Regular Session - March 31, 2006

    

 
                                                        1804



         1                 NEW YORK STATE SENATE

         2

         3

         4                THE STENOGRAPHIC RECORD

         5

         6

         7

         8

         9                   ALBANY, NEW YORK

        10                    March 31, 2006

        11                      10:35 a.m.

        12

        13

        14                    REGULAR SESSION

        15

        16

        17

        18  LT. GOVERNOR MARY O. DONOHUE, President

        19  STEVEN M. BOGGESS, Secretary

        20

        21

        22

        23

        24

        25


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

         2                  THE PRESIDENT:    The Senate will

         3       please come to order.

         4                  I ask everyone present to please

         5       rise and repeat with me the Pledge of

         6       Allegiance.

         7                  (Whereupon, the assemblage recited

         8       the Pledge of Allegiance to the Flag.)

         9                  THE PRESIDENT:    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       Thursday, March 30, the Senate met pursuant to

        18       adjournment.  The Journal of Wednesday,

        19       March 29, was read and approved.  On motion,

        20       Senate adjourned.

        21                  ACTING PRESIDENT MORAHAN:

        22       Without objection, the Journal stands approved

        23       as 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                  Reports of select committees.

         4                  Communications and reports from

         5       state officers.

         6                  Motions and resolutions.

         7                  Senator Bruno.

         8                  SENATOR BRUNO:    Mr. President,

         9       are there any substitutions at the desk?

        10                  ACTING PRESIDENT MORAHAN:    Yes,

        11       there are, Senator.

        12                  SENATOR BRUNO:    I would request

        13       that we make them at this time.

        14                  ACTING PRESIDENT MORAHAN:    The

        15       Secretary will read.

        16                  THE SECRETARY:    On page 24,

        17       Senator Johnson moves to discharge, from the

        18       Committee on Finance, Assembly Bill Number

        19       9554C and substitute it for the identical

        20       Senate Bill Number 6454C, Third Reading

        21       Calendar 496.

        22                  And on page 26, Senator LaValle

        23       moves to discharge, from the Committee on

        24       Finance, Assembly Bill Number 9908 and

        25       substitute it for the identical Senate Bill


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         1       Number 6696, Third Reading Calendar 522.

         2                  ACTING PRESIDENT MORAHAN:

         3       Substitutions ordered.

         4                  Senator Bruno.

         5                  SENATOR BRUNO:    Mr. President, I

         6       believe that there is a resolution at the desk

         7       by Senator Parker.  I would ask that the title

         8       be read and move for its immediate adoption.

         9                  ACTING PRESIDENT MORAHAN:    The

        10       Secretary will read.

        11                  THE SECRETARY:    By Senator

        12       Parker, Legislative Resolution Number 4339,

        13       honoring the American Federation of Teachers

        14       Black Caucus, New York State Chapter, upon the

        15       occasion of hosting its Fourth Annual

        16       Scholarship Dinner Dance.

        17                  ACTING PRESIDENT MORAHAN:    All in

        18       favor of the resolution please signify by

        19       saying aye.

        20                  (Response of "Aye.")

        21                  ACTING PRESIDENT MORAHAN:    Nay?

        22                  (No response.)

        23                  ACTING PRESIDENT MORAHAN:    The

        24       resolution is adopted.

        25                  Senator Bruno.


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         1                  SENATOR BRUNO:    Mr. President,

         2       can we at this time have the noncontroversial

         3       reading of the calendar.

         4                  ACTING PRESIDENT MORAHAN:    The

         5       Secretary will read.

         6                  THE SECRETARY:    Calendar Number

         7       493, Senate Budget Bill, Senate Print 6451A,

         8       an act making appropriations for the support

         9       of government:  Legislature and Judiciary

        10       Budget.

        11                  ACTING PRESIDENT MORAHAN:    Read

        12       the last section.

        13                  THE SECRETARY:    Section 5.  This

        14       act shall take effect immediately.

        15                  ACTING PRESIDENT MORAHAN:    Call

        16       the roll.

        17                  (The Secretary called the roll.)

        18                  ACTING PRESIDENT MORAHAN:

        19       Announce the results.

        20                  THE SECRETARY:    Ayes, 44.

        21                  ACTING PRESIDENT MORAHAN:    The

        22       bill is passed.

        23                  THE SECRETARY:    Calendar Number

        24       495, Senate Budget Bill, Senate Print 6453C --

        25                  SENATOR SCHNEIDERMAN:    Lay it


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         1       aside.

         2                  ACTING PRESIDENT MORAHAN:    The

         3       bill is laid aside.

         4                  THE SECRETARY:    Calendar Number

         5       496, substituted earlier, Assembly Budget

         6       Bill, Assembly Print Number --

         7                  SENATOR SCHNEIDERMAN:    Lay it

         8       aside.

         9                  ACTING PRESIDENT MORAHAN:    The

        10       bill is laid aside.

        11                  THE SECRETARY:    Calendar Number

        12       499, Budget Bill, Senate Print 6457C, an act

        13       to amend the Social Services Law and others.

        14                  SENATOR SCHNEIDERMAN:    Lay it

        15       aside.

        16                  ACTING PRESIDENT MORAHAN:    The

        17       bill is laid aside.

        18                  THE SECRETARY:    Calendar Number

        19       500, Senate Budget Bill, Senate Print 6458C,

        20       an act to amend the Education Law.

        21                  SENATOR PATERSON:    Lay it aside.

        22                  ACTING PRESIDENT MORAHAN:    The

        23       bill is laid aside.

        24                  THE SECRETARY:    Calendar Number

        25       502, Senate Budget Bill, Senate Print 6460C,


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         1       an act to amend the Tax Law.

         2                  SENATOR PATERSON:    Lay it aside.

         3                  ACTING PRESIDENT MORAHAN:    The

         4       bill is laid aside.

         5                  THE SECRETARY:    Calendar Number

         6       522, substituted earlier by Member of the

         7       Assembly Greene, Assembly Print Number 9908,

         8       an act to amend the Public Health Law.

         9                  ACTING PRESIDENT MORAHAN:    Read

        10       the last section.

        11                  THE SECRETARY:    Section 2.  This

        12       act shall take effect immediately.

        13                  ACTING PRESIDENT MORAHAN:    Call

        14       the roll.

        15                  (The Secretary called the roll.)

        16                  ACTING PRESIDENT MORAHAN:

        17       Announce the results.

        18                  THE SECRETARY:    Ayes, 44.

        19                  ACTING PRESIDENT MORAHAN:    The

        20       bill is passed.

        21                  THE SECRETARY:    Calendar Number

        22       623, by the Senate Committee on Rules, Senate

        23       Print Number 7166, an act in relation to

        24       providing.

        25                  SENATOR SCHNEIDERMAN:    Lay it


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         1       aside.

         2                  ACTING PRESIDENT MORAHAN:    Read

         3       the last section.

         4                  Did they say lay it aside?  Didn't

         5       hear it.  Sorry.

         6                  Lay it aside.

         7                  You have to speak up, fellows.

         8                  Senator Bruno, that completes the

         9       noncontroversial reading of the calendar.

