Regular Session - August 10, 2004

    

 
                                                        5652



                           NEW YORK STATE SENATE





                          THE STENOGRAPHIC RECORD









                             ALBANY, NEW YORK

                              August 10, 2004

                                 2:12 p.m.





                              REGULAR SESSION







            SENATOR PATRICIA K. McGEE, Acting President

            STEVEN M. BOGGESS, Secretary















                                                        5653



                           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,

                 Monday, August 9, the Senate met pursuant to

                 adjournment.  The Journal of Sunday, August 8,

                 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.



                                                        5654



                            Messages from the Governor.

                            Reports of standing committees.

                            Reports of select committees.

                            Communications and reports from

                 state officers.

                            Motions and resolutions.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 there will be an immediate meeting of the

                 Rules Committee in the Majority Conference

                 Room.

                            ACTING PRESIDENT McGEE:

                 Immediate meeting of the Rules Committee in

                 the Majority Conference Room.

                            SENATOR SKELOS:    And then if we

                 could stand at ease.

                            ACTING PRESIDENT McGEE:    The

                 Senate will stand at ease.

                            (Whereupon, the Senate stood at

                 ease at 2:14 p.m.)

                            (Whereupon, the Senate reconvened

                 at 2:20 p.m.)

                            ACTING PRESIDENT McGEE:    Senator

                 Skelos.

                            SENATOR SKELOS:    Madam President,



                                                        5655



                 at this time I'd like to move that we adopt

                 the Resolution Calendar in its entirety.

                            ACTING PRESIDENT McGEE:    All 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 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,

                 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 at this time.



                                                        5656



                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Senator Bruno,

                 from the Committee on Rules, reports the

                 following bills:

                            Senate Print 4289B, by Senator

                 Robach, an act to amend the Retirement and

                 Social Security Law;

                            5927A, by Senator Andrews, an act

                 authorizing the City of New York;

                            7710, by Senator Farley, an act to

                 amend the Banking Law;

                            And Senate Print 7711, by the

                 Senate Committee on Rules, an act to amend

                 Chapter 83 of the Laws of 2002.

                            All bills ordered direct to third

                 reading.

                            ACTING PRESIDENT McGEE:    Senator

                 Skelos.

                            SENATOR SKELOS:    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.")



                                                        5657



                            ACTING PRESIDENT McGEE:    Opposed,

                 nay.

                            (No response.)

                            ACTING PRESIDENT McGEE:    The

                 Rules report is accepted.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 if we could take up Calendar Number 1910 at

                 this time.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1910, by Senator Farley, Senate Print 7710, an

                 act to amend the Banking Law, in relation to

                 the cashing of checks.

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 8.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.

                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 52.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.



                                                        5658



                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 please call up Calendar Number 1913.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1913, by Senator Robach, Senate Print 4289B,

                 an act to amend the Retirement and Social

                 Security Law, in relation to eligibility.

                            ACTING PRESIDENT McGEE:    Read the

                 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, 52.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Skelos.

                            SENATOR SKELOS:    Madam President,

                 please call up Calendar Number 1917.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    In relation to



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                 Calendar Number 1917, Senator Andrews moves to

                 discharge, from the Committee on Rules,

                 Assembly Bill Number 9413A and substitute it

                 for the identical Senate Bill Number 5927A,

                 Third Reading Calendar 1917.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1917, by Member of the Assembly Norman,

                 Assembly Print Number 9413A, an act

                 authorizing the City of New York to reconvey

                 its interest.

                            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, 52.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Skelos.



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                            SENATOR SKELOS:    Madam President,

                 if we could stand at ease pending the report

                 of the Finance Committee.

                            ACTING PRESIDENT McGEE:    The

                 Senate will stand at ease.

                            (Whereupon, the Senate stood at

                 ease at 2:23 p.m.)

                            (Whereupon, the Senate reconvened

                 at 2:34 p.m.)

                            ACTING PRESIDENT McGEE:    Senator

                 Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we have some order, please.  Would you

                 bang that gavel.

                            Thank you very much.

                            And I would ask that we return to

                 reports of standing committees.

                            I believe there is a report from

                 the Finance Committee at the desk.  I would

                 ask that it be read and accepted at this time.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Senator Johnson,

                 from the Committee on Finance, reports the

                 following bills:



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                            Senate Print 6053B, Senate Budget

                 Bill, an act making appropriations for the

                 support of government;

                            6057B, Senate Budget Bill, an act

                 to amend the Labor Law and others;

                            And Senate Print 7719, by Senator

                 Robach, an act to amend the Civil Service Law.

                            All bills ordered direct to third

                 reading.

                            ACTING PRESIDENT McGEE:    Without

                 objection, all bills are ordered direct to

                 third reading.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we at this time take up Calendar Number

                 1914.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    In relation to

                 Calendar Number 1914, Senator Johnson moves to

                 discharge, from the Committee on Finance,

                 Assembly Bill Number 9553B and substitute it

                 for the identical Senate Bill Number 6053B,

                 Third Reading Calendar 1914.

                            ACTING PRESIDENT McGEE:



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                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1914, Assembly Budget Bill, Assembly Print

                 Number 9553B, an act making appropriations for

                 the support of government.

                            ACTING PRESIDENT McGEE:    Senator

                 Paterson.

                            SENATOR PATERSON:    Madam

                 President, I have read over this bill

                 extensively during the past couple of days,

                 and yet there's parts of it I just -- my

                 comprehension -- maybe because it's August,

                 it's just not what it usually is.

                            So I was wondering if, in an

                 ephemeral way, Senator Johnson might give us

                 an explanation of this legislation.

                            ACTING PRESIDENT McGEE:    Senator

                 Bruno.

                            SENATOR BRUNO:    Senator Paterson,

                 I would like to substitute at the moment for

                 Senator Johnson.  He's got blond hair; my hair

                 is white.  That's close enough, I hope.

                            SENATOR PATERSON:    This is an

                 outstanding substitution.



                                                        5663



                            SENATOR BRUNO:    Thank you.

                            And I can't, I'm sure, Senator, get

                 specific.  But I would welcome the chair,

                 Madam President, to recognize Senator Saland

                 as relates to the appropriation part of what

                 we're doing.

                            But while I'm on the floor, if you

                 would indulge me, Senator, I would just like

                 to observe that the bill that is before us is

                 the appropriation bill to help fund education.

                 And it moves, as we had released the runs

                 yesterday, about $740 million on a school

                 year.  And with some miscellaneous dollars,

                 it's $751 million, $555 million on a fiscal

                 year.

