Regular Session - May 6, 2003
2370
NEW YORK STATE SENATE
THE STENOGRAPHIC RECORD
ALBANY, NEW YORK
May 6, 2003
3:26 p.m.
REGULAR SESSION
SENATOR THOMAS P. MORAHAN, Acting President
STEVEN M. BOGGESS, Secretary
2371
P R O C E E D I N G S
ACTING PRESIDENT MORAHAN: The
Senate will come to order.
I ask everyone present to rise and
repeat with me the Pledge of Allegiance.
(Whereupon, the assemblage recited
the Pledge of Allegiance to the Flag.)
ACTING PRESIDENT MORAHAN: In the
absence of clergy, may we all bow our heads in
a moment of silence.
(Whereupon, the assemblage
respected a moment of silence.)
ACTING PRESIDENT MORAHAN:
Reading of the Journal.
THE SECRETARY: In Senate,
Monday, May 5, the Senate met pursuant to
adjournment. The Journal of Sunday, May 4,
was read and approved. On motion, Senate
adjourned.
ACTING PRESIDENT MORAHAN:
Without objection, the Journal stands approved
as read.
Presentation of petitions.
Messages from the Assembly.
Messages from the Governor.
2372
Reports of standing committees.
Reports of select committees.
Communications and reports from
state officers.
Motions and resolutions.
Senator Farley.
SENATOR FARLEY: Thank you,
Mr. President.
On behalf of Senator LaValle, on
page 16 I offer the following amendments to
Calendar 328, Senate Print 3165, and I ask
that that bill retain its place on the Third
Reading Calendar.
ACTING PRESIDENT MORAHAN: The
amendments are received and adopted, and the
bill will retain its place on the Third
Reading Calendar.
SENATOR FARLEY: On behalf of our
distinguished president, Senator Morahan, I
offer, on page 33, the following amendments to
Calendar Number 588, Senate Print 4142, and I
ask that that bill retain its place on the
Third Reading Calendar.
ACTING PRESIDENT MORAHAN: The
amendments are received and accepted, and we
2373
will have the bill retain its original place
on the Third Reading Calendar.
Senator Skelos.
SENATOR SKELOS: Mr. President, I
believe there are some substitutions at the
desk, if we could make them at this time.
ACTING PRESIDENT MORAHAN: The
Secretary will read.
THE SECRETARY: On page 15,
Senator DeFrancisco moves to discharge, from
the Committee on Judiciary, Assembly Bill
Number 2609 and substitute it for the
identical Senate Bill Number 3137, Third
Reading Calendar 306.
And on page 35, Senator Johnson
moves to discharge, from the Committee on
Finance, Assembly Bill Number 8388 and
substitute it for the identical Senate Bill
Number 4968, Third Reading Calendar 602.
ACTING PRESIDENT MORAHAN:
Substitutions ordered.
Senator Skelos.
SENATOR SKELOS: There will be an
immediate meeting of the Crime Victims, Crime
and Corrections Committee in the Majority
2374
Conference Room.
ACTING PRESIDENT MORAHAN: There
will be an immediate meeting of the Crime
Victims, Crime and Corrections Committee in
the Majority Conference Room.
SENATOR SKELOS: Mr. President,
at this time I'd like to adopt the Resolution
Calendar, with the exception of Resolution
1492.
ACTING PRESIDENT MORAHAN: All in
favor of adopting the Resolution Calendar say
aye.
(Response of "Aye.")
ACTING PRESIDENT MORAHAN:
Opposed, nay.
(No response.)
ACTING PRESIDENT MORAHAN: The
Resolution Calendar is adopted.
Senator Skelos.
SENATOR SKELOS: Mr. President,
at this time if we could take up Resolution
Number 1492, by Senator Maziarz, have the
title read and move for its immediate
adoption.
ACTING PRESIDENT MORAHAN: The
2375
Secretary will read.
THE SECRETARY: By Senator
Maziarz, Legislative Resolution Number 1492,
memorializing Governor George E. Pataki to
proclaim May 4 through 10, 2003, as "Brain
Tumor Action Week" in the State of New York.
ACTING PRESIDENT MORAHAN: All in
favor of the resolution say aye.
(Response of "Aye.")
ACTING PRESIDENT MORAHAN:
Opposed, nay.
(No response.)
ACTING PRESIDENT MORAHAN: The
resolution is adopted.
Senator Skelos.
SENATOR SKELOS: Mr. President,
Senator Maziarz would like to open up the
resolution for cosponsorship, with the consent
of the Minority. If anybody would not like to
go on it, they should notify the desk.
ACTING PRESIDENT MORAHAN:
Senators will be listed as cosponsors. If
they don't care to be a sponsor, notify the
desk.
SENATOR SKELOS: Mr. President,
2376
if we could go to the noncontroversial reading
of the calendar.
ACTING PRESIDENT MORAHAN: The
Secretary will read.
THE SECRETARY: Calendar Number
233, by Senator McGee, Senate Print 2406, an
act to adjust certain state aid payments.
ACTING PRESIDENT MORAHAN: Read
the last section.
THE SECRETARY: Section 3. This
act shall take effect immediately.
ACTING PRESIDENT MORAHAN: Call
the roll.
(The Secretary called the roll.)
ACTING PRESIDENT MORAHAN:
Announce the results.
THE SECRETARY: Ayes, 49.
ACTING PRESIDENT MORAHAN: The
bill is passed.
THE SECRETARY: Calendar Number
409, by Senator Morahan, Senate Print 681, an
act to amend the Executive Law, in relation to
veterans who participated in Operation Restore
Hope in Somalia.
ACTING PRESIDENT MORAHAN: Read
2377
the last section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
ACTING PRESIDENT MORAHAN: Call
the roll.
(The Secretary called the roll.)
ACTING PRESIDENT MORAHAN:
Announce the results.
