Regular Session - April 7, 2003

    

 
                                                        1648



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                               April 7, 2003

                                 3:24 p.m.





                              REGULAR SESSION







            LT. GOVERNOR MARY O. DONOHUE, President

            STEVEN M. BOGGESS, Secretary















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                           P R O C E E D I N G S

                            THE PRESIDENT:    The Senate will

                 please come to order.

                            I ask everyone present to please

                 rise and repeat with me the Pledge of

                 Allegiance.

                            (Whereupon, the assemblage recited

                 the Pledge of Allegiance to the Flag.)

                            THE PRESIDENT:    In the absence of

                 clergy, may we bow our heads in a moment of

                 silence, please.

                            (Whereupon, the assemblage

                 respected a moment of silence.)

                            THE PRESIDENT:    Reading of the

                 Journal.

                            THE SECRETARY:    In Senate,

                 Friday, April 4, the Senate met pursuant to

                 adjournment.  The Journal of Thursday,

                 April 3, was read and approved.  On motion,

                 Senate adjourned.

                            THE PRESIDENT:    Without

                 objection, the Journal stands approved as

                 read.

                            Presentation of petitions.

                            Messages from the Assembly.



                                                        1650



                            Messages from the Governor.

                            Reports of standing committees.

                            Reports of select committees.

                            Communications and reports from

                 state officers.

                            Motions and resolutions.

                            Senator Meier.

                            SENATOR MEIER:    Thank you, Madam

                 President.

                            On behalf of Senator Skelos, on

                 page number 11 I offer the following

                 amendments to Calendar Number 101, Senate

                 Print 1023, and ask that said bill retain its

                 place on the Third Reading Calendar.

                            THE PRESIDENT:    The amendments

                 are received, and the bill will retain its

                 place on the Third Reading Calendar.

                            Senator Meier.

                            SENATOR MEIER:    Thank you, Madam

                 President.

                            On page 14, also on behalf of

                 Senator Skelos, I offer the following

                 amendments to Calendar Number 155, Senate

                 Print Number 1735A, and ask that said bill

                 retain its place on the Third Reading



                                                        1651



                 Calendar.

                            THE PRESIDENT:    Those amendments

                 are also received, Senator, and the bill will

                 retain its place on the Third Reading

                 Calendar.

                            Senator Skelos.

                            SENATOR SKELOS:    Thank you,

                 Senator Meier.

                            Madam President, there will be an

                 immediate meeting of the Finance Committee in

                 the Majority Conference Room.

                            THE PRESIDENT:    There will be an

                 immediate meeting of the Finance Committee in

                 the Majority Conference Room.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 there are a series of privileged resolutions

                 at the desk by Senator Saland.  If we could

                 have the title read on each privileged

                 resolution and then move to adopt all of them

                 at once.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    By Senator

                 Saland, Legislative Resolution Number 1088,



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                 honoring Phil Miller upon the occasion of his

                 designation as recipient of the Public Health

                 Partnership Award by the Dutchess County

                 Department of Health.

                            By Senator Saland, Legislative

                 Resolution Number 1089, honoring Ron Osofsky

                 upon the occasion of his designation as

                 recipient of the Public Health Partnership

                 Award by the Dutchess County Department of

                 Health.

                            By Senator Saland, Legislative

                 Resolution Number 1090, honoring Hudson River

                 Community Health at Beacon upon the occasion

                 of its designation as recipient of the Public

                 Health Partnership Award by the Dutchess

                 County Department of Health.

                            By Senator Saland, Legislative

                 Resolution 1091, honoring Barbara Gross upon

                 the occasion of her designation as recipient

                 of the Public Health Partnership Award by the

                 Dutchess County Department of Health.

                            By Senator Saland, Legislative

                 Resolution Number 1092, honoring Dr. Ronald

                 Lipp upon the occasion of his designation as

                 recipient of the Public Health Partnership



                                                        1653



                 Award by the Dutchess County Department of

                 Health.

                            And by Senator Saland, Legislative

                 Resolution Number 1093, honoring Bill Browne

                 upon the occasion of his designation as

                 recipient of the Public Health Partnership

                 Award by the Dutchess County Department of

                 Health.

                            THE PRESIDENT:    The question is

                 on the resolutions.  All in favor please

                 signify by saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The resolutions

                 are adopted.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could go to the noncontroversial reading

                 of the calendar.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 100, by Senator Skelos, Senate Print 556, an

                 act to amend the Family Court Act and the



                                                        1654



                 Criminal Procedure Law, in relation to the age

                 of child witnesses.

                            THE PRESIDENT:    Read 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, 44.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 162, by Senator Rath, Senate Print 1679, an

                 act to amend the Education Law and the General

                 Municipal Law, in relation to deleting the

                 requirement.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 45.

                            THE PRESIDENT:    The bill is

                 passed.



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                            THE SECRETARY:    Calendar Number

                 198, by Senator Marchi, Senate Print 1970 --

                            SENATOR SKELOS:    Lay it aside for

                 the day.

                            THE PRESIDENT:    The bill is laid

                 aside for the day.

                            THE SECRETARY:    Calendar Number

                 204, by Senator Farley, Senate Print 2264, an

                 act to amend the Banking Law, in relation to

                 the confidentiality of records.

                            THE PRESIDENT:    Read 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, 46.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 217, by Senator Kuhl, Senate Print 743, an act

                 to amend the Agriculture and Markets Law and

                 the Vehicle and Traffic Law, in relation to

                 exempting farm vehicles.

                            SENATOR SCHNEIDERMAN:    Lay it



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                 aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 242, by Senator Skelos, Senate Print 549, an

                 act to amend the Executive Law, in relation to

                 permitting parents of minors to be present.

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 271, by Senator Rath, Senate Print 1685, an

                 act to amend the Penal Law, in relation to

                 repeat offender status for petit larceny

                 offenses.

                            SENATOR SCHNEIDERMAN:    Lay it

                 aside.

                            THE PRESIDENT:    The bill is laid

                 aside.

                            THE SECRETARY:    Calendar Number

                 274, by Senator Saland, Senate Print 1914, an

                 act to amend the Criminal Procedure Law, in

                 relation to expanding the offenses.

                            THE PRESIDENT:    Read the last



                                                        1657



                 section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the first of the

                 calendar month next succeeding.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 49.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 275, by Senator Saland, Senate Print 1915, an

                 act to amend the Criminal Procedure Law, in

                 relation to authorizing child witnesses to

                 testify.

                            THE PRESIDENT:    Read 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, 49.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 272, by Senator Volker, Senate Print 1891, an



                                                        1658



                 act to amend the Penal Law, in relation to

                 establishing the crimes of assaulting a child

                 in the first and second degree.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 4.  This

                 act shall take effect on the first of

                 November.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 49.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 276, by Senator Trunzo, Senate Print 2259, an

                 act to amend the Penal Law, in relation to the

                 unlawful sale of tobacco products to a child.

                            THE PRESIDENT:    Read 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, 49.

                            THE PRESIDENT:    The bill is



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                 passed.

                            Senator Skelos, that completes the

                 reading of the noncontroversial calendar.

                            SENATOR SKELOS:    Thank you, Madam

                 President.  If we could go to the

                 controversial reading of the calendar.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 217, by Senator Kuhl, Senate Print 743, an act

                 to amend the Agriculture and Markets Law and

                 the Vehicle and Traffic Law, in relation to

                 exempting certain farm vehicles.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            THE PRESIDENT:    Senator Kuhl, an

                 explanation has been requested.

                            SENATOR KUHL:    Yes, Madam

                 President.  This is a very simple bill.  It

                 simply exempts farm-plated vehicles from a

                 motor vehicle indemnification act which was

                 passed by this house in 1994.

                            THE PRESIDENT:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Through



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                 you, Madam President, if the sponsor will

                 yield for a few brief questions.

                            THE PRESIDENT:    Senator Kuhl,

                 will you yield for a question?

                            SENATOR KUHL:    I'd be happy to

                 yield to a question.

                            THE PRESIDENT:    You may proceed,

                 Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            Through you, Madam President, is it

                 not true that this law would result in farm

                 vehicles whose owners do not carry umbrella

                 policies or whose umbrella policies carry

                 exclusions from liability for farm vehicle

                 accidents, that these vehicles would end up

                 with no insurance coverage at all?

                            SENATOR KUHL:    Senator, this bill

                 would put the farmer in the position he was in

                 prior to 1994 ever since the existence of

                 automobiles.

                            SENATOR SCHNEIDERMAN:    Through

                 you, Madam President, if the sponsor would

                 continue to yield.

                            THE PRESIDENT:    Senator, do you

                 continue to yield?



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                            SENATOR KUHL:    I'd be happy to

                 yield to another question.

                            THE PRESIDENT:    You may proceed

                 with a question, Senator.

                            SENATOR SCHNEIDERMAN:    But

                 lacking, perhaps, some of the historical

                 references, is it not the case that this

                 legislation would result in some farm vehicles

                 having no insurance coverage for accidents

                 whatsoever?

                            SENATOR KUHL:    I can't answer

                 that question with any factual basis, because

                 I don't have the experience of how many

                 vehicles are insured or were insured prior to

                 1994 or are today, Senator.

                            SENATOR SCHNEIDERMAN:    Thank you.

                 Thank the sponsor for his answers.

                            Madam President, on the bill.

                            THE PRESIDENT:    You may proceed,

                 Senator, on the bill.

                            SENATOR SCHNEIDERMAN:    I think

                 that as I read this legislation, while we

                 don't have statistics, the implications are

                 very, very clear.  There is no requirement

                 that farm vehicles limit their travels to



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                 off-road activity.  Farm vehicles are on the

                 road quite a bit.  Many of us pass them or

                 attempt to pass them every week or every

                 month.

                            This legislation would exempt an

                 entire category of vehicles that travel

                 frequently on New York's roads from the

                 requirement that they have insurance coverage

                 as every other vehicle has to have insurance

                 coverage.