        10                  SENATOR BRUNO:    Mr. President,

        11       can we at this time have the controversial

        12       reading of the calendar, starting with

        13       Calendar Number 502.

        14                  ACTING PRESIDENT MORAHAN:    The

        15       Secretary will read.

        16                  THE SECRETARY:    Calendar Number

        17       502, Senate Budget Bill, Senate Print 6460C,

        18       an act to amend the Tax Law.

        19                  SENATOR PATERSON:    Explanation.

        20                  ACTING PRESIDENT MORAHAN:

        21       Senator Johnson, an explanation has been

        22       requested.

        23                  SENATOR JOHNSON:    Mr. President,

        24       this is a bill which enacts the various tax

        25       cuts and tax credits that are included in our


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         1       budget.  And many things people have been

         2       asking about -- child credit; married

         3       taxpayers, taking away the marriage penalty;

         4       STAR rebates; New York City personal income

         5       tax credits; National Guard exemptions --

         6       various things which we've all been looking

         7       for are in this bill.

         8                  ACTING PRESIDENT MORAHAN:    Thank

         9       you, Senator.

        10                  Senator Krueger.

        11                  SENATOR LIZ KRUEGER:    Thank you,

        12       Mr. President.

        13                  If the sponsor would please yield.

        14                  ACTING PRESIDENT MORAHAN:

        15       Senator Johnson, will you yield?

        16                  SENATOR JOHNSON:    Yes, Mr.

        17       President.

        18                  ACTING PRESIDENT MORAHAN:    The

        19       Senator yields.

        20                  SENATOR LIZ KRUEGER:    Thank you.

        21                  If, through you, Mr. President, the

        22       sponsor could explain, in the school tax

        23       relief STAR rebate program, which is estimated

        24       to cost the state of New York $805 million in

        25       revenue this year and $960 million in lost


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         1       revenue in the following year, what percentage

         2       of that revenue loss or tax rebate will go to

         3       people in the City of New York.

         4                  ACTING PRESIDENT MORAHAN:

         5       Senator Johnson.

         6                  SENATOR JOHNSON:    Approximately

         7       30 percent.

         8                  SENATOR LIZ KRUEGER:

         9       Approximately 30 percent.

        10                  SENATOR JOHNSON:    Right.

        11                  SENATOR LIZ KRUEGER:    Thank you.

        12                  If, through you, Mr. President, the

        13       sponsor would continue to yield.

        14                  ACTING PRESIDENT MORAHAN:

        15       Senator Johnson, will you continue to yield?

        16                  SENATOR JOHNSON:    Yes.

        17                  ACTING PRESIDENT MORAHAN:    The

        18       Senator yields.

        19                  SENATOR LIZ KRUEGER:    Thank you.

        20                  And if, through you, Mr. President,

        21       the sponsor could estimate for me the total

        22       lost revenue in this year for these tax-cut

        23       proposals.

        24                  ACTING PRESIDENT MORAHAN:

        25       Senator Johnson.


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         1                  SENATOR JOHNSON:    Well, I don't

         2       call it lost revenue.  I call it some fairness

         3       for the taxpayers of this state who are going

         4       to save on their tax bills and possibly

         5       survive for another year economically.

         6                  ACTING PRESIDENT MORAHAN:    Thank

         7       you, Senator.

         8                  SENATOR LIZ KRUEGER:    I'm sorry,

         9       if through you, Mr. President, the sponsor

        10       could still give me an answer -- even if we

        11       disagree about whether we're saving the people

        12       of New York taxes or we're losing revenue --

        13       what the estimated total change in revenue is

        14       from this bill.

        15                  ACTING PRESIDENT MORAHAN:    Are

        16       you asking the Senator to yield again?

        17                  SENATOR LIZ KRUEGER:    I'm sorry,

        18       Mr. President, yes.

        19                  ACTING PRESIDENT MORAHAN:

        20       Senator Johnson, will you continue to yield?

        21                  SENATOR JOHNSON:    Yes, Mr.

        22       President.

        23                  For the fiscal year 2006-2007 it is

        24       1.66 million -- billion.  Billion, million --

        25       a lot of zeros after it.


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         1                  SENATOR LIZ KRUEGER:    1.66

         2       billion, I think I heard?

         3                  SENATOR JOHNSON:    That's correct,

         4       yes.

         5                  SENATOR LIZ KRUEGER:    1.66

         6       billion.

         7                  And if the sponsor, through you,

         8       Mr. President, would continue to yield.

         9                  SENATOR JOHNSON:    Yes.

        10                  SENATOR LIZ KRUEGER:    Thank you.

        11                  One of the new proposed tax

        12       reductions is Empire Zone qualified

        13       investments, which my projections show that

        14       would reduce state revenue by $50 million, not

        15       in the next fiscal year but rather in

        16       2007-2008.  This is based on people who invest

        17       over $500 million to qualify for additional

        18       credits.

        19                  Have we done any outyear analysis

        20       of how much this would grow in years beyond

        21       that first year?  So it's $50 million, I

        22       believe, reduced state revenue for fiscal year

        23       2007-2008, but there's no data I could find on

        24       how much this would grow over time.  And this

        25       is the type of credit that would likely grow


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         1       significantly.

         2                  ACTING PRESIDENT MORAHAN:    Thank

         3       you.

         4                  Senator Johnson.

         5                  SENATOR JOHNSON:    I think your

         6       question was about the Empire Zone tax

         7       credits.  Is that correct?

         8                  SENATOR LIZ KRUEGER:    Yes.  How

         9       much that would be projected to cost the State

        10       of New York in lost revenue beyond the first

        11       year, which I believe is a $50 million

        12       projected loss of revenue.

        13                  SENATOR JOHNSON:    Yeah, that --

        14       $50 million and possibly, altogether,

        15       $100 million over the following years.

        16                  SENATOR LIZ KRUEGER:    Altogether

        17       a hundred million dollars is projected.

        18                  What on the year after that?  I'm

        19       sorry, Mr. President, if through you -- I'm

        20       just trying to clarify.

        21                  ACTING PRESIDENT MORAHAN:    The

        22       Senator continues to yield.

        23                  SENATOR JOHNSON:    We cannot see

        24       beyond a couple of years right now.

        25                  SENATOR LIZ KRUEGER:    I could not


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         1       hear the answer, Mr. President.

         2                  SENATOR JOHNSON:    Okay, it's

         3       $50 million for 2007-2008.  Nothing for the

         4       2006-2007 budget.  Only 2007-2008,

         5       $50 million.  A hundred million in the

         6       outyears, in the succeeding years.

         7                  SENATOR LIZ KRUEGER:    So I

         8       believe I'm hearing that it would be projected

         9       to be a hundred million annual after the first

        10       year?  I apologize, I'm having a little

        11       trouble hearing.

        12                  SENATOR JOHNSON:    It's not

        13       annual.  That's the total amount of money we

        14       expect to be out in the outyears, a hundred

        15       million total.  Not annually.  That's the

        16       consecutive following years.

        17                  SENATOR LIZ KRUEGER:    For

        18       2006-2007 and 2007-2008 combined, you're

        19       anticipating a hundred million?

        20                  SENATOR JOHNSON:    Well, 2006-2007

        21       is really -- there's nothing anticipated in

        22       2006-2007.