THE SECRETARY: Ayes, 49.
ACTING PRESIDENT MORAHAN: The
bill is passed.
THE SECRETARY: Calendar Number
453, by Senator Farley, Senate Print 3031, an
act to amend the Civil Rights Law, in relation
to the confidentiality of certain personnel
records.
SENATOR PATERSON: Lay it aside.
ACTING PRESIDENT MORAHAN: The
bill is laid aside.
THE SECRETARY: Calendar Number
462, by Senator Skelos, Senate Print 3827A, an
act to amend the Criminal Procedure Law and
the Family Court Act, in relation to evidence
of identification.
ACTING PRESIDENT MORAHAN: Read
2378
the last section.
THE SECRETARY: Section 6. This
act shall take effect on the first of
November.
ACTING PRESIDENT MORAHAN: Call
the roll.
(The Secretary called the roll.)
ACTING PRESIDENT MORAHAN:
Announce the results.
THE SECRETARY: Ayes, 49.
ACTING PRESIDENT MORAHAN: The
bill is passed.
THE SECRETARY: Calendar Number
491, by Senator McGee, Senate Print 2858, an
act to amend the Alcoholic Beverage Control
Law, in relation to mandatory license
revocation.
ACTING PRESIDENT MORAHAN: Read
the last section.
THE SECRETARY: Section 4. This
act shall take effect on the first of January.
ACTING PRESIDENT MORAHAN: Call
the roll.
(The Secretary called the roll.)
ACTING PRESIDENT MORAHAN:
2379
Announce the results.
THE SECRETARY: Ayes, 49.
ACTING PRESIDENT MORAHAN:
Senator Hassell-Thompson.
SENATOR HASSELL-THOMPSON: Thank
you, Mr. President. I apologize, but I would
like to be recorded in the negative on
Calendar Number 462.
ACTING PRESIDENT MORAHAN:
Without objection, Senator Hassell-Thompson
will be recorded in the negative.
The bill is passed.
THE SECRETARY: Calendar Number
506, by Senator Spano, Senate Print 2989, an
act to amend the Public Authorities Law, in
relation to extending the time.
ACTING PRESIDENT MORAHAN: Read
the last section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
ACTING PRESIDENT MORAHAN: Call
the roll.
(The Secretary called the roll.)
ACTING PRESIDENT MORAHAN:
Announce the results.
2380
THE SECRETARY: Ayes, 49.
ACTING PRESIDENT MORAHAN: The
bill is passed.
THE SECRETARY: Calendar Number
529, by Senator Kuhl, Senate Print 1971, an
act to amend the Vehicle and Traffic Law, in
relation to authorizing the issuance of a
second set.
ACTING PRESIDENT MORAHAN: Read
the last section.
THE SECRETARY: Section 2. This
act shall take effect on the first of January.
ACTING PRESIDENT MORAHAN: Call
the roll.
(The Secretary called the roll.)
ACTING PRESIDENT MORAHAN:
Announce the results.
THE SECRETARY: Ayes, 49.
ACTING PRESIDENT MORAHAN: The
bill is passed.
THE SECRETARY: Calendar Number
532, by Senator Balboni, Senate Print 4746, an
act to amend the Military Law.
SENATOR LIZ KRUEGER: Lay it
aside.
2381
ACTING PRESIDENT MORAHAN: The
bill is laid aside.
THE SECRETARY: Calendar Number
586, by Senator Maltese, Senate Print 81, an
act to amend the Election Law, in relation to
board of elections.
ACTING PRESIDENT MORAHAN: Read
the last section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
ACTING PRESIDENT MORAHAN: Call
the roll.
(The Secretary called the roll.)
ACTING PRESIDENT MORAHAN:
Announce the results.
THE SECRETARY: Ayes, 51.
ACTING PRESIDENT MORAHAN: The
bill is passed.
THE SECRETARY: Calendar Number
593, by Senator LaValle, Senate Print 1413B,
an act to amend the Education Law, in relation
to the fees paid for certain initial licenses.
ACTING PRESIDENT MORAHAN: Read
the last section.
THE SECRETARY: Section 9. This
2382
act shall take effect immediately.
ACTING PRESIDENT MORAHAN: Call
the roll.
(The Secretary called the roll.)
ACTING PRESIDENT MORAHAN:
Announce the results.
THE SECRETARY: Ayes, 51.
ACTING PRESIDENT MORAHAN: The
bill is passed.
THE SECRETARY: Calendar Number
594, by Senator LaValle, Senate Print 3057, an
act to amend Chapter 676 of the Laws of 2002.
ACTING PRESIDENT MORAHAN: Read
the last section.
THE SECRETARY: Section 2. This
act shall take effect on the same date and in
the same manner as Chapter 676 of the Laws of
2002.
ACTING PRESIDENT MORAHAN: Call
the roll.
(The Secretary called the roll.)
ACTING PRESIDENT MORAHAN:
Announce the results.
THE SECRETARY: Ayes, 53.
ACTING PRESIDENT MORAHAN: The
2383
bill is passed.
THE SECRETARY: Calendar Number
602, substituted earlier today by the Assembly
Committee on Rules, Assembly Print Number
8388, an act to amend the Tax Law and others.
ACTING PRESIDENT MORAHAN: There
is a home-rule message at the desk.
Read the last section.
SENATOR SCHNEIDERMAN: Lay it
aside.
ACTING PRESIDENT MORAHAN: The
bill is laid aside.
Senator Skelos, that completes the
reading of the noncontroversial calendar.
SENATOR SKELOS: Thank you,
Mr. President. If we could go to the
controversial reading of the calendar at this
time.
ACTING PRESIDENT MORAHAN: The
Secretary will read.
THE SECRETARY: Calendar Number
453, by Senator Farley, Senate Print 3031, an
act to amend the Civil Rights Law, in relation
to the confidentiality of certain personnel
records.
