Regular Session - August 2, 2004
5540
NEW YORK STATE SENATE
THE STENOGRAPHIC RECORD
ALBANY, NEW YORK
August 2, 2004
3:20 p.m.
REGULAR SESSION
SENATOR PATRICIA K. McGEE, Acting President
STEVEN M. BOGGESS, Secretary
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P R O C E E D I N G S
ACTING PRESIDENT McGEE: The
Senate will 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.)
ACTING PRESIDENT McGEE: In the
absence of clergy, may we bow our heads in a
moment of silence.
(Whereupon, the assemblage
respected a moment of silence.)
ACTING PRESIDENT McGEE: Reading
of the Journal.
THE SECRETARY: In Senate,
Sunday, August 1, the Senate met pursuant to
adjournment. The Journal of Saturday,
July 31, was read and approved. On motion,
Senate adjourned.
ACTING PRESIDENT McGEE: Without
objection, the Journal stands approved as
read.
Presentation of petitions.
Messages from the Assembly.
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Messages from the Governor.
Reports of standing committees.
Reports of select committees.
Communications and reports from
state officers.
Motions and resolutions.
Senator Fuschillo.
SENATOR FUSCHILLO: Thank you,
Madam President.
On behalf of Senator Robach, I wish
to call up Senate Print Number 3277, recalled
from the Assembly, which is now at the desk.
ACTING PRESIDENT McGEE: The
Secretary will read.
THE SECRETARY: Calendar Number
1579, by Senator Robach, Senate Print 3277, an
act to amend the Retirement and Social
Security Law.
SENATOR FUSCHILLO: I now move to
reconsider the vote by which the bill was
passed.
ACTING PRESIDENT McGEE: The
Secretary will call the roll on
reconsideration.
(The Secretary called the roll.)
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THE SECRETARY: Ayes, 52.
SENATOR FUSCHILLO: I now move to
recommit the bills to the Committee on Rules.
ACTING PRESIDENT McGEE: So
ordered.
SENATOR FUSCHILLO: Madam
President, on behalf of Senator McGee, I wish
to call up Senate Print Number 7117, recalled
from the Assembly, which is now at the desk.
ACTING PRESIDENT McGEE: The
Secretary will read.
THE SECRETARY: Calendar Number
1492, by Senator McGee, Senate Print 7117, an
act to amend the Real Property Tax Law.
SENATOR FUSCHILLO: I now move to
reconsider the vote by which the bill was
passed.
ACTING PRESIDENT McGEE: The
Secretary will call the roll on
reconsideration.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 52.
SENATOR FUSCHILLO: I now move to
recommit the bill to the Committee on Rules.
ACTING PRESIDENT McGEE: So
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ordered.
Senator Skelos.
SENATOR SKELOS: Madam President,
if we could adopt the Resolution Calendar at
this time.
ACTING PRESIDENT McGEE: All
those in favor of adopting the Resolution
Calendar in its entirety will signify by
saying aye.
(Response of "Aye.")
ACTING PRESIDENT McGEE: Opposed,
nay.
(No response.)
ACTING PRESIDENT McGEE: The
Resolution Calendar is adopted.
Senator Skelos.
SENATOR SKELOS: Madam President,
there's a resolution at the desk by Senator
McGee. May we have the title read and move
for its immediate adoption.
ACTING PRESIDENT McGEE: The
Secretary will read.
THE SECRETARY: By Senator McGee,
Legislative Resolution Number 5950,
commemorating the 30th Anniversary of the
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Cummins, Inc., Jamestown Engine Plant.
ACTING PRESIDENT McGEE: All in
favor of adopting the resolution will signify
by saying aye.
(Response of "Aye.")
ACTING PRESIDENT McGEE: Opposed,
nay.
(No response.)
ACTING PRESIDENT McGEE: The
resolution is adopted.
Senator Skelos.
SENATOR SKELOS: Madam President,
there will be an immediate meeting of the
Rules Committee in the Majority Conference
Room.
And then if the Senate could stand
at ease.
ACTING PRESIDENT McGEE:
Immediate meeting of the Rules Committee in
the Senate Majority Conference Room.
The Senate will stand at ease.
(Whereupon, the Senate stood at
ease at 3:24 p.m.)
(Whereupon, the Senate reconvened
at 3:41 p.m.)
5546
ACTING PRESIDENT McGEE: Senator
Skelos.
SENATOR SKELOS: Madam President,
there will be an immediate meeting of the
Finance Committee in the Majority Conference
Room.
ACTING PRESIDENT McGEE:
Immediate meeting of the Finance Committee in
the Majority Conference Room.
Senator Skelos.
SENATOR SKELOS: Madam President,
at this time if we could return to reports of
standing committees.
I believe there's a report of the
Rules Committee at the desk. I ask that it be
read.
ACTING PRESIDENT McGEE: Reports
of standing committeees.
The Secretary will read.
THE SECRETARY: Senator Bruno,
from the Committee on Rules, reports the
following bills:
Senate Print 5504A, by Senator
Oppenheimer, an act to amend the Public
Authorities Law;
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6246A, by Senator Robach, an act to
amend the Town Law;
7379, by Senator Golden, an act to
amend the Real Property Law;
7523C, by Senator Rath, an act
authorizing the president of the State
University of New York;
7690, by Senator Skelos, an act to
amend Chapter 416 of the Laws of 1999;
7692, by Senator Spano, an act to
amend the Public Health Law;
7696, by Senator Skelos, an act to
amend a chapter of the Laws of 2004 amending
the Education Law;
Senate Print 7697, by Senator
Little, an act to amend a chapter of the Laws
of 2004;
Senate Print 7698, by Senator Kuhl,
an act in relation to amending state
construction and commodity contracts;
And Senate Print 7699, by the
Senate Committee on Rules, an act to amend the
Racing, Pari-Mutuel Wagering and Breeding Law.
All bills ordered direct to third
reading.
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Senator Skelos.
SENATOR SKELOS: Madam President,
I move to accept the report of the Rules
Committee.
ACTING PRESIDENT McGEE: All in
favor of accepting the report of the Rules
Committee will signify by saying aye.
(Response of "Aye.")
ACTING PRESIDENT McGEE: Opposed,
nay.
(No response.)
ACTING PRESIDENT McGEE: The
Rules Committee report is accepted.
SENATOR SKELOS: If we could just
stand at ease, I think we're going to be
circulating the calendar. And then we'll take
up the Rules calendar.
ACTING PRESIDENT McGEE: The
Senate will stand at ease.
(Whereupon, the Senate stood at
ease at 3:44 p.m.)
(Whereupon, the Senate reconvened
at 3:50 p.m.)
ACTING PRESIDENT McGEE: Senator
Skelos.
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SENATOR SKELOS: Madam President,
if we could take up Senate Calendar Number 62,
noncontroversial.
ACTING PRESIDENT McGEE: The
Secretary will read the noncontroversial
calendar.
THE SECRETARY: In relation to
Calendar Number 1041, Senator Robach moves to
discharge, from the Committee on Rules,
Assembly Bill Number 10294A and substitute it
for the identical Senate Bill Number 6246A,
Third Reading Calendar 1041.
ACTING PRESIDENT McGEE:
Substitution ordered.
The Secretary will read.
THE SECRETARY: Calendar Number
1041, by Member of the Assembly Morelle,
Assembly Print Number 10294A, an act to amend
the Town Law.
ACTING PRESIDENT McGEE: Read the
last section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
ACTING PRESIDENT McGEE: Call the
roll.
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(The Secretary called the roll.)
THE SECRETARY: Ayes, 58.
ACTING PRESIDENT McGEE: The bill
is passed.
THE SECRETARY: Calendar Number
1754 --
ACTING PRESIDENT McGEE: Senator
Skelos.
SENATOR SKELOS: Madam President,
on behalf of Senator Rath, I'd like to have
Calendar Number 1754 recommitted to the
Committee on Rules.
ACTING PRESIDENT McGEE: So
ordered.
The Secretary will continue to
read.
THE SECRETARY: In relation to
Calendar Number 1895, Senator Oppenheimer
moves to discharge, from the Committee on
Rules, Assembly Bill Number 8976A and
substitute it for the identical Senate Bill
Number 5504A, Third Reading Calendar 1895.
ACTING PRESIDENT McGEE:
Substitution ordered.
The Secretary will read.
5551
THE SECRETARY: Calendar Number
1895, by the Assembly Committee on Rules,
Assembly Print Number 8976A, an act to amend
the Public Authorities Law.