        23                  SENATOR LIZ KRUEGER:    And

        24       $100 million in 2007-2008?

        25                  SENATOR JOHNSON:    No, $50 million


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         1       in 2007-2008.  And subsequently the total

         2       altogether would be $100 million.  Period.

         3       Finito.

         4                  SENATOR LIZ KRUEGER:    Thank you.

         5       Thank you, Mr. President.

         6                  On the bill, Mr. President.

         7                  ACTING PRESIDENT MORAHAN:

         8       Senator Krueger, on the bill.

         9                  SENATOR LIZ KRUEGER:    Oh, if I

        10       could take one second.  Thank you.

        11                  On the bill, Mr. President.

        12                  ACTING PRESIDENT MORAHAN:

        13       Senator Krueger, on the bill.

        14                  SENATOR LIZ KRUEGER:    Thank you.

        15                  There are some reasonable tax cuts

        16       and tax credits that the State of New York

        17       should all explore making in each and every

        18       fiscal year.  And there are some sections of

        19       this bill that I in fact can and do support,

        20       including the exemption of sales and use tax

        21       on clothing that we are not resuming on

        22       April 1, 2006, which follows through on a

        23       commitment we made to the people of New York

        24       over the last several years that we would

        25       finally end the sales tax at the state level


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         1       on clothing and footwear priced at $110.

         2                  There are continuations of changes

         3       here that would affect low-income housing.

         4       There's a proposal to eliminate the marriage

         5       penalty, which seems like a fair and equitable

         6       model for the people of New York State -- why

         7       should they continue to live under unequal

         8       treatment as to whether they are filing as

         9       living together, married, or not married?

        10                  There are a number of specific

        11       community-based tax credits that I think are

        12       important and valuable in this bill.  I think

        13       the elimination of the S corporation

        14       differential will mean a great deal to small

        15       businesses in the State of New York, who

        16       frequently are ignored when it comes to tax

        17       credits or tax policy, while large

        18       corporations always seem to be at the table

        19       getting their advantages, through us in the

        20       Legislature, through tax reductions and tax

        21       credits.  So the elimination of the S

        22       corporation differential seems like a long

        23       overdue change on behalf of tax fairness to

        24       smaller businesses in the state.

        25                  And yet there are so many tax


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         1       credits and rebates and cuts in this bill that

         2       I cannot justify to myself, both when we are

         3       facing outyear deficits -- and it is my

         4       understanding that these tax reductions

         5       increase in the outyears -- and when we are

         6       facing the situation where we are still

         7       expanding our cap to bond out more borrowing

         8       by the State of New York.  We are borrowing,

         9       in this year's budget, for undefinable and

        10       undefined economic development and other

        11       projects.  We continue to borrow even for

        12       operating costs, leaving our children and our

        13       grandchildren with even greater debt to face.

        14                  That the concept that we would pass

        15       a bill that would expand the STAR rebate

        16       program, which has been argued many times on

        17       the floor of this Senate as being inequitable

        18       and unfair based on where you live in the

        19       state of New York, whether or not you are a

        20       homeowner or a renter, whether or not you live

        21       in a part of the state that taxes through

        22       school taxes or a part of the state that taxes

        23       through local income taxes.

        24                  The fact that rather than

        25       evaluating where we have gone with Empire Zone


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         1       policies and the amount of tax reductions we

         2       already give to businesses in Empire Zones --

         3       this bill would expand the category of Empire

         4       Zone qualified investments without our having

         5       done our homework to ask why do we continue to

         6       have open-ended tax credits for businesses who

         7       are established in particular areas of the

         8       State of New York or who do certain types of

         9       work as opposed to other businesses -- that I

        10       find it hard to justify voting for this bill.

        11                  It's going to leave us in a larger

        12       deficit structure in the outyears.  It's going

        13       to require that we borrow more money,

        14       increasing our deficit and our debt levels.

        15       It's going to leave us with less money to

        16       address the fundamental questions of education

        17       funding, healthcare funding, public

        18       protection, public transportation funding.

        19                  No one ever wants to vote against a

        20       bill that says "I'm giving you tax cuts."  And

        21       as I've said for the record, some of the

        22       changes in this bill I think are good and

        23       justified.  But overall, I don't believe we

        24       can justify this package of tax credits and

        25       special-use exemptions.  I don't accept the


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         1       fact that we're sticking nontax revenue

         2       language into this bill and the language bill,

         3       including dealing with the Quick Draw lottery

         4       game extender.

         5                  And so I find myself in a position

         6       where I feel that I will have to vote no on

         7       this legislation and hope my colleagues will

         8       consider the dangers faced by going down this

         9       road.

        10                  Thank you, Mr. President.

        11                  ACTING PRESIDENT MORAHAN:    Thank

        12       you, Senator.  Senator Krueger will be

        13       recorded in the negative.

        14                  Any other Senator wishing to be

        15       heard?

        16                  Senator Schneiderman.

        17                  SENATOR SCHNEIDERMAN:    Just to

        18       sum up, Mr. President.

        19                  There are great things in this

        20       bill.  I note that we're eliminating the sales

        21       tax on clothing under $110, which is something

        22       that was not in the original bill, one-house

        23       bill that the Majority passed.  Senator

        24       Paterson explicitly raised it in the process

        25       of negotiations, which is, I think, a tribute


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         1       to the openness of the process in some

         2       respects.

         3                  This has the tax credit for film

         4       production, which is tremendously important

         5       for an industry that's very important to

         6       people all over the state of New York.

         7                  But I must say that the net result

         8       of this bill -- which has had an

         9       extraordinary, extraordinary impact on

        10       politics because it has united the right and

        11       the left, every fiscal monitor from the

        12       Manhattan Institute on the right, to the

        13       Fiscal Policy Institute on the left, in saying

        14       this creates a $10 billion deficit over the

        15       next two years -- we can't fund our schools,

        16       we can't fund our healthcare programs, we

        17       can't keep raising spending and cutting taxes.

        18       It's just not a balanced budget in the true,

        19       meaningful sense of the word.

        20                  And I therefore feel that I am also

        21       constrained to vote no.

        22                  Thank you, Mr. President.

        23                  ACTING PRESIDENT MORAHAN:

        24       Senator Schneiderman, thank you.  You will be

        25       recorded in the negative.


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         1                  Senator Savino.

         2                  SENATOR SAVINO:    Thank you, Mr.

         3       President.

         4                  Not to disagree with my colleagues

         5       that this is not a perfect bill and we are not

         6       addressing all the state's needs, there are

         7       some really good things in this bill.  And for

         8       myself and for Senator Marchi, I can point to

         9       one thing that is critically important, and

        10       that is the elimination of the sales tax on

        11       shoes and clothing under $110.

        12                  For those who represent border

        13       communities like Staten Island, where we lose

        14       thousands of shoppers every day who go over

        15       the bridge to New Jersey and they buy their

        16       clothes there and they buy their cigarettes

        17       there and they buy their liquor there and they

        18       buy their gas there -- our residents, our

        19       retailers in Staten Island and South Brooklyn

        20       can no longer continue.

