Regular Session - March 20, 2001

                                                              2456



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                              March 20, 2001

                                11:19 a.m.





                              REGULAR SESSION







                 SENATOR JOHN R. KUHL, JR., Acting President

                 STEVEN M. BOGGESS, Secretary

















                                                          2457



                           P R O C E E D I N G S

                            ACTING PRESIDENT KUHL:    The

                 Senate will come to order.  I ask the members

                 to take their places, staff to find their

                 places.

                            I ask everybody in the chamber to

                 rise and join me in saying the Pledge of

                 Allegiance to the Flag.

                            (Whereupon, the assemblage recited

                 the Pledge of Allegiance to the Flag.)

                            ACTING PRESIDENT KUHL:    In the

                 absence of clergy, may we bow our heads in a

                 moment of silence.

                            (Whereupon, the assemblage

                 respected a moment of silence.)

                            ACTING PRESIDENT KUHL:    Reading

                 of the Journal.

                            THE SECRETARY:    In Senate,

                 Monday, March 19, the Senate met pursuant to

                 adjournment.  The Journal of Sunday, March 18,

                 was read and approved.  On motion, Senate

                 adjourned.

                            ACTING PRESIDENT KUHL:    Hearing

                 no objection, the Journal stands approved as

                 read.





                                                          2458



                            Presentation of petitions.

                            Messages from the Assembly.

                            Messages from the Governor.

                            Reports of standing committees.

                            Reports of select committees.

                            Communications and reports from

                 state officers.

                            Motions and resolutions.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President, I

                 believe there's a substitution at the desk.

                 If we could make it at this time.

                            ACTING PRESIDENT KUHL:    There is,

                 Senator Skelos.  I'd ask the Secretary to

                 read.

                            THE SECRETARY:    On page 21,

                 Senator Lack moves to discharge, from the

                 Committee on Judiciary, Assembly Bill Number

                 5305 and substitute it for the identical

                 Senate Bill Number 2967, Third Reading

                 Calendar 250.

                            ACTING PRESIDENT KUHL:    The

                 substitution is ordered.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,





                                                          2459



                 there will be an immediate meeting of the

                 Finance Committee in the Majority Conference

                 Room.

                            ACTING PRESIDENT KUHL:    Immediate

                 meeting of the Finance Committee, immediate

                 meeting of the Finance Committee in the

                 Majority Conference Room, Room 332.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 if we could adopt the Resolution Calendar at

                 this time.

                            ACTING PRESIDENT KUHL:    The

                 motion is to accept and adopt the Resolution

                 Calendar on the members' desks.  All those in

                 favor signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT KUHL:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT KUHL:    The

                 Resolution Calendar is adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 there's a privileged resolution at the desk,

                 911, by Senator Maltese.  May we please have





                                                          2460



                 it read in its entirety and move for its

                 immediate adoption.

                            ACTING PRESIDENT KUHL:    The

                 Secretary will read Privileged Resolution 911,

                 by Senator Maltese, which is at the desk, in

                 its entirety.

                            THE SECRETARY:    By Senator

                 Maltese, Legislative Resolution Number 911,

                 commemorating the 90th Anniversary of the

                 Triangle Shirtwaist Factory Fire on March 25,

                 2001, and acknowledging the efforts of UNITE!,

                 the Union of Needletrades, Industrial and

                 Textile Employees, to make American working

                 conditions the safest in the world.

                            "WHEREAS, It is the sense of this

                 Legislative Body to commemorate the 90th

                 Anniversary of the Triangle Shirtwaist Factory

                 Fire on March 25, 2001; and

                            "WHEREAS, It is the further intent

                 of this Legislative Body to recognize the

                 ongoing efforts of UNITE!, the Union of

                 Needletrades, Industrial, and Textile

                 Employees, in striving to make working

                 conditions for the American people the safest

                 in the world; and





                                                          2461



                            "WHEREAS, Each year UNITE!

                 commemorates the anniversary of the Triangle

                 Shirtwaist Factory Fire with a wreath and

                 speeches, and members of Ladder Company 20,

                 the first to respond to the fire, toll their

                 bell and raise their ladder to the sixth

                 floor; and

                            "WHEREAS, The shirtwaist was the

                 uniform of the new woman.  The first women to

                 go out to work as 'typewriters' wore it; so

                 did the 'Gibson Girls' that Charles Dana

                 Gibson drew playing golf or croquet.  It was

                 the first civilian garment simple and loosely

                 fitted enough to be made in factories by the

                 dozens, instead of custom-made one at a time

                 by dressmakers or tailors; and

                            "WHEREAS, By the early 1900s,

                 shirtwaists were being made in modern

                 factories, at long rows of sewing machines

                 powered by electricity.  Max Blanck and Isaac

                 Harris, owners of the million-dollar Triangle

                 Shirtwaist Company, with operations in

                 New York and Philadelphia, were the

                 'shirtwaist kings.'  Their biggest factory

                 occupied the top three floors of a new,





                                                          2462



                 fireproof building a block from Washington

                 Square in New York and employed about 600

                 people; and

                            "WHEREAS, The employees were

                 putting on their hats and coats at quitting

                 time on Saturday, March 25, 1911, when someone

                 noticed smoke curling from the long rag bin

                 under the cutting tables along the windows on

                 the eighth floor.  The month's accumulation of

                 linen and muslin scraps caught fire, then the

                 fabric that was laid out on the tables, then

                 the paper patterns strung open on the wire

                 above them, then the big wicker baskets full

                 of bundled work that stood by each sewing

                 machine; and

                            "WHEREAS, There were no sprinklers.

                 Only three weeks before, an association of

                 property owners had met to oppose the fire

                 department's campaign to require them; and

                            "WHEREAS, In the Triangle fire, all

                 but one of the terrified seamstresses and

                 cutters on the eighth floor escaped, either by

                 one of the two small elevators or down one of

                 the building's two narrow stairways, each wide

                 enough for only one person to descend at a





                                                          2463



                 time.  Somebody telephoned a warning to the

                 executives on the 10th floor, where the fire

                 quickly spread, and many from the offices and

                 the pressing and shipping rooms on the

                 10th floor, including the shirtwaist kings

                 themselves, caught an elevator or escaped over

                 the roof; and

                            "WHEREAS, Tragically, nobody told

                 the ninth floor.  By the time they knew, they

                 were caught between fires above and below

                 them.  Some ran for elevators, others for the

                 doors to the stairs.  One set of doors was

                 locked to keep girls from leaving early.  The

                 doors to the other stairway opened inward, and

                 almost immediately the crush made it

                 impossible to open them.  Soon the stairs were

                 cut off by the fire; and

                            "WHEREAS, The elevator operators

                 did their best, each making seven or eight

                 trips through the smoke and flames, but as the

                 fire grew, it forced one after another of the

                 desperate, waiting crowd to leap into the open

                 shaft, until finally the elevators could not

                 rise because they were jammed by bodies; and

                            "WHEREAS, The rest of the





                                                          2464



                 ninth-floor workers were forced to the

                 windows.  They stood on the ledges as long as

                 they could, waiting for the fire ladders, but

                 the city's longest ladder reached only to the

                 sixth floor.  And as the fire reached out the

                 windows after them, they began to jump; and

                            "WHEREAS, The date of March 25th

                 holds a special significance for all working

                 people because of this tragic Triangle

                 Shirtwaist Company Fire in New York City that

                 took the lives of 146 garment workers, a

                 tragedy that occurred on March 25, 1911, and

                 led to the first major safety laws in the

                 country; and

                            "WHEREAS, Every year UNITE!,

                 together with the New York City Fire

                 Department, commemorates the anniversary of

                 the Triangle Fire with a ceremony at the

                 original site of the tragedy; and

                            "WHEREAS, The death of 146 mostly

                 young, female garment workers at the Triangle

                 Fire started a movement to fight sweatshops

                 which continues to this day; and

                            "WHEREAS, Mrs. Rose Freedman, the

                 last survivor of the Triangle Fire, passed





                                                          2465



                 away on February 15, 2001, at the age of 107;

                 and

                            "WHEREAS, Upon the occasion of the

                 90th Anniversary of the Triangle Shirtwaist

                 Factory Fire, it is the sense of this

                 Legislative Body to join with UNITE! in

                 commemoration of a tragic event of such

                 meaningful significance to the history and

                 purpose of the American labor movement; now,

                 therefore, be it

                            "RESOLVED, That this Legislative

                 Body pause in its deliberations to commemorate

                 the 90th Anniversary of the Triangle

                 Shirtwaist Factory Fire on March 25, 2001, and

                 to acknowledge the efforts of UNITE! to make

                 American working conditions the safest in the

                 world; and be it further

                            "RESOLVED, That copies of this

                 resolution, suitably engrossed, be transmitted

                 to Jay Mazur, President, UNITE!; Edward W.

                 Clark, Executive Vice President, UNITE!; David

                 Melman, Vice President, UNITE!; Bruce Raynor,

                 Secretary-Treasurer, UNITE!; Thomas Von Essen,

                 New York City Fire Department Commissioner;

                 Vincent C. Maltese, President, Triangle





                                                          2466



                 Shirtwaist Factory Fire Memorial Society; the

                 Union of Needletrades, Industrial, and Textile

                 Employees; Acting Commissioner of Labor, Linda

                 Angelo; and the family of the late Rose

                 Freedman, the last survivor of the fire."

                            ACTING PRESIDENT KUHL:    The

                 question is on the resolution.  All those in

                 favor signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT KUHL:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT KUHL:    The

                 resolution is adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 there's another privileged resolution at the

                 desk by Senator Maltese, 908.  May we have it

                 read in its entirety and move for its

                 immediate adoption.

                            ACTING PRESIDENT KUHL:    The

                 Secretary will read the privileged resolution,

                 Number 908, by Senator Maltese, in its

                 entirety.

                            THE SECRETARY:    By Senator





                                                          2467



                 Maltese, Legislative Resolution Number 908,

                 honoring and paying tribute to the remarkable

                 and charmed life of Rose Freedman, last

                 survivor of the infamous Triangle Shirtwaist

                 Factory Fire.

                            "WHEREAS, It is with feelings of

                 great sorrow and deepest regret that this

                 Legislative Body records the passing of Rose

                 Freedman, last survivor of the infamous

                 Triangle Shirtwaist Factory Fire, noting the

                 significance of the loss of a woman with an

                 indomitable spirit; and

                            "WHEREAS, Rose Freedman died on

                 Thursday, February 15, 2001, in Beverly Hills,

                 California, at the age of 107; and

                            "WHEREAS, Born on March 27, 1893,

                 in Vienna, Rose Rosenfeld came to the United

                 States from the Austro-Hungarian Empire in

                 1909 aboard the steamship Mauritania; and

                            "WHEREAS, Shortly after her

                 arrival, Rose went to work for the Triangle

                 Shirtwaist Company in New York City.  The

                 historic Triangle Shirtwaist Factory Fire

                 claimed the lives of 146 Lower Manhattan

                 garment workers on March 25, 1911, and spawned





                                                          2468



                 industrial safety reforms; and

                            "WHEREAS, Rose returned to Austria

                 after the 1911 fire.  Following the beginning

                 of World War I, she returned to the United

                 States and started a family.

                            "Rose Freedman became an outspoken

                 advocate for the working class and a

                 passionate promoter of workplace safety.

                            "Surviving the fire, Rose Freedman

                 often remarked, was the first of three

                 miracles in her life.  Saving the life of an

                 Austrian spy at the onset of World War I was

                 the second miracle.  Seeing two of her

                 children recover from polio was the third; and

                            "WHEREAS, A painter and avid fan of

                 the Los Angeles Lakers, Rose Freedman was a

                 unique individual with an ageless personality;

                 and

                            "WHEREAS, Rose Freedman is survived

                 by her three children -- Arlene March, Robert

                 Freedman, and Herbert Freedman -- eight

                 grandchildren, and one great-granddaughter;

                 and

                            "WHEREAS, The key to Rose

                 Freedman's longevity was her unwavering





                                                          2469



                 attitude.  She lived her life with honor,

                 dignity, character, and class; now, therefore,

                 be it

                            "RESOLVED, That this Legislative

                 Body pause in its deliberations to honor and

                 pay tribute to the remarkable and charmed life

                 of Rose Freedman, last survivor of the

                 infamous Triangle Shirtwaist Factory Fire; and

                 be it further

                            "RESOLVED, That a copy of this

                 resolution, suitably engrossed, be transmitted

                 to the family of Rose Freedman."

                            THE PRESIDENT:    Senator Maltese.

                            SENATOR MALTESE:    Yes, Madam

                 President.  The resolutions have been read in

                 their entirety, and the history of the

                 Triangle Shirtwaist Factory Fire has been

                 memorialized many years here in this

                 legislative chamber and at the site in Lower

                 Manhattan where, this coming Tuesday, a

                 memorial ceremony will be conducted by UNITE!

                 and the survivors' memorial society, as well

                 as Ladder Company 20, which was the responding

                 company on that Saturday afternoon on

                 March 25, 1911.





                                                          2470



                            The resolution indicates that the

                 majority of the workers were on the ninth

                 floor.  Unfortunately, the ladders of the time

                 only reached to the sixth floor, when those

                 survivors that managed to survive the first

                 fire and smoke assembled at the windows,

                 trying to reach the ladders.

                            The working conditions had been

                 spelled out in the resolution.  And these were

                 the sweatshops of the day, sweatshops that as

                 a matter of fact in some parts of our city

                 survive even now and which we are attempting

                 to do something about so that the immigrants

                 of today will not have to suffer a similar

                 tragedy as those immigrants in 1911.

                            The 146 victims were mostly women,

                 just a few men.  As was indicated, the

                 executives on the tenth floor, most managed to

                 escape.  Most of the women were young women,

                 ranging in age from 13 to 18, as was Rose

                 Freedman, who was 17 at the time and the last

                 survivor.  She exemplified the spirit of many

                 of those women of 1911 trying to earn a

                 living.

                            Almost all of them were Jewish and





                                                          2471



                 Italian immigrants, recent immigrants from

                 their native lands.  Most of them worked a

                 six-day week.  This was a Saturday at 4:40

                 when they were preparing to leave.

                            The tragedy was accentuated by the

                 fact that the owners had locked the exits to

                 prevent alleged thefts by the employees.  As a

                 result, as was indicated in the resolution,

                 the two narrow staircases first filled up.

                 The elevator unfortunately was unable to

                 continue running because so many of the

                 panicked ladies were throwing themselves into

                 the elevator shaft.

                            It was a terrible tragedy, one that

                 we should ensure never occurs again.  It's a

                 tragedy that could possibly occur again,

                 because so many of the abuses of those days

                 are repeated today.

                            My brother Vinny is the president

                 of the memorial society.  I think many times

                 of my grandfather who, in the morning, bid

                 goodbye to his wife and two daughters and

                 never saw them again.

                            THE PRESIDENT:    Senator Connor.

                            SENATOR CONNOR:    Yes, Madam





                                                          2472



                 President.  I certainly want to thank Senator

                 Maltese for bringing these resolutions to the

                 floor.  And I appreciate his family's

                 commitment through a couple of generations,

                 really, commemorating their personal loss as

                 well as the loss of so many other lives.

                            I commend to my colleagues the

                 segment of the documentary called "New York,"

                 which has probably a 45-minute segment on the

                 Triangle Shirtwaist Factory Fire, has some

                 moving, shocking pictures in that documentary,

                 as well as a lot of eyewitness testimony,

                 people who stood on the sidewalk and literally

                 described how it was raining bodies as these

                 desperate young women would jump from the

                 ninth floor.

                            The Triangle Shirtwaist Factory

                 Fire mobilized working people, working

                 immigrants in New York City as they'd never

                 been mobilized before.  The funeral

                 processions involved well over a hundred

                 thousand workers, marching with the banners of

                 their then-nascent unions that had been

                 unsuccessful.

                            Indeed, the Triangle -- indeed, the





                                                          2473



                 shirtwaist manufacturers had broken an

                 organizing strike but a couple of years before

                 the tragic fire.  That was never to happen

                 again in the garment industry in New York.

                 The ILGWU and the Amalgamated proceeded to

                 organize, they organized an industry on a shop

                 basis as well as an ethnic basis, the entire

                 industry.

                            This Legislature, Madam President,

                 in the follow-up to the Triangle Shirtwaist

                 Factory Fire, instituted what was known as the

                 Factories Commission.  And the then-boss of

                 Tammany Hall, Silent Charlie Murphy, who had

                 been frankly rather conservative, rather cozy

                 with the business interests, the small

                 business manufacturers, the garment

                 manufacturers up until that point, in the

                 aftermath of the fire and the huge outpouring

                 of citizens into the streets, summoned my

                 predecessor, as the Democratic leader of this

                 conference, the first great Senator Robert

                 Wagner, and the then Democratic leader in the

                 Assembly, the great Speaker Alfred E. Smith,

                 and said:  "We're getting behind these folks."

                            And they came to Albany -- by the





                                                          2474



                 way, Silent Charlie didn't say much more than

                 that.  That's why they called him Silent

                 Charlie.  He just said:  "We're getting behind

                 these folks."

                            And they came to Albany and

                 instituted the Factory Committee, a joint

                 commission of the Legislature that toured the

                 entire state.  And from this documentary, they

                 commented something that's no surprise to any

                 of us.  The commission went around the state,

                 and at various times various members

                 accompanied the commission because not

                 everyone could do all the trips.  With one

                 exception.  Alfred E. Smith never, ever missed

                 a single factory inspection, visit, or hearing

                 of this commission that went on for a couple

                 of years.

                            And as many of the reformers of the

                 day described it, this man, Al Smith, that

                 they thought was nothing more than a partisan

                 hack who had never completed a grade beyond

                 the fourth grade -- he went to school in my

                 district.  There's still a plaque on the

                 school -- stood up on the floor of the

                 Assembly day after day after day and fought





                                                          2475



                 for the workers.

                            Laws were passed limiting hours of

                 work for children.  In one instance, visiting

                 a factory upstate, he was assured there were

                 no children employed there.  A worker winked

                 at him and pointed at the elevator, which was

                 stuck mid-floors.  And when they lowered it,

                 it was crammed full of 11- and 12-year-olds

                 who had been working in the factory, were

                 hidden when the legislative Factory Commission

                 showed up.

                            The bills passed by that

                 Legislature under the leaderships of Senator

                 Wagner and Speaker Al Smith were really among

                 the first workers' rights legislation in

                 America, limiting employment of children,

                 limiting hours of employment for women and

                 children, providing for sanitation facilities,

                 providing for safety measures.  Indeed, it

                 propelled Al Smith a few years later into the

                 governorship.  More such progressive

                 legislation came forth.

                            State Senator Wagner went on to

                 become United States Senator Wagner, passed,

                 under the leadership of President Roosevelt,





                                                          2476



                 the Wagner Act, the fundamental labor

                 relations act in the United States.  And

                 indeed, the great New Dealer, Franklin Delano

                 Roosevelt, really copied a lot of his program

                 from the intellectual product of Alfred E.

                 Smith when he was governor of this state and

                 put forth similar measures in this state.

                            So tragic though the Triangle

                 Shirtwaist Factory Fire was, it became first a

                 wake-up call for New York City, a wake-up call

                 for New York State, and indeed a giant wake-up

                 for the whole United States when it comes to

                 workers' rights, workers' safety, and worker

                 protection.

                            So it is fitting indeed,

                 particularly in this legislative body, where

                 our predecessors played such a role in the

                 aftermath of the Triangle Shirtwaist Fire,

                 that we commemorate and remember -- and never

                 forget -- the reasons why it happened and the

                 humanity of the victims who were so tragically

                 lost.

                            Thank you, Madam President.

                            THE PRESIDENT:    On the

                 resolution, all those in favor signify by





                                                          2477



                 saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The resolution is

                 adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 there will be an immediate meeting of the

                 Environmental Conservation Committee in the

                 Majority Conference Room.

                            THE PRESIDENT:    There will be an

                 immediate meeting of the Environmental

                 Conservation Committee in the Majority

                 Conference Room.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could go to the noncontroversial

                 calendar.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 106, by Member of the Assembly Lentol,

                 Assembly Print Number 1437, an act to amend

                 the Civil Practice Law and Rules, in relation





                                                          2478



                 to requiring.

                            SENATOR PATERSON:    Explanation.

                            THE PRESIDENT:    Senator Volker,

                 an explanation has been requested by Senator

                 Paterson.

                            Excuse me, Senator Paterson, we're

                 on the noncontroversial calendar.  We're

                 moving ahead.

                            SENATOR PATERSON:    Madam

                 President, I apologize.  Would you please

                 lay -

                            THE PRESIDENT:    I accept your

                 apology.

                            SENATOR PATERSON:    -- lay that

                 bill aside.  Thank you.

                            THE PRESIDENT:    The bill is now

                 laid aside.

                            THE SECRETARY:    Calendar Number

                 167, by Senator Bruno, Senate Print Number 7,

                 an act to amend the State Finance Law, in

                 relation to changing.

                            SENATOR PATERSON:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number





                                                          2479



                 177, by Senator Maziarz, Senate Print 1040, an

                 act to amend the Election Law, in relation to

                 deadlines.

                            SENATOR PATERSON:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 205, by Senator Morahan, Senate Print 1158, an

                 act to amend the Military Law, in relation to

                 extending.

                            SENATOR PATERSON:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 207, by Senator Seward, Senate Print 2133, an

                 act to amend the Executive Law, in relation to

                 requiring.

                            SENATOR PATERSON:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 227, by Senator Wright, Senate Print 2678, an

                 act to amend the Highway Law, in relation to

                 designating.

                            THE PRESIDENT:    Read the last





                                                          2480



                 section.

                            SENATOR PATERSON:    Lay it aside,

                 please.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 244, by Senator Bruno, Senate Print 6,

                 Concurrent Resolution of the Senate and

                 Assembly.

                            SENATOR PATERSON:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 256, by Senator Saland, Senate Print 3398, an

                 act to amend Chapter 705 of the Laws of 1993.

                            SENATOR PATERSON:    Lay it aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 261, by Senator Meier, Senate Print 1445, an

                 act to amend the Social Services Law -

                            SENATOR SKELOS:    Lay it aside for

                 the day.

                            THE PRESIDENT:    The bill is laid

                 aside for the day, Senator.





                                                          2481



                            Senator Skelos, that completes the

                 reading of the noncontroversial calendar.

                            SENATOR SKELOS:    Madam President,

                 if we could call up Calendar Number 256, by

                 Senator Saland.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 256, by Senator Saland, Senate Print 3398, an

                 act to amend Chapter 705 of the Laws of 1993,

                 amending the Economic Development Law.

                            SENATOR PATERSON:    Explanation,

                 please.

                            THE PRESIDENT:    Senator Saland,

                 an explanation has been requested by Senator

                 Paterson.

                            SENATOR SALAND:    Thank you, Madam

                 President.

                            Madam President, the Linked Deposit

                 Act is one which permits a combination of the

                 private and public sector to encourage small

                 business development by way of loans at below

                 market rates.  The original legislation, which

                 was introduced by Senator Bruno, passed in

                 1993.





                                                          2482



                            The language of the bill provided

                 for sunset provisions.  The original bill I

                 believe sunsetted in '95, was subsequently

                 extended, sunsetted, I believe, in '98, and is

                 due to sunset on April 1st of this year.

                            What this bill proposes to do is to

                 permanentize the linked deposit program and

                 also at the same time to deal with the

                 definition of distressed areas by requiring

                 the use of the most recent census data instead

                 of what I believe was reference to the 1990

                 census in the original legislation.

                            The program has been successful,

                 it's a revolving loan fund, and it's a program

                 which provides below-market loans by banks

                 that agree to participate and accept deposits

                 from the state and certain state authorities

                 similarly at below-market rates.

                            THE PRESIDENT:    Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if I could interrupt, there will be an

                 immediate meetings of the Investigations,

                 Taxation and Government Operations Committee

                 in the Majority Conference Room.

                            THE PRESIDENT:    There will be an





                                                          2483



                 immediate meeting of the Investigations,

                 Taxation and Government Operations Committee

                 in the Majority Conference Room.

                            Senator Paterson.

                            SENATOR PATERSON:    Thank you,

                 Madam President.  And if Senator Saland would

                 yield for a few questions.

                            THE PRESIDENT:    Senator Saland,

                 do you yield?

                            SENATOR SALAND:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed.

                            SENATOR PATERSON:    Senator, has

                 anybody conducted a study or prepared a report

                 about the statewide efficiency of the linked

                 deposit program?

                            SENATOR SALAND:    In terms of

                 efficiencies?  Well -

                            SENATOR PATERSON:    Madam

                 President.

                            THE PRESIDENT:    Senator Paterson.

                            SENATOR PATERSON:    Perhaps if I

                 continue the question.

                            To be more specific, what I'm

                 getting at is that it's my feeling or just





                                                          2484



                 from my experience that the program, while

                 it's effective, has really benefited the

                 upstate communities in a rather larger degree.

                 And those of us who don't live there would

                 certainly like to see this type of planning

                 extended to include some of the five boroughs.

                            SENATOR SALAND:    Senator, I

                 recall, although not exactly the context in

                 which we had a similar exchange dealing, I

                 believe, with this subject when we expanded

                 the program to provide for yet additional

                 types of lenders.

                            The information which I have, which

                 I believe comes from the economic development

                 people, is that some 42 percent of the

                 projects that had been approved have gone to

                 what are termed targeted businesses.  Those

                 are defined as businesses in highly distressed

                 areas, Empire Zone-certified, or minority- and

                 women-owned business enterprises.

                            The numbers of projects that have

                 been approved in New York City are some 69

                 projects representing some $27 million in

                 linked deposit assistance.  And the

                 definitions again basically control those who





                                                          2485



                 are eligible.

                            And I think it's important to note

                 that no ineligible applicant -- let me

                 rephrase, no eligible applicant has ever been

                 turned down for a loan.  There have been those

                 who have been ineligible.  But of some 375

                 applications, 318 were deemed to be eligible,

                 and all of those 318 were granted loans.

                            SENATOR PATERSON:    Madam

                 President.

                            THE PRESIDENT:    Senator Paterson.

                            SENATOR PATERSON:    If Senator

                 Saland would continue to yield.

                            THE PRESIDENT:    Senator, do you

                 yield?

                            SENATOR SALAND:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed.

                            SENATOR PATERSON:    Senator, I

                 apologize if I in any way implied that there

                 was not a willingness to cooperate with some

                 of the businesses in New York City, because

                 that certainly was not my intention.  I was

                 just addressing the reality that my

                 information is that only 6.8 percent of the





                                                          2486



                 approved programs come from New York City.

                            And I was wondering if you could

                 give any further specificity to the notion

                 that 42 percent of minority and women business

                 enterprises have been approved.  Because with

                 such a small percentage coming out of New York

                 City, I was just wondering where all these

                 businesses are.

                            SENATOR SALAND:    If I led you to

                 believe that 42 percent of the applications

                 that are approved were approved for minority

                 businesses, I apologize.  That is not what I

                 thought I had said.  And let me rephrase what

                 I said previously.

                            What I believe that I said was that

                 some 42 percent of the projects that were

                 approved were to what are called targeted

                 businesses.  And within targeted businesses

                 are businesses defined as those in highly

                 distressed areas.  That doesn't necessarily

                 mean that it's a minority-operated business.

                            Also, Empire Zone-certified or

                 minority- and women-owned business enterprises

                 are included within that category.

                            SENATOR PATERSON:    Madam





                                                          2487



                 President.

                            THE PRESIDENT:    Senator Paterson.

                            SENATOR PATERSON:    If the Senator

                 would continue to yield.

                            THE PRESIDENT:    Senator, do you

                 yield?

                            SENATOR SALAND:    Yes.

                            THE PRESIDENT:    You may proceed.

                            SENATOR PATERSON:    Senator, I

                 think that is exactly what you said.  And I

                 misunderstood it.  I'm glad you clarified it

                 for me.

                            Being that they are designated or

                 in a sense intended for highly distressed

                 areas, can you be more specific as to how many

                 of these businesses are minority and women's

                 business enterprises?

                            SENATOR SALAND:    If you have that

                 information, I'd be very happy to acknowledge

                 it.  I don't have it readily available.

                            SENATOR PATERSON:    Madam

                 President, if Senator Saland would continue to

                 yield.

                            THE PRESIDENT:    Senator Saland,

                 do you yield?





                                                          2488



                            SENATOR SALAND:    Thank you, Madam

                 President, I certainly would.

                            I would just continue to suggest,

                 Senator Paterson, that given the data that

                 I've received insofar as applications that

                 have been accepted, it would seem that if

                 there were a minority-operated business that

                 made an application and was eligible, they

                 received that loan.

                            Because again, what we're being

                 told is all eligible applicants have had their

                 requests accepted.  Only those who were

                 ineligible under whatever the criteria might

                 have been were declined.

                            SENATOR PATERSON:    Madam

                 President.

                            THE PRESIDENT:    Senator Paterson.

                            SENATOR PATERSON:    In answer to

                 Senator Saland's question, I -

                            THE PRESIDENT:    Are you on the

                 bill, Senator?  I thought you had a question.

                 Senator Saland did yield, and then he did an

                 explanation.  But he yielded for you to ask a

                 question.

                            SENATOR PATERSON:    Yes.  And I'm





                                                          2489



                 now going to ask my question, but he inquired

                 of some information from me.

                            THE PRESIDENT:    All right.  You

                 may proceed with either/or.

                            SENATOR PATERSON:    Thank you.

                            On that issue, I don't know what

                 the specific numbers are, Senator Saland.  I

                 was really not asking the question to then

                 attempt to snow you with the answer.  I really

                 don't know the answer and would be happy to

                 work with you in trying to find it.

                            My question relates to the

                 publication and the ability of a lot of these

                 businesses to become aware of how effective

                 the linked deposit program could be for them.

                 And I wanted to know what action hopefully

                 will follow this legislation in order that we

                 make this opportunity available for more of

                 the businesses that I'm referring to.

                            SENATOR SALAND:    Well, Senator

                 Paterson, certainly your point and your

                 concern is one which has validity.  If you

                 look at the program, it's been an extremely

                 successful program.

                            If in fact their message is not





                                                          2490



                 resonating far enough and deeply enough

                 throughout the corners of the state, then

                 perhaps it's incumbent upon them to endeavor

                 to get that message out through some type of

                 notification or notice-type proposal, whether

                 it be advertising or general mailings.

                            SENATOR PATERSON:    Thank you,

                 Senator.

                            Madam President, if the Senator

                 would continue to yield.

                            THE PRESIDENT:    Senator, do you

                 yield?

                            SENATOR SALAND:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed.

                            SENATOR PATERSON:    Senator, I

                 notice that you changed a term in the

                 legislation.  What is the current-law legal

                 definition of a highly distressed area?

                            SENATOR SALAND:    If you're

                 referring to subsection 2 -

                            SENATOR PATERSON:    Yes, I am,

                 Senator.

                            SENATOR SALAND:    What we have

                 really done is merely omit reference to 1990,





                                                          2491



                 that being the base year when this initial

                 legislation was enacted in 1993, and said that

                 the relevant data must be for the most recent

                 year.  And that will enable us to use both a

                 higher wealth ratio, where the Comptroller is

                 called upon to determine wealth ratios, and

                 over in the last part of the bill, the last

                 several lines also makes reference to the most

                 recent census in order to get the more

                 appropriate census data, instead of 1990 data.

                            So in terms of definition, nothing

                 has changed.  What we've done is to try and

                 update the available data upon which these

                 decisions will be made.

                            SENATOR PATERSON:    Thank you very

                 much, Senator.

                            Madam President, on the bill.

                            THE PRESIDENT:    Go ahead,

                 Senator.

                            SENATOR PATERSON:    I appreciate

                 Senator Saland's interest in trying to

                 encourage other businesses to become eligible.

                 I just think that -- there's nothing wrong

                 with this legislation, but I just think that

                 the New York City participation is way too





                                                          2492



                 low.  And even though there is a designation

                 and an intent to go into highly distressed

                 areas, and we certainly appreciate the intent,

                 but the results, if you look at the results,

                 they're -- I see it not acceptable.

                            Perhaps this legislation will be a

                 prelude to that, and in good faith I'll vote

                 for the legislation.  And I'll work with

                 Senator Saland on trying to identify how many

                 MWBEs are actually involved.

                            I appreciated his interest and his

                 answers and his intentions, but I guess that

                 more than just what has been done to this

                 point is going to have to occur for us to have

                 what would really be a true representation

                 with all of the small businesses and

                 enterprises that could benefit from this

                 legislation.

                            Thank you.

                            THE PRESIDENT:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Yes,

                 thank you.  Madam President, through you, if

                 the Senator will yield for a question.

                            THE PRESIDENT:    Senator, will you





                                                          2493



                 yield?

                            SENATOR SALAND:    Certainly, Madam

                 President.

                            THE PRESIDENT:    You may proceed.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Senator.  I apologize, and I realize you

                 must have answered this question, but I'm just

                 going to ask you to answer it again for my

                 benefit, because I did have to step out.  And

                 I apologize for that.

                            But what is the present definition

                 of highly distressed areas?  And then, what is

                 the advantage of the redefining as you see it?

                            SENATOR SALAND:    We have done

                 nothing to change the substance of the

                 definition in order to use current data.  And

                 the Comptroller is a participant in defining

                 what shall be a distressed area.

                            In order to use current data, we

                 are getting away from what the original bill

                 provided.  The bill, being enacted in 1993,

                 used 1990 data.  So in terms of property, the

                 value of property, certainly there are more

                 current evaluation rolls than 1990.  I know

                 they're generally a year or two behind.  I'm





                                                          2494



                 not going to say I can tell you off the top of

                 my head what year it is, but I have to assume

                 it's somewhere '97, '98, '99, would be the

                 relevant year.

                            And where there's census data

                 required, we add language also in the

                 subsection 2, which I referred to in my

                 exchange with Senator Paterson, we add

                 language to make reference to the most recent

                 census.

                            SENATOR HASSELL-THOMPSON:    Right.

                            SENATOR SALAND:    So substantively

                 there is no change in the definition, merely

                 the base formulae that are being used are

                 being adjusted to reflect the most currently

                 available data.

                            THE PRESIDENT:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Madam

                 President, if the Senator will continue to

                 yield.

                            THE PRESIDENT:    Senator, do you

                 continue to yield?

                            SENATOR SALAND:    Yes, Madam

                 President.





                                                          2495



                            THE PRESIDENT:    You may proceed.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you.  Again, if you answered this, again, I

                 apologize.

                            Why have you chosen to make this

                 program permanent instead of just extending it

                 for a two-year period?

                            SENATOR SALAND:    Well, we have

                 now been through three extenders.  The

                 original program, as I mentioned in my opening

                 remarks, was enacted in '93, I believe

                 expiring on March 31st of '95.  It was

                 extended, I believe, from '95 to '98.  And its

                 most recent form was extended from '98 to

                 2001.

                            It has apparently, by -- it is

                 acknowledged by all that it's been a very

                 effective program.  The Governor has said that

                 he believes that it has either created or

                 retained some 25,000 jobs during the course of

                 its life span to date, has resulted in

                 hundreds of millions of dollars in loans that

                 have also leveraged a greater amount of

                 private capital as well.  The combination of

                 the loans and the private capital comfortably





                                                          2496



                 exceed a billion dollars.

                            SENATOR HASSELL-THOMPSON:    Okay.

                 Thank you, Senator.

                            On the bill, Madam President.

                            THE PRESIDENT:    Senator.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you.  Thank you, Madam President.

                            Normally when I stand here I talk

                 mostly on issues that seem to reflect social

                 services where, for a short period, a window

                 of my life, I served on the former Governor's

                 Task Force on Minority and Women Business

                 Development and helped to write a lot of the

                 language that now exists in 15A.

                            And so I am appreciative of these

                 kinds of efforts to make this permanent,

                 primarily because we have been -- I think

                 we've been very successful, particularly -

                 and your statistics help to bear out some of

                 the belief that I have, is that we are better

                 able to create employment opportunities

                 through these small businesses, more so than

                 in large businesses.  And by encouraging and

                 by doing those things necessary to make their

                 ability to do business better and easier,





                                                          2497



                 somehow we indirectly help to create and

                 generate small business activities in our

                 communities.

                            So I'm very supportive of this

                 bill, and I congratulate you, Senator.  Thank

                 you.

                            THE PRESIDENT:    Does any Senator

                 wish to be heard further?

                            Senator Smith.

                            SENATOR MALCOLM SMITH:    Thank you

                 very much, Madam President.  Madam President,

                 through you, if the Senator would yield for a

                 couple of questions.

                            THE PRESIDENT:    Senator, do you

                 yield?

                            SENATOR SALAND:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator M. Smith.

                            SENATOR MALCOLM SMITH:    Thank you

                 very much, Madam President.

                            THE PRESIDENT:    You're welcome.

                            SENATOR MALCOLM SMITH:    Senator,

                 I'm just a little curious with regard to -

                            SENATOR SALAND:    Senator, can I





                                                          2498



                 ask that you just speak up a little louder?

                            THE PRESIDENT:    That might help

                 too.  Go ahead, Senator.

                            SENATOR SALAND:    Absolutely.

                 Order will help.

                            SENATOR MALCOLM SMITH:    Yes,

                 thank you.

                            With regard to New York City, I

                 note that I guess about 6 percent of the

                 approved projects were approved down in

                 New York City, which come to somewhere about

                 7 percent of the 300 and so million dollars

                 that has been awarded to the project.  Has

                 anyone done any research or investigation as

                 to why that number is so low, given the

                 dollars and value that has been deposited in

                 New York City?

                            SENATOR SALAND:    Quite candidly,

                 Senator, I couldn't hear all your data, but I

                 heard your question.  And your question is has

                 anybody -

                            THE PRESIDENT:    Senator, I'm

                 going to ask for order again, because I think

                 part of the reason you both are having trouble

                 hearing is the noise in the chamber.





                                                          2499



                            Go ahead, Senator Saland.

                            SENATOR SALAND:    Thank you, Madam

                 President.

                            Your question was -- well, let me

                 ask you if would just rephrase or -

                            SENATOR MALCOLM SMITH:    Well,

                 basically the numbers, as it relates to

                 projects awarded and the value of those that

                 have been awarded in New York, seem very low.

                 And my question simply is has anyone done any

                 investigation as to why that is so.

                            SENATOR SALAND:    To my knowledge,

                 there hasn't been an investigation.

                            My understanding is that there's

                 over 150 banks in New York City that

                 participate in the program.  It may well be a

                 matter of marketing.  Who's responsible for

                 that marketing, whether it's the banks or

                 whether it's Empire Development, certainly is

                 an open question.  But you would think that

                 the banks would be interested in aggressively

                 marketing this type of program because it -

                 from all indications, it's been an extremely

                 successful program.

                            SENATOR MALCOLM SMITH:    Madam





                                                          2500



                 President, through you, if the sponsor will

                 continue to yield.

                            THE PRESIDENT:    Senator, do you

                 yield?

                            SENATOR SALAND:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed.

                            SENATOR MALCOLM SMITH:    This

                 question may be a little bit -- may seem a

                 question with some optimism, but has there

                 been any thought given to what happens when an

                 area is no longer distressed?  And what does

                 that mean for the program and how is it exited

                 out of that area, or is it actually exited?

                            SENATOR SALAND:    Well.  What is

                 distressed, for purpose of this linked deposit

                 program, is defined in the State Finance Law.

                 You may have heard some of the earlier

                 discussion in which I said we're doing nothing

                 to change the existing definition of

                 distressed -- highly distressed areas are

                 defined in Section 213 of the State Finance

                 Law.  And all we're doing is changing, in

                 effect, the formulae to reflect current data.

