but in the
11 final analysis, unless we -- if there were to be
12 a -- tax cut provisions, unless it addressed
13 that property tax, that property tax burden that
14 are falling on our middle class and working
15 families and unless it addressed in a real
16 significant, direct way, employment, such as tax
17 credits for job retraining, then I wouldn't vote
18 for the final product.
19 ACTING PRESIDENT KUHL: Senator
20 Bruno to close for the Majority.
21 SENATOR BRUNO: Thank you, Mr.
22 President.
23 I want to congratulate Senator
4483
1 Connor in his wisdom for having indicated that
2 he will support this package. I also want to
3 thank the Minority in this house for this debate
4 and for the amendments that they brought
5 forward. Many of them are very constructive,
6 very worthwhile, and they are tax cuts. They
7 are incentives to create jobs, and they will be
8 part of the negotiations that take place as we
9 go forward to do a budget.
10 I'm a little bit disappointed
11 that you didn't have the same fervor during the
12 Cuomo years for tax cuts. I'm a little
13 disappointed in that, because during those 12
14 years, this state -- the Empire State saw an
15 exodus of jobs and it's a fact -- and I don't
16 say this in any political way. It is a fact
17 this state saw 35 to 40 percent of the jobs lost
18 in the country come from New York during the
19 Cuomo years. Better late than never.
20 So we are here together going
21 forward, doing some good work for the people of
22 this state. Many of the proposals that you
23 brought forth today are, as you know, proposals
4484
1 that Republican members have in bill form, and I
2 don't think it's any coincidence that you took
3 those proposals and put them in with your
4 amendments, and that's just good judgment and
5 good thinking.
6 So, again, I applaud you for
7 that. I will recommend that you just stay loose
8 and stay flexible because next week you will
9 have another opportunity to vote in favor of
10 some of the very things that you're talking
11 about that will be in our property tax cut
12 package, coupled with school aid, to keep the
13 lid on property taxes. That will make you happy
14 and this conference happy and, most important,
15 the people of this state happy.
16 We keep hearing, Mr. President, a
17 reference to the mansion tax that we in this
18 state call the Cuomo tax. Senator Connor, call
19 it whatever you want, but that's one that you
20 took issue with. I will ask you to study -
21 just review the study that's done by the Wharton
22 Group -- Financial Group and Cornell that
23 indicates when that tax is rescinded -- and it
4485
1 will be -- it will drive $200 million of new
2 revenue into New York City and create 7,000
3 jobs, not for wealthy people but for laboring
4 people.
5 Senator Connor, your colleagues,
6 look at that one in particular. Don't take
7 issue with it. Don't call it a mansion tax.
8 Call it an economic development package because
9 that's what it is. It never should have been
10 there. We've got to get it off. You need -
11 you need the 200 million in revenue to help the
12 people in your district and in New York City.
13 So if you support any of these
14 proposals, support that one because you help
15 your own constituents more than you help the
16 people in upstate New York. In my district, I
17 don't know of a property that's worth over $1
18 million, a commercial property in Troy or in
19 Saratoga. So it doesn't help me, but it helps
20 the people of this state, and that's why it's
21 there.
22 Mr. President, I'm going to
23 conclude my remarks. This has been very
4486
1 healthy. I think we've had a bipartisan effort
2 here to talk about what's best for the people of
3 this state. I think that is just good
4 government.
5 I'm going to conclude by
6 reminding people that we discussed and debated
7 tax cuts last year, and the question was would
8 they become part of a final budget, or was it
9 just rhetoric? It wasn't rhetoric. It became
10 part of the budget.
11 This year, tax cuts will be part
12 of a final budget. Why? Because you can talk
13 about trickle down. I talk about building up.
14 Tax cuts build up. They don't trickle down.
15 They build up. The $1 billion tax cut that took
16 place last year -- and listen to this -
17 increased the revenues to this state by $600
18 million. That's what Senator Libous is talking
19 about. That 600 million in increased revenue is
20 going to pay to restore school aid in New York
21 City, upstate, on the Island, keep the lid on
22 property taxes. It's going to restore some of
23 the Medicaid cuts that are painful. It's going
4487
1 to restore some of the cuts in higher ed'.