ACTING PRESIDENT McGEE: There is
a home-rule message at the desk.
Read the last section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
ACTING PRESIDENT McGEE: Call the
roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 58.
ACTING PRESIDENT McGEE: The bill
is passed.
THE SECRETARY: In relation to
Calendar Number 1897, Senator Golden moves to
discharge, from the Committee on Rules,
Assembly Bill Number 11219 and substitute it
for the identical Senate Bill Number 7379,
Third Reading Calendar 1897.
ACTING PRESIDENT McGEE:
Substitution ordered.
The Secretary will read.
THE SECRETARY: Calendar Number
5552
1897, by the Assembly Committee on Rules,
Assembly Print Number 11219, an act to amend
the Real Property Law.
ACTING PRESIDENT McGEE: Read the
last section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
ACTING PRESIDENT McGEE: Call the
roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 58.
ACTING PRESIDENT McGEE: The bill
is passed.
THE SECRETARY: Calendar Number
1898, by Senator Skelos, Senate Print 7690, an
act to amend Chapter 416 of the Laws of 1999
amending the Public Health Law and the
Education Law.
ACTING PRESIDENT McGEE: Read the
last section.
THE SECRETARY: Section 3. This
act shall take effect January 1, 2005.
ACTING PRESIDENT McGEE: Call the
roll.
(The Secretary called the roll.)
5553
THE SECRETARY: Ayes, 58.
ACTING PRESIDENT McGEE: The bill
is passed.
THE SECRETARY: Calendar Number
1899, by Senator Spano, Senate Print 7692, an
act to amend the Public Health Law, in
relation to the reporting of the number of
maternity patients.
ACTING PRESIDENT McGEE: Read the
last section.
THE SECRETARY: Section 4. This
act shall take effect on the same date and in
the same manner as a chapter of the Laws of
2004.
ACTING PRESIDENT McGEE: Call the
roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 58.
ACTING PRESIDENT McGEE: The bill
is passed.
THE SECRETARY: Calendar Number
1900, by Senator Skelos, Senate Print 7696, an
act to amend a chapter of the Laws of 2004
amending the Education Law.
ACTING PRESIDENT McGEE: Read the
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last section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
ACTING PRESIDENT McGEE: Call the
roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 58.
ACTING PRESIDENT McGEE: The bill
is passed.
THE SECRETARY: Calendar Number
1901, by Senator Little, Senate Print 7697, an
act to amend a chapter of the Laws of 2004,
relating to an exemption from the tax on
admission charges.
ACTING PRESIDENT McGEE: Read the
last section.
THE SECRETARY: Section 2. This
act shall take effect on the same date and in
the same manner as a chapter of the Laws of
2004.
ACTING PRESIDENT McGEE: Call the
roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 58.
ACTING PRESIDENT McGEE: The bill
5555
is passed.
THE SECRETARY: Calendar Number
1902, by Senator Kuhl, Senate Print 7698 --
SENATOR SCHNEIDERMAN: Lay it
aside.
ACTING PRESIDENT McGEE: The bill
is laid aside.
THE SECRETARY: Calendar Number
1903, by the Senate Committee on Rules --
SENATOR SCHNEIDERMAN: Lay it
aside.
ACTING PRESIDENT McGEE: The bill
is laid aside.
Senator Skelos, that completes the
noncontroversial reading of the calendar.
SENATOR SKELOS: Thank you, Madam
President. If we could go to the
controversial reading of the calendar.
ACTING PRESIDENT McGEE: The
Secretary will read.
THE SECRETARY: Calendar Number
1902, by Senator Kuhl, Senate Print 7698, an
act in relation to amending state construction
and commodity contracts.
SENATOR SCHNEIDERMAN:
5556
Explanation.
ACTING PRESIDENT McGEE: Senator
Kuhl, an explanation has been requested.
SENATOR KUHL: Thank you, Madam
President.
This is a bill that we have been
putting together and working on for a couple
of months now that has come about as the
result of the unforeseen emergency of
unanticipated escalation of steel prices in
the construction industry.
We have seen, in the last year,
most notably in the last six months, steel
price increases of 40, 50, 60, 70 percent.
And what that has done, it has caused some
contractors who have done public bidding with
the State of New York to be put in the
position of either defaulting on the contract
for fear of going through bankruptcy or
eventually going through with the contract and
then suffering through bankruptcy.
So what we've done is come up with
a bill that essentially allows for an
adjustment for the contractual and bid price.
With the help of the Comptroller of the State
5557
of New York, we have built in a price index
that will allow for an adjustment based on
that index to accommodate for these escalating
prices.
Now, this bill deals with
purchases -- or I should say steel or
materials that were purchased or invoiced
after December 1st and on bids that were put
forth prior to April 15, 2004.
This primarily came out of the
contractual arrangements dealing in the
transportation industry. And that's why I am
carrying the bill, as the chairman of the
Transportation Committee in the Senate.
But it relates now to all of the
agencies throughout the entire state, so it's
not specific to transportation alone. It
could be dealing with colleges or other types
of situations that the state finds itself in
where the steel price escalation has caused
serious problems with the construction
industry here in New York.
SENATOR SCHNEIDERMAN: The
explanation is satisfactory.
ACTING PRESIDENT McGEE: Read the
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last section.
THE SECRETARY: Section 4. This
act shall take effect immediately.
ACTING PRESIDENT McGEE: Call the
roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 58.
ACTING PRESIDENT McGEE: The bill
is passed.
THE SECRETARY: Calendar Number
1903, by the Senate Committee on Rules, Senate
Print Number 7699 --
SENATOR MALCOLM SMITH:
Explanation.
ACTING PRESIDENT McGEE: An
explanation has been requested, Senator
Larkin.
SENATOR LARKIN: This is a very
simple bill that we had talked about last
year. And this year it was refined to be more
delineative and more specific. It authorizes
the issuance of free passes, cards and badges
at racetracks to spouses, domestic partners
and children of owners, trainers and jockeys.
This defines it; it limits it.
5559
This is something that they have all agreed on
that it should be specific. And I think
you'll all understand that it is specific.
Thank you.
SENATOR SCHNEIDERMAN: Thank you.
ACTING PRESIDENT McGEE: Read the
last section.
THE SECRETARY: Section 2. This
act shall take effect immediately.
ACTING PRESIDENT McGEE: Call the
roll.
(The Secretary called the roll.)
THE SECRETARY: Ayes, 58.
ACTING PRESIDENT McGEE: The bill
is passed.
Senator Bruno, that completes the
controversial reading of the calendar.
SENATOR BRUNO: Madam President,
can we at this time return to reports of
standing committees.
I believe there's a report from the
Finance Committee at the desk. I ask that it
be read at this time.
ACTING PRESIDENT McGEE: Reports
of standing committees.
5560
The Secretary will read the report
of the Finance Committee.
THE SECRETARY: Senator Johnson,
from the Committee on Finance, reports the
following bills:
Senate Print 7700, by the Senate
Committee on Rules, an act making
appropriations for the support of government;
And Senate Print 7701, by the
Senate Committee on Rules, an act to amend
Chapter 62 of the Laws of 2003.
Both bills ordered direct to third
reading.
ACTING PRESIDENT McGEE: Without
objection, all bills are ordered directly to
third reading.
Senator Bruno.
SENATOR BRUNO: This is the
emergency bill. I think Senator -- oh, we
have to get the bill on the floor, Madam
President. I stand corrected.
Our learned counsel was not in his
seat.
(Laughter.)
SENATOR BRUNO: Learned counsel
5561
is now in his seat. On his seat.
And can we at this time take up
Calendar Number 1904.
ACTING PRESIDENT McGEE: Thank
you.
The Secretary will read.
THE SECRETARY: Calendar Number
1904, by the Senate Committee on Finance,
Senate Print 7700, an act making
appropriations for the support of government.
ACTING PRESIDENT McGEE: Senator
Bruno.
SENATOR BRUNO: Is there a
message of necessity and appropriation at the
desk?
ACTING PRESIDENT McGEE: Yes,
Senator Bruno, there is a message.
SENATOR BRUNO: I would move that
we accept the message of necessity and
appropriation.
ACTING PRESIDENT McGEE: All in
favor of accepting the message of necessity
and appropriation signify by saying aye.
(Response of "Aye.")
ACTING PRESIDENT McGEE: Opposed
5562
say nay.