                             The aim of this program is to deal





                                                          2501



                 with businesses at least in part in those

                 highly distressed areas.  If in fact an area

                 is able to succeed, whether it's in part or

                 large part attributable to this type of a

                 program, it certainly establishes a pattern

                 and a growth that only augurs well, and I

                 would assume would attract additional capital

                 simply because it has shown that it's an area

                 that is a growing area, that's responsive to

                 business, that's looking to create jobs.

                            So I think in part the market will

                 respond to an area that has expanded beyond

                 the definition of highly distressed.  There

                 may be other programs that are out there.  I

                 couldn't identify those programs for you,

                 Senator Smith.  But it is -- it's a problem

                 well worth having to deal with.

                            SENATOR MALCOLM SMITH:    Madam

                 President, if the sponsor will continue to

                 yield.

                            THE PRESIDENT:    Senator, do you

                 continue to yield?

                            SENATOR SALAND:    Yes.

                            THE PRESIDENT:    You may proceed.

                            SENATOR MALCOLM SMITH:    I also





                                                          2502



                 noted in the bill itself, the last section you

                 talk about -- let's go to Section 2(b), I

                 guess it's line number 5.  But they talk about

                 the Empire Zones not being considered

                 distressed areas.  And can you explain why

                 that is so and what's the disadvantages?

                            SENATOR SALAND:    Well, the Empire

                 Zones are already benefiting by certain public

                 policy decisions that have been made to

                 provide tax credits, whether they be local tax

                 credits by way of property tax, wage credits.

                 There's a host of benefits that are focused on

                 Empire Zones.  And they too, certainly in many

                 instances, have proven to be a very, very

                 strong barometer of success in terms of

                 economic development.

                            So what we're looking to do with

                 the linked deposit program is to try and

                 assist those areas who don't already have all

                 of those public benefits that have been

                 provided by way of policy when the Empire

                 Zones were created, expanded over the course

                 of this past decade or more.

                            SENATOR MALCOLM SMITH:    Madam

                 President -





                                                          2503



                            THE PRESIDENT:    Senator Skelos.

                            SENATOR SKELOS:    Senator Smith,

                 if I could just interrupt, there will be an

                 immediate meeting of the Labor Committee in

                 the Majority Conference Room.

                            THE PRESIDENT:    There will be an

                 immediate meeting of the Labor Committee in

                 the Majority Conference Room.

                            Senator Smith.

                            SENATOR MALCOLM SMITH:    Yes,

                 Madam President, if the sponsor would yield

                 for one other question.

                            THE PRESIDENT:    Senator, will you

                 yield for one question?

                            SENATOR SALAND:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator Smith.

                            SENATOR MALCOLM SMITH:    If in

                 fact there is a, quote, unquote, small

                 business, minority business that is in the

                 zone and given -

                            SENATOR SALAND:    I'm sorry, would

                 you repeat that, Senator?

                            SENATOR MALCOLM SMITH:    If in





                                                          2504



                 fact there is a small business, a minority

                 business, woman-owned business that is in the

                 Empire Zone, however, they don't meet the

                 standards by which they can benefit from some

                 of the benefits that the Zone offers and a

                 linked program could be beneficial to them to

                 get them to that level where they can now take

                 advantage of the Empire Zone benefits, is

                 there a way in which a business can still take

                 advantage of that, or would this bill preclude

                 them from doing so?

                            SENATOR SALAND:    Senator Smith,

                 let me stand corrected.  Under the State

                 Finance Law that I referred to before,

                 Section 213, under the definition of eligible

                 projects, which is subsection 12, under

                 subsection (c) of that subsection, it provides

                 for certified businesses located in economic

                 development zones and for retail business

                 located in highly distressed areas, projects

                 that will create or retain full-time,

                 permanent jobs within the economic development

                 zone or highly distressed area, as the case

                 may be, would be defined as an eligible

                 project.





                                                          2505



                            SENATOR MALCOLM SMITH:    All

                 right.  On the bill.

                            THE PRESIDENT:    Go ahead,

                 Senator.

                            SENATOR MALCOLM SMITH:    Senator

                 Saland, first of all, let me thank you for

                 that latter definition.  Specifically in

                 New York City where Empire Zones exist,

                 sometimes we have some overlapping where some

                 of these businesses that are a little bit less

                 fortunate, they don't have the standards

                 necessary to meet the Empire Zone benefit

                 threshold.  I myself am very concerned about

                 that, and I'm glad to hear that there is a

                 potential for them to still be a part of that.

                            What I do have some more concern

                 about, and I'm hoping through the bill and

                 maybe through some further discussion perhaps

                 Senator Saland and myself can have, is the

                 marketing aspect of this particular program.

                 It just sort of boggles my mind that in

                 New York City you can have 150 banks, as you

                 said, that are involved with the program and

                 only 6 percent of the projects approved

                 actually are in downstate.  And of that





                                                          2506



                 $306 million I believe that was actually

                 approved for funding, only 7 percent went to

                 New York City businesses.

                            And clearly one of the things that

                 I think is important to the existence of any

                 program is you have to spend your money.  And

                 there's no sense in coming back for more if

                 you can't spend what you already have.  And I

                 think New York City can not only be helpful in

                 that regard, but the need is there.

                            So my hope is that there is at

                 least some discussion, and I would offer my

                 help in any great degree to make sure that the

                 marketing of this program is one that will

                 assure that these numbers adjust

                 proportionately, so that when we come back and

                 do the further enactment for another two years

                 that perhaps -- or it's permanent, I should

                 say, that New York City will be represented in

                 terms of the amount of dollars that it has

                 actually benefitted through the program.

                            Thank you.

                            THE PRESIDENT:    Senator Brown was

                 next.

                            SENATOR BROWN:    Thank you, Madam





                                                          2507



                 President.  Through you, would Senator Saland

                 yield for several questions.

                            THE PRESIDENT:    Senator, will you

                 yield for a few questions?

                            SENATOR SALAND:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed

                 with a few questions, Senator Brown.

                            SENATOR BROWN:    Thank you.

                            Senator Saland, I just listened to

                 some of the statistics on the linked deposit

                 program in the year 2000, indicating that

                 there were 878 projects approved for a total

                 of 306 million.  And I see how little the

                 New York City area -

                            SENATOR SALAND:    Would you suffer

                 an interruption, or point of order, if I may.

                            SENATOR BROWN:    Sure.

                            SENATOR SALAND:    I didn't present

                 that data.

                            SENATOR BROWN:    No, I understand.

                            SENATOR SALAND:    Oh, okay.  I

                 haven't seen that data.  Okay?

                            SENATOR BROWN:    Yeah, I

                 understand.  I understand.  It's actually in





                                                          2508



                 the annual report, Senator Saland, which

                 breaks out the success of the program.

                            And in the annual report, just from

                 looking at which areas received money, I was

                 able to see an amount for New York City.  But

                 I'm wondering, do you know how well the

                 upstate region -- Buffalo, the City of Niagara

                 Falls -- has done in terms of receiving some

                 of these loan funds?

                            SENATOR SALAND:    I do have a

                 table.  Let me see if I can identify it.

                            Your question is dealing with the

                 most recent year, the year 2000?

                            SENATOR BROWN:    Yes, Senator.

                            I believe the total amount approved

                 was $306 million.  And it looks like the

                 percentage to New York City is low.  I'm

                 hoping equally the percentage received by the

                 upstate region, cities like Buffalo and

                 Niagara Falls, is not as low as the percentage

                 received in New York City.

                            SENATOR SALAND:    Perhaps, if we

                 could, so that we're on the same page, could

                 you tell me whether you're looking at the

                 linked deposit report or the small business





                                                          2509



                 development center report?  Because if it's

                 the small business development center, linked

                 deposit is only a portion of that.

                            SENATOR BROWN:    It's information

                 that was taken out of the linked deposit

                 program annual report.

                            But perhaps you don't have that

                 data, Senator, in front of you.  So if I may,

                 let me ask another question.

                            Madam President, through you, may

                 I -- with Senator Saland's -

                            THE PRESIDENT:    You may proceed

                 with another question.  You had authorization

                 for a few.

                            SENATOR BROWN:    Thank you very

                 much.

                            Senator, are there certain

                 businesses that are not eligible to -- small

                 businesses that are not eligible to

                 participate in the linked deposit program in

                 certain categories?

                            SENATOR SALAND:    Generally there

                 are limitations on retail, loans to retail

                 businesses.  They have to meet certain

                 criteria, including being in a highly





                                                          2510



                 distressed area.  And I believe there are

                 certain job growth criteria that they have to

                 meet also.

                            There are limitations.  They don't

                 have blanket authority to be in the program.

                            SENATOR BROWN:    Then, Senator,

                 basically what your legislation is doing is

                 just updating the census data?

                            SENATOR SALAND:    It's doing two

                 things.  That is one of the two things that

                 it's doing.  It's providing for most recent

                 data, both property valuation and census

                 data -- that's one component.  And the other

                 is taking a program that has sunset twice

                 previously, and is due to sunset by the end of

                 this month, and permanentizing it.

                            SENATOR BROWN:    And, Senator, I

                 know that you have spoken to this.  In my

                 community, I'm not aware of it being

                 well-known or well-utilized.  And also, I'm

                 concerned about how it works for minority- and

                 women-owned businesses.  Do you have any data

                 for the upstate region at all?

                            SENATOR SALAND:    I have some

                 breakouts.  And you may have heard me earlier





                                                          2511



                 respond to Senator Paterson regarding

                 projects.  Nothing that I show on the table

                 that I have corresponds to any of the

                 information that you just gave me.

                            So, you know, I can -- there's a

                 host of regions, 10 to 12 regions that are

                 listed, and it shows projects on those

                 regions.  As I've said previously, certainly

                 this is in part -- I think in part your

                 concerns have to deal with marketing.  I don't

                 believe they have to deal with the substance

                 of the bill.  I'm not aware of anybody who

                 would claim that this is not an effective

                 program.

                            And I don't know if you were in the

                 chamber at the time, perhaps.  In my opening

                 remarks, I mentioned that there has never

                 been, apparently, an application for which the

                 applicant was eligible to receive the loan

                 that didn't receive the loan, although there

                 are a number of ineligible applicants who were

                 declined.

                            And it's a revolving loan program.

                 The loans are of short duration.  That may

                 influence the decisions of some as to whether





                                                          2512



                 or not to get into the program.  Because the

                 loans are generally of a duration of a couple

                 of years.  So people may decide that's not a

                 long enough term for them to try and

                 participate in this type of a program.

                            But the program has been, by any

                 standard, a success.  And I can only suggest

                 to you that if the marketing has been

                 inadequate in your area or your district, you

                 may want to at least participate in making it

                 better known by working through your local

                 chambers or chambers of commerce or trying to

                 work with perhaps your local media to

                 highlight the success of it.

                            SENATOR BROWN:    Thank you,

                 Senator.

                            Madam President, if I may, on the

                 bill.

                            THE PRESIDENT:    Senator Brown,

                 you may proceed.

                            SENATOR BROWN:    Thank you.  I

                 want to thank Senator Saland for responding to

                 my questions.

                            I just recently received some

                 information on the program from Mr. Gargano





                                                          2513



                 and was interested in receiving the

                 information and reading about the program and

                 learning about the kind of services that it

                 provides to small businesses.  Upon reading

                 about the program, though, I was struck

                 because during my tenure as a City Council

                 member in the city of Buffalo, I had not heard

                 a lot about the program.

                            And as a council member, of course

                 I'm always approached by small businesses,

                 minority-owned businesses, and women-owned

                 businesses looking for ways to access

                 resources.  And this did not appear to me to

                 be a program that the business community in

                 the area that I now represent as a State

                 Senator -- Buffalo, Niagara Falls -- and I'll

                 be looking more into this, had a lot of

                 information about or was accessing, and I'm a

                 little bit concerned about that.

                            Particularly in Buffalo and Niagara

                 Falls, the urban areas where a large

                 percentage of minority businesses are located

                 are tremendously distressed, with a very high

                 unemployment rate.  And this certainly sounds

                 like a program that those types of businesses





                                                          2514



                 could benefit from.

                            So, Senator Saland, I will be

                 following your suggestion to reach out to the

                 regional Empire State Development Corporation

                 Office and try to get some data on the program

                 and how it's operated in the upstate region

                 and see what service that I can be in trying

                 to get this information about the linked

                 deposit program to businesses in my region so

                 they can take advantage of it.

                            Just recently, as probably you all

                 know, the census data was released, and

                 Niagara Falls lost about 10 percent of its

                 population and the City of Buffalo lost about

                 10 percent of its population.  And I think

                 that this can be attributed directly to the

                 poor economy in those areas.  And certainly

                 anything that can be done to energize those

                 economies and help businesses to grow and

                 create jobs is important to the health of

                 those communities and their citizens.

                            So I do support this legislation

                 and will be working to try to bring this

                 linked deposit program to the attention of

                 businesses in my district.





                                                          2515



                            Thank you.

                            THE PRESIDENT:    Senator

                 Oppenheimer.

                            SENATOR OPPENHEIMER:    I'm very

                 supportive of moving to the current census

                 figures, because that will definitely benefit

                 my area.

                            I have one small question, if the

                 Senator would yield for a question.  It

                 probably takes one word in response.

                            THE PRESIDENT:    Senator, do you

                 yield?

                            SENATOR SALAND:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed.

                            SENATOR OPPENHEIMER:    You might

                 have answered this.  Are there any plans to

                 expand priority lending beyond just government

                 contracts to the women- and

                 minority-owned-business program?

                            SENATOR SALAND:    There's

                 nothing -- I might not be the appropriate

                 person to answer your question, Senator.

                 There's nothing substantively that changes in

                 the program.  We're permanentizing a program





                                                          2516



                 that's due to sunset, and we're providing more

                 current data in order to help make decisions

                 with regard to highly distressed areas.

                            There may be initiatives that do

                 what you have just alluded to, but I can't

                 tell you that I'm personally familiar with

                 them.  You might want to contact Empire

                 Development and check that out with them.

                            SENATOR OPPENHEIMER:    Thank you

                 very much, Senator Saland.

                            On the bill.  It's a pleasure to

                 see us using current statistics.  It doesn't

                 happen all that often in state government.

                 And I think that will be beneficial to

                 downstate.

                            And I think we do have to address

                 the issue of having a better outreach

                 downstate than we have had, because we really

                 ought to be accessing a whole lot more than 6

                 to 7 percent of the funds.

                            But in the case of my county, we -

                 there are two reasons that really make me

                 appreciate this bill.  One is that we view

                 small business as being what we call big

                 business in Westchester.  Because our big





                                                          2517



                 business, we have had many large corporations

                 downsize in our county.  I mean, some of the

                 Fortune 500 companies.  And when they

                 downsize, it's many, many thousands and

                 thousands of jobs that get taken away.  And we

                 have had -- many people have decided to stay

                 in Westchester and start small businesses.

                            So I think that this can be more

                 beneficial to us in the future, particularly

                 in light of the new census figures.  Because

                 the new census figures show us as having an

                 enormous increase in the amount of immigrants

                 in our county, and they are looking to

                 starting small businesses.

                            So while we have not utilized these

                 funds too much in the past, I am hopeful with

                 the new census figures that my county will be

                 able to access some of this linked deposit

                 money and benefit some of our newest residents

                 in the county, the immigrants that have come

                 in in the last decade.

                            So thank you, Senator Saland.

                            THE PRESIDENT:    Does any Senator

                 wish to be heard further?

                            Then the debate is closed.  Read





                                                          2518



                 the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            THE PRESIDENT:    The bill is

                 passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 there will be an immediate meeting of the

                 Transportation Committee in the Majority

                 Conference Room.

                            THE PRESIDENT:    There will be an

                 immediate meeting of the Transportation

                 Committee in the Majority Conference Room.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 would you call up Calendar Number 106, by

                 Senator Volker.

                            THE PRESIDENT:    The Secretary

                 will read Calendar 106.

                            THE SECRETARY:    Calendar Number

                 106, by Member of the Assembly Lentol,

                 Assembly Print Number 1437, an act to amend





                                                          2519



                 the Civil Practice Law and Rules, in relation

                 to requiring.

                            SENATOR PATERSON:    Explanation.

                            THE PRESIDENT:    Senator Volker,

                 Senator Paterson has requested an explanation.

                            SENATOR VOLKER:    Madam President,

                 this is one of our early session success

                 stories, I hope.  This is a bill that came

                 initially from the New York City Bar

                 Association.  And it has been adopted by the

                 New York State Bar Association -- what is it,

                 trust and estates section, I guess -- in an

                 attempt to straighten out some court cases and

                 law relating to the waiver of professional

                 privileges.

                            It tries to set up a uniform

                 procedure for the waiver of professional

                 privileges when the person, the communicant

                 has died or is incapacitated or disabled.

                 There have been various statutes and, in

                 addition to that, there are some court cases

                 that have left this area in some cases in

                 limbo.

                            What it means is that -- what this

                 bill attempts to do is to provide the ability





                                                          2520



                 to, for instance, a representative, an

                 executor, an administrator, or in some cases

                 trustee or whatever, to be able to get around

                 the so-called waiver that we used to call the

                 dead man's statute waiver in these cases, and

                 allow a court to deal with all the facts in

                 the case.

                            It does have a procedure to refuse

                 to disclose if it would disgrace the memory or

                 reputation of the communicant and so forth,

                 which -- and there are some protections in it

                 to try and make sure of that.

                            The bill, as you heard, has already

                 passed the Assembly.  Joe Lentol and I have

                 having working on this for a number of years.

                 And a lot of lawyers have told us that this is

                 something that could be extremely useful.

                            ACTING PRESIDENT KUHL:    Senator

                 Paterson, why do you rise?

                            SENATOR PATERSON:    Mr. President,

                 if Senator Volker would yield for a few

                 questions.

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you yield to a question from

                 Senator Paterson?





                                                          2521



                            SENATOR VOLKER:    Certainly.

                 Sure.

                            ACTING PRESIDENT KUHL:    The

                 Senator yields.

                            SENATOR PATERSON:    Senator, I'd

                 assume that since the Bar Association is in

                 support that there would not be any cases -

                 and this is my fear, that there would be cases

                 where the disclosure of information would be

                 forced upon a professional even though there

                 had been an express desire on the part of the

                 communicant, as is described in Section 103 of

                 the Surrogate's Court Procedure Act, that

                 there would be an express desire not to have

                 this information revealed.  Is that correct?

                            SENATOR VOLKER:    Right, I think

                 the thing -- yeah, that's correct.

                            What they're really looking for

                 here, or what the bar has suggested, is that

                 in reality sometimes the lack of a waiver

                 actually works in reverse.  That is, it works

                 against the best interests of the person who

                 the person involved is representing.  And in

                 effect what happens is that the person is

                 virtually barred from making certain





                                                          2522



                 representations because of the present

                 statute.

                            By the way, there was opposition

                 initially, just to put it all on the record.

                 Initially the New York State Psychological

                 Association, I think, objected back in '96.

                 They've withdrawn their objection now since we

                 made some amendments to this bill.

                            As far as we know, there are no

                 objections by anybody.

                            ACTING PRESIDENT KUHL:    Senator

                 Paterson.

                            SENATOR PATERSON:    Mr. President,

                 if Senator Volker would yield.

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you continue to yield?

                            SENATOR VOLKER:    Certainly.

                 Sure.

                            ACTING PRESIDENT KUHL:    The

                 Senator continues to yield.

                            SENATOR PATERSON:    I want to

                 start with your last point, Senator.  And that

                 related to the objection of many who work in

                 the psychology field toward this legislation.

                 And I think what their objection was, and I'm





                                                          2523



                 just going to raise it with you -- and perhaps

                 not only can you persuade me, but you might

                 even let me know how the psychologists were

                 persuaded.

                            I think that their objection was

                 that it appeared that the court would be

                 making the determination of what was

                 incapacity and that the court would be making

                 the determination of at what point we would

                 want the professional to speak on behalf of

                 the communicant.

                            Is that what their objection was?

                            SENATOR VOLKER:    Senator, to be

                 perfectly honest with you, I really am not

                 exactly sure what their objection was, since

                 it hasn't been made since '96.  But I think

                 you're right.  I'm pretty sure that -- my

                 recollection is that they were concerned.

                            You and I know that the problem, I

                 think, is that we have to have somebody who is

                 an arbitrator.  And in our system, we set up a

                 system where in effect the arbitrator is the

                 judge.  And it's designed to be in the best

                 interests of the person who is involved,

                 obviously within reason.





                                                          2524



                            I think that the reason that the

                 psychologists withdrew their objections is

                 that the assumption, if there was some sort of

                 objection on the terms -- in terms of

                 something that the psychologists could offer,

                 the judge -- that an attorney could clearly

                 bring in a person to testify to that, and that

                 they would be able to make their point.  And

                 so someone would have to decide; in this case,

                 it would be a judge.

                            ACTING PRESIDENT KUHL:    Senator

                 Paterson.

                            SENATOR PATERSON:    Mr. President,

                 if Senator Volker would continue to yield.

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you continue to yield?

                            SENATOR VOLKER:    In fact,

                 Senator, maybe I could -- my learned counsel

                 here has just informed me that the language

                 added to deal with the psychologists -- and

                 since my son is about to get his doctoral in

                 clinical psychology, I suppose it's something

                 I'm a little sensitive to.  It says:  "The

                 guardian of a person under disability is

                 defined in Section 103 of the Surrogate's





                                                          2525



                 Court Procedure.  And if and to the extent

                 that the order appoints such guardian, the

                 Mental Hygiene Law or subsequent order

                 expressly provides the guardian is to be the

                 personal representative of the person under

                 this" -- for purposes of this section, and it

                 goes on to tell how this would work and so

                 forth, and -- in an attempt to deal with some

                 of the issues that they were concerned about.

                            ACTING PRESIDENT KUHL:    Senator

                 Paterson.

                            SENATOR PATERSON:    Thank you,

                 Senator.  If the Senator would continue to

                 yield.

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT KUHL:    The

                 Senator continues to yield.

                            SENATOR PATERSON:    Senator, if

                 the person who was holding the privileged

                 communication happened to be the spouse, is

                 there any conflict based on the -- in other

                 words, which values are favored by the court,

                 the spousal rights or what would be the new

                 standards that we're setting for communication

                 of a decedent or incapacitated individual's





                                                          2526



                 confidential communication?

                            SENATOR VOLKER:    I think the way

                 that this is structured is that the -- if you

                 are a representative, the main interest would

                 have to be the person who is represented by

                 that -- is represented to the court.  So the

                 main interest would be that of the decedent or

                 the disabled person or whatever.

                            But the court also would have to

                 consider the interest of a spouse, whether it

                 be whatever.  But I think the main interest,

                 if you look at the way that this is

                 structured, would have to be the interests of

                 the person that is represented.

                            SENATOR PATERSON:    And just one

                 other question -

                            SENATOR VOLKER:    Sure.  Yup.

                            SENATOR PATERSON:    -- before I

                 get to my point on this, Senator.  And that

                 relates to how this is effected in other

                 states.  Is this something where we are going

                 into a new area, or is this something that

                 the -- I'm just trying to get an idea of where

                 we stand with relevance to the rest of the

                 country on this.





                                                          2527



                            SENATOR VOLKER:    It's a very good

                 question.  I suspect strongly that we probably

                 are moving ahead of other states in this area.

                 I'm reading a memo here of the New York State

                 Bar Association, and it really obviously is

                 talking primarily about this state.  But I

                 strongly suspect that we probably may be ahead

                 of many other states in trying to develop

                 uniform rules in a disclosure area.  I really

                 don't have any information as far as other

                 states are concerned.

                            SENATOR PATERSON:    Okay.  And if

                 Senator Volker would yield for another

                 question.

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you yield for another question?

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT KUHL:    The

                 Senator yields.

                            SENATOR PATERSON:    Senator, I'm

                 just curious about the point at which the

                 court instructs the lawyer to divulge the -

                 what was previously privileged information.

                 In a civil case, is the law that we're passing

                 protecting this new communication from an





                                                          2528



                 allegation from the other side that it's

                 actually hearsay information?

                            In other words, because we've

                 opened the door to allow this to happen, could

                 we get a challenge as a hearsay exception from

                 the adversarial party in a civil case, is my

                 real question.

                            SENATOR VOLKER:    You know, this

                 is designed -- it's designed really to protect

                 the person who is deceased or disabled or

                 whatever, primarily.  So that when you're

                 talking about this -- and I'm just reading

                 here another section that relates to

                 physicians, psychiatrists, and so forth.  And

                 it talks about how the privilege -- how this

                 privilege would be set up.

                            The privilege in effect would have

                 to be invoked or waived, as I understand it,

                 by the person who is, depending on the

                 situation, the person who is the

                 representative.  So that it would be the best

                 interests, in effect, of that person who is

                 the representative to be able to waive this

                 privilege.

                            If not, why, then, that person





                                                          2529



                 would presumably be opposing, for one reason

                 or another -- would probably oppose it, and

                 the judge would then be in the situation where

                 the waiver could be -- wouldn't actually

                 happen.

                            SENATOR PATERSON:    It would be

                 challenged.

                            SENATOR VOLKER:    It would be

                 challenged, right.  Exactly.

                            SENATOR PATERSON:    So therefore,

                 Senator, what is really happening in this

                 situation -- and I guess this is what takes it

                 out of the hearsay rule, is the fact that -

                 and this is my next question, if the Senator

                 would yield.

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you yield to another question?

                            SENATOR VOLKER:    Yup.

                            ACTING PRESIDENT KUHL:    The

                 Senator yields.

                            SENATOR PATERSON:    That for want

                 of a better comparison, this would in a sense

                 exact on the representative a kind of power of

                 attorney, almost not only literally but

                 figuratively, that this person, who is an





                                                          2530



                 attorney but sometimes is not in these

                 proceedings, is given the power to speak for

                 this individual and therefore, since it's been

                 agreed to, then it really wouldn't qualify as

                 hearsay.

                            That's my interpretation.  I'm just

                 wondering what you thought of it.

                            SENATOR VOLKER:    Yeah, that's

                 right, Senator.  I think it's almost like the

                 health care proxy extended -- it may be a bad

                 analogy here.

                            If the person who -- the

                 representative sort of stands in the stead of

                 the person who has died or is disabled or

                 whatever.  And, you're right, not -- that

                 would negate, in a sense, the hearsay rule,

                 depending on whether it would have benefited

                 him or didn't benefit him.  And that person

                 would stand in the same stead as the person

                 who is deceased or disabled.

                            ACTING PRESIDENT KUHL:    Senator

                 Paterson.

                            SENATOR PATERSON:    Mr. President,

                 a final question for Senator Volker.

                            ACTING PRESIDENT KUHL:    Senator





                                                          2531



                 Volker, do you continue to yield?

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT KUHL:    The

                 Senator continues to yield.

                            SENATOR PATERSON:    Senator, what

                 I'd like to do is to just kind of reflect on

                 the bill myself and just get your reaction to

                 it.  I don't see any problem with it,

                 particularly with the number of organizations

                 that support it.

                            I was wondering if you would just

                 state what the confusion has actually been.

                 Because my original premise, my original

                 thought when I read this bill is wouldn't the

                 person's representative be really the better

                 judge of what the wishes of the decedent or

                 the incapacitated person is, or wouldn't the

                 representative be better able to assess what

                 would disgrace the reputation or memory of the

                 decedent in these types of cases.

                            Why would we turn it over to the

                 court, who presumably is rendering a judgment

                 without all of the information, as the

                 person's legal or otherwise representative

                 has?





                                                          2532



                            SENATOR VOLKER:    Well, Senator, I

                 think that the reason for this legislation,

                 more than anything, relates to the fact that

                 there are privileges that are held by

                 different individuals -- that is, different

                 areas:  physicians, for instance, lawyers, all

                 that sort of thing.  And what is trying to be

                 done here is to develop a uniform procedure.

                            The judge -- the job of the judge

                 really is to deal with the issue of the person

                 who is the representative making his or her

                 contention, assuming to waive, based on the

                 basis of what's in the best interests and what

                 evidence there of what that person indicated

                 or whatever, in the best interests of the

                 person who is being represented.

                            So I guess the answer is it would

                 become pretty obvious to any judge that if

                 something that would be allowed in would

                 clearly disgrace the person, that

                 representative would be absolutely -- their

                 charge would be to uphold that.  And if for

                 some reason that person doesn't do that, then

                 I guess it would be the judge's -- someone

                 even other than that representative could make





                                                          2533



                 that contention.

                            But it would be presumed to be the

                 individual who is the representative who would

                 make the contention, and the judge would just

                 rule in the favor of the person that that

                 evidence couldn't come in because it would

                 disgrace that person or create a problem, you

                 know, after the person's death -- the memory

                 or the reputation and so forth.

                            ACTING PRESIDENT KUHL:    Senator

                 Paterson.

                            SENATOR PATERSON:    I want to

                 thank Senator Volker very much for his

                 answers.

                            Mr. President, on the bill.

                            ACTING PRESIDENT KUHL:    Senator

                 Paterson, on the bill.

                            SENATOR PATERSON:    In spite of my

                 anxiety over the court making the final

                 determination when the court could not have

                 had the requisite information that I think

                 would be needed to make that determination,

                 when that would actually lie with the

                 representative, and we also have the tricky

                 issue of people who are incapacitated who at





                                                          2534



                 times may not be incapacitated -- they may be

                 in full possession of their faculties at

                 certain periods and may have changed a will or

                 a codicil or something -- and this behavior

                 and conduct would be best apprised by the

                 person's representative at some proceeding.

                            It does seem that this is going on

                 a lot.  And what the Bar Association wanted to

                 do was to codify it, because the laws are too

                 strict on this right now.  And rather than

                 just working around the law and making the law

                 void for its vagueness, they have tried to

                 really write it into our current law, and I

                 commend them for that.

                            And in spite of the fact that I

                 just have that apprehension, I would be

                 willing to look at the fact that they've been

                 through this and researched this, and

                 certainly Senator Volker is up on that, and

                 for now I'll defer to their judgment and vote

                 for the bill.

                            Thank you, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Dollinger, why do you rise?

                            SENATOR DOLLINGER:    Mr.





                                                          2535



                 President, will the sponsor yield to a couple

                 of questions, please.

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you yield to a question from

                 Senator Dollinger?

                            SENATOR VOLKER:    Yes.

                            ACTING PRESIDENT KUHL:    He

                 yields.

                            SENATOR DOLLINGER:    Senator, as

                 always, these bills that come from you have

                 tremendous thought behind them.  I'm

                 encouraged by the fact that this bill may

                 become law.  But there are a couple of things

                 I just want to clarify for the record and make

                 sure I understand.

                            Through you, Mr. President, the

                 first question.  The bill only applies to

                 actions brought under either the Surrogate's

                 Court Procedure Act or the Estates, Powers and

                 Trusts Law.  Why isn't it applicable to all

                 civil actions under the CPLR?

                            SENATOR VOLKER:    Senator, my

                 counsel, in typical fashion, gave me the

                 answer -- which I was pretty sure was the

                 answer -- and it's one reason why this bill is





                                                          2536



                 now before us from the Assembly, because the

                 Assembly wouldn't go along with anything else.

                 A very good legal reason.

                            SENATOR DOLLINGER:    The old

                 Assembly-won't-go-along-with-it answer,

                 Senator?  I can appreciate that.

                            SENATOR VOLKER:    I mean, this

                 bill has been here since '96, and we've been

                 trying to get an agreement.  And very

                 honestly, we've been negotiating it.  And

                 that's really the reason that it's restricted

                 as it is.

                            And if you kind of read the memo,

                 the memo actually talks about a little bit

                 broader bill.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, if Senator Volker will continue

                 to yield.

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you continue to yield?

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT KUHL:    The

                 Senator continues to yield.

                            SENATOR DOLLINGER:    Senator, I'm

                 just trying to make sure I understand how this





                                                          2537



                 progresses.  Because there are different

                 waivers triggered by the different sections

                 under different circumstances.

                            As I understand, Section 3 says

                 that the personal representative shall have

                 the ability to waive or decline the waiver of

                 the privilege under almost any circumstance.

                            SENATOR VOLKER:    Yeah, that's

                 pretty well true.  And then remember here that

                 the judge doesn't get involved, essentially,

                 unless there is a dispute.  I think that's one

                 thing that should be understood here.

                            Basically, the -- one of the issues

                 here is that if somebody has to raise an

                 objection or whatever, it is -- by the way, it

                 is presumed that the representative, under the

                 law, is supposed to be acting in the best

                 interests of the person represented, under

                 present law.  So when a person either waives

                 or doesn't waive, it is presumed that that

                 person is acting in the best interests,

                 because under the present law, the Surrogate's

                 Procedure Act and Estates Powers, the person

                 is mandated to do that.

                            SENATOR DOLLINGER:    Right.





                                                          2538



                 Through you, Mr. President, if Senator Volker

                 will continue to yield.

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you yield to another question from

                 Senator Dollinger?

                            SENATOR VOLKER:    Yes, I do.

                            ACTING PRESIDENT KUHL:    The

                 Senator yields.

                            SENATOR DOLLINGER:    Your answer,

                 Senator Volker, leads to the exact reason for

                 my question.  Oftentimes, as you know, the

                 beneficiary of an act by the testator, either

                 a gift just before death or a gift in the will

                 itself, is also the personal representative.

                 And so as a consequence -- and as you know,

                 very well know, since you do a bunch of

                 Surrogate Court work, the privilege can be

                 used both as a sword and as a shield.

                            And my question is, if the personal

                 representative is the beneficiary of that

                 gift, are they permitted to use the -- to

                 assert the privilege as a shield to protect

                 the nature of their own gift?

                            As you know, I know, Senator, that





                                                          2539



                 gift would be presumed to be valid because it

                 was made by a testator who was aware of his

                 faculties and conscious and able to make their

                 own judgment.  And then a contestant, a

                 brother or sister who's left out of the will

                 and finds there's nothing left in the will

                 walks in and says:  Wait a second, I want you,

                 Mr. Attorney, to testify about the

                 conversation that you had with my dad about a

                 gift that he gave to my brother -- who happens

                 to be the executor -- and the executor says,

                 Wait a second.  I'm not going to allow that.

                 I'm going to assert that and silence the

                 attorney not to disclose that.

                            SENATOR VOLKER:    Well, as you

                 know, the situation essentially is that now we

                 really don't change that.  But that would set

                 up a situation, by the way, that if somebody

                 was contesting, then that would set up a

                 situation where whatever the decision of that

                 representative is would be something that the

                 judge would then look at.

                            As you and I both know now, the bar

                 and actually the Court of Appeals has set up

                 some really much more stringent guidelines on





                                                          2540



                 what has to be done if you draw a will and you

                 are the executor, and especially if you're a

                 beneficiary, there are certain procedures that

                 you have to go through.  In fact, a lot of

                 attorneys have gotten very nervous about that,

                 as I think they should on these kinds of

                 proceedings, just because of that.

                            So we don't change any of that, any

                 of that additional.  And I would think if an

                 attorney, for instance, who was also an

                 executor and a beneficiary were in this kind

                 of situation, it would probably be virtually

                 an automatic question for the judge of whether

                 his waiver of something might be in his best

                 interest.

                            I think the only argument is always

                 the argument, and the question is presently,

                 if no one objects, it is true, then, it's

                 really the surrogate just makes a decision

                 based on whatever facts he has there.

                            Our surrogate, when he sees

                 something like this, by the way, irrespective

                 of this waiver or not, really tends to be

                 very, very cautious, because he knows that

                 these are the kinds of things that can be





                                                          2541



                 very, very touchy and have led to huge

                 criticism.

                            But this really doesn't change that

                 situation as far as the

                 attorney-executor-beneficiary situation.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, if Senator Volker will continue

                 to yield.

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you continue to yield?

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT KUHL:    The

                 Senator continues to yield.

                            SENATOR DOLLINGER:    In Section 4

                 of the bill, Senator, you set up a provision

                 under which the privilege could be waived by

                 any party in interest.  And my question is,

                 just to clarify this, does this mean that if

                 the -- a representative asserts the privilege,

                 if it involves one of the various types of

                 transfers that's talked about in this bill -

                 gratuitous transfers, pretestamentary

                 transfers -- is the suggestion that any party

                 in interest can force the waiver by the

                 personal executor, or -- I don't understand





                                                          2542



                 how that works with the seeming reservation of

                 the right of the personal representative to

                 either waive or decline to waive it in the

                 previous section.

                            SENATOR VOLKER:    I think what

                 they're saying here is that if there is a

                 continuation that the waiver would be -- you

                 know, the waiver by the representative would

                 cause irreparable harm, for instance, to a

                 surviving spouse or distributee or whatever,

                 and there's something that is not in the best

                 interests -- for instance, could be not in the

                 best interests of either the person

                 represented or the surviving spouse, that then

                 they could make an objection and at least put

                 in whatever continuation they had, whatever

                 evidence they had.

                            That doesn't mean, by the way, that

                 the waiver would occur.  It just means that

                 there is the ability to at least make your

                 argument before a judge.  And remember, by the

                 way, that's one of the things -- this

                 limitation to Surrogate's Court now is

                 essentially what we're talking about.  And I

                 suppose that might be more of a problem.  I





                                                          2543



                 think that's probably one of the reasons the

                 Assembly was nervous, if you allowed this

                 outside of Surrogate's Court.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, I have just one other question

                 on this bill, if Senator Volker will continue

                 to yield.

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you continue to yield?

                            SENATOR VOLKER:    Yes.

                            ACTING PRESIDENT KUHL:    The

                 Senator continues to yield.

                            SENATOR DOLLINGER:    Senator, you

                 use as a term of art in this bill, which is

                 the test for a court order granting access to

                 look beyond the privilege, and you talk about

                 if it would tend to disgrace the memory or it

                 would cause substantial and identifiable harm

                 to others.

                            Could you just give an example of

                 what you intend by that?  And again, the

                 reason why I ask this question is because

                 clearly, if someone walked in and said, The

                 testator gave me a million-dollar gift before

                 he died and therefore it doesn't go to his





                                                          2544



                 son, it goes to me instead, I mean, there's a

                 serious question as to what that

                 identifiable -- substantial and identifiable

                 harm.

                            I know we use those terms a lot.

                 But what do you envision as meeting that test?

                            SENATOR VOLKER:    Well, you can

                 envision, I guess, a number of things.  But,

                 for instance, the hidden lover -

                            SENATOR DOLLINGER:    Paternity

                 question or -

                            SENATOR VOLKER:    Right.  There's

                 a number of things that may come to mind that

                 if it were -- if it became common knowledge

                 or, you know, was allowed to -- could in fact

                 not only embarrass the dead person or

                 whatever, or the disabled, but also the

                 family, the surviving spouse, a series of

                 things.

                            I think that's what was really

                 envisioned there.  Whether it's the attorney's

                 affair or the affair of the person who is

                 represented.

                            SENATOR DOLLINGER:    Through you,

                 Mr. President, just briefly on the bill.





                                                          2545



                            ACTING PRESIDENT KUHL:    Senator

                 Dollinger, on the bill.

                            SENATOR DOLLINGER:    I commend

                 Senator Volker for his persistence.  This

                 bill, which the Assembly has passed, ought to

                 become a law.

                            But like many other bills, this is

                 one that's going to have an interesting round

                 through the courts.  I think that people will

                 look at it and suggest -- and I understand the

                 Assembly wasn't willing to pass the civil

                 practice portion of this.  But it's a shame

                 we're not doing this in civil practice as

                 well, because this very issue -- that is, the

                 exercise of a privilege on behalf of a

                 deceased -- comes up in real property

                 transfers, it comes up in gift transfers, it

                 can come up in corporate stock disputes.