2 How do we get this money? By
3 increasing the revenues in this state. How do
4 we increase the revenues? By making this state
5 more competitive with tax cuts. The biggest tax
6 cuts in all of the United States last year were
7 in New York. 22 percent of all the income tax
8 cuts in the United States were in New York. 42
9 percent of all the business tax cuts in the
10 United States were in New York. As a
11 consequence, with the leadership of Governor
12 George Pataki picking up from the previous
13 administration, this state is moving forward.
14 So thank you for joining us in
15 this effort. Thank you for your kind remarks.
16 Thank you on behalf of the people of this state
17 for helping to continue to stimulate the economy
18 and create jobs. All of us benefit.
19 Thank you, Mr. President.
20 ACTING PRESIDENT KUHL: The
21 Secretary will read the last section.
22 THE SECRETARY: Section 82. This
23 act shall take effect immediately.
4488
1 ACTING PRESIDENT KUHL: Call the
2 roll.
3 (The Secretary called the roll.)
4 ACTING PRESIDENT KUHL: Senator
5 Abate to explain her vote.
6 SENATOR ABATE: Yes. I think
7 this was a very fruitful debate, and I believe
8 it's a beginning debate, and I will be voting
9 against this because I still believe this is an
10 exercise, and that until we have an opportunity
11 to look at the revenue side as well as the
12 spending side, I am not prepared to vote for an
13 additional tax cut package.
14 I would also be more inclined to
15 vote for a -- business tax cuts, and I
16 understand and I think we all agree that some of
17 the tax cuts stymie the economy, do not
18 stimulate growth. There are tax cuts that maybe
19 when they originated years ago made sense and
20 they no longer make sense today, but I would be
21 looking at a tax cut plan that represented some
22 of my priorities and not -- the package today
23 does not represent them.
4489
1 I would be looking for and others
2 of my colleagues have said a gross receipts tax
3 cut, a tax credit for child care, small
4 businesses, very important for job creation and
5 job retention. I think tax credits should be
6 tied. Businesses -- we want to create
7 incentives so more businesses stay and are
8 created in New York State. We want to see
9 something that actually has a positive impact on
10 our economy, and lastly, a circuit breaker tax
11 cut to reduce the property taxes throughout New
12 York State.
13 When we can look at that in terms
14 of the revenue and spending side and include
15 what I consider should be some of the priorities
16 to New York State, I might then be more amenable
17 to voting for a tax cut package for business.
18 Under these circumstances today,
19 I must vote no.
20 ACTING PRESIDENT KUHL: Senator
21 Abate will be recorded in the negative.
22 Senator Waldon to explain his
23 vote.
4490
1 SENATOR WALDON: Thank you very
2 much, Mr. President, my colleagues.
3 Some of you know that I grew up
4 in Brooklyn, and those who used to go around
5 Fulton street, Flatbush Extension used to see
6 the three-card monte people working, and no
7 matter what you did -- and at that time my
8 vision was sometimes called 20/10 it was so
9 good. No matter what you did, those guys were
10 so fast that, if you bet your money, you'd lose
11 it. They were great, but they were not as great
12 as some of the things I've seen here in Albany.
13 We have quintessential flimflam artists
14 practicing their art in Albany, and let me tell
15 you what I mean.
16 We have a bill that says this
17 will cut taxes. I'm dutybound by the 300,000
18 people in the 10th Senatorial District to be
19 amenable to their needs to see that their taxes
20 are reduced, but when I looked quickly between
21 the lines of this proposal, I did not see that
22 they would get the kind of relief promised by
23 the rhetoric on the floor.
4491
1 There are no mansions in St.
2 Albans. There are no mansions in Far Rockaway.
3 There are no mansions in Cambria Heights or
4 Queens Village or Rosedale or Laurelton,
5 Springfield Gardens or in Rochdale Village which
6 is a huge Mitchell-Lama. There are no
7 mansions. There are no millionaires that I can
8 account for, to my knowledge, who actually live
9 in the district. Some people are doing well. A
10 lot are professionals, but this tax bill will
11 not benefit those people who I represent. We
12 are creating, in my belief, similar to what our
13 former governor said in San Francisco when I
14 attended the Democratic National Convention,
15 we're creating those who are up on the hill and
16 those who are in the valley with the policies
17 that we're instituting here in this legislative
18 body, the Senate of the state of New York, and
19 because of the inequity of what we're doing,
20 because of the unfairness, because we are taking
21 care of those who are best able to take care of
22 themselves and not take care of those least able
23 to take care of themselves, this particular
4492
1 proposal, I cannot support it. We cannot feed
2 the rich with the poor.
