Regular Session - March 14, 2005

                                                            1011



         1                 NEW YORK STATE SENATE

         2

         3

         4                THE STENOGRAPHIC RECORD

         5

         6

         7

         8

         9                   ALBANY, NEW YORK

        10                    March 14, 2005

        11                       3:18 p.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:    In the absence of

        10       clergy, may we bow our heads in a moment of

        11       silence, please.

        12                  (Whereupon, the assemblage

        13       respected a moment of silence.)

        14                  THE PRESIDENT:    Reading of the

        15       Journal.

        16                  THE SECRETARY:    In Senate,

        17       Sunday, March 13, the Senate met pursuant to

        18       adjournment.  The Journal of Saturday,

        19       March 12, was read and approved.  On motion,

        20       Senate adjourned.

        21                  THE PRESIDENT:    Without

        22       objection, the Journal stands approved as

        23       read.

        24                  Presentation of petitions.

        25                  Messages from the Assembly.



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         1                  Messages from the Governor.

         2                  Reports of standing committees.

         3                  The Secretary will read.

         4                  THE SECRETARY:    Senator Johnson,

         5       from the Committee on Finance, reports the

         6       following bills:

         7                  Senate Print 550D, Senate Budget

         8       Bill, an act making appropriations for the

         9       support of government, PUBLIC PROTECTION AND

        10       GENERAL GOVERNMENT BUDGET;

        11                  551A, Senate Budget Bill, an act

        12       making appropriations for the support of

        13       government, LEGISLATURE AND JUDICIARY BUDGET;

        14                  555D, Budget Bill, an act making

        15       appropriations for the support of government,

        16       TRANSPORTATION, ECONOMIC DEVELOPMENT AND

        17       ENVIRONMENTAL CONSERVATION BUDGET;

        18                  993B, Senate Budget Bill, an act to

        19       amend Chapter 728 of the Laws of 1982 and

        20       others;

        21                  994B, Budget Bill, an act to amend

        22       the Public Authorities Law and others;

        23                  995C, Senate Budget Bill, an act to

        24       amend the Tax Law and others;

        25                  3274, Budget Bill, an act to amend



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         1       Chapters 50, 53, 54 and 55 of the Laws of

         2       2004, making appropriations for the support of

         3       government;

         4                  3275, Budget Bill, an act to amend

         5       Chapter 2 of the Laws of 1998, amending the

         6       Public Health Law and others;

         7                  553D, Budget Bill, an act making

         8       appropriations for the support of government,

         9       EDUCATION, LABOR AND FAMILY ASSISTANCE BUDGET;

        10                  554D, Budget Bill, an act making

        11       appropriations for the support of government,

        12       HEALTH AND MENTAL HYGIENE BUDGET;

        13                  990B, Budget Bill, an act to amend

        14       the Penal Law and others;

        15                  991B, Budget Bill, an act to amend

        16       the Public Authorities Law and others;

        17                  And Senate Print 992B, Senate

        18       Budget Bill, an act to amend the Public Health

        19       Law and others.

        20                  All bills ordered direct to third

        21       reading.

        22                  THE PRESIDENT:    Without

        23       objection, the bills are ordered direct to

        24       third reading.

        25                  The Secretary will read.



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         1                  THE SECRETARY:    Senator Johnson,

         2       from the Committee on Finance, reports the

         3       following nominations:

         4                  As a member of the New York State

         5       Urban Development Corporation, Mark E.

         6       Hamister, of Clarence.

         7                  As a member of the Advisory Council

         8       to the Commission on Quality of Care for the

         9       Mentally Disabled, Elizabeth Wickerham, of

        10       Saratoga Springs.

        11                  As a member of the State Council on

        12       the Arts, David A.A. Ridings, of Syracuse.

        13                  As members of the Board of Visitors

        14       of the Binghamton Psychiatric Center, Frances

        15       Felice, of Binghamton, and John J. Wiktor, of

        16       Binghamton.

        17                  As a member of the Board of

        18       Visitors of the Central New York Developmental

        19       Disabilities Services Office, Virginia M.

        20       Ellis, of Auburn.

        21                  As a member of the Board of

        22       Visitors of the Elmira Psychiatric Center,

        23       James J. Norton, M.D., of Montour Falls.

        24                  As a member of the Board of

        25       Visitors of the Bernard J. Fineson



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         1       Developmental Disabilities Services Office,

         2       Sandra J. Rueda, of Astoria.

         3                  As a member of the Board of

         4       Visitors of the Helen Hayes Hospital, Ann C.

         5       O'Sullivan, of Stony Point.

         6                  As a member of the Board of

         7       Visitors of the Hudson Valley Developmental

         8       Disabilities Services Office, Howard Coron,

         9       Ph.D., of Forestburgh.

        10                  As a member of the Board of

        11       Visitors of the Long Island Developmental

        12       Disabilities Services Office, Mary Fasano, of

        13       Massapequa.

        14                  As a member of the Board of

        15       Visitors of the Manhattan Psychiatric Center,

        16       Peter G. Holden, Sr., of New York City.

        17                  As a member of the Board of

        18       Visitors of the Mid-Hudson Psychiatric Center,

        19       Theodore J. Lewis, of Godeffroy.

        20                  As members of the Board of Visitors

        21       of the Rochester Psychiatric Center, Martha R.

        22       Cucci, of Rochester, and Hilda R. Escher, of

        23       Rochester.

        24                  And as members of the Board of

        25       Visitors of the Sunmount Developmental



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         1       Disabilities Services Office, Gilbert A.

         2       Duken, of Plattsburgh, and Margaret Kolodzey,

         3       of Moriah.

         4                  THE PRESIDENT:    Senator Johnson.

         5                  SENATOR JOHNSON:    Move the

         6       nominations, Madam President.

         7                  THE PRESIDENT:    All in favor of

         8       the nominations as stated by the Secretary

         9       please signify by saying aye.

        10                  (Response of "Aye.")

        11                  THE PRESIDENT:    Opposed, nay.

        12                  (No response.)

        13                  THE PRESIDENT:    The nominees as

        14       stated by the Secretary are hereby confirmed.

        15                  Senator Bruno.

        16                  SENATOR BRUNO:    Madam President,

        17       can we at this time proceed in regular order.

        18                  THE PRESIDENT:    Reports of select

        19       committees.

        20                  Communications and reports from

        21       state officers.

        22                  Motions and resolutions.

        23                  SENATOR BRUNO:    Madam President,

        24       I believe that there is a privileged

        25       resolution by Senator John DeFrancisco.  I



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         1       would ask that it be read in its entirety and

         2       move for its immediate adoption.

         3                  THE PRESIDENT:    The Secretary

         4       will read.

         5                  THE SECRETARY:    By Senator

         6       DeFrancisco, Legislative Resolution Number

         7       810, congratulating the Marcellus Central High

         8       School Lady Mustangs Girls Soccer Team and

         9       Coach Laurie Updike upon the occasion of

        10       capturing the 2004 New York State Class B

        11       Championship.

        12                  "WHEREAS, Excellence and success in

        13       competitive sports can be achieved only

        14       through strenuous practice, team play and team

        15       spirit, nurtured by dedicated coaching and

        16       strategic planning; and

        17                  "WHEREAS, Athletic competition

        18       enhances the moral and physical development of

        19       the young people of this State, preparing them

        20       for the future by instilling in them the value

        21       of teamwork, encouraging a standard of healthy

        22       living, imparting a desire for success and

        23       developing a sense of fair play and

        24       competition; and

        25                  "WHEREAS, It is the sense of this



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         1       Legislative Body to recognize and pay tribute

         2       to those young people within the State of

         3       New York who, achieving outstanding success in

         4       athletic competition, have inspired and

         5       brought pride to their school; and

         6                  "WHEREAS, This Legislative Body is

         7       justly proud to congratulate the Marcellus

         8       Central High School Lady Mustangs Girls Soccer

         9       Team and Coach Laurie Updike upon the occasion

        10       of capturing the 2004 New York State Public

        11       High School Athletic Association Class B

        12       Championship for the second consecutive year;

        13       and

        14                  "WHEREAS, The Marcellus Lady

        15       Mustangs enjoyed a truly outstanding season.

        16       They compiled an overall regular season record

        17       of 16 wins, just one loss, and a single tie.

        18       In league play, the Marcellus Girls Soccer

        19       Team were undefeated, compiling a most

        20       impressive record of 10 consecutive victories;

        21       and

        22                  "WHEREAS, Moving on to the

        23       post-season, the Lady Mustangs defeated

        24       Mount Markham, Cazenovia, and fifth-seeded

        25       Skaneateles to earn the Section III



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         1       Championship Title and the right to continue

         2       competing at regionals.  They then went on to

         3       defeat both Chatham, 5-0, and Beekmantown,

         4       4-2, to win regionals; and

         5                  "WHEREAS, The Marcellus Girls

         6       Soccer Team then faced a huge test in the

         7       New York State Class B Semifinals, where they

         8       were matched against Babylon.  At the end of

         9       the regulation time, the teams had played to a

        10       1-1 tie, sending the game into overtime.  The

        11       Lady Mustangs emerged victorious after Katie

        12       Young headed a corner kick into the net in the

        13       first overtime period, thereby ending the game

        14       2-1 and propelling Marcellus into their second

        15       consecutive appearance in the New York State

        16       Class B Championship Game.  It was to be

        17       played against Fredonia on November 20, 2004,

        18       at Ty Cobb Stadium at Union-Endicott; and

        19                  "WHEREAS, The Marcellus High School

        20       Girls Soccer Team was well aware of the

        21       challenges to be faced in their final game

        22       against Fredonia.  The Section VI champions

        23       had compiled a most impressive overall record

        24       of 19 wins, 3 losses, and a single tie; and

        25                  "WHEREAS, The Lady Mustangs took to



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         1       the field and outscored Fredonia 2-0 by

         2       half-time.  Outstanding footwork, passing and

         3       a determination to capture a second Class B

         4       Title combined to help the Lady Mustangs end

         5       the game by shutting out Fredonia by a score

         6       of 6-0 and thereby capturing the 2004 New York

         7       State Class B Championship; and

         8                  "WHEREAS, The athletic talent

         9       displayed by this team is due in great part to

        10       the efforts of Head Coach Laurie Updike and

        11       her assistant coaches, Mike Vincent and Lisa

        12       MacLachlan, as well as the never-ending

        13       encouragement and support of friends, family

        14       and the entire Marcellus Central School

        15       community; and

        16                  "WHEREAS, This most exceptional

        17       team was proud to have among them Jenna

        18       Farneti, who was honored twice by having been

        19       named Class B Player of the Year as well as

        20       All Central New York Player of the Year; three

        21       players who were named to the All-State First

        22       Team; one team member who was named to the

        23       All-State Second Team; seven All-League First

        24       Team Players; five All-League Second Team

        25       players and one All-League Honorable Mention;



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         1       two members who were named to the All-CNY and

         2       one to the Third Team; and five Lady Mustangs

         3       who were named to the All-Section III All-Star

         4       Team; and

         5                  "WHEREAS, No team, no matter how

         6       gifted one or even a handful of individuals

         7       may be, can accomplish all that has been

         8       achieved by the Marcellus Central Lady

         9       Mustangs without exceptional skills teamwide.

        10       The 2004 New York State Class B Champion Lady

        11       Mustangs had talented team members throughout

        12       its player roster that included Jenna Farneti,

        13       Rachel Farneti, Stephanie Gosson, Kelly

        14       Hanlon, Sarah Holden, Jocie Jankowski, Megan

        15       Kaminska, Lauren Longo, Alyssa MacLachlan,

        16       Meghan Mannion, Ashley Martin, Alyse O'Brien,

        17       Emmy Potter, Sarah Potter, Catherine Scott,

        18       Amanda Stessen, Hannah Vaughn, Katie Walter,

        19       Amy Ware, Jennifer Young, Katie Young, Emily

        20       Zimmerman, and Katie Zimmerman; and

        21                  "WHEREAS, The Marcellus High School

        22       Girls Soccer Team received a 'Certificate of

        23       Academic Achievement' from the New York State

        24       Public High School Athletic Association.  This

        25       honor is accorded only to those teams who



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         1       achieve academic excellence while actively

         2       participating in varsity-level interscholastic

         3       athletics; and

         4                  "WHEREAS, The 2004 Lady Mustangs

         5       shared noteworthy attributes off the field, as

         6       well as in competition.  Individually and

         7       collectively, they constantly exhibited good

         8       sportsmanship and scholarship, thereby

         9       demonstrating to themselves and to others that

        10       they have an enviable combination of talent

        11       and character which reflects favorably upon

        12       their school and their community; now,

        13       therefore, be it

        14                  "RESOLVED, That this Legislative

        15       Body pause in its deliberations to

        16       congratulate the Marcellus Central High School

        17       Girls Soccer Team and Coach Laurie Updike on

        18       their successful season, overall team record,

        19       and capturing the New York State Class B

        20       Championship; and be it further

        21                  "RESOLVED, That copies of this

        22       Resolution, suitably engrossed, be transmitted

        23       to the members of the Marcellus High School

        24       Girls Soccer Team and to Coach Laurie Updike."

        25                  THE PRESIDENT:    Senator



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         1       DeFrancisco.

         2                  SENATOR DeFRANCISCO:    Madam

         3       President, I'm pleased to rise to congratulate

         4       the Lady Mustangs.

         5                  The resolution actually is a little

         6       longer.  It gives a little history of the

         7       season.  But today we're passing budget bills,

         8       and we couldn't read all of it.  But it will

         9       be on the resolution that you receive.  It's

        10       part of the record, permanent record of the

        11       New York State Senate congratulating all of

        12       you for an outstanding season.  And to do --

        13       to earn a state championship two years in a

        14       row is truly remarkable.

        15                  But what wasn't really mentioned I

        16       think is a significant part of this resolution

        17       that all of us should be more concerned about,

        18       and that is that the Lady Mustangs received a

        19       Certificate of Academic Achievement from the

        20       New York State Public High School Athletic

        21       Association, an honor accorded to only those

        22       teams who achieve academic excellence while

        23       actively participating in varsity-level

        24       interscholastic activities.  That's an

        25       outstanding achievement.



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         1                  So I want to thank you.  And you've

         2       repeated, now let's see if you can three-peat

         3       next year.

         4                  And I was looking very carefully,

         5       because someone mentioned this to me, whether

         6       there was a Mustang Sally on the team.  You're

         7       too young to know what that means, but

         8       apparently there is not.

         9                  But hopefully next year you'll be

        10       back here and win another championship and

        11       keep up the great academic achievement.  I'm

        12       proud that you're all members of my district.

        13                  Thank you.

        14                  THE PRESIDENT:    The question is

        15       on the resolution.  All in favor please

        16       signify by saying aye.

        17                  (Response of "Aye.")

        18                  THE PRESIDENT:    Opposed, nay.

        19                  (No response.)

        20                  THE PRESIDENT:    The resolution is

        21       adopted.

        22                  Congratulations and best wishes for

        23       continued success in all your ventures.

        24                  SENATOR BRUNO:    Madam President.

        25                  THE PRESIDENT:    Senator Bruno.



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         1                  SENATOR BRUNO:    Can we at this

         2       time have the noncontroversial reading of the

         3       calendar.

         4                  THE PRESIDENT:    The Secretary

         5       will read.

         6                  THE SECRETARY:    Calendar Number

         7       60, by Senator Maziarz, Senate Print 120, an

         8       act to amend the Environmental Conservation

         9       Law, in relation to reducing the --

        10                  SENATOR SCHNEIDERMAN:    Lay it

        11       aside.

        12                  THE PRESIDENT:    The bill is laid

        13       aside.

        14                  THE SECRETARY:    Calendar Number

        15       84, by Senator DeFrancisco, Senate Print 2151,

        16       an act to amend the Estates, Powers and Trusts

        17       Law, in relation to an order for the purposes.

        18                  THE PRESIDENT:    Read the last

        19       section.

        20                  THE SECRETARY:    Section 2.  This

        21       act shall take effect immediately.

        22                  THE PRESIDENT:    Call the roll.

        23                  (The Secretary called the roll.)

        24                  THE SECRETARY:    Ayes, 55.

        25                  THE PRESIDENT:    The bill is



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         1       passed.

         2                  THE SECRETARY:    Calendar Number

         3       102, by Senator Skelos, Senate Print 1150A, an

         4       act to amend the Penal Law, in relation to

         5       concurrent and consecutive terms of

         6       imprisonment.

         7                  THE PRESIDENT:    Read the last

         8       section.

         9                  THE SECRETARY:    Section 2.  This

        10       act shall take effect on the first of

        11       November.

        12                  THE PRESIDENT:    Call the roll.

        13                  (The Secretary called the roll.)

        14                  THE SECRETARY:    Ayes, 55.

        15                  THE PRESIDENT:    The bill is

        16       passed.

        17                  THE SECRETARY:    Calendar Number

        18       106, by Senator Rath, Senate Print 1519, an

        19       act to amend the Penal Law, in relation to

        20       aggravated harassment.