                            The runs are out.  Tax bills go out

                 for most of the state by August 16th.  We

                 thought it was imperative -- and we're very

                 pleased that we could agree with all of you

                 here on the numbers, and with the Assembly and

                 with the Governor, so that the people of this

                 state are aware of the record amounts of state

                 aid that will be flowing to help get the lid

                 on property taxes, reduce property taxes, and

                 properly fund education.  Because funding



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                 education has always been a priority in this

                 house, and it will continue to be a priority.

                            So, Madam President, I would ask

                 your support of this legislation.  And for the

                 specifics of any of the lines that are in this

                 package -- but this is the appropriation bill,

                 and there's others that will relate to the

                 entirety of moving education -- I would defer

                 to Senator Saland, who chairs, in a very

                 distinguished, outstanding way, the Education

                 Committee for the entire Senate.

                            ACTING PRESIDENT McGEE:    Senator

                 Saland.

                            SENATOR SALAND:    As one of my

                 colleagues just intoned, that's a heck of an

                 introduction.

                            Ladies and gentlemen, as Senator

                 Bruno, the Majority Leader, has just indicated

                 in his remarks, this bill contains additional

                 funding to the tune of some $751 million on a

                 school-year basis, $740 million of which goes

                 pursuant to one or another formula and

                 $11 million that goes pursuant to certain

                 categorical aid provisions.

                            Within that $740 million, a little



                                                        5665



                 less than $330 million is being used to

                 backfill some expense-driven aids, aids that

                 include BOCES, transportation, public excess

                 cost aid, and building aid.  Those are

                 expenses that were incurred in school

                 districts throughout this state, in reasonably

                 good faith on the part of school districts who

                 anticipated being reimbursed.

                            The Governor, in providing us with

                 his budget, either capped or cut certain of

                 those programs.  And in order to make those

                 districts whole, we're required to provide

                 some $329 million.

                            Over and above that, to the tune of

                 400-plus million dollars, a variety of

                 formulas have been enhanced.  And certainly

                 the formula that's probably of the greatest

                 interest to and the one that provides the

                 greatest amount of discretion to our local

                 school districts is the operating aid formula,

                 comprehensive operating aid.

                            And there is no district in our

                 state that will receive an increase of less

                 than 1 3/4 percent, 1.75 percent, under this

                 bill that's before us.



                                                        5666



                            Again, as Senator Bruno has pointed

                 out, it will require us in this fiscal year of

                 ours to provide an additional $555 million.

                            We also, as part and parcel of

                 this, restore a number of programs.  We

                 restore full funding to libraries, we restore

                 independent living centers.  There are a

                 number of teacher programs, teacher centers,

                 teacher mentor programs that we also restore

                 under the terms of this measure.

                            This brings to $15.2 billion the

                 total statewide that New York State is

                 providing.  This obviously is the largest

                 amount that the state has provided in its

                 history.  It represents, over the course of

                 the past ten years, an additional roughly

                 $5.3 billion.  We have, over the course of

                 that period of time, increased well above the

                 rate of inflation.  The fact of the matter is

                 is that we've almost doubled the rate of

                 inflation.

                            With that, Madam President, I would

                 yield to any questions.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman.



                                                        5667



                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.  Through you, if the sponsor

                 would yield for a few brief questions.

                            ACTING PRESIDENT McGEE:    Senator

                 Saland, will you yield?

                            SENATOR SALAND:    Yes, Madam

                 President.

                            ACTING PRESIDENT McGEE:    The

                 Senator yields.

                            SENATOR SCHNEIDERMAN:    As I read

                 this bill and the numbers that it provides, it

                 appears to me that in the '03-'04 school year,

                 New York City received 37.1 percent of the

                 state's school aid, and in this bill New York

                 City receives 37.2 percent.  Is that correct?

                            SENATOR SALAND:    I thought the

                 number was more like 38-plus percent, I

                 believe 38.86.  I believe it's a little over

                 38 percent -- driven, in large part, by the

                 additional extraordinary aid dollars that are

                 in here, to the tune of some $265 million, I

                 believe.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Yes,



                                                        5668



                 through you, Madam President, if the sponsor

                 would continue to yield.

                            ACTING PRESIDENT McGEE:    Senator

                 Saland, do you continue to yield?

                            SENATOR SALAND:    Yes.

                            SENATOR SCHNEIDERMAN:    I believe

                 that the sponsor is referring to the portion

                 of new money, new money that's going to the

                 city.  But in fact, in terms of all aid, old

                 plus new money --

                            SENATOR SALAND:    Oh, okay.

                 Overall aid goes from 37.1 to 37.2.

                            SENATOR SCHNEIDERMAN:    And

                 through you, Madam President, then it is -- my

                 understanding is consistent with the

                 sponsor's, that the portion of the new money

                 provided in this bill that goes to New York

                 City is 38.9 percent.  Is that correct?

                            SENATOR SALAND:    I believe that

                 is close enough for our purposes.

                            SENATOR SCHNEIDERMAN:    I won't

                 comment on that.

                            Through you, Madam President, as

                 the sources of these funds are not -- do not

                 appear to be identified, I wonder if the



                                                        5669



                 sponsor could share with us, is any of this

                 money dependent on the expansion of VLTs or

                 other lottery or gambling-related revenue?

                            ACTING PRESIDENT McGEE:    Senator

                 Saland, do you yield?

                            SENATOR SALAND:    It is not

                 dependent on any expansion of VLTs.  It does,

                 however, sweep the existing VLTs to the tune

                 of approximately $240 million.

                            SENATOR SCHNEIDERMAN:    Thank you.

                 Through you, Madam President, if the sponsor

                 would continue to yield.

                            ACTING PRESIDENT McGEE:    Senator

                 Saland, do you continue to yield?

                            SENATOR SALAND:    Yes, Madam

                 President.

                            ACTING PRESIDENT McGEE:    He

                 continues to yield.

                            SENATOR SCHNEIDERMAN:    In the

                 litigation that is now pending before Justice

                 Leland DeGrasse in the Supreme Court of

                 New York County, the State of New York

                 submitted, on July 30th, a letter to the court

                 in opposition to the appointment of special

                 masters, which was signed by Richard Rifkin,



                                                        5670



                 the deputy attorney general representing the

                 state, that advised the court, defendants --

                 which are us, the Governor and the

                 Legislature -- defendants have developed and

                 proposed --

                            SENATOR SALAND:    Excuse me,

                 Senator Schneiderman.

                            If we could please have that door

                 closed.  Thank you.

                            Thank you.

                            SENATOR SCHNEIDERMAN:    That's

                 okay.

                            What I was saying is there was a

                 letter submitted to the court -- which we

                 discussed in our debate last week -- on behalf

                 of the state in opposition of the court's

                 appointment of a panel of special masters.