(Response of "Nay.")
ACTING PRESIDENT McGEE: The
message is accepted.
Read the last section.
SENATOR SCHNEIDERMAN:
Explanation.
ACTING PRESIDENT McGEE: Senator
Volker.
SENATOR VOLKER: I know I don't
look like Owen Johnson. But Owen has not been
able to be here, so I have been asked to try
to explain this bill.
This bill appropriates
$23.2 billion -- probably, in all honesty, the
largest single bill outside of a budget that
we probably have ever passed. And the bill
extends the state financing until
September 12th, the payroll financing to
September 16th. Because, of course, although
we don't get paid, as we all know, our staffs
do, and a lot of other people get paid.
In this bill is basically the
entire appropriation for the rest of the year
for school aid, including an additional
5563
$555 million, I believe, which is the amount
that has been tentatively agreed upon by the
Senate and the Assembly in additional aid over
last year. That's 555 in fiscal number; 740,
calendar numbers.
There is a series of additional
amounts in here -- 4 billion for Medicaid --
and many other amounts, including the
additional money for TAP. We fixed the
so-called TAP problem. And that's -- it
basically is a bill that keeps us going until
September 12th.
We would certainly hope that in a
much shorter time that we'll be able to
negotiate the budget. But the idea here is to
make sure that everyone knows what they can
expect to have. Not everything, of course, is
in here, because we're not passing a budget
yet. So there are still some things that need
to be done.
But it is believed, according to
the Governor -- because this bill was sent to
us by the Governor -- that the amount of money
involved here will continue the operations of
government at a substantial level until we can
5564
finally get the budget done.
ACTING PRESIDENT McGEE: Senator
Schneiderman.
SENATOR SCHNEIDERMAN: Through
you, Madam President, if the sponsor would
yield.
SENATOR VOLKER: Yes, certainly.
ACTING PRESIDENT McGEE: Senator
Volker yields.
SENATOR SCHNEIDERMAN: You
mentioned earlier that this bill includes
$550 million dollars in additional funding.
Could you please explain, $550 million in
addition to what? What's that on top of?
SENATOR VOLKER: We're talking
about over and above last year's --
essentially, last year's budget.
In other words, what we have been
funding, as you well know, is we've been using
last year's numbers. One of the things I
think most people don't realize is that we
actually continue last year's budget until,
what is it, October, I believe, or -- yeah,
September, from last year's budget.
But what we're doing here is we're
5565
adding additional money over and above that,
based on the fact that there has been a
tentative agreement between the Senate and the
Assembly as to the additional money that will
be provided to school districts.
Although -- and your next question
probably will be exactly how it will be spent,
and the answer is there has not been an
agreement yet on dividing out the money.
There has not been an agreement on a formula.
So the answer is we don't know yet.
SENATOR SCHNEIDERMAN: Through
you, Madam President, if the sponsor would
continue to yield.
SENATOR VOLKER: Why, certainly.
ACTING PRESIDENT McGEE: Senator
Volker, will you continue to yield?
SENATOR VOLKER: Sure.
ACTING PRESIDENT McGEE: The
Senator yields.
SENATOR SCHNEIDERMAN: As I read
this legislation, it appears to allocate, in
fact, $146 million more than was allocated for
school aid last year. So I'm having a little
bit of difficulty understanding whether you're
5566
talking about in addition to the Executive
proposal released in January or you're talking
about the actual funds allocated for the
2003-2004 school year.
Could you please clarify that?
SENATOR VOLKER: I think the
appropriations are on top of the Executive
appropriations, which I think were
$146 million, if I'm not mistaken --
$147 million.
And what we've done here is
appropriated an additional $555 million over
and above that appropriation.
SENATOR SCHNEIDERMAN: Through
you, Madam President, if the sponsor would
continue to yield.
SENATOR VOLKER: Certainly.
ACTING PRESIDENT McGEE: Senator
Volker, will you continue to yield?
SENATOR VOLKER: Certainly.
SENATOR SCHNEIDERMAN: Is it not
correct that the Governor's proposal in
January -- which is serving, I understand, as
the floor for these additions -- included the
$240 million revenue from video lottery
5567
terminals that is a part of this $550 million
that is supposedly being added?
SENATOR VOLKER: He didn't
appropriate those funds, and -- that is not in
here, if that's what you're talking about.
And he did not actually appropriate
those funds. That is a proposal, if I'm not
mistaken, that came later.
ACTING PRESIDENT McGEE: Senator
Bruno.
SENATOR BRUNO: Madam President,
to Senator -- you're talking, I believe, about
the educational funds that are in this
$23 billion bill.
The intent of this was that the
Governor had submitted 148 in his budget. He
submitted $325 million set aside for CFE,
subject to VLT monies flowing.
This wraps all of that up into a
total of about $740 million, $555 million
fiscal year. So it wraps all of that in the
number that's here -- all of this being
subject to a budget getting adopted by the
Legislature.
So these dollars, while they're in
5568
the emergency bill, are not allocated
specifically, but the intent is that we all
know that tax bills are going out on
August 16th -- Nassau, the 15th -- trying to
get in front of that process.
ACTING PRESIDENT McGEE: Senator
Schneiderman.
SENATOR SCHNEIDERMAN: Thank you,
Madam President. Thank the Majority Leader
for his clarification.
Through you, if the sponsor would
continue to yield.
ACTING PRESIDENT McGEE: Senator
Volker, do you continue to yield?
SENATOR VOLKER: Sure.
ACTING PRESIDENT McGEE: The
Senator yields.
SENATOR SCHNEIDERMAN: Coming
back to the question that the sponsor
anticipated, can you tell us -- the portion of
this six-week budget extender that in fact
allocates funding for the entire 2004-2005
school year, can you tell us what the increase
or decrease in funding is for the City of New
York over last year's education budget?
5569
SENATOR VOLKER: No, I can't do
that, because we have not broken it out yet.
That is one of the things we'll do when we do
the formula.
So we can't give you the -- in
fact, if I'm not mistaken, there is supposed
to be some filings in the next couple of days
with the CFE -- with the court, relating to
the CFE agreement. And one of the things that
will be discussed is that.
But all -- what this budget does,
or this budget bill or emergency bill, it
appropriates the money to be available,
subject to an agreement.
And by the way, one clarification.
You had mentioned VLTs. There is $240 million
in here, and I apologize, from existing VLTs.
There's no additional money. The Governor
discussed additional money to put in to help
fund the CFE decision. But that -- the money
that is appropriated within here is
appropriated from existing VLTs, which I think
is $240 million, something of that nature.
ACTING PRESIDENT McGEE: Senator
Schneiderman.
5570
SENATOR SCHNEIDERMAN: And
through you, Madam President, will the sponsor
yield for a final question?
SENATOR VOLKER: Sure.
ACTING PRESIDENT McGEE: Senator
Volker continues to yield.
SENATOR SCHNEIDERMAN: Can you
tell us, since this $240 million for VLTs is
supposed to be a part of funding the sound,
basic education grants, how close the VLT
revenue is this year to the Governor's
projection, the $240 million that was provided
to us in January?
SENATOR VOLKER: We really don't
have an estimate. We can't tell you. I
understand the VLT revenues are running pretty
well. But I really can't tell you about that.
That's something we'll discover probably
shortly.
SENATOR SCHNEIDERMAN: Thank you,
Madam President. Thank the sponsor. Thank
his aides and assistants.
I'd like to speak on the bill.
ACTING PRESIDENT McGEE: Senator
Schneiderman, on the bill.
5571
SENATOR SCHNEIDERMAN: This is a
bill that we really need to address in two
parts. The first part is a six-week budget
extender. We will now, it's pretty clear,
break the New York State record for late
budgets.
This is a bill, even if you take
out the school aid, that's larger than the
budget of 26 states. So we have now
degenerated, as noted by our Majority Leader
earlier this session, to the point that we're
governing the State of New York by extenders
and passing massive budget bills without going
through even the minimal process that's
ordinarily provided for our budget bills.
I think that the fact that this is
a six-week extender -- and I realize that
there's some discussion of us coming back, but
a six-week extender sends the wrong message.
We should be staying here, as Senator Paterson
has repeatedly noted, until we finish the
state budget.
There's no -- I have worked for a
lot of organizations, I represented a lot of
large corporations, I represented large
5572
corporations that were being sued for
incompetence and fraud, and I have never seen
anything like this in my life. This is the
worst-functioning large organization as far as
allocation of funds and disbursements of
massive amounts of funds that I've ever worked
in or represented.