                            The reason for my questions were

                 that it has been suggested by some of the

                 supporters of this bill that farm vehicles are

                 typically covered for liability purposes under

                 umbrella policies carried by farms to insure

                 tractors and other farm equipment.

                            However, there is no requirement in

                 law that those policies insure all farm

                 vehicles.  Furthermore, there's no requirement

                 in law that every farm have such an umbrella

                 policy.  So what we're faced with is a

                 loophole to a series of laws which are

                 designed to protect innocent New Yorkers who

                 may be injured in an accident with a vehicle.

                            What we end up with is a loophole



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                 that anything that is categorized as a farm

                 vehicle, even if it's riding out in the middle

                 of a public road, even if the farmer's son and

                 his friends end up taking off with the car on

                 sort of a joyride and injure someone, there

                 would be no requirement of insurance coverage.

                            It's true that many vehicles would

                 have insurance, because many farmers do carry

                 the umbrella policies that the proponents have

                 been speaking about.  But there are many who

                 do not.

                            There's no reason to pass a law

                 like this with these loopholes.  Innocent

                 victims of automobile accidents should not

                 have to resort to the long, drawn-out

                 procedures to attempt to deal with

                 bankruptcies and other things.  We have a

                 structure in place in this state to provide

                 insurance coverage.  We require insurance

                 coverage for everyone else.  Every other type

                 of business that has vehicles that operate on

                 the roads that could have an accident, injure

                 an innocent person, is required to insure

                 their vehicles.

                            This law is an exception.  And with



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                 all respect to all of the farmers who work

                 very hard and need support in various ways,

                 the way for us as a Legislature to give them

                 support is not to create a loophole in a law

                 that's designed to protect innocent

                 New Yorkers.  Let's find another way.

                            If we're going to pass a law that

                 treats farm vehicles differently, let's

                 require umbrella policies or some other

                 provision that will guarantee that innocent

                 victims of automobile accidents -- whether

                 they be SUVs, tractors, trucks, or any other

                 type of vehicle with a farm plate on it -- are

                 protected and provide the same justice that

                 they're entitled to when any other vehicle in

                 this state causes the accident.

                            I'm going to vote no, Your Honor,

                 and I -- Your Honor?  Excuse me, Madam

                 President -- and I encourage everyone else to

                 vote no.

                            THE PRESIDENT:    Thank you,

                 Senator.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the 60th day.



                                                        1665



                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 217 are

                 Senators Andrews, Dilan, L. Krueger, Onorato,

                 Paterson, Sabini, Schneiderman.  Also Senator

                 Sampson.  Also Senator Parker.  Also Senator

                 Lachman.  Ayes, 44.  Nays, 10.

                            THE PRESIDENT:    The bill is

                 passed.

                            THE SECRETARY:    Calendar Number

                 242, by Senator Skelos, Senate Print 549, an

                 act to amend the Executive Law, in relation to

                 permitting parents of minors to be present.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            THE PRESIDENT:    Senator Skelos,

                 an explanation has been requested.

                            SENATOR SKELOS:    Thank you, Madam

                 President.

                            This legislation would require that

                 parents or guardians of a minor who is a

                 victim in a sexual harassment incident should

                 be informed of any proceeding and be allowed

                 to attend.



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                            THE PRESIDENT:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  On the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            I appreciate the sponsor's efforts

                 to deal with a very difficult situation, which

                 is providing security and comfort for children

                 who come forward with charges of sexual

                 harassment, and to provide for the involvement

                 of the parents.

                            I have a concern that the bill as

                 drafted has a flaw which I think could be

                 corrected by revising the language.  And the

                 flaw essentially is this.  This bill requires

                 that whenever a minor comes forward with

                 charges of sexual harassment, alleges that

                 they're aggrieved by an unlawful

                 discriminatory practice involving sexual

                 harassment, that the parents be notified and

                 that they be permitted to be present at all

                 times during any official proceedings relating

                 to that charge.



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                            The difficulty is this.  We know

                 that most sexual harassment of young people

                 doesn't happen with strangers, it happens with

                 people who are known to them, who are familiar

                 to them, and in many cases they very well may

                 be close friends or even relatives of the

                 parents.

                            So my suggestion is this.  I think

                 the bill as drafted really leaves open the

                 possibility that, contrary to the clear intent

                 of the legislation, this could provide for

                 further intimidation of a young person making

                 an allegation by requiring and -- providing no

                 escape clause for any tribunal requiring that

                 a parent be present at the proceedings related

                 to that charge.

                            So I am going -- I have requested

                 that we attempt to come up, since I don't want

                 to be critical without offering suggestions,

                 come up with some language to address this

                 issue, and I will be passing it along to the

                 sponsor.  This is a very serious attempt to

                 deal with a very difficult problem.  Subject

                 to that caveat, I think we should move forward

                 to pass legislation addressing this problem



                                                        1668



                 this session.

                            Thank you, Madam President.

                            THE PRESIDENT:    Does any other

                 member wish to be heard?

                            Senator Diaz.

                            SENATOR DIAZ:    Thank you, Madam

                 President.  For so long --

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator.

                            SENATOR DIAZ:    On the bill, I'm

                 sorry.

                            THE PRESIDENT:    Go ahead.

                            SENATOR DIAZ:    For so long we

                 have taken away the parents' right to their

                 children.  For so long we have been dividing

                 the family and making the children feel like

                 they are alone in this world.  For so long we

                 have ignored the parents.  We have been taking

                 little by little that sense of family and that

                 sense of responsibility from parents and

                 children.

                            And I think that this bill gives

                 back to the parents something that has been

                 taken from them.  This is a very important and

                 very, very essential bill, and we should all



                                                        1669



                 vote for it.  Parents should be part of

                 whatever happens to their children.  If their

                 children have been abused or their children

                 have been interrogated, their children are

                 being questioned, the parent should be there.

                            And, Senator Skelos, I am very

                 proud that you present this bill, and I will

                 proudly vote for it.

                            THE PRESIDENT:    Does any other

                 member wish to be heard on this bill?

                            Then the debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect on the 30th day.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE PRESIDENT:    Senator Duane, to

                 explain your vote?

                            SENATOR DUANE:    Yes, thank you,

                 Madam President.

                            THE PRESIDENT:    You're welcome.

                            SENATOR DUANE:    I'm voting no on

                 this bill again.  As I've raised in the past,

                 I absolutely think that the minor should be

                 allowed to bring whatever or whoever the adult



                                                        1670



                 that they wish at a proceeding.

                            And I certainly think that there

                 should be an adult present, but I think that

                 the adult should be up to the minor's choice,

                 particularly since there are minors who may

                 not have a parent but may have a foster parent

                 or a noncustodial parent but the legal custody

                 of the child may not be as definite.

                            I also think that if a child wants

                 to bring a counselor in, that should be

                 acceptable as well.

                            So I'm going to vote no again this

                 year on it, in the hope -- with the hope that

                 the bill will be amended in the future to

                 include having an adult of the minor's choice.

                            Thank you, Madam President.

                            THE PRESIDENT:    You will be

                 recorded as voting in the negative, Senator

                 Duane.

                            Senator Montgomery, to explain your

                 vote?

                            SENATOR MONTGOMERY:    Yes, Madam

                 President, to explain my vote.

                            I'm voting no, as I have in the

                 past on this legislation.  Because while I



                                                        1671



                 certainly respect and value the presence and

                 support of parents in any proceeding with a

                 young child, in cases of sexual abuse in

                 particular it is very often a family member

                 who has been involved in this kind of

                 activity, and very often it is a close

                 relative.

                            And so I think in order to protect

                 the integrity of the proceeding as it relates

                 to the child and the child's right to have an

                 opportunity to testify without being

                 intimidated by a parent or the presence of

                 someone very close, I think that I'm voting in

                 favor of the child's right, and I'm going to

                 vote no on this legislation.

                            THE PRESIDENT:    You will be

                 recorded as voting in the negative, Senator.

                            Senator Hassell-Thompson, to

                 explain your vote?

                            SENATOR HASSELL-THOMPSON:    Yes,

                 thank you, Madam President.

                            I have continued to vote yes on

                 this bill only because I have some major

                 concerns about the relationship of parents and

                 children.  But I also feel that I'd like to



                                                        1672



                 hope that we would amend this bill at some

                 point that would allow a greater latitude of

                 choice for minors to choose who that adult

                 would be.

                            But to this point I have a major

                 concern that the rights of children are not

                 always as well protected as they need to be in

                 the absence of parents.

                            Thank you.

                            THE PRESIDENT:    Does any other

                 member wish to be heard to announce their

                 vote?

                            The Secretary will announce the

                 results.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 242 are

                 Senators Duane, Montgomery, and Schneiderman.

                 Ayes, 55.  Nays, 3.

                            THE PRESIDENT:    The bill is

                 passed.

                            Senator Breslin.

                            SENATOR BRESLIN:    Madam

                 President, I would request unanimous consent

                 to be recorded in the negative on Calendar

                 Number 217, Senate 743.



                                                        1673



                            THE PRESIDENT:    Hearing no

                 objection, you will be recorded as voting in

                 the negative, Senator.

                            Senator DeFrancisco.

                            SENATOR DeFRANCISCO:    I also

                 request unanimous consent to be recorded in

                 the negative on Calendar 217, Senate Print

                 743.

                            THE PRESIDENT:    You will be so

                 recorded as voting in the negative, Senator.

                            Senator Duane.

                            SENATOR DUANE:    Thank you, Madam

                 President.

                            I was out of the chamber in a

                 Finance Committee meeting when Calendar Number

                 217 was debated.  And in previous years, I've

                 been an active participant in the debate on

                 that.  And I think it is pathetic that we rush

                 through the active list while Finance is

                 meeting when in fact our major job right now

                 should be to do a budget.