                            And this letter, which was signed

                 by Deputy Attorney General Richard Rifkin on

                 behalf of the state -- really, the Governor --

                 stated that the defendants -- i.e., the

                 Legislature and the Governor -- "have

                 developed and proposed a comprehensive

                 legislative compliance plan based on the

                 recommendations of the bipartisan New York



                                                        5671



                 State Commission on Educational Reform, and

                 embodied in program legislation proposed by

                 the Governor, to ensure that the schools in

                 New York City and throughout the state have

                 the resources necessary to provide all

                 students with the opportunity for a sound,

                 basic education."

                            Is the bill before us today -- the

                 two bills, the appropriation and language

                 bill, are those bills the comprehensive

                 legislative compliance plan referred to in

                 this letter?

                            SENATOR SALAND:    No, certainly

                 not.

                            To the extent that there's been an

                 increase in funding for high-needs districts,

                 there has been a recognition of trying to

                 drive more dollars to high-needs districts.

                 It does not, however, attempt to deal with the

                 CFE decision.

                            SENATOR SCHNEIDERMAN:    Thank you.

                            Through you, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    And could



                                                        5672



                 the sponsor say something about this bill's

                 provision for higher education programs?

                 There was a reference to it earlier, but

                 perhaps in a bit more detail.

                            SENATOR SALAND:    I would yield to

                 Senator LaValle for that purpose, unless,

                 Senator Schneiderman, you have more questions

                 on K-12.  Whatever works for you, Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Well,

                 whatever works for me is --

                            ACTING PRESIDENT McGEE:

                 Gentlemen.

                            SENATOR SCHNEIDERMAN:    Yes.

                 Either Senator Saland or Senator LaValle, we

                 would like to hear about the higher education

                 funding restorations.

                            ACTING PRESIDENT McGEE:    Senator

                 LaValle.

                            SENATOR LaVALLE:    I'll be glad to

                 do so.

                            I think as everyone in this chamber

                 knows, the staffs have been working very

                 diligently in this house since January, when

                 the Governor handed us the budget, and we have



                                                        5673



                 had meeting upon meeting upon meeting.  And

                 all those meetings -- and you've heard me talk

                 about this on the floor so many times, that

                 when there was frustration about we didn't

                 have a budget -- the fact is that people were

                 working through this long period.

                            And it has produced restorations

                 for the Tuition Assistance Program so that

                 there will be no cuts.  The Governor's budget

                 had a one-third cut in which the students

                 would have to lay out that money and get it

                 back upon graduation.  And so we have fully

                 funded the Tuition Assistance Program.

                            Just so everyone knows, we are

                 approaching a program that is growing very,

                 very rapidly, and we are close to $1 billion

                 in our Tuition Assistance Program.  It's about

                 $970 million that we are funding in that

                 program.

                            While we're on the student

                 financial aid programs, there were cuts to

                 some of the opportunity programs.  And we made

                 restorations there to HEOP, STEP, C-STEP,

                 Liberty Partnership, Teacher Opportunity

                 Corps.  And we also made a restoration to the



                                                        5674



                 Bundy Aid program.  That's an institutional

                 aid program for our private colleges.

                            We have made -- for both the SUNY

                 and CUNY community colleges, we have made a

                 restoration of the base aid cuts that were in

                 the Governor's budget, and we have -- to both

                 SUNY and CUNY community colleges.

                            We have also added, and I will talk

                 about this, increases to both the CUNY

                 operating aid budget and to the SUNY operating

                 aid budget, by finding some -- by being

                 creative, finding some resources that will --

                 savings that we retrieved from bond issuances.

                            And we have -- for CUNY, we have

                 found, on a one-year basis, some $27,375,000

                 that will be used for operating needs, with

                 also some additional money for faculty lines.

                 For SUNY, we have retrieved some money from

                 their bonds, $41 million, which they will be

                 using for operating expenses.  For the faculty

                 lines for SUNY, it is $9 million in additions

                 to faculty lines and $6 million for CUNY.

                            We are also -- again, as I've

                 indicated, we are adding money -- we not only

                 made restorations for our community colleges,



                                                        5675



                 but we are adding a $50 increase in base aid

                 for both City University community colleges

                 and the State University community colleges.

                            So I think that for higher

                 education, with a lot of hard work,

                 creativity, that we have once again placed

                 higher education center stage as a priority of

                 this house.  And certainly the Assembly has

                 been a partner where they have also made it a

                 priority.

                            ACTING PRESIDENT McGEE:    Senator

                 Stavisky.

                            SENATOR STAVISKY:    Madam

                 President, I believe there's an amendment at

                 the desk.  I waive its reading, and I ask to

                 be heard on the amendment.

                            ACTING PRESIDENT McGEE:    The

                 reading is waived.  You may proceed.

                            SENATOR STAVISKY:    Thank you,

                 Madam President.

                            This amendment would restore --

                 would add $700 million to the CFE operating

                 ingredient and $20 billion to the capital

                 component, to put us in compliance or closer

                 to the objective of the CFE court case.



                                                        5676



                            As you know, Article 11 of the

                 New York State Constitution requires that the

                 Legislature -- not three masters or a court

                 decree, but the Legislature shall provide for

                 a system of common education wherein all of

                 the children of the state may be educated.

                 And this amendment tries to comply with that

                 decision.

                            Back in March of this year, the

                 Senate Minority offered an alternative budget.

                 And as part of our budget, we increased the

                 operating aid and the capital construction

                 aid.  This amendment, Madam President, would

                 be statewide in application.  It would apply

                 to all of the school districts, but especially

                 for the high-needs school districts.

                            This would, I think, bring us

                 further into compliance, particularly in terms

                 of the construction part.  The $20 billion

                 would be phased in over a five-year period to

                 reduce class size.  In other words, to provide

                 the buildings where the kids can go to school.

                            You don't have to be a genius to

                 know what it takes to provide a good

                 education.  You need a licensed teacher and



                                                        5677



                 you need small class size and you need a

                 school facility that's conducive to learning.

                            So, Madam President, I move this

                 amendment and urge its adoption.

                            ACTING PRESIDENT McGEE:    Those

                 Senators in agreement with the amendment

                 please signify by raising your hand.

                            SENATOR LACHMAN:    Madam Chair.

                            ACTING PRESIDENT McGEE:    On the

                 amendment?

                            Senator Lachman, on the amendment.

                            SENATOR LACHMAN:    Within 60

                 seconds, Madam Chair.

                            I agree with the amendment.  I

                 don't think it goes far enough.  I don't think

                 the CFE part of it is adequately taken care

                 of.