                            There are a whole gamut of

                 potential instances in which the assertion of

                 the dead man's privilege or the assertion of a

                 privilege between, as this bill affects,

                 lawyers, doctors, psychologists, and social

                 workers, where those assertion of privileges

                 can really stimy a litigant at finding out the





                                                          2546



                 truth.

                            Two other quick points, and I'll

                 address the one I -- the last one I addressed

                 with Senator Volker.  The most interesting

                 thing about the phrase "substantial and

                 identifiable harm to others" -- Senator Volker

                 properly points out what could it be, the

                 paternity question, things that involve moral

                 judgment.  The only problem with that, Senator

                 Volker, is that those are the hotly contested

                 cases.

                            Those are cases where an

                 unaffiliated child shows up and claims

                 paternity, or there are people outside the

                 family chain who are beneficiaries in a will.

                 And those are the kind of hotly contested

                 issues in which the privilege is directly

                 implicated.

                            And so I just think the courts are

                 going to be searching for some test of that,

                 not -- remember, we're not talking about in

                 this section of the bill the harm to the

                 individual, we're talking about the harm to

                 others.  And I think it will be interesting to

                 see how the courts try to fashion a test for





                                                          2547



                 what that really means.

                            We've set the bar pretty high.

                 We've set it as it has to be substantial and

                 it has to be identifiable.  But I just think

                 if we had the ability to go back and perhaps

                 refine that definition or give the courts a

                 little bit of guidance, it would be

                 well-advised.  I understand that the Assembly,

                 somewhat being dragged along on this bill, may

                 not want to do that.  But I think that will be

                 a source of some uncertainty in the courts.

                            And the final conclusion, Mr.

                 President -- although I'm going to vote in

                 favor of this bill, because I think it does a

                 good thing in providing a general blueprint

                 for the courts to deal with.  But I think that

                 the question of the contested waiver that

                 suggests that any party in interest may push

                 the waiver in the circumstances described in

                 paragraph 4, I think the courts are going to

                 look at that and say that is going to be

                 somewhat in conflict with the provision in

                 paragraph 3 which says that the personal

                 representative alone can decide whether to

                 waive or assert the privilege.





                                                          2548



                            And I think that there's going to

                 be some confusion in the courts there.  My

                 sense, based on what Senator Volker has told

                 us, is that the Section 3 says that the waiver

                 or the ability to waive rests solely in the

                 personal representative except in those

                 instances in which there's a gratuitous

                 transfer or other instances, and then under

                 those circumstances, because of the

                 truth-finding requirement in the court, we're

                 going to allow anyone who objects or any party

                 to open up the conversations between the

                 decedent and their professional so that we can

                 find out what really happened.  And all the

                 parties with objection to a will or other

                 contest will be able to get that information.

                            I think this bill advances our

                 common law.  I think it's a good amendment to

                 clarify this notion of what happens when

                 someone who's a critical player in a family or

                 a corporation dies.  I only regret that it's

                 not applying to all civil actions so that we

                 could finally clarify this whole question of

                 what to do when a critical player -- the

                 father of a family or the leading stockholder





                                                          2549



                 of a corporation -- what to do when they die

                 and they've made disclosures to all their

                 professionals about what they intended, what

                 they wanted to do, and what the scope of their

                 bequests would be.

                            So I'm going to vote in favor, Mr.

                 President.  I again commend Senator Volker.

                            ACTING PRESIDENT KUHL:    Senator

                 Bruno.

                            SENATOR BRUNO:    Mr. President,

                 can we at this time temporarily lay this bill

                 aside.  And I would ask that we return to the

                 reports of standing committees.

                            I believe there's a report from the

                 Finance Committee at the desk.  I would ask

                 that it be read at this time.

                            ACTING PRESIDENT KUHL:    We will

                 lay aside the bill temporarily and move on to

                 reports of standing committees.

                            And I ask the Secretary to read the

                 report of the Finance Committee which is at

                 the desk.

                            THE SECRETARY:    By Senator Bruno,

                 Concurrent Resolution Number 946, adopting a

                 budget resolution proposing amendments to the





                                                          2550



                 2001-2002 Executive budget submission.

                            ACTING PRESIDENT KUHL:    Senator

                 Bruno.

                            SENATOR BRUNO:    Move the

                 resolution, Mr. President.

                            SENATOR CONNOR:    Explanation.

                            SENATOR BRUNO:    Mr. President, by

                 way of explanation, this is our budget

                 resolution that hopefully will move us towards

                 negotiating a budget with the State Assembly.

                            And this resolution, when fully

                 implemented, will total about $84.1 billion.

                 But the resolution really is focused on

                 economic development, job creation, doing all

                 the kinds of things that have been important

                 to the people of this state over these last

                 six years.

                            So we have been proud of our record

                 here in this house in partnering with the

                 Governor and moving our economy forward.  So

                 the essence of this financial plan is a

                 $1.8 billion tax-cut package that returns

                 money to businesses, keeps money with

                 businesses, keeps money in people's possession

                 where they can go out and spend it on things





                                                          2551



                 that they believe are important to their own

                 families and their own lifestyle.

                            The essence of that $1.8 billion is

                 a $500 million Ge-NY-sis package, that we call

                 Ge-NY-sis, generating jobs through science,

                 relating more to biotech, biomed research, job

                 creation, technology development.  We believe

                 that will just project New York forward in an

                 area that's critically important to everyone.

                            There's $625 million in this

                 resolution for roads and for bridges to go out

                 this year.

                            And we are expanding the Empire

                 Zones here in this state.  There are 52.  They

                 encompass two miles.  We're expanding those to

                 four miles.  There are six additional that

                 qualify by law.  We are recommending strongly

                 that we add 14 applicants for those six.

                 We're suggesting that all 14 be included.  And

                 that includes about $325 million of that tax

                 cut package.

                            There's $925 million in school aid.

                 We know how critically important that is.

                 That has always been a priority of the Senate,

                 educating our young people.  And we are





                                                          2552



                 following on three years of record increases

                 in school aid here in this state.

                            Health care, critically important.

                 About $210 million is included in this

                 resolution for that.

                            We have $79 million over the next

                 several years in revenue sharing, $70 million

                 for agricultural assistance, $20 million for

                 what we call the road to recovery, to help

                 people who are addicted to alcohol or drugs.

                            We have also, which will follow

                 this resolution, our budget reform package.

                 Because when we don't have a budget for the

                 people of this state, everyone hurts and

                 suffers.  They suffer in many ways.  They

                 suffer financially, and dollars are literally

                 wasted.

                            But we think that this plan that we

                 present is comprehensive, it's reasonable,

                 it's realistic, and it sets $4.4 billion aside

                 for whatever uncertainties that may exist next

                 year, with our economy being questionable as

                 to how robust it will be.  We think it's

                 prudent that we keep a reserve.

                            And we think we are being realistic





                                                          2553



                 when we add about $1.2 billion overall to the

                 Governor's spending plan that he submitted to

                 us in January.

                            So I would submit this to my

                 colleagues here and ask for your support.

                            Thank you, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Connor, why do you rise?

                            SENATOR CONNOR:    Yes, Mr.

                 President, on the resolution.

                            ACTING PRESIDENT KUHL:    Senator

                 Connor, on the resolution.

                            SENATOR CONNOR:    Thank you, Mr.

                 President.

                            I certainly appreciate the many

                 good things in the Majority's budget

                 resolution, some restorations that were made

                 to proposals that the Governor made that would

                 really have made, in my opinion, some unwise

                 cuts.

                            I also share Senator Bruno's

                 concern that we need to be prudent.  I too

                 have been worried about the Bush economy,

                 having seen the last Bush economy.  And I do

                 worry at that in the future year we may need





                                                          2554



                 to keep significant reserves in anticipation

                 of an adverse economic downturn.

                            But I think we can spend more.  I

                 think we should spend more in a couple of key

                 areas.  Number one is education.  Because it

                 is our state's future, it's the future of our

                 economy.  And because we need only read the

                 Supreme Court justice's decision in the CFE

                 case to understand how we have not provided

                 sufficient funds to many of our children, not

                 just in New York City but in many areas of the

                 state, for a lot of historical reasons.  It's

                 not a blame-casting exercise.  But it's time

                 now to focus on where these needs are.

                            So we will be offering an amendment

                 to provide sufficient funds to take that first

                 step toward ensuring a sound, basic education.

                 Yes, we've put more money into school aid over

                 the past years, unprecedented amounts.  But

                 it's clear it hasn't been enough.  The future

                 of this state is based on education.  The

                 future of our children depends on a quality

                 education.  We must provide a sound, basic

                 education in the rural areas of this state,

                 the urban areas of this state, and every other





                                                          2555



                 area of the state.

                            So the amendment we will offer will

                 not deprive a single school district in this

                 state of a penny.  A mere handful will stay at

                 the same level, and every school district in

                 the state will get increased school aid -

                 some more than others, based on special

                 needs -- but every school district will get

                 more money than it would under the Majority

                 resolution.  Which I recognize is better than

                 the Governor's proposal.

                            A big step forward from the

                 Governor's proposal by the Majority.  We say

                 let's go that next step and address the need

                 to provide a sound, basic education in all of

                 our school districts, so that we don't pit

                 district against district.  Every school

                 district represented by every member of this

                 Senate virtually will get an increase, with

                 the exception, I think, of six or seven

                 districts that will stay the same.

                            We will also offer amendments to

                 deal with what we call EPIC COPE, an

                 enhancement of the EPIC program.  I will

                 propose a measure that I think as an





                                                          2556



                 amendment, because it does involve funding, we

                 ought to do to address a significant problem

                 that I think everybody has identified with

                 respect to how we conduct elections and manage

                 elections in this state.

                            We will have an amendment that we

                 call "Budget for the Future" that will address

                 issues from pre-K to high-tech incubators;

                 yes, the Medicaid takeover from the county's

                 share, which I think our counties need.  And

                 we will of course have an amendment dealing

                 with what we view as a need for even greater

                 expenditures in the area of Medicaid for

                 nursing homes, greater than the Majority has

                 proposed.

                            We think it's prudent because at

                 the end of the day, if you do all our numbers,

                 we'd still have in excess of $3 billion in

                 reserves.  And we think that's prudent.

                            In terms of the tax cut -- and I've

                 said on this floor, year after year after

                 year, I've never met a tax cut I didn't like.

                 I think I voted for all of them.  I think

                 you've heard this conference propose even

                 different and what we thought were better tax





                                                          2557



                 cut on occasions.  Sometimes in the next years

                 we come back and the Majority has embraced

                 them, and that's good.

                            I am concerned now that at this

                 stage, anticipating, for lack of a better

                 word, I guess it's the Bush economy, that we

                 still have out-year costs of $5 billion based

                 on tax cuts we've already enacted.  In other

                 words, we haven't paid for $5 billion of the

                 tax cuts we've already enacted.  So I am

                 concerned to once again see a proposal by the

                 Majority for a tax cut of $1.8 billion, but

                 we're only putting a $259 million down payment

                 on it this year.

                            I didn't mind voting for that four

                 or five years ago.  I was confident in the

                 Clinton economy.  And we were right, the

                 revenues poured in.  And we covered those

                 out-year costs.

                            But, Mr. President, I caution my

                 colleagues now, we still have a $5 billion tab

                 in future years.  And I don't think we ought

                 to incur another $1.6 billion future tab on

                 tax cuts given the uncertainty of the economy,

                 given what many of us feel is a lack of





                                                          2558



                 confidence in our economic prospects over the

                 next three or four years.

                            And I don't want to see us hit

                 years -- and I don't want to make predictions,

                 but in a year or two, if we're standing on

                 this floor trying to cover a $4 billion

                 deficit in the state budget, I will say, Mr.

                 President, I told you so.

                            So that said, Mr. President, I

                 would urge all of my colleagues to listen

                 carefully to the amendments we propose.  They

                 are suggestions in this process.  We've done

                 them every other year.  You actually liked

                 some of them, the Majority actually liked some

                 of them, Mr. President, and adopted them in

                 past years.  So in that spirit, these

                 amendments are offered.

                            Thank you, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Oppenheimer, why do you rise?

                            SENATOR OPPENHEIMER:    I believe

                 you have at the desk the amendment that I'm

                 going to propose.  It's called Extraordinary

                 Needs Aid.  I'd like to explain -

                            ACTING PRESIDENT KUHL:    The





                                                          2559



                 amendment is at the desk, Senator Oppenheimer.

                 Are you asking that we waive its reading and

                 you be given an opportunity to explain it at

                 this time?

                            SENATOR OPPENHEIMER:    Yes, if I

                 may.

                            ACTING PRESIDENT KUHL:    The

                 reading of the amendment is waived, and you

                 are now afforded the opportunity to explain

                 the amendment.

                            SENATOR OPPENHEIMER:    Thank you,

                 Mr. President.

                            This is called the Extraordinary

                 Needs Aid.  And it is something that we have

                 to face up to because of the DeGrasse decision

                 in the case that was brought by the Campaign

                 for Fiscal Equity that says that in our

                 constitution we have to provide a sound and

                 basic education to all children in our state.

                            And the present system is simply

                 not delivering the kind of funding that is

                 required.  We have in our school aid formulas

                 maybe 50 different formulas.  I doubt whether

                 there are a handful of people in Albany that

                 know and understand all these formulas.  I've





                                                          2560



                 been following education now for 28 years, and

                 I can say it's extraordinarily confusing and

                 seems to have no rational basis.  And Lord

                 knows where it comes from, some of these

                 formulae.

                            But we do know certain facts, and

                 we do know that minority students have been

                 harmed and that many of our students come from

                 areas where there has been actual cultural

                 deprivation or their family has not been able

                 or interested in accessing those pieces

                 necessary so that a child is able to grow and

                 to learn in our established education

                 environment.

                            We have to focus in on the very

                 foundation of skills.  And we have to do this

                 for our own sake, for the sake of our state

                 and for every citizen in this state.  Because

                 these people that we are educating now are the

                 people who we hope will be the productive

                 citizens of the future.  And if we do not

                 provide them with a sound, fundamental

                 education, we are not going to have these

                 people working within our economic structure.

                            We have to create a fair and new





                                                          2561



                 funding system that will assess what are the

                 actual costs of providing this adequate

                 education to all of our students in the state.

                 And it has to be a formula that the people of

                 our state can understand.  Because I can tell

                 you now, very, very few people in our state -

                 almost no one understands how we fund

                 education.

                            Judge DeGrasse named seven

                 essential resources.  And they include having

                 a sufficient number of qualified teachers.

                 Right now we know there are so many

                 teachers -- particularly in New York City,

                 almost one-third -- who are not even certified

                 to teach.  And very often they're teaching out

                 of areas which they are certified in and

                 they're teaching subject matter which they are

                 really not competent in.

                            We have to have appropriate class

                 size.  In the lower grades it's going to be

                 essential to reduce the number of students in

                 the classrooms, because we know from all the

                 information that has come out of our federal

                 studies that children between the ages of -

                 well, actually birth and maybe up to age 7, 8,





                                                          2562



                 are just like sponges and have the capacity to

                 learn, but they can only learn in environments

                 that are conducive to that.

                            We have to put in additional

                 resources for our at-risk students, because

                 they need it and we are hoping that they will

                 be able to streamline -- to become part of the

                 mainstream within our academic system if

                 provided sufficient resources.

                            We have to have facilities that are

                 sound.  They cannot have water pouring in on

                 the students or have students in rooms that

                 were not intended to be classrooms but rather

                 intended to be closets or to be gym

                 facilities.

                            And the state has to fund this,

                 because this cannot happen by itself.  We have

                 done a great deal with standards in our state.

                 And indeed, when the assessment of all schools

                 in the 50 states was done, it was determined

                 that New York State actually got an A for the

                 quality of our standards, our academic

                 standards.  But when it came to

                 implementation, we got an F.  And that's

                 because we have not provided adequate





                                                          2563



                 resources.  And the budget that has been

                 presented to us today certainly is a

                 beginning, but we feel a lot more would have

                 to be added.

                            This amendment calls for a

                 three-year phase-in of a remedy to the court

                 case, the DeGrasse court case.  And we believe

                 this amendment will start in the three-year

                 process of offering a sound, basic education.

                 It will drive an additional $1.1 billion in

                 extraordinary needs aid for the coming school

                 year; that is, 2001-2002.  And additional aid

                 would be phased in over the next couple of

                 years, so that by the school year 2003-2004,

                 all of the necessary resources would be in

                 place.

                            I commend this to you and hope you

                 will seriously consider it, because there is

                 little doubt in my mind that we are going to

                 have to meet the needs of the New York City

                 court case.  And also, it is the right thing

                 to do.

                            I know several of my colleagues

                 will probably want to speak on this, so I will

                 finish now.





                                                          2564



                            ACTING PRESIDENT KUHL:    Senator

                 Stavisky, did you wish to be recognized on the

                 amendment?

                            SENATOR STAVISKY:    I'm sorry, I

                 can't hear you.

                            ACTING PRESIDENT KUHL:    Did you

                 wish to be recognized on the amendment?

                            SENATOR STAVISKY:    Yes, on the

                 amendment, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Stavisky, on the amendment.

                            SENATOR STAVISKY:    Yes.  The

                 amendment is called Extraordinary Needs Aid.

                 And it seems to me, as a former high school

                 teacher in the City of New York and as someone

                 who graduated from the public schools and

                 whose son went through the public schools,

                 Judge DeGrasse gave us an extraordinary

                 opportunity to remedy some of the problems

                 that we face.

                            The amendment being offered by

                 Senator Oppenheimer gives us a three-year

                 phase-in of the Campaign for Fiscal Equity

                 remedy.  It's important, I think, to recognize

                 that Judge DeGrasse's decision will have to be





                                                          2565



                 implemented, and it should not be implemented

                 by the judge but by the Legislature.  The

                 New York State Constitution, in Article 11, is

                 very clear.  It says that the Legislature

                 shall provide for a system of free common

                 schools wherein all of the children of the

                 state may be educated.

                            This amendment being offered today

                 takes another step toward implementing Judge

                 DeGrasse's decision.  But at the same time,

                 Judge DeGrasse did outline the seven basic

                 steps toward a sound, basic education.  But he

                 also suggested that we have accountability

                 along with the expenditures of funds.  And

                 this amendment being offered by our side of

                 the aisle I think addresses some of these

                 needs and certainly some of the issues that

                 Judge DeGrasse outlined.

                            It will provide an additional

                 $1.1 billion in extraordinary need so that we

                 can provide a sound, basic education for all

                 of the children in this state.  And, Mr.

                 President, I would urge everyone to support

                 our amendment.

                            Thank you.





                                                          2566



                            ACTING PRESIDENT KUHL:    Senator

                 Espada, you wish to be recognized on the

                 amendment?

                            SENATOR ESPADA:    Thank you, Mr.

                 President.

                            ACTING PRESIDENT KUHL:    Senator

                 Espada, on the amendment.

                            SENATOR ESPADA:    On the

                 amendment.

                            Not since Brown versus the Board of

                 Education, almost 47 years ago, has the

                 subject of education, the nature of education

                 and how it is administered, how it is funded,

                 the issue of whether or not our children -

                 that is, all of our children in the state, but

                 primarily those children in African-American

                 and Latino communities throughout the state -

                 are getting a sound basic education, are

                 getting their fair share of the education

                 dollar.

                            There is a floodlight on all of us.

                 The recent court decision allowed for this.

                 But clearly, as a public educator -- I taught

                 the elementary school and secondary level, and

                 I can assure you that this matter of inequity,





                                                          2567



                 this issue of the savage inequalities that

                 have visited many generations of poor children

                 in our communities has been with us for a

                 long, long, long time.

                            I commend Senator Oppenheimer for

                 the amendment.  It's clear, it's simple, it

                 adheres to the basic tenets of the DeGrasse

                 decision.  It is prudent and fiscally

                 responsible in its phased-in approach.  But it

                 speaks very clearly to the fact that somehow

                 there is this kind of zero-sum mentality going

                 around that somehow New York City and its poor

                 children can only gain if some other districts

                 and their children lose.

                            And clearly this amendment

                 indicates that we can all win, that all of our

                 children, as our Senate Democratic conference

                 leader indicated, are not only statutorily

                 entitled to a basic, sound education, but we

                 owe it to them.  It is our job.  We have no

                 nobler mission than to provide that.  And

                 that's why I encourage and urge the adoption

                 of this amendment.

                            Thank you so much.

                            ACTING PRESIDENT KUHL:    Senator





                                                          2568



                 Schneiderman, did you wish to be heard on the

                 amendment?

                            SENATOR SCHNEIDERMAN:    Yes, thank

                 you, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Schneiderman, on the amendment.

                            SENATOR SCHNEIDERMAN:    I would

                 urge my colleagues that the Campaign for

                 Fiscal Equity decision does not leave us an

                 option to pass the budget resolution presented

                 today in its current form.  It does not

                 address the needs of the children in this

                 state.  And I would suggest that we're in a

                 situation where it looks as though our house

                 will be dragged kicking and screaming into

                 providing a decent education for all of our

                 children.

                            The analysis of the education

                 budget performed by the Majority in this house

                 is actually quite disparaging of Justice

                 DeGrasse's opinion.  It takes him to task and

                 criticizes him for factual inaccuracies, which

                 I find unsupported by the record in the case,

                 which I have followed closely for a long time.

                            We have to provide a decent





                                                          2569



                 education for all our children.  This is not

                 just about funding.  This is not just about

                 funding.  We have responsibility for the

                 entire structure.  The defense of the State of

                 New York in this case, which I think was

                 disgraceful, was:  Oh, we created the Board of

                 Education, all these agencies, then we give

                 them money, they waste it, so we're not

                 liable.  That's a disgrace.  That was the

                 defense of the State of New York.

                            We have the authority to make

                 structural reforms if they're needed, but we

                 have to provide the resources.  We will have

                 to do it one way or the other.  I don't see

                 any reason why this house should be at the end

                 of the train dragging our feet.  We should

                 embrace the decision and get to the hard job

                 of structural reform and providing the

                 resources so that all the children of our

                 state can have a decent education.

                            I would urge that there is nothing

                 more shortsighted than a budget which purports

                 to address the problem and the need for

                 economic growth that does not provide the

                 education for the workforce that will fuel and





                                                          2570



                 support that economic growth.  I urge everyone

                 to vote in favor of this amendment.

                            ACTING PRESIDENT KUHL:    Senator

                 Dollinger, did you wish to be heard on the

                 amendment?

                            SENATOR DOLLINGER:    Very briefly,

                 Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Dollinger, on the amendment.

                            SENATOR DOLLINGER:    I join with

                 my colleague Senator Espada, who made

                 reference to Brown against the Board of

                 Education and the importance of us embarking

                 down the road to quality and educational

                 opportunity in this state.

                            I honestly believe that the

                 judicial opinion which was been referenced by

                 a number of my colleagues simply tells us what

                 we already knew.  There's no secret in that

                 opinion.  We know what the factors are that

                 influence education.  We know what works.  And

                 what this amendment seeks to do is to say to

                 the people in this chamber we're going to fund

                 what works.

                            We know that reducing class size,





                                                          2571



                 creating greater expectations will drive

                 educational opportunity in areas that have

                 historically had tremendous difficulty in

                 complying with standards and meeting the goals

                 of adequate educational opportunity.

                            If you look at where this money

                 will go, we make no bones about it.  A major

                 portion of the resources in this extra billion

                 dollars will go to areas which have suffered

                 the scourge of chronic poverty, which has

                 extracted an enormous toll on student growth

                 and expectation.  About two-thirds of it ends

                 up there.  But it also goes to places of rural

                 poverty, where although it isn't concentrated,

                 it is more spread out, it still has a

                 devastating impact on our children and their

                 expectations.

                            And I would just suggest that any

                 state that has as its symbol a woman standing

                 at the door with a golden lamp, it isn't

                 enough just to welcome them into the front

                 foyer of the family of New York, we need to

                 bring them into the living room so that they

                 can participate in all the benefits of a New

                 York family.  We can't to that without turning





                                                          2572



                 on the lights in our house.  And the golden

                 lamp that brought them here and that brings

                 them to our door does not fulfill our promise

                 to them unless we can welcome them into our

                 family.

                            The only way to do that is to give

                 them the expectation that they will get a

                 reasonable education in our public schools and

                 that they can sit at the table with all of us.

                            We have tolerated failure for too

                 long in our high-needs public schools.  We can

                 no longer tolerate it.  Let's give the school

                 districts that need extraordinary aid, let's

                 give it to them now.  Let's tell them that if

                 they don't meet the standards at some point,

                 there will be some punishment, there will be

                 some consequence.

                            Let's require that we turn on the

                 lights in New York for everyone.  If we don't

                 put this money aside and don't show them a

                 place at the table, too many New Yorkers who

                 have already been left behind will be left

                 behind again, and the promise and hope for our

                 children will end up as a misguided promise

                 that produced nothing.





                                                          2573



                            It's time we ended the tolerance of

                 failure and gave every child in this state the

                 one hope for the one thing we know they need,

                 a quality public education.  I'll be voting in

                 favor of the amendment, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Gentile, did you wish to be heard on the

                 amendment?

                            SENATOR GENTILE:    Yes, I would

                 like to be heard, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Gentile, on the amendment.

                            SENATOR GENTILE:    Thank you, Mr.

                 President.

                            Senator Dollinger and my other

                 colleagues are so right in what they say.  We

                 over the last many years, at least the few

                 years that I've been here, have debated this

                 issue of school funding over and over again on

                 one side or the other.  The fact is, up until

                 now it's been a political debate, a political

                 debate of whether schools were funded

                 adequately, whether we as a Legislature were

                 meeting our obligations to educate all the

                 students in the State of New York.





                                                          2574



                            That's been a political debate that

                 has been ongoing.  And to the credit of this

                 Legislature and the other house and the

                 Governor, we have tried to bridge the gap in

                 the funding for New York City schools.

                            However, now we go from a political

                 debate and add another aspect to it.  And the

                 other aspect now is the court decision.  We

                 now have a court decision that assists us and

                 mandates that we act at this point.  We are

                 told now by the judge, Judge DeGrasse, that we

                 have not, we have not -- he has answered the

                 question and said we have not provided a

                 sound, basic education to the students

                 throughout our state.  And by answering that

                 question, by answering that question and

                 saying we have not provided a sound, basic

                 education to all the students in this state,

                 he has told us something else.

                            And what he has told us and what he

                 has concluded is that this house, the

                 Assembly, and the Governor have violated the

                 constitution of the State of New York.  By not

                 funding, as we should have been funding, the

                 school system throughout the state in a fair





                                                          2575



                 and equitable way, the court has said we, the

                 Legislature, the Governor have violated the

                 constitution of the State of New York.  We now

                 stand in violation of that constitution.

                            Senator Oppenheimer's amendment to

                 this resolution brings us to the point where

                 we can present to the judge a very credible

                 argument that we are no longer, with the

                 adoption of this resolution, in violation of

                 the constitution of the State of New York.

                            So in a practical term, Mr.

                 President, the court has given us till

                 September to come up with a fair funding

                 formula.  In a practical term, Mr. President,

                 I suggest that we have a fair and practical

                 funding formula with the adoption of Senator

                 Oppenheimer's amendment.

                            And so I suggest that we do now,

                 today, what we must do by September.  Let's

                 not wait till September to have to do this.

                 Let's do this today and add this to the

                 document that is being presented today as a

                 budget resolution in this house.

                            I congratulate Senator Oppenheimer,

                 and I will be voting for the amendment.





                                                          2576



                            ACTING PRESIDENT KUHL:    Senator

                 Lachman, did you wish to speak on the

                 amendment?

                            SENATOR LACHMAN:    Yes.

                            There's no question in my mind that

                 the budget resolution in front of us is an

                 improvement over the Executive budget.  At the

                 same time, there is no question in my mind

                 that Senator Oppenheimer's amendment on

                 extraordinary needs aid is an improvement on

                 the budget resolution that faces us today.

                            I'm not going to echo my

                 colleagues.  I'll be very brief in stating

                 that I think, to fulfill Judge DeGrasse's

                 decision across the state, in eliminating the

                 divisions between urban, rural, suburban,

                 white/black poverty, this is the way to go.

                 And this meaning the amendment.

                            Now, in this well-lit chamber,

                 Senator Dollinger, I'd like to say something

                 that Andrew Carnegie mentioned in the 19th

                 century.  And with this, I'll close.  He said

                 that America rests upon three major pillars,

                 and if any of these pillars were destroyed,

                 the greatness of America would also be





                                                          2577



                 compromised.  And he named these three pillars

                 as one, education; two, education; three,

                 education.

                            I think the Executive budget

                 consists of one pillar.  I think that the

                 Senate one-house budget resolution consists of

                 two pillars.  And that the amendment that

                 Senator Oppenheimer has offered to us will

                 give us the three pillars that Andrew Carnegie

                 mentioned to fulfill the dreams and

                 aspirations of all the citizens of New York

                 State and maintain the greatness in this land.

                            ACTING PRESIDENT KUHL:    Senator

                 Sampson, did you wish to speak on the

                 amendment?

                            SENATOR SAMPSON:    Yes, I do, Mr.

                 President.

                            First, I want to rise in support of

                 the amendment by my colleague,

                 Ms. Oppenheimer.  But second of all, I want to

                 commend the Majority on the first step as to

                 what we consider to be an adequate education,

                 especially for our children in New York City.

                            But when I think of education,

                 there's a direct correlation between crime and





                                                          2578



                 education.  Because those individuals who are

                 not adequately educated seem to be go into the

                 criminal element of society.  We always tell

                 our children -- when I was young, my parents

                 always told me to go to school, get a decent

                 education and make something of your life.

                            Every year in this chamber we talk

                 about education and the importance of

                 education and how we need to educate our

                 children in order to become productive

                 individuals in society.  But we don't give

                 them the adequate resources so they can become

                 productive individuals in society.  And I'm

                 tired especially of seeing children in my neck

                 of the woods wind up in prisons upstate.

                            And, you know, we need to basically

                 do something about that.  And this amendment

                 is a second step in order to equalize, to make

                 a level playing field for those kids out there

                 in our community which we say, year in and

                 year out, go to school and become educated

                 individuals.  Let's give them that

                 opportunity.  Let's give them those resources.

                            And that's why I rise in support of

                 this amendment, Mr. President.





                                                          2579



                            ACTING PRESIDENT KUHL:    Senator

                 Malcolm Smith, do you wish to speak on the

                 amendment?

                            SENATOR MALCOLM SMITH:    Yes, Mr.

                 President.

                            ACTING PRESIDENT KUHL:    Senator

                 Smith, on the amendment.

                            SENATOR MALCOLM SMITH:    Let me

                 offer my congratulations and support to

                 Senator Oppenheimer for her insight and

                 understanding of what the young adults and

                 young children of our state need.

                            Mr. President, for those who follow

                 the biblical text, there is a text in the

                 Bible that discusses a chapter regarding a

                 gentleman by the name of Ezekiel.  And the

                 particular chapter talks about rising up from

                 the valley of dry bones.  And the dry bones

                 seem to represent individuals who have not

                 gotten or have not achieved what they need to

                 achieve in society.

                            But what is interesting about that

                 passage, Mr. President, is it also talks about

                 there are certain quakes that occur in society

                 along a linear path in our lives.  I believe





                                                          2580



                 in 1964 and '65 we had a quake when the Voting

                 Rights Act came to pass as well, as the Civil

                 Rights Act.  This particular year is the year

                 2001.  I believe we have now also experienced

                 another quake.  That quake is the decision

                 that Judge DeGrasse has made with regards to

                 the CFE campaign.

                            I believe we have an opportunity, I

                 believe we have an obligation as individuals

                 to make sure that we respond to that

                 particular quake.  If we do not -- and I say

                 that if we do not, what we will be doing is

                 what has happened in our society over the last

                 several years, a couple of things.  One, we

                 will sit here and talk about we want to reform

                 the Rockefeller Drug Laws.  However, if that

                 reform occurs, and you do not support

                 educating the children, they will essentially

                 go right back into the criminal justice

                 enterprise.  Therefore, the Rockefeller drug

                 reform will be a farce.

                            You have many upstate

                 neighborhoods.  Their biggest problem today,

                 Mr. President, is that they cannot sustain the

                 businesses that are up there.  Why they can't





                                                          2581



                 sustain those businesses is because there is

                 not an adequate workforce, so they are leaving

                 the state.  We have to make sure, in order for

                 our state to compete with other states and

                 maintain what we consider to be a good

                 business atmosphere, there has to be an

                 educated workforce, and we do not have that.

                            We can't sit here and talk about

                 making budget reforms, making budget

                 allocations to areas such as biotech, such as

                 having an expanded Empire Zone area, if in

                 fact the individual businesses that want to

                 take advantage of that particular support

                 cannot do so because you do not have the kind

                 of workforce that can be a part of it.

                            My hope, Mr. President, is that we

                 don't feel guilty about what is going on here

                 today.  My hope is that we recognize that this

                 is not only something whose time has come, but

                 it is a necessity.  We're not asking for

                 anything extra.  We're not asking for you to

                 do anything extra.  All that we are asking for

                 is that you do what is necessary to make sure

                 that everybody can play on a level playing

                 field.





                                                          2582



                            It is a simple allocation.  We have

                 enough money there.  $4 billion in terms of a

                 surplus is more than enough money not to

                 have -- more than enough money that we don't

                 have to worry about what will happen when we

                 have a problem come the out-years where this

                 particular recession, as everyone is beginning

                 to talk about, occurs.

                            My hope, Mr. President, is that we

                 will adopt this amendment, we will take it

                 just in the spirit that it is offered, and

                 that is not to embarrass, not to challenge,

                 but only to make it equitable so that every

                 citizen of this state, every young person of

                 this state has a decent education and can go

                 on with their lives productively in this

                 society.

                            Thank you.

                            ACTING PRESIDENT KUHL:    Senator

                 Onorato, did you wish to speak on the

                 amendment?

                            SENATOR ONORATO:    On the

                 amendment, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Onorato, on the amendment.





                                                          2583



                            SENATOR ONORATO:    I rise to

                 support the amendment.  I'm not going to

                 belabor the point.  It's been made very, very

                 adequately by my colleagues.

                            But I would like to remind this

                 body that we've been advocating for many, many

                 years -- I'm here 18 years, and for 18 years

                 we've been asking for equality in the

                 education system for those who have the

                 greatest needs.  It's a shame that it had to

                 go into the courts to prove that what we were

                 advocating for the past 18 years has come to

                 pass, only to have it appealed by the Governor

                 of this state, wasting additional funds,

                 fighting what is justifiable in the eyes of

                 the court, who are bipartisan and nonpartisan

                 regarding the needs of the children of our

                 state of New York.

                            This is the extraordinary needs

                 program.  And what extraordinary measures must

                 we meet to meet the obligations that have been

                 thrust upon us by the courts?  I don't think

                 that it's fair of this legislative body that

                 we have to rely upon the courts to do what we

                 have been elected to do for ourselves.





                                                          2584



                            So I urge you to right the wrongs

                 that have been committed over the past years

                 and vote for this amendment to make things

                 right again.

                            ACTING PRESIDENT KUHL:    Is there

                 any other Senator wishing to speak on the

                 amendment?

                            The Secretary will now canvass the

                 members.  Those in agreement, please raise

                 your hand.

                            Announce the results.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Breslin, Brown, Connor,

                 Dollinger, Duane, Espada, Gentile, Markowitz,

                 Onorato, Oppenheimer, Paterson, Sampson, M.

                 Smith, A. Smith, Stachowski, and Senator

                 Stavisky.

                            ACTING PRESIDENT KUHL:    The

                 amendment fails.

                            We're now on debate on the bill.

                            Senator Gentile, do you wish to be

                 heard?

                            SENATOR GENTILE:    Yes, Mr.

                 President.  I believe there's an amendment at

                 the desk.  I'd ask that the reading be waived





                                                          2585



                 and allow me to explain.

                            ACTING PRESIDENT KUHL:    Let me

                 just take a look here, Senator Gentile.

                            Senator Gentile, the chair

                 recognizes that the amendment is before the

                 house.  The reading of it is waived, and

                 you're afforded the opportunity to in fact

                 explain the amendment.

                            SENATOR GENTILE:    I appreciate

                 the opportunity, Mr. President.

                            As we all know and as we have been

                 dealing with, the cost of prescription drugs

                 in this state continues to soar.  And although

                 my colleague from Staten Island just left the

                 chamber, I have to say that he has been one of

                 the -- in the forefront in part of this fight,

                 in fighting the rising cost of prescription

                 drugs.

                            Indeed, all one needs to understand

                 is the figure that in the last six years,

                 spending in America on prescription drugs has

                 risen by -

                            ACTING PRESIDENT KUHL:    Senator

                 Gentile, excuse the interruption.  It seems to

                 be a little noisy in here.  I see we have a





                                                          2586



                 conference right next to you.  I don't know

                 how your members or colleagues can hear the

                 debate that you're presenting on this

                 amendment, or understand it, if in fact

                 they're not listening to you.

                            So if we could just have a little

                 order in the house.  The members, in fact, if

                 they have a conversation, please take that out

                 of the chamber.

                            Pardon the interruption, Senator

                 Gentile.

                            SENATOR GENTILE:    Thank you, Mr.

                 President.

                            Spending by Americans on

                 presentation drugs over the last six years has

                 risen by 116.4 percent, a 116.4 percent

                 increase in spending by Americans just on

                 prescription drugs.  We all know the story

                 here in the state of New York and the cost of

                 prescription drugs.  The prospects are that

                 that trend will continue.

                            And so we as a house, we as a house

                 came together last year, based on a Democratic

                 initiative, but then in a bipartisan show this

                 house came together and we passed, along with





                                                          2587



                 the Assembly, an EPIC reform legislation,

                 signed by the Governor, and that took effect

                 January 1st, whereby the EPIC, the Elderly

                 Pharmaceutical Insurance Coverage program run

                 by the State of New York for senior citizens

                 and covering them for prescription drugs,

                 expanded, based on our bipartisan action last

                 year.  And that law took effect January 1st.

                            Based on our action, now almost

                 200,000 more seniors are eligible to be

                 covered under the state prescription drug

                 program.  And incomes have gone up,

                 eligibility has gone up to $35,000 if you're a

                 single individual 65 or older and $50,000 if

                 you're a married couple 65 and older.  So we

                 have greatly expanded that program, and that

                 is to the credit of this Senate and to the

                 credit of the other house and to the Governor.

                            We have begun that program

                 January 1st of this year.  I believe now we

                 have to take another step.  And that other

                 step that we need to take is to expand -- is

                 to make the program more affordable for senior

                 citizens.  We have expanded the eligibility;

                 now we must increase the affordability.





                                                          2588



                            And how are we going to do that?

                 We're going to do that by the amendment that

                 I'm proposing right now which I am titling

                 EPIC COPE.  COPE is the acronym for Cap

                 Out-of-Pocket Expenses.  C-O-P-E, EPIC COPE.

                 And what this amendment to the resolution will

                 do is add to the EPIC program by limiting the

                 out-of-pocket expenses that seniors in the

                 program will be required to pay to 5 percent

                 of a senior's income.  Five percent of a

                 senior's income would be the maximum that they

                 would pay as a participant in the EPIC

                 program.