The second part of this bill is the
school aid bill, which essentially adopts the
Executive proposal for school aid for the
2004-2005 year and adds some funds on top of
that. The total number, the total amount of
money allocated for school aid, however, is
only 1 percent greater than the amount
allocated last year. The rate of inflation
over the last year was 3 percent. So this is
a net cut to the school districts of the
state.
We can't tell how much is being cut
for each of our school districts because this
legislation doesn't specify where the money
will be spent. We don't know how much money
is being add or cut for Yonkers, for Syracuse,
for the City of New York, for the City of
Albany. That's not in here. We're being
5573
asked to vote on a school aid package for the
'04-'05 fiscal year without knowing how much
is going where.
And of the additional new money
that is being added to the Governor's original
Executive proposal, which we were provided
with in January, some of that is this VLT
money, $240 million projected by the Governor.
According to the Division of the Lottery, the
VLT revenues are currently running at only
65 percent of the projections at the beginning
of the year. So that money we know is not
really there.
And while we're adding some new
state money, the money for what's called
categorical grants is not in here. It's not
in here. The Governor's bill which he's
submitted to us, and we're happy to share
blame, doesn't have in it money for teacher
centers, for teacher-mentor interns, for
teacher support. That's just not in this
bill. That was a $320 million pool of funds,
and that's been cut.
So we're adding some money we know
is not there, from the video lotteries, we're
5574
adding some other money, but we're taking away
$320 million in categorical grants. And the
total package does not keep up with the rate
of inflation.
Now, I appreciate the sincerity of
the Majority Leader's statement that we want
to pass a budget. But this bill for the
school districts that are not the Big Five
creates -- it doesn't just create a floor, it
creates a ceiling. This is what they -- you
know, this is what they're getting.
And we may add money in some areas,
but given the degeneration of the process
here -- and again, this is not the fault
solely of the people in this chamber, it's
everyone in the building -- the degeneration
of the process is to the point that I don't
know that the people of the State of New York
have a lot of confidence that we are going to
get the job done and pass a budget restoring
all this money.
I do know that this bill that is
before us today would provide a six-week
extender, which I cannot vote for. And I do
know that this bill only provides a 1 percent
5575
increase of school funding overall for the
state and it doesn't tell us where the money
goes.
Now, remember 2001. Remember the
bare-bones budget that we never got back to?
When you pass a bare-bones budget, sometimes
that's what you have to live with. I think
that we have missed the mark.
I understand that the plaintiffs in
the CFE case are back in court now and that
there is a letter that has been sent on behalf
of the state opposing the appointment of a
special master.
The letter that was sent to the
court on July 30th argues, and I guess
anticipating this bill, that "defendants have
developed and proposed a comprehensive
legislative compliance plan based on the
recommendations of the bipartisan New York
State Commission on Education Reform and
embodied in program legislation proposed by
the Governor."
This is an effort to give cover to
the Governor's shameful resistance to the CFE
case. The court in the CFE case found in
5576
excruciating detail that we have failed
hundreds of thousands of children in the City
of New York, that they don't have adequate
classroom space, that they don't have enough
trained teachers, that they are working in
conditions that are absolutely deplorable.
And I assure you -- and I'm
familiar with this litigation from my years as
a lawyer predating my time in the Senate --
that there's no possibility of the Governor's
proposal, even with the little bit of addition
that we've added, meeting the standards that
were set by the Court of Appeals in the CFE
case.
We are setting the stage for a
special master. And I would particularly urge
my colleagues from other parts of the state
other than New York City, the special master
only has jurisdiction to order additional
funds for the City of New York. I know other
cities are filing lawsuits. But this is
hanging out to dry every other high-needs
school district in the state.
I'm going to vote no on this. I
recommend everyone vote no. I hope the
5577
Majority Leader's optimistic view that we are
coming back to get a budget done soon is
correct. But I do remember 2001, when we
thought we were coming back and we never did.
Thank you, Madam President. I will
be voting no.
ACTING PRESIDENT McGEE: Senator
Volker.
SENATOR VOLKER: Madam
President -- and I will certainly try to be
brief -- Senator, I -- and I don't like to
dispute your numbers, but I think the problem
that your staff had in coming up with the
1 percent is it's actually 5 percent. And the
reason has to do with the difference between
fiscal-year basis and calendar-year basis.
The calendar year is $740 million, not
$555 million, so that in reality it's
5 percent.
Not that I think that's a big deal,
because you mentioned the additional money
that -- in the special grants which may well
be part of a budget agreement. Those are
things that we sometimes don't even talk
about, because they fold into next year and so
5578
forth. I'm not an expert on this stuff.
But I'm always fascinated by the
process -- and I hope Senator Bruno won't get
too upset when I say that I'm going to use Ron
Stafford's own line, because I think it's
important: You can lead a horse to water, but
you cannot make him brush his teeth.
And the reason that's important is
Joe Bruno's problem -- Senator Bruno -- and
our problem is that a group of legislators in
the Assembly from New York City have
decided -- and this is a democracy, something
that's hard for some in the media to
understand. In a democracy, a group of
legislators can stop things. The way Long
Island did years ago, by the way, stopped
their budget process on school aid for many
years.
Those people in the Assembly --
and, you know, what they have done is said,
We're not going to negotiate. You can do
anything you want, but we're not going to
negotiate. So they've stood there and said,
Oh, we'll talk to you, but we're not going to
complete an agreement until after a master is
5579
appointed.
Okay, what does Senator Bruno do?
He tries his best. Should we sit here day
after day after day and argue with each other?
And the answer is that's silly.
But I want to warn my colleagues
from New York City. My only warning is this.
I use, from my constituents, that this is like
"Gunfight at the O.K. Corral." This is
really, to a certain extent, a result of 9/11.
This is not about reform. It's about the
Jerry Maguire "show me the money." This is an
attempt to pour money into the city on
education, a system which we know is broken.
On the other hand, we cannot seem
to get any judge or anybody to do anything
about that New York City school system. We
got rid of the Wicks Law. People said, Oh, my
gosh, now we'll save money. The cost of
construction in New York City doubled within a
few years.
I can only say -- and let me just
finish. And I'm -- I guess I'm getting off my
frustration. I told my constituents: Look,
we are not going to have -- the majority of
5580
the money for school aid in this state comes
from suburban districts around New York City,
Long Island, and upstate. The judge who made
this decision full well knew that those
districts could lose a ton of money that would
go to the city. We are not going to allow
that to happen.
Many of us from upstate are ready
to stay here all year, if we have to, to make
sure that our constituents, who pay most of
the education money to start with, are not
fouled up so that our tax system rises a
dramatic amount.
And it's hard to understand,
because New York City people have a tendency
to send out these messages that said, well, we
provide most of the money. That is baloney.
Most of the money for income tax and real
property money -- because real property taxes
in New York City are extremely low -- we pay
it.
And my problem is, and I'm speaking
for myself now, I firmly believe that we
should fund New York City as much as we can.
But let's make one thing clear. There is no
5581
evidence that more money will do a better job
with kids in New York City. We already give a
lot more money than the percentage of students
who are actually being taught. So fine. And
we want to help New York City. But we also
want to make sure that the rest of the state
is also financed in a proper way.
ACTING PRESIDENT McGEE: Senator
Sabini.
SENATOR SABINI: Thank you, Madam
President. On the bill.
ACTING PRESIDENT McGEE: Senator
Sabini, on the bill.
SENATOR SABINI: I'm not going to
give a scolding or a lecture or risk hearing
how this is -- or risk hearing my remarks
reiterated by folks on the other side of the
aisle that this is a two-house problem,
because I admit that it is. Or a systematic
problem in New York State, which I admit that
it is.
I just find it interesting that not
only are we setting a record by going forward
with this extender of having the latest budget
in the state's history, but, ironically, we're
5582
now closer to the schedule of hearings for the
fiscal '05-'06 budget than we are for the
April 1st deadline for the budget we're in.
So we're not only late for this
budget, but as soon as we finish this budget,
the people on our staffs are going to start
thinking about next year's budget. We're
actually closer to having hearings on that.
Now, hearings are supposed to mean
something. We had them in the cold of winter.
And yet we stand here in August still
deliberating over this.
And my colleague Senator Volker,
who I have an enormous amount of respect for,
says, Well, you know, a group of people can
stop things here. In my limited time here, I
find it's really easy to stop the Legislature.