                            ACTING PRESIDENT McGEE:    Those

                 Senators in agreement with the amendment

                 please signify by raising your hand.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Andrews, Breslin,

                 Brown, Diaz, Dilán, Duane, González,

                 Hassell-Thompson, L. Krueger, Lachman,

                 Montgomery, Onorato, Oppenheimer, Parker,



                                                        5678



                 Paterson, Sabini, Sampson, Schneiderman,

                 A. Smith, M. Smith, Stachowski, and Stavisky.

                            ACTING PRESIDENT McGEE:    The

                 amendment is lost.

                            Senator Montgomery.

                            SENATOR MONTGOMERY:    Yes, Madam

                 President.  I believe there's an amendment at

                 the desk, and I ask that we waive its reading.

                 And I ask to be heard on the amendment.

                            ACTING PRESIDENT McGEE:    The

                 reading is waived, and you may be heard on the

                 amendment.

                            SENATOR MONTGOMERY:    Thank you.

                            My amendment is simply being

                 offered to this house from the members of the

                 Democratic conference to restore $10 million

                 to the Summer Youth Employment Program.

                            In addition, we would implement a

                 new program to provide youth employment

                 opportunities during the fall and winter

                 months.  Since we have missed the opportunity

                 to have young people employed in the Summer

                 Youth Employment Program, we are proposing

                 that we restore the funding.  And in order for

                 the city and the young people in the city not



                                                        5679



                 to lose out on it, because summer is almost

                 over, we want to expand that into fall and

                 winter.

                            And if we don't do this, we are

                 passing a budget, hundreds of pages and a few

                 pounds -- this budget will be passing, and we

                 will be forced to vote on a budget which

                 essentially tells young people in our state to

                 go take a hike, we don't care about you,

                 whether or not you have an opportunity to be

                 employed.

                            And I invite anyone in this room to

                 come to my district and sit down with a group

                 of teenagers, talk to them and ask them what

                 is their first and main issue, what do they

                 need most from us as elected officials, and

                 they will tell you they need jobs.  They need

                 an opportunity to work.

                            And in many instances, the Summer

                 Youth Employment Program introduces them to

                 careers which they had not thought about.  So

                 not only are they paid, but they are

                 introduced to a new world of opportunities for

                 them that they had not thought about.

                            So I ask my colleagues on the



                                                        5680



                 Republican side of the aisle to agree with

                 this amendment.  It is a very small amount to

                 create opportunity for large numbers of young

                 people.  It is the right thing to do.

                            So, Madam President, I ask that you

                 call for the vote.  And I expect and

                 anticipate that this may be, historically, the

                 only and first amendment to pass, because both

                 sides of the aisle will be voting on this

                 amendment.

                            Thank you.

                            ACTING PRESIDENT McGEE:    Senator

                 Brown.

                            SENATOR BROWN:    Thank you, Madam

                 President.

                            I'm also pleased to rise in support

                 of this amendment.  I think $10 million being

                 added to money for youth employment is a very

                 small amount of money for this state

                 government.

                            You know, I can tell you that this

                 summer I encountered so many youth in my own

                 community that were looking for summer jobs.

                 And unfortunately, there weren't enough summer

                 jobs out there for those youth.



                                                        5681



                            Oftentimes we hear about what youth

                 aren't doing, and there's a lot of criticism

                 about our youth.  But I can tell you, I was

                 tremendously impressed this summer that there

                 were so many young people, particularly in my

                 community -- Buffalo, Niagara Falls, Grand

                 Island, the city of Tonawanda -- that were out

                 looking for employment.

                            One sad statistic that I came

                 across is that New York State has the lowest

                 number of youth employment opportunities of

                 any state in this nation.  And when we look at

                 the fact that to incarcerate one youth

                 probably costs the state over $100,000, us

                 adding $10 million back to this program to

                 employ youth that we missed employing for the

                 summer, but employing them over the school

                 year part-time, on weekends, in the evenings

                 after they come home from school, I think

                 makes a lot of sense.

                            Not only do these youth come from

                 very low-income households, many of them; they

                 are able to contribute to those households or

                 able to contribute to their clothing for

                 back-to-school.  They are also able to



                                                        5682



                 contribute to the economy of this state.

                            When we provide opportunities for

                 youth to work, that money doesn't just go into

                 the pockets of the youth and stay there, it

                 funnels back into the state economy and it

                 helps to grow our economy.

                            So I am very pleased to join

                 Senator Montgomery and urge all of my

                 colleagues to support this amendment to add

                 $10 million back to the Summer Youth

                 Employment Program.

                            Thank you very much.

                            ACTING PRESIDENT McGEE:    Senator

                 Diaz.

                            SENATOR DIAZ:    Thank you, Madam

                 President.

                            I represent one of the poorer

                 districts in the State of New York, the 32nd

                 Senatorial District in the Bronx.  It is a

                 pity to see all the youth come to my office

                 trying to find jobs, trying to find programs,

                 and that we cannot provide our youth with good

                 programs, with good money, so they could have

                 jobs and good programs.

                            I join -- I'm standing up here



                                                        5683



                 joining Senator Montgomery, Senator Brown in

                 asking our Republican colleagues to join us,

                 to join us in voting for this restoration of

                 money.  Our youth deserve better.  Our

                 communities deserve better.  I think that to

                 ignore our youth and to cut -- not to put this

                 money back in the budget and force us to vote

                 for a budget that will kill, practically kill

                 our youth, it's a shame, it's a pity, and it's

                 a disgrace.

                            And I would like -- I'm asking and

                 urging, again, our Republican colleagues to

                 join us, the Democratic conference, in

                 restoring this money so our youth could have

                 better services and better programs.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Those

                 Senators in agreement with the amendment

                 please signify by raising your hand.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Andrews, Breslin,

                 Brown, Diaz, Dilán, Duane, González,

                 Hassell-Thompson, L. Krueger, Lachman,

                 Montgomery, Onorato, Oppenheimer, Parker,

                 Paterson, Sabini, Sampson, Schneiderman,



                                                        5684



                 A. Smith, M. Smith, Stachowski, and Stavisky.

                            ACTING PRESIDENT McGEE:    The

                 amendment is lost.

                            Senator Sabini.

                            SENATOR SABINI:    Madam President,

                 I believe there's an amendment at the desk.  I

                 ask that we waive the reading and that I can

                 be heard on the amendment.

                            ACTING PRESIDENT McGEE:    The

                 reading is waived, and you may be heard on the

                 amendment.

                            SENATOR SABINI:    Thank you, Madam

                 President.

                            I have an amendment which would

                 increase the childcare block grant by

                 $100 million to create another 20,000 slots of

                 subsidized daycare.  The fiscal impact on this

                 is $50 million, but it allows the parents of

                 those children to confidently go to work,

                 which is an economic engine.