3 I vote in the no.
4 ACTING PRESIDENT KUHL: Senator
5 Waldon will be recorded in the negative.
6 Senator Marchi to explain his
7 vote.
8 SENATOR MARCHI: Mr. President, I
9 think it's certainly appropriate that we notice
10 what Senator Bruno has done here today. I have
11 not seen in many, many years, I would say
12 decades, a debate of this nature where every
13 single person who spoke to this measure spoke to
14 it in terms that were affirmative, positive,
15 constructive, and when the vote was taken, it
16 ushered in, I think, the premises that have been
17 -- that was created last year and continues the
18 upward movement of this state.
19 What Senator Waldon has said is
20 not a discordant note under ancient Jewish law.
21 A unanimous verdict was never considered unless
22 there was one dissent, because there was always
23 the fear that maybe something had been missed.
4493
1 The fact that he spoke of other concerns is a
2 balancing factor, a seasoning flavor that you
3 have imparted, Senator, but it is something that
4 we can all observe, I think with a great deal of
5 satisfaction because the -- if the statistical
6 prologue is accurate, it promises further growth
7 and development so that the concerns that you
8 express so eloquently, Senator Waldon, will be
9 reflected, and that is the spirit that
10 characterizes this Senate today.
11 I vote aye.
12 ACTING PRESIDENT KUHL: Senator
13 Marchi will be recorded in the affirmative.
14 Announce the results.
15 THE SECRETARY: Those recorded in
16 the negative on Calendar Number 910 are Senators
17 Abate, Babbush, Leichter, Montgomery, Santiago,
18 Seabrook, Smith, Stavisky and Waldon. Ayes 51
19 -- also Senator Markowitz. Ayes 50, nays 10.
20 ACTING PRESIDENT KUHL: The bill
21 is passed.
22 Senator Mendez, you wanted to
23 request permission to be recorded in the
4494
1 negative on a bill before.
2 SENATOR MENDEZ: 642.
3 ACTING PRESIDENT KUHL: 642.
4 SENATOR MENDEZ: Thank you.
5 ACTING PRESIDENT KUHL: Without
6 objection.
7 (There was no response.)
8 Hearing no objection, Senator
9 Mendez will be recorded in the negative on
10 Calendar Number 642.
11 Senator Bruno.
12 SENATOR BRUNO: Mr. President,
13 can we at this time take up Calendar Number
14 909.
15 ACTING PRESIDENT KUHL: The
16 Secretary will read.
17 THE SECRETARY: Calendar Number
18 909, by the Senate Committee on Rules, Senate
19 Print Number 7486, an act to amend Chapter 261
20 of the Laws of 1993, relating to the Nassau
21 County Accelerated Adjudication Program.
22 ACTING PRESIDENT KUHL: There is
23 a message of necessity at the desk. The motion
4495
1 is to accept the message of necessity. All
2 those in favor signify by saying aye.
3 (Response of "Aye".)
4 Opposed, nay.
5 (There was no response.)
6 The message is accepted.
7 The Secretary will read the last
8 section.
9 THE SECRETARY: Section 3. This
10 act shall take effect immediately.
11 ACTING PRESIDENT KUHL: Call the
12 roll.
13 (The Secretary called the roll.)
14 THE SECRETARY: Ayes 60.
15 ACTING PRESIDENT KUHL: The bill
16 is passed.
17 SENATOR LARKIN: Can we take up
18 Calendar Number 247 now, please.
19 ACTING PRESIDENT KUHL: The
20 Secretary will read Calendar Number 257.
21 THE SECRETARY: Calendar Number
22 257, by Senator Nozzolio, Senate Print 5951-A,
23 an act to amend the Penal Law, the Criminal
4496
1 Procedure Law and the Correction Law.
2 SENATOR PATERSON: Explanation.
3 ACTING PRESIDENT KUHL: Senator
4 Larkin.
5 SENATOR LARKIN: Is there a
6 message at the desk?