                            As it stands now, Mr. President, we

                 have done, and my staff and Senator Connor's

                 staff has done an analysis of what the

                 out-of-pocket expenses are under the current

                 program, under the current EPIC program.  And

                 we define out-of-pocket expenses as those

                 expenses for the fee for the EPIC program, the

                 expenses for the deductible that has to be met

                 in certain cases under the program, and the

                 copayments that have to be made under the EPIC

                 program.  All those three factors are taken

                 together and grouped under out-of-pocket





                                                          2589



                 expenses.

                            If you look at the current

                 out-of-pocket expenses for seniors in the

                 program at different income levels, the

                 out-of-pocket expenses under the current

                 program can go as high as 15 percent of a

                 senior's income, almost 15 percent.  Just some

                 numbers.  For example, someone making $20,000

                 in the EPIC program would have out-of-pocket

                 expenses of $1,390.  Someone making $35,000

                 would have out-of-pocket expenses of almost

                 $3,000.  And someone on the high end, making

                 $50,000 and still eligible for the EPIC

                 program because of our good work last year,

                 would still be required to spend $7,430 of

                 their own money before being covered by the

                 EPIC program.

                            This limits, my colleagues, the

                 ability of seniors to participate in this

                 program.  We've expanded it.  We need to make

                 it more affordable.  The way to make it more

                 affordable is to cap the out-of-pocket

                 expenses at 5 percent of a senior's income.

                 By capping the out-of-pocket expenses at

                 5 percent, you realize significant savings.





                                                          2590



                            For example, the person at $20,000

                 would actually save $390 of out-of-pocket

                 expenses under this resolution.  Someone

                 making $35,000 would save $1,230 under this

                 resolution.  Someone making $26,000, married,

                 would save $1,600 of out-of-pocket expenses

                 under this resolution.  And someone again on

                 the high end, the $50,000 end, married, making

                 $50,000 but still eligible for this program,

                 would save $4,930 of out-of-pocket expenses

                 under this program.

                            This certainly will help those

                 seniors who are still, even under this

                 program, at a point where they have to make a

                 decision between buying food or paying for

                 their prescription drugs.  Because remember,

                 in most cases there is either a fee or a

                 deductible that has to be met before the EPIC

                 program takes effect.  And that is where most

                 seniors have the problem in coping with these

                 out-of-pocket expenses.

                            So, Mr. President, in total we

                 estimate that this amendment to the budget

                 resolution, when adopted and when passed, will

                 save seniors as much as $170 million.  That's





                                                          2591



                 $170 million back into the pockets of the

                 senior citizens of the state of New York.

                 $170 million that seniors can take put in

                 their pockets and, instead of spending it on

                 drugs or spending it on the EPIC program, can

                 go out and buy food, buy coats, buy shoes, buy

                 other things that will help the economy in

                 other ways, but also provide for their basic

                 necessities.  $170 million savings to senior

                 citizens in the State of New York.

                            This, I think, will be our shining

                 moment, as an addition to what we did last

                 year as a bipartisan act to help seniors

                 across this state.  We made it more -- we've

                 expanded the eligibility.  Now it is our

                 responsibility to help seniors by making it

                 more affordable.  The EPIC program is a great

                 program.  We need to make it more affordable

                 so more seniors will be encouraged to be

                 covered under it.

                            So, Mr. President, I think that

                 this amendment to the resolution is an

                 appropriate amendment, an amendment that we

                 can vote on and all of us, every single one of

                 us can walk out of this room, out of this





                                                          2592



                 chamber today with our heads high, saying that

                 we really did something tremendous for the

                 seniors that live in your district, in your

                 district, in your district, in everybody's

                 district.  We will do a sweeping savings for

                 the seniors in the State of New York.

                            We have the surplus.  We have the

                 money.  The time to do something for seniors

                 to make it more affordable is now, Mr.

                 President.  And therefore I offer this

                 amendment and ask my colleagues, not only my

                 colleagues on this side of the aisle but the

                 colleagues throughout this house, to continue

                 to make this a bipartisan effort so that we

                 all can walk out of here with our heads high

                 and realize these savings for the seniors of

                 the state of New York.

                            ACTING PRESIDENT KUHL:    Is there

                 any other Senator wishing to speak on the

                 amendment?

                            Senator Paterson.

                            SENATOR PATERSON:    Thank you, Mr.

                 President.

                            I just want to congratulate Senator

                 Gentile, who I worked with many years ago





                                                          2593



                 before I came to the Senate, and who has

                 really put a lot of effort in, along with the

                 staff of Senator Connor and Senator Connor

                 himself, on what I think is a huge cost

                 savings for seniors.  And you don't always get

                 a second chance to create this kind of

                 savings.

                            And it is certainly, I think, of

                 all the amendments we're offering, the one

                 that is, in my opinion, just the most

                 straightforward, the most explicitly helpful.

                 And I certainly hope that we'll see fit either

                 to pass it right now or at some time to come

                 back to the issues that it raised.

                            Thank you.

                            ACTING PRESIDENT KUHL:    Is there

                 any other Senator wishing to speak on the

                 amendment?

                            Senator Espada, on the amendment.

                            SENATOR ESPADA:    Thank you, Mr.

                 President.

                            I think that not only the

                 legislation I'm familiar with but this

                 particular amendment is of landmark status.  I

                 mean, clearly, we're all elected officials.





                                                          2594



                 We all understand that of all the demographic

                 groups, the reason why most of us are here is

                 because senior citizens put us here.  Senior

                 citizens elected us to this body, for the most

                 part.

                            And the fact of the matter is that

                 every budget has its core values.  Every

                 budget has certain assumptions and priorities

                 embedded in it.  And if we have $1.8 billion

                 in tax cuts for business, why should seniors

                 come in last in that line?

                            You know, we have a situation here

                 where Senator Gentile has indicated very

                 clearly $170 million.  What other investment

                 that we can think of would directly impact on

                 the pocketbooks of the most vulnerable

                 population?  Not only the most vulnerable

                 population that we serve, but people who have

                 paid their dues -- our grandparents, our

                 mothers, our fathers.  Why should our mothers,

                 grandparents, and others of that age have to

                 choose between eating and staying healthy?

                            And so hats off to Senator Gentile

                 as the chief architect of this plan that would

                 tear down the walls of desperation for so many





                                                          2595



                 seniors out there that unfortunately have to

                 make that decision day in and day out between

                 eating and staying healthy.

                            I support this and encourage,

                 obviously, members of the other side of the

                 aisle to support this as well.  Thank you so

                 much.

                            ACTING PRESIDENT KUHL:    Is there

                 any other Senator wishing to speak on the

                 amendment?

                            The Secretary will now canvass the

                 members.  Those in agreement please raise your

                 hands.  For the benefit of the Secretary,

                 please keep them raised.

                            Senator Markowitz, two crutches

                 won't work.  Just one.

                            (Laughter.)

                            ACTING PRESIDENT KUHL:    Announce

                 the results.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Breslin, Brown, Connor,

                 Dollinger, Duane, Espada, Gentile,

                 Hassell-Thompson, Kruger, Lachman, Markowitz,

                 Onorato, Oppenheimer, Paterson, Sampson,

                 Schneiderman, A. Smith, M. Smith, Stachowski,





                                                          2596



                 and Senator Stavisky.

                            ACTING PRESIDENT KUHL:    The

                 amendment has failed.

                            Senator Hassell-Thompson, why do

                 you rise?

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Mr. President.  I rise to request

                 unanimous consent of the house to be recorded

                 in the affirmative on the canvass agreement on

                 the first amendment.

                            ACTING PRESIDENT KUHL:    Well,

                 Senator Thompson, we generally do any kind of

                 unanimous consents at the end of the action

                 that we're currently for -- that's under

                 review or discussion.  And there is a

                 concurrent resolution on the floor.

                            So if you want to preserve that

                 request until that time, then I'll make a

                 ruling on whether or not you're entitled or

                 able to do that.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Connor, did you have an amendment at the desk

                 that you wished to address?





                                                          2597



                            SENATOR CONNOR:    Yes, I did, Mr.

                 President.  Thank you.

                            ACTING PRESIDENT KUHL:    Is this

                 Number 3, Senator Connor?

                            SENATOR CONNOR:    Yes, it is.

                            ACTING PRESIDENT KUHL:    Okay.

                 Are you asking permission to have the reading

                 waived and -

                            SENATOR CONNOR:    Please waive the

                 reading of the amendment and -

                            ACTING PRESIDENT KUHL:    Reading

                 of the amendment is waived, and you're now

                 afforded an opportunity to discuss the

                 amendment.

                            SENATOR CONNOR:    Thank you, Mr.

                 President.

                            This amendment deals with

                 elections, something I've spent a lot of time

                 involved with these past 28 years in one

                 capacity or another.  Over those years, I used

                 to have a standing joke that I would tell all

                 my colleagues and adversaries, particularly

                 when we were dealing with disputed or

                 recounted elections.  Indeed, in 1998 I

                 remember, as we took a break, telling





                                                          2598



                 Republican and Democratic lawyers involved in

                 the Attorney General election or postelection

                 in New York, I used to say:  You know, some

                 day a presidential election is going to come

                 down to a handful of votes in a couple of

                 counties in one state.  Is the public and

                 press ever going to get an education then?

                            Because, frankly, nothing that the

                 nation saw or heard or learned in Florida was

                 of any news to the handful of professionals in

                 each of the states who have dealt over the

                 years with closely contested local elections,

                 legislative elections, statewide elections in

                 a few cases.

                            Indeed, in 1986 I served on a

                 bipartisan state commission dealing with the

                 issue of voting machines and voting machine

                 technology.  It was chaired by three people,

                 an Assemblyman -- just a regular Assemblyman,

                 Sheldon Silver, at the time; the late, great

                 colleague of ours, Senator Eugene Levy -- and

                 I mean that, he was a dear friend to all of us

                 and a respected member of this house and had

                 served in the other -- and Fabian Palamino.

                 Three cochairs.  A number of distinguished





                                                          2599



                 citizens and elections officials from around

                 the state, people from both parties, served on

                 it.  And we held hearings, and we looked at

                 voting machines.

                            I understand some of my colleagues

                 on the other side of the aisle have recently

                 been having these little demonstrations.  We

                 looked at all those machines, the touch types

                 and the stylus types and the bells and

                 whistles and lights go off.

                            One conclusion of that commission

                 that I proudly pointed the press to last

                 November and December was we recommended that

                 New York never, ever use a punch-card system

                 for any election.  Now, I know we have three

                 counties that use them for absentees, but we

                 said for the election, never use them.

                            And I remember questioning a

                 witness who was advocating this.  We had -

                 among our witnesses were people who made, sold

                 and manufactured these machines.  And I

                 remember cross-examining him and saying,

                 "Well, how accurate is it?"  "Oh, it's

                 accurate to within 2 percent."  And I said,

                 "Well, what about elections that are closer





                                                          2600



                 than that?"  "Oh, we have a statistic here, 98

                 percent of American elections are decided by

                 more than 8 or 10 percent."  I said, "Yeah,

                 but that's not my question.  What about the

                 one that isn't?"  "Well, it's very rare."  Oh,

                 it's very rare.

                            You know, the whole point, my

                 colleagues, Mr. President, is we want our

                 elections to be fair and as accurate as

                 humanly possible when they are that rare

                 occasion when it's too close to call.  Who

                 cares about the other elections?  I'm sure

                 nothing was discovered in Florida that hadn't

                 happened before and before and before, and

                 nobody paid attention.  Because when it's the

                 normal 98 percent of American elections,

                 somebody wins by a big, healthy margin, the

                 loser calls 45 minutes after the polls close

                 and congratulates the winner, and they all go

                 home.  It's when it's close.

                            And then we also, in that

                 commission, set standards.  And in fact, I

                 remember further up with that one witness on

                 the punch cards, I said, "Well, if New York

                 City were into it, it's a big city."  "Oh, Los





                                                          2601



                 Angeles uses it.  Los Angeles uses it, no

                 problems."  I said, "Well, what would happen

                 if we had a mayoral election and a couple of

                 million people voted in New York City and at

                 the end of the day you found out somebody won

                 by 900 votes?"

                            You see, because if you understand

                 math, if anybody here understands math, it's

                 just as likely that an election will end up

                 with a two-vote margin as a 2,000-vote margin.

                 I mean, it's just as likely.  The only

                 difference is it's going to happen one in so

                 many thousand times for each number.  And most

                 of the numbers are going to fall, I forget

                 what the term is, on the median on the high

                 side.  What's really the difference whether

                 you win an election by, you know 103,000 or

                 103,001?  So most of the time it's not going

                 to be an issue.

                            But the law of numbers tells you

                 it's just as likely it can come out to be a

                 one-vote margin over time.  And it's just like

                 a casino.  Over time, in a million plays,

                 you're going to end up with any given result,

                 any possible result.





                                                          2602



                            So I said, "What if you had that

                 election?"  "Well, you'd run the punch cards

                 through the machines again."  I said, "Right,

                 and you'd come back and say, oh, it wasn't 900

                 votes, it was 898.  Well, what do you do?"

                 And he lowered his voice and kind of mumbled:

                 "You count them by hand."  I said, "Excuse

                 me?"  "You count them by hand."  Oh, just like

                 they did in 1860.  You would count 2 million

                 votes by hand.

                            Now, what drove all those

                 jurisdictions in the '60s that adopted punch

                 cards?  The press drove it.  It was the need

                 to know the results within an hour of the

                 polls closing.  It had nothing to do with

                 accuracy, nothing to do with security, nothing

                 to do with reliability.  The press didn't like

                 waiting to find out till the next morning how

                 Los Angeles voted so they knew how California

                 went so they learned who won president or

                 whatever.

                            And various jurisdictions that went

                 into that, the thing they kept saying is, We

                 can get the results quickly.  Notice they

                 never said, We can get the results more





                                                          2603



                 accurately.  They said, We can get the results

                 more quickly.

                            And I think what we all have to

                 learn, and I saw editorials -- and Senator

                 Goodman isn't here.  He won a resounding

                 victory.  He won.  And everybody involved in

                 that at the end of the day knew he won.  And

                 the press wrote editorials saying how the

                 system was broken because it took weeks.

                 Well, he won.  He won in plenty of time to

                 take his seat.  Everybody is comfortable that

                 he was the choice of the people of his

                 district.

                            And I suggest to you, yes, there

                 were some mistakes.  Not that many.  Not as

                 many as the press had billed or were feared.

                 There were the usual amount of random mistakes

                 across the district, in that district, but

                 basically, at the end of the day, everyone

                 involved was comfortable that he won.  Because

                 we took the time to do it accurately.

                            Now, I understand that the press,

                 in some editorials, that said New York's

                 election system is broken because it took five

                 or six weeks.  That's why we have elections in





                                                          2604



                 early November for terms that begin on

                 January 1st.  That's why the people who wrote

                 U.S. Constitution provided such a lag time

                 between Inaugural Day -- remember, they didn't

                 provide November 5th or 6th to January 20th.

                 The original, the original language of the

                 Constitution gave you till March 4th to figure

                 out who the president was.  And there was a

                 reason.  Accurate tabulation of very close

                 elections takes time.

                            So the thrust of what I'm about to

                 go into isn't about can we get it done

                 quicker.  My concern with a lot of the

                 technology is there's no audit trail.  Just no

                 audit trail.  Can't use punch cards.  I don't

                 think I have to explain why now.  I don't have

                 to explain why we were right in 1986.

                            But a lot of the computer systems

                 don't allow the reliability that the old

                 mechanical machine does.  That is reliable.

                 That is virtually tamper-proof.  At

                 950 pounds, those machines are virtually

                 theft-proof.  No one has ever stolen one.  And

                 I'm not suggesting we go into a new generation

                 of thousand-pound machines with new technology





                                                          2605



                 in terms of metallurgy that's available.  But

                 we're clearly going to have to go somewhere,

                 and there are federal proposals to put money

                 into states to acquire voting machines.

                            And now we're to the crux of my

                 amendment.  We have a statewide election

                 system.  The county boards and the New York

                 City boards of elections are creatures of the

                 state, not local governments.  Their makeup,

                 their bipartisan makeup is mandated by the

                 State Constitution, and they have functioned

                 basically as elements of the State Board of

                 Elections.  But they're an unfunded mandate on

                 the counties and the city of New York that has

                 to pay the expenses of those county boards of

                 elections.  Number one.

                            Number two, when it comes to voting

                 machines, in the cities, the cities own the

                 machines.  For New York City, that means

                 warehouses, it means thousands of machines.

                 And in some of the larger counties, the

                 counties own the machines.  But generally in

                 this state, the towns have to purchase and

                 maintain the machines.  That creates two

                 problems.  In smaller towns, it's an enormous





                                                          2606



                 expense, especially when we're going to go

                 into a new generation of machines.  To mandate

                 on your small towns that have only two or

                 three machines that they have to go buy some

                 $8,000 -- three of them -- machines is a big

                 hit on the town.  And a lot of town

                 governments will be tempted, absent a mandate

                 as to what machine they have to buy, to use

                 cheaper technology.

                            Secondly, if the case of Bush

                 against Gore meant anything to American

                 jurisprudence -- and that debate will rage for

                 years more.  Some people say it meant there

                 were five of them and four of us.  And some

                 people said, Read what they said.  Maybe it

                 means something.

                            But what they did is, they said

                 that this, in effect, disparate methods of

                 voting and counting votes within a state is a

                 denial of due process, equal protection.

                 Looking forward, it seems to me that unless a

                 state comes up with a uniform method of

                 voting -- and, by the way, no method, Mr.

                 President, is foolproof.  They all have

                 mistakes.  The mechanical lever machine had an





                                                          2607



                 average error of 0.2 percent.  That's ballots

                 spoiled, people lose votes, whatever.  We saw

                 that punch cards can go up to an astronomical

                 rate, approaching, in some precincts,

                 10 percent to 12 percent of spoiled ballots,

                 which as everyone agrees is unacceptable.

                            So you're going to have opt for the

                 same method of voting throughout the state.

                 And presumably, lest we be fools, we'll opt

                 for one of the more reliable systems that has

                 the least amount of people losing their votes,

                 that has an audit trail and is secure and

                 tamper-proof.

                            And earlier in this year, or

                 perhaps at the end of December, I read in the

                 paper that the president of Cal Tech had

                 gotten together with the president of MIT and

                 decided technology will solve these problems,

                 and they had a committee.  They set up a

                 committee of experts.  And in reading the

                 Times quote from Dr. Baltimore, the president

                 of Cal Tech, I saw that he was setting forth,

                 postulating to the press that any machine

                 should do a number of things.  One thing any

                 machine should do is give the voter a receipt





                                                          2608



                 on how they voted, just like an ATM.

                            And I called him in California, and

                 he was kind enough to return my call.  And I

                 introduced myself, and I said, "Doctor, before

                 you get your scientists going in the voting

                 area, talk to some people who deal with

                 elections."  "Well, what's wrong with a

                 receipt?"  I said, "It's a ward heeler's

                 dream, it's a vote buyer's dream.  The voter

                 walks out and they've got a receipt showing

                 who they voted for.  We have laws against

                 removing materials from polling places

                 because, in the century before last,

                 particularly, there were lots of vote-buying

                 incidences, and we don't let people remove

                 sample ballots or ballots or anything else,

                 because we don't have want to -- we want to

                 thwart any kind of vote-buying scheme."

                            He said, "Oh, I never thought of

                 that.  Well, we're going to use technology."

                            Well, they acted expeditiously.

                 And the interesting thing is from these two

                 universities' technicians, technical people

                 came forth a report that said, You know, we

                 looked at all kinds of computers, we looked at





                                                          2609



                 all the kinds of machines -- such as Senator

                 Spano's committee has looked at -- and we

                 conclude that the most reliable form of voting

                 is the old-fashioned mechanical lever machine.

                 This is what our great engineers tell us.

                            I knew that.  I've counted

                 elections under both kinds of systems.

                            So presumably, I think someone in

                 America is going to build one of these new

                 machines, and maybe it will have a computer

                 backup as well, as an audit.  That would be

                 great.  But it's going to cost money.  It's

                 going to cost a lot of money, Mr. President.

                 The public wants some action now.

                            I appreciate that the Majority has

                 put $25 million in for machines that don't yet

                 exist.  But I think the way to go here is

                 let's pay for the whole state election system.

                 A lot of the problems that the press and

                 public have identified don't relate to the

                 machines, they relate to the way registration

                 list are compiled and kept.

                            We should have a statewide system

                 of keeping track of voters.  New registrants,

                 moveds, and so on -- it can all be done by





                                                          2610



                 computer.  It costs money.  And it requires

                 county boards, under present law, to spend

                 money.  My amendment would pick up those costs

                 and centralize them.

                            You'd still have your county boards

                 of elections, they'd still be local people

                 selected pursuant to the constitutional method

                 of bipartisanship.  But we'd pay the expenses

                 for them.

                            And let me, Mr. President -

                 another salient effect of that is I have seen

                 local boards of elections that are supposed to

                 be independent of the elected officials in the

                 county or city -- they're set up that way -

                 turn themselves, in effect, and I've seen it

                 in New York City, into a mayoral agency.  I've

                 heard, over the years, people running the City

                 Board of Elections say, "Well, the mayor wants

                 this."  And I've said, "But the Election Law

                 says" -- "No, no, the mayor wants that and the

                 mayor wants this."

                            I say, "You don't work for the

                 mayor.  You're a state agency established by

                 state law."  "Yeah, but we got to go to him

                 for our budget.  And if the mayor wants it,





                                                          2611



                 he's getting it, or else he's going to cut our

                 budget."

                            That's wrong.  That compromises the

                 independence of the board of elections that's

                 set up by the constitution.  You know, there's

                 an old rule, he who pays the freight calls the

                 tune.  I've seen that time and time again.

                            And the other problem that I see

                 is -- I've seen it in the City Board of

                 Elections, I suspect it may be true in other

                 counties, depending on local circumstances -

                 every four years, the city budget office and

                 the mayor get really concerned with the board

                 of elections:  Do you have enough staff, do

                 you have enough this, do you have enough that,

                 can we give more money, we want a nice, smooth

                 election, the mayor is running for reelection.

                 Next three years, they starve them:  Cut back,

                 cut your budget.  You know, no important

                 elections, the mayoral election is over.

                            No important elections?

                 Presidential elections, U.S. Senate elections,

                 school board elections -- every election is

                 important.  The integrity of every election is

                 important.  The reliability of the results





                                                          2612



                 are, and the quality of the job the board of

                 elections do.

                            I say, let's remove our county

                 boards of elections and the city board of

                 elections from that cycle of influence, that

                 recurring cycle of feast or famine, of neglect

                 and then largesse that compromises their

                 independence and compromises and makes

                 impossible any semblance of a professional

                 job.  They can't do their job as professionals

                 if we don't pay people enough, if we don't

                 guarantee pay lines in what are regarded as

                 big election years as well as the so-called

                 small election years.

                            You know, it's a small election

                 unless you're running for something in it.

                 Then it's the world's biggest election.

                            And in terms of reliability, I said

                 to a colleague earlier today:  Whenever you

                 look at these machines, forget about

                 everything they're telling you and imagine

                 you're running for election and you just lost

                 by three votes.  What would you want to know?

                 What would you want that machine to do?  What

                 kind of safeguards would you want?  How would





                                                          2613



                 you reassure yourself, I lost by three?

                            And that's what you have to do, and

                 that's what a lot of the computer machines

                 won't let you do.  And obviously punch cards

                 won't, unless you count them by hand.  And we

                 all know where that leads, falling chads and

                 all sorts of other issues.

                            So we have to do something about

                 this.  The way to start is, I believe -- well,

                 there are a variety of issues all the county

                 boards have to deal with.  They have to deal

                 with training, recruitment, they have to deal

                 with the level of payment of inspectors, the

                 training of those Election Day workers.

                            They have to do -- many counties

                 are stuck between a rock and a hard place.

                 They have to have handicapped-accessible

                 polling places.  Very often their response to

                 a court order to deal with that is to move the

                 polling place miles away from where the voters

                 live, because they don't have the funds,

                 sometimes.  If they had a little money, it

                 would be better for the voters if they just

                 spent some money making the old polling place

                 accessible.  But it costs money.  We mandate





                                                          2614



                 these things, but we don't pay for them.  We

                 stick the county or city with that.

                            So the fact of the matter is, at my

                 request my staff has done a survey of all the

                 boards of elections, the current county and

                 city boards.  We've got a number of

                 calculations based on a knowledge of the

                 election process.  And what we calculated is

                 for $120 million annually, the state can

                 assume the costs of all of our county boards

                 of elections, as well as the responsibility

                 from the towns of buying and maintaining

                 voting machines.

                            And let me tell you what that -

                 think about that.  Some of the problem with

                 machines is just poor maintenance.  A town

                 that has two voting machines, they tend to

                 pull it out in the town hall or the firehouse,

                 they hold an election, they shove it back in

                 the closet until the next election.  It's a

                 charge on them to constantly keep these

                 machines maintained.  It's difficult to do.

                 It's not like in the big -- in Nassau County

                 or New York City where you have warehouses

                 full and you can have technicians just keep





                                                          2615



                 busy year-round maintaining it.

                            So this would subsume all that.

                 And by the way, no new bureaucracy, no new

                 agency would be required.  The State Board of

                 Elections would continue to do what it does

                 now:  supervise, advise, and instruct the

                 county boards to follow the law.  It would

                 have a little more teeth, though.

                            You know, in New York City they've

                 just lost a couple of significant court

                 decisions that may absolutely throw out the

                 window the machines they've been using because

                 they can't accommodate the requirements of the

                 court orders.  We had a real problem in

                 New York City.  We may have a problem in a few

                 months there.  They've been ordered by one

                 court to permit, in a primary, write-in votes

                 for offices.

                            You may say, Well, that's the law.

                 That's the law.  Nah, back in the late '50s,

                 early '60s, they saw a problem with

                 accommodating that and some mayor told them,

                 ah, you don't have to do it, and they didn't

                 do it.  They've been told by the State Board

                 of Elections:  You have to do it.  They





                                                          2616



                 ignored it, you know.  Well, do they work for

                 the State Board of Elections?  Yeah.  But who

                 pays for them?  No, the mayor.

                            So there's a problem there.  And

                 the fact is there's often a problem in various

                 counties when the State Board of Elections

                 calls them and says, You're supposed to do

                 this under the law, and the county elections

                 commissioners say, We're not going to do it.

                 Sometimes they say they're not going to do it

                 because they say, We're not going to do it, we

                 don't have the money.  The county legislature

                 didn't give us the money.  The mayor didn't

                 give us the money.  The county exec won't give

                 us the money.  We're not going to do it.

                            So we, we are responsible.  We have

                 set up this statewide election system, and we

                 haven't made it work because of the lack of

                 financial responsibility and accountability

                 that we've built into it.  You know?  We tell

                 the state board:  You tell those county boards

                 to follow the law.  So we have a system where

                 the county boards can say, We're not going to

                 do that, that costs too much money and nobody

                 gave us the money.





                                                          2617



                            Let's put our money where our

                 mouths are.  If we're serious about making

                 New York's elections work, if we're serious

                 about the next generation of reliable,

                 up-to-date, virtually foolproof voting

                 machines, then we have to put up the money and

                 put in place the mechanism for state

                 uniformity.  And we can't wait.

                            Oh, I know there are those who

                 think, and probably so, we're all talking a

                 lot about election reform but it will all blow

                 over.  Florida will be forgotten in a few

                 years.  But the fact is, Mr. President, there

                 are a million Floridas sitting out there

                 waiting to happen.  They have happened in

                 every single county in this state.  They have

                 happened in every single Senate district we

                 represent.  And 99.9 percent of the time, it

                 didn't matter because the election wasn't

                 close.  But when it's close, these things do

                 matter.

                            And at the end of the day, Mr.

                 President, it's like everything else.  You get

                 what you pay for.  If you try and do elections

                 on the cheap and you look at them, county





                                                          2618



                 boards of elections, as necessary evils, give

                 them as little as you can -- you know, there's

                 a thing, oh, they only work one day a year or

                 three days a year, which is not true -- then

                 you're going to get the kinds of problems that

                 we've encountered.

                            Which are just nothing, nothing

                 compared to the kind of problems you can have

                 if on that pendulum, that numbers pendulum, an

                 election is suddenly decided by one vote.  You

                 know, one vote.  And all the time and care in

                 the world leaves the winner and the loser

                 walking away thinking, It was one vote, but I

                 don't think it was reliable.

                            You know, we are fortunate that in

                 the close elections we've had, Attorney

                 General statewide, my dear colleague Senator

                 Goodman, everybody walked away confident that

                 it took a while but we knew who the legitimate

                 winner was.  We knew who won.  Let's make sure

                 we can always do that, Mr. President, in every

                 single election, whether it's for a school

                 board job or the governor of this state.

                            I urge my amendment.  I urge we

                 accept our legislative responsibility, our





                                                          2619



                 state responsibility for making sure that

                 elections are fair and uniform and reliable

                 throughout New York State.  To do that, we

                 have to pay for it.  We just can't mandate a

                 whole lot of things in legislation in the

                 coming months and think that they're going to

                 get down to the county boards and actually be

                 followed.

                            Thank you, Mr. President.

                            ACTING PRESIDENT KUHL:    Is there

                 any other Senator wishing to speak on the

                 amendment?

                            Senator Paterson.  Senator Espada,

                 you're on the list.

                            Senator Paterson, on the amendment.

                            SENATOR PATERSON:    Thank you, Mr.

                 President.

                            That was really quite an historical

                 lesson that Senator Connor gave us.  And what

                 I come away from it is just a lot of sympathy

                 for the supervision of elections.  It's a

                 process that occurs once a year.  We in a

                 sense almost have to set up a bit of a

                 clearinghouse for the vote of our citizens

                 around the state.  And yet because it's only





                                                          2620



                 once a year, or twice a year, if you include

                 primaries, or a few times a year, there's a

                 tendency to think that it doesn't matter.

                            But I think that it is important,

                 not necessarily to blame some of our

                 governments for not thinking it doesn't matter

                 as much as to remind them that that's what

                 separates us from other countries, and that's

                 what separates this state from other entities

                 of government.  That we can make those

                 guarantees that we're holding free elections

                 and not see some of the calamities that we see

                 happening all around other parts of the world.

                            But we have to back that up.  And

                 we're going to have to back that up with

                 resources.  I think that is the point of

                 Senator Connor's amendment.  I think it's as

                 important as anything we could be discussing

                 here today.  And I certainly urge its passage.

                            ACTING PRESIDENT KUHL:    Senator

                 Espada, you wish to speak on the amendment?

                            SENATOR ESPADA:    Yes, Mr.

                 President.

                            ACTING PRESIDENT KUHL:    Senator

                 Espada, on the amendment.





                                                          2621



                            SENATOR ESPADA:    You know, Mr.

                 President, every day I look forward to the one

                 moment when we are truly one in these

                 chambers.  And that is at the start of

                 session, when we all look up at the flag and

                 we all pledge allegiance.  And there is almost

                 virtual silence in this room, such is the

                 respect, as it ought to be.

                            But have we taken this matter of

                 our franchise for granted?  Now, we've just

                 heard the benefits of the amendment.  The

                 amendment will, of course, be defeated because

                 of who is sponsoring it.  I'd like to think we

                 haven't totally taken our franchise for

                 granted and indeed that we've -- it's fell

                 victim to competing priorities and that

                 perhaps because of Florida and the

                 presidential election, we can now turn our

                 attention to this matter.

                            That, indeed, the issue of fair and

                 accurate elections is not just lip service.

                 It's not something that this State Legislature

                 will tell our localities:  It's your business

                 to promulgate democracy on your tab.  And that

                 indeed, we will all lift the franchise to the





                                                          2622



                 lofty status that it deserves.

                            And maybe it was errors of omission

                 before.  But today it can only be a

                 devastating error of commission and total

                 neglect if we do not pass this amendment.  Its

                 benefits have been clearly delineated by

                 Senator Connor:  no new bureaucracy, getting

                 rid of antiquated machines that make a mockery

                 of our franchise, getting trained inspectors

                 who no longer hopefully will have to work

                 18-hour days for below-minimum-wage pay,

                 making the franchise easily accessible to the

                 handicapped and physically challenged.

                            And I don't really know, after

                 giving this matter much thought, where it is

                 in our budget that we can't afford this.  And

                 so in the name of democracy, our forefathers,

                 I ask that we give this deep consideration and

                 vote in favor of this amendment.

                            Thank you, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Dollinger, do you wish to speak on the

                 amendment?

                            SENATOR DOLLINGER:    Just briefly,

                 Mr. President.





                                                          2623



                            Three quick things.  First of all,

                 Senator Connor emphasized this is mandate

                 relief.  We're using state dollars to take

                 over an obligation of the counties.  We've had

                 a lot of debates in this chamber in the course

                 of the last three or four years about mandate

                 relief.  Here's a chance to put mandate relief

                 in effect.  Take off this burden from local

                 property taxpayers and put it on the state.

                 We've got the revenues, we collect broad-based

                 taxes, this is the right thing to do.

                            Two, Senator Connor talked about

                 the implications of Gore against Bush or Bush

                 against Gore.  And I would just suggest, I

                 remember a day, Senator Connor, two years ago,

                 just about two years and a couple of months

                 ago, I sat in the Monroe County Board of

                 Elections because there was a state race that

                 depended on affidavit ballots.  And the

                 ballots were in a huge bin.  And they'd pick

                 out the ballot, and the ballot would be

                 partially sealed, and you would stand there

                 and someone would grab ahold of the seal to

                 see whether the seal could be broken.

                            And I can remember a lawyer from





                                                          2624



                 the Republican Party looking at me and saying,

                 "Hey, do you think they're going to count that

                 kind of a ballot down in the Bronx?"  And we'd

                 chuckle between ourselves and say, "Oh, no,

                 they probably either counted it or they'll

                 never count it."  And we'd laugh among

                 ourselves because of the disparity between

                 what we might be doing in Monroe County and

                 what they might be doing in the Bronx or other

                 places.

                            I would suggest to you that if that

                 Supreme Court decision becomes law in this

                 state, that if our due process and equal

                 protection clauses are interpreted the same,

                 it will be unconstitutional to deal with one

                 ballot in Rochester one way and another ballot

                 another way in the Bronx or Manhattan or in

                 Hamilton County.

                            And I would suggest that the state

                 setting, taking control of elections will

                 decrease the possibility that some candidate

                 in a close election -- remember how close that

                 election was -- would be denied due process or

                 equal protection because of the

                 inconsistencies in the method of counting





                                                          2625



                 ballots at those little tables.

                            Finally, Mr. President, I'll

                 conclude on one other note.  Senator Connor's

                 amendment will do one thing.  In my judgment,

                 it will continue to support our faith in the

                 most important thing we do.  Unfortunately, in

                 this country in the last six months a whole

                 bunch of people have gone to bed at night and

                 said, Do you think they really counted my

                 vote?  How do I know that they counted my

                 vote?

                            I would suggest to you that the one

                 great faith in our democracy is to know that

                 when they gave me my vote total last year, I

                 sat there and said, Great.  Out of those X

                 thousands of people who voted for me, I was

                 one of them.

                            I would suggest our experience in

                 Florida and the experience that Senator

                 Connor's amendment will make less likely in

                 the future is that anybody will have to say at

                 the end of the election, I'm not sure my vote

                 counted.  Every vote should count.  We tell

                 people their vote counts.  Pass Senator

                 Connor's amendment and we will make it more





                                                          2626



                 likely that everyone will know and have

                 confidence that their vote counts.

                            ACTING PRESIDENT KUHL:    Senator

                 Schneiderman, did you wish to be recognized to

                 speak on the amendment?

                            SENATOR SCHNEIDERMAN:    Yes, thank

                 you, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Schneiderman, on the amendment.

                            SENATOR SCHNEIDERMAN:    I think

                 there is no area in which the gap between our

                 rhetoric as members of the New York State

                 Legislature and our actions is greater than in

                 the area of election reform, campaign finance

                 reform.  The public's cynicism about our work

                 in this area probably is at an all-time high.

                 And it would be a great shame if we end this

                 year's legislative session with another round

                 of reports, commissions, finger pointing by

                 the two houses, and no concrete action.

                            This is a proposal that I

                 respectfully submit is up for adoption by the

                 Majority Senator who wants to take it and do

                 something good for this entire state.  I was

                 in the Elections Committee as Senator Maltese





                                                          2627



                 was sponsoring a bill and we had gone through

                 discussion about the lack of pay for election

                 inspectors, the problem all over the state.

                 This is something both sides of the aisle

                 recognize.  This is something we should not

                 neglect, we must not neglect.  It is not a

                 partisan issue.  I urge everyone to vote yes.

                            But I also urge that, in the

                 unlikely event that this excellent amendment

                 is defeated, that this is an issue we take up

                 later in the session and actually do something

                 about.

                            Thank you.

                            ACTING PRESIDENT KUHL:    Any other

                 Senator -- Senator Brown, do you wish to speak

                 on the amendment?

                            SENATOR BROWN:    Yes, Mr.

                 President, I do.

                            ACTING PRESIDENT KUHL:    Senator

                 Brown, on the amendment.

                            SENATOR BROWN:    I want to commend

                 Senator Connor for this comprehensive election

                 reform proposal.  We say that one of our

                 values in this country and in this state and

                 in this Legislature is to have an election





                                                          2628



                 process that is fair and open and accurate.  I

                 think this comprehensive proposal for the

                 state to take over elections put forth by

                 Senator Connor will give us the ability to do

                 that in the state of New York.

                            One of the things that Senator

                 Schneiderman touched on when he spoke on the

                 amendment that struck me is the need for

                 training and to increase the pay to election

                 inspectors that this amendment also covers.

                            Earlier on, we heard an amendment

                 by Senator Gentile, the EPIC COPE amendment,

                 and we talked about the needs of our

                 vulnerable senior citizens.  Well, we all know

                 that in many communities around the state the

                 people that serve as election inspectors are

                 senior citizens.  And I can say in my

                 communities of Buffalo and Niagara Falls and

                 Grand Island in the city of Tonawanda, senior

                 citizens have come to me and have indicated

                 that they would like to see the pay for

                 working that 18 hours during an election

                 increased.  That the compensation for what

                 they do, the important role that they play,

                 just isn't great enough.





                                                          2629



                            Well, this is one of the things

                 that this amendment brought forth by Senator

                 Connor addresses.

                            I think the other thing that it

                 addresses is the need to train inspectors.  I

                 have been in election booths where there have

                 been some inspectors that don't know how to

                 remove the election results from the machine.

                 Clearly, a training issue.  Clearly, when

                 things like that occur, there is the potential

                 to wonder whether the results of the election

                 are being accurately recorded.

                            I think this would remove that kind

                 of concern that voters and observers have on

                 Election Days.  I think this is a proposal

                 that is comprehensive, that reflects Senator

                 Connor's 28 years of experience in dealing

                 with Election Law matters.  And I certainly

                 urge all of my colleagues, both Democrat and

                 Republican, to support this excellent

                 amendment.

                            Thank you, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Lachman, did you wish to be recognized to

                 speak on the amendment?





                                                          2630



                            SENATOR LACHMAN:    Yes, very

                 briefly.

                            ACTING PRESIDENT KUHL:    Senator

                 Lachman, on the amendment.

                            SENATOR LACHMAN:    I strongly

                 support, Mr. President, Senator Connor's

                 all-encompassing amendment here.  This past

                 summer I was put into a very difficult

                 situation in part of my district, which

                 includes the largest number of Russian

                 immigrants to the United States, when, on

                 Primary Day, there was a major conflict

                 between election inspectors and prospective

                 voters who were citizens.  The election

                 inspectors did not know how to handle the

                 situation.  They did not know what was the

                 right thing to do at a time when we told these

                 individuals, once they become citizens, they

                 would partake of the American dream.