                            The childcare block grant program

                 funding is sustained in the budget proposal at

                 $929 million, which supports about 186,000

                 slots, which is a small increase.  The total

                 remains constant, but what this amendment



                                                        5685



                 would do is increase by $100 million.

                            Federal eligibility guidelines for

                 childcare subsidies are for families with

                 incomes of 275 percent of the poverty line or

                 lower.  New York State restricts subsidized

                 childcare to those with incomes of 200 percent

                 of the poverty line or lower.  And we have

                 failed to service that population, let alone

                 those filing under those guidelines.

                            What's more, in neighborhoods where

                 housing costs are up, we need to get more

                 people into the business of providing

                 childcare for both subsidized and unsubsidized

                 slots.  And I represent a district that has

                 need for both of those.

                            And by getting more providers into

                 the business and by providing for more slots,

                 I believe it helps our neighborhoods remain

                 stable, helps people confidently go to work

                 and not worry as much about childcare

                 arrangements, and is in general a good thing

                 for the economy and the population of the

                 State of New York.  And that's why I propose

                 the amendment.

                            Thank you, Madam President.



                                                        5686



                            ACTING PRESIDENT McGEE:    Senator

                 Hassell-Thompson.

                            SENATOR HASSELL-THOMPSON:    Thank

                 you, Madam President.  On the amendment, just

                 an additional comment.

                            As someone who was an infant

                 childcare director for seven years in the

                 County of Westchester, and as someone who

                 continues to work very closely with the

                 childcare community, one of the things that

                 this amendment speaks to -- and it's very

                 critical for all of us to understand --

                 childcare is not a poverty program.

                            And I think we need to start with

                 that premise, that child care is at the base

                 of household need.  It is a necessity; it's

                 not a privilege.

                            Also, as someone who worked

                 extensively through the '70s to get a national

                 daycare bill, it continues to amaze me with

                 the numbers of parents, both parents who are

                 in the workforce, that we have not done, in

                 the State of New York, a readdressing of the

                 issues pertaining to the cost of childcare.

                            Childcare, for instance, has become



                                                        5687



                 so costly that childcare for infants is

                 anywhere between $175 and $275 a week, and

                 toddlers are from $125 to $225 a week.

                            Many of our middle-income families

                 have lost their jobs in this economy, and the

                 kinds of jobs they have had to take are

                 service types of jobs.  That does not make

                 them bad people, but it means that in order to

                 survive and to serve their families, they have

                 had a need to take severe cuts in their

                 income.  And in taking that cut, their ability

                 to continue to afford childcare at this level

                 is tremendously diminished.

                            It is therefore incumbent upon us

                 to do two things.  Number one, we have the

                 opportunity to use more of the TANF monies to

                 create additional slots, up to an additional

                 10,000 slots at least.

                            And, number two, we need to revamp

                 the way in which the formula -- we talk about

                 these formulas in this room constantly.  But

                 the formulas for childcare must be changed,

                 because the copay for a parent could be as

                 much as 10 to 35 percent of their income in

                 order to sustain childcare for their children.



                                                        5688



                            We continue to do bills in this

                 body that talk about the safety of our

                 children.  All of us are very eloquent when we

                 stand on the floor about how we want to look

                 at childcare and who takes care of our

                 children.  But if parents cannot afford to put

                 their children in licensed, monitored daycare

                 programs, the kind of secondary alternatives

                 that they have to make cannot guarantee that

                 their children will be safe.

                            We have, therefore, an obligation

                 to look at what it is that we're doing.  And

                 we have an opportunity, because the money is

                 there.  And we have continued to have a

                 surplus in our TANF which would allow us to

                 make these adjustments that will benefit

                 families across the economic spectrum in the

                 State of New York.

                            I would ask, then, that this

                 amendment be given very due consideration and

                 support by both sides of this house.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Oppenheimer.

                            SENATOR OPPENHEIMER:    I'd also



                                                        5689



                 like to speak on this amendment, because

                 something very interesting happened last week

                 when I was talking with the executive director

                 of the Westchester Childcare Council.  And

                 that was she told me that they did have slots

                 available, which was astounding to me, because

                 we've always had too few slots.

                            I said, "Well, that's ridiculous.

                 We have all this great need.  How come we

                 don't have the slots filled?"  And the answer

                 was -- I don't have to tell you -- "It is too

                 costly for most parents to afford to pay for

                 the childcare."

                            This has a lot of very horrible

                 ramifications.  But let me just say that with

                 this money available for the additional

                 subsidized slots, we would see these slots

                 filled.  They are not extremely costly, they

                 are simply beyond the wherewithal of these

                 families, who are on rather low-paying wages,

                 to provide for their children to get proper

                 childcare.

                            We know that the federal

                 eligibility guidelines for childcare subsidy

                 are for families with incomes up to



                                                        5690



                 275 percent of the poverty level.  We in this

                 state provide only for 200 percent family

                 income of the -- 200 percent of the poverty

                 level for subsidized slots.

                            That is not conscionable.  If we

                 are permitted to provide for more, we must be

                 providing for more.  Over half of our young

                 children are not in childcare, they are in

                 some kind of care that is below par, something

                 we would not want.  They may be sitting at the

                 home of a neighbor watching television all

                 day.  This is not what we want for our

                 children.  They are going to have to at some

                 point, we hope, get educated and enter our

                 workforce, and this is not a good beginning.

                            The copays are simply too high

                 presently because the subsidy is too low.  The

                 income level is too high.  And the need for

                 more subsidy is an absolute essential.

                            And I lay this before you as

                 something that is not just important to us

                 today, because they are our children, but also

                 critically important for our future and for

                 those children who we hope will meet

                 standardized tests when they get to school.



                                                        5691



                            ACTING PRESIDENT McGEE:    Those

                 Senators in agreement with the amendment

                 please signify by raising your hand.

                            THE SECRETARY:    Those recorded in

                 agreement are Senators Andrews, Breslin,

                 Brown, Diaz, Dilán, Duane, González,

                 Hassell-Thompson, L. Krueger, Lachman,

                 Montgomery, Onorato, Oppenheimer, Parker,

                 Paterson, Sabini, Sampson, Schneiderman,

                 A. Smith, M. Smith, Stachowski, and Stavisky.

                            ACTING PRESIDENT McGEE:    The

                 amendment is lost.

                            Senator Paterson.

                            SENATOR PATERSON:    I'm sorry,

                 Madam President.  Did you say the amendment

                 lost?

                            ACTING PRESIDENT McGEE:    The

                 amendment is lost.