We're really good at being stopped. It
doesn't take a big roadblock.
California, we have a governor in
California who is new to government who used
some hyperbole and got people to the
negotiating table. Maybe that's what we need.
I'm sad to say that it's endemic in
this building, no matter what floor you're on,
5583
no matter what side of the building, and that
if we continue to extend and go home and have
staffs negotiate and not have a fire lit under
us, then that's why we wind up in this
position.
I still contend -- and I'm sure
I'll hear others tell me I'm wrong, but I
still contend that if we used our collective
wills and stayed here long enough, we'd get
the job done. It may not be to everyone's
satisfaction, but that a consensus can be
achieved. That's what people send us here
for.
And even this week I heard from a
member of the other house who's a member of my
party that "You don't understand how Albany
works." And again, to me, it really doesn't
seem like it works at all.
I will be voting against this. I
welcome -- if this goes to its final date in
September, I hope that the national delegates
who visit our state realize that the state
budget isn't passed and that we're working on
extenders, sort of the fiscal "Hamburger
Helper" or "Tuna Helper" of New York.
5584
And in fact, at the national
convention the Democrats held in Chicago a few
years ago, the most valuable souvenir was a
Democratic Convention commemorative box of
macaroni and cheese from Kraft. And maybe
this year they should make it "Hamburger
Helper" and hand it out to delegates, let them
know that that's what our government is good
at in New York, extending. When you don't
have much meat, you want to extend it. Well,
we don't have much here to talk about if we
continue to extend what is, in effect, bad
policy.
So I'll be voting no and joining
others, I hope, in voting no, in the spirit
that I think we could get things done if we
really, really tried and put some attention to
it and some of the hyperbole -- that we all,
frankly, are guilty of -- aside.
Thank you, Madam President. I'll
be recorded in the negative.
ACTING PRESIDENT McGEE: Senator
Krueger.
SENATOR LIZ KRUEGER: Thank you,
Madam President. On the bill.
5585
So we already admit to being a
dysfunctional legislature. Members of this
Senate on both sides have made that statement
multiple times, including Senator Bruno this
year on the floor.
We saw a report come out from the
Brennan Center two weeks ago documenting that
we're actually the most dysfunctional
legislature in the country. Nothing to be
proud of. Although perhaps a recognition
that, like in twelve-step programs, the first
step is always admitting you have a problem.
And we're not prepared to admit we
have that problem, not if we pass this
six-week extender today. Not if we decide to
respond to the orders of a court because we
failed to do our job for so many years in
addressing unfair school aid formulas. Not if
our response to that is to say, Fine, we'll
have no school aid formulas. That solves the
problem. We won't be accused of having unfair
school aid formulas because we simply won't
have any at all.
And we won't even have a budget
anymore. We will go through an exercise where
5586
we do six-week extenders, we stick in a few
things we like here and there, and we
completely default our responsibility, not
just legislatively but budgetarily as well.
But I have to stand and respond to
my colleague Senator Volker's attacks on
New York City schools and this court decision.
Senator Volker, the fact that historically
New York City has been underfunded for
education for our children is not a
justification to continue such a pattern. An
attack on New York City schools, as if the
fault lies with the City of New York because
we have an unfair disadvantage in our schools
for our children, and that that is somehow the
fault of bad administration or bad management.
Well, we can all agree we need more
accountability in our schools, more
accountability for the budgets that we spend
on our schools. I would argue Long Island has
recently had the most clear example of that,
with Roslyn and the stealing of large sums of
money from that school district.
To stand on the floor of the Senate
and to make incorrect statements about
5587
education funding and the role of the City of
New York in state funds cannot be left
unanswered.
You argued that New York City pays
less property tax than other parts of the
state. Perhaps you're not aware of the
New York City personal income tax. Perhaps
you're not aware of the fact that while we
might disagree over who ought to be funding
more or less of any given responsibility of
the state throughout the State of New York,
the City of New York is a transferrer of
revenue of between $7 billion and $11 billion
more per year to the State of New York than is
returned.
So to stand on the floor of the
Senate and to imply that the City of New York
is somehow stealing money from other
districts, in the suburbs or anywhere else in
the State of New York, is a misstatement of
the facts. The facts are that the City of
New York is the transferrer of revenue from
city taxpayers to people throughout the State
of New York, including in your own district,
Senator.
5588
And the argument that you don't
like a court case decision or you think that
judges overstep the role they should have in
the courts, because they ordered us to do
something we have failed to do for decades on
our own, may be your personal opinion but does
not change the facts that New York State
underfunds certain high-needs districts,
New York City and throughout the state of
New York. The courts stepped in only after
decades of our failing to address this
legislatively.
Our failure to continue to address
this through this six-week extender, or
refusing to even take a stand on school aid
formulas, will do nothing to help the children
in any of the underfunded school districts in
New York State. And while it is fine to rail
against the courts and to rail against
New York City, it neither changes the facts
nor offers us a solution.
So I will also vote against this
extender today because of what is not in it,
what we have continued to abdicate as our
responsibility. And my fear is that this not
5589
only might be the first year the State of
New York has the first September deadline
budget, but this might be the first year that
the State of New York never actually has a
budget. And what does that say about us in
our future and how history records our votes
today? So I hope my colleagues will think
about that and vote no today.
Thank you, Madam President.
ACTING PRESIDENT McGEE: Senator
Brown.
SENATOR BROWN: Thank you, Madam
President.
Let me just say for the record that
I came here to deliver positive services to
the residents that elected me and to the
residents of the State of New York. And if I
could today write a headline for many of the
news organizations all across this state, that
headline would probably be "New York State
Legislature Fails to Get the Job Done --
Again."
I mean, it's August 2nd. And as
Senator Schneiderman said, we will now,
without us taking action on the budget today,
5590
we will probably this week slip into the
latest budget ever in the history of the State
of New York, in the history of this
legislature. And I think this is a sad, sad
day for the New York State Legislature.
You know, we talked about the
Brennan Center and the Brennan Center calling
this Legislature dysfunctional. Well, a
citizen's watchdog group, the Citizens' Budget
Commission, asked the members of this
Legislature to sign a pledge to push the
leadership to give us at least the three days
that the Constitution calls for to be able to
have the public and the members of this
Legislature review the budget.
Well, today we're voting on over
$23 billion, a six-week extender, and we just
saw this document 20 minutes ago at most. So
again, you know, we are failing to follow the
Constitution of this state and give ourselves
time to even look through, to read through, to
be able to properly process what we're voting
on.
I mean, if this isn't confirmation
of the dysfunctionality of how business is
5591
done here, I don't know what is. And I have
to say it again, this is a sad, sad day.
I will say that my bags are packed,
my bags are packed for the next two weeks. I
don't want to leave Albany today without the
budget being done. I don't want to leave
Albany today with no resolution to school aid
reform and no resolution to this Campaign for
Fiscal Equity decision.
This Legislature could have taken
action before the court-imposed deadline, and
we could have addressed the underfunding of
the New York City public schools but also
school districts all across this state. The
Campaign for Fiscal Equity has found that not
only are New York City public schools
underfunded, but some 500-plus of the
approximately 700 school districts in this
state are underfunded. Every school district
that I represent in my Senate district is
underfunded, both urban and suburban.
So this is a sad day that we come
back here to Albany again on August 2nd and
we're not prepared to vote on a budget, we're
not prepared to vote on school aid reform, and
5592
we're not prepared to vote on this Campaign
for Fiscal Equity decision.
I too, sadly, Madam President, will
be voting in the negative.
ACTING PRESIDENT McGEE: Senator
Hoffmann.
SENATOR HOFFMANN: Thank you,
Madam President.
I have been in this chamber long
enough to remember before we had budget
extenders. And I really rue the day that the
legal beavers figured out how we could do
these budget extenders so all of state
government could operate without having the
benefit of a budget in place. Because I too
think that it's deplorable that we are voting
piecemeal on a budget that should have been
enacted on April 1st.
I remember speeding down the
Thruway to get back to this chamber after
taking off without any kind of permission when
we were late with our budget in my very first
year, and having a trooper stop to ask what
the rush was. And when I explained that I was
a state senator and I was AWOL and we were
5593
expected to have a budget vote around
midnight, he wished me well and said, "Make
sure you drive safely, because I want to make
sure I get my paycheck." In those days, state
employees weren't paid until we had a budget
fully in place.
