Regular Session - January 25, 2005

    

 
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         1                 NEW YORK STATE SENATE

         2

         3

         4                THE STENOGRAPHIC RECORD

         5

         6

         7

         8

         9                   ALBANY, NEW YORK

        10                   January 25, 2005

        11                      11:14 a.m.

        12

        13

        14                    REGULAR SESSION

        15

        16

        17

        18  LT. GOVERNOR MARY O. DONOHUE, President

        19  STEVEN M. BOGGESS, Secretary

        20

        21

        22

        23

        24

        25



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         1                 P R O C E E D I N G S

         2                  THE PRESIDENT:    The Senate will

         3       please come to order.

         4                  I ask everyone present to please

         5       rise and repeat with me the Pledge of

         6       Allegiance.

         7                  (Whereupon, the assemblage recited

         8       the Pledge of Allegiance to the Flag.)

         9                  THE PRESIDENT:    With us this

        10       morning to give the invocation is Reverend Ken

        11       Lombardo, associate pastor at Resurrection

        12       Life Church in Cheektowaga.

        13                  REVEREND LOMBARDO:    Can we please

        14       bow our heads.

        15                  Father, we come to You in the name

        16       of Jesus and want to thank You for this

        17       awesome country that You have blessed us with.

        18       We thank You for this fine state of New York.

        19       And we thank You for each legislator that's

        20       represented here today.

        21                  Lord, we ask that they would seek

        22       Your wisdom and Your guidance on decisions to

        23       be made regarding the State of New York.  We

        24       pray that discretion will guard them in all

        25       their ways.



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         1                  Lord, we pray for Your hand to

         2       continue to bless this state in the

         3       advancement and the economic development of

         4       New York.  We also pray, Lord, that the

         5       prevalent needs of the needy will be satisfied

         6       throughout our state.

         7                  We pray, Lord, for Your continued

         8       hand of protection to watch over our state,

         9       that Your hand would watch us and keep us

        10       safe.

        11                  And we especially thank You for our

        12       military that has been so faithful in

        13       sacrificing their lives, laying their lives

        14       down so that we can experience freedom,

        15       independence and liberty.

        16                  Lord, we pray that You would keep

        17       them safe, that You would watch over them,

        18       that You would meet every need that they have,

        19       that You would help them to fulfill their

        20       mission and bring them home safe.

        21                  We ask now, Lord, that You would

        22       just bless this session, that you would cause

        23       it to be productive, and that much would be

        24       accomplished.

        25                  We ask this in Jesus' name.  Amen.



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         1                  THE PRESIDENT:    Reading of the

         2       Journal.

         3                  THE SECRETARY:    In Senate,

         4       Monday, January 24, the Senate met pursuant to

         5       adjournment.  The Journal of Friday,

         6       January 21, was read and approved.  On motion,

         7       Senate adjourned.

         8                  THE PRESIDENT:    Without

         9       objection, the Journal stands approved as

        10       read.

        11                  Presentation of petitions.

        12                  Messages from the Assembly.

        13                  Messages from the Governor.

        14                  Reports of standing committees.

        15                  The Secretary will read.

        16                  THE SECRETARY:    Senator Johnson,

        17       from the Committee on Finance, reports the

        18       following bills:

        19                  Senate Print 85, by Senator Skelos,

        20       an act to amend the Limited Liability Company

        21       Law and the Partnership Law;

        22                  215A, by Senator Volker, an act to

        23       amend the Tax Law;

        24                  216A, by Senator Volker, an act to

        25       amend the Tax Law;



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         1                  And Senate Print 752, by Senator

         2       McGee, an act to amend the Tax Law.

         3                  All bills ordered direct to third

         4       reading.

         5                  THE PRESIDENT:    Without

         6       objection, all bills directed to third

         7       reading.

         8                  Reports of select committees.

         9                  Communications and reports from

        10       state officers.

        11                  Motions and resolutions.

        12                  Senator Skelos.

        13                  SENATOR SKELOS:    Madam President,

        14       I move that we adopt the Resolution Calendar,

        15       with the exception of Resolution 199.

        16                  THE PRESIDENT:    All in favor of

        17       adopting the Resolution Calendar, with the

        18       exception of Resolution 199, please signify by

        19       saying aye.

        20                  (Response of "Aye.")

        21                  THE PRESIDENT:    Opposed, nay.

        22                  (No response.)