2384
SENATOR SCHNEIDERMAN:
Explanation.
ACTING PRESIDENT MORAHAN:
Senator Farley, an explanation has been
requested.
SENATOR FARLEY: Thank you very
much.
This is bill that I am introducing
at the request of the Public Employees
Federation, PEF, a very important piece of
legislation for them. It creates privacy
protection for personnel records of
investigators employed by the Department of
Taxation and Finance. These investigators are
currently defined as police officers, peace
officers, under the Criminal Procedure Law.
Now, privacy protection currently
is extended to all police officers,
corrections officers, firefighters,
paramedics, and parole officers. That's under
Civil Rights Law Section 58.
And under this law, the personnel
records are considered confidential and
they're only open to review with the consent
of the employee, the attorney general,
2385
district attorney, other prosecutors, or a
court order. Similar protections apply to
court officers and to bridge and tunnel
officers.
Now, numerous cases here have
identified the purpose of the current law as
the prevention of fishing expeditions into the
personnel records of law enforcement officers
who may have contact with criminals.
Investigators here employed by the Department
of Taxation and Finance conduct criminal
investigations, they serve warrants, make
arrests in the enforcement of our tax laws.
This protection is especially
important to them, as their work relates
particularly to white-collar criminals who
could use this information in personnel
records to threaten the investigators and
their families.
This bill, incidentally, is opposed
by the Trial Lawyers. Their memorandum
acknowledges the legislative intent of the
underlying statute in protecting law
enforcement officers from fishing expeditions,
but they argue that the law has been used to
2386
avoid producing information about police
misconduct and therefore should not be
expanded.
The bill is sponsored in the
Assembly by Assemblyman Lentol, and I think
it's a piece of legislation that is urgently
needed for investigators in the Department of
Tax and Finance.
ACTING PRESIDENT MORAHAN:
Senator Schneiderman.
SENATOR SCHNEIDERMAN: Yes,
through you, Mr. President, if the sponsor
would yield for a question.
ACTING PRESIDENT MORAHAN:
Senator Farley, will you yield for a question?
SENATOR FARLEY: I'd be happy to.
ACTING PRESIDENT MORAHAN: The
Senator yields.
SENATOR SCHNEIDERMAN: Thank you.
Through you, Mr. President, I
wonder if the sponsor could tell us if there
have been any instances in which the problems
that this bill appears to be designed to
address have taken place.
Have there been any police officers
2387
employed by the State Department of Taxation
and Finance who have had their records used or
abused in the ways the sponsor described?
SENATOR FARLEY: I specifically
don't know of any, Senator.
But I do know that PEF, or the
Public Employees Federation, and the
investigators from this department are very,
very interested in this bill. This is a
high-priority piece of legislation for PEF.
SENATOR SCHNEIDERMAN: Thank you.
Thank you, Mr. President.
ACTING PRESIDENT MORAHAN: Thank
you, Senator Schneiderman.
Thank you, Senator Farley.
Any other Senator wish to be heard
on the bill?
Read the last section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
ACTING PRESIDENT MORAHAN: Call
the roll.
(The Secretary called the roll.)
ACTING PRESIDENT MORAHAN:
Announce the results.
2388
THE SECRETARY: Ayes, 58.
ACTING PRESIDENT MORAHAN: The
bill is passed.
THE SECRETARY: Calendar Number
532, by Senator Balboni, Senate Print 4746, an
act to amend the Military Law, in relation to
the waiving of filing fees.
SENATOR LIZ KRUEGER:
Explanation.
ACTING PRESIDENT MORAHAN:
Senator Balboni, an explanation has been
requested by Senator Krueger.
SENATOR BALBONI: Yes, Mr.
President. This is a bill that continues this
Legislature's attempt to support the men and
women who serve in our naval militia, the Air
National Guard, the Army National Guard, and
the -- I'm missing the last one -- the Army
Reserves.
And what this bill would do is it
would waive the requirement of any of those
members who are in those forces during the
time of deployment from having to file filing
fees for any court action that they would
bring during that period of time.
2389
This bill was developed by
members -- frankly, legislative staff counsel
who are currently being deployed, and they
brought this to our attention as another way
to both encourage people to join these
services, which is so essential, particularly
at this time, but also to recognize that these
are some of the little nuisances that we could
take away from the men and women who are
serving both our state and our nation.
ACTING PRESIDENT MORAHAN: Thank
you, Senator Balboni.
Senator Krueger.
SENATOR LIZ KRUEGER: Thank you,
Mr. President. If, through you, the sponsor
would yield.
ACTING PRESIDENT MORAHAN:
Senator Balboni, will you yield?
SENATOR BALBONI: Yes, I do,
Mr. President.
ACTING PRESIDENT MORAHAN: The
Senator yields.
SENATOR LIZ KRUEGER: Thank you,
Mr. President. And thank you, sponsor, for
your explanation.
2390
I find myself still confused. Is
this civil court actions that are brought
specifically relating to being called to
active duty?
SENATOR BALBONI: No, no, they're
not. Mr. President, through you, they are not
related specifically to being deployed, they
are merely a recognition of a different status
in our society.
SENATOR LIZ KRUEGER: Mr.
President, if, through you, the sponsor would
yield.
ACTING PRESIDENT MORAHAN: Will
you continue to yield, Senator Balboni?
SENATOR BALBONI: Yes.
SENATOR LIZ KRUEGER: So again,
as I read the memo, perhaps my confusion is
that you were referencing the Soldiers and
Sailors Civil Relief Act. And for some
reason, as I read the memo and the bill, I'm
still under the assumption that this is in
some way relating to civil court actions
associated with being called into active duty.