        21                  So this bill I'm going to support

        22       for that reason.  And also for the Empire

        23       State child credit.  There are thousands of

        24       people in this state whose families will

        25       benefit, money will go back into their pockets


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         1       so they can use it to improve the lives of

         2       their families.  So I'm going to support this

         3       bill.

         4                  Thank you.

         5                  ACTING PRESIDENT MORAHAN:    Any

         6       other Senator wishing to be heard?

         7                  Debate is closed.

         8                  The Secretary will ring the bell.

         9                  Read the last section.

        10                  THE SECRETARY:    Section 2.  This

        11       act shall take effect immediately.

        12                  ACTING PRESIDENT MORAHAN:    Call

        13       the roll.

        14                  (The Secretary called the roll.)

        15                  ACTING PRESIDENT MORAHAN:

        16       Announce the results.

        17                  Senator Parker, to explain his

        18       vote.

        19                  SENATOR PARKER:    To explain my

        20       vote, Mr. President.

        21                  Actually, I rise, unfortunately, to

        22       vote against this revenue bill, for many of

        23       the same reasons that Senator Krueger and

        24       Senator Schneiderman have outlined.  So I'm

        25       not going to kind of go through the motions


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         1       again about all the issues.

         2                  But it's certainly important for us

         3       to create a real balanced budget.  Back-door

         4       borrowing is tantamount to, you know, buying

         5       groceries on a credit card.  And we are really

         6       not just hurting ourselves and our state, but

         7       we're also hurting our future generations, our

         8       young people, our children, our grandchildren.

         9                  But more than that, we right now

        10       hurt all of the children of this state by not

        11       having a revenue formula that takes into

        12       account the Campaign for Fiscal Equity

        13       lawsuit, which the courts have demanded that

        14       we take care of by tomorrow.  This budget does

        15       not in fact do that.

        16                  And so again, also on those

        17       grounds, I vote no.

        18                  ACTING PRESIDENT MORAHAN:    Thank

        19       you, Senator Parker.  You will be recorded in

        20       the negative.

        21                  Senator Sabini, to explain his

        22       vote.

        23                  SENATOR SABINI:    Thank you,

        24       Mr. President.

        25                  There are lots of good things in


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         1       this revenue bill, but there's also some

         2       things that I don't agree with.  But I like to

         3       talk about process all the time, because

         4       process really dictates the road we travel

         5       here in Albany.

         6                  And we've been here since January

         7       and doing almost unanimous calendars on

         8       seemingly noncontroversial bills.  And yet in

         9       this particular piece of legislation, there

        10       are about seven or eight really controversial,

        11       one could argue good and bad things in this,

        12       and yet they're presented to us as a package.

        13       It's a package that is fiscally out of whack.

        14                  And what we should be doing as

        15       Legislature is preparing for a day like this

        16       by taking up these issues individually, taking

        17       up brownfield tax credits, taking up movie

        18       production tax credits, taking up the sales

        19       tax elimination on clothing and the childcare

        20       credit.

        21                  And I understand that the process

        22       here is that you sort of throw everything in

        23       and force people to vote this way.  And that's

        24       good for the two majorities in the two houses.

        25       But I don't think it's good for the people of


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         1       the State of New York.  I think, as Senator

         2       Parker said, we are borrowing today to stick

         3       the bill on folks tomorrow.  I don't think

         4       that's particularly right.

         5                  And while there are many things in

         6       this bill I agree with, I think the process is

         7       wrong.  I'm glad we're getting it done on

         8       time, but that doesn't make it any righter.

         9                  I'm going to be voting no.

        10                  ACTING PRESIDENT MORAHAN:    Thank

        11       you, Senator Sabini.  You will be recorded as

        12       voting in the negative.

        13                  Announce the results.

        14                  THE SECRETARY:    Those recorded in

        15       the negative on Calendar Number 502 are

        16       Senators L. Krueger, Parker, Sabini, and

        17       Schneiderman.

        18                  Absent from voting:  Senator

        19       Connor.

        20                  Ayes, 56.  Nays, 4.

        21                  ACTING PRESIDENT MORAHAN:    The

        22       bill is passed.

        23                  Senator Bruno.

        24                  SENATOR BRUNO:    Mr. President,

        25       can we at this time take up Calendar Number


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         1       496.

         2                  ACTING PRESIDENT MORAHAN:    The

         3       Secretary will read.

         4                  THE SECRETARY:    Calendar Number

         5       496, substituted earlier today, Assembly

         6       Budget Bill, Assembly Print Number 9554C, an

         7       act making appropriations for the support of

         8       government:  Health and Mental Hygiene Budget.

         9                  SENATOR SCHNEIDERMAN:

        10       Explanation.

        11                  ACTING PRESIDENT MORAHAN:

        12       Senator Johnson, an explanation has been

        13       requested.

        14                  SENATOR JOHNSON:    This is the

        15       budget bill for health and mental hygiene.  It

        16       has, well, just everything you'd like to have

        17       in here about mental hygiene.

        18                  And I think the advocates have been

        19       here and they have done their work well.  And

        20       we've added a lot of new things in here, for

        21       children, drug and alcohol programs, creative

        22       arts programs, parenting programs, substance

        23       abuse programs.  I really can't -- even

        24       increased the personal needs allowances for

        25       people in mental hygiene.


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         1                  And that's about it.  And if you

         2       want to read the rest, I have it here.

         3                  ACTING PRESIDENT MORAHAN:

         4       Senator Schneiderman.

         5                  SENATOR SCHNEIDERMAN:    Thank you,

         6       Mr. President.

         7                  I rise in support of this bill.

         8       And it is a tribute to the process we've just

         9       gone through that the Legislature has restored

        10       the devastating cuts proposed in the Executive

        11       Budget to our healthcare system.  As we are

        12       arguing in the case of education, you don't

        13       grew the economy of this state, you don't

        14       provide for our future in the long term if

        15       people don't have healthcare and people don't

        16       have access to a good public education in

        17       every part of the state.

        18                  This bill takes a significant step

        19       on the healthcare front.  I will be voting in

        20       the affirmative.

        21                  Thank you, Mr. President.

        22                  ACTING PRESIDENT MORAHAN:    Thank

        23       you, Senator.

        24                  Any other Senator wishing to be

        25       heard?


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         1                  Senator Montgomery.

         2                  SENATOR MONTGOMERY:    Yes, just

         3       briefly, Mr. President.

         4                  I want to commend the legislative

         5       leadership for making sure that we do have

         6       funding in this budget.  The Legislature did

         7       put back funding that was missing from the

         8       Governor's budget for school-based health

         9       clinics, and that's very good.  I'm very happy

        10       about that.

        11                  However, I was hopeful that we

        12       would invest in school-based health clinics

        13       much to a much larger extent because, as we

        14       know, there are many issues facing young

        15       people and we in the State of New York need to

        16       have an obligation, I think, to invest in

        17       making sure they have the best quality of life

        18       that we can afford.

        19                  So I would have hoped for a much

        20       larger increase in school-based health clinic

        21       funding.  But I'm indeed happy that we did not

        22       lose and that in fact we did increase that

        23       funding.

        24                  So thank you, I'll be voting yes.

        25                  ACTING PRESIDENT MORAHAN:


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         1       Senator Malcolm Smith.