7 ACTING PRESIDENT KUHL: There is
8 a message at the desk. The motion is to accept
9 the message of necessity on Calendar Number
10 257. All those in favor signify by saying aye.
11 (Response of "Aye".)
12 Opposed, nay.
13 (There was no response.)
14 The message is accepted.
15 Senator Nozzolio, an explanation
16 has been asked for of Calendar Number 257 by the
17 Acting Minority Leader, Senator Paterson.
18 SENATOR NOZZOLIO: Thank you, Mr.
19 President.
20 My colleagues, I rise with great
21 happiness that this measure has come this far.
22 It's a bill that will enhance the establishment
23 of enhanced Class E felony status for those
4497
1 inmates who participate in a very heinous
2 practice of using their bodily fluids as
3 weapons.
4 It's a historic day for those
5 correction officers, parole officers and
6 correction employees in the state. It's been a
7 long, hard fight. For eight years, I have been
8 proposing this legislation, proposing it first
9 at the behest of a constituent who came to me
10 after she as a nurse in a correctional facility
11 received -- was a recipient of this very, very
12 dangerous and heinous behavior, but we're here
13 today to make this crime just that, a Class E
14 felony. Without the support of Governor Pataki,
15 this certainly would not have happened. Paul
16 Schectman is chairman who is commissioner of the
17 Department of -- the Division of Criminal
18 Justice Services helped us push this measure
19 along.
20 What this bill does is tell the
21 inmates of this state that if they are going to
22 use their bodily fluids as weapons, if they are
23 going to participate in what has heretofore been
4498
1 a degrading behavior after the passage of this
2 legislation will become a felony.
3 It is difficult to work in our
4 correctional facilities under the best of times,
5 but under this extremely growing -
6 unfortunately, in the last three years alone,
7 there were over 600 documented cases of inmates
8 herding their human waste and other bodily
9 fluids on correctional employees.
10 My heartfelt thanks to those who
11 work in our correctional facilities and
12 particularly thank those representatives, the
13 men and women of Council 82 who have worked with
14 us from the outset to raise the public awareness
15 of this issue in assisting us in the drafting of
16 this monumental legislation.
17 It's absolutely deplorable when
18 men and women risk their lives every day to
19 protect the public from dangerous criminals and
20 have to endure this abuse with virtually no
21 legal protection. This action today provides
22 the legal protection necessary, and I want to
23 thank Council 82 for helping us, along with
4499
1 Governor Pataki and Commissioner Schectman in
2 moving this legislation along.
3 Personally, I would also like to
4 thank Senator Abate, our ranking member of the
5 Crime and Corrections Committee, who personally
6 has supported this measure and has been involved
7 as an advisor to me on correctional issues
8 because of her experience in those matters.
9 Inside a correctional facility is
10 one of the most dangerous, rigorous and trying
11 places to work anywhere. I want to thank all of
12 those who were involved to make this legislation
13 possible, to make that workplace a safer place
14 to work for New Yorkers.
15 Thank you, Mr. President.
16 ACTING PRESIDENT KUHL: The
17 Secretary will read the last section.
18 THE SECRETARY: Section 5. This
19 act shall take effect in 30 days.
20 ACTING PRESIDENT KUHL: Call the
21 roll.
22 (The Secretary called the roll.)
23 THE SECRETARY: Ayes 60.
4500
1 ACTING PRESIDENT KUHL: The bill
2 is passed.
3 Senator Larkin.
4 SENATOR LARKIN: Mr. President, I
5 believe we have four privileged resolutions at
6 the desk. Would you have the titles read and
7 let's move their adoption.
8 ACTING PRESIDENT KUHL: The
9 Secretary will read the titles to the four
10 privileged resolutions at the desk.
11 THE SECRETARY: By Senator Alesi,
12 Legislative Resolution commending Raymond Emma,
13 retiring president upon the occasion of his
14 designation for special honor at a testimonial
15 banquet of the Monroe Volunteer Firemen's
16 Association, Incorporated, May 4, 1996.
17 By Senator Alesi, Legislative
18 Resolution, commemorating the ground breaking
19 ceremony of the Fairport Baptist Homes Campus
20 renovation and new construction project from
21 hallways to households, Sunday, May 5, 1996.