        23                  THE PRESIDENT:    The Resolution

        24       Calendar is adopted.

        25                  Senator Skelos.



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         1                  SENATOR SKELOS:    Madam President,

         2       if we could take up Resolution Number 199, by

         3       Senator Meier, have the title read and move

         4       for its immediate adoption.

         5                  THE PRESIDENT:    The Secretary

         6       will read.

         7                  THE SECRETARY:    By Senator Meier,

         8       Legislative Resolution Number 199, celebrating

         9       the first annual Susan B. Anthony Day of

        10       Commemoration in the State of New York on

        11       February 15, 2005.

        12                  THE PRESIDENT:    The question is

        13       on the resolution.  All in favor please

        14       signify by saying aye.

        15                  (Response of "Aye.")

        16                  THE PRESIDENT:    Opposed, nay.

        17                  (No response.)

        18                  THE PRESIDENT:    The resolution is

        19       adopted.

        20                  Senator Skelos.

        21                  SENATOR SKELOS:    Would you please

        22       take up Calendar Number 6, Senate Print 216A.

        23                  THE PRESIDENT:    The Secretary

        24       will read.

        25                  THE SECRETARY:    In relation to



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         1       Calendar Number 6, Senator Volker moves to

         2       discharge, from the Committee on

         3       Investigations, Assembly Bill Number 1500 and

         4       substitute it for the identical Senate Bill

         5       Number 216A, Third Reading Calendar 6.

         6                  THE PRESIDENT:    Substitution

         7       ordered.

         8                  The Secretary will read.

         9                  THE SECRETARY:    Calendar Number

        10       6, by the Assembly Committee on Rules,

        11       Assembly Print Number 1500, an act to amend

        12       the Tax Law.

        13                  THE PRESIDENT:    Senator Volker.

        14                  SENATOR VOLKER:    Madam President,

        15       this is an -- I think, given the nature of the

        16       situation under our new rules here, I would

        17       just like to explain quickly what this bill

        18       is.

        19                  This is an extender of the Erie

        20       County sales tax, which would make the Erie

        21       County sales tax 8 percent, or 8 and a

        22       quarter, because of our quarter, which we

        23       expect to let drop after the first of the

        24       year.

        25                  But this extender is the extender



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         1       relating to what I call a Rutkowski tax.

         2       There is another bill, which we do not have a

         3       home rule for, which is the Giambra tax, we

         4       call it, which is the request for another

         5       1 percent.

         6                  This bill does not have any sharing

         7       in it, which I think Senator Brown has a

         8       problem with.  The next bill does, the other

         9       bill, which will not move today because it

        10       does not have a home rule.

        11                  The problem is if we don't do this

        12       bill -- and what we're doing here today is

        13       enabling the Erie County Legislature to do the

        14       1 percent.  If we don't do it, there will be a

        15       huge hole in the Erie County budget.  I don't

        16       have to explain it to everybody.

        17                  So that's what this bill is.  We

        18       are not doing a tax.  This is an enabling

        19       legislation.  The tax will actually be done by

        20       the Erie County Legislature.  And we do have a

        21       home rule with 10 votes, which is two-thirds

        22       of the Erie County Legislature.

        23                  THE PRESIDENT:    Senator

        24       Stachowski.

        25                  SENATOR STACHOWSKI:    Madam



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         1       President, if Senator Volker would yield for a

         2       question.

         3                  SENATOR VOLKER:    Yeah, I can.

         4       Okay.  Sure.

         5                  THE PRESIDENT:    This is the

         6       noncontroversial calendar, Senator.

         7                  SENATOR STACHOWSKI:    Oh, I

         8       thought we were -- can we lay this aside to

         9       the controversial, because I have a couple of

        10       questions.

        11                  THE PRESIDENT:    Senator Skelos.

        12                  SENATOR SKELOS:    Lay the bill

        13       aside.

        14                  And if we could then go to the

        15       controversial calendar.

        16                  THE PRESIDENT:    The bill is laid

        17       aside.

        18                  Senator Skelos, that completes the

        19       reading of the noncontroversial calendar.

        20                  SENATOR SKELOS:    Then if we could

        21       ring the bells and go to the controversial

        22       calendar.

        23                  THE PRESIDENT:    The Secretary

        24       will read the controversial calendar.