But again, just to rephrase for
myself, you're saying this is if you're on
2391
active duty, regardless of the reason for the
civil claim or the case, we would exempt you
from the filing fees?
SENATOR BALBONI: I'm sorry, Mr.
President, I misunderstood the -- your prior
question. I thought it was related to a
lawsuit brought because of your deployment.
No, this actually references the --
it's right in the bill language. It is 5 and
6, and it is if the controversy -- that is,
the court action -- is brought and is related
to such service in active duty as it relates
to housing, employment, or any of the other
protected categories that are referenced in
the federal statute.
SENATOR LIZ KRUEGER: Mr.
President, if, through you, the sponsor would
yield to one more question.
SENATOR BALBONI: Yes, I yield,
Mr. President.
SENATOR LIZ KRUEGER: Thank you.
SENATOR SKELOS: Mr. President,
if I could just interrupt for a moment,
please.
ACTING PRESIDENT MORAHAN:
2392
Senator Skelos.
SENATOR SKELOS: There will be an
immediate meeting of the Social Services
Committee in the Majority Conference Room.
ACTING PRESIDENT MORAHAN: There
will be an immediate meeting of the Social
Services Committee in the Majority Conference
Room.
Senator Krueger has asked for
another question, Senator. Do you yield?
SENATOR BALBONI: Yes, I yield.
ACTING PRESIDENT MORAHAN:
Senator Krueger.
SENATOR LIZ KRUEGER: Thank you.
I'll make it my last question, because I'm on
Social Services and need to get out of here.
Is this a precedent anywhere else
for anyone else who's in the military in
regular active duty, as opposed to the
categories you described or any other area of
the law?
SENATOR BALBONI: Mr. President,
it is my understanding that the individuals
who serve with the federalized armed services
are in fact already covered in this category
2393
by the statute you referenced before.
SENATOR LIZ KRUEGER: Thank you,
Mr. President. No further questions.
SENATOR BALBONI: Thank you, Mr.
President.
ACTING PRESIDENT MORAHAN: Thank
you, Senator Krueger.
Thank you, Senator Balboni.
Read the last section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
ACTING PRESIDENT MORAHAN: Call
the roll.
(The Secretary called the roll.)
ACTING PRESIDENT MORAHAN:
Announce the results.
THE SECRETARY: Ayes, 59.
ACTING PRESIDENT MORAHAN: The
bill is passed.
Senator Bruno.
SENATOR BRUNO: Mr. President,
can we at this time take up Calendar Number
602.
ACTING PRESIDENT MORAHAN: The
Secretary will read.
2394
THE SECRETARY: Calendar Number
602, substituted earlier today by the Assembly
Committee on Rules, Assembly Print Number
8388, an act to amend the Tax Law and others.
SENATOR SCHNEIDERMAN:
Explanation.
ACTING PRESIDENT MORAHAN:
Senator Bruno, an explanation has been
requested.
SENATOR BRUNO: Can I, Mr.
President, say just a few words about the bill
that's on the floor.
And as we all know, this represents
an authorization for a revenue package for the
people in New York City. And it is a package
that contains a number of items. But there
are two main pieces in it, and -- or three.
One is it increases the income on
people, couples over $150,000 income and
$500,000 with an escalation; singles, single
individuals, $100,000 and over; and head of
households, $125,000. And it sunsets and
pretty much mirrors what was done at the state
level, with a 10 percent surcharge. Then 1/8
of 1 percent of increase in the sales tax,
2395
which disappears and sunsets in two years.
There is a conversion of the MAC
debt that's about $2.7 billion that exists
that will be taken over. And that saves the
city about $500 million.
So in the whole package, there's
some absentee landlord increases in taxes that
have 25, 30 million this year, escalating --
45 million this year, escalating a little next
year. And there are other pieces in it. But
there's about ten, twelve pieces. The total
is about 1 billion, 700 million. Is that what
that totals?
Some of the things that we have
already had in the budget, plus this, it's
about $1.9 billion that accrues to the city.
In restorations, there was about $800 million
between education and health care. So there's
about $2.7 billion in either authorization for
revenue or restorations to the City of
New York.
So we think that's critical. We
think it's very important because New York
City was hardest hit with 9/11, with what
happened there, and they've never fully
2396
recovered. Also, with the national recession,
New York City, being really the capital of --
the capital center of the world, was hardest
hit.
So we think that it's important
that the state come forward in a bipartisan
way, joining with all of our colleagues here
and our colleagues in the Assembly, to do what
is appropriate for the greatest city in the
whole world, New York City.
So that's what this is about, and
that's why we're here. And I appreciate the
support of all of my colleagues here in the
chamber, Mr. President.
ACTING PRESIDENT MORAHAN: Thank
you, Senator Bruno.
Senator Padavan.
SENATOR PADAVAN: Yes, thank you,
Mr. President.
I briefly want to say that as a
city resident, as a member who represents the
City of New York, I'm very grateful for the
leadership provided by the Majority Leader in
bringing us to the point we're now at.
Yes, there are some other things we
2397
would have preferred happen, like a commuter
tax, but that was not politically viable. We
all know the story of how it happened and why
it's not going to happen.
But that being laid aside, what
we've done in the budget that was adopted last
week is provide the City of New York
restorations that are significant in terms of
essential services.
And, of course, paramount in that
category is education, restoring $400 million
in cuts that had been in the Executive Budget,
so that our pre-K program will continue on
unabated. And a whole host of other
educational components, very important in
terms of the viability of the educational
system of the City of New York, are now not
impacted by virtue of those restorations.
The Mayor, as you know, had
promoted and talked about a doomsday budget
that he would have to adopt if more revenues
did not flow to the City of New York to deal
with essential services, which include all the
things we're familiar with: police, fire,
sanitation, and certainly education.
2398
This revenue package that's in the
bill before us will to a large degree mitigate
that necessity, and so the doomsday will not
occur. What cuts he will have to still put in
place, I frankly am not privy to.