        21                  THE PRESIDENT:    Read the last

        22       section.

        23                  THE SECRETARY:    Section 2.  This

        24       act shall take effect on the first of

        25       November.



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         1                  THE PRESIDENT:    Call the roll.

         2                  (The Secretary called the roll.)

         3                  THE SECRETARY:    Ayes, 55.

         4                  THE PRESIDENT:    The bill is

         5       passed.

         6                  THE SECRETARY:    Calendar Number

         7       116, by Senator Marcellino, Senate Print

         8       671 --

         9                  SENATOR PATERSON:    Lay it aside,

        10       please.

        11                  THE PRESIDENT:    The bill is laid

        12       aside.

        13                  THE SECRETARY:    Calendar Number

        14       145, by Senator Little, Senate Print 740, an

        15       act to amend the Parks, Recreation and

        16       Historic Preservation Law, in relation to

        17       allowing.

        18                  THE PRESIDENT:    Read the last

        19       section.

        20                  THE SECRETARY:    Section 2.  This

        21       act shall take effect immediately.

        22                  THE PRESIDENT:    Call the roll.

        23                  (The Secretary called the roll.)

        24                  THE SECRETARY:    Ayes, 55.

        25                  THE PRESIDENT:    The bill is



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         1       passed.

         2                  THE SECRETARY:    Calendar Number

         3       146, by Senator Golden, Senate Print 2192, an

         4       act in relation to repealing certain

         5       provisions of the Elder Law.

         6                  ACTING PRESIDENT WRIGHT:    Read

         7       the last section.

         8                  THE SECRETARY:    Section 4.  This

         9       act shall take effect immediately.

        10                  ACTING PRESIDENT WRIGHT:    Call

        11       the roll.

        12                  (The Secretary called the roll.)

        13                  THE SECRETARY:    Ayes, 55.

        14                  ACTING PRESIDENT WRIGHT:    The

        15       bill is passed.

        16                  THE SECRETARY:    Calendar Number

        17       155, by Senator Winner, Senate Print 1425, an

        18       act to amend the Penal Law, in relation to

        19       leaving the scene of a hunting accident.

        20                  ACTING PRESIDENT WRIGHT:    Read

        21       the last section.

        22                  THE SECRETARY:    Section 2.  This

        23       act shall take effect on the first of

        24       November.

        25                  ACTING PRESIDENT WRIGHT:    Call



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         1       the roll.

         2                  (The Secretary called the roll.)

         3                  THE SECRETARY:    Ayes, 55.

         4                  ACTING PRESIDENT WRIGHT:    The

         5       bill is passed.

         6                  THE SECRETARY:    Calendar Number

         7       163, by Senator Meier, Senate Print 2440, an

         8       act to amend the Penal Law, in relation to

         9       inciting to riot in the first degree.

        10                  ACTING PRESIDENT WRIGHT:    Read

        11       the last section.

        12                  SENATOR SCHNEIDERMAN:    Lay it

        13       aside.

        14                  ACTING PRESIDENT WRIGHT:    Lay the

        15       bill aside.

        16                  Senator Bruno.

        17                  SENATOR BRUNO:    Mr. President,

        18       can we ring the bells.  We are going to

        19       proceed to the controversial calendar, and we

        20       need members in their seats to vote.

        21                  ACTING PRESIDENT WRIGHT:    The

        22       Secretary will ring the bell.

        23                  Senator Bruno.

        24                  SENATOR BRUNO:    Mr. President,

        25       can we at this time recognize Senator Serrano



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         1       for the purpose of making a statement.

         2                  ACTING PRESIDENT WRIGHT:    Senator

         3       Serrano.

         4                  SENATOR SERRANO:    Thank you.  On

         5       Tuesday, March 8th, I was excused from

         6       session.  Had I been here in the chamber for

         7       the debate on Calendar 172, Senate Bill 2727,

         8       the death penalty bill, I'd just like the

         9       record to reflect that I opposed this bill and

        10       would have voted no on it had I the

        11       opportunity.

        12                  Thank you, Mr. President.

        13                  ACTING PRESIDENT WRIGHT:    Thank

        14       you.  The record will so note.

        15                  Senator Bruno.

        16                  SENATOR BRUNO:    Mr. President, on

        17       the controversial calendar, can we start by

        18       taking up Calendar Number 116.

        19                  ACTING PRESIDENT WRIGHT:    The

        20       Secretary will read.

        21                  THE SECRETARY:    Calendar Number

        22       116, by Senator Marcellino, Senate Print 671,

        23       an act to amend the Vehicle and Traffic Law,

        24       in relation to the enforcement of the offense

        25       of operating a motor vehicle with a suspended



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         1       license.

         2                  SENATOR MONTGOMERY:    Explanation.

         3                  ACTING PRESIDENT WRIGHT:    Senator

         4       Marcellino, an explanation has been requested.

         5                  SENATOR MARCELLINO:    Thank you,

         6       Mr. President.

         7                  This bill allows for the offense of

         8       operating a motor vehicle with a suspended

         9       license to be enforced in a parking lot.

        10                  ACTING PRESIDENT WRIGHT:    Senator

        11       Montgomery.

        12                  SENATOR MONTGOMERY:    Thank you

        13       for the explanation, Senator.

        14                  I know that I voted in the past in

        15       opposition of this bill.  Was there any

        16       changes -- Mr. President, through you, if

        17       Senator Marcellino would yield.

        18                  ACTING PRESIDENT WRIGHT:    Senator

        19       Marcellino, will you yield for a question?

        20                  SENATOR MARCELLINO:    Surely.

        21                  ACTING PRESIDENT WRIGHT:    The

        22       Senator will yield.

        23                  Senator Montgomery.

        24                  SENATOR MONTGOMERY:    Senator

        25       Marcellino, was there any change in this



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         1       legislation from the last year when you

         2       introduced it?

         3                  SENATOR MARCELLINO:    No, Senator,

         4       I don't believe so.

         5                  ACTING PRESIDENT WRIGHT:    Senator

         6       Montgomery.

         7                  SENATOR MONTGOMERY:    Mr.

         8       President, I would like the record to reflect

         9       that I'm voting no on this legislation.

        10                  ACTING PRESIDENT WRIGHT:    Any

        11       other Senator wishing to speak?

        12                  Senator Diaz.

        13                  SENATOR DIAZ:    Mr. President,

        14       would the sponsor yield for a question.

        15                  ACTING PRESIDENT WRIGHT:    Senator

        16       Marcellino, will you yield to a question?

        17                  SENATOR MARCELLINO:    I don't want

        18       to interfere with the conversation.

        19                  ACTING PRESIDENT WRIGHT:    I

        20       believe that's a yes.

        21                  SENATOR MARCELLINO:    Yes, I would

        22       yield.

        23                  SENATOR DIAZ:    Senator, isn't the

        24       parking industry a private thing?

        25                  SENATOR MARCELLINO:    I'm sorry,



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         1       Senator, I couldn't hear.  I didn't get what

         2       you said.

         3                  SENATOR DIAZ:    Isn't the parking

         4       industry, people that do parking, isn't that a

         5       private industry?

         6                  SENATOR MARCELLINO:    If you're

         7       talking about the parking garages, this would

         8       be a private industry, yes.  And parking lots

         9       in some cases would be private industry, yes.

        10                  SENATOR DIAZ:    Mr. President,

        11       would the sponsor yield for another question.

        12                  ACTING PRESIDENT WRIGHT:    Senator

        13       Marcellino, do you continue to yield?

        14                  SENATOR MARCELLINO:    Yes, sir.

        15                  SENATOR DIAZ:    Isn't that similar

        16       to having someone driving a car in the private

        17       property of my house?

        18                  SENATOR MARCELLINO:    Senator, the

        19       bill excludes one- and two-family residences.

        20       So no, it would not include your private

        21       driveway to your single-family or two-family

        22       home.

        23                  SENATOR DIAZ:    Thank you.

        24                  ACTING PRESIDENT WRIGHT:    Senator

        25       Diaz, thank you.



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         1                  The Secretary will ring the bell

         2       again.

         3                  The Secretary will read the last

         4       section.

         5                  THE SECRETARY:    Section 3.  This

         6       act shall take effect on the first of

         7       November.

         8                  ACTING PRESIDENT WRIGHT:    Call

         9       the roll.

        10                  (The Secretary called the roll.)

        11                  THE SECRETARY:    Those recorded in

        12       the negative on Calendar Number 116 are

        13       Senators Diaz and Montgomery.

        14                  Those absent from voting are

        15       Senators Balboni, Dilan, Flanagan, Maltese,

        16       Maziarz, and Spano.

        17                  ACTING PRESIDENT WRIGHT:

        18       Announce the results.

        19                  THE SECRETARY:    Ayes, 50.  Nays,

        20       2.

        21                  ACTING PRESIDENT WRIGHT:    The

        22       bill is passed.

        23                  The Secretary will read.

        24                  THE SECRETARY:    Calendar Number

        25       163, by Senator Meier, Senate Print 2440, an



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         1       act to amend the Penal Law, in relation to

         2       inciting to riot in the first degree.

         3                  SENATOR SCHNEIDERMAN:

         4       Explanation.

         5                  ACTING PRESIDENT WRIGHT:    Senator

         6       Meier, an explanation has been requested.

         7                  SENATOR MEIER:    Thank you, Mr.

         8       President.

         9                  This bill amends the Penal Law to

        10       provide that the felony of inciting riot in

        11       the first degree can be charged against

        12       someone who has incited a riot within a

        13       prison.

        14                  The courts have interpreted the

        15       requirement in the existing statute that the

        16       riotous conduct caused public alarm to mean

        17       alarm in the broader community.  This would

        18       amend the law so that causing alarm by the

        19       riotous conduct within the prison facility

        20       would suffice.

        21                  ACTING PRESIDENT WRIGHT:    Senator

        22       Montgomery.

        23                  SENATOR MONTGOMERY:    Yes, Mr.

        24       President, I accept the explanation.  And I

        25       would like to just vote on the bill.



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         1                  ACTING PRESIDENT WRIGHT:    Any

         2       other Senator wishing to speak?

         3                  Debate is closed.

         4                  Read the last section.

         5                  THE SECRETARY:    Section 2.  This

         6       act shall take effect on the first of

         7       November.

         8                  ACTING PRESIDENT WRIGHT:    Call

         9       the roll.

        10                  (The Secretary called the roll.)

        11                  ACTING PRESIDENT WRIGHT:    The

        12       Secretary will announce the results.

        13                  THE SECRETARY:    Those recorded in

        14       the negative on Calendar Number 163:  Senator

        15       Montgomery.

        16                  Those absent from voting, Senators

        17       Balboni -- excuse me.  Senator Balboni is

        18       recorded in the affirmative and not absent

        19       from voting.

        20                  Those absent from voting on

        21       Calendar Number 163:  Senators Dilan,

        22       Flanagan, Maltese, Maziarz, and Spano.

        23                  Ayes, 52.  Nays, 1.

        24                  ACTING PRESIDENT WRIGHT:    The

        25       bill is passed.



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         1                  Senator Bruno.

         2                  SENATOR BRUNO:    Mr. President,

         3       can we please take up the noncontroversial

         4       reading of the supplemental calendar.

         5                  ACTING PRESIDENT WRIGHT:    The

         6       Secretary will read.

         7                  THE SECRETARY:    Calendar Number

         8       269, Senate Print 550D, Senate Budget Bill, an

         9       act making appropriations for the support of

        10       government, PUBLIC PROTECTION AND GENERAL

        11       GOVERNMENT BUDGET.

        12                  SENATOR PATERSON:    Lay it aside.

        13                  ACTING PRESIDENT WRIGHT:    The

        14       bill is laid aside.

        15                  THE SECRETARY:    Calendar Number

        16       270, Senate Budget Bill, Senate Print 551A, an

        17       act making appropriations for the support of

        18       government on LEGISLATURE AND JUDICIARY

        19       BUDGET.

        20                  SENATOR PATERSON:    Lay it aside.

        21                  ACTING PRESIDENT WRIGHT:    The

        22       bill is laid aside.

        23                  THE SECRETARY:    Calendar Number

        24       271, Senate Budget Bill, Senate Print 555D, an

        25       act making appropriations for the support of



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         1       government, TRANSPORTATION, ECONOMIC

         2       DEVELOPMENT AND ENVIRONMENTAL CONSERVATION

         3       BUDGET.

         4                  SENATOR PATERSON:    Lay it aside.

         5                  ACTING PRESIDENT WRIGHT:    The

         6       bill is laid aside.

         7                  THE SECRETARY:    Calendar Number

         8       272, Senate Budget Bill, Senate Print 993B, an

         9       act to amend Chapter 728 of the Laws of 1982

        10       and Chapter 710 of the Laws of 1983 amending

        11       the Executive Law.

        12                  SENATOR PATERSON:    Lay it aside.

        13                  ACTING PRESIDENT WRIGHT:    The

        14       bill is laid aside.

        15                  THE SECRETARY:    Calendar Number

        16       273, Senate Budget Bill, Senate Print 994B, an

        17       act to amend the Public Authorities Law.

        18                  SENATOR PATERSON:    Lay it aside.

        19                  ACTING PRESIDENT WRIGHT:    The

        20       bill is laid aside.

        21                  THE SECRETARY:    Calendar Number

        22       274, Senate Budget Bill, Senate Print 995C, an

        23       act to amend the Tax Law.

        24                  SENATOR PATERSON:    Lay it aside.

        25                  ACTING PRESIDENT WRIGHT:    The



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         1       bill is laid aside.

         2                  THE SECRETARY:    Calendar Number

         3       275, Senate Budget Bill, Senate Print 3274, an

         4       act to amend Chapters 50, 53, 54 and 55 of the

         5       Laws of 2004.

         6                  SENATOR PATERSON:    Lay it aside.

         7                  SENATOR MONTGOMERY:    Lay it

         8       aside.

         9                  ACTING PRESIDENT WRIGHT:    The

        10       bill is laid aside.

        11                  THE SECRETARY:    Calendar Number

        12       276, Senate Budget Bill, Senate Print 3275, an

        13       act to amend Chapter 2 of the Laws of 1998,

        14       amending the Public Health Law and others.

        15                  SENATOR OPPENHEIMER:    Lay it

        16       aside.

        17                  ACTING PRESIDENT WRIGHT:    The

        18       bill is laid aside.

        19                  Senator Bruno, that completes the

        20       reading of the noncontroversial supplemental

        21       calendar.

        22                  Senator Bruno.

        23                  SENATOR BRUNO:    Mr. President,

        24       can we at this time have the controversial

        25       reading of the supplemental calendar.



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         1                  ACTING PRESIDENT WRIGHT:    The

         2       Secretary will ring the bells, and we'll begin

         3       the reading of the controversial calendar.

         4                  THE SECRETARY:    Calendar Number

         5       269, Senate Budget Bill, Senate Print 550D, an

         6       act making appropriations for the support of

         7       government.

         8                  SENATOR SCHNEIDERMAN:

         9       Explanation.

        10                  ACTING PRESIDENT WRIGHT:    Senator

        11       Johnson, an explanation has been requested.

        12                  SENATOR JOHNSON:    Mr. President,

        13       this is the Public Protection and General

        14       Government Budget.

        15                  ACTING PRESIDENT WRIGHT:    Senator

        16       Bruno.

        17                  SENATOR BRUNO:    Would Senator

        18       Johnson defer for two minutes here of -- and

        19       thank you, Senator, and Mr. President and

        20       colleagues.

        21                  We're starting the budget process

        22       here towards getting something done by

        23       March 31st this year.  First time in 21 years

        24       to have an on-time budget.  And I want to

        25       thank my colleagues, thank all of the support



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         1       that we've had.

         2                  We have before us the beginning of

         3       what will be our openers here in the Senate

         4       with a budget.  And this budget that you're

         5       going to vote on meets all of the Court of

         6       Appeals language requirements so that this

         7       budget can become law.

         8                  Right now, it's a one-house budget

         9       because it's before the Senate.  This does a

        10       lot of the necessary things to benefit the

        11       people of this state.  We won't go into the

        12       specifics, but I believe there are half a

        13       dozen bills that are the first half of putting

        14       this budget in place.

        15                  As you all know, the Assembly has

        16       done a budget resolution.  Now, the Assembly

        17       is a larger body than the Senate, and they

        18       couldn't get bills drafted.  They did the

        19       resolution, which is a general approach to the

        20       budget.

        21                  These are specific bills.  Any

        22       resolution has to be put in bill form.  We're

        23       starting the process tomorrow.  We expect to

        24       have a meeting of the first conference

        25       committee, the general conference committee,



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         1       at 10:00 o'clock tomorrow morning, hopefully.

         2       I'm going to talk to the Speaker, going to be

         3       talking to the Governor.  And then activate,

         4       while we're going through the process here

         5       tomorrow, conference committees.  So that all

         6       the members in the Legislature here in this

         7       house are actively, publicly engaged in the

         8       budget process.