         2                  SENATOR MALCOLM SMITH:    Thank

         3       you, Mr. President.  I too also will be

         4       supporting this bill.

         5                  But I do want to underscore what

         6       Senator Montgomery said about the school-based

         7       healthcare facilities.  That is a critical

         8       area, especially for many of the schools in

         9       the City of New York.  I am hopeful that we

        10       will next year put more money into that

        11       particular area.

        12                  But in addition, Mr. President, the

        13       fact that we have unresolved the area around

        14       the inspector general for Medicaid, which is

        15       so critical to us.  And we're talking about

        16       the need for revenue; clearly, there's an

        17       area, with Medicaid fraud somewhere

        18       approaching $44 million.  We need to make sure

        19       that issue is settled.  I'm hopeful that we

        20       will do that in the remainder of our session

        21       before June.

        22                  I will be supporting this bill, but

        23       I did want to underscore the concern of

        24       Senator Montgomery, which I do agree with in

        25       terms of the school-based healthcare


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         1       facilities.

         2                  Thank you.

         3                  ACTING PRESIDENT MORAHAN:

         4       Senator Oppenheimer.

         5                  SENATOR OPPENHEIMER:    Thank you.

         6       We seem to be hopping on Velmanette

         7       Montgomery's initiative here.

         8                  But if we are talking about ways to

         9       control our spending for medical needs in our

        10       state, we really have to look much, much

        11       closer at school-based health clinics.  We are

        12       putting in money for the Big Four school

        13       districts in this bill, but there are so many

        14       areas in our state where there is high need

        15       and poor medical attention.

        16                  We are trying to focus now, taking

        17       a new direction.  We're looking at preventive

        18       medicine.  What better way than having it

        19       right in the school?  We talk about the huge

        20       incidence now of diabetes, and we talk about

        21       the inactivity of our children.  What better

        22       way than to have the healthcare provided for

        23       them -- along with, I would add, very

        24       important to me, a nutrition component, which

        25       would be taught in every elementary school,


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         1       middle school, and high school.  Because until

         2       our students understand the importance of

         3       nutrition, they are not going to get a handle

         4       on the growing problem of obesity.

         5                  So we really have to take a close

         6       look at this.  Because one of the problems we

         7       have in delivering healthcare, particularly to

         8       children, is that the parents have to take off

         9       time from their jobs to bring the student to

        10       whatever doctor is their family doctor.  Here,

        11       the healthcare is right in the school.  All

        12       they have to do is walk down the corridor.

        13                  So I think it's just very

        14       economically sound for us to put a much bigger

        15       investment in child-based -- in school-based

        16       health clinics.

        17                  Thank you.

        18                  ACTING PRESIDENT MORAHAN:    Thank

        19       you, Senator Oppenheimer.

        20                  Senator Libous.

        21                  SENATOR LIBOUS:    Thank you,

        22       Mr. President.  I guess I'm explaining my

        23       vote -- or on the bill.

        24                  This is a great budget, especially

        25       as it pertains to mental health.  And there


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         1       are a lot of good things in here.  And I want

         2       to commend the chairman, Senator Morahan, on

         3       his fine work.

         4                  But there is something missing.

         5       And what's missing is the appropriation for a

         6       facility to confine pedophiles under a civil

         7       commitment law that is still being worked on.

         8       And it's unfortunate, because this house had

         9       made the commitment to put the appropriation

        10       in the bill, but the Assembly refused to

        11       because the Assembly refuses to agree on a

        12       civil commitment law.

        13                  We can't go much longer without

        14       putting a law on the books.  We are putting in

        15       jeopardy women and children.  This house,

        16       under Senator Volker's leadership, Senator

        17       Bruno's leadership, has worked very, very hard

        18       to try to get the Assembly to come to the

        19       table.

        20                  And I'm hoping, Mr. President, that

        21       after the budget deliberations are over, that

        22       they will come to their senses and understand

        23       the importance of a civil commitment law in

        24       this state so that dangerous pedophiles are

        25       taken off of our streets and put in a facility


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         1       that is secure so that our women and our

         2       children are safe.  That's what's missing

         3       here.

         4                  So I would hope that once this bill

         5       is passed -- and it's a great piece of

         6       legislation -- that we will be able to get the

         7       Assembly to come to their senses before we

         8       adjourn this year and make a commitment on

         9       civil commitment.

        10                  ACTING PRESIDENT MORAHAN:    Thank

        11       you, Senator Libous.

        12                  Senator Ada Smith.

        13                  SENATOR ADA SMITH:    Thank you,

        14       Mr. President.

        15                  I too join with my colleague

        16       Senator Montgomery in praising the addition to

        17       school-based health.  That is something that

        18       this side of the aisle has advocated for for

        19       the last 18 years that I've been here.

        20                  And I'm pleased to see that in the

        21       mental health there are initiatives that will

        22       benefit communities such as mine.

        23                  But I would be neglectful if I did

        24       not add that until we have what we once had in

        25       the '60s, health care in the housing


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         1       developments where many of us represent, we

         2       will not have complete healthcare.  The

         3       healthcare clinics that were in these housing

         4       projects were accessible and of a low fee for

         5       residents or no fee.  And when we can return

         6       to that, we will have a much better healthcare

         7       system in the State of New York.

         8                  ACTING PRESIDENT MORAHAN:    Thank

         9       you, Senator.

        10                  Senator Andrews.

        11                  SENATOR ANDREWS:    Thank you,

        12       Mr. President.

        13                  I would like to commend this body

        14       for what they have done as relates to

        15       healthcare.  But like my colleague Senator

        16       Montgomery and others, I'd like to point out

        17       some inequities in some of the things that we

        18       are doing today.

        19                  First, as stated earlier,

        20       school-based healthcare is very important,

        21       especially for a district where I come from,

        22       where in the last four years two hospitals

        23       have closed.  And those two hospitals, in

        24       closing, they have also eliminated the OB-GYN

        25       services related to those hospitals.  And to


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         1       another hospital, the OB-GYN services have

         2       been closed.

         3                  And with that in mind, it raises a

         4       question to me why have we not increased the

         5       WIC program.  Because as we all know,

         6       preventive healthcare is one of the best ways

         7       to deal with healthcare.  And infant mortality

         8       is increasing in my district.  And with the

         9       closing of the OB-GYN at one hospital and then

        10       the closing of the hospital that also had

        11       OB-GYN services, that has created a very

        12       difficult health disparity in my district.

        13                  Also with that in mind, it would

        14       seem to me that we want to deal with

        15       community-based health programs and expand

        16       that, because of the fact that we're losing

        17       hospital beds and losing hospitals.

        18                  And in closing, another concern

        19       that has been brought up to me by my

        20       constituents is the concern of mental health

        21       for the homeless and the fact that this state

        22       has not increased the mental health housing

        23       for the homeless in this state.

        24                  So even though these things have

        25       not been addressed properly, I still will be


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         1       voting yes on this bill.

         2                  Thank you.

         3                  ACTING PRESIDENT MORAHAN:    Thank

         4       you, Senator.

         5                  Debate is closed.

         6                  Read the last section.

         7                  THE SECRETARY:    Section 2.  This

         8       act shall take effect immediately.