                            So actually, the Finance issues

                 before us are the most important ones.  And --

                            THE PRESIDENT:    Senator Duane, do

                 you wish to change your vote or to be recorded



                                                        1674



                 as voting in a certain way?

                            SENATOR DUANE:    Well, I guess I

                 would be changing my vote.  Because,

                 ridiculously, you have to be present to vote

                 no, as opposed to you're recorded as "yes" if

                 you're not in the chamber when you're in,

                 like, a Finance Committee meeting.

                            But yes, I'm voting no on 217, with

                 unanimous consent.

                            THE PRESIDENT:    All right.

                 Hearing no objection, you will be so recorded

                 as voting in the negative.

                            Senator Montgomery.

                            SENATOR MONTGOMERY:    Yes, Madam

                 President, I would like unanimous consent to

                 be recorded in the negative on Calendar 217.

                            THE PRESIDENT:    Hearing no

                 objection, you will be so recorded as voting

                 in the negative.

                            The Secretary will continue to

                 read.

                            THE SECRETARY:    Calendar Number

                 271, by Senator Rath, Senate Print 1685, an

                 act to amend the Penal Law, in relation to

                 repeat offender status for petit larceny



                                                        1675



                 offenses.

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            THE PRESIDENT:    Senator Rath, an

                 explanation has been requested.

                            SENATOR RATH:    Madam President,

                 this bill is a fairly simple bill.  It deals

                 with repeat offenders of the petit -- crime of

                 petit larceny.

                            Right now, no matter how many times

                 you're convicted, you will still only have a

                 misdemeanor.  This bill provides that if you

                 have been convicted twice in five years, it

                 will become a Class E felony.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect --

                            THE PRESIDENT:    Senator

                 Montgomery.

                            SENATOR MONTGOMERY:    Yes, Madam

                 President.  I would like to ask a question of

                 Senator Rath.

                            THE PRESIDENT:    Senator Rath,

                 will you yield for a question?



                                                        1676



                            SENATOR RATH:    Surely.

                            THE PRESIDENT:    You may proceed,

                 Senator Montgomery, with a question.

                            SENATOR MONTGOMERY:    Thank you,

                 Madam President.

                            Senator Rath, I'm just trying to

                 decipher the meaning of this.  Is this -- this

                 fits into the code as it stands now?

                            SENATOR RATH:    Yes.  Yes, it

                 does.

                            SENATOR MONTGOMERY:    And it

                 covers any age from 16 and up?

                            SENATOR RATH:    Right.

                            SENATOR MONTGOMERY:    Okay.  Thank

                 you.

                            THE PRESIDENT:    Does any other

                 member wish to be heard on this bill?

                            Then the debate is closed.

                            Read the last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect on the first of

                 November.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 56.  Nays,



                                                        1677



                 2.  Senators Duane and Montgomery recorded in

                 the negative.

                            THE PRESIDENT:    The bill is

                 passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam 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 it

                 be read.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Senator Johnson,

                 from the Committee on Finance, reports the

                 following bills:

                            Senate Print 3935, by the Senate

                 Committee on Rules, an act making

                 appropriations for the support of government;

                            And Senate Print 3936, by the

                 Senate Committee on Rules, an act to amend the

                 Executive Law.

                            Both bills ordered direct to third

                 reading.

                            THE PRESIDENT:    Without

                 objection, the bills are reported direct to



                                                        1678



                 third reading.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could call up Calendar Number 404 at

                 this time.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Calendar Number

                 404, by the Senate Committee on Rules,

                 Senate Print Number 3935, an act making

                 appropriations for the support of government

                 and to amend Chapter 17 of the Laws of 2003.

                            THE PRESIDENT:    Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 is there a message of necessity and

                 appropriation at the desk?

                            THE PRESIDENT:    Yes, there is,

                 Senator.

                            SENATOR SKELOS:    Move to accept.

                            THE PRESIDENT:    All those in

                 favor of accepting the message of necessity

                 and appropriation please signify by saying

                 aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.



                                                        1679



                            (No response.)

                            THE PRESIDENT:    The message of

                 necessity and appropriation is accepted.

                            Read the last section.

                            THE SECRETARY:    Section 15.  This

                 act shall take effect --

                            SENATOR SCHNEIDERMAN:

                 Explanation.

                            THE PRESIDENT:    Senator Johnson,

                 an explanation has been requested.

                            SENATOR JOHNSON:    Yes, Madam

                 President.

                            This bill appropriates

                 approximately $1 billion to various agencies

                 to pay the bills for the week ending next

                 Sunday, from now till next Sunday.  It covers

                 all the agencies, including the payroll of

                 your staff and other staffs, capital

                 construction that's still going on.

                            New York City MAC gets $64 million

                 of sales tax revenue to them to keep the city

                 going.  There's 400 million for -- well,

                 600 million, actually, in federal and state

                 funds for Medicaid, and Department of Labor

                 uninsurance -- $95 million for unemployment



                                                        1680



                 insurance coverage.

                            So it just pays the bills that have

                 to be paid for this coming week.  And I

                 appreciate you all supporting it.

                            Thank you.

                            THE PRESIDENT:    Senator Breslin.

                            SENATOR BRESLIN:    Madam

                 President, if the sponsor would yield for a

                 couple of questions.

                            THE PRESIDENT:    Senator Johnson,

                 will you yield for a question?

                            SENATOR JOHNSON:    Yes, Madam

                 President.

                            THE PRESIDENT:    Senator Breslin,

                 you may proceed with a question.

                            SENATOR BRESLIN:    Through you,

                 Madam President, I'm not concerned so much

                 with what's in the bill but what isn't in the

                 bill.  And I was wondering if there's been any

                 withholding of school aid to the school

                 districts in the State of New York.

                            SENATOR JOHNSON:    Senator, the

                 answer is no.  Last week we appropriated some

                 money that was allowed to be appropriated to

                 finish up the year 2002-2003.  There's no



                                                        1681



                 further payments required until June 1st.  So

                 therefore, there's no money in this bill for

                 education.

                            SENATOR BRESLIN:    Again through

                 you, Madam President, if the sponsor would

                 yield.

                            THE PRESIDENT:    Senator Johnson,

                 will you yield?

                            SENATOR JOHNSON:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR BRESLIN:    Relative to

                 past years, there appears to be a reduction of

                 $350,000 in annuities to blind veterans.  I

                 was wondering if you could speak on that.

                            SENATOR JOHNSON:    I guess it's

                 not an exact calendar parallel with last year,

                 because there are no payments due at this time

                 for blind veterans.  There will be in future

                 payments when it's appropriate.

                            Thank you.

                            SENATOR BRESLIN:    Again through

                 you, Madam President.

                            THE PRESIDENT:    Senator Johnson,



                                                        1682



                 will you yield for another question?

                            SENATOR JOHNSON:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR BRESLIN:    Then there are

                 no blind veterans who are now due and owing

                 any monies under the 2002-2003 budget?

                            SENATOR JOHNSON:    That's my

                 impression, Senator, yes.

                            SENATOR BRESLIN:    And again

                 through you, Madam President, if the sponsor

                 would yield.

                            THE PRESIDENT:    Senator, do you

                 yield?

                            SENATOR BRESLIN:    In the

                 2002-2003 budget, there appears to be

                 remaining, in payments of school aid,

                 $246 million which has not been passed in the

                 budgets for 2002-2003.  Can you tell us if

                 that's correct?

                            SENATOR JOHNSON:    I don't --

                 Senator, I'll try to answer this.  And maybe

                 I'll need an expert, but I understand that

                 last year we paid in advance the June 1st



                                                        1683



                 payment because the money was there and we

                 paid it in advance.

                            This year we're not paying that in

                 advance, but we will pay it when it's due,

                 which is June 1st.

                            SENATOR BRESLIN:    Again, through

                 you, Madam President, if the sponsor would

                 yield.

                            THE PRESIDENT:    Senator, you do

                 yield?

                            SENATOR JOHNSON:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR BRESLIN:    It would seem

                 to me there's an expectation on the school

                 districts to receive monies which, on an

                 ongoing basis, June 1st which they generally

                 receive.  And if you take that $246 million,

                 it comes out to over $142,000 a day that those

                 school districts would have to pay to borrow

                 money if they didn't receive it.  Would that

                 be correct?

                            SENATOR JOHNSON:    I suppose you

                 would expect -- or the districts would expect



                                                        1684



                 to receive the money the same time they did

                 last year.  But that was a discretionary

                 payment paid in advance because we had the

                 money.

                            Now we don't have the money, and

                 we're going to pay it June 1st.  And they

                 expect it then, they would get it then.

                            SENATOR BRESLIN:    On the bill,

                 Madam President.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator.

                            SENATOR BRESLIN:    I think the

                 example of the Governor supplying us with a

                 bill which -- wherein there's $246 million

                 which the school districts have expected in

                 the past that payment for June 1st and are now

                 not receiving -- which means that we further

                 burden our school districts and we further

                 burden them without our ability to come up

                 with a budget so they can make reliances on

                 our work and put a budget before the voters

                 that's fair.

                            And now we have a payment of

                 $246 million withheld, which creates the

                 distinct possibility that they'll have to go



                                                        1685



                 into the marketplace and borrow, which would

                 result in a payment of $142,000 a day in

                 interest.

                            And this is only an example of

                 what's been done in this budget that will

                 carry us along, penalizing those people who

                 are least able to afford it.

                            And in accordance with that, as

                 well as other areas in this budget, I intend

                 to vote against it.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator Smith.

                            SENATOR ADA SMITH:    Thank you,

                 Madam President.

                            In years past, I have voted for

                 these appropriations.  But when I turn on my

                 television set and I hear the Governor say

                 that he's too busy to negotiate a budget

                 because he's protecting New York State, well,

                 I didn't know that he was the only person in

                 the militia.  I didn't know that he was the

                 only person responsible for our safety.