         9                  Now, we're going to have a real

        10       challenge to get this done, because these are

        11       challenging times.  But we think that we are

        12       reasonable, we are rational in terms of

        13       education, health care, the infrastructure of

        14       the state, higher ed, meeting the needs of the

        15       people of this state and creating the revenue,

        16       which will be in the neighborhood of 106,

        17       probably, .7 billion in this one-house budget.

        18                  And again, I say "one house"

        19       because, as you all know, in budget reform

        20       each house passes their budget or their

        21       resolution, as they see fit, you activate

        22       conference committees, the whole process is

        23       public, you come to a togetherness, and those

        24       bills that you come together on will be passed

        25       by March 31st and you have a budget in place



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         1       for the people of this state.

         2                  So this is the process that we're

         3       starting.  And hopefully we can keep the

         4       process moving through tomorrow.  And we fully

         5       expect to stay right here until Holy Thursday,

         6       which is -- Holy Thursday before Easter, it's

         7       the 24th of March.  That's a week from this

         8       Thursday.

         9                  So that's where we are.  That's

        10       what we have in place.  And hopefully with the

        11       cooperation -- and we need the Assembly with

        12       the Senate, and the Governor's signature, for

        13       the bills that we're going to enact, or the

        14       compromise.  And compromise is the way we'll

        15       get a budget done by March 31st, and the

        16       people of this state will have the budget on

        17       time, for the first time in 21 years, that

        18       they deserve.

        19                  Thank you, Mr. President.

        20                  ACTING PRESIDENT WRIGHT:    Thank

        21       you, Senator Bruno.

        22                  We are on Calendar Number 269,

        23       controversial calendar.  Senator Johnson, an

        24       explanation has been requested.

        25                  SENATOR JOHNSON:    Okay.  We're



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         1       talking about Print Number 550D and the

         2       Article VII language that goes with it.  And

         3       these are some of the things that are included

         4       in that bill of public protection and general

         5       government:  Division of Alcoholic Beverage

         6       Control, Department of Audit and Control,

         7       Division of the Budget, Capital Defenders

         8       Office, Department of Civil Service, Consumer

         9       Protection Board, State Commission of

        10       Correction, Division of Correctional Services,

        11       Crime Victims Board, Division of Criminal

        12       Justice Services.

        13                  And we denied several items that

        14       the Governor had in his bill.  We restored

        15       several other items.  Unless you want me to

        16       read them all, I won't.

        17                  Office of Prevention of Domestic

        18       Violence, State Board of Elections, Office of

        19       Employee Relations, Executive Chamber, Office

        20       of General Services, Homeland Security, State

        21       Inspector General, Interest on Lawyer Account,

        22       Temporary State Commission of Investigation,

        23       Judicial Commissions, Department of Law,

        24       Office of Lieutenant Governor, Division of

        25       Military and Naval Affairs, Division of



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         1       Parole, Division of Probation and Correctional

         2       Alternatives, Public Employee Relations Board,

         3       Division of State Police, Statewide Wireless

         4       Network, Office for Technology, Workers'

         5       Compensation Board, Local Government, Division

         6       of Veterans Affairs, and General State

         7       Charges.

         8                  They're all included in the Public

         9       Protection and General Government Budget.

        10       That is the budget bill plus the Article VII

        11       bill.

        12                  ACTING PRESIDENT WRIGHT:    Senator

        13       Oppenheimer.

        14                  SENATOR OPPENHEIMER:    Mr.

        15       President, I'd like to offer an amendment.  Is

        16       it at the desk, please?

        17                  ACTING PRESIDENT WRIGHT:    There's

        18       an amendment at the desk.

        19                  SENATOR OPPENHEIMER:    Excellent.

        20       Thank you.  I'd like to waive its reading, and

        21       I'd like to have the opportunity to explain

        22       it.

        23                  ACTING PRESIDENT WRIGHT:    The

        24       reading is waived.  You may be heard on the

        25       amendment.



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         1                  SENATOR OPPENHEIMER:    And I'm

         2       putting on my hat, which you've heard before,

         3       as League of Women Voters past president, to

         4       talk about the HAVA funds.

         5                  These are the funds, the federal

         6       funds that are available to us under the Help

         7       America Vote Act.  The amendment I'm going to

         8       make concerns the training and education of

         9       poll workers.  We're talking about the

        10       possibility of a $10 million addition to our

        11       Senate budget.  It is already in the Assembly

        12       budget.  And I think, if anything, it is

        13       probably of more significance to us in this

        14       house, after what we have been through in the

        15       last several months, than to the Assembly.

        16                  If poll workers had proper

        17       training, which we all know they have not had,

        18       we would not have run into the kind of mess we

        19       had -- quite frankly, it was a mess -- for

        20       three months this year.  Poll workers that

        21       don't know whether to send a potential voter

        22       to the left or right, by not even reading what

        23       is before them, it just makes no sense.

        24                  Our poll workers are in need of

        25       instruction.  We understand that.  We know



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         1       that.  We ought to be putting the $10 million

         2       that is in the Assembly budget into our

         3       budget, so that we can help our poll

         4       workers -- who want to do the right job, but

         5       they need some assistance.  And we should be

         6       putting in $10 million to help them out.

         7                  Thank you.

         8                  ACTING PRESIDENT WRIGHT:    Those

         9       Senators in agreement with the amendment

        10       please signify by raising your hands.

        11                  THE SECRETARY:    Those recorded in

        12       agreement are Senators Andrews, Breslin,

        13       Brown, Dilan, Gonzalez, Hassell-Thompson,

        14       Klein, L. Krueger, C. Kruger, Montgomery,

        15       Onorato, Oppenheimer, Paterson, Sabini,

        16       Sampson, Schneiderman, Serrano, A. Smith,

        17       M. Smith, Stachowski, Stavisky, Valesky and

        18       Senator Diaz.

        19                  ACTING PRESIDENT WRIGHT:    The

        20       amendment is not agreed to.

        21                  Senator Schneiderman.

        22                  SENATOR SCHNEIDERMAN:    Thank you,

        23       Mr. President.  If the sponsor would rise for

        24       a few brief questions.

        25                  ACTING PRESIDENT WRIGHT:    Senator



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         1       Johnson, will you yield to questions?

         2                  The Senator yields.

         3                  Senator Schneiderman.

         4                  SENATOR SCHNEIDERMAN:    Thank you.

         5                  Through you, Mr. President, will

         6       the sponsor tell us how much funding is in the

         7       Public Protection and General Government

         8       Budget bill for indigent legal services?

         9                  SENATOR JOHNSON:    $11 million.

        10                  SENATOR SCHNEIDERMAN:    Through

        11       you, Mr. President.

        12                  ACTING PRESIDENT WRIGHT:    Senator

        13       Schneiderman.

        14                  SENATOR SCHNEIDERMAN:    Is that

        15       listed as an item for indigent legal services,

        16       or is that in the municipal -- the funding for

        17       municipalities?

        18                  SENATOR JOHNSON:    It's not listed

        19       as a separate item.  It is not listed as a

        20       separate item.

        21                  SENATOR SCHNEIDERMAN:    Thank you.

        22                  And through you, Mr. President, if

        23       the sponsor would continue to yield for one

        24       more question.

        25                  ACTING PRESIDENT WRIGHT:    The



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         1       sponsor will continue to yield.

         2                  Senator Schneiderman.

         3                  SENATOR SCHNEIDERMAN:    And the

         4       Governor cut the budget for the capital

         5       defenders service down to one-third of what it

         6       had previously been.  How does the Senate's

         7       one-house budget bill deal with that cut?

         8                  SENATOR JOHNSON:    We have

         9       accepted the Governor's cut in that instance.

        10                  SENATOR SCHNEIDERMAN:    Through

        11       you, Mr. President, is there not a further cut

        12       made beyond what the Governor cut on -- for

        13       the capital defenders service.

        14                  SENATOR JOHNSON:    No, we have not

        15       changed it from the Governor's cut.

        16                  SENATOR SCHNEIDERMAN:    Thank you.

        17       Thank the sponsor and all of his -- our

        18       assistants and kibitzers here.

        19                  On the bill.

        20                  ACTING PRESIDENT WRIGHT:    Senator

        21       Schneiderman, on the bill.

        22                  SENATOR SCHNEIDERMAN:    I think

        23       that the failure to adequately fund legal

        24       services for indigents and the failure to fund

        25       the capital defenders service is a serious



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         1       flaw in this bill.  We talk about our efforts

         2       to provide equal rights under the law.  We had

         3       a vigorous debate last week on the death

         4       penalty.  Senator Volker is doing his best to

         5       see that that is reinstated.  We passed the

         6       death penalty bill in this house.

         7                  Under those circumstances, I think

         8       that it is unconscionable not to fully fund

         9       the capital defenders service.  I would note

        10       that the prosecutorial equivalent of the

        11       capital defenders service is still funded, in

        12       spite of the fact that we are not presently

        13       operating with a death penalty statute, and

        14       that some more funding for indigent legal

        15       services is required.

        16                  We're going through a process now

        17       where the people who are eligible for

        18       resentencing under the Rockefeller Drug Laws,

        19       which is a tiny number of people under the

        20       reform passed last year, do not all have

        21       lawyers.  And that the legal services and the

        22       defenders' offices that would represent them

        23       are so strapped for cash that they're unable

        24       to even meet this minimal addition.

        25                  I think it's time for New York



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         1       State to live up to its obligation.  Senator

         2       Bruno referred to us complying with the Court

         3       of Appeals where there are Court of Appeals

         4       decisions and United States Supreme Court

         5       decisions that talk about the right to

         6       counsel.  In this bill, we fail to provide for

         7       that right.

         8                  So, Mr. President, I will be voting

         9       no.  Thank you very much.

        10                  ACTING PRESIDENT WRIGHT:    Are

        11       there any other Senators wishing to be heard

        12       on the bill?

        13                  Debate is closed.

        14                  The Secretary will ring the bell.

        15                  The Secretary will read the last

        16       section.

        17                  THE SECRETARY:    Section 2.  This

        18       act shall take effect immediately.

        19                  ACTING PRESIDENT WRIGHT:    Call

        20       the roll.

        21                  (The Secretary called the roll.)

        22                  ACTING PRESIDENT WRIGHT:    Senator

        23       Breslin, to explain his vote.

        24                  SENATOR BRESLIN:    Thank you, Mr.

        25       President.



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         1                  I applaud Senator Bruno and Speaker

         2       Silver and the Governor -- my leader, David

         3       Paterson -- for a much more open process.

         4       However, I must say that we've been given

         5       thousands of pages over the last several days.

         6       And upon a review, there are many good things

         7       in this bill as well as the other budget

         8       bills.  But we still haven't addressed things

         9       like school aid runs, HAVA, CFE, HCRA.  But we

        10       have to have confidence that these things can

        11       be worked out in conference committees.

        12                  On balance, this particular bill

        13       that we have in front of us has many good

        14       things in it.  But as Senator Schneiderman

        15       pointed out, indigent legal services is a

        16       negative in the lack of funding for it.

        17                  However, on balance, because I have

        18       confidence in the process that we will have in

        19       the next few days, that we will be able to

        20       accomplish our goal of an on-time budget, I

        21       will vote for this bill as well as the other

        22       budget bills.  And therefore, I will be voting

        23       in the affirmative.

        24                  Thank you, Mr. President.

        25                  ACTING PRESIDENT WRIGHT:    Senator



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         1       Breslin will be recorded in the affirmative.

         2                  Senator Montgomery.

         3                  SENATOR MONTGOMERY:    Yes, Mr.

         4       President.  I would just like to comment on

         5       the budget bill that we're passing right now.

         6                  I am also appreciative of the fact

         7       that we have come this far this early in our

         8       process.  But I do want to point to a couple

         9       of areas where I think we are proposing an

        10       unfair proposal.

        11                  The first that I want to point out

        12       is that the Senate has added funds back into

        13       the budget to cover the cost of five

        14       facilities that were slated to be closed.

        15       We've put in $22.7 million to continue these

        16       facilities.  They are all upstate.  The only

        17       one for which there is no funding in this

        18       budget is for Fulton, which is the one that is

        19       in the Bronx.  It's downstate.

        20                  It's a work-release program.  And

        21       we need that facility, because if it's not

        22       going to be used by DOCS, then we need it to

        23       be used by the local criminal justice people,

        24       including perhaps the Bronx DA, the Kings

        25       County DA.  We can use that facility as an



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         1       alternative to incarceration.

         2                  So I'm really very disappointed

         3       that we didn't propose to return Fulton, as we

         4       have the other facilities, including the

         5       Watertown SHU.

         6                  In addition, lastly, let me just

         7       say that I see that the Senate has reduced the

         8       Neighborhood Work Project by $2 million.  This

         9       is a cut in a program that is specifically

        10       targeting New York City.  We desperately need

        11       more, not less, capacity to deal with people

        12       who are going to be returning from prison to

        13       the City of New York and other parts of the

        14       state, but especially New York City.  So I'm

        15       very, very concerned about that.

        16                  However, I will be voting for this

        17       bill because I think we're moving at least in

        18       the right direction.  Thank you.

        19                  ACTING PRESIDENT WRIGHT:    Senator

        20       Montgomery will be recorded in the

        21       affirmative.

        22                  Senator Krueger.

        23                  SENATOR LIZ KRUEGER:    Thank you.

        24       To explain my vote.

        25                  I'd also like to point out that in



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         1       addition to the cuts for indigent legal

         2       services, in this bill this year we've zeroed

         3       out civil legal services.  And there is no one

         4       in this state who does not need to have civil

         5       legal services available to constituents in

         6       their districts.  These funds keep getting cut

         7       every year, and this year we're zeroing them

         8       out.

         9                  And again, I would hope that all of

        10       my colleagues would think through what it

        11       means not to have your constituents who are

        12       poor but find themselves in need of legal

        13       assistance -- not on the criminal end, but on

        14       the civil end.  Issues of women attempting to

        15       get divorces who have been victims of domestic

        16       violence, families in Family Court or civil

        17       court proceedings, people facing eviction from

        18       their homes -- it's an endless number of

        19       functions that civil legal services provides

        20       to each and every one of our districts.

        21                  And despite the fact that there are

        22       things in this bill that I am comfortable with

        23       and am glad that we have restored that the

        24       Governor cut out, in addition to my

        25       colleagues' comments on indigent legal



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         1       services, we cannot go forward in this state

         2       without representation in the civil system for

         3       low-income New Yorkers.  So I'll also be

         4       voting no.

         5                  Thank you, Mr. President.

         6                  ACTING PRESIDENT WRIGHT:    Senator

         7       Krueger will be recorded in the negative.

         8                  The Secretary will announce the

         9       results.

        10                  THE SECRETARY:    Those recorded in

        11       the negative on Calendar Number 269 are

        12       Senators Andrews, Diaz, Gonzalez,

        13       Hassell-Thompson, L. Krueger, Onorato,

        14       Oppenheimer, Sabini, Schneiderman, Serrano,

        15       A. Smith, Stavisky.  Also Senator Montgomery.

        16                  Ayes, 42.  Nays, 13.

        17                  Those absent from voting on

        18       Calendar Number 269 are Senators Flanagan,

        19       Maziarz, and Spano.

        20                  ACTING PRESIDENT WRIGHT:    The

        21       bill is passed.

        22                  The Secretary will read.

        23                  THE SECRETARY:    Calendar Number

        24       270, Senate Budget Bill, Senate Print 551A, an

        25       act making appropriations for the support of



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         1       government, on LEGISLATURE AND JUDICIARY

         2       BUDGET.

         3                  SENATOR SCHNEIDERMAN:

         4       Explanation.

         5                  ACTING PRESIDENT WRIGHT:    Senator

         6       Johnson, an explanation has been requested.

         7                  SENATOR JOHNSON:    Mr. President,

         8       as far as the Legislature portion of the

         9       Governor's bill, we concur with that, with his

        10       recommendation.

        11                  With the judiciary request, we

        12       concur with that, with certain changes.  We

        13       reduce, without prejudice, Nonpersonal Service

        14       and Maintenance Undistributed by $30 million

        15       and General State Charges by $17.3 million.

        16                  We concur with the Executive's

        17       request to allow quarterly reimbursement to

        18       the Office of Court Administration from the

        19       Indigent Legal Service funds, up to

        20       $6.25 million per quarter.

        21                  ACTING PRESIDENT WRIGHT:    Senator

        22       Schneiderman.

        23                  SENATOR SCHNEIDERMAN:    Thank you,

        24       Mr. President.  If the sponsor would yield for

        25       a question.



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         1                  ACTING PRESIDENT WRIGHT:    Senator

         2       Johnson.

         3                  SENATOR SCHNEIDERMAN:    One

         4       question.

         5                  SENATOR JOHNSON:    Yes, sir.

         6                  SENATOR SCHNEIDERMAN:    What is

         7       the reduction in the allocation for the

         8       judiciary in this budget bill compared to last

         9       year's budget?

        10                  SENATOR JOHNSON:    Maintenance

        11       Undistributed is just a general reduction in

        12       the judicial budget.  And General State

        13       Charges refers to pension costs, reduction in

        14       the pension costs.