                            This was in Brooklyn.  But there

                 are similar cases in Wisconsin, New Mexico,

                 not just Florida, as Senator Connor has said.

                            So I strongly urge support for this

                 amendment.

                            ACTING PRESIDENT KUHL:    Any other





                                                          2631



                 member wishing to speak on the amendment?

                            The Secretary will now canvass the

                 members.  Those in agreement, please raise

                 your hands and keep them up until we have the

                 announcement of results, please.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Breslin, Brown, Connor,

                 Dollinger, Espada, Gentile, Hassell-Thompson,

                 Kruger, Lachman, Markowitz, Mendez,

                 Montgomery, Onorato, Oppenheimer, Paterson,

                 Schneiderman, A. Smith, M. Smith, Stachowski,

                 Stavisky, and also Senator Duane.

                            ACTING PRESIDENT KUHL:    The

                 amendment fails.

                            SENATOR DOLLINGER:    Mr.

                 President, point of order.

                            ACTING PRESIDENT KUHL:    Senator

                 Dollinger, why do you rise?

                            SENATOR DOLLINGER:    Just as a

                 point of order, Mr. President, what was the

                 vote on the amendment -- or what was the vote

                 on the canvass?

                            ACTING PRESIDENT KUHL:    It is not

                 a vote, Senator.  There's a canvass of the

                 members to see if there is an agreement to





                                                          2632



                 support the amendment.  That is the way the

                 rules read.  And there is not a majority of

                 the members who agree to support the

                 amendment.

                            SENATOR DOLLINGER:    Well, then,

                 what was the number that failed -

                            ACTING PRESIDENT KUHL:    Senator,

                 I don't hear your point of order.  It sounds

                 like it's a mixed blessing of what you're

                 trying to inquire.  That's certainly out of

                 order.  You know the rules.  I know that

                 you've been reading them.

                            And other than Senator Onorato

                 looking spiffy and Senator Gentile looking

                 very spiffy with a red rose, I note that you

                 are out of order.

                            SENATOR DOLLINGER:    I'll retire,

                 Mr. President.

                            ACTING PRESIDENT KUHL:    I thought

                 probably you would, Senator.  Thank you.

                            (Laughter.)

                            ACTING PRESIDENT KUHL:    I would,

                 just for the benefit of the members, note that

                 in fact the debate on the concurrent

                 resolution started at 1:01.  So there's





                                                          2633



                 approximately -- less than twenty minutes left

                 for the proposal of two additional amendments.

                            Senator Stachowski, do you rise for

                 the purpose of offering an amendment?

                            SENATOR STACHOWSKI:    Yes, I do,

                 Mr. President.  And -

                            ACTING PRESIDENT KUHL:    You ask

                 that the reading of it be waived and you have

                 an opportunity to explain it?

                            SENATOR STACHOWSKI:    Yes, Mr.

                 President.

                            ACTING PRESIDENT KUHL:    The

                 reading of it is waived, and you're afforded

                 an opportunity to explain the amendment.

                            Senator Stachowski.

                            SENATOR STACHOWSKI:    Not being as

                 big an amendment -- obviously, this was the

                 biggest one that we have, and I'll try to go

                 through it as fast as possible.

                            And if other members want to speak

                 on it, I would advise that they try to be as

                 concise as possible on the area that they're

                 going to address, because there may be some

                 members that would like to speak on the

                 resolution itself after the amendments are





                                                          2634



                 finished.

                            But having said that, I'd like to

                 say that our amendment would be a good step

                 forward for not only this budget but for

                 future budgets.  And it covers a myriad of

                 areas.  And just briefly going over them,

                 there's a piece that would take pre-K from

                 being folded in and add some additional

                 money -- folded into Flex-aid, that is, and

                 have some additional funding for that, roughly

                 $150 million.  A Medicaid buy-in for HIV would

                 be included.  Medicaid takeover for long-term

                 care would be included.  High-tech incubators

                 and student fees would have an additional

                 amount of money.  Equal business -- equal

                 business and women/minority business

                 restoration would have a piece.  Economic

                 development zones, which would have a little

                 twist in that current and inner-city

                 businesses would have a special amount of

                 money added in an economic development zone.

                            A guarantee of the EITC.  A

                 consolidation of the motor fuel tax; that is,

                 that right now there's three separate taxes.

                 This would eliminate one, roll the other two





                                                          2635



                 together, and make sure that we would never

                 gain more than 5 percent on the state tax on

                 motor fuels.  So that there would be no

                 windfall when we have a situation, as we had

                 this past winter, where all the fuel costs

                 went way up and as a result of the steady tax

                 the state got a windfall that it probably

                 didn't want from the people that pay for those

                 heavy costs.  And that's something that this

                 piece would make sure we didn't get in the

                 future.

                            We also have a piece in this

                 amendment that would index pension exclusion

                 and dependent exemption.  And by that I mean

                 that private and federal pensions would be

                 addressed so that in the future they would be

                 worth what they're worth and the increases

                 wouldn't be taxed, so that we're not taking

                 money away from pensioners.  As you know, the

                 state pensioners don't face that problem,

                 because their money's not taxable.  And we've

                 done so much for them, it's time we should do

                 something for the other pensioners in our

                 state and try to treat them a little bit more

                 equally.





                                                          2636



                            And finally, the sales tax on

                 clothing and necessities would be eliminated

                 altogether, and that also has a cost.

                            That basically is the amendment.  I

                 could be more specific if people would want.

                 But in the sake of time, since we are getting

                 so close to the close of the debate time

                 allotted, I did it as fast as possible, as

                 concise as possible.  And as you know, I

                 usually like to speak much longer.  But that's

                 all I need to say.

                            And I am sure other members are

                 going to get up to speak about additional

                 pieces of this particular amendment.

                            Thank you, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Breslin, did you wish to be recognized on the

                 amendment?

                            SENATOR BRESLIN:    Thank you very

                 much, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Breslin, on the amendment.

                            SENATOR BRESLIN:    I'd like to

                 speak to a portion of the amendment dealing

                 with the Medicaid takeover of nursing home and





                                                          2637



                 home care costs.  As I'm sure many of you

                 recall because you were here, the local

                 portion was reduced to 10 percent back in

                 1983.  And then this body saw fit, along with

                 the Assembly, to reduce it another 1 percent

                 in the early 1990s.  But the localities still

                 pay 9 percent of those nursing home costs.

                            From that perspective, it's an

                 unfunded mandate.  And we routinely speak

                 about local burdens of taxes which prevent the

                 development of industry and business in our

                 local communities and counties.  But now we

                 have the opportunity, with these surpluses, to

                 do away with that 9 percent, do away with that

                 unfunded mandate.  And if we do that, we will

                 realize an $806 million savings to the

                 localities, which includes $466 million to

                 New York City and $340 million to the

                 remaining counties.

                            We argued in years past that we

                 couldn't do it because of the difficult times

                 that we experienced here in the state of

                 New York.  Now we have the opportunity to be

                 not disingenuous but to be sincere in our

                 efforts to reduce those burdens on the





                                                          2638



                 localities.

                            And I urge the passage of this

                 amendment, and I urge the passage of this part

                 included in that amendment.

                            Thank you, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Duane, why do you rise?

                            SENATOR DUANE:    Thank you, Mr.

                 President, to speak on the amendment.

                            ACTING PRESIDENT KUHL:    Senator

                 Duane, on the amendment.

                            SENATOR DUANE:    Thank you very

                 much.

                            One of the most important parts of

                 this amendment includes Medicaid buy-in for

                 persons with HIV or AIDS.  What this amendment

                 would do is to add an additional $7 million to

                 the Medicaid appropriation to cover the

                 additional cost of including HIV-positive

                 individuals in the Medicaid buy-in program.

                            The reason this is so important is

                 because a person with HIV disease is stuck

                 between a rock and a hard place.  In order to

                 stop, in many cases, the progression to AIDS,

                 a person needs to take protease inhibitors.





                                                          2639



                 They are very expensive drugs.  And so for a

                 person to not be able to participate in a

                 Medicaid buy-in so that they can continue to

                 afford their medication makes it impossible

                 for them to go back to work on a part-time or

                 a full-time basis.

                            I have many, many people in my

                 district who have HIV disease or AIDS and in

                 fact are taking protease inhibitors and are

                 able to work.  But they can't go to work

                 because they are unable to afford the drugs

                 that will keep them from getting sick.

                            I know that my district is not the

                 only place in New York State where this is the

                 case.  It actually is happening throughout

                 New York State.  You probably don't know

                 everybody who this impacts.  Because of the

                 medications we have today, you can't really

                 tell who may or may not have AIDS or HIV

                 disease.

                            But the drugs that make it possible

                 for people to live independent, working lives

                 are very, very expensive.  And that's why we

                 need to add the $7.2 million to allow for

                 these people to buy into Medicaid.





                                                          2640



                            We'll be bringing language along

                 with this to show how it is that people would

                 be able to buy in for it.  But for now, it's

                 really important for many people throughout

                 New York State who are impacted by HIV/AIDS to

                 be able to participate in the Medicaid buy-in.

                 It's $7.2 million.  It's money well spent.

                 And I encourage my colleagues to vote for the

                 amendment language to allow people to have

                 this independent life.

                            Thank you, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Stavisky, why do you rise?

                            SENATOR STAVISKY:    On the

                 amendment, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Stavisky, on the amendment.

                            SENATOR STAVISKY:    The amendment

                 restores some of the Governor's budget cuts

                 that have not been replaced by the Majority in

                 their budget resolution.  And for this and for

                 many other reasons -- we ought to be restoring

                 some of the higher education cuts -- I urge

                 support for the amendment.

                            Thank you.





                                                          2641



                            ACTING PRESIDENT KUHL:    Is there

                 any other member wishing to speak on the

                 amendment?

                            Senator Gentile.

                            SENATOR GENTILE:    Yes, Mr.

                 President, on the amendment.

                            As part of this amendment that

                 Senator Stachowski has brought forth, it

                 includes taking the funding for

                 pre-kindergarten and making it a separate

                 budget item, not putting it into the so-called

                 Flex-aid, as the Governor has suggested.

                            I think this is important enough to

                 point out on this floor.  Because as we all

                 know, pre-kindergarten funding has, for the

                 last several years, under universal pre-K,

                 been a separate funded item.  And certainly

                 from experience in this house,

                 pre-kindergarten funding prior to universal

                 pre-K in many instances had been a

                 discretionary member item funding.  And under

                 discretionary member item funding, sometimes

                 some Senators would get discretionary funding

                 for pre-K; other times, other Senators

                 wouldn't get discretionary funding for pre-K.





                                                          2642



                            And who suffered when that

                 occurred?  The people who suffered are the

                 four-year-olds who are in the district where,

                 in the wisdom of the Senate, certain members

                 got funding for pre-kindergarten programs and

                 other members did not.  That all came to an

                 end, that all came to an end when we passed

                 universal pre-K and made it mandatory in the

                 state budget.  It was no longer subject to the

                 whims of a particular house.

                            I think under Flex-aid, we go back,

                 we take a step back by making it up to the

                 whims of the local districts whether to offer

                 pre-kindergarten funding.  It has been proven

                 pre-kindergarten programs are effective and

                 help the four-year-olds get started and

                 socialize.  We need to continue, under the

                 present universal pre-kindergarten funding,

                 making it a separate aspect of the budget.

                            One other item that's in Senator

                 Stachowski's amendment is the repeal of the

                 sales tax on clothing and necessities.  That

                 is, the complete repeal of the sales tax on

                 clothing and necessities.  We have in this

                 state again come together, taken a large step





                                                          2643



                 forward by repealing the sales tax a year ago,

                 up to $110 per item on clothing and footwear.

                            We now must take the second step,

                 as Senator Stachowski has suggested, and

                 repeal the sales tax on clothing, shoes, and

                 other necessities completely so that those who

                 have the opportunity -- those of us in New

                 York who have the opportunity to travel to

                 other states surrounding us -- New Jersey,

                 Pennsylvania, other states where there are

                 lower sales taxes or no sales tax -- will no

                 longer have that incentive to do it because

                 New York State will have repealed its sales

                 tax on clothing, shoes, and other necessities.

                            The time is now.  And the budget

                 implications are not that much more

                 significant now that we've taken the step to

                 $110.  We need to follow Senator Stachowski's

                 advice and proposal to eliminate and repeal

                 the sales tax completely on clothing, shoes,

                 and other necessities.

                            So, Senator Stachowski, I will be

                 voting along with you on this amendment.

                            ACTING PRESIDENT KUHL:    Senator

                 Schneiderman, why do you rise?





                                                          2644



                            SENATOR SCHNEIDERMAN:    Mr.

                 President, to be heard on the amendment.

                            ACTING PRESIDENT KUHL:    Senator

                 Schneiderman, on the amendment.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.

                            I think this is a tremendously

                 important set of additions to the budget

                 resolution.  I would urge in particular that

                 something that characterizes many of the

                 elements of Senator Stachowski's amendment is

                 an effort to make this year's budget somewhat

                 more progressive.

                            We have a problem in the State of

                 New York that over the last ten years we've

                 become the state with the largest gap between

                 rich and poor in the United States.  It is

                 increasing every year.  The proposed budget

                 would make that worse.

                            One provision that I think really

                 belongs in this budget, and I don't think

                 there's any reasonable argument against it, is

                 a guarantee of the earned income tax cut.

                 We're big on tax cuts here that benefit the

                 wealthy.  This is the key tax cut for working





                                                          2645



                 families in this state.  There is no excuse

                 for not making this a guaranteed tax cut.

                 There's no excuse for discriminating against

                 working families in terms of our tax code.

                            Many other elements in this

                 amendment also seek to make our state somewhat

                 more progressive.  New York led the country in

                 laws for working people decades ago.  I'm

                 sorry that over the last 10 to 15 years we

                 have moved so radically in the wrong

                 direction.  I urge a vote yes on this

                 amendment to take a step to redress that

                 problem.

                            Thank you, Mr. President.

                            ACTING PRESIDENT KUHL:    Is there

                 any other Senator wishing to speak on this

                 amendment?

                            The Secretary will now canvass the

                 members.  All those members who are in

                 agreement, please raise your hand.

                            Announce the names of those in

                 agreement.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Breslin, Brown, Connor,

                 Dollinger, Duane, Espada, Gentile,





                                                          2646



                 Hassell-Thompson, Kruger, Lachman, Markowitz,

                 Mendez, Montgomery, Onorato, Oppenheimer,

                 Paterson, Schneiderman, A. Smith, M. Smith,

                 Stachowski, and Senator Stavisky.

                            ACTING PRESIDENT KUHL:    The

                 amendment fails.

                            The concurrent resolution is before

                 the house.

                            Senator Dollinger, why do you rise?

                            SENATOR DOLLINGER:    Mr.

                 President, I believe there's an amendment at

                 the desk.  I'd waive its reading and ask that

                 I be heard by the house just briefly.

                            ACTING PRESIDENT KUHL:    Senator

                 Dollinger, the amendment reading is waived.

                 You're now afforded the opportunity in a very

                 short time to explain the amendment.

                            SENATOR DOLLINGER:    Thank you,

                 Mr. President.

                            This is a very simple amendment.

                 It does three things that the budget

                 resolution before the house does not do.

                 First of all, it provides $50 million for

                 workforce incentives in the healthcare

                 industry.  Everyone knows that the number of





                                                          2647



                 nurses and home healthcare aides and others in

                 the nursing home and hospital industry in this

                 state, that we are starved for people to do

                 the work.  We need to get into putting an

                 incentive in the system so that more people

                 will choose these professions.  And the way we

                 have to do it is to increase their pay, reduce

                 the payback of their loans, and encourage them

                 to make this their professional work.  Because

                 it's critically important to our nursing home

                 and hospitals.

                            The second piece is an increase in

                 payments to nursing homes.  I know that the

                 Senate Majority has about a $220 million boost

                 to nursing homes in New York State.  This is

                 an extra $100 million, which in turn will draw

                 down $100 million federal dollars, putting

                 $200 million more into our hard-pressed

                 nursing home industry.  They are squeezed by

                 too-low reimbursement rates from Medicaid.

                 They are experiencing all the problems

                 attendant to the financial squeeze.  They're

                 unable to keep employees, they're unable to

                 pay them a reasonable rate, and unfortunately

                 there's a rising incidence of mistakes because





                                                          2648



                 those employees are overburdened in their

                 daily work.

                            As many of you know, this is

                 oftentimes a gateway to getting out of

                 poverty.  And we are taking these citizens of

                 New York, we're stressing them by putting lots

                 of responsibility and too little pay.  The

                 hundred million dollars that we put in the

                 state budget will draw down a hundred million

                 dollars in federal funds, for $200 million in

                 boosted aid to the nursing home industry.

                            And the final piece, Mr. President,

                 is a $5 million appropriation for home

                 healthcare.  That's designed to do the same

                 kind of thing in the home healthcare industry,

                 so that we encourage people to make this a

                 reasonable profession and we do what we all

                 know we need to do to encourage the people to

                 get involved, to encourage people to make it a

                 profession they can depend on.  And that is to

                 give them the one bit of respect that everyone

                 in this state understands, which is to pay

                 them more so that they can make that leap.

                            All three of these things in this

                 amendment will benefit the quality of





                                                          2649



                 long-term care in this state.  With rising

                 numbers of populations who need it, we should

                 be guaranteeing that they get the best quality

                 care, Mr. President.

                            I move the amendment.

                            ACTING PRESIDENT KUHL:    The

                 Secretary will now canvass the members.  Those

                 in agreement, please raise your hand.

                            Announce the names of those members

                 in agreement.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Breslin, Brown, Connor,

                 Dollinger, Duane, Espada, Gentile,

                 Hassell-Thompson, Kruger, Lachman, Markowitz,

                 Mendez, Montgomery, Onorato, Oppenheimer,

                 Paterson, Schneiderman, A. Smith, M. Smith,

                 Stachowski, and Senator Stavisky.

                            ACTING PRESIDENT KUHL:    The

                 amendment fails.

                            The question is on the resolution.

                            The Secretary will call the roll.

                            SENATOR DOLLINGER:    Slow roll

                 call, Mr. President.

                            ACTING PRESIDENT KUHL:    A slow

                 roll call has been requested.  Are there five





                                                          2650



                 member in the chamber that will stand and

                 request it?

                            There are five members standing.

                            A slow roll call will be recorded

                 by the Secretary.  The Secretary will ring the

                 bells.

                            THE SECRETARY:    Senator Alesi.

                            SENATOR ALESI:    Yes.

                            THE SECRETARY:    Senator Balboni.

                            SENATOR BALBONI:    Aye.

                            THE SECRETARY:    Senator Bonacic.

                            SENATOR BONACIC:    Yes.

                            THE SECRETARY:    Senator Breslin.

                            ACTING PRESIDENT KUHL:    Senator

                 Breslin, to explain your vote?

                            SENATOR BRESLIN:    Yes, Mr.

                 President.

                            ACTING PRESIDENT KUHL:    Senator

                 Breslin, to explain his vote.

                            SENATOR BRESLIN:    It is my

                 intention to vote for this budget.  It has

                 some needed items in it over and above the

                 Governor's budget.  But I also have some

                 doubts as well, and those doubts were outlined

                 in the five amendments which were defeated.





                                                          2651



                            We had the opportunity to increase

                 pharmaceutical care for our elderly.  We're

                 not doing it.  We had an opportunity to stop

                 pre-K from being folded into Flex-aid.  We're

                 not doing it.  We had an opportunity for a

                 Medicaid buy-in for HIV patients.  We're not

                 doing it.  Medicaid takeover, we're not doing

                 it.  We had an opportunity, with all the

                 problems with our healthcare workers, to put

                 $50 million into some incentive programs.

                 We're not doing it.  We had the opportunity

                 now, and particularly now, for the state

                 takeover of elections when it's so desperately

                 needed.  No, we're not doing that either.

                            And for those reasons and other

                 reasons, I think we have a lost opportunity

                 here.

                            But having said that, there have

                 been some add-ons for education which are

                 critically important to the state of New York.

                 And I grudgingly vote in the affirmative on

                 this resolution.

                            ACTING PRESIDENT KUHL:    Senator

                 Breslin will be recorded in the affirmative.

                            THE SECRETARY:    Senator Brown.





                                                          2652



                            ACTING PRESIDENT KUHL:    Senator

                 Brown, to explain his vote.

                            SENATOR BROWN:    Yes, to explain

                 my vote, Mr. President.

                            Like Senator Breslin before me, I

                 too am going to grudgingly vote in the

                 affirmative on this budget.  It does some

                 things that are a step in the right direction

                 and an improvement over the Governor's budget.

                 But in many ways, it doesn't go far enough.

                            And there are two areas that are

                 particularly disappointing to me that I want

                 to highlight.  One is the proposal on the

                 Empire Zones, to increase to 14 and to extend

                 these benefits to other communities.  Now,

                 what this does is moves drastically away from

                 the initial intent of the Empire Zone program,

                 which was to encourage development of urban

                 brownfields and abandoned and dilapidated

                 areas characterized by high poverty and high

                 unemployment.  This completely moves away from

                 that.

                            A proposal that would have been

                 better, which was in the budget amendments

                 that unfortunately failed that didn't get





                                                          2653



                 consideration by some of our members, was the

                 proposal for the urban tax credits.

                            The other area where I think this

                 budget is very disappointing is in the area of

                 the Superfund.  The Governor proposed

                 $138.3 million in his budget, and this budget

                 proposes $119 million.  This budget doesn't go

                 far enough to fund the state Superfund to

                 protect our environment, and it doesn't go far

                 enough to help the economy of some of our

                 communities that are most depressed, most in

                 need.

                            ACTING PRESIDENT KUHL:    Senator

                 Brown -- Senator Brown, how do you vote?

                            SENATOR BROWN:    In the

                 affirmative.

                            ACTING PRESIDENT KUHL:    Senator

                 Bruno will be recorded in the affirmative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator Bruno.

                            (Senator Bruno was indicated as

                 voting in the affirmative.)

                            THE SECRETARY:    Senator Connor.

                            ACTING PRESIDENT KUHL:    Senator

                 Connor, to explain his vote.





                                                          2654



                            SENATOR CONNOR:    Thank you, Mr.

                 President.

                            The Majority proposal certainly

                 makes improvements over the Governor's

                 submitted budget.  But frankly, Mr. President,

                 as I said in my opening statement, it just

                 doesn't go far enough.

                            And I'm not voting for any

                 proposal, resolution, or later budget that

                 doesn't make an important first start toward

                 funding education so that we can guarantee to

                 the youth of this state, wherever they live -

                 upstate, downstate, in the suburbs, rural,

                 urban, it really doesn't matter.  We have to

                 provide, it's our constitutional duty to

                 provide sound, basic education.  And if we

                 don't do it, we're foolish.  The future of our

                 state depends on it.

                            While the Majority does spend more

                 than the Governor proposed on education, a

                 significant amount more, it just doesn't go

                 far enough.  It doesn't go far enough.  We

                 need that other $1.1 billion over a school

                 year that our amendment proposed, with a

                 fiscal impact in this year of about





                                                          2655



                 $750 million or so.  We need that done now.

                 We need to make that the priority.  The public

                 expects it's a priority for the state.

                            And until I see that in a

                 resolution or a budget, my vote, Mr.

                 President, is no.

                            ACTING PRESIDENT KUHL:    Senator

                 Connor will be recorded in the negative.

                            THE SECRETARY:    Senator

                 DeFrancisco, excused.

                            Senator Dollinger.

                            ACTING PRESIDENT KUHL:    Senator

                 Dollinger, to explain his vote.

                            SENATOR DOLLINGER:    Thank you,

                 Mr. President.

                            I join with Senator Connor.  He

                 couldn't have said it better.  We have a

                 problem of unequal opportunity in our

                 educational system.  And what this budget does

                 is this uses a formula that we've used for

                 twenty years that we know has perpetuated the

                 inequality in opportunity and simply takes

                 hundreds of millions of additional dollars but

                 puts it through the same system.

                            The whole point that we made in our





                                                          2656



                 first canvass of agreement -- I'm not sure

                 it's an amendment.  I don't understand it.  I

                 think it's foolish and silly.  But be that as

                 it may, we did it.  We followed the rules, Mr.

                 President.  But nonetheless, we said take a

                 billion dollars and put it where you know it

                 needs to be put, in areas where educational

                 opportunity is not a reality.

                            I couldn't agree with Senator

                 Connor more.  I will not vote to follow a

                 twenty- or thirty-year trend of putting our

                 money into a school system and a school

                 formula that we know creates unequal education

                 in this state.  It's that simple.  Until that

                 changes, I will vote no, I will vote no -- I

                 will vote yes on canvasses of agreement, I

                 will keep pushing for canvasses of agreement.

                 And someday somebody will explain to me what

                 happens when somebody doesn't vote to canvass

                 an agreement.  Does that presume that they are

                 canvassing those who are in disagreement?

                            Quite frankly, we've bent the

                 English language out of all reasonable

                 proportion.  I'm not sure what we did today.

                 I'm not sure what half the house would say





                                                          2657



                 they did today.  I'm not sure why we even went

                 through the exercise of this canvass of

                 agreement.  Whatever happened to simple yes

                 and nos?

                            I'll give you a simple no, Mr.

                 President.  My simple no is I vote no until we

                 change the opportunity to create equal

                 educational opportunity in this state.  It

                 will be no now and no tomorrow and no when

                 this budget is passed, whenever it is passed

                 this year.

                            Please record me in the negative.

                            ACTING PRESIDENT KUHL:    Senator

                 Dollinger will be recorded in the negative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator Duane.

                            ACTING PRESIDENT KUHL:    Senator

                 Duane, to explain his vote.

                            SENATOR DUANE:    Thank you, Mr.

                 President.

                            I can't possibly vote for this

                 budget amendment as presented to us.  First

                 and foremost, to not include a Medicaid buy-in

                 for people with HIV and AIDS is just

                 unconscionable, that we would make it more





                                                          2658



                 difficult for people who, because of recent

                 improvements in medication -- though they are

                 expensive -- are able to work, that we would

                 stop them from going to work is frankly

                 unconscionable.

                            It's not a tremendous amount of

                 money.  It's $7.2 million.  Surely we could

                 allow the tens of thousands of New Yorkers who

                 want to work to be able to go to work by

                 allowing them to buy into Medicaid and

                 continue to take medications which will keep

                 them alive.

                            We haven't had a thorough

                 discussion in this body on the issue of

                 Flex-aid.  To try to fold pre-K into Flex-aid

                 makes no sense at all.  I think that Flex-aid

                 has a tremendous amount of problems with it

                 anyway, not just folding in pre-K but other

                 issues -- special education, a whole host of

                 other issues as well.  Before we can possibly

                 vote on this, we would have to look at what

                 the impact of Flex-aid would be on the

                 education that's provided in this state.

                            The fairest tax cut of all is to

                 provide an earned income tax credit to the





                                                          2659



                 hardest-hit New Yorkers, people who really do

                 need to have a little bit more money in their

                 pockets.  I don't know why it is that so many

                 of my colleagues here don't seem to care about

                 those people who could benefit from the earned

                 income tax credit.  To me, it's a no-brainer.

                 I don't know why it is that we're taxing these

                 people to the extent we are anyway, but surely

                 we can give them the earned income tax credit.

                            ACTING PRESIDENT KUHL:    How do

                 you vote, Senator Duane?

                            SENATOR DUANE:    I'm voting no.

                            ACTING PRESIDENT KUHL:    Senator

                 Duane will be recorded in the negative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator Espada.

                            ACTING PRESIDENT KUHL:    Senator

                 Espada, to explain his vote.

                            SENATOR ESPADA:    Thank you, Mr.

                 President.

                            This is a proud day for the staff

                 and the members of our Democratic conference.

                 We stand here in adherence and in compliance

                 with Judge DeGrasse's decision.  This side of

                 the aisle is in compliance with the New York





                                                          2660



                 State Constitution.

                            We stood here today and proffered

                 budget amendments that would have made

                 prescription cost reductions possible for our

                 seniors, the demographic group that for the

                 most part sends us here.  We stood tall in a

                 respect for democracy and fair and accurate

                 elections, and a host of other budget

                 amendments, Mr. President, that would have

                 truly brought our economy to the 21st century.

                            Unfortunately, these budget

                 amendments were defeated.  And the budget

                 resolution that we're voting on is therefore

                 lacking, and I will be voting in the negative.

                            ACTING PRESIDENT KUHL:    Senator

                 Espada will be recorded in the negative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator Farley.

                            SENATOR FARLEY:    Aye.

                            THE SECRETARY:    Senator

                 Fuschillo.

                            SENATOR FUSCHILLO:    To explain my

                 vote, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Fuschillo, to explain his vote.





                                                          2661



                            SENATOR FUSCHILLO:    I listened to

                 the other side of the aisle, and you would

                 think we're going downwards.  But when you

                 take a look at this resolution -- $1.8 billion

                 in new tax cuts, $4 billion in reserves to

                 protect those tax cuts, more than $500 million

                 for the Ge-NY-sis and biotech development.  We

                 expand all the Empire Zones throughout this

                 state.  $1.8 billion in tax cuts over the next

                 six years.  Over $900 million -- and I see the

                 schoolkids up there -- over $900 million more

                 than last year for school aid.

                            Pretty good.  It sounds good.  It

                 sounds reasonable.  This state has certainly

                 been moving forward in the last six years.

                 This budget continues on that progression.

                            I proudly vote aye on this.

                            ACTING PRESIDENT KUHL:    Senator

                 Fuschillo will be recorded in the affirmative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator Gentile.

                            SENATOR GENTILE:    Yes.

                            THE SECRETARY:    Senator Gonzalez.

                            (No response.)

                            THE SECRETARY:    Senator Goodman.





                                                          2662



                            SENATOR GOODMAN:    Aye.

                            THE SECRETARY:    Senator Hannon.

                            (No response.)

                            THE SECRETARY:    Senator

                 Hassell-Thompson.

                            ACTING PRESIDENT KUHL:    Senator

                 Hassell-Thompson, to explain her vote.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Mr. President.

                            We have come today to represent a

                 group of people for whom we have been elected

                 who are the voiceless.  Earlier today, 15

                 youngsters came who were children of mothers

                 who are incarcerated in prison.  And they came

                 to beg us for help and support as we look at

                 this budget.

                            And as we came back in and began to

                 vote on each of these amendments, it made me

                 very sad to know that I was not able to

                 promise then, and I cannot assure them now,

                 that there will be a bipartisan vote on issues

                 that are of great importance to them.

                            And some of those issues certainly

                 are universal pre-K.  But more so, the whole

                 education budget.  And while I agree that we





                                                          2663



                 have put more into this budget, and I

                 congratulate us, so much more is needed.  You

                 saw, as I did, the report cards on our schools

                 in New York City.  And many of the children

                 that I represent in the 33rd Senatorial

                 district are represented in those statistics

                 of children who are failing.

                            And so it's my responsibility to

                 make sure that when I vote on the budget, that

                 that budget includes those items and those

                 things that will make the quality of their

                 lives better.  I don't feel that in voting for

                 this budget in this manner will do that

                 successfully.

                            Therefore, I'd like to be recorded

                 in the negative.

                            ACTING PRESIDENT KUHL:    Senator

                 Hassell-Thompson will be recorded in the

                 negative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator Hevesi.

                            (No response.)

                            THE SECRETARY:    Senator Hoffmann.

                            SENATOR HOFFMANN:    Aye.

                            THE SECRETARY:    Senator Johnson.





                                                          2664



                            SENATOR JOHNSON:    Aye.

                            THE SECRETARY:    Senator Kruger.

                            SENATOR KRUGER:    Yes.

                            THE SECRETARY:    Senator Kuhl.

                            SENATOR KUHL:    Aye.

                            THE SECRETARY:    Senator Lachman.

                            ACTING PRESIDENT KUHL:    Senator

                 Lachman, to explain his vote.

                            SENATOR LACHMAN:    Yes.  After

                 supporting all the amendments and the

                 canvasses of agreement, this is a very

                 difficult vote for me.  I see the pros and I

                 see the cons.

                            This has been a major improvement

                 on the Executive budget in terms of the

                 $938 million for education.  I would have

                 preferred to see a $1.1 billion increase for

                 education.

                            There has been a major improvement

                 here in terms of restoring full-time faculty

                 lines to where it was last year.  I would like

                 to decrease those full-time faculty lines.

                            There has been some improvement

                 with the SUNY hospitals -- Downstate,

                 Syracuse, Binghamton, and in Stony Brook.  I





                                                          2665



                 would like to see greater improvement.

                            In terms of transportation, there

                 has been an increase, but a minuscule increase

                 in terms of what is needed in the capital

                 program and the ongoing needs of

                 transportation in New York State.

                            Having weighed that all together,

                 and lacking the wisdom of Solomon, I therefore

                 will vote for the resolution.

                            ACTING PRESIDENT KUHL:    Senator

                 Lachman will be recorded in the affirmative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator Lack.

                            SENATOR LACK:    Aye.

                            THE SECRETARY:    Senator Larkin.

                            SENATOR LARKIN:    Aye.

                            THE SECRETARY:    Senator LaValle.

                            SENATOR LAVALLE:    Aye.

                            THE SECRETARY:    Senator Leibell.

                            SENATOR LEIBELL:    Aye.

                            THE SECRETARY:    Senator Libous.

                            SENATOR LIBOUS:    Yes.

                            THE SECRETARY:    Senator Maltese.

                            (No response.)

                            THE SECRETARY:    Senator





                                                          2666



                 Marcellino.

                            SENATOR MARCELLINO:    Mr.

                 President, to explain my vote.

                            ACTING PRESIDENT KUHL:    Senator

                 Marcellino, to explain his vote.

                            SENATOR MARCELLINO:    Mr.

                 President, I'm going to vote aye on this

                 budget amendment.  I think it's a good one.

                 I'm going to resist the temptation to spend

                 more and more and more and more -- on good

                 projects, on good concepts and good ideas.  I

                 will not knock anything that's been done here

                 today.  All good ideas.

                            But you have to live within your

                 pocketbook.  And we have to look to the

                 future.  And that's our problem.  This state

                 went $5 billion in deficits some years back by

                 going through the policy of spending,

                 spending, spending, spending without any look

                 to the future.  We're not going to go back

                 there again.

                            Partnering with the leadership in

                 this house and this Governor, this state is

                 back on sound fiscal footing.  We're going to

                 keep it that way by maintaining sound fiscal





                                                          2667



                 policies so we don't go crazy but we're going

                 to maintain our needs and support everyone who

                 needs to be supported.

                            I vote aye.

                            ACTING PRESIDENT KUHL:    Senator

                 Marcellino, in the affirmative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator Marchi.

                            SENATOR MARCHI:    Aye.

                            THE SECRETARY:    Senator

                 Markowitz.

                            SENATOR MARKOWITZ:    To explain my

                 vote.

                            ACTING PRESIDENT KUHL:    Senator

                 Markowitz, to explain his vote.

                            SENATOR MARKOWITZ:    The reason

                 why I'm going to vote no is that I know we can

                 do more.  We can do more for Brooklyn, we can

                 do more for the State of New York.  I don't

                 know how many years in the future we will be

                 faced with the amount of resources that we

                 currently have.  Now is the time to move

                 forward.

                            You're right, Senator Marcellino,

                 we should look forward.  And the forward





                                                          2668



                 movement is that this is the year that we

                 really can impact in a major way many of the

                 needs that residents of the state have at this

                 time.  So now is the time to do it.

                            And I understand where the Governor

                 and where the Senate Majority is at at this

                 moment.  We disagree, because we know the

                 needs are out there.  You heard the arguments

                 a little while ago from many of our members,

                 particularly in regards to education,

                 healthcare, many other needs.

                            And so the reason why I'm voting no

                 is that the people of Brooklyn and the people

                 of New York State deserve more, need more, and

                 this does not meet those needs, in my opinion.

                            I vote no.

                            ACTING PRESIDENT KUHL:    Senator

                 Markowitz will be recorded in the negative.

                            THE SECRETARY:    Senator Maziarz.

                            SENATOR MAZIARZ:    Yes.

                            THE SECRETARY:    Senator McGee.

                            SENATOR McGEE:    Yes.

                            THE SECRETARY:    Senator Meier.

                            SENATOR MEIER:    To explain my

                 vote, Mr. President.





                                                          2669



                            ACTING PRESIDENT KUHL:    Senator

                 Meier, to explain his vote.

                            SENATOR MEIER:    I'm just very

                 proudly going to vote aye, because those

                 resources that we're talking about happen to

                 be dollars that are earned by people who go to

                 work everyday.  They belong to them, not to

                 us.  They expect us to exercise prudence over

                 how we spend them.

                            I proudly vote aye.

                            ACTING PRESIDENT KUHL:    Senator

                 Meier will be recorded in the affirmative.

                            THE SECRETARY:    Senator Mendez.

                            SENATOR MENDEZ:    Yes.

                            THE SECRETARY:    Senator

                 Montgomery.

                            SENATOR MONTGOMERY:    No.

                            THE SECRETARY:    Senator Morahan.

                            SENATOR MORAHAN:    Yes.

                            THE SECRETARY:    Senator Nozzolio.

                            (No response.)

                            THE SECRETARY:    Senator Onorato.

                            ACTING PRESIDENT KUHL:    Senator

                 Onorato, to explain his vote.

                            SENATOR ONORATO:    To explain my





                                                          2670



                 vote, Mr. President.

                            Mr. President, I heard all the

                 debates here over the past 2½ hours.  And I

                 think that the amendments that were offered

                 today by this side of the aisle were prudent

                 and right on target.

                            While the resolution proposed by

                 Senator Bruno was certainly a great deal of

                 improvement over the Governor's original

                 proposal, I think the amendments and the

                 discussion that took place earlier gave us all

                 an opportunity, because we know that the

                 resolution that's going to pass today is not

                 going to be the final document of this 2001

                 budget.

                            So I hope that all of the

                 discussion that took place today was listened

                 to by not only the opposite side of the aisle,

                 but by the Assembly, and perhaps they'll

                 incorporate some of the suggestions that we

                 did make here today.

                            While again there were improvements

                 in the Governor's proposal, I am hopeful that

                 we will be given the opportunity to improve it

                 even further.  So I do reluctantly vote yes on





                                                          2671



                 the budget.

                            ACTING PRESIDENT KUHL:    Senator

                 Onorato will be recorded in the affirmative.

                            THE SECRETARY:    Senator

                 Oppenheimer.

                            SENATOR OPPENHEIMER:    Yes.

                            THE SECRETARY:    Senator Padavan.

                            SENATOR PADAVAN:    Yes.

                            THE SECRETARY:    Senator Paterson.

                            ACTING PRESIDENT KUHL:    Senator

                 Paterson, to explain his vote.

                            SENATOR PATERSON:    Mr. President,

                 "prudent and right on target."  Those were the

                 words that Senator Onorato used to describe

                 five amendments that this conference offered

                 which we feel would improve the package -

                 which we think is already an improvement over

                 the original budget proposal by the

                 Governor -- as offered today by the Majority.

                 These needed expenditures fall well within the

                 perimeters of what our economy can afford this

                 particular year.

                            Now, in criticizing it, the

                 Majority suggests that they have a better

                 solution, to enact a tax cut graduated in next





                                                          2672



                 year and the year after, at times we have no

                 idea where the economy will be.  And the least

                 part of the tax cut is this year, when we

                 actually could generally forecast whether or

                 not our economy can absorb it.