        25                  THE SECRETARY:    Calendar Number



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         1       6, substituted earlier today by the Assembly

         2       Committee on Rules, Assembly Print Number

         3       1500, an act to amend the Tax Law.

         4                  THE PRESIDENT:    Senator

         5       Stachowski.

         6                  SENATOR STACHOWSKI:    Madam

         7       President, if Senator Volker would yield for a

         8       question.

         9                  THE PRESIDENT:    Senator Volker,

        10       do you yield for a question?

        11                  SENATOR VOLKER:    Certainly.

        12                  THE PRESIDENT:    Proceed, Senator

        13       Stachowski.

        14                  SENATOR STACHOWSKI:    Senator

        15       Volker, every year for years the conversation

        16       in Western New York and Erie County in

        17       particular has been, you know, why don't you

        18       change the makeup of this 1 percent of the

        19       sales tax.  And the standard reason for always

        20       doing it on noncontroversial calendar was

        21       because the Erie County budget was done.

        22                  But from everything I've seen in

        23       the papers and -- it still isn't done.  So if

        24       ever there would be a time to discuss this

        25       1 percent, even before we ever get to the



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         1       additional 1 percent, you know, the easy way

         2       for a county executive to balance his budget

         3       without ever having to raise property taxes or

         4       do any hard choices and still keep all your

         5       friends on, this would be it.  This would be

         6       our chance to discuss that and see if that's a

         7       better way of doing government or sharing with

         8       everybody else and making them more stable.

         9                  And maybe someday when we think of

        10       our option, instead of a Buffalo-Erie County

        11       merger that we've all been reading about, we

        12       could maybe go back to a system that worked

        13       successfully, the old board of supervisors,

        14       which would save an awful lot of money.

        15       Because then the board of supervisors would be

        16       doing the meeting and they would be agreeing

        17       on what should be done in a municipal

        18       agreement kind of way, and we wouldn't have to

        19       worry about creating new municipal zones, et

        20       cetera.

        21                  So wouldn't this properly be the

        22       time to maybe discuss this 1 percent?  Albeit

        23       I know that in reality this would really put

        24       him in a head-scratching mode.  But with his

        25       background as the City of Buffalo comptroller,



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         1       I would think that if anyone is capable of

         2       finding a way out without losing any of his

         3       friends, he might be able to do it.

         4                  SENATOR VOLKER:    That's a lot to

         5       answer, Senator.

         6                  I do have to admit to you that it

         7       is a rather odd situation.  Technically, the

         8       budget is passed in Erie County, although it

         9       is being challenged, if I understand.  The

        10       county legislature has not been able to get

        11       the 10 votes to do the next sales tax.

        12                  It is true that the county real

        13       property tax is 30 percent below what it was

        14       six years ago, which is not well known, I

        15       think, in Erie County.  But there has not been

        16       an increase in the Erie County real property

        17       tax in many years.

        18                  But I think the problem is if we

        19       don't do this 1 percent here -- which, by the

        20       way, there's already a home-rule message

        21       for -- we put the county in a position where

        22       they would automatically be in a default

        23       situation.  And quite frankly, as I've

        24       mentioned, possibly in a control board

        25       situation.  Because there's really, at this



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         1       point in January, not a great deal, I suppose,

         2       that could be done.  It would be awfully

         3       difficult.

         4                  Frankly, you talk about

         5       dysfunctional, unfortunately the county looks

         6       a little bit dysfunctional right now because

         7       here we are trying to patch holes in a budget.

         8       But I think the problem really is if we don't

         9       do this, they are in a total disaster

        10       situation.  So I would ask that we give them

        11       the authority.

        12                  And by the way, they could do --

        13       could technically do something else, I

        14       suppose, than this, although we don't seem to

        15       have enough votes to do anything else.

        16                  SENATOR STACHOWSKI:    Madam

        17       President, if the Senator would yield for one

        18       more question.

        19                  THE PRESIDENT:    Senator Volker,

        20       will you wield to another question?

        21                  SENATOR VOLKER:    Certainly.

        22                  THE PRESIDENT:    You may proceed,

        23       Senator Stachowski.

        24                  SENATOR STACHOWSKI:    Senator --

        25       and at the risk of being not germane, because



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         1       I want to ask you a question on the second

         2       bill that we're not doing today.  But it will

         3       enable me with a clear conscience to support

         4       this, because I hate to put him in a bigger

         5       hole than he already has.