                            Each and every one of us, on both

                 sides of the aisle, are prepared to work hard.

                 My colleagues on the other side have brought



                                                        1686



                 forth a budget.  They've worked trying to do

                 what is right by the people that they

                 represent.  Each of us on this side of the

                 aisle is willing to give all of the hours

                 necessary to meet our legal requirements.

                            I would ask that all of you join

                 with me in letting the Governor know that

                 we're not happy and that he should live up to

                 the responsibility of the office that he took

                 the oath to preserve.

                            And therefore, I will be voting no.

                            THE PRESIDENT:    Senator

                 Montgomery.

                            SENATOR MONTGOMERY:    Yes, Madam

                 President, I am going to vote no again this

                 week, as I did last week, on this budget --

                 not because I do not want our state to

                 continue doing business, but the process I

                 think that we have been engaging in at this

                 point in time as a budget process essentially

                 subverts the constitutional obligation that we

                 have as state government, as legislators and

                 governor, to pass a budget which fulfills the

                 needs and requirements and expectations of the

                 citizens of our state.



                                                        1687



                            It's a very disruptive process.

                 The localities and the counties around the

                 state cannot plan for their own local needs as

                 government.  The school districts across the

                 state are unable to plan.  We have a situation

                 where students at this point in time don't

                 know if they're going to be able to continue

                 with their college education.  Colleges and

                 universities and hospitals, all of these are

                 entities that depend on this process to plan

                 on behalf of citizens of our state.

                            And certainly one of the areas that

                 I care a lot about, as many of us do,

                 school-based health clinics are closing as we

                 fiddle over here in the State Legislature.

                 That provides health and mental health

                 services to young people in our state.

                            So if we say that we care about

                 what happens to young people, how they

                 respond, how they're able to cope with the

                 stress and problems related to 9/11 and the

                 war and so forth and so on, and we're allowing

                 the school-based health clinics to shut down

                 because we refuse to come to the table and

                 negotiate as adults -- the Governor refuses.



                                                        1688



                 I believe that the Legislature is ready to do

                 so.

                            This is a shameful moment for us in

                 our state, and it's a shameful moment for us

                 in the State Legislature.  And so I'm going to

                 continue to vote my objection to this process.

                            And I think that if we all would

                 agree to do that, we could hopefully shame the

                 Governor into coming to the table with Senator

                 Bruno and his conference and us and our

                 conference and the Assembly, Sheldon Silver

                 and his conference, we could all come together

                 and come to some agreement on how we are going

                 to resolve this situation.

                            So I'm voting no.  And hopefully,

                 if we all just bite the bullet as

                 legislators -- we're grownups.  Let's just say

                 no to the Governor.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator Onorato.

                            SENATOR ONORATO:    Madam

                 President, on the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill.

                            SENATOR ONORATO:    I plan on



                                                        1689



                 voting no again on this allotment.

                            And I really am very surprised at

                 the Governor for presenting this type of a

                 budget bill to us, for the lack of funding for

                 the organizations that are not included in the

                 bill.

                            Many of the organizations that are

                 not included in the bill right now are already

                 being cut in the Governor's proposal.  This,

                 by not including them, at least a partial

                 payment of the anticipated funds that are

                 going to come forward in the future, will

                 force them to start borrowing money.  But

                 there's no provisions in the budget to

                 reimburse any of our local communities from

                 borrowing the money and paying that interest.

                            For this particular reason, I

                 believe it is a very, very irresponsible,

                 partial budget to keep the state going.  I

                 vote -- I'm going to vote no.

                            THE PRESIDENT:    Senator Sabini.

                            SENATOR SABINI:    Thank you, Madam

                 President.  On the bill.

                            Once again we're faced with a

                 decision as to whether or not to pass these



                                                        1690



                 extenders.  And some might say it's

                 irresponsible not to do so, or at least not to

                 vote for it.  But we're left with little

                 choice if we want to express our frustration

                 with the way business is done in this

                 building.

                            And I don't fault the other side of

                 the aisle in this chamber.  There are some

                 that honestly want to work hard, and there's

                 been leadership on that side of the aisle and

                 certainly even attempts to reform the process

                 on that side of the aisle.

                            But by doing these extenders, we

                 once again sort of punt.  As Senator Ada Smith

                 said, I too am a little concerned about the

                 Governor's position on more important business

                 that he has to attend to.

                            But there's blame to go around on a

                 bipartisan level.  There's blame to go around

                 to interest groups that participate in this

                 process and in fact almost applaud this

                 process secretly, that they enjoy the fact

                 that we continue to, as a state government,

                 procrastinate and play-act.

                            If there's medicine to be doled out



                                                        1691



                 in this upcoming budget, and we all know

                 there's going to be medicine, we ought to

                 prescribe it now.  Otherwise, it's going to be

                 a harsher dosage later on.

                            It's unfair, as Senator Onorato

                 said, to the people in our communities to not

                 know where their programs are going to be.

                            The only people seemingly in this

                 state who think this is a workable, good

                 process are somehow wandering around the halls

                 of our mall, whether they be in the

                 Legislature, in the Governor's office, or in

                 the interest groups that applaud this process

                 of being delayed.

                            It's a bipartisan shame.  It's one

                 that the rest of the state has caught on to.

                 And it's about time that we say it's time to

                 stop.  Games are meant to be conducted in the

                 street and the playgrounds.  As I said last

                 week, kabuki plays belong back in Tokyo.  And

                 we ought to get real with the process.

                            The only way we can get real is by

                 facing up to our obligations and moving on

                 this.  And the only way we as legislators can

                 express that right now is by saying no to this



                                                        1692



                 extender.  And I intend to vote no.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  If the sponsor would yield

                 to a question.

                            THE PRESIDENT:    Senator, will you

                 yield for a question?

                            SENATOR JOHNSON:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  Through you.

                            Last week we did pass an extender

                 bill, although I voted against it.  And people

                 voted for it in order to continue government,

                 because we had failed to meet our obligation

                 to have a balanced budget by April 1st.  It's

                 one week later, and we're being asked to vote

                 on a second extender bill.

                            So my question to Senator Johnson

                 is, what progress did we make in the last week

                 on this emergency?

                            SENATOR JOHNSON:    We've made



                                                        1693



                 progress in paying the salaries of people

                 working for us and people working in all state

                 institutions.  We kept the process going.

                            The meetings have taken place

                 between both houses, trying to agree on

                 funding items and the revenue stream that

                 would therefore pay those bills.  And there's

                 no conclusion yet to those conversations.  But

                 we're keeping conversations going and hoping

                 that we will resolve it very soon.

                            SENATOR LIZ KRUEGER:    Madam

                 President, if, through you, the sponsor would

                 continue to yield.

                            THE PRESIDENT:    Senator Johnson,

                 will you yield?

                            SENATOR JOHNSON:    Yes, Madam

                 President.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Senator Johnson.  Thank you for your response.

                            Can you offer us some more detail?

                 I'm very concerned that we're now one week

                 into being late for the budget.  We are in an

                 emergency situation, as this is an emergency



                                                        1694



                 appropriation bill.  And we did not have any

                 discussion on the floor of this Senate or, as

                 I understand it, in the Finance Committee

                 meeting around the specific details of how we

                 are moving closer to resolving our deficit or

                 passing a balanced budget.

                            Are there actually details that

                 this Senate can discuss about the options

                 before us?

                            SENATOR JOHNSON:    Senator

                 Krueger, I think you're aware of the fact that

                 things have been taking place the last week or

                 two not beneficial to the borrowing scenario

                 which we had envisioned.  And therefore that

                 put a hole in the budget, and now people are

                 meeting -- and my committee has been meeting

                 daily and weekly, even with the committee in

                 the Assembly, trying to figure out what

                 resources we can corral in order to pay our

                 future bills and put a budget together.

                            And they still have not arrived at

                 a conclusion.  We're exploring all sorts of

                 methods of getting money, including the

                 possibility of taxes, including the

                 possibility of borrowing and so on and so on.



                                                        1695



                 But there's no conclusion yet.

                            And as you know, it is a three-way

                 discussion.  And the Governor is also playing

                 a role, contrary to what some people think

                 here, in these discussions.  But it's pretty

                 hard to dance with two guys at the same time,

                 you know, because you step on each other's

                 feet.  That's what's happening now.

                            But I think eventually we'll put it

                 together.  And everyone on this side of the

                 aisle certainly is just as eager as that side,

                 and is eager as really the Governor should be

                 to have a budget before too long.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  I'd like to speak on the

                 bill.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator.

                            SENATOR LIZ KRUEGER:    Thank you.

                            I appreciate Senator Johnson's

                 responses and his sincerity, I think, in

                 agreeing with us here on the Democratic side

                 when we object to the fact that we are now one

                 week into a new budget year and we have not

                 resolved the issues.



                                                        1696



                            In fact, he highlighted that we are

                 perhaps further away this week than we were a

                 week ago in being able to balance our budget,

                 particularly because of the movement or lack

                 thereof of decisions around tobacco

                 securitization and bonding out, borrowing of

                 money.

                            Nonetheless, it doesn't change the

                 reality for the people of the State of

                 New York who are desperate for us to pass a

                 balanced budget.  And I do object to the fact

                 that the weeks go on and we don't have the

                 discussions on the floor or even in committees

                 about what we could be doing.

                            I am glad to hear from Senator

                 Johnson that there are discussions around the

                 revenue side of the budget and that there are

                 discussions about the concept of taxes.

                 Because in fact I do believe that that is a

                 reality that we must face in this state.

                            But I would argue that as I am

                 disappointed that we have not had discussion

                 in this chamber about what we can be doing to

                 balance our budget and move forward because we

                 are in an emergency situation, I'm equally



                                                        1697



                 disturbed that we continue still not to

                 discuss a third part of the budget formula for

                 the state, the tax expenditure budget.