But I do know that by our actions
today, with this $1.9 billion and the
restorations in the budget that we adopted
last week, the city will have over
$2.7 billion at its disposal to deal with
myriad issues that are critical to the quality
of life of the residents and those who work in
the City of New York.
So again, I thank the leadership of
this house, partnering with the Assembly, to
bring us to the point we're now at. And at
the same time, I acknowledge that there's
probably still a lot more that we have to do
for the City of New York as soon as we're able
to do it.
Thank you, Mr. President.
ACTING PRESIDENT MORAHAN: Thank
you, Senator Padavan.
Any other Senator wish to be heard?
Senator Krueger.
2399
SENATOR LIZ KRUEGER: Thank you,
Mr. President. On the bill.
ACTING PRESIDENT MORAHAN:
Senator Krueger, on the bill.
SENATOR LIZ KRUEGER: Thank you.
This is not a bill to bail out my
city, bail out New York City. It is a bill
that goes somewhere towards what the city was
begging Albany for, some help in its fiscal
crisis.
I don't disagree that there is good
material in this bill. I don't disagree that
the state, the Legislature, the Assembly and
the Senate, working together, have come up
with a package that helps the City of New York
far more than the Governor's proposals. To
reference Senator Padavan's statements,
certainly the restorations that we passed
through these two houses last week
significantly help and go in the right
direction.
But I would be remiss if I didn't
point out that it is clear to me we could do
better and we should be doing more to help
New York City.
2400
Senator Padavan just referenced
it's almost $1.9 billion. I just want to
highlight for the record that the vast
majority of this money is money that we are
giving New York City the permission to tax on
its own of its own people, on top of the taxes
that we passed. It's not new money from
Albany, it's the city having the right to tax
its own people for increased personal income
tax, an increased local sales tax, and an
absentee landlord tax.
Some of the monies in this package
are simply accelerated payments of money that
Albany has already owed the City of New York.
Some of this money, while I am glad to see
that it's there in the sense that we are
allowing the city to refinance the remainder
of their MAC bonds that they have owed since
the '70s, when you look at that package in
detail you see that what is now a $2.5 billion
remaining obligation for the city in a
refinancing of 30 years could translate to as
much as $5.1 billion that the City of New York
will have to pay back, albeit over a much
longer period of time.
2401
This is not a bailout of New York
City, and it's not even an attempt to deal
with the inequities in the state budget for
New York City, because nowhere in this package
do we finally address the unfair funding
formulas in our education aid package. As we
stand here -- or I stand here and you sit here
today, there are people walking to Albany for
the Campaign for Fiscal Equity fight to have a
fair funding formula for the schools
throughout this state.
Nowhere in this package do we
address the unfair funding formulas for
transit aid to the City of New York under the
state's formulas, even though the City of
New York is facing -- excuse me, has now in
effect a 50-cent fare hike for every person
who uses our public transportation.
This package does not have the
commuter tax that so many of us hoped for and
believed was a fair and equitable approach.
This package does include
significant new taxes from the people of
New York City to help fund their own costs.
But I would argue that if we had
2402
seen the type of funding at the federal level
to the State of New York and the City of
New York, we would not have had to do the tax
package that went through this house on
Friday. Nor would the City of New York have
to do the tax package that they're asking us
for permission for today.
During the last two years -- excuse
me, if the federal government froze the last
two years scheduled in of federal tax cuts, if
we froze the federal tax cuts where they are
today rather than phasing in the remaining
years, we wouldn't need new state or city
taxes to address our needs.
And in fact, if the next set of
federal tax cuts go through, the impact on our
state and our city will be so extreme that no
matter where we think we are today, we will be
in dramatically worse shape next year.
And again, this is not a bailout of
New York City. Because I need everyone in the
house and the public to remind themselves that
the City of New York still, in these tough
fiscal times, year in, year out, is sending
more than $3 billion more to Albany than is
2403
received back by the City of New York.
So I don't like this bill. And I
do think that we could have been standing here
today working together to come with up with a
better package. But my City Council has asked
for it, my Mayor has asked for it. And so I
will vote for the bill even though I am sorry,
as a legislator from New York City, that
Albany couldn't do better for the City of
New York this year, because we should have.
Thank you, Mr. President.
ACTING PRESIDENT MORAHAN: Thank
you.
Senator Sabini.
SENATOR SABINI: Thank you, Mr.
President. On the bill.
Let me say something on a positive
note first. The ability to charge absentee
landlords which is contained in this bill,
charge them a different kind of tax, is
something I've been talking about for the
better part of a decade. And it's very
important.
For those of you who don't know,
New York City's property is taxed based on its
2404
usage. And many of our neighborhoods have
seen one-family and two-family homes, which
are taxed at the lowest rate in New York City,
used as rental properties. And in fact, there
are speculators who have bought up lots of
one- and two-family homes and used them as
rental properties. Illegally, in many cases.
And yet the tax code in New York
encourages them to do that. And that's really
put many of our neighborhoods at risk. In
fact, this may come too late for some of them.
Further compounding that
transgression is the fact that much of the
rent is paid in cash in those properties, and
we never see revenue, tax revenue, from those
rentals as well, since in one- and two-family
homes they're not supposed to be rented in
many cases.
And the good part about this tax
policy is it may encourage the owners of those
properties to live in those properties. And
that encourages stable neighborhoods, it
encourages people to keep their property up
and make New York City's neighborhoods stable,
positive places to live and raise children.
2405
So that's something I worked on for
a long time in the City Council. I'm
delighted at least a portion of it is coming
to fruition.