                            SENATOR PATERSON:    Oh.  Oh.

                            (Laughter.)

                            ACTING PRESIDENT McGEE:    Read the

                 last section.

                            THE SECRETARY:    Section 3.  This

                 act shall take effect immediately.

                            ACTING PRESIDENT McGEE:    Senator



                                                        5692



                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Madam

                 President, briefly on the bill.  Briefly.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman, on the bill.

                            SENATOR SCHNEIDERMAN:    Briefly.

                            I would thank the full rotation of

                 responders to our questions about this --

                 Senator Bruno, Senator Saland, Senator

                 LaValle.

                            There are some good things in this

                 bill.  It certainly restores some critical

                 cuts that the Governor attempted to make, the

                 area of higher education in particular.  There

                 are some very, very important restorations.

                            On the central issue that has been

                 before us all session, however, and that is

                 before us to this day, I'm afraid this bill

                 does not accomplish what we need to

                 accomplish.  And I'm constrained, in good

                 conscience, as I represent people -- including

                 children -- in the City of New York, to vote

                 against this bill, because I do not believe

                 that this bill in any way, shape or form

                 complies with the Court of Appeals' directive



                                                        5693



                 in the Campaign for Fiscal Equity decision.

                            And I would like to just urge my

                 colleagues that since -- this case was filed

                 in 1993.  It went to trial in 1999 and 2000.

                 The findings of fact are devastating.  Again,

                 I'm not going to rehash our debates of past

                 months.  But this is not something that is a

                 matter of greed or luxury.

                            People of the City of New York need

                 money for decent education for our children.

                 We subsidize the rest of the state over

                 $7 billion a year.  We need to have a higher

                 portion of the new state funding for education

                 go to the city.

                            This legislation doesn't do that.

                 In fact, as conceded by the distinguished

                 chair of the Education Committee, 38.9 percent

                 of the new money provided in this bill goes to

                 New York City.

                            Now, the letter I just cited that

                 was submitted to the court on July 30th, just

                 a few weeks ago, by the state represented on

                 our behalf, on behalf of the Governor and the

                 Legislature, that we have developed and

                 proposed a comprehensive legislative



                                                        5694



                 compliance plan based on the recommendations

                 of the bipartisan New York State Commission on

                 Education Reform.  Well, that's the so-called

                 Zarb Commission.

                            Here's the report of the Zarb

                 Commission.  The Zarb Commission recommended

                 that between 50 and 70 percent of all new

                 state money go to the City of New York.  The

                 bill before us today has only 38.9 percent of

                 the new money going to the City of New York.

                            The Governor's Executive Budget

                 recommended 49 percent of new state money to

                 go to the City of New York to help us bring

                 our schools into compliance.

                            The Assembly's proposal required

                 63.8 percent of the new state money to go to

                 the schools in the City of New York.

                            And the proposal developed by

                 Senator Paterson and his staff would have

                 provided 60 percent of the new state money.

                            We have schools where to this day

                 children are being taught in closets, children

                 are being taught in converted bathrooms.  We

                 have a school system in New York City in which

                 less than 50 percent of our students graduate



                                                        5695



                 high school in four years.  Less than

                 50 percent.  And yet this bill does not in any

                 way, shape or form address the inequities in

                 school funding.

                            Money isn't everything.  The state

                 is not responsible by itself, although under

                 the constitution it is ultimately responsible.

                 But this legislation, in my view, does not do

                 enough for the 1.1 million in New York City

                 schools.  This legislation does not reflect

                 the statement made to the court that we are

                 attempting to comply.

                            And therefore, I'm going to be

                 voting no.  I hope we will be coming back

                 later this year to attempt again to address

                 this.  If we pass bills like this, though,

                 we're simply acquiescing in the relinquishment

                 of our responsibility to the judiciary,

                 something that I don't think is good for any

                 of us.

                            I will be voting no, Madam

                 President, and urging everyone else to do

                 likewise.

                            ACTING PRESIDENT McGEE:    Senator

                 Volker.



                                                        5696



                            SENATOR VOLKER:    Madam President,

                 very quickly.  And I have a little bit

                 different tack that I wanted to speak on.

                            As I mentioned in the Finance

                 Committee, first of all, I think this is a

                 great victory for the State of New York and

                 especially for upstate, in that we did what is

                 the normal spread and gave the city some extra

                 money.  And I'm not going to get into a

                 discussion of that.

                            But I am going to get into a

                 discussion, first of all, of these bills.  The

                 bills are dated January 20, 2004.  Now, let me

                 point out something that the media has paid no

                 attention to, and that I pay attention to

                 because -- as one of the oldest people here in

                 terms of service.

                            This bill is here and we are here

                 more because of the Court of Appeals than any

                 other reason.  Years ago, the Bankers decision

                 was passed, and a number of other decisions

                 that have debilitated the authority of this

                 body and our companion body in the Assembly to

                 deal with budgets.

                            The reason this bill says



                                                        5697



                 January 20, 2004, is because the Court of

                 Appeals decided that what we did as the

                 Legislature, did since about 1923, I think --

                 Al Smith -- was wrong.  In fact, it was

                 interesting they did it, I believe it was

                 March 26 or 27th, somewhere right in there,

                 about four days before, which completely

                 disrupted our budget process.  It took us

                 almost three years to figure out just how to

                 do this stuff.  And we're not sure we do it

                 right even now.

                            There's two bills here, because the

                 second bill is the so-called language bill,

                 because they decided that the Governor has the

                 preeminent power in this state to do budgets.

                 Well, you know, I'm for that.  But I just

                 think that the elected people of New York

                 State, which is us -- and I know there's a lot

                 of people in the media that don't like the

                 fact that we're elected.  This is democracy.

                 It's not a communist state or anything else.

                 We're democratically elected people.

                            It just seems to me that one of the

                 things personally I feel strongly about is

                 that we are here, as much as anything, because



                                                        5698



                 the courts have so watered down our powers

                 that -- and I've told Senator Bruno and I'm

                 trying to convince him that we should do a

                 constitutional amendment restoring our powers

                 as they were before the Bankers decision and

                 before a number of these decisions that have

                 followed along with the Executive.

                            And by the way, those came before

                 Governor Pataki.  I'm not talking about

                 Governor Pataki, I'm talking about previous

                 governors also.

                            And I only mention that because

                 it's something totally unknown to people, it

                 seems to me, outside this place.

                            So I would say to you, when you

                 talk about the power of the judiciary, the

                 judiciary doesn't have the power to dictate to

                 us on anything.  The only thing they can do is

                 do what they did here, and that is make a vote

                 for either the Legislature or the Governor.

                 And they made a vote for the Governor.