                            I hear vague references in the

                 newspapers about the idea of closing corporate

                 loopholes.  But I would argue that until we

                 also look at the third piece of the New York

                 State budget -- not just revenue, not just

                 expenditures, but also the decisions we make

                 not to look at our tax expenditure budget and

                 our tax code -- that we choose to ignore the

                 potential for billions of dollars of revenue

                 that this state desperately needs right now

                 and that could be drawn in a fair and an

                 equitable way from individuals and

                 corporations in the state.

                            I will vote no on this bill, as

                 much as I am desperate to help our communities

                 be assured that they have the money to

                 continue running their programs.  But as we

                 already heard from my colleagues, we don't

                 have the money for our local school districts,

                 and they will end up having to borrow money at

                 exorbitantly high rates to continue to pay for

                 their systems.



                                                        1698



                            We don't have the money going out

                 to community-based organizations and groups

                 who contract with the State of New York, to

                 reference what Senator Onorato highlighted

                 before.

                            But in fact it is worse that

                 Senator Onorato analyzed it, because not only

                 are organizations continuing to run programs

                 absent payment from the State of New York, as

                 of April 1st, for many of them, their decision

                 to continue to run their programs is a

                 gambling game.  Because if we do not continue

                 to put them into the budget when we pass it,

                 any monies they have expended to continue

                 their services for the people of New York will

                 be unreimbursable.  And that could put many of

                 them in a situation of fiscal deficit where

                 they go under because they expended money that

                 the State of New York then chooses not to

                 allot to them.

                            So it is critical for us to stay on

                 time with a truly balanced, fair and equitable

                 budget.  And so while I know that it is

                 considered in many camps to be irresponsible

                 not to continue to vote for extenders, I will



                                                        1699



                 join many of my colleagues today in continuing

                 not to vote for this extender.

                            Thank you very much, Madam

                 President.

                            THE PRESIDENT:    Senator

                 Schneiderman.

                            Senator Oppenheimer.

                            SENATOR OPPENHEIMER:    I just

                 wanted to briefly point out I can't imagine my

                 community, my county is the only one facing

                 this.

                            But it isn't something of the

                 future, it is something of the present, right

                 now.  We are seeing hospitals having to lay

                 off -- one of my hospitals laid off a hundred

                 people two weeks ago.  Another laid off 32

                 people.  One of my community health centers

                 has just laid off 10.  My home health care

                 agency, the largest one, has just laid off

                 workers.

                            I mean, it's happening because they

                 were in such tight straits before.  Many were

                 in the red before.  And that's what we've done

                 to our healthcare, the business of healthcare

                 in the State of New York.



                                                        1700



                            Because they were in such dire

                 straits before, having these payments not come

                 to them in a timely fashion, they're already

                 over the top.  They are already starting to

                 disband.

                            So, I mean, for those agencies that

                 can hang on -- and I know a few small agencies

                 that will probably not be able to hang on,

                 that will be in the future, and we'll have to

                 see how that goes.  But I can tell you that

                 right now there are many, many agencies,

                 particularly in the healthcare industry, that

                 are fatally wounded now.

                            And the longer we hold off, and the

                 uncertainty of not seeing so many of these

                 items funded -- and God knows what that means

                 for the future -- we are in very dire straits,

                 and we have to move.  And as has been said

                 before, I think it is the political will that

                 has resisted moving ahead.

                            We all know that the economy is not

                 doing well.  It is probably doing worse every

                 week we're up here.  And therefore, the sooner

                 we can get to a resolution, that's the best

                 for all of us.  It isn't that I'm faulting the



                                                        1701



                 other side of the aisle or that I'm faulting

                 my friend, but -- but we just have to move

                 ahead.

                            And I'm therefore going to be

                 voting no, because every day we don't move

                 ahead is a serious loss for my community.

                            THE PRESIDENT:    Senator Lachman.

                            SENATOR LACHMAN:    Yes, I had

                 misgivings about this last year.  I have

                 misgivings about it this year.  But I believe

                 now, when we see this coming up year after

                 year after year, that I will not be fulfilling

                 my obligations as a free and independent

                 legislator, responsible to my conscience and

                 my constituents, if I did not vote no on this.

                            We have taken much too long.  Our

                 prime responsibility now -- as it was last

                 month, as it will be next month -- and the

                 fiscally conservative position is to get a

                 budget passed.  Not an extender, but a budget.

                            To say that the $120 million

                 earmarked for education in March will be paid

                 in June, at the same time there's a $142,000

                 interest payment for each school district, is

                 outrageous.



                                                        1702



                            The total budget has been cut by

                 3 percent.  Education has been cut by

                 8.5 percent and higher education by

                 11.1 percent.  This is not the way that a

                 legislature should be involved in the

                 governing process.  We must be an equal

                 partner, Democrats and Republicans, and we

                 must pass a budget immediately.

                            I vote no.  Thank you.

                            THE PRESIDENT:    Senator Duane.

                            SENATOR DUANE:    Thank you, Madam

                 President.

                            I find it so hard to believe that

                 year after year it comes as such a surprise to

                 the leaders of the Legislature and the

                 Governor that April 1st is the budget

                 deadline.  And year after year, they are

                 incapable of meeting that deadline.

                            Now, it's terrible that all bets

                 are on whether or not those three guys are

                 getting along or not.  It's a little bit like,

                 you know, when the cardinals get together to

                 elect a new pope.  Are they getting along, is

                 there white smoke?  You know, if they're not

                 getting along, it's black smoke.  I mean,



                                                        1703



                 it's -- you know, everyone tries to read the

                 signals:  Oh, you know, did they have a good

                 meeting?  Did they have a bad meeting?

                            And everyone's attention is

                 rivetted on whether or not they're getting

                 along.  And nobody seems to see that that is a

                 terrible way to run state government.

                            You know, there are school

                 districts in the state who have to guess how

                 much they should borrow, what they should be

                 doing.  There are agencies that have to decide

                 whether or not they should lay off people now

                 or if they can gamble on waiting a little bit

                 longer.  There are pundits who will be trying

                 to decide whether, because this is an off-year

                 election, does that mean it will happen faster

                 or that means it will happen slower or because

                 there isn't any money, does that mean -- and

                 all of that should not be of any importance at

                 all.

                            Now, as many of you know, I've put

                 in a bill on term limits to throw the bums

                 out.  It would take a little while for that to

                 happen, because we'd have to go through some

                 major legislative changes in this state for



                                                        1704



                 that to happen.

                            But in the meantime, I do have a

                 few suggestions.  Perhaps we could add a woman

                 or 15 women to that three men in a room.

                 Maybe that would help things out.  We could

                 sprinkle those three men with a little bit of

                 diversity.  Maybe that would shake things up a

                 little bit.

                            We could -- remember conference

                 committees?  Who remembers conference

                 committees here?  Remember conference

                 committees?  Boy, were they fun.  Right?

                 People actually sat around -- although if you

                 notice, they actually would make the decisions

                 before they actually sat down in public.  But

                 let's face it, it was a step in the right

                 direction.

                            Now even, you know, the good

                 government groups, last year they said:  Gee,

                 it was, you know, better in the old days when

                 we had three men in a room, before we had

                 conference committees.

                            So, you know, we can, you know,

                 sort of sit around and bemoan what's going on

                 and wait for the signals.  I know there was



                                                        1705



                 allegedly going to be a meeting earlier today

                 of the three guys, but I haven't heard yet.

                 Did anybody hear?  How did they get along?

                 How'd it go?  Anybody know?  Good news, bad

                 news, any closer?  Pathetic.  Absolutely

                 pathetic.

                            You know, I know I make light of

                 it.  But you know what?  Shame on us.  Shame

                 on us.

                            THE PRESIDENT:    Senator Balboni.

                            SENATOR BALBONI:    Madam

                 President, I can't tell you how comforting it

                 is to sit in this chamber and hear all of the

                 debates, the same type of debates that we've

                 heard for, I guess, the last decade.  At least

                 when I was in the Assembly we talked about the

                 same kind of things.

                            And what's comforting about that is

                 that though the problem persists of our

                 inability to get a budget, it means at least

                 in what might be called this fantasy land

                 we've gone back to normal.  Nothing's

                 happened.  The worst attack in our nation's

                 history never really occurred.

                            Yes, a budget being late is



                                                        1706



                 horrible.  But can we just for a moment truly

                 look at where we are in history?  Not only the

                 massive loss of life, but the economic

                 consequences that occurred as a result of that

                 attack in this state, in your city and my

                 city, was the worst we've ever had.  And yet

                 here we are today bemoaning the fact that

                 people aren't getting along.

                            Senator Duane, I don't want to be

                 insensitive to your concern, because your

                 concern is my concern.  We need a budget,

                 you're absolutely correct.  But at least let's

                 characterize it against the backdrop that

                 exists.

                            First of all, let's take a look at

                 last year.  You know, last year, while the

                 rest of the nation was suffering under the

                 burden of a malaise in the economy -- just

                 look at California and many other

                 jurisdictions that had to raise taxes again

                 and again -- in New York, we were able to draw

                 down on $4 billion of reserves, the most

                 reserves we ever had.

                            And for any of us who had been in

                 that negotiation when we were developing those



                                                        1707



                 reserves, beginning in 1995, under Governor

                 George Pataki, we had to bring the Assembly

                 kicking and screaming to that reserve table.

                 Year after year, they said spend the money,

                 spend the money, don't put any away.  I recall

                 that as if it were yesterday.

                            But there's no credit given for

                 that.  Because you know what that $4 billion

                 did?  It got us to where we are today without

                 having to do these changes, these horrible

                 changes.

                            The situation today is obviously

                 the most serious and grave we've ever faced in

                 this state.  This is not about an on-time

                 budget as much as it is about people being

                 able to afford to live here, and how do we

                 recover as an economy.  That's what this is

                 about.  The moves we make today, I will argue,

                 will be the most significant moves we will

                 make in a decade as to where this state goes

                 from here.