But now something very strange has
happened, and it is an erosion of the
legislative branch of government caused by the
strong-leader form of government as enacted by
the other chamber.
And my constituents bitterly resent
the fact that here on August 2nd we are here
debating a piece of legislation that deals
with some of our school aid but not the entire
school aid package and not the rest of the
budget.
The Speaker of the Assembly vowed
back in January, I guess, in meetings that he
had, and with some bravado to the press, that
he wanted a settlement for the school
districts of New York City, as ordered by the
courts, prior to having a whole budget in
place. And unfortunately, he has the power to
make that happen by simply refusing to come to
5594
the table. And he has refused to come to the
table on other issues as well.
So here we are, one part of a
bicameral legislature, rendered relatively
helpless because the other chamber will not
sit and negotiate with us.
And the worst of all things is
happening. Now, now we are having New York
State experience legislation by judicial
decree. We have abdicated our branch of
government to the courts, my friends. And
Speaker Silver needs to be held accountable
for that.
Must I tell my constituents who are
worried about the school district in Syracuse,
New York, that the only way they will get a
fair school aid formula this year is by filing
a lawsuit? Because that apparently is the
role that is being established. That is
totally unfair. It is an abuse of power.
I will vote for this because it is
the only show in town, it is the only way to
keep some semblance of government running.
But I do ask my friends who are monitoring
what we do, be they scholars with the Brennan
5595
Institute, be they editorial writers around
the state, be they other members of government
at the local levels who are frustrated by the
inability of this State Senate to deliver
those things they have requested -- all of
you, please pay attention to where the fault
lies.
This is the chamber that is
prepared to work. We are here for the
duration, if necessary. We have asked
repeatedly for the other house to come to the
table and reason with us. We have asked for
the other house to reason with us on tort
reform, on vicarious liability, on Medicaid
reform.
On countless issues we have been
willing to put forth our proposals and said:
Please, come sit and talk with us so we can
come to some understanding. We even put out
and voted on a CFE settlement package. If it
was not adequate, where was the Assembly's
comparable package? Where was an attempt to
sit and work with us to have a negotiated
settlement that would lead to sound education
for the entire state's children population?
5596
I bitterly resent the fact that on
August 2nd of 2004, I am still not able to
vote on what I should have been able to vote
on on March 31st of 2004. And there is one
person who bears that responsibility. He's
not in this chamber. His name is Speaker
Silver, and he must be held accountable.
Not everybody in this chamber,
because I truly believe on both sides of the
aisle in this house we have dedicated men and
women who do want to see this job done. I
know and respect all of you. And it's too bad
that we have to have this exercise in
frustration, talking to ourselves, when we
must be able to make somebody in another
chamber bear the responsibility for this
inability to act today in a responsible
manner.
Thank you, Madam President.
ACTING PRESIDENT McGEE: Senator
Lachman.
SENATOR LACHMAN: Yes, Madam
Chairman. On the bill.
ACTING PRESIDENT McGEE: Senator
Lachman, on the bill.
5597
SENATOR LACHMAN: I am opposed to
the six-week extender. And I don't blame any
member of the Senate, I don't blame the
Majority Leader of the Senate, I don't blame
any member of the Assembly, I don't blame the
Speaker of the Assembly. I blame all of us in
terms of our legislative responsibilities to
the people in the State of New York.
Now, I look in front of me, and
we're voting on an important issue, and one
half of our colleagues are missing. Something
is wrong.
Two, the Brennan report was
mentioned by one of my colleagues recently.
Now, I thought initially the Brennan report
was too hyperbolic when it said that we're not
a dysfunctional chamber, we are the worst
legislative chamber in the entire nation. I'm
beginning to wonder if they were correct in
that.
The little known Governor of
California, Arnold Schwarzenegger, was roundly
criticized and condemned when the budget of
California took 26 days to be passed after its
deadline. Ours will be close to six months.
5598
And in terms of the special master,
I think this is a terrible thing. I was
involved with a special master when I was a
member of the New York City Board of
Education. It was terrible. And a special
master only occurs when there's an egregious
educational problem.
This is an egregious educational
problem. And you cannot blame a judge from
New York called DeGrasse when a majority of
the members of the New York Court of Appeals,
the highest court in this state, coming from
all over the state, stated that this was
egregious and it had to be done by a special
master because the Legislature would not do
it.
And I'd like to add one more thing
that I think is important. Last week the MTA
announced that it has significant budget
shortfalls for 2005 and beyond. The agency
proposed a series of fare and toll increases
and service cuts that will cause irreparable
harm to working people in the MTA region. And
this is just not New York City; it involves
Metro North Long Island Railroad as well as
5599
the New York Transit Authority.
There are people who are dependent
upon our railroads, our subways, our bridges,
and our tunnels. The proposals will have a
devastating effect upon the downstate economy
and the downstate economy south of New York
City and north of New York City.
We must have a negotiated budget in
which the MTA is adequately funded. Public
transportation is not a luxury, it is integral
to the economy of the State of New York. It
is time now that the Governor and the leaders
of the Legislature step up and pass a budget,
a complete budget, one that complies with the
CFE court decision and one that adequately
funds public transportation.
Thank you.
ACTING PRESIDENT McGEE: Senator
Bonacic.
SENATOR BONACIC: Thank you,
Madam President.
It appears to me that the word
"dysfunctionability" is the theme for 2004.
It seems that many people are spinning it for
political gain. Let me just tell you, I've
5600
been here 15 years. And let me tell you what
I know about what we have accomplished as a
bipartisan group and a bipartisan Legislature.
One. We've probably got the best
higher education system in the United States
right in New York. The greatest attendance at
SUNY and CUNY was this past year. We have the
best hospital systems. They come from all
over the United States, they come from Canada,
they come from Europe, they come to our
hospitals to be treated for specialized health
care and operations.
We have a Gen*NY*sis program that
is high-tech, with Centers of Excellence
that's being touted all over the United
States: Come to New York as a place of
opportunity. You had Japan, could locate
anywhere in the world; they came to Albany.
You had IBM, could invest anywhere in the
world; they invested in New York. The highest
investment in North America in the last four
years.
And when I hear all the whining
about education, we give more money per pupil
for every child than any other place in the
5601
United States. Now, we did this because we
care. We did this because we're a legislature
of compassion.
So that dysfunctionability, when
they started in the press, it has a way of
compounding itself. One reporter reads what
another newspaper says and says it over and
over and over again.
Now, as to the budget, it would be
nice to have it timely. But this is a
transitional budget. We've already -- and
people don't realize this, a lot of our
voters, that we've approved four months of the
new budget. Money is out the door. It's gone
to education, it's gone to hospitals, it's
gone to the not-for-profits. We are passing
the budget.
But the reason there's a
breakdown -- and this is sad -- is because we
don't have the relationships between the
Speaker and the Governor. We have a policy
that I've seen go to an extreme this year that
I haven't seen in past years, and that is a
regionalism battle, a selfish battle to push
the numbers to help a region at the
5602
disadvantage of another.
Now, we're not going to let that
happen. And we will stay here because we
believe in fairness, we believe in
accountability and reforms, and whenever we
spend money. And I for one don't embrace the
word "dysfunctionability" for the State of
New York. It's a great place to work, a great
place to live, and a great place to stay.
Thank you, Madam President.
ACTING PRESIDENT McGEE: To close
for the Minority, Senator Schneiderman.
SENATOR SCHNEIDERMAN: Thank you,
Madam President.
I will be brief. I think we've
covered most of the points that have to be
made. I am voting no for reasons that have
been discussed.
And as Senator Bonacic just noted,
we have in fact enacted a substantial portion
of the budget for this year. And the things
that are not in the bill before us today are
reason enough to vote against it. I mean, our
ability to restore money for summer jobs,
that's gone. Summer is over.
5603
Financing for New York City to
refinance the MAC debt, the one thing we were
going to do for New York City last year when
they came to us in a time of extraordinary
fiscal crisis -- if interest rates rise
another eighth of a point, that's over. We
can't refinance the MAC debt. Done.
Categorical aid, done. The repeal
of sales tax on clothing under $110, we didn't
do that.
But I'm not going to spend a lot of
time here. I think everyone here is
reflecting the frustration we all feel. And I
don't think there's anyone on my side of the
aisle who doubts the sincerity of our Majority
Leader when he says he truly does want to get
a budget done.