         9                  ACTING PRESIDENT MORAHAN:    Call

        10       the roll.

        11                  (The Secretary called the roll.)

        12                  ACTING PRESIDENT MORAHAN:

        13       Senator Hannon, to explain his vote.

        14                  SENATOR HANNON:    Thank you,

        15       Mr. President.

        16                  I wanted to address the fact that

        17       what the Legislature has done with this health

        18       budget I think is monumental.  We have

        19       addressed serious issues confronting the

        20       health of 18 million New Yorkers.

        21                  We have addressed the stability of

        22       the nursing home industry by taking on the

        23       rebasing that was initiated in this house last

        24       year when we passed a one-house bill.

        25                  We have addressed the problem


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         1       created by the federal government with the

         2       pharmaceutical drug program by extending the

         3       wraparound for the people who used to get

         4       drugs from Medicaid and now are dependent on

         5       Medicare, a major initiative that we had to

         6       do.

         7                  We have addressed the hospital

         8       industry by not only restoring the cuts but by

         9       taking a good look at the emergency room

        10       rates, which, under the recent federal action

        11       in their Deficit Reduction Act, would have had

        12       an adverse effect if we had not acted to

        13       increase the rates -- and an adverse effect

        14       more so, I would submit, than all of the

        15       other, smaller delivery systems such as

        16       school-based health clinics.

        17                  In other words, what we have done

        18       is addressed the major needs of New Yorkers.

        19       And along the way, we were able to reach

        20       agreement with the other house and with

        21       consumer advocates and with the hospital

        22       industry in regard to how we're going to

        23       handle charity care for people who don't have

        24       insurance or are not otherwise covered, in

        25       terms of notifying them about the fact that


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         1       it's available, about the procedures to handle

         2       it, about the eligibility, and finally as a

         3       reporting system to the state.  And we've done

         4       that on a uniform basis so that it can be the

         5       same wherever a patient might be in the state

         6       and know what to ask for.

         7                  So I want to commend the leadership

         8       for this.  This has been a very arduous task,

         9       and I think it has been a very successful one.

        10                  Thank you.

        11                  ACTING PRESIDENT MORAHAN:    Thank

        12       you, Senator.

        13                  Senator Parker, to explain his

        14       vote.

        15                  SENATOR PARKER:    Thank you,

        16       Mr. President.

        17                  First, let me congratulate this

        18       body on the great work that was done on this

        19       part of the budget as relates to health and

        20       mental hygiene.

        21                  But I want add my voice to the

        22       chorus led by Senator Montgomery in regards to

        23       school-based health clinics.  They're of

        24       critical importance in my district and across

        25       the city, and we really need to take up the


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         1       mantle of leadership on this and do more as

         2       relates to our young people and healthcare.

         3                  However, this part of the budget

         4       being part of the total part of the budget

         5       still does not deal with the issue of the

         6       Campaign for Fiscal Equity lawsuit.  We are

         7       still about to be entirely in contempt of a

         8       court order that demands us to put more money

         9       in in terms of the operational aid and to

        10       change the fundamental formula by which school

        11       finances are in fact decided in the city.

        12                  And so, like on previous bills,

        13       despite the good work that I think is done by

        14       this bill, I'm forced to vote no.

        15                  ACTING PRESIDENT MORAHAN:

        16       Senator Diaz, to explain your vote.

        17                  SENATOR DIAZ:    Thank you,

        18       Mr. President.

        19                  As ranking Minority member in

        20       Mental Health, Mental Retardation and

        21       Developmental Disabilities, I would like to

        22       express my appreciation to the chairman of the

        23       committee, Senator Morahan, and to all the

        24       members of the committee.

        25                  Because even though, ladies and


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         1       gentlemen, we are not getting everything that

         2       we asked for and even though we are going to

         3       go back to our different communities and there

         4       are going to be some groups and some sections

         5       that will be maybe dissatisfied because we

         6       cannot achieve everything, but the work, the

         7       tenacious work, the commitment of all the

         8       members in the Mental Health, Mental

         9       Retardation and Developmental Disabilities,

        10       the chairman of the committee, and everybody

        11       that worked on it, made me proud to be a

        12       member of this committee.

        13                  So I thank all of you members,

        14       again, the chairman and the staff of the

        15       committee, because the work done, I repeat,

        16       was something very difficult, very deep.  And

        17       as the ranking Minority member of the

        18       committee, I'm proud to have been part of that

        19       committee.  And again, I thank all of you.

        20                  And those of you like me that might

        21       be going back to our communities to face some

        22       groups that will be dissatisfied, hey, I think

        23       that we did a good job, I think that we

        24       achieved something great in the mental health

        25       budget, and the majority of everything that we


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         1       wanted to do are there.

         2                  So, Mr. President, thank you.  And

         3       I'm voting yes.

         4                  ACTING PRESIDENT MORAHAN:    Thank

         5       you, Senator Diaz.

         6                  Senator Marcellino.

         7                  SENATOR MARCELLINO:    Yes,

         8       Mr. President.  I also wish to stand up and

         9       say congratulations to the people who did the

        10       negotiations for this particular bill, led by

        11       Senator Hannon on our side.  This was a

        12       fantastic budget.

        13                  In particular, I want to thank for

        14       the restoration and the increase in the aid to

        15       early diagnosis, prevention and control of

        16       diabetes.  There's over a million dollars in

        17       this particular budget bill for that program.

        18       And that is one of the leading causes of

        19       health concerns to young people, our children.

        20       Diabetes is on the rise.  It's one of the

        21       fastest-increasing health problems we have in

        22       the country.  And this will go a long way

        23       towards helping us deal with that problem in

        24       this state.

        25                  And I wish to thank and vote aye.


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         1                  ACTING PRESIDENT MORAHAN:    Thank

         2       you, Senator.

         3                  Announce the results.

         4                  THE SECRETARY:    Ayes, 60.  Nays,

         5       1.  Senator Parker recorded in the negative.

         6                  ACTING PRESIDENT MORAHAN:    The

         7       bill is passed.

         8                  Senator Skelos.

         9                  SENATOR SKELOS:    Mr. President,

        10       would you please call up Calendar Number 499.

        11                  ACTING PRESIDENT MORAHAN:    The

        12       Secretary will read.

        13                  THE SECRETARY:    Calendar Number

        14       499, Senate Budget Bill, Senate Print 6457C,

        15       an act to amend the Social Services Law and

        16       others.

        17                  SENATOR SCHNEIDERMAN:

        18       Explanation.

        19                  ACTING PRESIDENT MORAHAN:

        20       Senator Johnson, an explanation has been

        21       requested.

        22                  SENATOR JOHNSON:    Yes,

        23       Mr. Chairman.  This is the Article VII bill

        24       which implements the mental health budget

        25       which we just passed for the 2006-2007 fiscal


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         1       year.

         2                  ACTING PRESIDENT MORAHAN:    Any

         3       other Senator wishing to be heard?

         4                  Debate is closed.  Ring the bells.

         5                  Read the last section.

         6                  THE SECRETARY:    Section 97.  This

         7       act shall take effect immediately.

         8                  ACTING PRESIDENT MORAHAN:    Call

         9       the roll.

        10                  (The Secretary called the roll.)