But to echo the comments of my
colleague Senator Krueger, we should call this
"I Can't Believe It's Not an Aid Package." Or
"Aid Package Lite." Because other than the
conversion of the MAC bonds, which is really
just refinancing a home -- which every
New Yorker is basically doing now -- and other
than the restorations passed last week, which
went to every school district in the state and
every healthcare institution in the state, the
only thing in this package basically is
allowing New Yorkers to tax themselves,
New York City residents.
New York City residents now pay a
higher transit fare. They'll now be paying a
higher income tax. They're paying higher
sanitation fines, higher user fees for lots of
things. Rents are going up for stabilized
tenants. So that all we're doing here,
really, is allowing New Yorkers to bail
themselves out. There's no gift here from the
2406
state.
We are not even giving away --
somebody said it's like giving away cake and
cookies. We're not even doing that. We're
not even buying the ingredients for the cake
and cookies. We're driving someone to the
store to let them buy the ingredients and let
them bake the cake and cookies.
All we have here in this package
really is allowing the city residents to bail
themselves out. Now, if that's a bailout,
that's a new one on me.
ACTING PRESIDENT MORAHAN: Excuse
me, Senator.
Can we have a little order in the
house, please. Take your conversations
outside.
Senator Sabini.
SENATOR SABINI: This package is
a rather poor attempt at a life preserver for
the City of New York. Yes, it will help make
lives better for New Yorkers, and we're here
to make people's lives better.
And I applaud the courage and
feistiness of our Mayor, who has been
2407
advocating very strongly both for taxes he had
to raise and to get things moving up here for
his constituents' benefit. So I applaud Mayor
Bloomberg for supporting this package.
But I think we could have done
better, and I think in the future we will have
to do better. But for the time being, this is
the best idea put before us, and I'll be
casting my vote in the affirmative, despite
the fact that it's really spin to call it an
aid package. There's very little aid in here.
It's really the New York City residents aiding
themselves. And people should understand
that, both outside the city and within the
city.
Thank you, Mr. President.
ACTING PRESIDENT MORAHAN: Thank
you, Senator Sabini.
Senator Montgomery.
SENATOR MONTGOMERY: Yes, Mr.
President, thank you.
I too want to join my colleagues,
as a New York City representative, in saying
that on the one hand, as I have said about
other proposals in our house, it is a teaspoon
2408
of sugar and a cup of poison.
However, I'm happy even with the
poison. I was in the city this past weekend,
and the constituents that I spoke with and who
spoke to me, and people who have been here in
Albany this week and on the weekend, have said
that despite the fact that they know that
New York City residents will in fact suffer
more based on our revenue proposal, despite
that, they are in support of us doing this
legislation.
They want to be in a position to at
least save our city. Unfortunately, it is
going to cost New York City residents more to
save ourselves --
ACTING PRESIDENT MORAHAN: Excuse
me again, Senator Montgomery.
Can we please have some order in
the house. Take your conversations outside.
Thank you, Senator Montgomery.
SENATOR MONTGOMERY: Thank you,
Mr. President.
It's going to cost New York City
residents more to save ourselves, to dig
ourselves out of this terrible fiscal crisis.
2409
But we're resilient, and we're committed to
doing it.
And despite the fact that the
state, the Legislature is doing very little to
help the city, we're determined that we're
going to do it. And this only gives the Mayor
and the City Council the opportunity to devise
a plan by which, somehow, New York City will
come back.
So for that I'm grateful, despite
the fact that I and every other one of my
citizens, my co-citizens in the city, will
have to pay an awful lot more. Because
unfortunately, we're not getting it from the
federal government, we're not getting it fully
from the state, so we have to do it ourselves.
I thank you. I will be voting yes
on this legislation, because I know that it is
the last hope to keep New York City at least
afloat for now.
Thank you.
ACTING PRESIDENT MORAHAN: Thank
you, Senator Montgomery.
Senator Brown.
SENATOR BROWN: Thank you, Mr.
2410
President.
Many might wonder: Senator Brown,
why do you rise? You're not from New York
City. Clearly, I represent Buffalo and
Niagara Falls and Tonawanda and the town of
Grand Island. But I rise because I believe
strongly that New York City is important to
the entire state.
Clearly, after September 11th, that
point was brought home to us more clearly than
ever before when we saw the devastation that
occurred to New York City -- it not only
devastated New York City, but it devastated
the economy of all of New York State.
When we look at the revenue that is
generated in New York City and what that
revenue means to the rest of the state, I
rise, like colleagues have risen before me, to
indicate while this legislation does assist
New York City, I don't feel that it goes far
enough.
I'd like to offer a thought of
something that I think would have helped a
little bit more. Certainly it's very
controversial. But I do believe we should
2411
have looked at the commuter tax. I do believe
that when people are able to earn their
livelihood in a community, when they're able
to take resources out of a community and take
those resources back someplace else, there
should be some payment for the ability to do
that.
While this package does not include
that today, I do believe that's something that
has to be considered for the future, for not
only the fiscal health of New York City but
for the fiscal health and well-being of the
entire state of New York.
So I too will be voting in the
affirmative on this piece of legislation,
because it does allow New York City to help
itself. But I do feel it doesn't go as far as
we need it to go. And I'm hoping in the
future we will craft legislation that goes
even further.
Thank you.
ACTING PRESIDENT MORAHAN: Thank
you, Senator Brown.
Senator Lachman.
SENATOR LACHMAN: I now know more
2412
than ever what Winston Churchill meant when he
said: "Democracy is the worst form of
government, except for all the other
alternatives."
We have a bill here that isn't
perfect, a bill that can be improved. But
we're living in a democratic society, and we
are the representatives of people in this
society.
I have always been opposed and I
still am opposed to the imposition of
regressive sales tax upon the people of the
City of New York and indeed the people of the
State of New York. However, at the very same
time I realize I can't vote against the sales
tax and yet vote for this bill, which I think
is essential.