                            Now, one of the most offensive

                 aspects of the tax cut, to me, is the fact

                 that we have an earned income tax credit that

                 only exists if the TANF, the Temporary

                 Assistance for Needy Families money comes from

                 the federal government.  In other words, if

                 for some reason that money doesn't come, and

                 it's in all likelihood that it will, we are

                 not going to allow for that earned income tax

                 credit.  Which is, in a sense, a tax cut for

                 those low-income people around this state who

                 badly need it.

                            So I think that the plan right now

                 is misprioritized, its value is not timely or

                 seasonable.  I'm going to vote against it.  My

                 vote is no, with the hope that as we go into

                 conference committees and we negotiate it,

                 perhaps we'll have a better plan and I'll take

                 a look at that when we come back to vote for

                 the budget approved by both the Senate and the





                                                          2673



                 Assembly.

                            So I vote no, Mr. President.  Thank

                 you.

                            ACTING PRESIDENT KUHL:    Senator

                 Paterson is recorded in the negative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator Rath.

                            SENATOR RATH:    Aye.

                            THE SECRETARY:    Senator Saland.

                            SENATOR SALAND:    Aye.

                            THE SECRETARY:    Senator Sampson.

                            (No response.)

                            THE SECRETARY:    Senator Santiago.

                            (No response.)

                            THE SECRETARY:    Senator

                 Schneiderman.

                            ACTING PRESIDENT KUHL:    Senator

                 Schneiderman, to explain his vote.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.

                            I also will be voting against the

                 budget resolution, and there are several

                 reasons for that.  I agree with many of my

                 colleagues who have spoken about the issue of

                 education funding.  There is not really any





                                                          2674



                 way that this budget resolution can be viewed

                 as moving forward to provide the sound, basic

                 education all the children of our state are

                 entitled to.  We shouldn't have had to have a

                 judge tell us that.  It is something we know.

                 It is our responsibility morally as well as

                 our constitutional responsibility as a

                 legislature to address this.  I will hope we

                 will return to it later this session.  But

                 that is one major deficiency.

                            Two other issues I wish to address

                 very briefly.  One is in addition to

                 inadequate funding of the school system, I

                 must say that that problem pales in comparison

                 to the absolutely disgraceful treatment of our

                 mass transit system in this budget.  The buses

                 and subways of the New York City Transit

                 Authority have been systematically defunded

                 over the last six years.  We now receive less

                 money in real state dollars than we received a

                 decade ago.  They're floating bonds backed by

                 farebox receipts for operating revenues.  You

                 know?  And even Mr. Lackman is laughing at

                 that, because it makes no sense.

                            I mean, this is something that we





                                                          2675



                 will pay the price for very, very soon.  The

                 annual ridership on the subways and buses of

                 New York has been up 35 percent in the last

                 five years.  We're not getting service

                 increases because they don't have the money.

                 And we will most certainly, sometime in the

                 year 2002 or perhaps the beginning of 2003, be

                 faced with a fare increase.  We have to

                 invest.

                            And if there's one theme that

                 underlies, I believe, all of our amendments

                 today -- and the words have been spoken more

                 articulately than I can by my colleagues -

                 this is not a budget of investment.

                            ACTING PRESIDENT KUHL:    Senator

                 Schneiderman, how do you vote?

                            SENATOR SCHNEIDERMAN:    Yes, I

                 think we should invest -

                            ACTING PRESIDENT KUHL:    Is that a

                 yes?

                            SENATOR SCHNEIDERMAN:    -- and I

                 vote no.

                            ACTING PRESIDENT KUHL:    Senator

                 Schneiderman will be recorded in the negative.

                            The Secretary will continue to call





                                                          2676



                 the roll.

                            THE SECRETARY:    Senator Seward.

                            SENATOR SEWARD:    Yes.

                            THE SECRETARY:    Senator Skelos.

                            SENATOR SKELOS:    Yes.

                            THE SECRETARY:    Senator A. Smith.

                            ACTING PRESIDENT KUHL:    Senator

                 Smith.

                            SENATOR ADA SMITH:    Thank you,

                 Mr. President.

                            I would like to commend the

                 Majority for their Senate one-house budget

                 resolution.  It clearly surpasses that of the

                 Executive budget.  And I want to agree with

                 Senator Meier when he stated that the funds

                 which we are about to expend belong to the

                 people.

                            But the people of the 12th

                 Senatorial district believe that we need to

                 invest more in education.  The children of the

                 city of New York are not getting the education

                 that they so rightly deserve.  The courts have

                 spoken, the people are speaking.  And they

                 speak through us.

                            And on behalf of the children, I





                                                          2677



                 vote no.

                            ACTING PRESIDENT KUHL:    Senator

                 Smith will be recorded in the negative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator M. Smith.

                            ACTING PRESIDENT KUHL:    Senator

                 M. Smith, to explain his vote.

                            SENATOR MALCOLM SMITH:    Thank you

                 very much, Mr. President.

                            I would have loved to have seen the

                 amendments that we put forward voted upon in

                 the affirmative.  However, there are some

                 things that I believe this particular

                 resolution falls short on.

                            And one -- or a couple of them are

                 I noticed that the Urban Communities

                 Development program was dropped off by

                 $3 million, the minority/women-owned business

                 program was dropped off by $3 million.  In

                 addition to the fact there was no discussion

                 around debt reform modification.  And also one

                 area I think is going to be very important to

                 us is identity theft on the criminal justice

                 side, where high-tech theft devices are being

                 utilized.





                                                          2678



                            However, as one who is an advocate

                 for veterans, I was very pleased to see there

                 was a million dollars more for veterans

                 services, $3 million for a blind vet annuity

                 program.  I also noted that they were

                 restoring nursing homes by $130 million.  I

                 would have liked to have had the $100 million

                 on our side.

                            And what I do see that is also

                 missing there is some assistance to other big

                 cities where they would have the ability to

                 establish their own authorities, like we do in

                 New York City.

                            However, I believe this is a good

                 start.  I hope through some negotiations, as

                 we go into conference, we'll make some changes

                 as I suggested.  But I will be voting aye.

                            ACTING PRESIDENT KUHL:    Senator

                 Smith will be recorded in the affirmative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator Spano.

                            SENATOR SPANO:    Aye.

                            THE SECRETARY:    Senator

                 Stachowski.

                            ACTING PRESIDENT KUHL:    Senator





                                                          2679



                 Stachowski, to explain his vote.

                            SENATOR STACHOWSKI:    Mr.

                 President, briefly to explain my vote.

                            There are some good parts to this

                 resolution, some increases over the

                 Executive's proposal that, as much as there's

                 parts that this budget resolution falls short,

                 I can't ignore some of the increases.  Getting

                 the SUNY positions back, helping community

                 colleges out, putting a large increase in

                 education, although it's not enough to give

                 everybody an equal opportunity.

                            I'll probably support this.  I do

                 have to mention, though, and it would be

                 remiss on my part if I didn't, that the

                 continuation of putting tax cuts into the

                 future and only taking a small bite out of the

                 cost of them in the first year is just -

                 we've been very fortunate so far.  It's just

                 not a good practice.  I wish we would do more.

                            I don't mind doing the tax cuts.  I

                 think they're a good idea when we have the

                 extra money.  It is the people's money.  But

                 we should be more honest with them and give

                 them the money right away, not hope that in





                                                          2680



                 five years we have enough of a surplus that we

                 can afford to continue the tax cut.

                            I don't want to see us end up in a

                 situation, as we did in the past, where

                 suddenly the economy dropped off -- and

                 there's no reason to think that couldn't

                 happen in the future -- and we have to

                 withhold that tax cut and suspend it for a

                 year or two or three.  And I don't want to go

                 through that again.

                            But hopefully in the conference

                 committees that will come forward after the

                 other house passes theirs and we finally agree

                 upon avails -- even though that date that we

                 were supposed to do that by law has passed -

                 then maybe we'll come up with just a little

                 bit better package than this.

                            But I'll support this one for now

                 and vote aye.

                            ACTING PRESIDENT KUHL:    Senator

                 Stachowski will be recorded in the

                 affirmative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator Stafford.

                            SENATOR STAFFORD:    Aye.





                                                          2681



                            THE SECRETARY:    Senator Stavisky.

                            ACTING PRESIDENT KUHL:    Senator

                 Stavisky, to explain her vote.

                            SENATOR STAVISKY:    To explain my

                 vote.

                            I wish this were a budget where we

                 could pick and choose the parts that we like

                 and reject the parts that we don't.  There are

                 many good things in the budget, obviously.

                 But the reductions in the SUNY and CUNY

                 budget, the elimination of the supplemental

                 TAP, the elimination or the cuts in the

                 adjunct positions in the colleges I think are

                 not a good harbinger for the future.

                            The fact that it restores some of

                 the Bundy aid I think is good.  But you're

                 also forgetting some of the student programs

                 that are important to so many youngsters in

                 New York City.  And I'm referring specifically

                 to the STEP and the HEOP and the EOP and all

                 of the other acronyms representing programs

                 that are so important to the students in the

                 state of New York.

                            The expansion of the community

                 college base aid by only $25 I think is





                                                          2682



                 insufficient.  The restoration of the child

                 care is good; again, insufficient.  The need

                 for full-time faculty is extremely important.

                            And lastly, the question of

                 Flex-aid.  They've given it a nice euphemistic

                 name, but to me it's still the same old block

                 grant.  And the elimination of the universal

                 pre-K as part of that I think is a very, very

                 unfortunate omission.

                            The fact that we recommended

                 $1.1 billion for extraordinary aid is I think

                 something which should come to pass -- perhaps

                 not in this budget, but in the future.

                            And for all of these reasons, Mr.

                 President, I vote no.

                            ACTING PRESIDENT KUHL:    Senator

                 Stavisky will be recorded in the negative.

                            Continue to call the roll.

                            THE SECRETARY:    Senator Trunzo.

                            SENATOR TRUNZO:    Yes.

                            THE SECRETARY:    Senator Velella.

                            (No response.)

                            SENATOR VELELLA:    Senator Volker.

                            SENATOR VOLKER:    Yes.

                            THE SECRETARY:    Senator Wright,





                                                          2683



                 excused.

                            ACTING PRESIDENT KUHL:    The

                 Secretary will call the absentees.

                            THE SECRETARY:    Senator Gonzalez.

                            (No response.)

                            THE SECRETARY:    Senator Hannon.

                            SENATOR HANNON:    Yes.

                            THE SECRETARY:    Senator Hevesi.

                            (No response.)

                            THE SECRETARY:    Senator Maltese.

                            SENATOR MALTESE:    Aye.

                            THE SECRETARY:    Senator Nozzolio.

                            SENATOR NOZZOLIO:    Aye.

                            THE SECRETARY:    Senator Sampson.

                            (No response.)

                            THE SECRETARY:    Senator Santiago.

                            (No response.)

                            THE SECRETARY:    Senator Velella.

                            SENATOR VELELLA:    Yes.

                            ACTING PRESIDENT KUHL:    Announce

                 the results.

                            THE SECRETARY:    Ayes, 44.  Nays,

                 11.

                            ACTING PRESIDENT KUHL:    The

                 resolution is adopted.





                                                          2684



                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President, I

                 believe there are a couple of nominations

                 right now, if we could do them.

                            ACTING PRESIDENT KUHL:    We will

                 return to the order of reports of standing

                 committees.

                            There is a report coming from the

                 Finance Committee at the desk.  I'll ask the

                 Secretary to read.

                            THE SECRETARY:    Senator Stafford,

                 from the Committee on Finance, reports the

                 following nominations:

                            As director of the Municipal Bond

                 Bank Agency, F. Michael Stapleton, of

                 Cortland.

                            SENATOR SKELOS:    Move the

                 nomination.

                            ACTING PRESIDENT KUHL:    The

                 question is on the nomination.  All those in

                 favor signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT KUHL:    Opposed,

                 nay.

                            (No response.)





                                                          2685



                            ACTING PRESIDENT KUHL:    The

                 nominee is confirmed.

                            The Secretary will continue to

                 read.

                            THE SECRETARY:    As a member of

                 the Niagara Frontier Transportation Authority,

                 Henry M. Sloma, of Lewiston.

                            SENATOR SKELOS:    Move the

                 nomination.

                            ACTING PRESIDENT KUHL:    The

                 question is on the nomination.  All those in

                 favor signify by saying aye.

                            (Response of "Aye.")

                            ACTING PRESIDENT KUHL:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT KUHL:    The

                 nominee is confirmed.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 there were two resolutions adopted today, 908

                 and 911, sponsored by Senator Maltese.  He

                 would like to open them up for sponsorship.

                 If anybody wishes not to be on the

                 resolutions, they should indicate at the desk.





                                                          2686



                            ACTING PRESIDENT KUHL:    For the

                 benefit of the members, we'll put all members'

                 names on Resolution 911 and 908 unless they

                 notify the desk that they don't wish to be on

                 the resolutions.  Otherwise, all members will

                 be included on Senator Maltese's resolutions

                 which were adopted earlier today.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 if we could return now to Senator Volker's

                 bill, Calendar Number 106.

                            ACTING PRESIDENT KUHL:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 106, by Member of the Assembly Lentol,

                 Assembly Print Number 1437, an act to amend

                 the Civil Practice Law and Rules, in relation

                 to requiring.

                            ACTING PRESIDENT KUHL:    The

                 question is before the house.

                            Senator Schneiderman, why do you

                 rise?

                            SENATOR SCHNEIDERMAN:    If the

                 sponsor would yield for a few questions.

                            ACTING PRESIDENT KUHL:    Senator





                                                          2687



                 Volker, do you yield to a question from

                 Senator Schneiderman?

                            SENATOR VOLKER:    I was standing

                 before him, so -

                            ACTING PRESIDENT KUHL:    Before

                 that, Senator Skelos, why do you rise?

                            SENATOR SKELOS:    Yes, Mr.

                 President, if I could just interrupt, there

                 will be an immediate meeting of the Local

                 Governments Committee in the Majority

                 Conference Room.

                            ACTING PRESIDENT KUHL:    Immediate

                 meeting of the meeting of the Local

                 Governments Committee, immediate meeting of

                 the Local Governments Committee in Room 332,

                 Senate Majority Conference Room.

                            Senator Volker, do you yield to a

                 question from Senator Schneiderman?

                            SENATOR VOLKER:    Why, sure.  As I

                 was saying before I was so rudely interrupted

                 by the Majority Leader -- no, no, no, I was

                 kidding.

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, I have a phone call up here for you.

                            (Laughter.)





                                                          2688



                            SENATOR VOLKER:    Yes, I know.

                 I'm well aware.  I'm well aware.

                            ACTING PRESIDENT KUHL:    Senator

                 Schneiderman, the Senator yields.

                            SENATOR SCHNEIDERMAN:    Mr.

                 President, I'm happy to address my question

                 either to Senator Volker or to the incoming

                 chair of the Codes Committee.

                            (Laughter.)

                            SENATOR VOLKER:    Yes, I know.

                 I'm well aware.

                            SENATOR SCHNEIDERMAN:    The

                 question, through you, Mr. President, is I

                 understand, I think, the operation of the

                 proposed statute as to decedents, people who

                 pass away.  I'm concerned, though, about the

                 issue of a person under disability.  This

                 would provide a personal representative the

                 ability to waive privileges.  In some cases,

                 and I note under subsection 4, it requires any

                 party -- it enables any party in interest to

                 waive a privilege.

                            And if I'm reading correctly, the

                 definition of person under disability, these

                 people who could lose their rights to exercise





                                                          2689



                 their privilege, defined in Section 103 of the

                 Surrogate's Court Procedure Act, states as

                 following:  "Any person who is (a) an infant;

                 (b) an incompetent; (c) an incapacitated

                 person; (d) unknown or whose whereabouts are

                 unknown; or (e) confined as a prisoner who

                 fails to appear under circumstances which the

                 court finds are due to confinement in a penal

                 institution."

                            There are a lot of people there who

                 may very well, shortly after this procedure is

                 invoked, be able to exercise for themselves

                 the decision-making process about the

                 privilege.  Is there some reason why we don't

                 limit further the persons under disability for

                 the purposes of this section?

                            SENATOR VOLKER:    Yeah.  Because I

                 think the thing -- what you're trying to do

                 here is primarily to provide a way to mitigate

                 these proceedings.  And a person who

                 represents the people that you just talked

                 about is in effect supposed to represent the

                 best interests of those people; that is, the

                 very people who clearly are disabled or

                 incompetent or whatever.  And under the law,





                                                          2690



                 they're supposed to do that.

                            So what we're trying to do here is

                 provide the possibility of a waiver which

                 theoretically, technically, and under the law

                 should aid them.

                            In other words, this is not a -

                 should not be a proceeding where their

                 interests would not be looked after.  Because

                 under the present law, which will continue,

                 the person who is making these decisions has a

                 statutory charge to make sure that their best

                 interests are looked after.  So that any kind

                 of waiver that would be made by that person on

                 behalf of a disabled person, an incompetent,

                 should theoretically, certainly, and under law

                 should be in their best interests.

                            So whether you make the waiver or

                 you don't, the decision should be, in effect,

                 by a person who is trying to look at the best

                 interests of those -- of the people that he or

                 she is representing.

                            So someone could challenge that,

                 and I guess that's what the possibility of the

                 waiver is.  But then the judge of course would

                 intervene in the best interests of that





                                                          2691



                 incompetent or whatever person.

                            ACTING PRESIDENT KUHL:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Mr. President, what -

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you continue to yield?

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT KUHL:    The

                 Senator continues to yield.

                            SENATOR SCHNEIDERMAN:    What would

                 be the purpose of having such a statute for a

                 person who is a prisoner?  Under the

                 circumstance when that person is due to be

                 released from confinement soon, wouldn't it be

                 more advantageous to delay a determination on

                 the waiver until the person can speak up for

                 themselves?

                            SENATOR VOLKER:    I think that

                 that possibility -- and the personal

                 representative could make that argument.  It

                 would seem to me that depending on the type of

                 proceeding -- and remember, this is only in

                 Surrogate's Court, which probably is one

                 reason -- and Senator Dollinger and I had an





                                                          2692



                 exchange about why this was limited by the

                 Assembly.  It probably is, frankly, and we

                 zeroed in on these last -- this -- the third

                 and fourth one you're dealing with -- it's

                 probably why the Assembly was concerned.

                 Thinking, probably in the same terms you are,

                 as to what kind of proceeding it would be.

                            In other words, that argument would

                 be an argument in which, if the person who

                 represents that -- for instance, that inmate

                 might argue, Well, the inmate is going to be

                 out in another month, could we delay this

                 proceeding.  And the judge, of course, could

                 either accept it one way or another, I

                 suppose.  But this would give that

                 representative the ability to provide a

                 waiver, assuming it would be in the best

                 interests still of that inmate.

                            And I think it would rarely ever

                 happen in Surrogate's Court.  I mean, I can

                 only think of -- it could be a family relative

                 or something, but it does not happen very

                 often.  But I suppose that guardian or person

                 could actually say, The inmate is going to be

                 out in two weeks, let's delay the proceeding





                                                          2693



                 and let him appear himself.  I don't see why

                 you couldn't make that argument to the judge.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Mr. President, I -

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you continue to yield?

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT KUHL:    The

                 Senator continues to yield.

                            SENATOR SCHNEIDERMAN:    I guess I

                 almost feel as though I'm sort of taking a

                 position in favor of the rights of the

                 individual against a big, bureaucratic state

                 system with guardians making decisions for

                 them, which is not necessarily my posture

                 here.  I don't necessarily mind big

                 bureaucratic state systems in many cases.

                            But I don't really see why we

                 shouldn't have some sort of statutory circuit

                 breaker to allow someone to come back and deal

                 with the situation if, for whatever reason,

                 the guardian doesn't adequately represent

                 their interests or maybe intends to represent

                 their interests and just does something the

                 person disagrees with.





                                                          2694



                            Someone who gets out of prison and

                 finds out a month ago his rights were waived,

                 I think that it would probably be prudent to

                 give that person some rights.  And I'm

                 wondering if that's something that could

                 possibly be addressed.

                            SENATOR VOLKER:    Well, if you

                 assume that the law -- and I assume what the

                 law is, when you are the representative of a

                 person, you are by law mandated to represent

                 the best interests of that person.  And if for

                 some reason you don't represent the best

                 interests of that person, I think you are

                 liable.  And I think you could be both

                 financially and -- certainly financially

                 liable.

                            So I guess the argument would be -

                 and you and I know that there are occasions

                 when certainly lawyers are held financially

                 liable.  And in the case of a trustee, for

                 instance, if a trustee operates in a trust and

                 does something on behalf of a person who is

                 somebody that is to receive something and that

                 person says, That trustee didn't operate in my

                 best interests, you could actually challenge





                                                          2695



                 that decision.

                            And I think the problem, though, is

                 what the Bar Association is trying to do here,

                 what this is trying to do is develop a

                 process, a universal process that avoids the

                 kinds of delays and the kinds of different

                 rules that fit certain people and certain

                 situations.

                            I think what you're saying is

                 you're talking about a very -- a pretty

                 unusual situation which could happen.  But

                 keeping in mind that that representative is -

                 by law is supposed to represent the best

                 interests of that person, whether that person

                 is actually there or not.

                            SENATOR SCHNEIDERMAN:    Thank you.

                 Through you, Mr. President, one final

                 question.

                            ACTING PRESIDENT KUHL:    Senator

                 Volker, do you continue to yield?

                            SENATOR VOLKER:    Sure.

                            ACTING PRESIDENT KUHL:    The

                 Senator continues to yield.

                            SENATOR SCHNEIDERMAN:    How would

                 this statute operate in a situation where





                                                          2696



                 their legal conflict was actually between the

                 professional and the personal representative?

                            SENATOR VOLKER:    I think that -

                 that is, of course, one of the decisions that

                 would have to be made by the judge.  In fact,

                 that's the -- I think that's the crux and the

                 nuts of the real problem that the Bar

                 Association was really looking at.

                            In other words, the person who has

                 the privilege which is being asked to be

                 waived, for instance, by the personal

                 representative, maybe, is then going to have

                 to make their contention made to the judge.

                 And the judge would then decide what's in the

                 best interests of the person involved, and

                 also decide in certain cases whether the

                 person who is declaring that they should not

                 have to waive is in a position, is in an

                 equitable position to do that.

                            I would think that would be a

                 situation, for instance, where there's an

                 attorney, as an example, who maybe doesn't

                 want to divulge something, and the personal

                 representative says, I need that attorney,

                 it's important to my client's or my ward's





                                                          2697



                 best interests that that attorney divulge his

                 interest.  The attorney could then say, No, I

                 don't believe it is in his best interests, and

                 it's certainly not in my interest, and so

                 forth.

                            SENATOR SCHNEIDERMAN:    And under

                 those circumstances it would just go to the

                 court with those two -

                            SENATOR VOLKER:    Exactly.  And

                 the court then would decide whether -- if it

                 is in the best interests of everybody and

                 whether that waiver should be provided.

                            SENATOR SCHNEIDERMAN:    Okay.

                 Thank you, Mr. President.  Thank the sponsor

                 for his answers.

                            ACTING PRESIDENT KUHL:    Any other

                 member wishing to speak on the bill?

                            The Secretary will read the last

                 section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect in 60 days.

                            ACTING PRESIDENT KUHL:    Call the

                 roll.

                            (The Secretary called the roll.)

                            ACTING PRESIDENT KUHL:    Announce





                                                          2698



                 the results.

                            THE SECRETARY:    Ayes, 59.

                            ACTING PRESIDENT KUHL:    The bill

                 is passed.

                            Senator Hassell-Thompson, why do

                 you rise?

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Mr. Chairman -- Mr. President.  I rise to

                 ask unanimous consent to be recorded in the

                 affirmative on the canvass agreement on

                 Senator Oppenheimer's motion to amend Senate

                 Resolution 946.

                            ACTING PRESIDENT KUHL:    Senator,

                 if you would so like, the record will reflect

                 that in fact had you been in the chamber when

                 a canvass of the members was taken, that you

                 would have been in agreement with those who

                 were signifying such.

                            SENATOR HASSELL-THOMPSON:    Yes.

                            ACTING PRESIDENT KUHL:    The

                 record will so reflect.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you.

                            ACTING PRESIDENT KUHL:    Senator

                 Montgomery, why do you rise?





                                                          2699



                            SENATOR MONTGOMERY:    Yes, Mr.

                 President.  I would like to also have the

                 record reflect that had I been in the chamber,

                 I would have voted yes on the amendments that

                 were presented by Senator Oppenheimer and

                 Senator Gentile.  Thank you.

                            ACTING PRESIDENT KUHL:    Senator

                 Oppenheimer and Senator Gentile, those two

                 proposed amendments?

                            SENATOR MONTGOMERY:    Yes, that's

                 correct.

                            ACTING PRESIDENT KUHL:    Okay.

                 The record will reflect that had you been in

                 the chamber when the members were canvassed,

                 that in fact you would have been in agreement

                 with those amendments.

                            SENATOR MONTGOMERY:    Yes, thank

                 you.

                            ACTING PRESIDENT KUHL:    Senator

                 Hevesi, why do you rise?

                            SENATOR HEVESI:    Thank you, Mr.

                 President.  I rise to request unanimous

                 consent that the record reflect that had I

                 been in the chamber, I would have voted in the

                 affirmative on the canvass of agreement on





                                                          2700



                 Senator Oppenheimer's motion, Senator

                 Gentile's motion, Senator Connor's motion,

                 Senator Stachowski's motion, and Senator

                 Dollinger's motion to amend Senate Resolution

                 946.

                            And in addition, Mr. President, I

                 would like the record to reflect that had I

                 been in the chamber two minutes before I

                 actually arrived in the chamber, I would have

                 voted in the affirmative on Senate Budget

                 Resolution 946.

                            ACTING PRESIDENT KUHL:    The

                 record will reflect, Senator Hevesi, that had

                 you been in the chamber when the slow roll

                 call on the budget resolution -- I believe

                 it's 946 -- was taken, that you would have

                 voted in the affirmative.

                            With regard to the amendments which

                 were proposed, the record will reflect that

                 had you been in the chamber when the members

                 were canvassed, that in fact you would have

                 been in agreement with those amendments.

                            Senator Schneiderman, why do you

                 rise?

                            SENATOR SCHNEIDERMAN:    Yes, thank





                                                          2701



                 you, Mr. President.  I would also request

                 unanimous consent to have it noted in the

                 record that had I been present, I would have

                 voted in favor of Senator Oppenheimer's

                 amendment to Resolution 946.

                            ACTING PRESIDENT KUHL:    Senator

                 Schneiderman, the record will reflect that had

                 you been in the chamber when members were

                 canvassed for an agreement on the amendment

                 that was proposed by Senator Oppenheimer, that

                 you would have been in agreement.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Lachman, why do you rise?

                            SENATOR LACHMAN:    I rise, Mr.

                 President, to follow my colleagues.  Had I

                 been in the chamber when the Oppenheimer

                 amendment had been voted on, I would have,

                 under the consensus of agreement, been in

                 favor of that amendment, as I spoke out in

                 favor of the amendment when I was in the

                 chamber five minutes before.

                            ACTING PRESIDENT KUHL:    Senator

                 Lachman, the record will reflect that had you





                                                          2702



                 been in the chamber when Senator Oppenheimer's

                 amendment was canvassed, you would have been

                 in agreement.

                            Senator Mendez, why do you rise?

                            SENATOR MENDEZ:    Yes, Mr.

                 President.  I also wish the record to show

                 that if I would have been in the chamber, I

                 would have voted for the Gentile as well as

                 the Oppenheimer amendments.

                            With this statement, the canvass

                 will be completed.

                            ACTING PRESIDENT KUHL:    Senator

                 Mendez, the record will reflect that had you

                 been in the chamber when the members were

                 canvassed on Amendments 1 and 2, presented by

                 Senators Oppenheimer and Gentile, that you

                 would have been in agreement.

                            Senator Duane, why do you rise?

                            SENATOR DUANE:    Thank you, Mr.

                 President.  I was hoping to get unanimous

                 consent to -- well, let me start with that -

                 unanimous consent to vote no on Senate Number

                 1083.  Calendar Number 106, excuse me.

                            ACTING PRESIDENT KUHL:    Without

                 objection, hearing no objection, Senator





                                                          2703



                 Duane, you will be recorded in the negative on

                 Calendar Number 106.

                            SENATOR DUANE:    Thank you.  And,

                 Mr. President, in addition, had I been in the

                 chamber, I would somewhere voted yes on

                 Senator Oppenheimer's amendment to the budget

                 resolution.

                            But in my own defense, I must say

                 it was my first canvass, and I wasn't

                 absolutely clear how it would work.  So now

                 I'm just absolutely sure how it works.  But I

                 am pleased you're going to allow me the

                 indulgence to say that, since it was my first

                 canvass.

                            ACTING PRESIDENT KUHL:    Well, it

                 was not a vote, Senator.  But on the canvass,

                 the record will reflect that had you been in

                 the chamber when it was taken, that you would

                 have been in agreement on that particular

                 amendment.

                            SENATOR DUANE:    And I can't say

                 that I enjoyed my first canvass, but I do

                 think I've gotten the hang of it.  Thank you,

                 Mr. President.

                            ACTING PRESIDENT KUHL:    Senator





                                                          2704



                 Fuschillo.

                            SENATOR FUSCHILLO:    Thank you,

                 Mr. President.  I'm going to relinquish my

                 chair to the Majority Leader.

                            ACTING PRESIDENT KUHL:    Senator

                 Bruno.

                            SENATOR BRUNO:    Mr. President,

                 can we at this time call up Calendar Number

                 244.

                            ACTING PRESIDENT KUHL:    The

                 Secretary will read Calendar Number 244.

                            THE SECRETARY:    Calendar Number

                 244, by Senator Bruno, Senate Print Number 6,

                 Concurrent Resolution of the Senate and

                 Assembly proposing amendments to Article 7 of

                 the Constitution.

                            SENATOR DOLLINGER:    Explanation,

                 Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Bruno, an explanation on Calendar Number 244

                 has been requested by Senator Dollinger.

                            SENATOR BRUNO:    Thank you, Mr.

                 President.

                            This proposal before this house we

                 have seen in this chamber before.  It is a





                                                          2705



                 budget reform proposal.  And if this were to

                 become law, we would have an on-time budget

                 next year for the first time in 17 years in

                 this state.

                            We have continually late budgets.

                 And when we have late budgets, all of us know

                 it affects localities, it affects school

                 districts, it affects business, it affects

                 people in their places of employment.  It is

                 not a good thing.  It is disruptive,

                 dysfunctional, and expensive.

                            So this proposal that we have

                 passed three years in a row doesn't pass the

                 Assembly, for whatever reasons.  And we don't

                 even see a responsible bill that deals with

                 budget reform that we could then take to

                 conference committees.

                            So since we have in our wisdom in

                 this house passed this several times, with

                 support from both sides of the aisle, I'm not

                 going into great detail.  But what we

                 basically do is start the budget process

                 earlier, in October, with hearings, with

                 public input.  And we go through the process

                 of revenue projections in November, instead of





                                                          2706



                 late in February.

                            The Governor sends a budget by the

                 middle of January, January 15th.  We try and

                 reconcile our differences on avails.  And if

                 we can't, the Comptroller will be the

                 arbitrator on March 1st.

                            And that would be the number we

                 would then use to go into the public

                 discussion, through conference committees, of

                 the budget process, after each house, using

                 the avails number that has been agreed on, we

                 will pass our resolutions or budgets by

                 March 16th.

                            It's March 16th?  We start -- is it

                 April 16th?  We are moving one month back.

                 And I'm corrected in that it is not

                 March 16th.  If we can't reconcile, we will

                 start on April 16th.

                            And if we don't do a budget

                 together in both houses that goes to the

                 Governor by May 1st, the budget that we had

                 voted on in the previous year becomes the

                 budget of the state until we put another

                 budget in place.

                            Now, that just makes sense.  It's





                                                          2707



                 common sense.  We spent a lot of time

                 discussing last year's budget.  That's the

                 budget that's in place today.  So if we can't

                 agree by May 1st, after going through an

                 enlightened early process, the people of this

                 state would have a budget.

                            Now, we would still have a

                 compulsion to get a budget done for the

                 present year, because whatever we're

                 advocating for in both houses, and from the

                 Governor, would not be in the budget unless we

                 do a new budget.

                            So we think it's common sense, it's

                 practical, and it's timely.  Because, Mr.

                 President, I believe this year we may break

                 all records in late budgets.  And that is not

                 going to hold the people of this state in good

                 stead.  And we're saying it early.  We are

                 saying it now in the third week in March.  And

                 we're unfortunately, I'm afraid, going to be

                 saying it in April and in May and in June and

                 in July.

                            And it is of no consequence for me

                 to remind members that we don't get paid.

                 Nobody gets paid.  Now, I know that's of no





                                                          2708



                 consequence because nobody in the room needs

                 the money, and that's not a factor.  That's

                 supposed to be funny, just to lighten things

                 up.  Okay?

                            (Laughter.)

                            SENATOR BRUNO:    Oh, it hurts to

                 laugh?  Okay, and I understand that.

                            But that is a matter of fact.  We

                 in our wisdom have put into law that until we

                 get a budget, circumstances are as described.

                 So common sense would dictate, I would think,

                 that we do a reform package, send it over to

                 the other house, if they would pass it -- or

                 if they have another version, let them pass it

                 and we'll go to conference committees.

                 Hopefully, we'll reconcile our differences.

                            The Governor had announced, when we

                 proposed this two years ago, his support for

                 this budget reform package.  We need the

                 support of the Assembly, and we need the

                 support of the people in this chamber.

                            Thank you, Mr. President.

                            ACTING PRESIDENT KUHL:    Senator

                 Dollinger, why do you rise?

                            SENATOR DOLLINGER:    Just on the





                                                          2709



                 bill.  I know that -- I believe we've done

                 this before.  Senator Bruno has explained this

                 bill.

                            ACTING PRESIDENT KUHL:    Senator

                 Dollinger, on the resolution.

                            SENATOR DOLLINGER:    I'm concerned

                 about a number of aspects of this bill that I

                 think may be unintentionally created by

                 Senator Bruno's pitch for reform.  And what

                 we're really doing is giving the Governor of

                 this state an enormous power in the

                 legislative process of creating budgets.

                            What drives us to this point is

                 really nothing that is outside our control.

                 We have a perfectly acceptable system in place

                 constitutionally to handle the budget.  All

                 the Legislature has to do is the Senate passes

                 a version, as we've sent a resolution over,

                 convene a conference committee, get the budget

                 done, and give it to the Governor by

                 April 1st.  We can do that.  I don't think

                 there's any impediment to do that.

                            The problem has been -- and I think

                 Senator Bruno, who's been here a lot longer

                 than I have, understands what politically has





                                                          2710



                 happened.  What's politically happened is we

                 have a budget that gives line-item authority

                 to our Governor, so he can go through and line

                 it out.  He can take out things that we want

                 to see in that budget.  He can do it by

                 himself.  And as a consequence, he can send

                 back to the Legislature -- we have the power

                 to override the use of the line-item veto.

                            There's only one problem, Mr.

                 President, with the use of an override of a

                 line-item veto.  And that is that would

                 require everyone in the house to participate.

                 In essence, the majority power, the ability of

                 the Majority in either house to drive the

                 budget all by itself, would be imperiled

                 because, in order to keep legislative adds in

                 the budget, you'd have to bring the budget

                 back to this house and you would have to reach

                 across the aisle to get the 41 votes necessary

                 to override the Governor's veto.

                            In essence, for the Legislature to

                 stand up and say we think these are the

                 important principles that ought to govern the

                 operation of this state, constitutionally the

                 Majority in this house and the Majority in the





                                                          2711



                 other house would have to jump over the

                 partisan divide and come together to agree on

                 what the Legislature thinks should be in that

                 budget.

                            I would suggest to Senator Bruno,

                 as I would suggest to Speaker Silver, if you

                 look at the history of budgets that have been

                 passed, they have been passed with veto-proof

                 majorities.  And there is a veto-proof

                 majority in this house for a vision of this

                 state that will put perhaps more money to work

                 in the education that the Governor would want.

                 It would put more money in healthcare than the

                 Governor wants.

                            But we have a constitutionally

                 acceptable system that would work like a charm

                 if one thing happened.  And that is that if

                 the majorities in both houses were willing to

                 bring the minorities in as active participants

                 in the budget-setting process.

                            That isn't the way it works.  That

                 isn't the way it's worked for all the time

                 I've been here.  My guess is it hasn't worked

                 that way for an awful long time.  My guess is

                 the last time it worked was when both houses





                                                          2712



                 were dominated by Republicans in the '50s and

                 '60s and there were Democratic Governors, and

                 then there may actually have been something

                 called an override of a veto.

                            With all due respect, Mr.

                 President, this bill is a constitutional

                 solution to a political problem.  The

                 political problem is very simple.  We simply

                 pass a budget, we get both houses together, we

                 deliver the budget on March 30th to the

                 Governor of this state.  We tell him, Veto

                 whatever you want, take whatever you want out

                 of it, any of the adds that Senator Bruno has

                 put in on behalf of the Majority in this

                 house, any of the adds that have been put into

                 his budget by the Assembly, put it all in.

                 Tell the Governor of this state you have the

                 constitutional right to line-item any one of

                 those items out.

                            And then, if the Legislature in

                 this state is willing to put together

                 two-thirds majorities in both houses, we

                 override every one of those vetoes.  And we

                 tell the Governor of this state, who already

                 has too much power, this bill, this concurrent





                                                          2713



                 resolution will give him more power.

                            I suggest that if you believe that

                 the Legislature is a coequal branch of

                 government, let's exercise our coequal power

                 by joining together to override any veto that

                 the Governor dares put in effect.  Let's get

                 the budget done by March 30th.  I think that,

                 Senator Bruno, you and Assemblyman Silver

                 could sit in the same room and put together a

                 budget.  We don't need the Governor for

                 deliberate purposes.  Tell him that he can use

                 his veto power.

                            And I guarantee one thing, Senator

                 Bruno.  When you bring it back to this house

                 and you look over at this side of the aisle

                 and say, I need more money for education,

                 because the Governor doesn't want to give it,

                 you'll get it.  You will look over on this

                 side of the aisle and say, We need more money

                 for healthcare than what the Governor wants,

                 you'll get it.  When you say you want more

                 money for the development of technology and

                 jobs and you look to this side of the aisle,

                 you'll get it.

                            We have the political solution





                                                          2714



                 right here.  We don't need this.  Let the

                 constitutional process run its course.  Bring

                 us into the process.  Let the Legislature as a

                 body stand up and say to the Governor, We

                 don't need any concurrent resolutions, we've

                 got the power in ourselves.  We can tell this

                 Governor, we can tell a Democratic Governor,

                 we can tell an Independent Governor that if

                 two-thirds of us agree, guess what -- we'll

                 decide the spending priorities of this state,

                 and we don't need any reform to change it.

                            Let's do the political reform

                 thing, join hands so that the Legislature

                 stands up as a coequal branch of government

                 for the first time I've been in this state,

                 and let's act like we're responsible

                 legislators controlling the process and

                 standing up to the already-too-powerful

                 Governor.

                            This concurrent resolution gives

                 him more power than he's already got.  He's

                 got way too much.  It's not against George

                 Pataki, it's the institution.  Let's stand up

                 for the institution of the Legislature, use

                 our two-thirds power to control the budgeting





                                                          2715



                 process.

                            That's the way to do it, Mr.

                 President.  I'll be voting in the negative.

                            ACTING PRESIDENT KUHL:    Senator

                 Bruno.

                            SENATOR BRUNO:    Mr. President,

                 since this is so important an issue, I'll just

                 take a couple more minutes to clarify a point.