        11                  ACTING PRESIDENT MORAHAN:

        12       Senator Parker, to explain his vote.

        13                  SENATOR PARKER:    Thank you very

        14       much, Mr. President.

        15                  This being the companion language

        16       bill to the previous bill, again I put forward

        17       my objections regarding CFE and the fact that

        18       this budget does in fact not deal with the

        19       court order, does not in fact provide for

        20       high-needs districts anywhere around the

        21       state, but particularly in New York City,

        22       where the court has ordered to us deal with

        23       that.

        24                  So again, I vote no.

        25                  ACTING PRESIDENT MORAHAN:


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         1       Senator Parker will be recorded in the

         2       negative.

         3                  Announce the results.

         4                  THE SECRETARY:    Ayes, 60.  Nays,

         5       1.  Senator Parker recorded in the negative.

         6                  ACTING PRESIDENT MORAHAN:    The

         7       bill is passed.

         8                  Senator Skelos.

         9                  SENATOR SKELOS:    Mr. President,

        10       would you please call up Calendar Number 623.

        11                  ACTING PRESIDENT MORAHAN:    The

        12       Secretary will read.

        13                  THE SECRETARY:    Calendar Number

        14       623, by the Senate Committee on Rules, Senate

        15       Print Number 7166, an act in relation to

        16       providing for the administration of certain

        17       funds and accounts.

        18                  SENATOR SCHNEIDERMAN:

        19       Explanation.

        20                  ACTING PRESIDENT MORAHAN:

        21       Senator Johnson, an explanation has been

        22       requested.

        23                  SENATOR JOHNSON:    This is a bill

        24       which is sort of a cleanup bill.  It allows

        25       for the administration of various funds and


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         1       accounts of the state in order to implement

         2       the budget.  It includes transfers between

         3       various funds of the state and bonding

         4       authority for projects authorized in the

         5       state's five-year capital bill.

         6                  It essentially is a wrap-up bill of

         7       all the other bills that need a little

         8       wrapping up.

         9                  ACTING PRESIDENT MORAHAN:    Any

        10       other Senator wishing to be heard?

        11                  Debate is closed.

        12                  Are you going to be explaining your

        13       vote, Senator?

        14                  SENATOR MALCOLM SMITH:    Yes, I

        15       just want to explain my vote, Mr. President.

        16                  ACTING PRESIDENT MORAHAN:    Read

        17       the last section.

        18                  THE SECRETARY:    Section 39.  This

        19       act shall take effect immediately.

        20                  ACTING PRESIDENT MORAHAN:    Call

        21       the roll.

        22                  (The Secretary called the roll.)

        23                  ACTING PRESIDENT MORAHAN:

        24       Senator Malcolm Smith, to explain his vote.

        25                  SENATOR MALCOLM SMITH:    Yes,


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         1       Mr. President.  I wanted to thank the

         2       Legislature in particular.

         3                  As you know, there's been some

         4       great discussion about New York State and this

         5       portion of the country potentially being the

         6       next portion of the country that has a major

         7       disaster when it comes to weather.

         8                  The area that I represent in

         9       Queens, which is the Far Rockaway area, is an

        10       area that has a peninsula.  That at this point

        11       we are taking a lot of time to go over

        12       practices and procedures on how actually to

        13       move people off the peninsula.

        14                  I would just ask my colleagues to

        15       be mindful of the fact that this is something

        16       that we all need to consider.  I appreciate

        17       the Legislature in their effort in making sure

        18       that there are some resources as we do this

        19       entire cleanup piece.  That piece of

        20       $5.7 million is very important to an area in

        21       Queens, which is the Rockaway area, as we

        22       prepare for potential disasters that may

        23       happen in that part of the state.

        24                  Thank you.

        25                  ACTING PRESIDENT MORAHAN:    Thank


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         1       you, Senator.

         2                  Senator Parker, to explain his

         3       vote.

         4                  SENATOR PARKER:    Thank you very

         5       much, Mr. President.

         6                  Again, I rise to object to even the

         7       fiscal plan.  The state financial plan in its

         8       totality again just refuses to deal with the

         9       issue of the Campaign for Fiscal Equity

        10       lawsuit.  We have not met our legislative

        11       obligation.  We have not met our fiscal

        12       obligation.  And we have -- as we stand here

        13       and cast these votes for some things that are

        14       very, very good, we've failed the 1.1 million

        15       schoolchildren today who are in our classrooms

        16       in New York City with inadequate resources.

        17                  So again, I'm forced to vote no.

        18                  ACTING PRESIDENT MORAHAN:

        19       Senator Parker will be recorded in the

        20       negative.

        21                  Senator Krueger, to explain her

        22       vote.

        23                  SENATOR LIZ KRUEGER:    Thank you,

        24       Mr. President.

        25                  I too have decided I will vote no


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         1       on this bill, because it expands debt caps for

         2       the State of New York for various public

         3       authorities, and despite the efforts of my

         4       conference to urge us to address the problems

         5       of overwhelming debt for the State of

         6       New York, the continuing growth of debt, and

         7       no evaluation done by this Legislature this

         8       year to explore any of the proposals that have

         9       been made to put limits on debt, to put limits

        10       on how much we continue to borrow and for what

        11       purposes.

        12                  I am quite sure there are many

        13       items individually in this bill that I can and

        14       will support, and of course I will not change

        15       the outcome of the vote today.  But given the

        16       fact that we continue to refuse to deal with

        17       the ridiculous level of debt that this state

        18       continues to leave to the next generation and

        19       the generation after without being prepared to

        20       evaluate how we should be changing our

        21       approach to borrowing and debt, I find myself

        22       unable to vote for a bill that would yet again

        23       raise the cap on debt, allowing us to continue

        24       our bad practices of more and more borrowing

        25       without asking the hard questions.


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         1                  I'll be voting no.  Thank you,

         2       Mr. President.

         3                  ACTING PRESIDENT MORAHAN:

         4       Senator Krueger will be recorded in the

         5       negative.

         6                  Announce the results.

         7                  THE SECRETARY:    Those recorded in

         8       the negative on Calendar Number 623 are

         9       Senators L. Krueger, Parker, and Sabini.

        10                  Ayes, 58.  Nays, 3.

        11                  ACTING PRESIDENT MORAHAN:    The

        12       bill is passed.

        13                  Senator Skelos.

        14                  SENATOR SKELOS:    Mr. President,

        15       would you please call up Calendar Number 500.

        16                  ACTING PRESIDENT MORAHAN:    The

        17       Secretary will read.

        18                  THE SECRETARY:    Calendar Number

        19       500, Senate Budget Bill, Senate Print Number

        20       6458C, an act to amend the Education Law.

        21                  SENATOR SCHNEIDERMAN:

        22       Explanation.

        23                  ACTING PRESIDENT MORAHAN:

        24       Senator Johnson, an explanation has been

        25       requested.


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         1                  SENATOR JOHNSON:    Calendar Number

         2       500 is the Article VII implementing bill for

         3       the appropriations for education.

         4                  ACTING PRESIDENT MORAHAN:

         5       Senator Oppenheimer.

         6                  SENATOR OPPENHEIMER:    I'm rising

         7       because I think there's an amendment at the

         8       desk, and I'd like to waive its reading and

         9       explain it.