It's an omnibus bill. And it
allows the City of New York to increase sales
taxes that they deem appropriate. The
question is, why do they deem it to be
appropriate?
It would avoid another substantial
property increase, which would be devastating
to New York Cityites. It would also, and
2413
absolutely, avoid social cuts, service cuts,
and layoffs in health and human services and
education, which many of my colleagues have
spelled out and which I will not repeat.
In voting for this bill, I would
have hoped that a majority of our colleagues
four years ago would not have repealed the
commuter tax bill, because that would have
made up approximately $500 million. But they
did it. And we have to realize we're living
in a real world and not in a dream world, and
in this session we can't get the commuter tax
bill back again and changed. Maybe in a
future session.
But most importantly, I am also
voting for this bill for something that is not
in the bill. And that is a State Legislature
working together, Democrats and Republicans in
the State Senate and the State Assembly, for
the better good of the entire population of
the City of New York and the State of
New York. Compromising, because that's what
politics is about. Taking the heat, because
that is what politics is about. But voting
for this bill that is essential for the
2414
well-being of the City of New York and the
State of New York.
Thank you.
ACTING PRESIDENT MORAHAN:
Senator Ada Smith.
SENATOR ADA SMITH: Thank you,
Mr. President.
I too rise to list my concerns
about this particular bill. I do not have to
enumerate what is wrong with it.
I want to thank Senator Johnson,
Senator Bruno, for the effort that they put
into bringing forth a bill, along with my
colleague Senator Breslin, to ensure that the
City of New York would still be able to
survive.
And I'm greatly concerned because I
understand that there are impending layoffs of
some of our constituents -- in one local
alone, 2300 people. And if this can at least
stop our constituents from losing their jobs
and not being able to pay taxes, I will be in
favor of the bill.
And once again, I thank my
colleagues on the other side of the aisle, and
2415
I hope that we can have a continued working
relationship.
ACTING PRESIDENT MORAHAN: Thank
you, Senator Smith.
Any other Senator wish to be heard?
Senator Schneiderman.
SENATOR SCHNEIDERMAN: Thank you,
Mr. President.
With this bill we complete a cycle
of legislation to address the fiscal crisis
that the state and the city face. These are
not perfect bills, but I think that we all
recognize that the Legislature at least has
taken steps to address the crisis.
What I'd like to do is raise the
next issue on the agenda. I'm confident that
these bills will withstand a veto should the
Governor choose to exercise that power. But
we will be back to address other fiscal
problems in the very near future.
The solutions to our problems are
still beyond our grasp. The legislation we
passed last week and the legislation we're
passing today did not solve the state's fiscal
crisis, did not solve the city's fiscal
2416
crisis. They address critical needs at a
critical time. But we have more work to do.
And I would like to suggest, as has
been suggested by many in my conference --
Senator Paterson and others -- that there are
two things we need to put on the agenda for
the rest of this session and for next year as
we move forward.
After we've gotten these bills
through whatever additional hurdles we may
face, let's address the systematic
discrimination against the City of New York by
the state government. We haven't been able to
do it yet. It's still a crying need after
September 11th.
The city carries 81 percent of the
state's transit riders and gets 62 percent of
the transit aid. If you adjust for poverty,
we have 45 percent of the state's
schoolchildren and 37 percent of the state's
school aid. The revenue-sharing formula, if
the Governor would simply apply the formula as
required by statute, the city would be
receiving $1.78 billion of revenue-sharing aid
instead of $327 million.
2417
It is well known that the City of
New York sends billions of dollars more to our
state government every year than it gets back.
And it is time for us as a Legislature to
begin to address these problems.
What we're doing today enables the
city to survive. It does not enable the city
to prosper. And the state of New York cannot
succeed if the city of New York is not
prospering. We have more work to do to close
the city's budget gaps. And as soon as this
legislation is concluded and this cycle is
concluded, I would suggest that we have a lot
of work to do.
My final item for the agenda that's
before us is that I hope we can take steps to
make our tax system more progressive. We will
be here to deal with next year's fiscal
crisis, next year's budget gap, next year's
city budget gap. And I think we have to take
a look at our system of taxing with an eye to
restoring some of the progressivity that
existed a decade ago.
During the last eight years, we cut
taxes $13.5 billion. There would be
2418
$13.5 billion more in our coffers if we had
not enacted tax cuts over the last eight
years. Almost half of that, almost half of
the benefit of those tax cuts went to the top
5 percent of the population.
Now we've restored taxes, we've
taken painful steps that were necessary under
the circumstances, but we've restored more
regressive taxes. We've made the state a less
progressive state. Poor people are paying
more of their share, more of the cost of
running the state than they were a decade ago.
Middle-income people are paying more. It's
time for us to adjust that balance.
I don't think that anyone in the
State Legislature should feel any concern
about the criticisms that we may face from the
Executive on these issues, because the last
time I looked, every one of those budgets for
the last eight years the Governor was a
participant in the process that led us to the
situation we're in today.
I am confident, as I said, that the
bills we passed last week and today will
stand. We do have further work ahead. And I
2419
echo Senator Smith, I hope we can go forward
working together to solve the problems our
state and our city face. Because the City of
New York, even with this bill today, is in
very, very serious trouble.
And all those of us who represent
it and those of us who don't represent it,
like Senator Brown, but who recognize its
importance to our state, need to get to work,
solve the problems, and enable the city to do
more than survive, but to prosper.
Thank you, Mr. President.
ACTING PRESIDENT MORAHAN: Thank
you, Senator Schneiderman.
Any other Senator wish to be heard?
Senator Diaz.
SENATOR DIAZ: Thank you, Mr.
President.
I just rise to speak on the bill
and say that I am from New York City, from the
Bronx, South Bronx. And sometimes I feel that
I am a lonely voice in the desert.