But I have to agree with Senator
Volker on a very fundamental point, and that
is that we have hit this wall because of a
problem of, frankly, the representatives of
the City of New York standing up and saying we
are not going to close down a budget that
doesn't address the severe underfunding of
New York City schools.
5604
And I think that we have an
extraordinary situation here, because I think
people in other parts of the state actually
believe they pay more money than New York City
does for the state budget as whole and for
education.
Well, I call to your attention a
report prepared by a Rochester firm that was
released by the Mayor of the City of New York,
the most up-to-date information reflecting tax
revenues and expenditures by the State of
New York -- it's called "Balance of Revenue
and Expenditure among New York State Regions,
May 2004," concluding that the City of
New York subsidizes the rest of the state
between $7 billion and $11 billion a year.
And that variation is based on whether you
calculate personal income tax based on
residence or place of employment.
But the City of New York is
subsidizing -- we pay more than we receive
back in goods and services by an amount
$7 billion to $11 billion a year.
Now, how does this happen? Well,
it happens because it's spread around through
5605
a lot of other programs. Again, the point
about property taxes, I think, again,
sincerely made, but misplaced. The
Independent Budget Office of the City of
New York in 2000 issued a report showing that
if you combine personal income tax and
property tax, New York City homeowners paid
$7.26 in PIT and property tax burdens compared
to $6.90 per $100 in the suburbs and $6.78
upstate.
The people in the City of New York
are overtaxed. The people in the City of
New York are overtaxed. And we are facing
budget deficits projected by the city
comptroller of $4.3 billion in fiscal '06,
$4.6 billion in fiscal '07. So we have hit
the wall, because we can't continue to
subsidize the rest of the state this much.
We have 81 percent of the mass
transit riders in the state, who receive
62.5 percent of state transit funds. We have
the highest child asthma rate in the state,
the most serious pollution problems. Yet, in
spite of the fact that we pay for a
disproportionate share of the Clean
5606
Water/Clean Air Bond Act, we've only received
23 percent of those funds.
We are exempted, excluded, the City
of New York is excluded from three of the
state's four unrestricted aid programs. We
are excluded from all the programs except
revenue sharing. And revenue sharing has
never been funded at the level it should have
been.
So I would urge all of my
colleagues, we have to solve this problem
together. But the fact of the matter is
Senator Volker is right. This year,
representatives of the City of New York have
said we're not going close this down while
we're facing deficits, while we're laying off
paraprofessionals in schools, while we're
raising transit fares, while we're cutting
back on police protections in a time of
massive security needs.
We're not going to close this
budget down while we continue to subsidize the
rest of the state $7 billion to $11 billion a
year and we have hundreds of thousands of
children learning in conditions that I
5607
respectfully submit would be unacceptable to
most of my colleagues on the other side of the
aisle if they existed in any part of your
district.
So I'm going to vote no on this. I
know we are working forward towards reaching a
budget. I know -- I know for a fact that the
Majority staff has been working late into the
night trying to close down a budget. It is
not a lack of effort.
But we do have a true political
problem. We do have a true fiscal problem
here. This is not just posturing. We can't
keep subsidizing the rest of the state at this
level while our children are suffering, while
we don't have enough money for the police,
while we don't have enough money to keep our
streets clean, while the mayor is faced with
all kinds of smaller cuts that add up to a
huge amount of money.
I'm going to be voting no, Madam
President, in the hope that we will have a
budget truly very soon, as the Majority Leader
said, and we will address some of these
issues.
5608
Thank you.
ACTING PRESIDENT McGEE: To close
debate, Senator Bruno.
SENATOR BRUNO: Thank you, Madam
President.
And I've been listening with great
interest to my colleagues here. And I want to
thank Senators Volker, Hoffmann, Bonacic for
their observations and comments.
And, you know, this is not the
time -- we happen to be in a political season,
but today is not the day to be playing the
political side of our lives. This is a day
for us to step up and be responsible.
And I respect everyone's
prerogative in voting however you see fit on
your own behalf and on behalf of the
constituency that sends you here to represent
them. Not you, not you individually, but
them.
Now, I don't believe there's
anybody in this chamber that is going to tell
me that your constituents would like to have
you deny, through this emergency
legislation -- and of course we'd like to have
5609
a budget done. We have been here prepared to
do a budget. You've heard it before. I'm not
going to go through it again.
The pronouncement was made, a
budget will not be negotiated until after
July 30th. All right? By the Assembly. And
they haven't. And there is nothing that we
can do about it here in this state, given the
Constitution of New York State and the fact
that we are bicameral. We could have done a
budget by March 31st here in this house. We
have one prepared. But we need a partner.
But your constituents, when you
vote down on this -- and that's your
prerogative -- you are going to deny
$4 billion worth of Medicaid payments that
this emergency legislation allows. You are
going to vote down over a half a billion
dollars of disability assistance for people
who need the disability assistance. You're
going to vote down over a billion dollars in
pension funds for people who are on pensions
waiting for their checks. Okay? You're going
to vote down over a billion dollars in state
agency funds to keep the services of this
5610
state flowing and people being employed here
in the state. That's your prerogative.
That's your prerogative.
But I'm going to share with you,
for those of you that believe politically that
you're on the better side of this, I'm going
to submit to you, Madam President, they are
not. Because you're going to be held
accountable this November.
And when these -- you want to lay
this bill aside? Just somebody say "lay it
aside" --
SENATOR PARKER: Lay it aside.
SENATOR BRUNO: And you know
what, Madam President? You are totally
irresponsible. Totally irresponsible. And I
can say to you that you don't understand the
ramifications of what you are saying. Because
if you did, you wouldn't say it. And I'm
sorry, but that is irresponsible.
So, Madam President, the Majority
will support this emergency legislation. Why?
Because it's all that we have before us. We
would prefer to be voting on an entire budget
end of March, end of April, end of May, end of
5611
June. But you need a partner, and we don't
have a partner.
So we're going to vote for these
emergency funds. This Majority will make sure
that people get their pension checks, that
those that are disabled get their money, that
the people on Medicaid get their money. We'll
take care of that. We'll handle that
responsibility, Madam President.
And I want to thank you for your
sharing your thoughts. And you know what is
great about a democracy? You don't have to be
right.
(Laughter.)
SENATOR BRUNO: But you have a
right to say it. And I respect that right.
And I have a right to say that I think you're
wrong.
And for those that vote against
this, Madam President, I think they're wrong.
Thank you.
ACTING PRESIDENT McGEE: The
Secretary will read.
THE SECRETARY: In relation to
Calendar Number 1904, Senator Johnson moves to
5612
discharge, from the Committee on Finance,
Assembly Bill Number 11775 and substitute it
for the identical Senate Bill Number 7700,
Third Reading Calendar 1904.
ACTING PRESIDENT McGEE:
Substitution ordered.
The Secretary will read.
THE SECRETARY: Calendar Number
1904, by the Assembly Committee on Rules,
Assembly Print Number 11775, an act making
appropriations for the support of government.
ACTING PRESIDENT McGEE: Read the
last section.
THE SECRETARY: Section 68. This
act shall take effect immediately.
ACTING PRESIDENT McGEE: Call the
roll.
(The Secretary called the roll.)
ACTING PRESIDENT McGEE: Senator
Stavisky, to explain her vote.
SENATOR STAVISKY: It's late. I
waive.
ACTING PRESIDENT McGEE: Senator
Montgomery, to explain her vote.
SENATOR MONTGOMERY: Thank you.
5613
I know Senator Stavisky and I look alike,
however.
(Laughter.)
SENATOR STAVISKY: I thank you
for the compliment.
SENATOR MONTGOMERY: Madam
President, to explain my vote briefly.
I certainly appreciate the Majority
Leader's acknowledging the democratic process,
our right to speak. I appreciate that.
That's one of the few if not, perhaps, the
only thing we have in this chamber if you're
standing in my shoes or sitting in my seat.
I hope that my constituents will
understand that I'm voting no on this bill
because the process is absolutely wrong. We
have the lowest number, the least number of
opportunities for employment for teenagers in
the whole nation in this state, and the
Governor has made a decision that he is
essentially going to defund the summer youth
employment program. And that is repeated over
and over.
I have not heard the Governor's
name here. I've heard the Assembly being
5614
blamed and all of us in the Senate being
blamed and everybody being blamed. But
there's a third partner, it seems to me, in
this process. It's the Governor. Where is
he? What is he doing to make this happen?