                            Senator Dollinger makes an

                 excellent point.  It is really

                 constitutionally the Legislature's

                 responsibility to negotiate a budget that the

                 Governor proposes to us in January.  As he has

                 done.  The Governor has discharged his

                 responsibilities.  And it is now our

                 responsibility to negotiate a budget between

                 the two houses and send it back to the

                 Governor.

                            And you are absolutely right.  If

                 the Governor were to veto, it is within the

                 power of the Legislature to override a veto.

                 And we have done that before with previous

                 governors and with this Governor on issues.

                            One problem.  Totally partisan.

                 Your colleague, the Speaker in the Assembly,





                                                          2716



                 refuses to engage in budget negotiations

                 unless the Governor gives up his

                 constitutional right of veto.  The Speaker

                 will not get engaged unless the Governor

                 guarantees a veto-proof budget.  The Governor

                 is not prepared to do that.  And

                 constitutionally, this house can't send a

                 budget to the Governor.  We need the Assembly

                 as a partner.

                            So, Mr. President, we are here as

                 one-half of a partnership, prepared to

                 negotiate, in public, avails and the budget.

                 The Speaker refuses, on behalf of the

                 Assembly, to do that.

                            So, Senator Dollinger, I will ask

                 you a rhetorical question.  In deference to

                 time of my colleagues, you don't have to

                 answer.  I don't know how you get into a

                 negotiation when the Speaker says he won't

                 negotiate unless the budget is veto-proof.

                 And the Governor says:  I am not guaranteeing

                 anything today or tomorrow or next month or

                 July or August.

                            So I'm going to suggest, unless we

                 face reality and stop posturing, that people





                                                          2717



                 better settle into these comfortable chairs.

                 Because we are going to be here for a long,

                 long time trying to get the people's work

                 done.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Farley.

                            SENATOR FARLEY:    Thank you, Mr.

                 President.

                            There's been nothing more

                 embarrassing or shameful to me as a Senator

                 over the years that I have served here than

                 these late budgets year after year after year.

                 And actually, you know, it's kind of strange,

                 this house runs on time in recent years.

                 Thing start on time in recent years.  We have

                 passed, if you will, budget resolutions on

                 time.  Actually, in reality, the budget that

                 the Senate has come up with has in essence

                 been the final budget that was adopted months

                 and months later.

                            There's a lot of things in this

                 budget reform resolution which are needed.

                 For instance, the window is too short.  We're

                 talking about billions of dollars.  It was





                                                          2718



                 just only a few years ago, literally a few

                 years ago that we reached a billion-dollar

                 budget.  I believe it was under Governor

                 Rockefeller.  So, you know, we do need a

                 little bit more time.  This does allow for

                 that.

                            You know, how can you negotiate a

                 budget when you haven't even agreed on how

                 much money we've got to spend?  You know, it's

                 terrible, we're looking at one of the longest

                 delays ever in even agreeing on how much we've

                 got to spend.  This budget reform package is

                 needed.  Its time has come.  It's one that

                 both houses should adopt.

                            It is ridiculous.  I know that the

                 late budget is very significant in this area,

                 in certain areas upstate, and it's not very

                 significant to a lot of our colleagues.  But

                 it is a total, complete embarrassment to this

                 house and to the entire Legislature.  You

                 can't blame it on the Governor.  It's got to

                 be -- the blame has to be put on the

                 Legislature.  And from my perspective, it is

                 not the Senate that is holding up these

                 budgets.





                                                          2719



                            We've got to get on with this.

                 This is a resolution, it's a constitutional

                 amendment whose time has come.  It's not going

                 to resolve it tomorrow or next year, but -- we

                 have to pass it in two different Legislatures.

                 But its time has come.  We need a longer

                 window.  We need somebody to really put

                 finality to these negotiations.

                            And I think this resolution can do

                 it.

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky.

                            SENATOR STAVISKY:    Mr. President,

                 I rise because I am somewhat of an expert on

                 vetoes.  Some of you may remember

                 approximately 25 years ago when the first

                 override of a Governor's veto occurred.  It

                 was the first one in 104 years, if my memory

                 is correct.

                            Unfortunately, Senator Goodman is

                 not in the chamber, and his memory I'm sure is

                 far better than mine.  But he was one of the

                 leaders in the Senate, as was Senator Marchi,

                 if my memory is correct.  My husband led it in

                 the Assembly.  And what was unique about that





                                                          2720



                 veto was the fact that it was a bipartisan

                 effort.

                            And it seems to me that that's

                 what's lacking right here.  That was a time

                 when people were able to converse with

                 civility.  People were able to work together

                 on these bipartisan issues.  And I'm afraid

                 that that is the missing ingredient right now.

                            I would agree with Senator

                 Dollinger, it would make the Legislature an

                 equal partner in government with the Governor.

                 It would make the people, it seems to me, have

                 more confidence in their elected officials and

                 in their government.  And I rise, Mr.

                 President, to agree with what Senator

                 Dollinger said.  That, to me, is the solution,

                 and not this legislation.

                            ACTING PRESIDENT MEIER:    Senator

                 Balboni.

                            SENATOR BALBONI:    Mr. President,

                 I rise to speak on this issue because I have

                 an opportunity to have a perspective that I'm

                 surprised that more people do not adopt.  The

                 only person in this Legislature who has any

                 credibility on the issue of being on time and





                                                          2721



                 on the issue of orderliness and of performing

                 the duties of government more like a business

                 is Joe Bruno.

                            I can recall sitting in this

                 Legislature in 1994 when everybody was

                 lamenting back and forth as to whether or not

                 we could do any steps that would change the

                 way we do government.  The advent of Governor

                 Pataki has changed things dramatically, but so

                 has the arrival of Joe Bruno.

                            But more importantly than the

                 efforts here to try and have a budget system

                 in place where we can have a on-time budget or

                 a functioning government is the stabilization

                 reserve fund that is contained within the same

                 legislation.

                            Now, people don't talk about that,

                 but I can recall the debates in the early '90s

                 that said there's no way we can put aside

                 monies because there's too much money that has

                 to be spent.  Similar to the debate we had

                 today.  Spend it all now, don't worry about

                 the future.  Well, that whole culture has

                 changed, mainly because of the leadership of

                 Joe Bruno.





                                                          2722



                            This is a bill that some would say

                 causes us to abdicate our responsibilities to

                 adopt an on-time budget.  My response is that

                 there have been many things that have tried to

                 get us off the mark, including taking away our

                 pay.  Nothing has worked.

                            So we're not abdicating the

                 responsibilities.  What we are really doing

                 here is recognizing the political realities,

                 where it is oftentimes much simpler and much

                 more politically expedient to fold your arms

                 and stare at somebody across a negotiating

                 table and not get the job done.

                            We can fix many things, and we have

                 fixed many things in this state in terms of

                 our credit rating, in terms of our reserve

                 funds, in terms of the budget surplus as

                 opposed to budget deficits.  But the one thing

                 we cannot change is our credibility when it

                 comes time to adopt an on-time budget.

                            Mr. President, this measure is

                 something that is overdue, because we have not

                 been able to get past the partisan politics.

                 I strongly urge its adoption.

                            ACTING PRESIDENT MEIER:    Senator





                                                          2723



                 Hevesi, you'll have the floor next, but the

                 stenographer needs a moment to adjust her

                 equipment.  And then the floor is yours.

                            Senator Hevesi.

                            SENATOR HEVESI:    Thank you, Mr.

                 President.  And I want to say thank you to the

                 stenographer, whose efforts don't go as

                 appreciated as they should day in and day out.

                            Mr. President, I rise in opposition

                 to the resolution that's before us.

                 Notwithstanding the fact that the purpose and

                 intention here is good, my disagreement with

                 what's in this resolution is that I don't

                 think it's going to do what it's designed to

                 do.  It's going to have an impact, but it's

                 going to have a different impact than we think

                 it's going to have.

                            And let me begin with the statement

                 of what this will do is not lead to the

                 adoption of new budgets that reflect the

                 changing political climate, the changing

                 needs -- social, criminal justice, and

                 otherwise -- in the state of New York.  What

                 this is going to do is it's going to reflect

                 the process which will have built into it





                                                          2724



                 disincentives to adoption by whomever is

                 dissatisfied with the new proposal.

                            And let me expand on that so

                 everyone can understand exactly what I'm

                 talking about.

                            The analogy here is the legislation

                 that was foolishly passed a few years ago

                 which tied legislators' pay to adoption of the

                 budget.  Which everybody assumed would provide

                 an incentive for a more timely adoption of the

                 budget.  In fact, it had the opposite effect,

                 some speculate because individuals who work in

                 this Legislature and over in the Assembly

                 didn't want to be seen as having sold out

                 their constituents or the individuals they

                 were fighting for to adopt an earlier budget,

                 because they would get attacked that they were

                 doing it because they didn't have money coming

                 into their pocketbooks.  So I believe that

                 that bill that we passed had a negative

                 impact.

                            What this legislation will do, what

                 it will do, it says the following.  If the

                 Governor, for example, proposes a budget where

                 there are funding reductions in certain policy





                                                          2725



                 areas, if the Assembly or the Senate doesn't

                 like those funding reductions and they believe

                 that the Governor, for example, is going to be

                 absolutely firm and never cave on it, whoever

                 doesn't want the reductions in those areas,

                 there's their incentive to do nothing.  Not to

                 negotiate.

                            If the Governor increased spending

                 in his Executive requests in a certain area,

                 and either this house or the other house

                 didn't want to act on it, didn't want those

                 increases, there's their incentive to do

                 nothing.

                            So there's a built-in incentive

                 here for whomever is the most dissatisfied

                 with the Executive budget proposal not to

                 negotiate.

                            So what this is going to wind up

                 doing is creating for us a default budget,

                 which is last year's budget, which very likely

                 will be the budget that is championed by

                 whomever is most dissatisfied with what new

                 changes are being proposed.

                            And at a time when we have such

                 pressing needs -- and this year everybody will





                                                          2726



                 agree, I think, that education is our most

                 fundamental and pressing need -- whomever is

                 proposing changes for additional funding in

                 high-needs areas to reduce the student-teacher

                 ratio, to fund universal pre-K, whomever

                 doesn't want new money coming into a certain

                 area, is dissatisfied with the way the

                 negotiations are going, whoever is most

                 pleased or least displeased with the new ideas

                 does nothing.  And they don't pay a political

                 price for doing that, because they're more

                 than happy to have whatever's in place right

                 now remain in place.

                            This is not going to work.  I agree

                 with Senator Bruno, with his legislation that

                 I hope we adopt today, Calendar 167, which

                 opens up the window and calls for an earlier

                 Executive request and lengthens the amount of

                 time before we hit the beginning of the fiscal

                 year and has all kind of changes intended to

                 facilitate a more timely adoption of the

                 budget.  I support all of that.  Those are

                 good ideas.

                            But this is, like the legislation

                 that was passed a couple of years ago, going





                                                          2727



                 to have a negative impact.  Yeah, if you want

                 law and order in your process, an ironclad

                 process where we never have a late budget,

                 this is the constitutional amendment that will

                 achieve that.  But a late budget is better

                 than a budget that doesn't reflect the growing

                 changes in our society that annual budgets are

                 designed to reflect.

                            That's what we're doing here.

                 Every year we meet, we discuss priorities, we

                 debate new needs and proposals, policy

                 changes.  And we're supposed to come together

                 in agreement.  Okay?  That's how this process

                 is supposed to work.  There's a reason we have

                 that process.  That's democracy.  It's

                 representative government.

                            This flies in the face of it,

                 because it creates an obstacle instead of

                 removing barriers to progress.  So we will

                 have budgets in place.  That's what this will

                 do, but they won't be budgets that reflect the

                 changing needs of the citizens of the State of

                 New York.

                            And I know that we have all kinds

                 of finger-pointing and blame as to who's





                                                          2728



                 responsible for our embarrassing budget

                 process here in New York.  And I heard Senator

                 Bruno's comments before in reference to the

                 Speaker of the Assembly refusing to negotiate

                 unless he has an agreement.

                            And I remember I believe what

                 Senator Bruno is talking about, and my

                 recollection is that there was an agreement

                 that year and that after that agreement was

                 reached, the Governor went in and made a

                 series of vetoes that violated the agreement

                 that the Speaker of the Assembly believed were

                 in place.  And as a result, he adopted the

                 position that the negotiations between all the

                 parties would have to take place and be

                 ironclad before both houses of the Legislature

                 adopted their budget.  To avoid a repeat of

                 the situation where he had an agreement and he

                 believed that the agreement was broken.

                            So this is a difficult situation

                 where the process -- you know, we can detail

                 how this process should play out to some

                 extent.  But at some point there has to be a

                 coming together.  There really has to be a

                 better understanding of the need to adopt an





                                                          2729



                 end product that reflects the greater

                 constituency.  And you know what that means?

                 That means not having three people negotiate a

                 budget.  That means having 61 members of this

                 house and 150 members of the other house

                 negotiate a budget.  It's real conference

                 committee processes.  That's what it is.

                            You want a more timely adoption of

                 a budget?  Start the process earlier and

                 really get everybody involved.  Not everyone

                 is involved.  In fact, most people in this

                 Legislature are not involved at all in this

                 process.  Not just members of the Minority in

                 both houses, but a lot of the members of the

                 Majority.  That's the problem.  That's the

                 fundamental problem.  We're not going to cure

                 it with this legislation or Calendar 167.

                            I think I have the solution to

                 that.  It's a constitutional change that can

                 only be brought about through a constitutional

                 convention where we have fundamental reform to

                 break the partisan barriers as they exist in

                 the Legislature.  And I've spoken on the floor

                 of this house before, what needs to be done in

                 this house -- and we can even do it in the





                                                          2730



                 Assembly -- but in this house is to have the

                 New York State Senate reflect the procedural

                 prerogative of the United States Senate, where

                 40 percent of that body can filibuster and

                 effectively block any legislation from

                 passing.

                            And what that does -- and I'll

                 remind everybody that this house is split more

                 than 60/40, so it would apply here -- it

                 requires bipartisanship.  It demands

                 bipartisanship.  And the House of

                 Representatives doesn't have it, and that's

                 why that is a much less bipartisan body.

                 That's why everybody looks to the Senate.

                 That's why there's compromise.  That's why

                 even Minority members of the United States

                 Senate have a play in the process.  They

                 participate.  And as a result, the views, the

                 policy ideals, all of the needs of everybody

                 in the United States Senate are reflected in

                 the end product.

                            It doesn't happen here.  And one of

                 the negative results of it not happening here

                 is that you have three people, by and large,

                 negotiating a budget.  And if one of them





                                                          2731



                 says, I'm drawing a line in the sand on this

                 issue, that's it.  Nobody can break them from

                 that.

                            This is the most partisan

                 legislature, I believe, in the United States.

                 It is a tremendous problem.  That's what the

                 problem is with the budget process.  You want

                 to see if we can adopt the budget in a timely

                 fashion?  Open this process up.  Let the

                 public view it.  Bring cameras into this

                 Legislature.  Have a real conference committee

                 process.  Because the public wouldn't tolerate

                 the nonsense where nobody discusses the budget

                 at all for months and months.

                            And I'm not ascribing blame to any

                 one person or any one participant in this

                 process.  I'm ascribing it to everybody.  And

                 I'm ascribing it to the process.  This process

                 is rotten to the core.

                            And this bill before us, this

                 resolution, is not going to have a positive

                 impact.  It will further delay adoption of a

                 budget that does something -- not just last

                 year's budget, but that meets new challenges.

                 That's what this will do, or that's what this





                                                          2732



                 will not do.

                            So we need reform.  I'm spoken

                 about this God knows how many times on the

                 floor of this house.  And yes, Senator Bruno

                 points out a few moments ago, we're going to

                 have a very late budget.  Why?  I can expound

                 on the reasons why.  One of the primary

                 reasons is this is not an election year.  You

                 want to bring politics into it, it's not an

                 election year.

                            So I guess it's okay if it's not an

                 election year that we can continue with this

                 frivolousness where nobody has to really sit

                 down and negotiate, where everybody can be as

                 obstinate and as stubborn as they possibly

                 want.

                            And the public doesn't really seem

                 to care, interestingly.  They don't.

                 Editorial boards will slam the Legislature,

                 they'll call us do-nothings.  They supported

                 the bill that denies everybody, even if they

                 don't have a say in this process, denies them

                 a real role, that denies them their paychecks.

                 Everybody supports that.  And the public says,

                 Yeah, the Legislature is not doing its job.





                                                          2733



                            But they don't really care about

                 this when it comes election time.  They really

                 don't.  I don't think they're focused on it.

                 Because we as an institution have denied them

                 the ability to focus on it.  We're secretive

                 in that in this day and age, in New York City,

                 the New York City Council has, on Channel 74,

                 constant viewing of its proceedings.  There is

                 C-Span in Congress.

                            Senator Dollinger brought the novel

                 idea of having televised debates in this

                 house, and it hasn't gone anywhere.  It can

                 easily go somewhere if there's no impediment

                 to do that.  That's where we need to head.

                            And if you do that, you open up

                 this process, then you're going to have a

                 situation whereby we can't, all of us, get

                 away with what we've all been getting away

                 with.  And we could talk about this till we're

                 blue in the face, but this is not going to

                 change.

                            And if this is another ridiculously

                 late year and it negatively impacts our credit

                 rating and makes us a laughingstock because we

                 can't get our act together, then I say this to





                                                          2734



                 the people of New York.  Next time the

                 opportunity prevents itself, let's have a

                 constitutional convention and let's really

                 open this process.  Democratize it.

                 Conference committees.  A more bipartisan

                 Legislature.  Better budget process.

                            This is wrong.  This is rotten.

                 And the resolution before us will do the exact

                 opposite of what it's designed to do.  It is

                 not designed to have budgets that are good

                 budgets.  What it's designed to do is make

                 sure that there is a budget in place.  That is

                 not the goal or should not be the goal of this

                 Legislature.

                            And for that reason, Mr. President,

                 I vote no on this resolution and urge my

                 colleagues to vote no on it and join me, join

                 Senator Dollinger, join everyone else in

                 reforming this process at its core, not

                 tinkering around the edges with something that

                 we know -- because logically and fundamentally

                 it doesn't make sense -- that is something

                 that is not going to work.

                            I vote no.

                            ACTING PRESIDENT MEIER:    Senator





                                                          2735



                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.  On the resolution.

                            I agree with what Senator Hevesi

                 just said.  And I really do not see how it can

                 be argued that this legislation will create a

                 positive incentive for us to do what we're

                 supposed to do, which is to promptly and

                 efficiently pass a current budget.

                            The problem with this resolution is

                 that I believe it creates a strong

                 disincentive for us to move ahead to do that.

                 We don't want to be operating with last year's

                 budget.  We want a budget that reflects

                 revenues this year, our most up-to-date

                 estimates.  There have been tremendous

                 fluctuations.  And the last few years,

                 fortunately, there have been fluctuations

                 above what we projected, but that's certainly

                 not always been true and it's certainly not

                 always going to be the case.

                            We also need to have a current

                 budget to address this year's needs.  We need

                 to be able to deal with what the people of our

                 districts need this year.  The notion that it





                                                          2736



                 is okay to go along with last year's budget I

                 really respectfully submit is an abdication of

                 our responsibility to pass a current budget.

                            I think that the added problem is

                 that -- and I really would love for someone to

                 explain to me why this is not true -

                 whichever party is unhappy with proposed

                 changes to update the budget, whichever party

                 is in favor of the status quo of the last

                 year's budget will have no incentive to

                 negotiate.

                            What we have here is a failure of

                 government to move forward, to negotiate and

                 pass a current budget.  This bill moves us in

                 the opposite direction.  It would create an

                 incentive for one of the three parties not to

                 act at all.

                            At least under the current

                 situation, we have to keep going back, passing

                 bills, reporting to our constituents:  We

                 don't have a budget, we don't have a budget,

                 we're sorry, we don't have a budget, it's the

                 other house's fault, it's the Governor's

                 fault, I could solve this problem if you would

                 just listen to me -- all this other nonsense





                                                          2737



                 that we all put out every year.

                            The problem is, this would take a

                 lot of that away.  We'd go back to our

                 constituents and say:  Oh, no, there's a

                 budget, we're still operating on last year's

                 budget.  And I think it would just reduce the

                 incentive now, which is obviously not great

                 enough to overcome this governmental problem,

                 significantly.

                            So I do think this resolution moves

                 us in the wrong direction.  I think it will

                 produce later and later budgets, I think it

                 will produce worse budgets for the people of

                 the state.  And think about the cities and

                 towns whose needs increase and who are going

                 to be stuck with last year's budget into who

                 knows when -- September, October, November.

                            This is a solution that makes the

                 problem it attempts to address even worse.

                 And I would urge everyone to vote no.

                            SENATOR MEIER:    Any other Senator

                 wish to be heard?

                            Senator Brown.

                            SENATOR BROWN:    Yes, Mr.

                 President, I'd like to speak on the bill.





                                                          2738



                            Let me commend Senator Bruno for

                 his interest in passing a budget on time.

                 Unfortunately, I don't feel that I can support

                 this, because I don't feel that it will really

                 accomplish Senator Bruno's intent of having

                 the state budget passed on time.

                            Today I met with some school boards

                 from my district that talked to me about

                 critical need to have the state budget passed

                 on time.  And they said, "Senator Brown, we

                 want your commitment that you will support the

                 state budget being passed on time."  And I

                 said to those school board officials:  "You

                 have my commitment.  I support the state

                 budget being passed on time.  But

                 unfortunately, and sadly, there's nothing that

                 I as a Senator can do to make sure that the

                 state budget is passed on time."

                            Because if I was brought into the

                 process, if I truly had involvement in the

                 process, if I truly had a voice in the

                 process, I would make sure that the state

                 budget was passed on time.

                            I think this bill gives enormous

                 power to the Governor.  And, like Senator





                                                          2739



                 Dollinger said, I'm not referring to Governor

                 Pataki but to any person that might occupy the

                 Executive seat.  And I don't think that is

                 necessarily a good thing.

                            In addition, as Senator

                 Schneiderman and Senator Duane have said, I

                 think the minority parties need to be brought

                 into the process.  I think we need to utilize

                 the conference committee system more than it's

                 being utilized now.  And we need to bring more

                 people into the process of making the budget

                 decision.

                            I think if we do that, then we

                 would go a long way towards getting a budget

                 passed on time.  Clearly -- I mean, it's been

                 said many times, there's been editorials from

                 papers across the state expressing concern

                 about the three-people-in-a-room process and

                 the fact that for the last 17 years, that

                 process has not worked in terms of getting a

                 budget passed on time in this state.

                            So while I commend Senator Bruno

                 for his interest and concern in getting the

                 state budget passed on time, and I certainly

                 support that concern, I don't think this piece





                                                          2740



                 of legislation will accomplish that.  So I

                 will be voting in the negative.

                            ACTING PRESIDENT MEIER:    Senator

                 Volker.

                            SENATOR VOLKER:    Thank you, Mr.

                 President.  And I will be brief.

                            Senator Hevesi, I have to tell you,

                 as I was sitting in the room in there

                 listening to you, and I closed my eyes for a

                 minute, and I thought I was listening to your

                 father.

                            I heard that same speech from your

                 father in the Assembly about 25 years ago.  I

                 hesitate to tell you, his might have been a

                 little bit better.  But yours was good.

                            (Laughter.)

                            SENATOR VOLKER:    And he was in

                 the Minority.  And I must tell you -- and you

                 were very good.  And I say that to you.

                            You know, a couple of things I'd

                 just like to say.  And I guess I've been

                 around here, Senator Stafford and myself and a

                 few people are the only people that have been

                 around, I guess, as long, it seems like.  And

                 Senator Goodman.  And Senator Velella and I





                                                          2741



                 came from the Assembly also.  Senator Velella

                 was there when your father was there.  And

                 Senator Marchi was here, well, before we all

                 were here.

                            But what I was going to say is, you

                 know, there's one thing I have to tell you.

                 And I've traveled -- in my younger days, I

                 used to travel quite a bit.  If you think this

                 is the most partisan legislature in the United

                 States of America, I got to tell you, you are

                 absolutely wrong.  You can't believe many of

                 the legislatures in this country operate,

                 particularly in the South and West, in many

                 cases.  And in some cases the roles are

                 reversed, and that is that the Republicans are

                 all in the cities and the Democrats are all in

                 the rural areas.

                            You must remember, what brought on

                 conference committees in Washington was

                 there's 435 people in the House of

                 Representatives.  So that it would be

                 difficult for many of those people, unless

                 they had ten to twenty years' seniority, to

                 have any kind of say at all.

                            Now, I know the three men in the





                                                          2742



                 room nonsense that we have here.  As I've told

                 many of my constituents many times, If that

                 were really true, I wouldn't be here if I had

                 no say about what's going on.  And I

                 understand, it's tough to be in the Minority.

                 It really is.  And I understand that in many

                 ways.

                            But I want to tell you something.

                 Senator Bruno -- and I've known Joe for a long

                 time -- you can tell how irritated he is

                 because this budget process is not moving.

                 And you can do all the things you want to do

                 and you can say that he can take care of this

                 and all that, but it doesn't work like that.

                            And you can try conference

                 committees and all that, but conference

                 committees or no conference committees, if the

                 decision is made by one of the leaders in this

                 day and age -- and by the way, it isn't as if

                 in 17 years we have been way over.  I mean,

                 there was one year we were about to pass the

                 budget four days early when two courts came in

                 and blindsided us.  One was our own Court of

                 Appeals that made a decision to change all the

                 rules in 50, 75 years.  And when I asked one





                                                          2743



                 of the Court of Appeals people, I said,

                 "Didn't you realize what you were doing?" they

                 said, "Oh, we never thought of it."  And

                 that's why we were late by three weeks that

                 year, and it took us two years to finish,

                 literally, that budget.

                            And the reason I point it out is,

                 there's been many factors.  And most of the

                 budgets have been a matter of days late.  The

                 truth is, you can talk all you want -- and I

                 understand we have a Republican Governor now,

                 so that's especially a problem when you're

                 Democrats.  It was a problem for us when we

                 had Mario Cuomo as the Governor, because the

                 theory is it that gives you an advantage.  And

                 I understand all that.

                            But this is a logical step, one

                 that I -- I don't like to take.  But I'll tell

                 you what really bothers us upstaters, as long

                 as we're all telling the truth here what

                 bothers us.  I tell my constituents no one

                 east of Albany really gives a damn -- you'll

                 excuse me, and I shouldn't use that

                 language -- really cares whether the budget

                 passes on time or not.  It's our constituents





                                                          2744



                 upstate that really care.  They're the ones

                 that care.

                            The media will talk about it

                 occasionally in New York City.  So when a

                 New York City problem comes up, it's really -

                 all our budget delays for the -- virtually

                 have been New York City problems.  And we know

                 that.  I mean, this is a problem.

                            It's a political problem with the

                 school decision.  I mean, an interesting

                 decision.  It says the school district is in

                 terrible shape, there's bad leadership, bad

                 teachers, all the bad things, but if we just

                 give them some more money, everything will be

                 fine.  And the City of New York, of course,

                 doesn't have any money.  I mean, that's what

                 that decision says if you read it literally.

                 It's a scary decision in many ways because it

                 also points out some things that a lot of us

                 didn't realize.

                            The reason I'm pointing this out

                 is -- and I know the media is going to report

                 a lot of what you say.  The three men in a

                 room stuff is all very nice, and it would be

                 nice if some other things could be done.  But





                                                          2745



                 let's not kid ourselves.  The real world

                 presses upon us.  And the real world is that

                 this is very serious business.

                            Joe Bruno, the Majority Leader of

                 this house, is trying to find a way to get

                 this budget process moving, and he's very

                 frustrated.  And he believes that this is the

                 best way to do it short of everybody, you

                 know, finding some way to get together in a

                 world, by the way, where the vast majority of

                 New Yorkers pay no attention.  We haven't

                 elected a Governor here in 40 years by a

                 majority of the people.  You were right about

                 that.  Nobody is paying attention.  And the

                 media has all their own agendas.  We know

                 that.

                            I mean -- so I only say this, that

                 I understand and sense your frustration and I

                 understand you're in the Minority.  But I got

                 to tell you a thing.  And one thing in defense

                 of Joe, he truly believes, in frustration,

                 that the bill that he has put forth here under

                 the circumstances is the only way he sees the

                 real possibility of getting around the

                 situation that we have ourselves in today.





                                                          2746



                            ACTING PRESIDENT MEIER:    Senator

                 Duane.

                            SENATOR DUANE:    Thank you, Mr.

                 President, on the bill.

                            I have to say at least when the

                 Majority Leader is frustrated, he puts a bill

                 on the floor.  We can't even put a bill or a

                 motion to discharge or amendment on the floor.

                 I feel his frustration.  But it would be good

                 if everybody else here felt the frustration of

                 other members as well.

                            I might have a lot of plans for

                 making the budget process more functional.

                 Not only might I, I do.  So maybe what I

                 should do is get some bills on the floor.  But

                 how will I do that?  How will I do that?

                            Oh, well, maybe I could do a motion

                 to -- no, I can't do a motion to discharge.

                 Or maybe I could amend -- oh, no, I can't get

                 an amendment on this.  You know, how am I

                 going to deal with my frustration?

                            Well, you know, every other state

                 in the nation doesn't have this problem.  They

                 don't have to fix their budget problems with

                 constitutional amendments.  They just do it.





                                                          2747



                 They just do it.  If we had the political

                 will, it would get done.  I can't believe all

                 the acknowledgement that goes on here about

                 three men in a room.  Well, we should change

                 that.  Let's put a few more men, maybe even a

                 few women, in the room.  That would probably

                 go a long way towards solving the problem here

                 of our budget.

                            I'm frustrated too.  I'm

                 frustrated.  But you know what?  There's very

                 little I can do about it.  And actually, the

                 way I would deal with the frustration is not

                 by putting another one-house bill on the floor

                 here.  I mean, that -- come on.  These

                 one-house bills, they don't really make us

                 look too good.  Right?  Am I right?  Do

                 one-house bills look good?  I don't think so.

                 Do you think anyone's fooled by one-house

                 bills?  No, I don't think so.

                            So here we have the thing that's

                 supposed to fix all of our budget problems is

                 a one-house bill?  I don't think so.  I mean,

                 who are we kidding?  If we wanted to fix the

                 budget process, we could just fix the budget

                 process.  But maybe that's where the will





                                                          2748



                 isn't.  Maybe if the three men in the room

                 opened up the doors and let some light in,

                 we'd get more work done and we'd have a budget

                 coming in closer to on time.

                            That's really the way to do it.  We

                 don't have to pass one-house constitutional

                 amendment bills to try to make believe we're

                 forcing ourselves to get a budget done.  We

                 can just get the budget done.  Lots of people

                 who are in this body were in other bodies

                 before that got budgets done on time.  I came

                 from a place that every year that I was there,

                 our budgets happened on time.  Lots of people

                 here are county legislators, they're former

                 council people.  All did their budgets on

                 time.  What's wrong with us?

                            I'm feeling frustrated, and I'd

                 like to do something about it, but I can't get

                 a bill on the floor because we can't do

                 motions to discharge.  So instead of that,

                 let's just open up that room with those three

                 guys in it.  Let's lower the testosterone a

                 little bit in there.  Let's let some fresh air

                 in, and let's pass a budget on time.

                            Thank you.





                                                          2749



                            ACTING PRESIDENT MEIER:    Senator

                 Paterson.

                            SENATOR PATERSON:    Well.

                             (Laughter.)

                            SENATOR PATERSON:    I concur with

                 Senator Duane.  And I think that one of the

                 grave mistakes that we would be making by

                 passing this resolution would be to actually

                 legislate what is an agenda, what is a point

                 of view.  It is a point of view that's valid

                 to those who have advanced it, but it really

                 conflicts with a few notions.

                            Number one, how could we ever

                 presume that there be a cut in appropriations

                 based on the last year's budget priorities

                 when we would have no idea what the budget

                 priorities would be for the year in which

                 we're deciding on a budget?

                            Secondly, I think we would really

                 limit the notion of any type of real system

                 around here of any checks and balances,

                 because we've now given the Executive a

                 weapon -- and by the way, the Executive's name

                 is not always going to be George Pataki.  One

                 of the worst things that could happen to the





                                                          2750



                 Majority Leader is if this bill passed and

                 things don't go his way in an election one

                 day, and he might live to rue the day.

                            So I think I'm going to do him a

                 favor by voting against this legislation to

                 protect the Majority from themselves, because

                 this is putting an inordinate amount of power

                 in one arm of government without any real

                 understanding of what it could mean if that

                 arm of government is adversarial to your

                 cause.

                            So I think that Senators Dollinger

                 and Hevesi and Brown and particularly Senator

                 Duane have pretty much stated how I feel, but

                 I just wanted to put that in.

                            And I do understand what Senator

                 Volker is saying, although I really was

                 surprised with Senator Volker.  He of all

                 people should know that the sons have always

                 outperformed their fathers here in the

                 Legislature.

                            And so with all respect to Senator

                 Hevesi, I think his speech was far greater

                 than his father, who I admire.  But after all,

                 he is younger, smarter, more handsome, more





                                                          2751



                 determined, perceptive and courageous.

                            Senator Balboni is a little jealous

                 because we're not talking about him for one or

                 two minutes here in the Legislature.

                            And with that, Mr. President, that

                 concludes my statement for the day, and I

                 thank you for listening.

                            (Laughter.)

                            ACTING PRESIDENT MEIER:    Always a

                 pleasure, Senator Paterson.

                            Senator Stafford.

                            SENATOR STAFFORD:    Mr. President,

                 it's very seldom I rise, but I would suggest

                 to both Senator Paterson and Senator Hevesi

                 it's a matter of physics.  The river never

                 rises higher than its source.

                            I know you'll have to think about

                 that.  You'll have to think.

                            (Laughter.)

                            SENATOR STAFFORD:    And I would

                 only conclude by emphasizing what's been said

                 so well on this side of the aisle.  I too

                 remember -- or not too, but I do remember -

                 again, as Senator Marchi does, Senator

                 Volker -- he spoke and he left -- and some





                                                          2752



                 others here, Senator Velella, remember when,

                 yes, the budget was passed on time.

                            And that's because those in the

                 Assembly and those in the Senate were willing

                 to sit down and hammer out on the anvil of

                 discussion and get the job done.

                            But if people refuse to sit down

                 and to take part and have a way, as far as

                 they are concerned, that will push the date

                 past the date that we want to pass a budget

                 and do that for an agenda, we won't have a

                 budget on time.

                            And I would suggest, as has been

                 emphasized on this side of the aisle, we are

                 willing to sit down and negotiate and hammer

                 out the issues on the anvil of not only

                 discussion but the anvil of reason.

                            Thank you, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Onorato.

                            SENATOR ONORATO:    On the bill.

                            We're just hearing about how

                 cooperation could be helpful in getting a

                 budget passed on time.  You know, the budget

                 happens to be one of the most important things





                                                          2753



                 that this legislative body does.  And yet we

                 have never applied the private industries' way

                 of settling contract negotiations and

                 disputes.  You lock yourselves in a room until

                 you get something done.

                            You don't go in and negotiate for a

                 half an hour, get a little bit mad at one

                 another, walk out of the room, leave your

                 staff again to negotiate.  To negotiate what?

                 How can your staff renegotiate what the three

                 men in a room couldn't agree upon?  It doesn't

                 make any sense at all.

                            But if they continue to hammer away

                 at it day and night, without these constant

                 recesses -- going down to cut a ribbon in

                 New York City or up in Buffalo or up in

                 Niagara -- if the three men remained in that

                 room, we'd get a budget on time.

                            And those of us in this chamber and

                 in the Assembly chamber would not be penalized

                 and castigated by the public for not passing

                 the budget on time, because we don't have the

                 input that we should have in the budget

                 process.

                            We make motions to discharge.  We





                                                          2754



                 just had a series of it today on what we

                 thought would be beneficial to the budget

                 process.  But when was the last time that we

                 had -- here it is it's March, March the 20th.

                 We've got 11 more days of time to pass a

                 budget.  Have we had any joint meetings

                 between the Senate and the Assembly to try to

                 resolve whatever differences we've had?  No.

                            And this particular bill doesn't

                 accomplish that.  It doesn't make any rhyme or

                 reason.  So I would urge my colleagues to vote

                 against it.

                            ACTING PRESIDENT MEIER:    Senator

                 Connor.

                            SENATOR CONNOR:    Thank you, Mr.

                 President.

                            I'm going to vote against this

                 because I think the problem with the default

                 provision is that all of last year's deals and

                 negotiations just get locked in, and needs

                 change.  The needs of constituents change, the

                 state's financial circumstances change.  And

                 it's an abnegation, an automatic default is an

                 abnegation of our legislative

                 responsibilities.





                                                          2755



                            That said, I was here -- came here

                 in February 1978.  So we go into the budget

                 within a matter of weeks then, because in

                 those days people anticipated, expected, and

                 presented a budget by -- not by April 1st,

                 that's what you did the last week of March.

                            And I remember when a member whom I

                 respected enormously, Senator Donovan,

                 presented an amendment on Medicaid abortion

                 and it passed on the floor.  Which meant the

                 budget then as amended had to age, not even

                 addressing the issue that it didn't agree with

                 the Assembly budget.  And all the members of

                 this house were in a panic, because it was

                 obvious we weren't going to -- even if we

                 resolved that, we weren't going to have a

                 budget until April 2nd or 3rd.

                            The state was in panic, headlines

                 blared, glaring headlines.  A late budget was

                 just inconceivable to the leadership in both

                 houses, the Governor, or whatever.

                            The problem is when you get used to

                 something, you always push the edge.  There

                 were those who worried back then, ah, you

                 know, we went till April 3rd, we're going to





                                                          2756



                 regret this.  The Capitol didn't collapse.

                 And there were times a year or two or three

                 later when we went over a week or two, but the

                 Comptroller issued scrip and the state went

                 on.

                            Now we've lost all sense of crisis

                 until sometime in midsummer, it seems to me.

                            And it really is a matter of

                 political will.  As Senator Stafford said,

                 when they wanted to get it done, they went in

                 a room and they did it, they worked at it.

                            Senator Onorato pointed out, you

                 know, when you're doing collective bargaining,

                 you don't set up a system like this where you

                 negotiate, negotiate, negotiate but if you

                 don't get a new contract, the old contract

                 sets in.  That gives too much advantage to one

                 side.  It gives all the advantage to one side,

                 and all the reasons to one side not to

                 negotiate, not to come to a conclusion.

                            So I understand Senator Bruno

                 offering this.  It's an attempt to deal with a

                 problem that he's experienced, this

                 Legislature has experienced.  I've thought of

                 different solutions.  You know, Senator





                                                          2757



                 Onorato, Mr. President, mentioned collective

                 bargaining.

                            I remember before -- and I'm called

                 to mind of this because Cardinal Egan was here

                 last week.  I remember before Pope Paul

                 changed the constitution on the election of a

                 pope, under the old rules that prevailed -

                 and they may have been changed before that,

                 too, by John XXIII.  But before that, the

                 rules that been in effect for a couple of

                 centuries involved the College of Cardinals,

                 when there was a sede vacante, the seat was

                 vacant, being locked in the Sistine Chapel and

                 adjoining buildings, bricked in, with a slot

                 for passing food and drink through.  They were

                 each in there, they could bring one assistant

                 with them.  They were sworn to secrecy.  And

                 if they didn't, by two-thirds plus one vote,

                 elect a pope within 30 days, they cut off the

                 food going through the food slots.