But we are happy, some of us are
okay, we voted for something that we know is
not perfect. But even so, however, the City
2420
of New York will be taxing people. When I was
in the City Council, I asked the Mayor myself,
Mayor Bloomberg, "Why is it that if we are
looking for money and we keep taxing people,
why is it that we don't tax Con Edison when
Con Edison makes our streets put their wire
cables and uses our streets, and they pay no
taxes? Brooklyn Union Gas pay taxes. Why is
it that we're so afraid in the city to tax
Con Edison?"
Then I come here, and I'm in the
minority here, and it's very difficult for me
to present bills and to get them approved,
because I am in the minority Democratic
conference. However -- however, I've been
saying, and I will say it again, that we are
looking for money.
And I keep saying to those of you
that would like to listen, and would like to
act on, that when you purchase with credit
cards, the credit card charges you taxes. And
those taxes are sent to the credit card
company, and the credit card company sends the
taxes back to the merchants. And the
merchants are supposed to send the taxes to
2421
the state. However, those taxes, most of them
never got to the State Treasury. And we are
losing about $400 million in a year there.
Why don't you in the Majority
present a law to change the tax law to force
the credit card companies to send the taxes
back to the state, and we will get there
$400 million more to the treasury?
I'm voting for this budget, and I'm
honored to be part of this Senate that will be
helping the City of New York. But again, I
might be a lonely voice in the desert.
Thank you very much.
ACTING PRESIDENT MORAHAN: Thank
you, Senator Diaz.
Senator Hoffmann.
SENATOR HOFFMANN: Thank you, Mr.
President.
You know, in Central New York we
have a fondness for New York City and an
affection and an understanding of some of the
pain that New York City experienced after
9/11, like everybody else does. But we've
also come to feel much more closeness with
New York City in recent years.
2422
And I want to compliment Mayor
Bloomberg for being willing to reach out to
New York agriculture. This is an
administration that has made a decision to
showcase the bounty of New York's harvest at
public events and even at private events in
the Mayor's own home. New York wines are
exclusively served in Gracie Mansion and for
Mayor Bloomberg's personal activities.
I take that as a great sign of the
kind of solidarity and mutual respect that
this state and New York City need to continue
displaying for each other as we go forward.
There are issues that will come
before this chamber in months ahead where I
will ask for the support of some of my
colleagues who represent New York City on
behalf of New York's number-one industry. And
just as we today have attempted to be as
responsive as we can to New York City's needs
with special legislation, I know I will be
able to count on my colleagues to help upstate
New York through its economic crisis as well
on the farms.
Thank you, Mr. President.
2423
ACTING PRESIDENT MORAHAN: Thank
you, Senator Hoffmann.
Any other Senator wish to be heard
on the bill?
Read the last section.
THE SECRETARY: Section 3. This
act shall take effect immediately.
ACTING PRESIDENT MORAHAN: Call
the roll.
(The Secretary called the roll.)
SENATOR PATERSON: Party vote in
the affirmative.
SENATOR BRUNO: Party vote in the
affirmative.
ACTING PRESIDENT MORAHAN:
Announce the results.
THE SECRETARY: Ayes, 60.
ACTING PRESIDENT MORAHAN: The
bill is passed.
SENATOR DUANE: Mr. President.
ACTING PRESIDENT MORAHAN:
Senator Duane.
SENATOR DUANE: Thank you, Mr.
President. I'd like unanimous consent to be
recorded in the negative on Calendar Number
2424
463 and 532.
ACTING PRESIDENT MORAHAN: So
ordered.
Senator Bruno.
SENATOR BRUNO: Mr. President,
can we return to reports of standing
committees.
And I believe that there are some
reports of some of the standing committees,
and I ask that they be read at this time.
ACTING PRESIDENT MORAHAN: The
Clerk will read.
THE SECRETARY: Senator McGee,
from the Committee on Alcoholism and Drug
Abuse, reports the following bill:
Senate Print 4873, by Senator
McGee, an act to amend Chapter 533 of the Laws
of 1993.
And Senator Leibell, from the
Committee on Corporations, Authorities and
Commissions, reports:
Senate Print 3985A, by Senator
Volker, an act to amend the Public Authorities
Law and the Education Law.
Both bills ordered direct to third
2425
reading.
ACTING PRESIDENT MORAHAN:
Without objection, both bills are reported
directly to third reading.
Senator Montgomery.
SENATOR MONTGOMERY: Yes, Mr.
President, I would like unanimous consent to
be recorded in the negative on Calendar 462.
ACTING PRESIDENT MORAHAN:
Without objection, Senator Montgomery will be
recorded in the negative on Calendar 462.
SENATOR MONTGOMERY: Thank you.
ACTING PRESIDENT MORAHAN:
Senator Duane.
SENATOR DUANE: Thank you, Mr.
President. Just to clarify, I'm sorry, I
misspoke. I'd like unanimous consent to be
recorded in the negative on Calendar Number
453 and 532.
ACTING PRESIDENT MORAHAN:
Senator Duane will be recorded in the negative
on Calendar 453 and 532.
Senator Skelos.
SENATOR SKELOS: Mr. President,
is there any housekeeping at the desk?
2426
ACTING PRESIDENT MORAHAN: There
is no housekeeping at the desk, Senator.
SENATOR SKELOS: Before we
adjourn, I'd like to announce that there will
be an immediate conference of the Majority in
the Majority Conference Room.
ACTING PRESIDENT MORAHAN: There
will be an immediate meeting of the Majority
in the Majority Conference Room.
SENATOR SKELOS: And there being
no further business, I move we stand adjourned
until Wednesday, May 7th, at 11:00 a.m.
ACTING PRESIDENT MORAHAN: On
motion, the Senate will be adjourned until
Wednesday, May 7th, 11:00 a.m.
(Whereupon, at 4:24 p.m., the
Senate adjourned.)