22 By Senator Connor, Legislative
23 Resolution commending Mary Nolan upon the
4501
1 occasion of her selection as guest of honor at
2 the annual dinner dance of the Brooklyn
3 Shamrocks Football Club on Friday, May 3, 1996.
4 By Senator Connor, Legislative
5 Resolution commemorating Albany Jerusalem 3000,
6 a gala celebration of the glorious history of
7 city of Jerusalem to be held in the well of the
8 Legislative Office Building, Albany, New York on
9 May 7, 1996.
10 ACTING PRESIDENT KUHL: The
11 question is on the resolutions. All those in
12 favor signify by saying aye.
13 (Response of "Aye".)
14 Opposed, nay.
15 (There was no response.)
16 The resolutions are adopted.
17 SENATOR LARKIN: Is there any
18 housekeeping up there?
19 ACTING PRESIDENT KUHL: No.
20 Senator Larkin, the desk has been swept clean
21 with one exception. The bill that we passed
22 earlier, as you are aware, the Nassau County
23 extender bill passed the Assembly at the same
4502
1 time. So the bill is being recalled so it can
2 be substituted and repassed. We have a national
3 cross that we want to correct before we do
4 anything else -- before we conclude today.
5 SENATOR LARKIN: Stand at ease
6 then.
7 ACTING PRESIDENT KUHL: The
8 Senate will stand at ease momentarily. It
9 should be right here.
10 (Whereupon, the Senate stood at
11 ease from 2:15 p.m. until 2:19 p.m.)
12 ACTING PRESIDENT KUHL: Senate
13 will come to order.
14 Senator Larkin, we do now have
15 the bill at the desk. We would like to
16 reconsider the vote by which the bill passed the
17 house, if that's permissible with you.
18 SENATOR LARKIN: Please do so.
19 ACTING PRESIDENT KUHL: The
20 motion is to reconsider the vote by which
21 Calendar Number 909 passed the house. The
22 Secretary will call the roll on
23 reconsideration.
4503
1 THE SECRETARY: Calendar Number
2 909, by the Senate Committee on Rules, Senate
3 Print 7486, an act to amend Chapter 261 of the
4 Laws of 1993.
5 ACTING PRESIDENT KUHL: Call the
6 roll on reconsideration.
7 (The Secretary called the roll on
8 reconsideration.)
9 THE SECRETARY: Ayes 60.
10 ACTING PRESIDENT KUHL: The bill
11 is before the house. We have an Assembly
12 substitution. I'd ask the Secretary to read.
13 THE SECRETARY: Senator Bruno
14 moves to discharge from the Committee on Rules,
15 Assembly Bill Number 10571 and substitute it for
16 the identical Third Reading Calendar 909.
17 ACTING PRESIDENT KUHL: The
18 substitution is ordered. We have a message of
19 necessity from the Assembly on the bill. The
20 motion is to accept the message of necessity.
21 SENATOR LARKIN: Accept.
22 ACTING PRESIDENT KUHL: All those
23 in favor of accepting the message of necessity
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1 signify by saying aye.
2 (Response of "Aye".)
3 Opposed, nay.
4 (There was no response.)
5 The message is accepted.
6 The Secretary will read the last
7 section -- read the Assembly bill.
8 THE SECRETARY: Calendar Number
9 909, by the Assembly Committee on Rules,
10 Assembly Print Number 10571, an act to amend
11 Chapter 261 of the Laws of 1993.
12 ACTING PRESIDENT KUHL: The
13 Secretary will read the last section.
14 THE SECRETARY: Section 82. This
15 act shall take effect immediately.
16 ACTING PRESIDENT KUHL: Call the
17 roll.
18 (The Secretary called the roll.)
19 THE SECRETARY: Ayes 60.
20 ACTING PRESIDENT KUHL: The bill
21 is passed.
22 Senator Larkin.
23 SENATOR LARKIN: Mr. President,
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1 there being no further business, I move we
2 adjourn until Monday, May the 6th, at 3:00 p.m.,
3 intervening days to be legislative days.
4 ACTING PRESIDENT KUHL: Without
5 objection, the Senate stands adjourned until
6 Monday, May 6th, intervening days to be
7 legislative days.
8 (Whereupon, at 2:21 p.m., the
9 Senate adjourned.)
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