                            Every part of the state is

                 affected.  On Long Island there was a

                 wonderful article yesterday in Newsday, in the

                 "Living" section, that broke out all the



                                                        1708



                 different costs for suburbanites in Nassau and

                 Suffolk County.  When you consider the

                 increase in the fuel costs and the increase in

                 commuting and the real property taxes and all

                 the other things, we have to take a look at

                 what's happening to the people we represent.

                 Whether it's in the city, Westchester,

                 upstate, there's a huge wave of taxes that has

                 already hit them.  What's our response going

                 to be?

                            Well, whatever it is, if there's

                 any time to be thoughtful and to consider all

                 of the options, it's this year.  Now, I'm not

                 going to justify a late budget.  But we have

                 set this thing up.  Let's look to what we've

                 done and where we've been and realize that

                 this is something that we have to do together.

                            So I would ask my colleagues on the

                 Minority side, if you've gotten a chance to

                 take a look at programs and ways to save

                 money, more efficiencies, well, get them in to

                 Senator Johnson.  I'm serious.  That's what we

                 need.  That's the dialogue that all of us

                 need.  Because you know what?  In every facet

                 of government we may know something more than



                                                        1709



                 somebody else of how it affects our community,

                 of how it affects the programs we pay

                 attention to.

                            Get those ideas -- I brought them.

                 I've given to Senator Johnson several

                 programs.  That's what we ought to be doing.

                 Contribute in that way.

                            Yes, conference committees might

                 have been a better forum.  But you know what?

                 The forum still exists.  Because that's how

                 serious this year is.

                            And just one comment.  The Governor

                 doesn't need anybody to defend him, but let me

                 just make one observation.  I've had the

                 opportunity to spend some time with the

                 Governor talking about security stuff.  And it

                 is very, very difficult issues that he has to

                 deal with.  Enormous amounts of pressure.  I

                 would say more pressure than I've ever seen

                 him under.  Remember, we have to be right a

                 hundred percent of the time; terrorists have

                 to be right once.  Enormous pressure.

                            He's fully engaged in this budget,

                 but he's also juggling a lot of other balls in

                 the air, trying to make the best decisions,



                                                        1710



                 again, against the backdrop of the worst

                 budget calamity we've ever had.

                            Madam President, I'm going to

                 choose today not to stop government and give

                 us a chance to continue this dialogue,

                 realizing that the news gets worse every day.

                 So I'm going to vote aye on the bill.

                            Thank you very much.

                            THE PRESIDENT:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Well, let

                 me -- give me just a moment.  Senator Diaz

                 first.

                            SENATOR DIAZ:    I'm just going to

                 take one minute to say that I'm new.  But

                 before I came here, I overheard every year the

                 same thing.

                            And then I received a letter this

                 week telling me that I will not be getting

                 paid until the budget is passed.  I had

                 nothing to do with it.  Why is it that I'm

                 getting punished?

                            Only three guys are the ones

                 responsible.  They are the ones that should be

                 getting punished.  Because it's like a



                                                        1711



                 criminal action what we do every year here.

                 So why don't we pass a law telling them if the

                 three of you don't get together and don't pass

                 the budget on time, we're going to send you to

                 jail.  And put them in a room in a jail and

                 say:  You will not leave the room until you

                 pass the budget.

                            So to my colleagues here and to

                 Senator Duane, I will say that I agree with

                 him on some things, like yes about the three

                 guys.  But I have to say here too that I do

                 not agree with Senator Duane where he compares

                 what's happening here with the Catholic Church

                 and the way they choose their pope.  I hate to

                 believe that Senator Duane is making a mockery

                 of the Catholic Church, of any other religion.

                            I think that we are doing serious

                 business here, we are professionals here.  And

                 if we want respect, we should respect others.

                 And I don't -- I will not -- I will not -- I

                 will not keep quiet when somebody is trying to

                 compare or make a mockery of religion for

                 anything.

                            So I don't think -- I think that I

                 take it seriously.  And I will not support any



                                                        1712



                 kind of comparison of the way we do business

                 and the way the Catholic Church chooses their

                 pope.  Thank you.

                            On the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator.

                            SENATOR DIAZ:    Oh, how do I vote

                 on the bill?  I'm voting no.

                            THE PRESIDENT:    Senator Brown.

                            SENATOR BROWN:    Thank you, Madam

                 President.  On the bill.

                            THE PRESIDENT:    You may proceed

                 on the bill, Senator.

                            SENATOR BROWN:    I think all of us

                 are beginning to experience some serious

                 frustration that this budget has not passed.

                 And in the words of a famous song -- which is

                 old now -- that we've all heard:  What have

                 you done for us lately?  I think that's what

                 the citizens of this state are saying to us:

                 What have you done for us lately when it comes

                 to passing this budget?

                            Now I and I'm sure nobody else in

                 this chamber wants to see the operation of

                 state government stop.  We don't want to see



                                                        1713



                 people go unpaid.  But if there was any year,

                 any year for us to pass this budget on time,

                 this was it.

                            In the face of a budget deficit of

                 over $11.5 billion, and larger than that --

                 and as members have alluded to, with each

                 passing day the magnitude of the deficit gets

                 larger.  So the longer we go, the deeper the

                 fiscal crisis gets, the deeper and deeper it

                 gets.

                            Our school districts, local

                 governments, and community-based organizations

                 and the needed programs and services that they

                 provide can't afford this delay.

                            And I think what this debate is

                 about is putting more pressure on the system.

                 It's putting more pressure on this process.

                 We've got to say that this budget has got to

                 be passed sooner, not later.  We all know that

                 April 1st was our deadline.  April 1st was our

                 deadline.  This budget should have been

                 passed.  And the longer we delay, the deeper

                 the problem gets.

                            Now, I know that the school

                 districts in my district, in Buffalo and



                                                        1714



                 Niagara Falls and Grand Island, in the city of

                 Tonawanda -- particularly in Buffalo, the

                 school district is on its knees.  The ability

                 for that school district to provide the

                 resources to educate the children of that

                 community is severely hampered.

                            They're looking at hundreds of

                 layoffs of teachers in that school district.

                 They're looking at class sizes grow to over 30

                 children in the classroom.  We all know that

                 we're looking at cutting kindergarten and

                 pre-K in that community.

                            I am imploring whoever is listening

                 to this debate that we have to get this budget

                 passed, and we've got to get it passed

                 quickly, because the delay is damaging this

                 state in so many ways that it is sad to

                 contemplate what we will have in the wake of

                 this budget continuing to extend.

                            I am forced, as others have been

                 forced to do today, to express my protest with

                 this budget process by voting no to this

                 extender legislation.  I lament having to do

                 that.  But to press for some change, I feel

                 obligated to vote no.



                                                        1715



                            Thank you, Madam President.

                            THE PRESIDENT:    Senator Duane.

                            SENATOR DUANE:    Thank you, Madam

                 President.

                            Madam President, I know that

                 everyone in this chamber shares the grief and

                 the sadness and the horror that underlies the

                 awful attack on the Trade Center on

                 September 11th.

                            And I don't question the Governor's

                 commitment and hard work on the issue of

                 making our state safe, nor those members who

                 are working hard on homeland security here in

                 our own chamber.  I know that they in

                 particular and all of us in general are

                 working hard to make sure that a horrible

                 tragedy like this does not happen again.  I

                 don't question those motives at all, not for

                 one second.

                            But I do take exception to using

                 that tragedy as justification for our

                 dysfunctional budget system.  Our budget

                 system was dysfunctional before

                 September 11th, and it's dysfunctional today.

                 And perhaps it's even more glaringly



                                                        1716



                 dysfunctional in light of the terrible tragedy

                 that befell our great state.

                            And again, I think that we have to

                 take responsibility, all of us collectively,

                 for our not being able to have a functioning

                 and productive budget system for the state.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  On the bill.

                            THE PRESIDENT:    You may proceed,

                 Senator.

                            SENATOR SCHNEIDERMAN:    Let's move

                 from small misrepresentations upwards towards

                 larger misrepresentations.  The difficulty

                 some of us have with the piece of legislation

                 we are being asked to vote on right now is,

                 quite simply, this is a bad bill.  We have a

                 gun to our head, we're told they're going to

                 shut down the government if we don't vote for

                 this.

                            And yet we're also told that when

                 the Governor, to close the 2002-2003 budget

                 gap, delayed $1.3 billion in payments to



                                                        1717



                 school districts and promised that as soon as

                 we got to the new fiscal year he would pay --

                 when we're told that the Governor now is

                 administratively withholding those funds and

                 that this bill would not force him to make

                 those payments, a lot of us have a problem.

                            It's not true to say that this bill

                 will not hurt school districts.  Let's get the

                 fact out on the table.  All over the state,

                 school districts are laying people off.  This

                 bill we're voting on today will hurt school

                 districts.

                            There are other programs that have

                 been referred to by my colleagues that are not

                 funded in this bill.  The rationale apparently

                 is that the Governor says this is a bare-bones

                 bill.  But now the Governor is the only person

                 apparently deciding what's bare bones.

                            And if he decides that we're not

                 going to make payments that have been in every

                 other extender in the last few years for

                 annuity payments to blind veterans, payments

                 that are excluded from this bill, the Governor

                 decides it, we still have to vote for it or

                 we'll be accused of shutting the government



                                                        1718



                 down.

                            Senator Balboni said things are

                 back to normal.  They're not.  We're now down

                 to one man in a room.  In fact, I don't think

                 he's in the room.  I think he's phoning it in

                 from wherever he is defending the state of

                 New York.  So we don't have anyone in the room

                 anymore.