        15                  ACTING PRESIDENT WRIGHT:    Senator

        16       Schneiderman.

        17                  SENATOR SCHNEIDERMAN:    Through

        18       you, Mr. President.  And how much is the

        19       reduction in the judiciary budget?

        20                  SENATOR JOHNSON:    It would be 30

        21       plus 17.3.  $47.3 million.

        22                  SENATOR SCHNEIDERMAN:    47.3.

        23       Thank you.  Thank the sponsor for his

        24       response.

        25                  Thirty plus 17.3.



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         1                  On the bill, Mr. President.

         2                  ACTING PRESIDENT WRIGHT:    Senator

         3       Schneiderman, on the bill.

         4                  SENATOR SCHNEIDERMAN:    I mean, I

         5       think that -- I worked as a law clerk in a

         6       court when I first graduated from law school.

         7       I realize that there is some tension between

         8       some of the members of the Majority in this

         9       house and what they feel some judges -- with

        10       some judges who they feel disagree with them.

        11                  There is a system of checks and

        12       balances in our system of government that is

        13       precious to our republic.  And I do not think

        14       that the way to deal with disagreements with

        15       the judiciary is by cutting $47 million from

        16       the budget of an already overburdened,

        17       overworked branch of government where we have

        18       backlogs of cases in many parts of this state

        19       that are simply intolerable.

        20                  I think that, you know, we should

        21       be paying our judges what they deserve.  We

        22       should be funding the law clerks and

        23       assistants that they need.  We have problems

        24       now even getting access to transcripts in many

        25       cases.



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         1                  For us to be cutting the judiciary

         2       budget, whether it's an act of pique,

         3       decisions that some disagree with, or it's

         4       simply negligence, is wholly unacceptable.  I

         5       am going to vote no for this budget.

         6                  Thank you.

         7                  ACTING PRESIDENT WRIGHT:    Senator

         8       DeFrancisco.

         9                  SENATOR DeFRANCISCO:    Yes.  First

        10       of all, 17 million of the cut is due to a

        11       recomputation of the pension needs, the funds

        12       that are needed to fund the pension fund.

        13       They don't need that money to fund the

        14       pensions.  So that has nothing to do with any

        15       pique that anybody has about the judiciary.

        16                  Secondly, as one who practices

        17       before the judiciary and happens to be

        18       chairman of the Judiciary Committee, the other

        19       $30 million has nothing to do with the need

        20       for more judges and more people in the

        21       trenches to move cases, to get things moved in

        22       through the courts.

        23                  We all know that there's a

        24       bureaucracy entitled the Office of Court

        25       Administration.  And a majority of our



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         1       house -- I'm not saying whether I agree or

         2       disagree -- a majority of our side of the

         3       house believes that that part of the budget

         4       needs some trimming.  And that's what the

         5       purpose -- at least as the opening salvo of

         6       these budget negotiations.

         7                  ACTING PRESIDENT WRIGHT:    Is

         8       there any other Senator wishing to be heard on

         9       the bill?

        10                  Read the last section.

        11                  The Secretary will ring the bell.

        12                  THE SECRETARY:    Section 5.  This

        13       act shall take effect immediately.

        14                  ACTING PRESIDENT WRIGHT:    Call

        15       the roll.

        16                  (The Secretary called the roll.)

        17                  ACTING PRESIDENT WRIGHT:    The

        18       Secretary will announce the results.

        19                  THE SECRETARY:    Those recorded in

        20       the negative on Calendar Number 270 are

        21       Senators Andrews, Diaz, Hassell-Thompson,

        22       Klein, L. Krueger, Paterson, Sabini, Savino,

        23       Schneiderman, Serrano, A. Smith, Stavisky,

        24       Valesky.

        25                  Those Senators absent from voting



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         1       on Calendar Number 270:  Senator Gonzalez.

         2                  Ayes, 44.  Nays, 13.

         3                  ACTING PRESIDENT WRIGHT:    The

         4       bill is passed.

         5                  Senator Maltese.

         6                  SENATOR MALTESE:    Mr. President,

         7       pursuant to Rule 9, I was required to be at a

         8       meeting of the Election/HAVA standing

         9       committee.  And my attendance caused me to

        10       miss the votes on the following bills on the

        11       controversial calendar.  I cast my votes as

        12       follows:

        13                  Senate Bill Number 671, Calendar

        14       Number 116, aye.

        15                  Senate Bill Number 2440, Calendar

        16       Number 163, aye.

        17                  Thank you.

        18                  ACTING PRESIDENT WRIGHT:    The

        19       record will so reflect.

        20                  Senator Maziarz.

        21                  SENATOR MAZIARZ:    Thank you very

        22       much, Mr. President.

        23                  Pursuant to Rule 9, I was required

        24       to be at a meeting of the Help America Vote

        25       Act/Elections Conference Committee.  And my



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         1       attendance caused me to miss the votes on the

         2       following bills on the controversial calendar.

         3       And I cast my votes as follows:

         4                  Bill Number 550D, Calendar Number

         5       269, I vote in the affirmative.

         6                  Bill Number 671, Calendar Number

         7       116, I vote in the affirmative.

         8                  And Bill Number 2440, Calendar

         9       Number 163, I vote in the affirmative.

        10                  Thank you, Mr. President.

        11                  ACTING PRESIDENT WRIGHT:    The

        12       record will so reflect.

        13                  Senator Spano.

        14                  SENATOR SPANO:    Mr. President,

        15       pursuant to Rule 9 I was required to be at a

        16       public hearing of the Elections Conference

        17       Committee.  My absence caused me to miss the

        18       following votes on the following bills on the

        19       controversial calendar.  I cast my votes as

        20       follows:

        21                  Senate 550D, Calendar 269; Senate

        22       671, Calendar 116; Senate 2440, Calendar 163,

        23       aye on each of the aforementioned bills.

        24                  ACTING PRESIDENT WRIGHT:    The

        25       record will so reflect.



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         1                  I would request that we keep the

         2       conversations down.  Admittedly, it's

         3       procedural, but we need to have it for the

         4       records.

         5                  Senator Flanagan.

         6                  SENATOR FLANAGAN:    Thank you, Mr.

         7       President.  I would join my colleagues

         8       Maziarz, Spano and Maltese; I was at the same

         9       meeting.  I would like to be recorded as aye

        10       on the bills that they all mentioned.

        11                  ACTING PRESIDENT WRIGHT:    The

        12       record will so reflect.

        13                  Senator Dilan.

        14                  SENATOR DILAN:    Yes, Mr.

        15       President, I was also at the HAVA Conference

        16       Committee meeting.  And if I would have been

        17       present, I would be voting yes on 116 and 163.

        18                  ACTING PRESIDENT WRIGHT:    The

        19       record will so reflect.

        20                  We'd like the record to report that

        21       the correct vote on Calendar Number 270,

        22       Senate 551A was 44 ayes, 13 nay.  Thank you.

        23                  The Secretary will read.

        24                  THE SECRETARY:    Calendar Number

        25       271, Senate Budget Bill, Senate Print 555D, an



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         1       act making appropriations for the support of

         2       government, TRANSPORTATION, ECONOMIC

         3       DEVELOPMENT AND ENVIRONMENTAL CONSERVATION

         4       BUDGET.

         5                  SENATOR SCHNEIDERMAN:

         6       Explanation.

         7                  ACTING PRESIDENT WRIGHT:    An

         8       explanation has been requested.

         9                  SENATOR JOHNSON:    This bill is

        10       quite a compendious document.  But I would say

        11       that generally we're adding $30 million to the

        12       Governor's -- the money which the Governor

        13       proposed to spend.  Five million of that is

        14       just for various farm programs -- apples,

        15       bumblebees, migrant childcare, North Country

        16       agriculture, marine resources, et cetera,

        17       et cetera.

        18                  The Banking Department, small

        19       reductions there.  Empire State Development,

        20       we're proposing to eliminate the Governor's

        21       Operation SPUR and put a new Excell-New York

        22       in its place, with regional centers for

        23       innovation.

        24                  DEC, we -- at the moment we're

        25       holding up the $15 million brownfields cleanup



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         1       appropriation, subject to a memorandum of

         2       understanding between the Executive, the

         3       Majority Leader in the Senate, and the Speaker

         4       of the Assembly.

         5                  We're providing a lot of money to

         6       landfill closures, municipal recycling,

         7       waterfront revitalization.  We're adding money

         8       all along for those various programs which

         9       many of the members have asked for.  We're

        10       restoring the rural preservation companies,

        11       neighborhood preservation companies.

        12                  We concur with the Executive's

        13       recommendation for the MTA.  The Department of

        14       Motor Vehicles, we concur with the Governor's

        15       suggestion.  Office of Science and Technology,

        16       we concur with the Executive's request.  We

        17       recommend the following additions, about

        18       $12 million -- I could go on and on.  Empire

        19       Zone program, expanding out in accordance with

        20       the Governor's suggestions.  And so on and so

        21       on, et cetera.

        22                  ACTING PRESIDENT WRIGHT:    Senator

        23       Schneiderman.

        24                  SENATOR SCHNEIDERMAN:    Thank you,

        25       Mr. President.  I believe that there is an



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         1       amendment at the desk.  I would ask that the

         2       reading be waived and ask to be heard on the

         3       amendment.

         4                  ACTING PRESIDENT WRIGHT:    There

         5       is an amendment at the desk.  The reading is

         6       waived, and you may be heard on the amendment.

         7                  SENATOR SCHNEIDERMAN:    This is

         8       the first of two proposed amendments to this

         9       budget bill.  And this one attempts to keep

        10       the spirit of reform alive, to keep that

        11       little flame of reform flickering a bit.

        12                  When we, with much fanfare, went

        13       through the process of debating reform

        14       proposals earlier this year, many of us felt

        15       that the Senate came up short.  We went

        16       through this process where the Governor

        17       proclaimed that we were reforming the budget

        18       process by having open meetings of the five

        19       leaders, not the three men in a room.  We now

        20       are facing budget bills that were not produced

        21       through any sort of open process, that we have

        22       received really with less than a day's notice

        23       to certainly the members on this side of the

        24       aisle.

        25                  And I would respectfully suggest



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         1       that reform is not something which should be

         2       allowed to last through the election cycle and

         3       then, when the last votes are counted, fade

         4       into the background of the typical Albany

         5       system for doing business.

         6                  This amendment would revive the

         7       reform efforts by providing that the memoranda

         8       of understanding contemplated by this budget

         9       bill, which deal with bridge and highway

        10       programs, industrial access programs, and an

        11       aviation program, not be restricted to the

        12       participation of the Speaker, the Senate

        13       Majority Leader, and the Governor.

        14                  This amendment would provide that

        15       all five leaders, including the two minority

        16       leaders in the Senate and the Assembly, be

        17       allowed to participate in the drafting and

        18       approval of these MOUs.  These are -- this is

        19       the real budget process.  The distribution of

        20       these funds is very significant.  This is an

        21       area in which the minority leaders are

        22       excluded.  And I think that any claim from

        23       this house to have reformed the budget

        24       process, if you exclude the minority leaders

        25       from the MOU process, must ring hollow.



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         1                  So I urge everyone to keep true to

         2       the spirit of reform.  Let's get all five

         3       leaders in on the MOUs.  And I urge everyone

         4       to vote for this amendment.

         5                  Thank you, Mr. President.

         6                  ACTING PRESIDENT WRIGHT:    On the

         7       amendment, the Senators in agreement please

         8       signify by raising your hands.

         9                  Those recorded in agreement are?

        10                  THE SECRETARY:    Those recorded in

        11       agreement are Senators Andrews, Breslin,

        12       Brown, Diaz, Dilan, Hassell-Thompson, Klein,

        13       L. Krueger, C. Kruger, Montgomery, Onorato,

        14       Oppenheimer, Paterson, Sabini, Savino,

        15       Schneiderman, Serrano, A. Smith, M. Smith and

        16       Stavisky.  Also Senator Sampson.

        17                  ACTING PRESIDENT WRIGHT:    The

        18       amendment is not agreed to.

        19                  Senator Sabini.

        20                  SENATOR SABINI:    Mr. President, I

        21       believe there's an amendment at the desk from

        22       myself.  I ask that the reading of the

        23       amendment be waived and that I be heard on the

        24       amendment.

        25                  ACTING PRESIDENT WRIGHT:    There



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         1       is an amendment at the desk.  The reading is

         2       waived, and you may be heard on the amendment.

         3                  SENATOR SABINI:    My colleagues,

         4       very simply, this amendment would add

         5       $100 million to the operating budget of the

         6       Metropolitan Transportation Authority.

         7                  The MTA is facing an operating and

         8       capital program deficit and a looming crisis

         9       in keeping the system in just basic repair.

        10       Not including the service improvements that

        11       have been promised to the ridership, not

        12       including the capital improvements that have

        13       been promised to the ridership, but just

        14       keeping the system afloat.

        15                  There was a modest fare increase

        16       for certain classifications of riders that was

        17       implemented a week ago.  Today we saw tolls go

        18       up on MTA bridges and tunnels.  And what the

        19       amendment simply does is add a hundred million

        20       dollars in taxpayer funding to the MTA budget.

        21                  State government has been more and

        22       more of an absent player in the funding of the

        23       MTA.  That's how they got into trouble some

        24       years ago when the system started crumbling.

        25       And I fear that we're headed down the same



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         1       road.  We need to be full players in transit.

         2       It's an economic development question.  To get

         3       people to and from work, we have to have a

         4       transit system that works.

         5                  And I think it's time for us as a

         6       legislature to take a leadership role and

         7       concern ourselves with spending more on mass

         8       transit, and I offer that in the form of the

         9       amendment.

        10                  Thank you, Mr. President.

        11                  ACTING PRESIDENT WRIGHT:    On the

        12       amendment, those Senators in agreement please

        13       signify by raising your hands.

        14                  THE SECRETARY:    Those recorded in

        15       agreement are Senators Andrews, Breslin,

        16       Brown, Diaz, Dilan, Hassell-Thompson, Klein,

        17       L. Krueger, Montgomery, Oppenheimer, Paterson,

        18       Sabini, Sampson, Savino, Schneiderman,

        19       Serrano, A. Smith, M. Smith and Stavisky.

        20                  ACTING PRESIDENT WRIGHT:    The

        21       amendment is not agreed to.

        22                  Senator Schneiderman.

        23                  SENATOR SCHNEIDERMAN:    Thank you,

        24       Mr. President.  On the bill.

        25                  ACTING PRESIDENT WRIGHT:    Senator



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         1       Schneiderman, on the bill.

         2                  SENATOR SCHNEIDERMAN:    This

         3       legislation deals with transportation and

         4       economic development.  The bill that comes

         5       after it is a language bill that accompanies

         6       it as far as economic development and

         7       environmental conservation.

         8                  I think that the points just made

         9       by Senator Sabini are sufficient reason to

        10       vote against this bill.  We have, as a

        11       legislature, run the greatest mass transit

        12       system in the history of world into the

        13       ground.  And I know you think it may belong

        14       there, but I'm speaking in a less positive

        15       sense.

        16                  The MTA -- the MTA board has issued

        17       a capital proposal showing that there is an

        18       $11.3 billion gap in the portion of the plan

        19       that deals only with basic maintenance, that

        20       there's a $4.2 billion shortfall for proposed

        21       expansion projects like the Second Avenue

        22       subway.  Forget those projects for now.  Those

        23       projects are off the table.  A lot of people

        24       have taken credit for them in the past.

        25       They're not going to happen unless this



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         1       legislature steps up to the plate.

         2                  On top of that, the authority

         3       forecasts an operating deficit between

         4       $600 million and $700 million next year, and

         5       that's after the fare hike that just went into

         6       effect.

         7                  Now, the chairman of the MTA,

         8       Chairman Kalikow, has faced the reality, he

         9       has begun to raise the issue that we have

        10       underfunded the MTA.  This is a proposal for

        11       operating funds.  This is not a capital plan.

        12       The reason that we need to provide more

        13       operating funds, however, ladies and

        14       gentlemen, is that when we passed the last MTA

        15       capital plan, the State of New York -- anyone

        16       who voted for that capital plan voted to

        17       provide zero dollars to capital for our

        18       transit system.

        19                  As a result, the MTA issued

        20       $22 billion in bonds, which we are now paying

        21       for out of operating revenues.  That is like

        22       buying groceries with your mortgage money.

        23       That is a disgrace.  That is no way to finance

        24       a system.  We have to do better than that.

        25                  For us to come here in the face of



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         1       these deficits that we have created -- these

         2       weren't created by the straphangers.  People

         3       are riding the subways and buses more than

         4       ever.  This was created here in the State

         5       Legislature.  For us to come in and say we're

         6       going to provide a new tax in the MTA area

         7       that will generate $400 million, knowing that

         8       that is less than half of what the chairman of

         9       the MTA has requested, is a statement by

        10       everyone who votes for this bill to the subway

        11       and bus riders in New York City that we are

        12       respectfully requesting permission to raise

        13       your transit fares again.  That's what you're

        14       doing if you don't provide more funding here.