                            But it seems to me that we should

                 do a constitutional amendment that reverses

                 that process and at least allows us a totally

                 equal opportunity to pass a budget.



                                                        5699



                            ACTING PRESIDENT McGEE:    Senator

                 Liz Krueger.

                            SENATOR LIZ KRUEGER:    Thank you,

                 Madam President.  On the bill.

                            ACTING PRESIDENT McGEE:    Senator

                 Krueger, on the bill.

                            SENATOR LIZ KRUEGER:    Thank you.

                            Well, my colleagues went into many

                 of the sections of the bill, and I won't

                 repeat what they said, certainly.  But I do

                 want to highlight that this bill is not just

                 an education bill or a daycare bill but is

                 also the social services or human services

                 bill for the State of New York this year.

                            And while it is a better bill than

                 the Governor proposed, I am very glad -- and I

                 want to say that on the record -- I'm very

                 glad that we did do restorations to ensure

                 that we did not create full family sanctions

                 in our public assistance program or reduce the

                 right to have earnings while still receiving

                 some small supplement of public assistance,

                 and that we did not actually reduce the basic

                 grant for people on public assistance.

                            We did, however, fail to reverse



                                                        5700



                 the Governor's decision to reduce the public

                 assistance grants for nearly 40,000 households

                 in this state who receive SSI for some

                 disabled family member.  The Governor decided

                 to bypass the Legislature, perhaps in a way

                 different than Senator Volker just discussed

                 with the courts, but the Governor decided to

                 bypass the Legislature by implementing a

                 regulatory change on July 7th that reduced the

                 grant level for poor families who most

                 frequently have a disabled child.

                            And the fact is that the federal

                 government, and the state up until now, has

                 recognized there are special needs for

                 disabled children and that there are

                 additional costs associated with having a

                 special-needs child or a disabled adult in a

                 family with nondisabled children.

                            And that the Governor went ahead

                 and reduced those benefits through regulation

                 an average of 14 percent for those households.

                 It varies by county and by household size.

                            But I was hoping that in this

                 budget and in this budget document we might

                 revisit the question of the Governor I believe



                                                        5701



                 usurping the authority of the Legislature to

                 dictate, through regulation, an action that I

                 don't think he believed he could pass through

                 both houses of the Legislature, and urge us to

                 revisit the question of why we allowed the

                 state to reduce the grants of the most poor

                 families in the State of New York with

                 disabled family members, disabled children who

                 are so disabled that they meet the federal

                 requirements for SSI income.

                            These are parents and children who

                 have cerebral palsy, autism, spina bifida and

                 the like.  They are our poorest families.

                 They are our most vulnerable families.  And

                 with this bill we do not address the fact that

                 they have now, as of July, lost as much as

                 $2,100 per year of their income, which is

                 15 percent of their household income, at a

                 time where we know that families living in

                 poverty cannot meet their needs for their food

                 and their housing and their health care.

                            I will also say that while we

                 protected some of our programs from cuts that

                 the Governor made, we did nothing to move

                 forward on models and programs that we know



                                                        5702



                 have been working.  We did amendments on

                 daycare, so I won't reiterate that.  But the

                 fact is we all know how desperate in every one

                 of our districts our shortage of daycare is

                 and what a direct correlation there is between

                 ensuring you have adequate childcare, not only

                 for pre-school-aged children but in

                 after-school programs, to ensure that parents

                 can get jobs and keep jobs.  So we did nothing

                 to move forward on that.

                            You might notice we never even

                 discussed our previous year's commitments to

                 expand universal pre-K.  It seems as if we've

                 dropped that assignment and dropped that

                 discussion.

                            We did nothing to move forward on

                 the improvements that we have seen, through

                 Title 20, programs to address problems with

                 abused and neglected children.  We've seen

                 drops in our foster-care caseload over the

                 last few years, I would argue because we made

                 a commitment to expanding money for Title 20

                 programs.  The Governor proposed cutting them

                 by 15 percent.  We did not replace that money.

                 We are not going to continue to make the



                                                        5703



                 progress that we should all feel good about in

                 our districts because of the monies that we

                 did invest up till now, but we allowed that

                 cut to go forward.

                            There's a long list, but I agreed

                 to be short today on this.

                            I do want to reiterate, though,

                 that I can't vote for this bill for a number

                 of reasons.  And the two distinct ones I'd

                 like to bring up is, one, the issue my

                 colleague Eric Schneiderman spoke so

                 eloquently about.  We completely flunked the

                 test for education and for CFE with this bill.

                            As we have gone over and over and

                 over again in these chambers over the last

                 several months, we did not change the

                 historical formulas for education aid either

                 to New York City or the other high-needs

                 districts of this state.

                            And, finally, something I'd like to

                 raise with all of my colleagues.  We are

                 passing a bill today -- because I assume it

                 will pass, despite the fact that I'm going to

                 vote against it -- without having done a

                 revenue bill.  We have no idea what the



                                                        5704



                 revenue for the State of New York's budget is.

                 I do not believe it is a responsible action by

                 a legislature to vote through the spending of

                 money before we know what the revenue is.

                            And while this has been an

                 interesting year in the sense that we've done

                 budget extenders that have already approved

                 $63 billion out of an estimated $100 billion

                 or $101 billion budget, we still have had no

                 discussion of revenue or taxation or where the

                 money is coming from.

                            So even if I thought this was a

                 great bill -- and it's not a great bill, there

                 are major problems, but it is better than

                 where we were in January -- I could not vote

                 for this bill, because how do you in good

                 faith vote for a bill that spends the money of

                 a budget when you don't know where the revenue

                 is coming from or how much it is?

                            So I would argue we have done this

                 in the wrong order, and that the first budget

                 bill we should take up in each and every

                 budget session is the revenue bill.  First, to

                 establish where the money is coming from, then

                 determine how you're going to spend that



                                                        5705



                 money.

                            So I'll be voting no.  I hope some

                 of my colleagues will think this through as

                 well.

                            Thank you, Madam President.

                            ACTING PRESIDENT McGEE:    Senator

                 Lachman.

                            SENATOR LACHMAN:    I rise, Madam

                 Chair, also to express many misgivings that I

                 have regarding this bill.  But specifically I

                 want to relate my comments to an issue that

                 was raised by one of the very finest men who

                 sits in the New York State Senate, Senator

                 Dale Volker -- and I mean that most sincerely,

                 Senator Volker -- the issue of the courts

                 getting involved in legislative matters.