                            And I would like to suggest that

                 we're not back to normal in a much more

                 fundamental sense.  We're not back to normal

                 because twenty years of spending increases,

                 through ups and downs, but of a basically

                 steady climb, and twenty years up and down but

                 basically on a steady climb of tax cuts for

                 the wealthiest New Yorkers and the wealthiest

                 Americans, have produced a structural deficit

                 the likes of which this country has never

                 seen.

                            Other states are suffering from the

                 same problem.  This is not just because of the

                 tragedy that occurred on September 11th.

                 Before September 11th, the Governor's own

                 analyst projected a $3 billion budget deficit

                 for the next year.



                                                        1719



                            He did preserve some reserve funds,

                 as Senator Balboni pointed out, reserve funds

                 to get him through his reelection campaign.

                 And they did.  Those funds are gone, and now

                 we're faced with the reality that was facing

                 us before September 11th and would face us

                 whether or not that tragedy occurred.

                            We have restructured the state of

                 New York so that the wealthiest New Yorkers

                 are paying less, the poorest New Yorkers are

                 paying more, and that after years of tax cuts

                 that overwhelmingly benefit the wealthy, the

                 Governor refuses to even put on the table the

                 notion that they should give back.

                            We are now talking about something

                 that in propaganda, discussions of propaganda

                 is called a big lie.  This is the big lie:

                 Raising taxes, even taxes that support good

                 schools and good healthcare and good

                 transportation, hurts economic growth.  That's

                 the big lie that has paralyzed us.  That's why

                 we are here with my Republican colleagues

                 pulling me off the floor and saying:  We know

                 we have to raise taxes, but we don't want to

                 talk about it publicly.



                                                        1720



                            We all know.  Everyone in Albany is

                 talking about the fact that we have to raise

                 taxes.  We can't talk about it publicly

                 because of the big lie.  Let's start getting

                 real.  We're going to raise taxes.  We're

                 going to have massive tax increases.  We all

                 know it.

                            So we're not back to normal,

                 Senator Balboni.  We're in a situation where

                 political debate is at a worse level than it's

                 ever been.  And I would respectfully submit

                 that it is an utterly incoherent argument to

                 suggest that raising taxes to preserve

                 critical services hurts the economy.

                            In fact, I know constituents from

                 my district who move into Senator Balboni's

                 district, where they have relatively high tax

                 rates, because they know those tax rates

                 afford great public schools.

                            People don't flee jurisdictions

                 that have high tax rates that support good

                 levels of public service.  That assertion --

                 demonstrably false, economically incoherent --

                 is paralyzing the state of New York because we

                 all walk around saying we got to raise taxes,



                                                        1721



                 we got to raise taxes, but we don't want to

                 talk about it in public.

                            And I would suggest that, instead

                 of elbowing each other out of the way to stand

                 with every advocacy group that opposes

                 spending cuts, that we spend a little time

                 focusing on the tax increases that are going

                 to enable us to prevent those spending cuts.

                            Things are not back to normal.

                 Things are worse than ever.  Every day it gets

                 worse.  They just laid off a whole group of

                 paraprofessionals in my daughter's school; I

                 don't think we're ever getting them back.  And

                 they're not going to get better if we continue

                 to say whatever lousy bill the Governor sends

                 us we will vote for and go along as though

                 nothing is going on.

                            Something very serious is going on.

                 The state is facing a structural deficit that

                 can only be solved by tax increases that we

                 are not even talking about.

                            I'm voting no.  I think everyone

                 here should vote no.  And I hope that the next

                 time we discuss this we will have some serious

                 proposals to raise revenues as a part of this



                                                        1722



                 discussion.

                            Thank you, Madam President.

                            THE PRESIDENT:    Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 I was just curious if there's a substitution

                 at the desk.

                            THE PRESIDENT:    Yes, there is,

                 Senator.

                            SENATOR SKELOS:    So to the best

                 of my knowledge, having been here now my 19th

                 year, that means the Assembly has passed this

                 bill.  I believe that Speaker Silver then has

                 agreed on passing this bill.

                            I also believe that there would

                 have been an opportunity for the Speaker, if

                 he so desired, to amend the bill that was sent

                 by the Governor.  He opted not to do it.  This

                 is the bill that is now before this house.

                            Now, a couple of things.  To say

                 that the Governor doesn't care about the

                 budget process I think is incorrect.  The

                 Governor is engaged, as is Senator Bruno.  I'm

                 sure the Speaker is engaged.  And everybody,

                 quite frankly, is disappointed that there is

                 not an on-time budget.



                                                        1723



                            But let me ask my colleagues on the

                 other side of the aisle:  If we put the

                 Governor's budget bill to a vote, how many of

                 you would support it?  How many would vote for

                 it?  Nobody.

                            So I think really what it's about,

                 although there is disappointment that there is

                 not a budget, we are working as a Legislature.

                 And I would ask the members of the Minority,

                 rather than carping and complaining, that you

                 be part of the process, that you work through

                 your Minority Leader, who has a great

                 relationship with Senator Bruno.  Come up with

                 your ideas.

                            If you as a conference feel that

                 taxes should be raised, come up with a

                 proposal as a conference.  As a conference, a

                 united conference proposing tax increases.

                            But the bottom line here is we are

                 working as a Legislature, diligently, to try

                 to pass a revised budget.  And to say that the

                 Governor is not engaged, that the Speaker is

                 not engaged, that Senator Bruno is not engaged

                 or that members of the Legislature -- I know

                 that members of the Majority are engaged.



                                                        1724



                 We've supported reforms that would encourage

                 an on-time budget.  We haven't heard

                 anything -- many of you opposed those reforms.

                 We haven't seen the Speaker take up one of

                 those reforms and pass them to encourage an

                 on-time budget.

                            I recall, whether it was last year

                 or the year before, sitting hours upon hours

                 trying to get joint conference committees

                 activated.  The Speaker refused to send his

                 members.  Not only refused to send them,

                 refused to appoint members as members of the

                 conference committee.

                            So I think what we should recognize

                 today, the bill that's before us that Senator

                 Johnson so eloquently debated is a matter of

                 keeping government going.  As we do, as we

                 perform our legislative functions in amending

                 and changing the Governor's budget as we see

                 fit.

                            So, Madam President, I support this

                 bill and I ask that it be brought to a vote at

                 this time.

                            THE PRESIDENT:    Senator

                 Schneiderman.



                                                        1725



                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.

                            I think that it's important for us

                 to acknowledge the fact that an amendment to

                 the Governor's proposal in fact would not have

                 been able to have been passed in a timely

                 manner because an amendment by the Assembly

                 would not have matched up with the Governor's

                 message of appropriation or message of

                 necessity.

                            So we have a situation where the

                 Governor really does have control of this

                 process, unless the Legislature chooses to

                 take it away from him and we decide that we're

                 going to negotiate with the Assembly our own

                 extenders and our own budget and be prepared

                 for an override.

                            I do acknowledge that Senator

                 Skelos's points relating to our colleagues in

                 the other house have some merit.  As far as

                 I'm aware, the only person who's had the

                 courage, actually, and leadership to step up

                 and call for specific tax increases is our

                 leader, Senator Paterson.

                            We are hopeful that our colleagues



                                                        1726



                 in the Assembly will join us in discussing

                 this issue in the course of the next week.

                 And we urge simply that everyone on both sides

                 of the aisle and both parties face up to what

                 we're doing here.

                            But there is no way we could

                 have -- we're in a situation with one-week

                 extenders -- that we can change the Governor's

                 change absent our own ability to deal with a

                 message of appropriation and a message of

                 necessity.

                            Thank you, Madam President.

                            THE PRESIDENT:    The Secretary

                 will read the substitution.

                            THE SECRETARY:    In relation to

                 Calendar Number 440, Senator Johnson moves to

                 discharge, from the Committee on Finance,

                 Assembly Bill Number 7963 and substitute it

                 for the identical Senate Bill Number 3935,

                 Third Reading Calendar 401.

                            THE PRESIDENT:    Substitution

                 ordered.

                            Read the last section.

                            THE SECRETARY:    Section 15.  This

                 act shall take effect immediately.



                                                        1727



                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE PRESIDENT:    Senator Onorato,

                 to explain your vote.

                            SENATOR ONORATO:    Madam

                 President, to explain my vote.

                            As I indicated earlier, I'm not

                 happy with this particular extender.  I'm not

                 opposed to the Governor's proposal that we

                 keep government operating.  What I am very,

                 very disappointed in is that we have not, as

                 we have in previous years, included funding

                 for all of the people that are included in the

                 $90 billion that the Governor submitted.

                            If those people's money were

                 included into this appropriation -- and I

                 can't see any justification for leaving them

                 out of it.  They're not going to get the full

                 amount, but they will get a partial payment

                 just like everybody else in the state will get

                 their partial payment.  They're going to get

                 paid to keep their households going.  So

                 should everybody else that's in the Governor's

                 original budget be included in the extenders.

                            When they do that, I'll be very,



                                                        1728



                 very happy to vote for the extenders until we

                 get the real budget on time.  But I vote no

                 now.

                            THE PRESIDENT:    You will be so

                 recorded as voting in the negative.

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 404 are

                 Senators Andrew, Breslin, Brown, Dilan, Duane,

                 Hassell-Thompson, L. Krueger, Lachman,

                 Montgomery, Onorato, Oppenheimer, Parker,

                 Paterson, Sabini, Schneiderman, A. Smith.

                 Also Senator Diaz.  Ayes, 42.  Nays, 17.

                            THE PRESIDENT:    The bill is

                 passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 would you please call up Calendar Number 405,

                 Senate 3936.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    In relation to

                 Calendar Number 405, Senator Johnson moves to

                 discharge, from the Committee on Finance,

                 Assembly Bill Number 7964 and substitute it

                 for the identical Senate Bill Number 3936,



                                                        1729



                 Third Reading Calendar 405.