He is as responsible for my
constituents as he is for all constituents
upstate. And it is his obligation to sit down
with the Legislature and negotiate a budget
which protects the interests of all of the
regions of the state, not just one part or the
other. And he in fact went to court to appeal
the court decision that would help to protect
the interests of children in my district and
all of New York City.
So I'm angry with him too. And I
hope that he is going to suffer as much as I
will, because I think he is as much a part of
the problem as any of us in here.
I am voting no on this legislation.
Thank you.
ACTING PRESIDENT McGEE: Senator
Montgomery in the negative.
May I ask that those in the
negative please raise their hands again,
5615
please, so that we can get a proper count.
Senator Hassell-Thompson, to
explain her vote.
SENATOR HASSELL-THOMPSON: Thank
you, Madam President.
I did not, along with one of my
colleagues, say lay this bill aside. But I
have to be very honest and say to you that it
was my thought that came through his lips.
And laying it aside has nothing to
do with all of the appropriations that are in
this bill that all of us would like to
support. But laying it aside says that we
need to lay it aside to think about the fact
that for six more weeks we have to deliberate
in a process that should have been done so
much sooner.
And so those of us that are voting
no, we're voting no mostly because of the
amount of time that this extender calls for.
Because it says or it appears to say, at least
to the people I represent, that we're going to
go home and take vacation because it's August
and the summer and people's vacations are
being interrupted by having to come here to
5616
Albany.
Well, when I got the memo that we
were having a session today, I came prepared
with five suits. And five suits says that I
was prepared to stay as long as it takes for
us to deliberate and talk.
And I certainly did not anticipate
coming here, passing an extender -- and
certainly I want all of these people who work
extremely hard and who are not participators
in this process to be paid and paid in a
timely fashion. And considering I haven't
been paid since March 24th, I think that's
quite commendable on my part, to be concerned
about other people who are getting paid. But
I am concerned about them, because they are
not a part of the decision-making process.
But for any of us to absolve each
other of our role in this is erroneous,
because we are all responsible for a process
that has not worked. And each of us has to
take responsibility for whatever share of that
participation or failure to participate that
we bring to the table.
But I certainly feel that for us to
5617
sit here and talk about going home today and
coming back and having a six-week extender
while we figure out who's at fault is a
tremendous disappointment to me.
People have asked me am I
frustrated and disappointed by this process,
and to this point I have said no. Yes, I
know, my two minutes are up. And I yield to
that two minutes.
ACTING PRESIDENT McGEE: Senator
Hassell-Thompson will --
SENATOR HASSELL-THOMPSON: But I
think, Madam President, my vote no has been
clearly recorded. Thank you, ma'am.
ACTING PRESIDENT McGEE: -- be
recorded in the negative.
Senator Saland.
SENATOR SALAND: Thank you, Madam
President. I rise to explain my vote.
I have listened to the entire
debate. And certainly I intend no discourtesy
to any member of this chamber. And I
understand the passion and the concern that
each and every one of us brings to this
chamber. And when we talk about a process,
5618
the fact of the matter is is that the process,
unfortunately, if in fact it is a process,
enables itself to be hostage and hostaged
readily.
I heard some mention of the concern
on the part of some of our colleagues from
New York, they did not want to close down this
budget in light of the fact that they felt
that the city wasn't being treated fairly.
This wasn't about closing down a budget. This
was about starting up budget negotiations.
Because some of you may recall that
in the first week of the session, the Speaker
said -- and he made no bones about it, it was
a prophesy -- there will be no budget if we
don't do CFE. If we don't do CFE by
July 30th, there will be no budget. We got to
July 30th, there was no budget. He was a
prophet in his own time. He said he would do
it, and he did it.
That's not to say that there isn't
blame that goes elsewhere or one or another of
us, one of the parties hasn't had more than
its share of blame. But this year, in perhaps
the clearest, most unequivocal fashion, the
5619
man was a prophet from day one.
I would merely suggest to those
that are opposing this and have demonstrated
their opposition to it, I think you'd be
troubled to go home and trumpet that you
closed down government. Because that's really
what you're saying. Your vote, despite the
fact that you're frustrated with the process,
as we are, is to close down government.
Because if the votes were there,
and if this Majority did not act
responsibly -- because passing the extender,
as ugly as it is, is acting responsibly --
ACTING PRESIDENT McGEE: Excuse
me. Excuse me, Senator Saland. Your two
minutes are up. So would you please close.
SENATOR SALAND: Well, I choose
not to close down government, notwithstanding
the less than pretty vehicle we're using. I
vote to support it, in favor.
ACTING PRESIDENT McGEE: Thank
you. You will be recorded in the affirmative.
Please announce the results.
THE SECRETARY: Those recorded in
the negative on Calendar Number 1904 are
5620
Senators Breslin, Brown, Diaz, Dilán, Duane,
González, Hassell-Thompson, L. Krueger,
Lachman, Montgomery, Parker, Paterson, Sabini,
Schneiderman, A. Smith, and Stavisky. Ayes,
42. Nays, 16.
ACTING PRESIDENT McGEE: The bill
is passed.
Senator Bruno.
SENATOR BRUNO: Madam President,
can we at this time call up Calendar Number
1905.
ACTING PRESIDENT McGEE: The
Secretary will read.
THE SECRETARY: In relation to
Calendar Number 1905, Senator Johnson moves to
discharge, from the Committee on Finance,
Assembly Bill Number 11776 and substitute it
for the identical Senate Bill Number 7701,
Third Reading Calendar 1905.
ACTING PRESIDENT McGEE:
Substitution ordered.
The Secretary will read.
THE SECRETARY: Calendar Number
1905, by the Assembly Committee on Rules,
Assembly Print Number 11776, an act to amend
5621
Chapter 62 of the Laws of 2003.
ACTING PRESIDENT McGEE: Senator
Bruno.
SENATOR BRUNO: Is there a
message of necessity at the desk?
ACTING PRESIDENT McGEE: There is
a message of necessity at the desk.
SENATOR BRUNO: I would move that
we accept the message.
ACTING PRESIDENT McGEE: All in
favor of accepting the message of necessity
signify by saying aye.
(Response of "Aye.")
ACTING PRESIDENT McGEE: Opposed,
nay.
(Response of "Nay.")
ACTING PRESIDENT McGEE: The
message is accepted.
Read the last section.
THE SECRETARY: Section 3. This
act shall take effect immediately.
ACTING PRESIDENT McGEE: Senator
Schneiderman.
SENATOR SCHNEIDERMAN: Madam
President, very briefly on the bill.
5622
This is the language bill that's a
counterpart to the appropriation bill that we
just voted on. The arguments are the same. I
will not repeat them because of the lateness
of the day.
Ordinarily, in a language bill,
this would be where we see how the money is
distributed. And we don't have that here. We
don't have any ability to tell our
constituents how much money is in this bill,
for what districts.
I urge a no vote for the same
reasons as we voted no on the last bill.
Thank you, Madam President.
ACTING PRESIDENT McGEE: Read the
last section.
THE SECRETARY: Section 3. This
act shall take effect immediately.
ACTING PRESIDENT McGEE: Call the
roll.
(The Secretary called the roll.)
THE SECRETARY: Those recorded in
the negative on Calendar Number 1905 are
Senators Breslin, Brown, Diaz, Dilán, Duane,
González, Hassell-Thompson, L. Krueger,
5623
Lachman, Montgomery, Parker, Paterson, Sabini,
Schneiderman, A. Smith, and Stavisky. Ayes,
42. Nays, 16.
ACTING PRESIDENT McGEE: The bill
is passed.
Senator Bruno.
SENATOR BRUNO: Is there any
other business to come before the Senate
presently at the desk?
ACTING PRESIDENT McGEE: No,
there isn't, Senator Bruno.
SENATOR BRUNO: Then I would,
after consultation with the Minority Leader,
hand up the following notice of leadership
changes. And I ask that they be filed in the
Journal, effective today. Thank you.
ACTING PRESIDENT McGEE: So
received and will be filed.
Senator Bruno.
SENATOR BRUNO: And there being
no further business to come before the Senate,
I would move that we stand adjourned, subject
to the call of the Majority Leader, with the
expectation that we will be back on
August 9th, at 3:00 p.m., in session, with
5624
intervening days being legislative days.
Thank you, Madam President.
ACTING PRESIDENT McGEE: On
motion, the Senate stands adjourned, subject
to the call of the Majority Leader,
intervening days being legislative days.
(Whereupon, at 5:07 p.m., the
Senate adjourned.)