         6                  Isn't it true that the bill we have

         7       at their request for 1 percent and has taken

         8       well over a -- this is a couple of months late

         9       now, isn't it true that that might not even be

        10       the bill that they may request?  Because

        11       they're now talking about 3/4 of a percent

        12       instead of a 1 percent, and then not giving

        13       aid to the localities but yet to get some of

        14       the votes he's going to still have to give aid

        15       to the localities, et cetera.

        16                  So don't we -- I mean, for that

        17       reason alone, I will probably vote for this.

        18       But isn't it true that they don't even know if

        19       they want 1 percent or .75 percent?

        20                  SENATOR VOLKER:    That is true.

        21       Although, you know, I believe -- and I may be

        22       wrong on this, but I think that if they wanted

        23       to do .75 or whatever it is, three quarters, I

        24       don't think they would actually need another

        25       bill.  Because this enables them to enact 1



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         1       percent.  But -- my counsel says they would

         2       need another bill.  I'm not so sure about

         3       that.

         4                  It's never happened before.  But

         5       think about it.  If we have a bill that says

         6       you can add 1 percent and they pass a

         7       resolution that says three-quarters of that,

         8       we probably would have to reaffirm it, maybe.

         9       But they probably could do it.

        10                  But you're right, they're now

        11       arguing again over whether it should be less

        12       than the 1 percent.

        13                  The other bill, as you know, has a

        14       sharing provision in it which was agreed to by

        15       the county legislature when they passed it

        16       initially.

        17                  SENATOR STACHOWSKI:    I'm sorry,

        18       Madam President, I actually have one --

        19       absolutely one last question.

        20                  THE PRESIDENT:    Senator Volker,

        21       will you yield for one last question?

        22                  SENATOR VOLKER:    I certainly

        23       will.

        24                  THE PRESIDENT:    You may proceed,

        25       Senator.



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         1                  SENATOR STACHOWSKI:    Senator,

         2       while you spoke you triggered something else

         3       in my mind.

         4                  Do you think any of the money from

         5       this extra 1 percent is the county money that

         6       our county executive used to put on

         7       commercials bashing all of state government

         8       for their ineffectiveness and their not able

         9       to do anything about Medicaid and it's because

        10       of their ineffectiveness?

        11                  And this is now a bill that -- this

        12       is now a budget that's not really settled that

        13       was due on November 1st, but we're -- do you

        14       think any of this money was used to pay for

        15       those TV commercials?  Because we do know he

        16       used taxpayers' money.

        17                  SENATOR VOLKER:    No, actually,

        18       the TV commercials, as I understand it, were

        19       monies that he -- were from his campaign fund.

        20       And I think the only money I know of that was

        21       county money was the money that was used to

        22       send around slingers and so forth claiming

        23       that with the extra penny it would take care

        24       of Medicaid.

        25                  There was no television or anything



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         1       of that nature.  That came, I think, out of

         2       his campaign fund and from some money that was

         3       raised from the business community in Buffalo,

         4       from what I understand.

         5                  SENATOR STACHOWSKI:    Thank you.

         6                  THE PRESIDENT:    Does any other

         7       member wish to be heard?

         8                  Senator Brown.

         9                  SENATOR BROWN:    Thank you, Madam

        10       President.

        11                  On the bill.

        12                  THE PRESIDENT:    You may proceed

        13       on the bill, Senator.

        14                  SENATOR BROWN:    I'm going to be

        15       voting against this increase in the Erie

        16       County sales tax, this additional 1 percent

        17       from 7 percent to 8 percent.

        18                  I've voted against increasing the

        19       Erie County sales tax in the past.  And the

        20       reason I have voted against it is because this

        21       additional 1 percent is not shared with the

        22       City of Buffalo.  The City of Buffalo, the

        23       second-largest city in the State of New York,

        24       the largest municipality in Erie County, the

        25       City of Buffalo is still roughly a third of



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         1       the county population.

         2                  And when I look at the sales-tax

         3       sharing in Monroe County with the City of

         4       Rochester and I look at the sales-tax sharing

         5       in Onondaga County with the City of Syracuse,

         6       both of those counties share more of their

         7       sales tax with their largest municipalities,

         8       their largest cities.  And those cities are

         9       not the percentage of those counties that the

        10       City of Buffalo is of Erie County.

        11                  So for that reason, I will be

        12       voting against this additional 1 percent tax.