        15                  I sincerely hope when we get to

        16       conference committees this issue is addressed.

        17       We cannot allow the system to go back into the

        18       state it was in in the 1970s.  That will

        19       happen.  It will be a worse system.  Ridership

        20       will go down, revenues will plummet further,

        21       and we'll be back into that spiral, that

        22       destructive spiral that costs every employer

        23       in the City of New York, every employer in the

        24       suburbs of New York who rely on the Long

        25       Island Railroad and Metro North.  It's a tax



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         1       on every employer, it's a tax on every worker.

         2       It is the worst possible public policy.

         3                  So I'm going to be voting against

         4       the bill.  And that's reason enough, but

         5       there's an additional reason.  This

         6       legislation also deals with the Empire Zone

         7       program.  If there has ever been a program

         8       that had drifted away from its intended roots,

         9       that has drifted away from its purpose and

        10       become a generalized subsidy for

        11       well-connected businesspeople, this is it.

        12                  The Empire Zone program is in need

        13       of reform.  This legislation would extend the

        14       program for 15 years, expand it with no reform

        15       to guarantee that the jobs promised are

        16       created, to guarantee that -- Empire Zones

        17       were a great idea.  They were a great

        18       conservative idea.  They were developed by

        19       conservative think tanks to provide tax breaks

        20       in poor inner-city communities to encourage

        21       businesses to locate there.

        22                  Under the State of New York's

        23       program, we have lost all sense of the purpose

        24       of Empire Zones.  They're now designated in

        25       empty fields.  They are designated in areas



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         1       that aren't even geographically contiguous

         2       with the towns that they're supposed to serve.

         3       And we know that they are sometimes being

         4       designated in areas where there are people who

         5       simply want to do development there and want

         6       the tax breaks.  That is not a valid economic

         7       development program.

         8                  We could save $75 million every

         9       year.  We could take $75 million and provide

        10       it for buses and subways, we could provide it

        11       for schools, if we would reform this program

        12       that was documented in the Senate Democrats'

        13       alternative budget released a year ago this

        14       month.

        15                  So let's not simply pass on more

        16       programs and expand them when we know they

        17       don't work and we know that they don't create

        18       jobs and we know that they're handled in an

        19       unfair way that discriminates against

        20       communities across this state.

        21                  I'm going to vote no for both the

        22       transportation and the economic development

        23       portions of this bill, and I urge everyone to

        24       do the same.  And when we get to conference

        25       committees, if we do not address this problem



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         1       of transit funding, then I think everyone here

         2       should feel obligated to communicate to their

         3       constituents that they are graciously passing

         4       on a fare hike to the MTA riders.

         5                  ACTING PRESIDENT WRIGHT:    Senator

         6       Sabini, on the bill.

         7                  SENATOR SABINI:    Thank you, Mr.

         8       President.  I just wanted to highlight another

         9       problem I have with this bill.

        10                  While I was delighted to see that

        11       the Northeast Queens Nature and Historic

        12       Preserve Commission in Senator Padavan's

        13       district was put back in the budget, and I

        14       think it's a worthwhile endeavor, it made me

        15       look at the rest of the wetlands issue

        16       regarding spending in this budget.

        17                  There's really two ways that we

        18       could have protected our wetlands.  One is to

        19       pass S2048, which is the Clean Water

        20       Protection and Flood Preservation Act, which

        21       is also in the Assembly budget resolution, or

        22       accept the Governor's proposal in Article VII.

        23       Both of them would go a long way to improve

        24       our wetlands.  They do so in different ways,

        25       but both provide for the fix of the 2001



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         1       legislation, which took protected wetlands out

         2       of the federal jurisdiction that were smaller

         3       than 12.4 acres.

         4                  In the Northeast, Connecticut,

         5       Vermont, Massachusetts, our surrounding states

         6       that border us, we have the weakest wetlands

         7       laws of any of those states.  The irony is

         8       that the water coming through Connecticut that

         9       goes into our drinking water system in

        10       New York City is, by Connecticut law, cleaner

        11       than what it has to be when it passes through

        12       New York State into our water system.  That's

        13       really a shame that we rely on other states to

        14       be more protective of our own water than we

        15       are.

        16                  New York has really passed off on

        17       protecting wetlands.  And now we have an

        18       opportunity yet.  In this budget proposal,

        19       Article VII is denied.  A million-dollar

        20       appropriation for staff for DEC wetland

        21       protection is denied.  And I think it's a step

        22       in the wrong direction when it comes to our

        23       environment.

        24                  So in addition to the problems I

        25       have with mass transit funding in this budget



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         1       bill, I also think that we are being sort of

         2       dismissive of the need to protect our

         3       wetlands, and I'll be voting in the negative.

         4                  Thank you.

         5                  ACTING PRESIDENT WRIGHT:    Senator

         6       Krueger.

         7                  SENATOR LIZ KRUEGER:    Thank you.

         8                  If the sponsor would yield, please.

         9                  ACTING PRESIDENT WRIGHT:    Will

        10       the sponsor yield to a question?  Senator

        11       Johnson?

        12                  SENATOR JOHNSON:    Yes, Mr.

        13       President.

        14                  ACTING PRESIDENT WRIGHT:    Senator

        15       Krueger.

        16                  SENATOR LIZ KRUEGER:    Thank you,

        17       Mr. President.

        18                  This bill is filled with new monies

        19       as well as concerns that my colleagues have

        20       raised about the monies that aren't there for

        21       public transportation, the monies that aren't

        22       there for the environment, including not

        23       putting in $15 million in appropriation for

        24       brownfields grants, which are desperately

        25       needed to move forward on our commitment to



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         1       brownfields.

         2                  But I'd like to ask the sponsor,

         3       because I'm a tad confused, this bill has

         4       $100 million for something called

         5       Excell-New York.  What will that money be for,

         6       Senator?

         7                  SENATOR JOHNSON:    Well, that

         8       is -- we have a program like that already, and

         9       we're going to expand that program, called

        10       Regional Centers for Innovation, mostly

        11       affiliated with colleges and not-for-profits,

        12       in place of the SPUR program, which the

        13       Governor has proposed.

        14                  SENATOR LIZ KRUEGER:    And if the

        15       sponsor would continue to yield, please, Mr.

        16       President.

        17                  ACTING PRESIDENT WRIGHT:    The

        18       sponsor continues to yield.

        19                  Senator Krueger.

        20                  SENATOR LIZ KRUEGER:    Thank you.

        21       And I believe you're referencing, Senator

        22       Johnson, that it's like the Gen*NY*sis

        23       program.  Is that what you meant?

        24                  SENATOR JOHNSON:    I'm sorry, I

        25       didn't understand what you just said.



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         1                  SENATOR LIZ KRUEGER:    Is the

         2       Excell-New York program like -- when you said

         3       it's like another program we have, is that the

         4       Gen*NY*sis Centers for Excellence program?  Or

         5       you meant another program?

         6                  SENATOR JOHNSON:    Well, we have

         7       an Excell program already.  And this is going

         8       to enlarge the regional centers for innovation

         9       we already have.

        10                  SENATOR LIZ KRUEGER:    Through

        11       you, Mr. President, if the sponsor would

        12       continue to yield.

        13                  ACTING PRESIDENT WRIGHT:    You're

        14       recognized, Senator Krueger.  Continue.

        15                  SENATOR LIZ KRUEGER:    Thank you.

        16                  So, Senator Johnson, how much do we

        17       already have in the Excell program?  This bill

        18       seems to add a hundred million.  How much is

        19       already there?

        20                  SENATOR JOHNSON:    All right.  We

        21       have a program now in New York State, NYSTAR,

        22       technical and whatever -- technology and

        23       research, that's correct.  That's the -- we

        24       use the appellation all the time, New York

        25       State Center for Technology and Research.



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         1                  We're really incorporating that

         2       into this new regional Excell-New York

         3       program.  And they're going to have one

         4       not-for-profit in each of the six regions of

         5       the state.  And their job is to develop and

         6       execute regional economic development

         7       strategies for each center's respective

         8       region.  They'll have state funding combined

         9       with private sector and federal funds, and

        10       they'll provide seed money and capital for

        11       innovative businesses in all economic sectors,

        12       including major industries and high

        13       technology, manufacturing, agricultural

        14       services and tourism.

        15                  And they will work closely with

        16       regional economic development partners from

        17       academic and research institutions.  So we're

        18       really getting some high-powered economic

        19       development by working with the existing

        20       institutions in those areas of the state.

        21                  SENATOR LIZ KRUEGER:    Mr.

        22       President, if through you the sponsor would

        23       continue to yield.

        24                  ACTING PRESIDENT WRIGHT:    Will

        25       the sponsor continue to yield?



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         1                  SENATOR JOHNSON:    Yes.

         2                  ACTING PRESIDENT WRIGHT:    Senator

         3       Krueger.

         4                  SENATOR LIZ KRUEGER:    Thank you.

         5                  So do we also continue to fund

         6       NYSTAR?  And how much money are we continuing

         7       to put into that program?  Where would I find

         8       that in the budget?

         9                  SENATOR JOHNSON:    The existing

        10       NYSTAR programs will be continued.  And this

        11       will be a supplement to NYSTAR, which already

        12       is there.

        13                  SENATOR LIZ KRUEGER:    No, how

        14       much money do we have in that program that's

        15       already there that will continue?

        16                  SENATOR JOHNSON:    Let me see.

        17       NYSTAR has received money over the past

        18       several years up to the sum of $200 million.

        19       And they only spent about $40 million of that.

        20       So that money is going to be available for

        21       this program.

        22                  SENATOR LIZ KRUEGER:    Through

        23       you, Mr. President.

        24                  ACTING PRESIDENT WRIGHT:    You're

        25       recognized, Senator Krueger.



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         1                  SENATOR LIZ KRUEGER:    Thank you,

         2       Senator.

         3                  So we're not continuing new funding

         4       to NYSTAR, but we've put $200 million in, of

         5       which $40 million has been spent?  Would that

         6       be accurate on my part?

         7                  SENATOR JOHNSON:    Senator, I'm

         8       sorry, we don't have all the papers right

         9       here.  But the Governor has proposed adding

        10       $200 million to NYSTAR.  They already have

        11       $200 million.  That money is going to go --

        12       we're not cutting the Governor's money, we're

        13       just redirecting it from the operation called

        14       SPUR to what we call Excell-New York.

        15                  SENATOR LIZ KRUEGER:    Thank you.

        16                  Mr. President, if through you the

        17       sponsor would continue to yield.

        18                  ACTING PRESIDENT WRIGHT:    He does

        19       yield.

        20                  SENATOR LIZ KRUEGER:    Thank you.

        21                  My understanding was that we were

        22       taking the Governor's $100 million SPUR

        23       proposal and turning that into the

        24       Excell-New York.  Are you saying that NYSTAR

        25       is still remaining in the Governor's budget as



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         1       an additional 200 million and that it is not

         2       the proposal of the Senate to change that?  So

         3       that would be on top of anything we're talking

         4       about in changing SPUR proposed new program to

         5       Excell program?

         6                  SENATOR JOHNSON:    As I mentioned

         7       in my original statement, that we're not going

         8       on with the Governor's SPUR program, but we

         9       are using the money that he put in that

        10       program.

        11                  SENATOR LIZ KRUEGER:    No, I think

        12       we agree on that.  My concern is are we

        13       talking about also having an additional 200 --

        14                  SENATOR JOHNSON:    No, it's an

        15       additional 100 million.  Plus the original

        16       200 million, of which they spent 40, which I

        17       guess allowed 160.

        18                  SENATOR LIZ KRUEGER:    So that's

        19       160.  So that's from previous years that's

        20       still available for --

        21                  SENATOR JOHNSON:    Right.

        22                  SENATOR LIZ KRUEGER:    -- NYSTAR.

        23       But you are saying we are not putting

        24       additional money into -- add into the NYSTAR

        25       pot.



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         1                  SENATOR JOHNSON:    Well, the

         2       Governor is doing that, and we are too.  They

         3       haven't used it very effectively.

         4                  And when we get this new structure

         5       called Excell-New York, they will use that

         6       money effectively for regional innovation.

         7       Cooperating with business and the academy,

         8       et cetera, et cetera.

         9                  SENATOR LIZ KRUEGER:    Mr.

        10       President, through you, if the sponsor would

        11       continue to yield.

        12                  ACTING PRESIDENT WRIGHT:    You're

        13       recognized, Senator Krueger.  Continue.

        14                  SENATOR LIZ KRUEGER:    Thank you.

        15                  So just so I get this right,

        16       there's also still money in the proposed

        17       budget to continue NYSTAR with additional tax

        18       revenue in the 2005-2006 fiscal year.

        19                  SENATOR JOHNSON:    That's correct.

        20                  SENATOR LIZ KRUEGER:    And that's

        21       an additional 200 million.

        22                  SENATOR JOHNSON:    It's an

        23       additional 100 million.

        24                  SENATOR LIZ KRUEGER:    Additional

        25       100 million, thank you, on top of that.



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         1                  SENATOR JOHNSON:    We're learning

         2       as we go along.

         3                  SENATOR LIZ KRUEGER:    Mr.

         4       President, if the sponsor would continue to

         5       yield.

         6                  ACTING PRESIDENT WRIGHT:    The

         7       sponsor continues to yield.

         8                  SENATOR JOHNSON:    Yes, Mr.

         9       President.

        10                  ACTING PRESIDENT WRIGHT:    You may

        11       proceed.

        12                  SENATOR LIZ KRUEGER:    Thank you.

        13                  We also have in this proposed

        14       budget $175 million for the Gen*NY*sis program

        15       in addition, and $175 million for the RESTORE

        16       program in addition.  Is that your

        17       understanding?

        18                  SENATOR JOHNSON:    We have that in

        19       the capital funds part of the budget, yes.

        20                  SENATOR LIZ KRUEGER:    Okay,

        21       within this budget.

        22                  And through you, Mr. President, if

        23       the sponsor would continue to yield.

        24                  ACTING PRESIDENT WRIGHT:    The

        25       sponsor will continue to yield.



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         1                  Senator Krueger.

         2                  SENATOR JOHNSON:    Yes, Mr.

         3       President.

         4                  SENATOR LIZ KRUEGER:    Thank you.

         5                  And we also have, I guess, in this

         6       bill as well an issuance of $250 million in

         7       bonds to establish the New York State

         8       Technology and Development Program, to be

         9       administered by the New York State Urban

        10       Development Corporation.  And that's new money

        11       and a new program; is that your understanding,

        12       Senator?

        13                  SENATOR JOHNSON:    That's the

        14       Governor's proposal, as you know.  And we're

        15       not making any changes to that.

        16                  SENATOR LIZ KRUEGER:    So we're

        17       supporting that in this bill.

        18                  SENATOR JOHNSON:    Right.

        19                  SENATOR LIZ KRUEGER:    Yes, okay.

        20       Thank you.

        21                  Mr. President, if through you the

        22       sponsor would continue to yield.

        23                  ACTING PRESIDENT WRIGHT:

        24       Continue to be recognized, Senator Krueger.

        25                  SENATOR LIZ KRUEGER:    When I also



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         1       looked in the revenue package, we're also

         2       giving tax credits for companies who

         3       participate and invest in Excell, and that's

         4       to the tune of about $60 million.  And again,

         5       it talks about high technology, as does the

         6       New York State Technology and Development

         7       Program, as does some of the language around

         8       the Excell program, as does some of the

         9       language around NYSTAR and Gen*NY*sis and

        10       RESTORE.

        11                  Why are we funding -- why is some

        12       of the Excell money going to historic parks

        13       and trails?  How does that correlate to high

        14       technology/economic development?  It's about

        15       $3 million in this bill.

        16                  SENATOR JOHNSON:    Well, of

        17       course, anything which enhances the economy of

        18       the state would be subject -- a possible

        19       subject for Excell-New York.  And tourism is a

        20       big industry in parts of our state.  And they

        21       feel that will help augment the income from

        22       the tourist industry.

        23                  SENATOR LIZ KRUEGER:    Mr.

        24       President, if, through you, the sponsor would

        25       continue to yield.



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         1                  ACTING PRESIDENT WRIGHT:    Senator

         2       Krueger, continue.

         3                  SENATOR LIZ KRUEGER:    But might

         4       we not agree that -- historic trails are good

         5       for tourism, I won't disagree.  But what do

         6       they have to do with the high technology and

         7       biotech model of funding?

         8                  SENATOR JOHNSON:    Of course, you

         9       know -- I guess you didn't really understand

        10       the broad impact of Excell-New York.  It's not

        11       just high tech.  Everybody is into high tech.

        12       But there's other aspects of this which would

        13       be beneficial to the economy.

        14                  And I just mentioned here some of

        15       the things that they would get involved in

        16       also.  It says, besides, innovative businesses

        17       in all economic sectors, including the major

        18       industries and high tech, manufacturing,

        19       agricultural services and tourism.