                            That hadn't happened in modern

                 times, but it in fact happened in past

                 centuries, where the way they finally resolved

                 their differences was they were locked in

                 there and they cut off the food.  Usually they





                                                          2758



                 elected a pope within a day or two of that.

                            Maybe we -- they won't like it, but

                 maybe we ought to lock the three men in a room

                 and give them 24 or 48 hours or three days and

                 then cut off the food and just pass in water.

                 Somehow or other if we could do that -- and I

                 know it's an anachronistic approach, I

                 suppose.  But I can't help thinking it would

                 be efficacious in resolving this.

                            The answer really isn't willpower

                 here, the answer is also -- and it's a more

                 subtle answer -- in member expectations,

                 legislators', in both houses, in both parties,

                 expectations.  Other states deal with partisan

                 differences.  Other states deal with a

                 governor of one party, a legislature of

                 another, or a divided legislature, and seem to

                 get their job done on time.

                            For all the progress we've made in

                 the last couple of years, I certainly hope

                 this year isn't a big giant step backwards in

                 getting a relatively on-time budget.

                            I appreciate the good intentions

                 behind this suggested resolution.  I just

                 think it's a total abnegation of legislative





                                                          2759



                 responsibility, and it will actually result in

                 repeated budgets.  It would just be much

                 easier for one of the three players to let the

                 old default budget kick in rather than deal

                 with a new budget, particularly if one of the

                 three players senses an advantage in that.

                            So I'm going to vote no.

                            ACTING PRESIDENT MEIER:    Senator

                 Stachowski.

                            SENATOR STACHOWSKI:    Very

                 briefly, Mr. President.

                            I would like to support this reform

                 bill if I thought it were real.  But I

                 really -- I have a little bit of a problem

                 thinking it's a real bill when during the

                 explanation the Leader talks about how

                 obstinate and uncooperative is the Speaker is.

                 I doubt if he would have said that if he

                 thought they were going to pass the same

                 resolution and that would be the solution.

                            Actually, there's a lot of parts of

                 this I like.  The default budget I don't.  And

                 I happen to agree with Senator Connor that you

                 can't use last year's overall package and

                 expect it to be a continuing situation.  We





                                                          2760



                 don't know that the revenues will be the same.

                 We don't know that the communities need the

                 same thing they needed.  We don't know if some

                 of the programs work.  Maybe there was a

                 program that was funded that's just absolutely

                 terrible, and we're still funding it.  It

                 doesn't make sense.

                            There seems to be a piece that goes

                 with it where the Governor then can take out

                 the parts he don't like.  Well, if they don't

                 want to sit down and talk because he wants a

                 veto-proof budget, I don't think he's passing

                 a bill that says, yeah, we'll let the Governor

                 take out whatever he wants and we'll go with

                 what's left.

                            So I just have a little trouble

                 with this.  I don't mind voting sometimes for

                 one-house bills if I think they send a great

                 message.  I'm not sure that this one entirely

                 does.  Again, I think parts of it are great, I

                 just don't know that all of it's so good.

                            And I heard some people referring

                 to historical things.  Well, you know, we had

                 our economic forecast meeting and there's no

                 commitment by anybody to veto-proof avails.





                                                          2761



                 But we still haven't had the avails announced,

                 and there's no reason we couldn't do that.

                 Everybody put their forecasts out.  There's no

                 reason we couldn't have an agreement on that

                 and be a little bit closer.  But we haven't

                 even paid attention to that in years.  And you

                 think we'd at least be working towards that,

                 but we're not.

                            And why does the Speaker feel so

                 strongly about the veto part of the Governor's

                 constitutional right, and why does he want to

                 take that away from him, so to speak?  Maybe

                 because a couple of years ago, as long as

                 we're speaking in historical terms, they had a

                 deal.  Both houses sent their budget over, the

                 Governor vetoed a large number of items, and

                 we could all live with that.  Unfortunately,

                 though, somewhere down later in the year the

                 Governor decided to start putting some of

                 those items back in.  And the only ones he put

                 back in were from members of his own party.

                            And that was a little troublesome

                 to everybody, because before when the Governor

                 decided to put things back in and spend money

                 that wasn't in the budget, we used to have to





                                                          2762



                 pass chapters to do that.  But we didn't

                 bother doing chapters, we just let the

                 Governor take the parts that he had vetoed out

                 and decided either he vetoed them out by

                 mistake or he just found out that it was some

                 friend's of his piece.  He put those pieces

                 back in on his own, and we didn't even bother

                 with chapters.

                            So that was a major problem, not

                 only for the Speaker but for a lot of people

                 here.  Mainly the institutional people were

                 somewhat horrified because the Legislature had

                 given up part of its authority in the process

                 by having to pass chapter amendments when the

                 Governor was going to spend a piece that he

                 had vetoed out.

                            However, maybe that makes an

                 explanation for people listening that aren't

                 familiar with the history, and maybe to make

                 people understand a little bit -- not that you

                 all understand everything they do in the other

                 house -- but maybe understand a little bit why

                 maybe the Speaker is a little gun-shy about

                 just going on people's word.  Because in this

                 business, your word is everything.





                                                          2763



                            And hopefully we can get by those

                 kind of things, get everybody pushing in the

                 same direction, get the members pushing on all

                 their leadership, get us sitting down.  I

                 remember when Senator Anderson was here, we

                 used to stay here, kind of in the way Senator

                 Onorato referred to.  We'd be staying here on

                 weekends.  Nobody was happy.  You'd leave

                 home, you didn't know if you were leaving for

                 four days or two weeks.  But it seemed like

                 things got moving after a while.

                            But when everybody stays two or

                 three days and goes home, there's no push to

                 get this thing done.  Maybe we should go back

                 to the days when we'd stay here all weekend

                 and we'd do sessions while people negotiated

                 or we'd just do sessions until people finally

                 beseeched their leadership so strongly that

                 they'd say, We've got to get a deal here, we

                 just can't keep doing this.

                            Whatever it takes, we got to do it

                 ourselves.  We shouldn't have to pass

                 legislation to make us do the job that we're

                 paid for.  We should be able to do that on our

                 own.  That's what we're elected to do.  And





                                                          2764



                 hopefully that's what we will start to do.

                            I'll probably be opposing this

                 also.  Thank you.

                            ACTING PRESIDENT MEIER:    The

                 question is on the resolution.

                            The Secretary will call the roll.

                            SENATOR PATERSON:    Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson, are you asking to be recognized?

                            SENATOR PATERSON:    Mr. President,

                 may we have a slow roll call on that

                 resolution?

                            ACTING PRESIDENT MEIER:    The

                 Secretary will call the roll.

                            SENATOR VELELLA:    Mr. President,

                 can the Secretary call the members into the

                 house and have the bells rung so that we can

                 bring our members into the chamber.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will ring the bells.

                            THE SECRETARY:    Senator Alesi.

                            SENATOR ALESI:    Aye.

                            SENATOR BROWN:    Senator Balboni.

                            SENATOR BALBONI:    Yes.

                            THE SECRETARY:    Senator Bonacic.





                                                          2765



                            SENATOR BONACIC:    Yes.

                            THE SECRETARY:    Senator Breslin.

                            SENATOR BRESLIN:    No.

                            THE SECRETARY:    Senator Brown.

                            SENATOR BROWN:    No.

                            THE SECRETARY:    Senator Bruno.

                            (Senator Bruno was indicated as

                 voting in the affirmative.)

                            THE SECRETARY:    Senator Connor.

                            (Senator Connor was indicated as

                 voting in the negative.)

                            THE SECRETARY:    Senator

                 DeFrancisco, excused.

                            Senator Dollinger.

                            SENATOR DOLLINGER:    To explain my

                 vote, Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger, to explain his vote.

                            SENATOR DOLLINGER:    Just for the

                 sake of the record, Mr. President, I think we

                 had a discussion yesterday about ending debate

                 and the consistency of the rules.  I would

                 just suggest that we continue to abide by

                 those rules when we're ending the debate both

                 on resolutions and on bills.





                                                          2766



                            But more importantly, Mr.

                 President, I don't understand, have never

                 understood, and will never understand why the

                 Majority of this house, having the political

                 power of the Legislature, is so willing to

                 give it away to a Governor.  I don't

                 understand it.  We fought like hell last

                 November to try to get it away from you.  The

                 voters gave it back to you, and you are about

                 to cede that power to the Governor through

                 this bill.

                            I don't understand it.  I would

                 just suggest, Mr. President, that had there

                 been a different outcome last November, I

                 certainly would never stand before this body

                 and say:  Oh, you know, it's okay, if we can't

                 agree on a budget, we'll have a default and

                 let the Governor run the state without us for

                 as much as a year without our input.

                            I would never want to be in that

                 position.  I would never give away the

                 political power.  I would never give away the

                 power of this Legislature.  And for the life

                 of me, I could never understand why a majority

                 in this house would ever agree to do anything





                                                          2767



                 like that.

                            I would suggest this is a bad idea.

                 It's a bad idea for the Legislature.  It's a

                 bad idea for this house.  It's a bad idea for

                 the people of the State of New York.  It

                 should be put in the dustbin with other bad

                 ideas.  My hope is my negative vote gets it

                 there quicker.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger will be recorded in the negative.

                            The Secretary will continue to call

                 the roll.

                            THE SECRETARY:    Senator Duane.

                            ACTING PRESIDENT MEIER:    Senator

                 Duane, to explain his vote.

                            SENATOR DUANE:    Thank you, Mr.

                 President.  But I really think is the only

                 thing I can say is -

                            ACTING PRESIDENT MEIER:    Can we

                 have some order in the chamber so we can get

                 through the roll call, please.

                            Can I ask people to stop their

                 conversations until we complete the roll call,

                 please.

                            Senator Duane, to explain his vote.





                                                          2768



                            SENATOR DUANE:    I was just going

                 to say what more can I say, Mr. President.  I

                 think I said it all.  I vote no.

                            ACTING PRESIDENT MEIER:    Senator

                 Duane will be recorded in the negative.

                            THE SECRETARY:    Senator Espada.

                            SENATOR ESPADA:    No.

                            THE SECRETARY:    Senator Farley.

                            SENATOR FARLEY:    Aye.

                            THE SECRETARY:    Senator

                 Fuschillo.

                            SENATOR FUSCHILLO:    Yes.

                            THE SECRETARY:    Senator Gentile.

                            SENATOR GENTILE:    No.

                            THE SECRETARY:    Senator Gonzalez.

                            SENATOR GONZALEZ:    No.

                            THE SECRETARY:    Senator Goodman.

                            (No response.)

                            THE SECRETARY:    Senator Hannon.

                            SENATOR HANNON:    Yes.

                            THE SECRETARY:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    No.

                            THE SECRETARY:    Senator Hevesi.

                            SENATOR HEVESI:    To explain my





                                                          2769



                 vote.

                            ACTING PRESIDENT MEIER:    Senator

                 Hevesi, to explain his vote.

                            SENATOR HEVESI:    Thank you, Mr.

                 President, very briefly.

                            As I stated before, this resolution

                 provides an incentive for whichever party to

                 the budget process is most dissatisfied with

                 the new request.  It provides an incentive for

                 that party to stall, to not negotiate, and

                 thus be an impediment to the budget process.

                            And no one has addressed that on

                 the other side of the aisle, whether or not

                 that statement, which many of my colleagues

                 have embraced, is flawed in any way logically.

                 Because if it is not flawed, this is a bad

                 bill.  If it is flawed, please point it out.

                            In the absence of that explanation,

                 I vote no on this very bad piece of

                 legislation.

                            ACTING PRESIDENT MEIER:    Senator

                 Hevesi will be recorded in the negative.

                            THE SECRETARY:    Senator Goodman.

                            SENATOR GOODMAN:    Aye.

                            THE SECRETARY:    Senator Hoffmann.





                                                          2770



                            SENATOR HOFFMANN:    Aye.

                            THE SECRETARY:    Senator Johnson.

                            SENATOR JOHNSON:    Aye.

                            THE SECRETARY:    Senator Kruger.

                            SENATOR KRUGER:    No.

                            SENATOR BROWN:    Senator Kuhl.

                            SENATOR KUHL:    Yes.

                            THE SECRETARY:    Senator Lachman.

                            SENATOR LACHMAN:    No.

                            THE SECRETARY:    Senator Lack.

                            SENATOR LACK:    Aye.

                            THE SECRETARY:    Senator Larkin.

                            (No response.)

                            THE SECRETARY:    Senator LaValle.

                            SENATOR LAVALLE:    Aye.

                            THE SECRETARY:    Senator Leibell.

                            SENATOR LEIBELL:    Aye.

                            THE SECRETARY:    Senator Libous.

                            SENATOR LIBOUS:    Aye.

                            THE SECRETARY:    Senator Maltese.

                            SENATOR MALTESE:    Aye.

                            THE SECRETARY:    Senator

                 Marcellino.

                            SENATOR MARCELLINO:    Aye.

                            SENATOR MEIER:    Senator Marchi.





                                                          2771



                            SENATOR MARCHI:    Aye.

                            THE SECRETARY:    Senator

                 Markowitz.

                            SENATOR MARKOWITZ:    No.

                            THE SECRETARY:    Senator Maziarz.

                            (No response.)

                            THE SECRETARY:    Senator McGee.

                            SENATOR McGEE:    Yes.

                            THE SECRETARY:    Senator Meier.

                            SENATOR MEIER:    Aye.

                            THE SECRETARY:    Senator Mendez.

                            SENATOR MENDEZ:    No.

                            THE SECRETARY:    Senator

                 Montgomery.

                            SENATOR MONTGOMERY:    No.

                            THE SECRETARY:    Senator Morahan.

                            SENATOR MORAHAN:    Yes.

                            THE SECRETARY:    Senator Nozzolio.

                            SENATOR NOZZOLIO:    Aye.

                            THE SECRETARY:    Senator Onorato.

                            SENATOR ONORATO:    No.

                            THE SECRETARY:    Senator

                 Oppenheimer.

                            ACTING PRESIDENT MEIER:    Senator

                 Oppenheimer, to explain her vote.





                                                          2772



                            SENATOR OPPENHEIMER:    I'll be

                 voting no, because I don't understand how, if

                 we use last year's budget in the coming year,

                 how do we pay the contracts that we've signed

                 with our employees that might have a 2 percent

                 increase?  I mean, if we're not going to

                 increase the budget to pay our bills, how are

                 we -- I mean, we're going to be in a deficit

                 position big time.

                            I have often felt that the only

                 thing that is really needed in this Capitol to

                 pass a budget is the will to get the budget

                 passed.  And I think if all of us demanded

                 that we have an on-time budget, we would have

                 an on-time budget.

                            So I think we have to somehow reach

                 deep within ourselves and say why have we not

                 demanded that we get an on-time budget,

                 because those of us that have small school

                 districts know what it's like for them to try

                 and throw together a budget without a clue as

                 to what the state is providing them.  It

                 really is very improper, and there has to be

                 some way for all of us to come together and

                 say this cannot be tolerated any longer.





                                                          2773



                            Thank you.  I'll be voting no.

                            ACTING PRESIDENT MEIER:    Senator

                 Oppenheimer will be recorded in the negative.

                            THE SECRETARY:    Senator Padavan.

                            SENATOR PADAVAN:    Aye.

                            THE SECRETARY:    Senator Paterson.

                            SENATOR PATERSON:    No.

                            THE SECRETARY:    Senator Rath.

                            SENATOR RATH:    Yes.

                            THE SECRETARY:    Senator Saland.

                            SENATOR SALAND:    Aye.

                            THE SECRETARY:    Senator Sampson.

                            (No response.)

                            THE SECRETARY:    Senator Santiago.

                            (No response.)

                            THE SECRETARY:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Mr.

                 President, to explain my vote.

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman, to explain his vote.

                            SENATOR SCHNEIDERMAN:    I'm also

                 going to be voting no.

                            I think that I'd just like to

                 follow up on the comment that Senator





                                                          2774



                 Oppenheimer made.  This is a bill that would

                 put our budget of localities throughout the

                 state, of all of the agencies, private and

                 public and quasipublic that depend on the

                 state budget, out of sync with their current

                 needs.

                            It doesn't make any sense.  It is,

                 as Senator Dollinger has argued, a transfer of

                 power to a Governor who I believe has too much

                 power.  I don't see how this would improve the

                 process.  I think this will make for longer

                 budgets.  I have not heard any arguments to

                 rebut any of the discussion on this side of

                 the aisle.

                            And I would urge everyone to vote

                 no, and let's come up with a real budget

                 reform package this year.

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman will be recorded in the negative.

                            SENATOR BROWN:    Senator Seward.

                            SENATOR SEWARD:    Yes.

                            THE SECRETARY:    Senator Skelos.

                            SENATOR SKELOS:    Yes.

                            THE SECRETARY:    Senator A. Smith.

                            SENATOR ADA SMITH:    No.





                                                          2775



                            THE SECRETARY:    Senator M. Smith.

                            SENATOR MALCOLM SMITH:    No.

                            THE SECRETARY:    Senator Spano.

                            SENATOR SPANO:    Aye.

                            THE SECRETARY:    Senator

                 Stachowski.

                            SENATOR STACHOWSKI:    No.

                            THE SECRETARY:    Senator Stafford.

                            SENATOR STAFFORD:    Aye.

                            THE SECRETARY:    Senator Stavisky.

                            ACTING PRESIDENT MEIER:    Senator

                 Stavisky, to explain her vote.

                            SENATOR STAVISKY:    Mr. President,

                 it seems to me that with the budget resolution

                 that passed here earlier, and with the tax

                 cuts that have been recommended for the

                 out-year progression, it seems to me it would

                 make it all the more difficult if this

                 legislation were to be enacted.

                            It's hard for me to go back to the

                 people in Queens County and say that a bad

                 budget but a timely budget is better.  For

                 that reason -- it is not better.  And for that

                 reason, I vote no.

                            ACTING PRESIDENT MEIER:    Senator





                                                          2776



                 Stavisky will be recorded in the negative.

                            THE SECRETARY:    Senator Trunzo.

                            SENATOR TRUNZO:    Yes.

                            THE SECRETARY:    Senator Velella.

                            SENATOR VELELLA:    Yes.

                            THE SECRETARY:    Senator Volker.

                            SENATOR VOLKER:    Yes.

                            SENATOR BROWN:    Senator Wright,

                 excused.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will call the absentees.

                            THE SECRETARY:    Senator Larkin.

                            SENATOR LARKIN:    Aye.

                            THE SECRETARY:    Senator Maziarz.

                            SENATOR MAZIARZ:    Aye.

                            THE SECRETARY:    Senator Sampson.

                            (No response.)

                            THE SECRETARY:    Senator Santiago.

                            (No response.)

                            THE SECRETARY:    Ayes, 34.  Nays,

                 23.

                            ACTING PRESIDENT MEIER:    The

                 resolution is adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,





                                                          2777



                 would you please call up Calendar Number 167.

                            ACTING PRESIDENT MEIER:    The

                 Secretary will read Calendar 167.

                            THE SECRETARY:    Calendar Number

                 167, by Senator Bruno, Senate Print 7, an act

                 to amend the State Finance Law, in relation to

                 changing the state fiscal year.

                            SENATOR PATERSON:    Explanation.

                            SENATOR ADA SMITH:    Explanation.

                            ACTING PRESIDENT MEIER:    Senator

                 Stafford.

                            SENATOR STAFFORD:    Mr. President,

                 I will do my best to be clear, concise, and

                 brief.  And I think we can get the job done

                 here.

                            Now, I would just say to my friend

                 Senator Stachowski -- who I certainly get

                 along with, we've been friends since he got

                 here.  And he was talking about how it was

                 different a number of years ago.  It was

                 different because we never got into session to

                 do anything.

                            (Laughter.)

                            SENATOR STAFFORD:    So now at

                 least we get into session, and we get work





                                                          2778



                 done.

                            This bill also will really reform

                 the way we do business here as far as a budget

                 is concerned.  And this bill will provide a

                 jump start, if you will -- can you people hear

                 me there?  Yeah, because I can hear you.

                            (Laughter.)

                            SENATOR STAFFORD:    I'll start

                 over.

                            (Laughter.)

                            SENATOR STAFFORD:    There we are.

                 Now we'll see how this goes.  But -

                            ACTING PRESIDENT MEIER:    Senator

                 Stafford, you've just done more to secure

                 order than I ever could have.

                            SENATOR STAFFORD:    I know this is

                 really interesting and everyone is hanging on

                 the side of their seat.  And I am.  But this

                 is serious.

                            This will give us a jump start, and

                 we will have a revenue forecast of the

                 Medicaid public assistance caseload, and also

                 the school aid assessment.  And that will be

                 by December 1 of each year.  Also in this bill

                 we'll have a consensus revenue forecast





                                                          2779



                 provided for.  And this consensus revenue

                 forecast between the legislative and executive

                 will be required by March 1.

                            Now, if no consensus is reached -

                 I'm sure everyone will be interested on both

                 sides of the aisle, and maybe on each side of

                 the aisle, and maybe more on one side of the

                 aisle -- but if no consensus is reached, the

                 State Comptroller will make the decision and

                 will provide a binding forecast.

                            Also, it provides for general

                 conference committees, which are very, very

                 important.  Both houses pass respective budget

                 resolutions after the issuance of a binding

                 revenue forecast, which either comes from the

                 Legislature or from the Comptroller.  And ten

                 general conference committees decide overall

                 avails and assign targets to individual

                 conference committees.  Which I think is an

                 excellent provision.

                            Now, did I mention that we change

                 the fiscal year?  All right, then I'll mention

                 it.  We change the fiscal year.  And it goes,

                 rather than April 1, to May 1.  Which I think

                 many people are of the opinion will be





                                                          2780



                 helpful, because we gain two months.  Which I

                 myself think will be helpful.

                            And the final point I will make is

                 that there is also a requirement of a

                 multiyear financial analysis of any changes to

                 the Executive budget by individual conference

                 committees.

                            So I think these are really the

                 mechanics of what we need.  I think it will

                 help us get the job done.  And I think it's a

                 good bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson.

                            SENATOR PATERSON:    Thank you, Mr.

                 President.  If Senator Stafford would yield to

                 a question.

                            ACTING PRESIDENT MEIER:    Senator

                 Stafford, do you yield for a question?

                            SENATOR STAFFORD:    By all means.

                            ACTING PRESIDENT MEIER:    The

                 Senator yields.

                            SENATOR PATERSON:    Senator,

                 there's been a discussion on the last piece of

                 legislation about really what is the -- I

                 think it was Senator Connor who brought it





                                                          2781



                 up -- the deterioration of responsibility,

                 that there were times when if we were even

                 approximating the budget deadline that there

                 would be most haste taken to try to complete

                 the business on time.  There was some

                 historical discussion of how they even would

                 stop the clock here in the chamber to make

                 sure that the budget was recorded as having

                 passed on March 31st.

                            Now, because, as Senator Connor

                 pointed out, we've gone further and further

                 into the year, as late as even August 5th -

                 which would have seemed unimaginable to some

                 of our predecessors, and would probably

                 confirm what you, Senator Stafford, said about

                 the river never rising as high as its source,

                 because in some ways we really disgraced the

                 memory of this chamber and the other

                 legislature here, because we really haven't

                 had that responsibility or found the ways, as

                 Senator Onorato discussed, about coming every

                 day or having a session every day or locking

                 down the chamber until the budget is passed.

                            And certainly during the

                 impeachment hearings which both parties wanted





                                                          2782



                 to get over a couple of years ago, that's what

                 they did.  And they got the impeachment done

                 in a matter of weeks.  This is the federal

                 impeachment.

                            But my question is, don't you have

                 an apprehension about moving the fiscal year

                 back to May 1st and in a sense triggering

                 almost a greater disregard and noncompliance

                 with regulations than the one we have now, and

                 perhaps we'll be looking at September,

                 October, we'll be coming up to the point where

                 the budget for the succeeding year should have

                 been issued and haven't passed a budget for

                 the year at hand.  Is that a concern of yours?

                            SENATOR STAFFORD:    Mr. President,

                 first I would suggest to Senator Paterson,

                 remember, I said it's physics.  The river

                 never rises higher than its source.  It can

                 rise as high as its source.  You said that it

                 could.  And I think that it can't go higher.

                            And of course Alan and Basil will

                 attest to that.  But now, I will suggest -

                 Alan Senior.

                            Now, you know, as far as

                 apprehension, all we have to do is study the





                                                          2783



                 legislatures in the various states.  Many of

                 you have gone to conferences where various

                 representatives are there from various states,

                 and you learn from other states.  I've

                 learned, when you people come back and tell me

                 about it, we have one of the shortest periods

                 from when the budget is presented to when the

                 budget passes.

                            So as far as apprehension, I don't

                 have any apprehension, concern as far as that

                 issue is concerned.

                            SENATOR PATERSON:    Well, Mr.

                 President -

                            ACTING PRESIDENT MEIER:    Senator

                 Paterson.

                            SENATOR PATERSON:    In honor of

                 physics, this being the first day of spring,

                 the vernal equinox, when the earth is actually

                 closer to the sun than it is at other times of

                 the year, but it's colder because of the

                 earth's slant, I will accept that explanation

                 from Senator Stafford and hope that whatever

                 changes we make, that we do pass the budget on

                 time one of these seasons.

                            ACTING PRESIDENT MEIER:    Senator





                                                          2784



                 Dollinger.

                            SENATOR DOLLINGER:    Mr.

                 President, will Senator Stafford yield just

                 for one question.

                            ACTING PRESIDENT MEIER:    Senator

                 Stafford, do you yield for a question?

                            SENATOR STAFFORD:    Yes.

                            ACTING PRESIDENT MEIER:    Senator

                 Stafford yields.

                            SENATOR DOLLINGER:    This, as I

                 understand it, is an amendment to the State

                 Finance Law.  Why is this law contingent upon

                 the passage of the amendment that we just

                 approved in this house over the objection of

                 the Democratic Minority?

                            Why not make this bill

                 freestanding, eliminate any references to that

                 constitutional amendment?  Why don't we just

                 take these reforms that you talk about, and

                 properly praise joint conference committees,

                 bumping back the date.  Let's put it into law

                 now.  Why wait for the people to pass a

                 constitutional amendment which may not pass

                 and this law might never take effect?

                            SENATOR STAFFORD:    I'm advised,





                                                          2785



                 of course, this is our package.  I was going

                 to say this is our loaf.  And you never want a

                 half a loaf.  We think that both are

                 necessary.

                            We think this -- this is serious,

                 and I don't mean to be light here, because

                 this is very serious.  It's something I'm very

                 concerned about.  Because when I get home,

                 back in my area, people go right to me and

                 explain that it's their position that this

                 type of legislation, this type of resolution

                 is needed and we have to get a mechanism

                 whereby we get a timely budget.

                            So I think both are necessary.

                            SENATOR DOLLINGER:    Thank you,

                 Mr. President.  On the bill briefly.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger, on the bill.

                            SENATOR DOLLINGER:    Senator

                 Stafford's comment that this is part of a

                 package is, in my opinion, an unnecessary

                 bundling of two concepts together.  We have

                 the bill that we just did a minute ago, the

                 concurrent resolution, which is a

                 constitutional amendment which many of us say





                                                          2786



                 will radically alter the balance of power

                 between the legislative branch and the

                 Executive branch.  In my judgment,

                 unfortunately so, if not devastatingly so for

                 this Legislature.

                            But this bill, which contains a

                 couple of good ingredients, is nonetheless

                 packaged hand in glove with that bill.

                 Because what it says is this bill will never

                 become law unless we pair it with a

                 constitutional amendment that, in my judgment,

                 denudes the legislative power, just takes it

                 right away from us.

                            My personal opinion is, Mr.

                 President, that this bill has merits as a

                 freestanding bill.  It talks about changing

                 the -- bumping back the date of the budget

                 passage.  I think that's a good idea.  Senator

                 Stafford is correct.  The interval between

                 January 27th, when the Governor makes his

                 formal presentation to the Legislature, and

                 the date we adopt the bill is among the

                 shortest in the states.  We could use the

                 extra time.

                            But even though that's a good





                                                          2787



                 benefit, and even though the conference

                 committees could be put into law, the problem

                 with this bill is it won't go into effect

                 until a constitutional amendment, which would

                 radically alter the balance of power between

                 the Legislature and the Executive, is adopted

                 by the voters.

                            I for one, Mr. President, will be

                 out vigorously opposing that amendment if it

                 ever gets to the ballot and trying to convince

                 people that taking away our power given to us

                 by the people in this State Constitution is a

                 bad idea for us to give it away to a Governor.

                            So for that reason, Mr.

                 President -- and I've voted for this a number

                 of times -- I'm going to vote against it,

                 because it shouldn't be linked to a

                 constitutional amendment which I don't think

                 will ever become law, and therefore the

                 changes, the reforms in this bill will not

                 become law.

                            If you want these reforms to become

                 law, if you want the good ideas contained in

                 this bill law, I would suggest to its sponsor,

                 Senator Bruno, come forth with an amendment,





                                                          2788



                 we'll waive the rules so that the amendment

                 doesn't require an agreement of consent or a

                 canvass of agreement, we'll waive the rules

                 and we'll allow a thumbs-up vote to strike the

                 enacting clause, make it effective 90 days

                 after it's passed by this house, 90 days after

                 it's passed by the other house and approved by

                 the Governor.

                            We don't need the people's

                 concurrence to cure our problems.  As I

                 explained earlier, political solutions are

                 available.  Embracing a full participation of

                 the Legislature will solve the problem of late

                 budgets.  Passing this bill into law without a

                 constitutional amendment will make sure that

                 we abide by our promises.

                            We're going down the right path.

                 This is the wrong vehicle to get there.  I

                 urge you to vote in the negative.

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.  If the sponsor would just

                 yield for one question.

                            ACTING PRESIDENT MEIER:    Senator





                                                          2789



                 Stafford, do you yield for a question?

                            SENATOR STAFFORD:    By all means.

                            ACTING PRESIDENT MEIER:    The

                 Senator yields.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            I agree with Senator Dollinger that

                 there are a lot of provisions in this

                 resolution that we would welcome if they were

                 in the form of a bill.  I'm curious as to how

                 you would expect the conference committees to

                 function in terms of estimates and revenue

                 forecasts.  Because you would, I gather, be

                 requiring people from different houses and

                 different parties to agree on something as to

                 which there have been very serious disputes

                 year after year.

                            SENATOR STAFFORD:    I of course

                 understand your question.  And you remember,

                 I'm sure, on the banks of the Charles you

                 learned about the reasonable man.  Do you

                 remember torts when -

                            SENATOR SCHNEIDERMAN:    I have a

                 reliable recollection of the reasonable man.

                 It's faded since I've been here.

                            SENATOR STAFFORD:    I've noticed





                                                          2790



                 that.

                            (Laughter.)

                            SENATOR STAFFORD:    Now, let me

                 point out that when you have a reasonable

                 man -- reasonable person, excuse me.  And I'm

                 sure in law school now it's taught as a

                 reasonable person, and there's a debate on

                 what a reasonable person is and what are the

                 parameters.  It takes a reasonable group of

                 people in the Assembly and in the Senate to

                 sit down -- and remember what I said about

                 hammering out decisions on the anvil of

                 discussion and reason.  That has to be done.

                 It has to be done in this legislation.

                            And if someone will not sit down

                 and discuss, in order for us to use that

                 anvil, then it is very difficult.  We are

                 willing to sit down here in the Majority, here

                 in the Senate.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Mr. President, I just have a follow-up.

                            ACTING PRESIDENT MEIER:    Senator

                 Stafford, do you continue to yield?

                            SENATOR STAFFORD:    Oh, yes.

                            ACTING PRESIDENT MEIER:    The





                                                          2791



                 Senator yields.

                            SENATOR SCHNEIDERMAN:    I guess my

                 concern is, wouldn't you just be transferring

                 this period of gridlock or unreasonableness or

                 posturing or whatever you choose to call it -

                 and it sounds as though we're all in agreement

                 on the principles, that we may have

                 differences as to their application.

                            But wouldn't you just be

                 transferring that difficulty into this

                 conference committee?  Wouldn't the same

                 gridlock be possible but at the level now of

                 the conference committee?

                            SENATOR STAFFORD:    I would

                 suggest, as has been the case here a number of

                 times in the last few weeks, you answered your

                 question within your question.  Because you

                 used the word "unreasonable."

                            If you have reasonable people who

                 will sit down and discuss, then this

                 legislation will work, no question about it.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.  On the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Schneiderman, on the bill.





                                                          2792



                            SENATOR SCHNEIDERMAN:    I thank

                 the Senator for his responses, his guidance,

                 the loaf, the anvil, the river and its source.

                 And I certainly would urge him that there are

                 stand-up clubs in my district that you would

                 really blow out should you choose to pursue

                 that sort of a career.

                            I think that the difficulty I have

                 with this legislation is that given what we

                 perceive to be political differences or

                 unreasonableness or however we define them,

                 I'm not sure that this provides the necessary

                 incentive to force those who may be

                 unreasonable to become more reasonable.  And I

                 do think it probably represents an improvement

                 over the current situation, but I think the

                 fundamental problem still is a political

                 problem, that we are only as reasonable as the

                 voters make us.

                            And that's why opening the process,

                 televising the proceedings, letting in some

                 sunshine to this process is essential for us

                 all.  And I commend the Senator for a good

                 piece of legislation, were it a bill.  I have

                 to concur in Senator Dollinger's comment that





                                                          2793



                 tying this to a resolution that will never

                 pass I think is unfortunate, and I hope that

                 it will get a fresh look and that, if we're

                 serious about these reforms in this house,

                 that we will try it as a bill.

                            Because that way we may be able to

                 get a portion of the loaf from the other

                 house.  And a portion of a loaf is not as good

                 as a whole loaf, but it's certainly something

                 for us to snack on as the summer winds into

                 the fall and we're lounging on the banks of

                 the river that cannot rise, waiting for a

                 budget.

                            SENATOR STAFFORD:    Thank you.

                            Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Stafford.

                            SENATOR STAFFORD:    Speaking of

                 stand-up clubs, we don't have those where I

                 come from.  We have sit-down clubs.  But

                 you're welcome to come anytime.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Mr. President.

                            ACTING PRESIDENT MEIER:    Senator

                 Malcolm Smith.





                                                          2794



                            SENATOR MALCOLM SMITH:    Mr.

                 President, through you, would the sponsor

                 yield for one question?

                            ACTING PRESIDENT MEIER:    Senator

                 Stafford, do you yield for a question?

                            SENATOR STAFFORD:    Yes.

                            ACTING PRESIDENT MEIER:    The

                 sponsor yields.

                            SENATOR MALCOLM SMITH:    Thank

                 you, Mr. President.

                            Senator Stafford, the bill talks

                 about, in absence of a forecast by the

                 legislative branch by a particular date, that

                 the Comptroller will then be the one to

                 provide that forecast.

                            SENATOR STAFFORD:    Right.

                            SENATOR MALCOLM SMITH:    Would the

                 Comptroller himself be the only one, and his

                 staff, involved in that process, or would he

                 involve any of the legislative staff in terms

                 of providing that forecast?

                            SENATOR STAFFORD:    Well, I'm sure

                 that the Comptroller and his staff would take

                 into consideration what both the Assembly and

                 Senate had suggested.  But to make a final





                                                          2795



                 determination, the Comptroller -- in this

                 legislation, the buck would stop there, and he

                 would make -- he or she, excuse me, would make

                 the decision.

                            SENATOR MALCOLM SMITH:    Thank you

                 very much, Mr. President.  On the bill.

                            ACTING PRESIDENT MEIER:    Senator

                 Malcolm Smith, on the bill.

                            SENATOR MALCOLM SMITH:

                 Notwithstanding any comments about the bill

                 being attached to an amendment, I think this

                 is a particular resolution in the right

                 direction.  I believe that moving the bill

                 back is a start.

                            From a business standpoint, you're

                 absolutely right in your analogy as to how

                 high and how far and the limits thereof.  And

                 notwithstanding the fact that if we have

                 difficulty in getting to a point that you now

                 involve the Comptroller, clearly that means

                 you're bringing a third party in, or a fourth

                 party in, and that's opening up the process.

                 And I think that's a direction in which we

                 want to head.

                            I would urge my colleagues,





                                                          2796



                 notwithstanding, again, Senator Dollinger's

                 reference to the attachment to an amendment,

                 but it is a step in the right direction.  And

                 perhaps if we can pass this and perhaps maybe

                 send it over to the other side, we can begin

                 to lobby them as well and start the process of

                 opening the entire process up so we can get to

                 a point where all is involved, conference

                 committee notwithstanding, to get to an

                 appropriate budget at an appropriate time.

                            ACTING PRESIDENT MEIER:    Read the

                 last section.

                            THE SECRETARY:    Section 11.  This

                 act shall take effect -

                            SENATOR DOLLINGER:    Mr.

                 President.

                            ACTING PRESIDENT MEIER:    Senator

                 Dollinger, why do you rise?

                            SENATOR DOLLINGER:    With all due

                 respect, Mr. President, I mean, we had talked

                 about this yesterday with respect to the end

                 of the debate.

                            ACTING PRESIDENT MEIER:    Do you

                 have a point of order to make, Senator?

                            SENATOR DOLLINGER:    Yes, I do,





                                                          2797



                 Mr. President.  I'd simply -

                            ACTING PRESIDENT MEIER:    Would

                 you like me to ask if any other Senator would

                 like to be recognized on the bill?  Because

                 I'm willing to do that, Senator.

                            SENATOR DOLLINGER:    Thank you,

                 Mr. President.

                            ACTING PRESIDENT MEIER:    Could we

                 settle it that way?  Deal.

                            Okay.  Does any other Senator wish

                 to be heard on this bill?  Going once, twice.

                            Hearing none, read the last

                 section.

                            THE SECRETARY:    Section 11.  This

                 act shall take effect upon the effective date

                 of the amendments to the constitution

                 contained in a concurrent resolution.

                            ACTING PRESIDENT MEIER:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 167 are

                 Senators Dollinger, Duane, Espada, Gonzalez,

                 Hassell-Thompson, Montgomery, and

                 Schneiderman.  Ayes, 52.  Nays, 7.





                                                          2798



                            ACTING PRESIDENT MEIER:    The bill

                 is passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 if we could return to reports of standing

                 committees, I believe there's a report of the

                 Finance Committee at the desk.  I ask that be

                 it read.

                            ACTING PRESIDENT MEIER:    Reports

                 of standing committees.

                            The Secretary will read.

                            THE SECRETARY:    Senator Stafford,

                 from the Committee on Finance, reports the

                 following bills:

                            Senate Print 3631, by Senator

                 Alesi, an act in relation to redistributing;

                 3711, by Senator Leibell, an act to amend the

                 Executive Law and the State Finance Law; 3712,

                 by Senator Leibell, an act to amend the

                 Executive Law and the State Finance Law; and

                 3713, by Senator Leibell, an act to amend the

                 Executive Law.

                            All bills ordered direct to third

                 reading.

                            ACTING PRESIDENT MEIER:    All





                                                          2799



                 bills ordered directly to third reading.

                            Senator Skelos.

                            SENATOR SKELOS:    Mr. President,

                 is there any housekeeping at the desk?

                            ACTING PRESIDENT MEIER:    No,

                 there is not, Senator.

                            SENATOR SKELOS:    There being no

                 further business, I move we adjourn until

                 Wednesday, March 21st, at 11 a.m.

                            ACTING PRESIDENT MEIER:    On

                 motion, the Senate stands adjourned until

                 Wednesday, March 21st, at 11:00 a.m.

                            (Whereupon, at 5:45 p.m., the

                 Senate adjourned.)