        13                  Senator Stachowski and Senator

        14       Volker addressed the other bill that deals

        15       with yet an additional 1 percent tax in Erie

        16       County.  That will raise our sales tax to 9

        17       and a quarter percent, one of the highest

        18       sales taxes in the entire state.

        19                  And when that comes before us

        20       formally -- if it comes before us, if the

        21       executive and the legislature can get their

        22       acts together and it comes before us, I will

        23       be voting against that tax as well.  Because

        24       even though there is some sharing of that

        25       additional 1 percent tax with the City of



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         1       Buffalo, I don't think the sharing is enough.

         2                  I think we have to look at

         3       supporting the second-largest municipality in

         4       our state with more resources.  And the only

         5       growth tax in Erie County is the sales tax.

         6       And I think Erie County needs to do better by

         7       the City of Buffalo.  So I will be voting

         8       against this additional 1 percent.

         9                  THE PRESIDENT:    The debate is

        10       closed.

        11                  Read the last section.

        12                  THE SECRETARY:    Section 4.  This

        13       act shall take effect immediately.

        14                  THE PRESIDENT:    Call the roll.

        15                  (The Secretary called the roll.)

        16                  THE PRESIDENT:    Senator Maziarz,

        17       to explain your vote.

        18                  SENATOR MAZIARZ:    Thank you,

        19       Madam President.

        20                  Just very briefly, I am reluctantly

        21       voting in favor of this bill.  Because to vote

        22       against this bill is really to vote to lay off

        23       hundreds of Erie County employees, which would

        24       be devastating to the County of Erie.

        25                  That's what you're doing when



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         1       you're voting against this bill, and that's

         2       why I'm reluctantly voting in favor of this

         3       legislation.

         4                  Thank you.

         5                  THE PRESIDENT:    You will be so

         6       recorded as voting in the affirmative,

         7       Senator.

         8                  Senator Skelos.

         9                  SENATOR SKELOS:    Madam President,

        10       this is our first vote on the controversial

        11       calendar.

        12                  We'll keep the roll call open,

        13       because I know that there are a number of

        14       members on both sides of the aisle that are at

        15       a Finance subcommittee meeting.  They've been

        16       notified that we are on a controversial

        17       calendar vote, and they will be coming over

        18       shortly.

        19                  (Pause.)

        20                  THE PRESIDENT:    Senator Skelos.

        21                  SENATOR SKELOS:    Madam President,

        22       are we at that point of announcing the

        23       results?

        24                  THE PRESIDENT:    The Secretary

        25       will announce the results.



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         1                  (Pause.)

         2                  THE PRESIDENT:    Senator Skelos.

         3                  SENATOR SKELOS:    If you could

         4       announce the results.

         5                  THE PRESIDENT:    The Secretary

         6       will announce the results.

         7                  THE SECRETARY:    Ayes, 50.  Nays,

         8       1.

         9                  THE PRESIDENT:    The bill is

        10       passed.

        11                  Senator Skelos.

        12                  SENATOR SKELOS:    Is there any

        13       housekeeping at the desk?

        14                  THE PRESIDENT:    No, Senator

        15       Skelos.

        16                  SENATOR SKELOS:    Please recognize

        17       Senator Oppenheimer.

        18                  THE PRESIDENT:    Senator

        19       Oppenheimer.

        20                  SENATOR OPPENHEIMER:    Thank you

        21       very much.

        22                  I would like unanimous consent to

        23       be recorded in the affirmative on Calendar 6.

        24                  THE PRESIDENT:    You are so

        25       recorded, Senator.



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         1                  SENATOR OPPENHEIMER:    Thank you.

         2                  THE PRESIDENT:    Senator Skelos.

         3                  SENATOR SKELOS:    Is there any

         4       housekeeping at the desk?

         5                  THE PRESIDENT:    No, Senator.

         6                  SENATOR SKELOS:    There being no

         7       further business to come before the Senate, I

         8       move we stand adjourned until Monday,

         9       January 31st, at 3:00 p.m., intervening days

        10       being legislative days.

        11                  THE PRESIDENT:    On motion, the

        12       Senate now stands adjourned until Monday,

        13       January 31st, 3:00 p.m., intervening days

        14       being legislative days.

        15                  (Whereupon, at 11:37 a.m., the

        16       Senate adjourned.)

        17

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