        20                  It's not just high tech.  Everybody

        21       is on a high-tech kick, but we have other

        22       virtues in this state to be exploited and

        23       developed into economic engines.

        24                  SENATOR LIZ KRUEGER:    Thank you,

        25       Mr. President.  On the bill.



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         1                  ACTING PRESIDENT WRIGHT:    Senator

         2       Krueger, on the bill.

         3                  SENATOR LIZ KRUEGER:    Well,

         4       clearly I am confused about how we use our

         5       money for economic development.  I've learned

         6       today we can't use the money for mass transit,

         7       which we know creates jobs and continues and

         8       assures people can get to jobs and assures

         9       that businesses want to locate in our state

        10       because there's an ability of people to get to

        11       their jobs and get to whatever it is they're

        12       selling.

        13                  And we can't support environmental

        14       protection at the level that we have in the

        15       past.  We don't have the money for wetlands,

        16       we don't have the money for brownfields.

        17       We're reducing our commitment to environmental

        18       protection by expanding what DEC is supposed

        19       to do with the same dollars.

        20                  And yet I look through the budget

        21       this year and I see enormous pots of money

        22       that, frankly, when I do my homework before I

        23       get to this chamber and when I get to this

        24       chamber, it is a mystery to me how we're

        25       spending the money and whether we're in fact



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         1       generating economic development for the State

         2       of New York through the money.

         3                  We have in this bill -- and the

         4       associated language bills that we'll deal with

         5       at another time -- we've got another

         6       $175 million for Gen*NY*sis.  And it's not at

         7       all clear how that differs from Excell, how

         8       that differs from New York State Technology

         9       and Development, how that differs from NYSTAR,

        10       how it differs from RESTORE.

        11                  We have $175 million more for the

        12       RESTORE program.  We've got $100 million for

        13       the Excell-New York program, a new program

        14       that will apparently run better than the

        15       NYSTAR program, but we'll throw another

        16       hundred million into NYSTAR, which we say

        17       doesn't work well, but we'll throw another

        18       $100 million in there too.  And we've got

        19       $160 million apparently left unspent in that

        20       program.

        21                  Maybe it's good that it's unspent

        22       if it doesn't work very well.  But I argue

        23       maybe we should pull the money out if we

        24       didn't spend it and it doesn't work very well.

        25       Maybe we shouldn't put another $100 million in



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         1       if it doesn't work very well.

         2                  I don't understand the difference

         3       between these different models and the new

         4       New York State Technology and Development

         5       Program, another $250 million in bonds.  When

         6       I've gone to hearings and asked the agencies

         7       to explain to me how they've spent that money,

         8       what the process is, what we've gotten for the

         9       money, I get very little information.

        10                  And yet this year, supposedly in a

        11       year where yet again we don't have enough

        12       money for our schools, we don't have enough

        13       money for public transportation, we don't have

        14       enough money for health care, we've got, just

        15       in the discussion today, all right,

        16       $350 million for Gen*NY*sis and RESTORE, a new

        17       $100 million for Excell.  That's $450 million.

        18       Another $60 million in tax credits to go along

        19       with Excell.  That's $510 million.  A new New

        20       York State Technology and Development.  That's

        21       another -- we're up to $800 million.  The

        22       continuing NYSTAR, another hundred million.

        23       $900 million plus the $160 million that was

        24       left, $1.6 billion.

        25                  And I didn't even get into the



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         1       multimodal programs, which also seems to be

         2       related programs that just sort of go out

         3       there when someone chooses.

         4                  You can't convince me we should

         5       pass a budget with over a billion dollars in

         6       it, in theory all for parallel or the same

         7       programs, with no review of what we've gotten

         8       for our dollars before, with an admission that

         9       some of them don't work so well so we're

        10       creating new ones.

        11                  I find it outrageous that the

        12       definition of the economic development budget

        13       in this state is to just create, year after

        14       year, new slush founds while we continue to

        15       fund the old ones and no one asks the

        16       questions.  Senator Schneiderman earlier

        17       talked about the Empire Zones, another example

        18       of where we know we went wrong, we refuse to

        19       revisit the question and fix the problems.

        20                  I went to the hearings to discuss

        21       the Empire Zone, and when somebody asked the

        22       reasonable question, "Why don't we make the

        23       entire State of New York an Empire Zone?" --

        24       two years ago I laughed at that question.  Now

        25       I think it's a reasonable proposal.



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         1                  We're starting border wars between

         2       our towns over these models of who can get the

         3       biggest tax exemption from moving their

         4       business.  It's like rearranging deck chairs

         5       on the Titanic, so why do we even bother.

         6                  Again, I think this state needs to

         7       reevaluate every dollar we put into economic

         8       development.  We are not doing justice to the

         9       people's tax dollars.  We are certainly not

        10       using our money effectively to expand our

        11       economy.  Because to expand our economy, we

        12       would have good public transportation, we

        13       would have good quality education, and we

        14       would have affordable housing.  It's not brain

        15       surgery.  And yet none of this money goes

        16       towards any of that.

        17                  So I'm very disturbed about this

        18       budget bill.  I hope others may also be.  And

        19       I'll be voting no.

        20                  Thank you, Mr. President.

        21                  ACTING PRESIDENT WRIGHT:    Senator

        22       Montgomery.

        23                  SENATOR MONTGOMERY:    Yes, through

        24       you, Mr. President, would the sponsor yield

        25       for a question, inquiry.



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         1                  ACTING PRESIDENT WRIGHT:    Senator

         2       Johnson, will you yield to a question?

         3                  SENATOR JOHNSON:    Certainly.

         4                  ACTING PRESIDENT WRIGHT:    Senator

         5       Johnson will.

         6                  Senator Montgomery.

         7                  SENATOR MONTGOMERY:    Thank you,

         8       Mr. President.

         9                  Senator Johnson, I'm trying to find

        10       out exactly what is the allocation in this

        11       budget for the administration of the Empire

        12       Zones.

        13                  ACTING PRESIDENT WRIGHT:    Will

        14       you please take the conversations outside.

        15       Thank you.

        16                  SENATOR JOHNSON:    We think it's

        17       possibly $2.3 million.

        18                  SENATOR MONTGOMERY:    And I'm

        19       looking in the budget, and I find that there's

        20       reappropriations from last year.  Does that --

        21       is that 2.3 million additional funds, or are

        22       we --

        23                  SENATOR JOHNSON:    It's just a

        24       restoration which the Governor has cut in his

        25       budget.  And we restored what he cut out.



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         1                  SENATOR MONTGOMERY:    So there's

         2       no new additional funding for administration.

         3                  SENATOR JOHNSON:    That's correct.

         4                  SENATOR MONTGOMERY:    Through you,

         5       Mr. President, just to ask another related

         6       question, if the Senator would yield.

         7                  SENATOR JOHNSON:    Yes, Mr.

         8       President.

         9                  SENATOR MONTGOMERY:    You have --

        10       I see that there's language in the budget that

        11       speaks to new Empire Zone programs.

        12                  SENATOR JOHNSON:    That's true.

        13                  SENATOR MONTGOMERY:    And one of

        14       them is referred to as a Flex College

        15       Opportunity Empire Zone.  Is that supposed to

        16       be "acreage"?  Flex Acreage College

        17       Opportunity Empire Zone.  And another one is

        18       Flex Acreage Agri-Business Opportunity Empire

        19       Zone.

        20                  And my question to you is, what

        21       exactly does that mean?  Where will these

        22       Empire Zones be created?

        23                  ACTING PRESIDENT WRIGHT:    Senator

        24       Montgomery.

        25                  SENATOR MONTGOMERY:    Oh, I didn't



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         1       get an answer.  Did you answer me?  I didn't

         2       hear you.

         3                  SENATOR JOHNSON:    You asked me

         4       multiple questions.  I wasn't sure just what

         5       your question was that you wanted answered.

         6                  SENATOR MONTGOMERY:    Oh, I'm

         7       sorry.

         8                  I was trying to find out exactly

         9       what this Flex Acreage College Opportunity

        10       Empire Zone is, and what exactly is the Flex

        11       Acreage Agri-Business Opportunity Zone.

        12                  SENATOR JOHNSON:    There are

        13       really two programs side by side.  One is for

        14       colleges.  And that's a competitive situation

        15       between colleges who want to start Empire

        16       Zones surrounding their campus no more than

        17       one square mile.

        18                  And also for agri-business, if they

        19       want to set one up, there will be a

        20       competition to get the money and the revenues

        21       for that zone, the agricultural zone or the

        22       zone around colleges.

        23                  And also one mile -- they could

        24       expand it each year by another square mile if

        25       they get that busy and prosperous.  But that's



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         1       what's in the bill.

         2                  SENATOR MONTGOMERY:    Oh.

         3                  ACTING PRESIDENT WRIGHT:    Senator

         4       Montgomery.

         5                  SENATOR MONTGOMERY:    Mr.

         6       President, through you, if Senator Johnson

         7       would continue to yield.

         8                  SENATOR JOHNSON:    Yes, Mr.

         9       President.

        10                  ACTING PRESIDENT WRIGHT:    Senator

        11       Johnson continues to yield.

        12                  Senator Montgomery.

        13                  SENATOR MONTGOMERY:    Based on the

        14       funding that you have indicated for the

        15       administration of the Empire Zones in this

        16       budget, Senator Johnson, and we intend to

        17       expand the Empire Zone program, as indicated

        18       here, it seems that in 2005 we anticipate four

        19       additional Empire Zones.

        20                  Are we anticipating expanding the

        21       administrative cost of those, or are we just

        22       now spreading the cost, the same money, over a

        23       larger number of zones?

        24                  SENATOR JOHNSON:    Senator, there

        25       is a competitive process of applying for and



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         1       lobbying for and finally achieving an Empire

         2       Zone.  They won't run out of money before the

         3       end of the year because the process takes so

         4       long.  We have enough money to do whoever gets

         5       approved this year.  We'll worry about next

         6       year's appropriation next year.

         7                  SENATOR MONTGOMERY:    All right.

         8       Thank you, Senator.

         9                  Mr. President, briefly on the bill.

        10                  ACTING PRESIDENT WRIGHT:    Senator

        11       Montgomery, on the bill.

        12                  SENATOR MONTGOMERY:    I raise this

        13       issue in particular because I see that we have

        14       four new zones.  And based on this new -- this

        15       new programs proposal, the flex acreage and

        16       the flex acreage, I'm not sure how or whether

        17       or not we'll have any new Empire Zones in

        18       New York City -- certainly in Brooklyn, where

        19       we need them.

        20                  Now, I'm -- I understand, I want to

        21       look at the whole state as my responsibility,

        22       so to speak.  And I'm happy when we do

        23       whatever is required in any part of the state.

        24       But if we're just going to expand the number

        25       of Empire Zones -- and they're extremely



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         1       important, but they don't work unless there is

         2       an administrative aspect to them -- then we're

         3       just throwing good money after bad.

         4                  And these are really very, very

         5       important entities as it relates to local

         6       economic development.  So I'm very much in

         7       favor of Empire Zones, but I do not -- I would

         8       not like to see us use it as a little

         9       patronage operation rather than a real and

        10       truly effective economic development program.

        11                  So I'm concerned we're going to

        12       have four new ones this year.  And you talk

        13       about competitive bidding.  That means the new

        14       zone that is going to be developed in Buffalo

        15       is going to be competing with my zone in

        16       Brooklyn and -- my two zones in Brooklyn.

        17       Both of those zones are very important, but

        18       now there is a possibility that their

        19       administration will be weakened because they

        20       now have to compete with Buffalo or some other

        21       part of the state where there is a Republican

        22       Senator who has more clout than I do, more

        23       seniority than I do.

        24                  So that's a problem.  That is a

        25       problem.  And we should not be putting our



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         1       Empire Zones up to compete against each other

         2       in that way.  So I'm very concerned about

         3       this, Mr. President.

         4                  And I think that we should find a

         5       better way.  Use some of the other new funds,

         6       the slush funds that keep being proposed for

         7       this, that and the other, and target those

         8       funds specifically to administer our economic

         9       development Empire Zones.  It's a good

        10       program, even though it needs reforming.  I

        11       certainly am sorry we didn't reform it.  But

        12       if it's going to continue, it should be done

        13       in a way that strengthens it and that does not

        14       weaken the administration.

        15                  Thank you.

        16                  ACTING PRESIDENT WRIGHT:    Is

        17       there any other Senator wishing to be heard on

        18       the bill?

        19                  That will conclude debate.

        20                  The Secretary will ring the bell.

        21                  The Secretary will read the last

        22       section.

        23                  THE SECRETARY:    Section 2.  This

        24       act shall take effect immediately.

        25                  ACTING PRESIDENT WRIGHT:    Call



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         1       the roll.

         2                  (The Secretary called the roll.)

         3                  ACTING PRESIDENT WRIGHT:    Senator

         4       Marcellino, to explain his vote.

         5                  SENATOR MARCELLINO:    Mr.

         6       President, to explain my vote.

         7                  We've heard reference to a number

         8       of things today relative to the environmental

         9       section, about cutting $15 million out.  We

        10       did not appropriate that $15 million because

        11       there is $30 million in the program that has

        12       been unspent -- for the simple reason that we

        13       can't get the Assembly to the table to agree

        14       on an MOU as to how to spend it.  So to put

        15       more money into the program when there's

        16       $30 million sitting there is kind of silly.

        17                  The comments about our water not

        18       being as clean as it should be because of the

        19       wetlands, that we struck out that section of

        20       the Governor's proposal, is absolute nonsense.

        21       The water in the state of New York is as clear

        22       as can be and as clean as can be.

        23                  And the wetlands proposal will be

        24       taken care of by legislative action the way it

        25       should be.  And I'm carrying the bill, and



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         1       hopefully -- and we have an Assembly sponsor,

         2       and hopefully that bill will be passed before

         3       the end of the session and everything will be

         4       fine.

         5                  This is the -- this is silly to

         6       make these comments, because the other side

         7       full well knows the idea of the relativity of

         8       the money.

         9                  ACTING PRESIDENT WRIGHT:    Senator

        10       Krueger, to explain her vote.

        11                  SENATOR LIZ KRUEGER:    Thank you,

        12       to explain my vote.

        13                  As I mentioned, I'll be voting no.

        14       But I appreciated my colleague's comments

        15       about why you put more money into a program if

        16       you don't think it's working and it's not

        17       getting spent.

        18                  So again, to vote no, why are we

        19       putting more money into the NYSTAR program,

        20       which apparently we admit doesn't work and has

        21       a lot of money sitting there already?

        22                  So I would concur with Senator

        23       Marcellino's point about why he votes for the

        24       bill and why I vote against it.  Same issue,

        25       different outcome.



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         1                  Thank you.

         2                  ACTING PRESIDENT WRIGHT:

         3       Announce the results.

         4                  THE SECRETARY:    Those recorded in

         5       the negative on Calendar Number 271 are

         6       Senators Andrews, Diaz, Dilan,

         7       Hassell-Thompson, Klein, L. Krueger,

         8       Montgomery, Onorato, Padavan, Paterson,

         9       Sabini, Savino, Schneiderman, Serrano,

        10       A. Smith, and Stavisky.

        11                  Those Senators absent from voting

        12       on Calendar Number 271 are Senators Gonzalez

        13       and Sampson.

        14                  Ayes, 40.  Nays, 16.

        15                  ACTING PRESIDENT WRIGHT:    The

        16       bill is passed.

        17                  Senator Morahan, why do you rise?

        18                  SENATOR MORAHAN:    Thank you, Mr.

        19       President.  I'd like to be recorded in the

        20       negative on Calendar Number 60, Senate Bill

        21       120.

        22                  ACTING PRESIDENT WRIGHT:

        23       Senator, we have not passed that bill yet.

        24       You're fine.

        25                  SENATOR MORAHAN:    Oh, okay.



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         1                  ACTING PRESIDENT WRIGHT:    The

         2       Secretary will read.

         3                  THE SECRETARY:    Calendar Number

         4       272, Senate Budget Bill, Senate Print 993B, an

         5       act to amend Chapter 728 of the Laws of 1982.

         6                  SENATOR SCHNEIDERMAN:

         7       Explanation.

         8                  ACTING PRESIDENT WRIGHT:    Senator

         9       Johnson, an explanation has been requested.

        10                  SENATOR JOHNSON:    This bill, Mr.

        11       President, is the Article VII or the language

        12       bill pertaining to Senate 555D and 994B.  So

        13       it's just the words that put into effect the

        14       budget we've discussed for the last half hour.

        15                  ACTING PRESIDENT WRIGHT:    Thank

        16       you, Senator Johnson.

        17                  Senator Schneiderman.

        18                  SENATOR SCHNEIDERMAN:    Mr.

        19       President, on the bill very briefly.

        20                  I just want to note that this is a

        21       language bill on environmental conservation

        22       and economic development that actually does

        23       contain language implementing the -- on the

        24       issue that Senator Sabini spoke about so

        25       eloquently a few moments ago.