                            We all know that under the federal

                 system of government, the Legislature has

                 tremendous power in all areas.  But we should

                 also know, if we remember December 12th in the

                 year 2000, when the U.S. Supreme Court stated

                 that one man was president and one man was not

                 president of the United States based upon the

                 Electoral College and not the number of votes,

                 that the Supreme Court has the power, as they



                                                        5706



                 did in the early 19th century, in Marbury v. 

                 Madison, to step into situations which they

                 think are particularly egregious.

                            Now, people -- you say we should

                 change the constitution of the state.  There

                 are people who say we should change the

                 Constitution of the nation and get rid of the

                 Electoral College.  It is unfortunate that the

                 courts had to become involved.  But they

                 became involved because they deemed that our

                 involvement was insufficient.

                            And two other reasons for that.

                 Senator Schneiderman mentioned CFE.  This does

                 not in any way reach the goals of CFE.  It

                 doesn't reach the goals of the Zarb Commission

                 appointed by the Governor, which had

                 recommended 55 to 60 percent of the funds go

                 to New York City.  And only 39 percent are

                 going to the City of New York.

                            It doesn't respond to Senator

                 Krueger's issue that what we're doing is we're

                 putting the cart before the horse.  Before we

                 know what we have in money, we're voting on

                 this legislation.

                            So I would have to oppose this bill



                                                        5707



                 on the grounds that I have mentioned.

                            And I also would urge my colleagues

                 to be very careful on the issue of federalism

                 and the separation of powers between the

                 judiciary, the executive, and legislative

                 branches of government.

                            Thank you.

                            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 1914 are

                 Senators Andrews, Diaz, Dilán, Duane,

                 González, Hassell-Thompson, L. Krueger,

                 Lachman, Montgomery, Onorato, Parker, Sabini,

                 Schneiderman, A. Smith and Stavisky.  Ayes,

                 43.  Nays, 15.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,



                                                        5708



                 can we at this time take up Calendar Number

                 1915.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    In relation to

                 Calendar Number 1915, Senator Johnson moves to

                 discharge, from the Committee on Finance,

                 Assembly Bill Number 9557B and substitute it

                 for the identical Senate Bill Number 6057B,

                 Third Reading Calendar 1915.

                            ACTING PRESIDENT McGEE:

                 Substitution ordered.

                            The Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1915, Assembly Budget Bill, Assembly Print

                 Number 9557B, an act to amend the Labor Law

                 and others.

                            ACTING PRESIDENT McGEE:    Senator

                 Schneiderman.

                            SENATOR SCHNEIDERMAN:    Thank you,

                 Madam President.

                            This is the language bill

                 accompanying the appropriation bill which we

                 just debated.  They are two parts of the same

                 whole, and I will be voting no for the same



                                                        5709



                 reasons discussed and urge my colleagues to

                 vote in the negative as well.

                            Thank you.

                            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 1915 are

                 Senators Andrews, Diaz, Dilán, Duane,

                 González, Hassell-Thompson, L. Krueger,

                 Lachman, Montgomery, Onorato, Parker, Sabini,

                 Schneiderman, A. Smith, and Stavisky.  Ayes,

                 43.  Nays, 15.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we at this time call up Calendar Number

                 1912.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.



                                                        5710



                            THE SECRETARY:    Calendar Number

                 1912, by the Senate Committee on Rules, Senate

                 Print Number 7711, an act to amend Chapter 83

                 of the Laws of 2002, amending the Real

                 Property Tax Law and others.

                            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:    Ayes, 58.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 can we at this time take up Calendar Number

                 1916.

                            ACTING PRESIDENT McGEE:    The

                 Secretary will read.

                            THE SECRETARY:    Calendar Number

                 1916, by Senator Robach, Senate Print 7719, an

                 act to amend the Civil Service Law and others,

                 amending the Civil Service Law.



                                                        5711



                            ACTING PRESIDENT McGEE:    Senator

                 Bruno.

                            SENATOR BRUNO:    Madam President,

                 is there a message of appropriation and

                 necessity at the desk?

                            ACTING PRESIDENT McGEE:    There is

                 a message at the desk.

                            SENATOR BRUNO:    I would move that

                 we accept that message.

                            ACTING PRESIDENT McGEE:    All

                 those in favor of accepting the message of

                 necessity will 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 21.  This

                 act shall take effect on the date an agreement

                 consistent with the provisions of this act

                 negotiated.

                            ACTING PRESIDENT McGEE:    Call the

                 roll.



                                                        5712



                            (The Secretary called the roll.)

                            THE SECRETARY:    Ayes, 58.

                            ACTING PRESIDENT McGEE:    The bill

                 is passed.

                            Senator Bruno.

                            SENATOR BRUNO:    Madam President,

                 could we recognize Senator Paterson.

                            ACTING PRESIDENT McGEE:    Senator

                 Paterson.

                            SENATOR PATERSON:    Thank you,

                 Madam President.

                            There will be a conference of the

                 Minority tomorrow at 1:30 --

                            ACTING PRESIDENT McGEE:    There

                 will be a conference of the Minority,

                 tomorrow --

                            SENATOR PATERSON:    -- Eastern

                 Daylight Time --

                            ACTING PRESIDENT McGEE:    -- at

                 1:30, Eastern Daylight Time --

                            SENATOR PATERSON:    -- in Room

                 314, which is actually the numerical

                 derivative of pi, Madam President.

                            ACTING PRESIDENT McGEE:    Thank

                 you very much, sir.  I appreciate that.



                                                        5713



                            -- in Room 314.

                            Senator Bruno.

                            SENATOR BRUNO:    And, Madam

                 President, I would like to recommend that the

                 Majority conference also at 1:00 o'clock.

                            That's also Eastern -- Eastern

                 Standard Time?  Daylight.

                            And I can't tell you what the pi

                 equivalent is, or whatever, but we'll accept

                 my learned colleague's description.

                            (Laughter.)

                            ACTING PRESIDENT McGEE:    Senate

                 Majority conference at 1:00 o'clock tomorrow.

                            SENATOR BRUNO:    Thank you, Madam

                 President.

                            ACTING PRESIDENT McGEE:    Thank

                 you, Senator Bruno.

                            SENATOR BRUNO:    And is there any

                 further Senate business at the desk that we

                 must contemplate?

                            ACTING PRESIDENT McGEE:    There is

                 no housekeeping at the desk.

                            SENATOR BRUNO:    There being none,

                 then I would move, our business being finished

                 for the day, that we stand adjourned until



                                                        5714



                 tomorrow, Wednesday, August 11th, at 2:00 p.m.

                            Thank you.

                            ACTING PRESIDENT McGEE:    On

                 motion, the Senate stands adjourned until

                 Wednesday, August 11th, at 2:00 p.m.

                            (Whereupon, at 3:35 p.m., the

                 Senate adjourned.)