                            THE PRESIDENT:    Substitution

                 ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 405, by the Assembly Committee on Rules,

                 Assembly Print Number 7964, an act to amend

                 the Executive Law, in relation to permitting.

                            THE PRESIDENT:    Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 is there a message of necessity at the desk?

                            THE PRESIDENT:    Yes, there is,

                 Senator.

                            SENATOR SKELOS:    Move to accept.

                            THE PRESIDENT:    All those in

                 favor of accepting the message of necessity

                 please signify by saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The message is

                 accepted.

                            Senator Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  Briefly on the bill.



                                                        1730



                            THE PRESIDENT:    You may proceed.

                            SENATOR SCHNEIDERMAN:    This is

                 the language bill that accompanies the

                 legislation we just were talking about.  All

                 of the same arguments obtain.

                            I will be voting no for the same

                 reason I voted no on the last bill, and I

                 encourage all my colleagues to do likewise.

                            THE PRESIDENT:    Read the last

                 section.

                            THE SECRETARY:    Section 2.  This

                 act shall take effect immediately.

                            THE PRESIDENT:    Call the roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Those recorded in

                 the negative on Calendar Number 405 are

                 Senators Andrews, Breslin, Brown, Diaz, Dilan,

                 Duane, Hassell-Thompson, L. Krueger, Lachman,

                 Montgomery, Onorato, Oppenheimer, Parker,

                 Paterson, Sabini, Schneiderman, and A. Smith.

                 Ayes, 42.  Nays, 17.

                            THE PRESIDENT:    The bill is

                 passed.

                            Senator Brown.

                            SENATOR BROWN:    Thank you, Madam



                                                        1731



                 President.  I request unanimous consent to be

                 recorded in the negative on Calendar 217.

                            THE PRESIDENT:    Hearing no

                 objection, you are so recorded as voting in

                 the negative.

                            Senator Morahan.

                            SENATOR MORAHAN:    Yes, I believe

                 there are some nominations at the desk.

                            THE PRESIDENT:    Yes, there are,

                 Senator.

                            SENATOR MORAHAN:    Could we take

                 those up at this time and read them as a

                 whole, with one vote.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    Senator Johnson,

                 from the Committee on Finance, reports the

                 following nominations:

                            As a member of the New York State

                 Bridge Authority, David A. Teator, of

                 Philmont.

                            As a member of the State

                 Environmental Board, David Johnson Miller, of

                 Ballston Lake.

                            As a member of the Empire State



                                                        1732



                 Plaza Art Commission, Norman S. Rice, of

                 Albany.

                            As a member of the Advisory Council

                 on the Commission on Quality of Care for the

                 Mentally Disabled, Judy Eisman, of Great Neck.

                            As a member of the Mental Health

                 Services Council, Peter V. McGinn, Ph.D., of

                 Vestal.

                            As members of the State Council on

                 the Arts, Elaine Wingate Conway, of

                 Bronxville, and Laurie Tisch Sussman, of

                 New York City.

                            As a member of the State Hospital

                 Review and Planning Council, Howard S.

                 Berliner, of New York City.

                            As a member of the Board of

                 Visitors of the Binghamton Psychiatric Center,

                 John J. Wiktor, of Binghamton.

                            As a member of the Board of

                 Visitors of the Broome Developmental

                 Disabilities Services Office, Kathryn Paddock,

                 of Binghamton.

                            As a member of the Board of

                 Visitors of the Creedmoor Psychiatric Center,

                 Hector J. Battaglia, M.D., of Centerport.



                                                        1733



                            As a member of the Board of

                 Visitors of the Metro New York Developmental

                 Disabilities Services Office, Claudia H.

                 Jackson, of the Bronx.

                            And as a member of the Board of

                 Visitors of the Western New York Developmental

                 Disabilities Services Office, Kay F. Cook, of

                 Batavia.

                            THE PRESIDENT:    The question is

                 on the confirmations as read by the Secretary.

                 All in favor signify by saying aye.

                            (Response of "Aye.")

                            THE PRESIDENT:    Opposed, nay.

                            (No response.)

                            THE PRESIDENT:    The nominees are

                 all hereby confirmed.

                            Senator Morahan.

                            SENATOR MORAHAN:    Yes, Madam

                 President.  Is there any housekeeping at the

                 desk?

                            THE PRESIDENT:    No, there isn't,

                 Senator.

                            SENATOR MORAHAN:    Please

                 recognize Senator Paterson.

                            THE PRESIDENT:    Senator Paterson.



                                                        1734



                            Thank you, Senator Morahan.

                            SENATOR PATERSON:    Madam

                 President, I have a motion.  But before I do,

                 might we recognize Senator Montgomery for just

                 a brief moment.

                            THE PRESIDENT:    Senator

                 Montgomery.

                            SENATOR MONTGOMERY:    Yes, Madam

                 President.  I would like unanimous consent to

                 be recorded in the negative on Calendar 272.

                            THE PRESIDENT:    Hearing no

                 objection, you will be so recorded as voting

                 in the negative.

                            Senator Paterson.

                            SENATOR PATERSON:    Madam

                 President, I believe I have a motion at the

                 desk, and I ask that it be read.

                            THE PRESIDENT:    The Secretary

                 will read.

                            THE SECRETARY:    By Senator

                 Paterson, Senate Print 1008, an act to amend

                 the Public Authorities Law.

                            THE PRESIDENT:    Senator Paterson.

                            SENATOR PATERSON:    Madam

                 President, my records show that there has not



                                                        1735



                 been a motion to petition sustained by this

                 body in 225 years.  However, you are going to

                 be a witness to history.

                            And I thank my Republican

                 colleagues, who I spoke to earlier today, and

                 they are here and are going to be part of this

                 moment in history.

                            First, let's take a look at the

                 reason we have to do this.  At the end of

                 calendar year 2001, the MTA reported, through

                 its budget, a $25 million to $35 million

                 surplus.  By 2002, during negotiations with

                 the Transport Workers Union, the MTA reported

                 its deficit at $2.8 billion.

                            That negotiation reached a

                 conclusion without a transit strike in

                 New York City.  And on December 20th, the end

                 of that week, along with seven of my

                 colleagues, we held a press conference asking

                 for an independent oversight committee, an

                 operations oversight committee to the MTA in

                 which there would be six appointees, one each

                 from the four leaders of the Legislature, one

                 from the mayor of the City of New York, and

                 one from the Governor of the State of New



                                                        1736



                 York.  Of the six appointees, one must be a

                 commuter and one must be a worker for the

                 Metropolitan Transit Authority.

                            Simply, what we want this oversight

                 committee to do is to take a look at the

                 operations plan to make sure that the

                 authority is negotiating in good faith, to

                 make sure that the authority is reporting its

                 operational revenues also within 30 days of

                 the Legislature's adopting their budget.

                 Right now, there is no restriction.  It has

                 to, under this motion that I'm offering, be

                 within 30 days.

                            So we want to know what the records

                 are 30 days before we vote on it, and we'd

                 like to have an independent oversight

                 committee.  Right now there's a major capital

                 plan that the Legislature involves in every

                 five years, but we want it to be more

                 specific, more succinct.

                            Because shortly after the

                 conclusion of that negotiation, the

                 Independent Budget Office reported that the

                 MTA's estimate of $2.8 billion was

                 superfluous.  They estimated the deficit of



                                                        1737



                 only about $950 million.  If that was known at

                 the time there was a negotiation, there may

                 have been a slightly different conclusion.

                            But the fact is that just as we

                 have to report our own personal expenses and

                 our own issues of ethics to the State Ethics

                 Committee every year and it is reviewed by an

                 independent commission, we just want the

                 entity, the authority of the MTA to make the

                 same report.

                            I think that's pretty

                 straightforward, Madam President.  And I know

                 that the Majority -- who has offered reforms

                 to the legislative process, who has a whole

                 new idea of how to negotiate the budget, and

                 one that we may have disagreed with a few of

                 the issues that they presented, but they had

                 their plan out here very early in the session

                 and I'm sure would have stayed here over the

                 weekend right before the budget was due to

                 negotiate it -- I'm sure that that Majority is

                 going to vote with this motion.  So I want to

                 thank them in advance for their support.

                            Oddly enough, the same way we knew

                 we couldn't pass the budget on time, we had an



                                                        1738



                 extender in advantages of the April 1st

                 deadline.

                            So I want to be as clairvoyant as

                 all of us were last week, thank everyone.  And

                 I am not going to take total credit for being

                 the first member of the Legislature to pass a

                 motion for petition in 225 years, but my name

                 is David Paterson, with one T.

                            And I want to thank all of you for

                 being here, and there will be a celebration in

                 Room 314 right after the vote on this motion.

                            Thank you, Madam President.

                            (Laughter.)

                            THE PRESIDENT:    All those

                 Senators in favor of the petition out of

                 committee please signify by raising your

                 hands.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Andrews, Breslin,

                 Brown, Diaz, Dilan, Duane, Gonzalez,

                 Hassell-Thompson, L. Krueger, C. Kruger,

                 Lachman, Montgomery, Onorato, Oppenheimer,

                 Parker, Paterson, Sabini, Sampson,

                 Schneiderman, A. Smith, and Stachowski.

                            THE PRESIDENT:    The petition is



                                                        1739



                 defeated.

                            Senator Morahan.

                            SENATOR MORAHAN:    I do have to

                 say that came as close as any other that ever

                 passed.

                            Is there any housekeeping at the

                 desk, Madam President?

                            THE PRESIDENT:    No, there isn't,

                 Senator.

                            SENATOR MORAHAN:    There being no

                 other business before the house, I would make

                 a motion to adjourn until Tuesday, April 8th,

                 at 3:00 p.m.

                            THE PRESIDENT:    On motion, the

                 Senate stands adjourned until Tuesday,

                 April 8th, at 3:00 p.m.

                            (Whereupon, at 4:58 p.m., the

                 Senate adjourned.)