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         1                  This is an unusual moment for me,

         2       because I rise to speak in praise of Governor

         3       Pataki.  His proposal in Article VII that is

         4       undone by this legislation would actually

         5       provide significantly more protection for

         6       New York's wetlands than are provided for in

         7       the Senate bill.  Similarly, the Assembly's

         8       resolution, although operating through a

         9       different mechanism, would provide more

        10       protections.

        11                  It is unassailable that we have the

        12       weakest wetlands protection law in the

        13       Northeast.  While other states protect

        14       wetlands regardless of size, we only protect

        15       wetlands that are 12.4 acres or of, quote,

        16       unusual local significance.

        17                  Senator Sabini's comments about the

        18       last bill obtain equally with regard to this

        19       bill.  And it is something that, again, I hope

        20       we will take up in conference committee.  I

        21       would hate for the Senate to be the only

        22       reason we can't provide additional wetlands

        23       protection when the Governor has proposed

        24       something significantly better.

        25                  Thank you, Mr. President.



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         1                  ACTING PRESIDENT WRIGHT:    Is

         2       there any other Senator wishing to be heard on

         3       the bill?

         4                  That will end debate.

         5                  The Secretary will ring the bell.

         6                  The Secretary will read the last

         7       section.

         8                  THE SECRETARY:    Section 2.  This

         9       act shall take effect immediately.

        10                  ACTING PRESIDENT WRIGHT:    Call

        11       the roll.

        12                  I remind the members to remain in

        13       their chairs for the record of the vote.

        14                  (The Secretary called the roll.)

        15                  ACTING PRESIDENT WRIGHT:

        16       Announce the results.

        17                  THE SECRETARY:    Those recorded in

        18       the negative on Calendar Number 272 are

        19       Senators Andrews, Diaz, Dilan, L. Krueger,

        20       Onorato, Paterson, Sabini, Savino,

        21       Schneiderman, Serrano, A. Smith and Stavisky.

        22                  Those Senators absent from voting

        23       on Calendar Number 272 are Senators Gonzalez

        24       and Klein.

        25                  Ayes, 44.  Nays, 12.



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         1                  ACTING PRESIDENT WRIGHT:    The

         2       bill is passed.

         3                  The Secretary will read.

         4                  THE SECRETARY:    Calendar Number

         5       273, Senate Budget Bill, Senate Print 994B, an

         6       act to amend the Public Authorities Law and

         7       others.

         8                  SENATOR SCHNEIDERMAN:

         9       Explanation.

        10                  ACTING PRESIDENT WRIGHT:    Senator

        11       Johnson, an explanation has been requested.

        12                  SENATOR JOHNSON:    Mr. President,

        13       this bill you just called up is the bill that

        14       implements the transportation budget, which we

        15       have already discussed.

        16                  ACTING PRESIDENT WRIGHT:    Senator

        17       Savino.

        18                  SENATOR SAVINO:    Mr. President, I

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

        20       ask the reading of the amendment be waived,

        21       and I ask to be heard on the amendment.

        22                  ACTING PRESIDENT WRIGHT:    There

        23       is an amendment at the desk.  The reading is

        24       waived, and you may be heard on the amendment.

        25                  SENATOR SAVINO:    Thank you, Mr.



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         1       President.

         2                  The proposal would allow for state

         3       private-sector contracts to lapse without

         4       renewal and mandate that the State Department

         5       of Transportation subsequently hire an

         6       additional 800 state employees to provide

         7       engineering services over a five-year period

         8       starting in state fiscal year 2006-2007.

         9                  It is estimated that the state will

        10       save between $50 million and $70 million over

        11       a five-year period through the implementation

        12       of this proposal.

        13                  In 1990, State Comptroller Ned

        14       Regan compared the cost of DOT engineers with

        15       consulting engineers and concluded the State

        16       Department of Transportation could save

        17       millions of dollars by reducing its reliance

        18       on outside contractors and outside engineering

        19       services for design, supervision and

        20       inspection and instead increase its own

        21       engineering staff.

        22                  In May 1998, former State

        23       Comptroller Carl McCall issued a report which

        24       concluded:  "The number of in-house

        25       engineering positions has declined by



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         1       10 percent since 1995, and the use of

         2       consultants is on the rise.  The department

         3       has not determined, through cost analysis or

         4       other means, that using consultants rather

         5       than in-house engineers is cost-effective or

         6       produces improved services for taxpayers."

         7                  In March 1999, in what was widely

         8       viewed as an effort to refute the

         9       comptrollers' reports, the Department of

        10       Transportation hired the international

        11       accounting firm of KPMG to perform a

        12       state-of-the-art, activity-based costing

        13       analysis to compare the costs of in-house

        14       engineers versus consulting engineers.  The

        15       study found that the consultants are

        16       approximately 50 to 75 percent more expensive

        17       than using in-house resources.

        18                  Mr. President, I urge my fellow

        19       Senators to support this amendment, which

        20       would lead to substantial savings to the state

        21       in the tens of millions of dollars.

        22                  Thank you.

        23                  ACTING PRESIDENT WRIGHT:    Thank

        24       you, Senator.

        25                  Any other member wishing to be



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         1       heard on the amendment?

         2                  Those Senators in agreement please

         3       signify by raising your hands.

         4                  Announce the results.

         5                  THE SECRETARY:    Those recorded in

         6       agreement are Senators Andrews, Breslin,

         7       Brown, Diaz, Dilan, Hassell-Thompson, Klein,

         8       L. Krueger, C. Kruger, Montgomery, Onorato,

         9       Oppenheimer, Paterson, Sabini, Sampson,

        10       Savino, Schneiderman, Serrano, A. Smith,

        11       M. Smith, Stachowski, Stavisky and Valesky.

        12                  ACTING PRESIDENT WRIGHT:    The

        13       amendment is not agreed to.

        14                  Senator Krueger.

        15                  SENATOR LIZ KRUEGER:    Thank you,

        16       Mr. President.  If I could ask the sponsor to

        17       yield to a question.

        18                  ACTING PRESIDENT WRIGHT:    Senator

        19       Johnson, will you yield to a question?

        20                  SENATOR JOHNSON:    Yes, Mr.

        21       President.

        22                  SENATOR LIZ KRUEGER:    Thank you.

        23                  Thank you, Mr. President.

        24                  ACTING PRESIDENT WRIGHT:    Senator

        25       Krueger.



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         1                  SENATOR LIZ KRUEGER:    Part I of

         2       this bill is actually a criminal bill

         3       involving aggravated loitering in a transit

         4       facility.  And I understand that it's in

         5       theory to decrease the number of people who

         6       are trying to illegally sell Metro cards.

         7                  But why would we have a criminal

         8       penalty bill or a misdemeanor bill within a

         9       budget language bill?  What's it doing here?

        10                  SENATOR JOHNSON:    Senator, this

        11       bill covers crimes on MTA property.  This is

        12       related to transportation, and those crimes

        13       relate to crimes on transportation property.

        14                  SENATOR LIZ KRUEGER:    Thank you.

        15                  Mr. President.

        16                  ACTING PRESIDENT WRIGHT:    Senator

        17       Krueger.

        18                  SENATOR LIZ KRUEGER:    Thank you.

        19                  I'll accept the argument that

        20       because it relates to crimes on transportation

        21       property, it should be in a budget language

        22       bill for the moment.  Although I guess I would

        23       argue that criminal bills and misdemeanor

        24       bills should be handled as individual bills

        25       and that while language bills too often end up



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         1       being public policy documents, as opposed to

         2       language matching to the budget, that when we

         3       get to the point where we're actually doing

         4       loitering bills within a budget bill, we

         5       really ought to be rethinking what the role of

         6       the budget is versus the role of the

         7       Legislature in determining policies involving

         8       public protection and vandalism and criminal

         9       justice.

        10                  Thank you, Mr. President.

        11                  ACTING PRESIDENT WRIGHT:    Senator

        12       Volker.

        13                  SENATOR VOLKER:    I just want to

        14       say that I agree with you.  The problem is

        15       this was part of the Governor's budget bill.

        16       And, I mean, I just think it is kind of silly

        17       myself.  But that's the problem with the

        18       process in these Article VII bills.

        19                  And technically, we could strike it

        20       out or whatever, I suppose.  But the problem

        21       is we can't amend it.  And what we're trying

        22       to do here is do as much of the Governor's

        23       bills as we can.

        24                  But I personally agree with you.

        25       You may not remember, but last year I was



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         1       pulling stuff out of the budget and passing

         2       them here, just to point out that I happen to

         3       agree with that.  But there isn't a great deal

         4       we can do about it.

         5                  ACTING PRESIDENT WRIGHT:    Any

         6       other member wishing to be heard on the bill?

         7                  The Secretary will ring the bell

         8       and read the last section.

         9                  THE SECRETARY:    Section 3.  This

        10       act shall take effect immediately.

        11                  ACTING PRESIDENT WRIGHT:    Call

        12       the roll.

        13                  (The Secretary called the roll.)

        14                  ACTING PRESIDENT WRIGHT:    Senator

        15       Montgomery, to explain her vote.

        16                  SENATOR MONTGOMERY:    Yes, Mr.

        17       President, just briefly to explain my vote.

        18                  I'm going to not vote no on this,

        19       but I do have concerns that the Thruway

        20       Authority is looking to increase the funding

        21       to pay for their bridge and highway program,

        22       bond cap.  And at the same time, they are

        23       seeking a 35 percent increase in the toll on

        24       commercial vehicles and a 25 percent increase

        25       on regular car vehicles.



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         1                  So it means that we are being asked

         2       to pay twice for the Thruway Authority.  We're

         3       asked to pay as individuals, especially -- we

         4       enjoy having upstate farmers come to the city

         5       to sell their produce.  I have several in my

         6       district; they come every week.  Many of them

         7       come several times during the week.  It's

         8       going to be an additional tax on people who

         9       are trying to do business in New York State,

        10       while at the same time they're raising their

        11       bond cap and requiring us to pay the debt

        12       service over a long period of time.

        13                  So I think that we need to make

        14       this very clear to the authority -- certainly

        15       I intend to -- that this is an unfair double

        16       tax on the citizens of New York State who use

        17       the authority to travel all over the state to

        18       do business and at the same time we're going

        19       to be required to pay the debt service on

        20       their bonds.

        21                  So I hope that members of this

        22       Legislature will make it clear to them that we

        23       object to that process.

        24                  ACTING PRESIDENT WRIGHT:

        25       Senator, how are you voting?



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         1                  SENATOR MONTGOMERY:    I'm voting

         2       yes.

         3                  ACTING PRESIDENT WRIGHT:    Senator

         4       Montgomery will be recorded in the

         5       affirmative.

         6                  Senator Hassell-Thompson.

         7                  SENATOR HASSELL-THOMPSON:    Just

         8       very quickly on the bill, Mr. President.

         9                  A couple of years ago, several

        10       hundreds of thousands of dollars were cut out

        11       of this CHIPS program, and it disallowed local

        12       communities from being able to do some of the

        13       kinds of roadwork and sidewalks and whatever

        14       that was very, very necessary for

        15       municipalities.

        16                  And many of our communities have

        17       county roads and state roads that go through

        18       our cities.  And if anybody has tried to drive

        19       in their communities these last weeks and have

        20       not had almost an axle broken or some damage

        21       to their vehicles, they're very, very

        22       fortunate.  Because we've had some potholes

        23       that the whole stove could go in.  We're not

        24       talking potholes, we're talking about the

        25       whole kitchen sink.



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         1                  And so I am -- this is one of the

         2       few bills that I will be supporting in this

         3       budget, because it is critical for us to

         4       really take a look at what it is that we're

         5       doing.  We're a surface community in the

         6       Bronx, and we don't have the advantage of

         7       having quite the subway system that most of

         8       New York enjoys.  And we have to appreciate

         9       our bus services.  And so we need our buses to

        10       be able to get from one end of the Bronx to

        11       the other.  So certainly, silly as it may

        12       appear to be to some people, try traversing

        13       some of those roads in the Bronx and you'll

        14       understand exactly what I mean.

        15                  Thank you, Mr. President.

        16                  ACTING PRESIDENT WRIGHT:    Senator

        17       Hassell-Thompson will be recorded in the

        18       affirmative.

        19                  Announce the results.

        20                  THE SECRETARY:    Those recorded in

        21       the negative on Calendar Number 273 are

        22       Senators Paterson and Schneiderman.

        23                  Those Senators absent from voting:

        24       Senator Gonzalez.

        25                  Ayes, 55.  Nays, 2.



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         1                  ACTING PRESIDENT WRIGHT:    The

         2       bill is passed.

         3                  The Secretary will read.

         4                  THE SECRETARY:    Calendar Number

         5       274, Senate Budget Bill, Senate Print 995C, an

         6       act to amend the Tax Law and others.

         7                  SENATOR LIZ KRUEGER:

         8       Explanation.

         9                  ACTING PRESIDENT WRIGHT:    Senator

        10       Johnson, an explanation has been requested.

        11                  SENATOR JOHNSON:    This budget

        12       includes almost a billion dollars in business

        13       tax reductions over the next four years to

        14       create job strength in the economy, a

        15       high-tech small business health insurance

        16       credit, direct school property tax rebate.

        17       Manufacturing jobs, there will be a single

        18       sales factor to boost manufacturing jobs.

        19       Investment in emerging technologies.  The

        20       state taxpayers would save $273 million in

        21       2005-2006, increasing to $2.3 billion in four

        22       years.

        23                  ACTING PRESIDENT WRIGHT:    Thank

        24       you.

        25                  Senator Brown.



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         1                  SENATOR BROWN:    Mr. President, I

         2       believe there's an amendment at the desk.

         3                  ACTING PRESIDENT WRIGHT:    There

         4       is an amendment.

         5                  SENATOR BROWN:    I ask that the

         6       reading of the amendment be waived, and I ask

         7       to be heard on the amendment.

         8                  ACTING PRESIDENT WRIGHT:    The

         9       reading is waived, and you may be heard on the

        10       amendment.

        11                  Senator Brown.

        12                  SENATOR BROWN:    Thank you.  This

        13       amendment would create a personal income tax

        14       credit for first-time homebuyers, essentially,

        15       a tax cut.

        16                  This proposal would provide a

        17       New York State personal income tax credit of

        18       $1,000 or $1,250 for only first-time

        19       homebuyers who purchase a primary residence in

        20       New York State.  This proposal provides a

        21       $1,250 personal income tax credit for

        22       households with gross household incomes less

        23       than $150,000, and a $1,000 tax credit for

        24       households with a gross income of between

        25       $150,000 and $200,000.



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         1                  Home ownership provides and

         2       generates many social and economic benefits

         3       that ultimately benefit almost all

         4       New Yorkers.  The state should encourage home

         5       ownership by providing a personal income tax

         6       credit for first-time homebuyers that purchase

         7       their primary residence in New York whose

         8       household income gross income is more than

         9       $200,000.

        10                  Now, certainly we all know that in

        11       communities that encourage home ownership,

        12       that makes for stronger communities.  This

        13       supports people in being able to become

        14       homeowners all across the State of New York.

        15       And as I said, this is essentially a tax cut

        16       that would generate tens of millions of

        17       dollars in economic activity.

        18                  I urge all of my colleagues in the

        19       Senate to support this amendment.

        20                  Thank you, Mr. President.

        21                  ACTING PRESIDENT WRIGHT:    Is

        22       there any other member on the amendment?

        23                  On the amendment, those Senators in

        24       agreement please signify by raising their

        25       hands.



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         1                  THE SECRETARY:    Those recorded in

         2       agreement are Senators Andrews, Breslin,

         3       Brown, Diaz, Dilan, Hassell-Thompson, Klein,

         4       C. Kruger, Montgomery, Onorato, Oppenheimer,

         5       Paterson, Sabini, Sampson, Savino,

         6       Schneiderman, Serrano, A. Smith, M. Smith,

         7       Stachowski, Stavisky and Valesky.

         8                  ACTING PRESIDENT WRIGHT:    The

         9       amendment is not agreed to.

        10                  Senator Hassell-Thompson.

        11                  SENATOR HASSELL-THOMPSON:    Thank

        12       you, Mr. President.

        13                  I believe there's an amendment at

        14       the desk.  And I ask that the reading of the

        15       amendment be waived.  And I'd like to be heard

        16       on the amendment, very briefly.

        17                  ACTING PRESIDENT WRIGHT:    There

        18       is an amendment at the desk.  The reading is

        19       waived, and you may be heard on the amendment.

        20                  SENATOR HASSELL-THOMPSON:    Thank

        21       you, Mr. President.

        22                  This amendment is just an attempt

        23       on our part to ask us to rethink and to look

        24       at the enhanced STAR exemption for our senior

        25       citizens.  And this proposal would increase



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         1       the proposed $50,000 to $75,000 on the first

         2       $75,000 on home ownership.

         3                  For those of you who may or may not

         4       be aware, this proposal is for persons 65 and

         5       older with incomes that are at or below

         6       $64,650, who are currently receiving an

         7       enhanced credit on their properties if they're

         8       eligible for a regular STAR rebate.

         9                  The standard STAR credit is an

        10       exemption for the first $30,000 of the value,

        11       and the enhanced STAR exempts the first

        12       $50,000.  Both amounts are higher in counties

        13       where median home prices are higher than the

        14       statewide median.  So with our rising local

        15       property taxes at present, a very real burden

        16       continues to exist for all homeowners in the

        17       state, but it is one that impacts seniors

        18       especially hard.

        19                  Our measure would help seniors stay

        20       in their houses and to mitigate the growing

        21       tendency of not being able to afford to live

        22       in one's own home, a syndrome that is

        23       increasingly apparent in many of our counties,

        24       including Westchester, around the state.

        25                  Furthermore, our tax cut would



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         1       increase direct local economic activity.

         2                  There is a fiscal impact,

         3       obviously, to doing this, but it certainly is

         4       significantly worth it to those seniors who

         5       have worked and who have paid their dues to us

         6       in the State of New York.

         7                  Thank you, Mr. President.

         8                  ACTING PRESIDENT WRIGHT:    Thank

         9       you, Senator.

        10                  On the amendment, those Senators in

        11       agreement please signify by raising your

        12       hands.

        13                  THE SECRETARY:    Those recorded in

        14       agreement are Senators Andrews, Breslin,

        15       Brown, Diaz, Dilan, Hassell-Thompson, Klein,

        16       L. Krueger, Montgomery, Onorato, Oppenheimer,

        17       Paterson, Sabini, Sampson, Savino,

        18       Schneiderman, Serrano, M. Smith, Stavisky and

        19       Valesky.

        20                  ACTING PRESIDENT WRIGHT:    The

        21       amendment is not agreed to.

        22                  Senator Serrano.

        23                  SENATOR SERRANO:    Mr. President,

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

        25       And I ask the reading of the amendment to be



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         1       waived and ask to be heard on the amendment.

         2                  ACTING PRESIDENT WRIGHT:    There

         3       is an amendment at the desk.  The reading is

         4       waived, and you may be heard on the amendment.

         5                  Senator Serrano.

         6                  SENATOR SERRANO:    Thank you, Mr.

         7       President.

         8                  This amendment makes permanent the

         9       sales tax exemption on clothing and shoes

        10       under $110.  This sales tax is probably the

        11       most regressive of taxes.  While there are

        12       some who wish to expedite tax breaks for the

        13       wealthy, we need to support and look at the

        14       tax cuts that will help those who need it

        15       most, our poor and working-class families in

        16       the state.

        17                  I ask my colleagues to support this

        18       amendment.  And I thank you, Mr. President.

        19                  ACTING PRESIDENT WRIGHT:    Thank

        20       you.  On the amendment, those Senators in

        21       agreement please signify by raising their

        22       hands.

        23                  THE SECRETARY:    Those recorded in

        24       agreement are Senators Andrews, Breslin,

        25       Brown, Diaz, Dilan, Hassell-Thompson, Klein,



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         1       L. Krueger, C. Kruger, Montgomery, Onorato,

         2       Oppenheimer, Paterson, Sabini, Sampson,

         3       Savino, Schneiderman, Serrano, M. Smith,

         4       A. Smith, Stachowski, Stavisky and Valesky.

         5                  ACTING PRESIDENT WRIGHT:    The

         6       amendment is not agreed to.

         7                  We're on the bill.  Any Senator

         8       wishing to speak on the bill?

         9                  Senator Krueger.

        10                  SENATOR LIZ KRUEGER:    Thank you.

        11       On the bill, Mr. President.  I apologize for

        12       my delay.

        13                  I'm not going to question the

        14       sponsor on this bill, because the time is late

        15       in the day.  But I would like to highlight if

        16       I were to ask him how much money is in this

        17       revenue bill, how much money we are losing in

        18       taxes from this bill, I hazard to say no one

        19       in this room would be able to answer the

        20       question what is the total dollar value of new

        21       tax cuts in this bill, what is the total

        22       dollar value of new revenue.

        23                  Because in fact, several of the

        24       proposals in our revenue package don't even

        25       have a financial impact named -- including,



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         1       specifically, a new tax credit for a small

         2       businesses' health insurance program, which we

         3       have also debated in this house as a separate

         4       freestanding bill.  It does talk about an

         5       estimated 31, 32 million in new costs

         6       associated with it through stop-loss pull

         7       funds, but it doesn't talk about the tax

         8       impact.

         9                  When I total up some of the other

        10       impacts here, I can add up to about

        11       $1.5 billion in tax cuts.  And I have to say,

        12       given what we are dealing with this week, what

        13       we are dealing with in not having the money

        14       for, again, public education, transportation,

        15       housing, health care, why we are deciding to

        16       cut $1.5 billion in our tax revenue through

        17       this bill is, at best, confusing and I suppose

        18       at its worst case is the worst kind of

        19       pandering to give special interests tax cuts

        20       at a time when the State of New York can't

        21       meet our basic obligations to our constituents

        22       at the same time as we come up with huge new

        23       slush funds of revenue -- excuse me, of

        24       expenditures under our economic development

        25       budget.



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         1                  But again, when you look through

         2       this revenue bill, and I hope everyone does,

         3       and I hope everyone feels like they can

         4       explain at home why they were giving special

         5       tax credits and tax exemptions and tax

         6       reductions for targeted businesses and for

         7       individuals with incomes above a certain

         8       level, and why we are reversing our commitment

         9       on sales tax for clothing and shoes and why we

        10       are reversing our commitment on any number of

        11       other programs in the budget, that you are

        12       comfortable making these types of tax cuts and

        13       these specific tax cuts.

        14                  I urge my colleagues not to pass

        15       this bill.  We can't afford this amount of tax

        16       reduction this year.  We can't afford in any

        17       year these types of tax reductions for special

        18       interests and categories of people who are not

        19       those most in need in our state.

        20                  And again, I'm not comfortable

        21       voting for a bill that doesn't even tell me

        22       how much some of these items will really cost

        23       the taxpayer.  I think we should have the

        24       financial information in front of us when we

        25       are changing our tax policies.



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         1                  So I will be voting no.  The hour

         2       is late.  I hope my colleagues will join me in

         3       voting no, even if you accept the argument

         4       that you ought to know what's in this bill

         5       before you pass it.

         6                  Thank you, Mr. President.

         7                  ACTING PRESIDENT WRIGHT:    Thank

         8       you, Senator.

         9                  Is any other Senator wishing to be

        10       heard on the bill?

        11                  That will end debate.

        12                  The Secretary will ring the bell;

        13       there will be a vote on the bill.

        14                  Read the last section.

        15                  THE SECRETARY:    Section 7.  This

        16       act shall take effect June 1, 2005.

        17                  ACTING PRESIDENT WRIGHT:    Call

        18       the roll.

        19                  (The Secretary called the roll.)

        20                  ACTING PRESIDENT WRIGHT:    Senator

        21       Oppenheimer, to explain her vote.

        22                  SENATOR OPPENHEIMER:    I will be

        23       voting in favor.

        24                  But the one thing that has been

        25       disturbing me very much is that the Governor



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         1       is going to go ahead -- it's not in this bill,

         2       but he's going to go ahead with the surcharge

         3       that was put on the sales tax two years ago --

         4       was it two years ago? -- two years ago of a

         5       quarter of a percent.  And many people in the

         6       health care field feel that this quarter of a

         7       percent should not be eliminated this year,

         8       which seems to be what is in the Governor's

         9       mind.

        10                  And this quarter of a percent sales

        11       tax could go a long way to save many of our

        12       hospitals that are in very dire shape, dire

        13       condition.  And I do not know if we'll be able

        14       to maintain some of these hospitals.

        15                  One is a tertiary care hospital,

        16       and it's a very difficult operation to

        17       maintain because it is so costly.  It's

        18       located in Westchester County, but it deals

        19       with seven counties throughout the entire

        20       Hudson River Valley.  And it has been of major

        21       importance to us, and we simply don't know how

        22       we can continue to fund it unless we have the

        23       maintenance of this one-quarter of 1 percent

        24       sales tax.

        25                  I'll be voting in favor.



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         1                  ACTING PRESIDENT WRIGHT:    Senator

         2       Oppenheimer will be recorded in the

         3       affirmative.

         4                  Announce the results.

         5                  THE SECRETARY:    Those recorded in

         6       the negative on Calendar Number 274 are

         7       Senators Andrews, Diaz, Hassell-Thompson, L.

         8       Krueger, Onorato, Paterson, Sabini, Savino,

         9       Schneiderman, Serrano, A. Smith, and Stavisky.

        10                  Those Senators absent from voting:

        11       Senator Gonzalez.

        12                  Ayes, 45.  Nays, 12.

        13                  ACTING PRESIDENT WRIGHT:    The

        14       bill is passed.

        15                  The Secretary will read.

        16                  THE SECRETARY:    In relation to

        17       Calendar Number 275, Senator Johnson moves to

        18       discharge, from the Committee on Finance,

        19       Assembly Bill Number 6451 and substitute it

        20       for the identical Senate Bill Number 3274,

        21       Third Reading Calendar 275.

        22                  ACTING PRESIDENT WRIGHT:    The

        23       substitution is so ordered.

        24                  The Secretary will read.

        25                  THE SECRETARY:    Calendar Number



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         1       275, Assembly Budget Bill, Assembly Print

         2       Number 6451, an act to amend Chapters 50, 53,

         3       54 and 55 of the Laws of 2004, making

         4       appropriations.

         5                  ACTING PRESIDENT WRIGHT:    The

         6       Secretary will ring the bell.

         7                  Senator Brown.

         8                  SENATOR BROWN:    On the bill, Mr.

         9       President.

        10                  ACTING PRESIDENT WRIGHT:    Senator

        11       Brown, on the bill.

        12                  SENATOR BROWN:    Thank you very

        13       much.

        14                  Mr. President, there is a portion

        15       of this bill that relocates employees at the

        16       General Donovan State Office Building in

        17       Buffalo.  The building will be demolished as

        18       part of the Bass Pro project in Buffalo.  And

        19       I certainly am very much in favor of the

        20       project.

        21                  I am concerned that there is not

        22       language contained that will guarantee this

        23       the workers will be relocated in Buffalo.  I

        24       made the same point during the Finance

        25       Committee meeting earlier today, and I



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         1       appreciate Senator Johnson and Senator Volker

         2       indicating that they believe that these

         3       workers will be relocated in Buffalo and that

         4       steps will be taken to make sure that this is

         5       guaranteed.

         6                  So I just wanted to make that point

         7       for the record.  Thank you.

         8                  ACTING PRESIDENT WRIGHT:    Thank

         9       you, Senator Brown.

        10                  Any further comments on the bill?

        11                  The Secretary will ring the bell.

        12                  Read the last section.

        13                  THE SECRETARY:    Section 5.  This

        14       act shall take effect immediately.

        15                  ACTING PRESIDENT WRIGHT:    Call

        16       the roll on the bill.

        17                  (The Secretary called the roll.)

        18                  ACTING PRESIDENT WRIGHT:

        19       Announce the results.

        20                  THE SECRETARY:    Those Senators

        21       absent from voting on Calendar Number 275:

        22       Senator Gonzalez.

        23                  Ayes, 57.

        24                  ACTING PRESIDENT WRIGHT:    The

        25       bill is passed.



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         1                  THE SECRETARY:    In relation to

         2       Calendar Number 276, Senator Johnson moves to

         3       discharge, from the Committee on Finance,

         4       Assembly Bill Number 6452 and substitute it

         5       for the identical Senate Bill Number 3275,

         6       Third Reading Calendar 276.

         7                  ACTING PRESIDENT WRIGHT:    The

         8       substitution is so ordered.

         9                  The Secretary will read.

        10                  THE SECRETARY:    Calendar Number

        11       276, Assembly Budget Bill, Assembly Print

        12       Number 6452, an act to amend Chapter 2 of the

        13       Laws of 1998, amending the Public Health Law

        14       and others.

        15                  ACTING PRESIDENT WRIGHT:    Read

        16       the last section.

        17                  THE SECRETARY:    Section 14.  This

        18       act shall take effect immediately.

        19                  ACTING PRESIDENT WRIGHT:

        20                  The Secretary will ring the bell.

        21                  The roll will be called on the

        22       bill.

        23                  (The Secretary called the roll.)

        24                  ACTING PRESIDENT WRIGHT:

        25       Results?



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         1                  THE SECRETARY:    Those Senators

         2       absent from voting on Calendar Number 276:

         3       Senator Gonzalez.

         4                  Ayes, 57.

         5                  ACTING PRESIDENT WRIGHT:    The

         6       bill is passed.

         7                  Senator Skelos.

         8                  SENATOR SKELOS:    Mr. President,

         9       on the active list, would you please lay aside

        10       Calendar Number 60 for the day.

        11                  ACTING PRESIDENT WRIGHT:

        12       Calendar Number 60 is laid aside for the day.

        13                  SENATOR SKELOS:    Mr. President,

        14       is there any further business at the desk?

        15                  ACTING PRESIDENT WRIGHT:    There

        16       is none.

        17                  SENATOR SKELOS:    I believe

        18       Senator Valesky has a motion to petition.

        19                  ACTING PRESIDENT WRIGHT:    Senator

        20       Valesky.

        21                  SENATOR VALESKY:    Mr. President,

        22       I have a motion at the desk.  I'd like to have

        23       it called up at this time, please.

        24                  ACTING PRESIDENT WRIGHT:    The

        25       Secretary will read.



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         1                  THE SECRETARY:    By Senator

         2       Valesky, Senate Print Number 1452, an act to

         3       amend the Legislative Law.

         4                  ACTING PRESIDENT WRIGHT:    Senator

         5       Valesky.

         6                  SENATOR VALESKY:    Thank you, Mr.

         7       President.

         8                  We have, as we all know in this

         9       chamber, been working on a record of 20 years

        10       in a row of late state budgets.  And while we

        11       are beginning a process today that hopefully

        12       will put an end to that dubious distinction --

        13       and in fact, if we look back over the past

        14       couple of months, when we look at five-way

        15       leaders' meetings covered by the media, when

        16       we talk about one of the earliest meetings

        17       ever on revenues, when we are prepared to go

        18       to joint Senate-Assembly conference committees

        19       on the budget in the next day or two for the

        20       first time in a number of years, those are all

        21       very positive signs and I'm sure give all of

        22       us encouragement that perhaps this might be

        23       the year that we break that 20-year

        24       distinction.

        25                  But I think that we need to enact



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         1       structural reform of how we adopt budgets in

         2       the State of New York.  And in fact, the first

         3       two bills that I voted on back in January,

         4       Senate Bills 2 and 3, which were comprehensive

         5       budget reform legislation, I would hope the

         6       Assembly would take up either of those bills

         7       in the near future.

         8                  But if we look to a couple of years

         9       ago, in increasing the pressure to bring about

        10       an on-time budget in this state, we went to a

        11       system where legislators pay is now withheld

        12       after April 1st and until a budget is passed.

        13       And there are some who thought that that would

        14       provide the kind of pressure to bring about

        15       on-time budgets.  It obviously has not.  And

        16       in fact, last year's August 11th budget was

        17       the latest in history.

        18                  My bill, Senate Print 1452, would

        19       simply require the Legislature to remain in

        20       session after April 1st, each weekday after

        21       April 1 that the budget would not be passed.

        22                  It is my hope that rank and file

        23       legislators, who would be prevented from

        24       meeting with their constituents in the

        25       district and attending to the important



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         1       business of the people in their Senate and

         2       Assembly districts, by being here would give

         3       us one more tool to ratchet up the pressure in

         4       regard to adopting on-time budgets.

         5                  So, Mr. President, I encourage my

         6       colleagues to support this motion to petition

         7       bringing Senate Bill 1452 to the floor.

         8                  Thank you.

         9                  ACTING PRESIDENT WRIGHT:    Thank

        10       you, Senator.

        11                  All those Senators in favor of the

        12       petition out of committee please signify by

        13       raising their hands.

        14                  Results?

        15                  THE SECRETARY:    Those recorded in

        16       agreement are Andrews, Breslin, Brown, Diaz,

        17       Dilan, Hassell-Thompson, Klein, L. Krueger,

        18       Montgomery, Onorato, Oppenheimer, Paterson,

        19       Sabini, Sampson, Savino, Schneiderman,

        20       Serrano, A. Smith, M. Smith, Stachowski,

        21       Stavisky and Valesky.

        22                  ACTING PRESIDENT WRIGHT:    The

        23       petition is not agreed to.

        24                  Senator Skelos.

        25                  SENATOR SKELOS:    There being no



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         1       further business to come before the Senate, I

         2       move we stand adjourned until Tuesday,

         3       March 15th, at 1:30 p.m.

         4                  ACTING PRESIDENT WRIGHT:    On

         5       motion, the Senate stands adjourned until

         6       Tuesday, March 15th, at 1:30 p.m.

         7                  (Whereupon, at 6:15 p.m., the

         8       Senate adjourned.)

         9

        10

        11

        12

        13

        14

        15

        16

        17

        18

        19

        20

        21

        22

        23

        24

        25



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