        10                  ACTING PRESIDENT MORAHAN:    The

        11       amendment is waived, and you will be heard on

        12       the amendment.

        13                  SENATOR OPPENHEIMER:    Thank you.

        14                  This is a budget amendment that

        15       deals with CFE, which is a very important

        16       issue to not only myself but some of my

        17       colleagues.  Indeed, some of us were on the

        18       original amicus brief that was filed 13 years

        19       ago, so we've been with this for quite a while

        20       now.  And we went on it because there were

        21       decades of underfunding and neglect that left

        22       many parts of our education system in a state

        23       of crisis back then.

        24                  And then we had the first decision

        25       from the courts five years ago, and then


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         1       another decision after that was appealed, and

         2       then another decision after that was appealed.

         3       And so here we are now with a decision just

         4       about a week ago.  And our continued failure,

         5       in light of the Appellate Division's ruling,

         6       really leaves the entire Legislature in

         7       contempt of court.

         8                  And I don't think it's responsible

         9       for us to do more appeals and --

        10                  SENATOR SALAND:    Mr. President,

        11       could I ask, please, that there be some order

        12       in the chamber.  I'm having a difficult time

        13       hearing Senator Oppenheimer, and I'd like to

        14       hear her.

        15                  Thank you very much.

        16                  ACTING PRESIDENT MORAHAN:    Can we

        17       have a little order in the chamber, please.

        18       Senator Oppenheimer has the floor.

        19                  SENATOR OPPENHEIMER:    So I think

        20       it would be irresponsible to keep waiting for

        21       more court action.

        22                  And anyway, the court action

        23       ignores the state, it just deals with New York

        24       City.  And I think our problems are much

        25       bigger than just New York City.  And I think


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         1       we all feel that continued failure is

         2       jeopardizing New York's economic future, as

         3       more and more students are graduating without

         4       the skills they're going to need for our

         5       high-tech economy, and they will be more and

         6       more dependent on government support rather

         7       than building them up so that they can get

         8       higher-wage jobs.

         9                  We know the statistics.  We know

        10       that 71 percent of our high school students

        11       are graduating after five years.  That means

        12       there's 29 percent that aren't.  And in

        13       New York City we know the statistic is worse,

        14       which is 53 percent of our students are

        15       graduating after five years.  And that leaves

        16       almost half of our students not graduating.

        17                  So we don't seem to have much

        18       choice.  We have to make a move now.  And I

        19       think that the responsible solution applies to

        20       the standards of the CFE decision, and we

        21       believe it should be for every district, not

        22       just New York.

        23                  We happen to have, it is true, the

        24       highest average per-pupil spending in the

        25       United States.  However, as we know, our


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         1       poorest districts get much, much less than our

         2       richest districts.  And I believe we have the

         3       largest gap between our richest and our

         4       poorest districts of any state in our country.

         5       Maybe we're second or third, but we're right

         6       up there near the top.

         7                  So what we are proposing, we Senate

         8       Democrats -- and I should mention, before I

         9       get to that, that for many years we have been

        10       advocating for a good capital program for

        11       New York City.  And I want to thank Senator

        12       Bruno, and you folks on that side and this

        13       side, for coming to a recent solution to that

        14       problem.  And I just wanted to make sure that

        15       that was understood.  I do appreciate what you

        16       have come to do for something that we really

        17       have advocated for for so many years.

        18                  But we do need a true statewide

        19       solution, and we need to provide those funds

        20       to the high-needs urban, suburban and rural

        21       districts in every corner of this state.  And

        22       those of us that come from suburban areas know

        23       that even though we have many high-wealth

        24       districts, school districts, within our

        25       counties, we have some really deplorably poor


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         1       districts within our county.  And that's

         2       pretty new advent, within the last decade or

         3       two that we've seen this.  But these are

         4       things that we must address.

         5                  So we think what is required, we

         6       Senate Democrats, is a multiyear plan and a

         7       change in the distribution formula to reflect

         8       the needs of some of these school districts.

         9       So we think that we must revamp the state aid

        10       formula; establish a base level of aid per

        11       student; adjust for the number of poor

        12       students; take into account tax effort; take

        13       into account sparsity for some of our upstate,

        14       less dense communities; and also take into

        15       account regional costs, which particularly hit

        16       those of us in suburbia.

        17                  Then we have to fund this new

        18       formula, which is proposed in this amendment,

        19       and we have to fund it appropriately.  Only

        20       then, I think, can we close this gap that I

        21       mentioned earlier between our richest and our

        22       poorest school districts.

        23                  So the amendment before us in the

        24       current bill -- well, as I have said, you have

        25       taken care of very nicely the problems that


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         1       the CFE court decision put before us as far as

         2       the capital needs.  So I'll only look at the

         3       need to increase our operating aid by

         4       $1.1 billion.

         5                  And also, because this does not

         6       fulfill the CFE lawsuit requirement, because

         7       it only adds in New York City, $400 million --

         8       which is a substantial amount of money.  But

         9       to meet the CFE requirement -- and indeed, it

        10       has been said by several groups that just

        11       keeping up with inflation and keeping things

        12       as it is in New York City would require

        13       $1.1 billion this year.  And that's from the

        14       Educational Conference Board.  They say we

        15       would need to boost it 1.076 billion just to

        16       stay even in New York City.

        17                  So our proposal -- I'll try and do

        18       this briefly -- it would fulfill the CFE case,

        19       it would provide a $1.15 billion increase in

        20       operating aid for New York City the coming

        21       year, it would provide $580 million for the

        22       Big Four school districts in operating aid --

        23       actually, our plan goes over four years, but

        24       the Big Four school districts we feel are in

        25       such dire shape that we have to put it in in


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         1       this first year.

         2                  This dramatically helps increase

         3       funding for our high-needs rural, suburban,

         4       and small city school districts.  And for

         5       those of us in districts of higher wealth,

         6       we're not going to do the Robin Hood that was

         7       so feared by so many.  We are putting in this

         8       2 percent increase every year for each of

         9       these school districts of higher wealth.

        10                  It places more of the increase in

        11       school funding with the state.  And that, of

        12       course, helps with the property tax burden

        13       that we all are -- well, everyone is

        14       complaining about, because it is burdensome.

        15       And it just more fairly distributes the school

        16       funding costs.

        17                  For example, in the Big Four city

        18       school districts, we would cover -- under this

        19       proposal, 78 percent of their costs would be

        20       covered by the state.  In the high-needs urban

        21       suburban districts, about 70 percent would be

        22       covered by the state.  In the high-needs rural

        23       districts, we're planning on 74 to 75 percent

        24       would be covered by the state.  And in

        25       New York City, we would be covering less.  It


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         1       would be 55 percent of the costs, and the city

         2       would be providing the rest.

         3                  So this is what we put before you.

         4       We think it is reasonable.  And we hope we

         5       hear from you soon.

         6                  Thank you.

         7                  ACTING PRESIDENT MORAHAN:

         8       Senator Stavisky.

         9                  SENATOR STAVISKY:    Mr. President,

        10       on the amendment.

        11                  ACTING PRESIDENT MORAHAN:    On the

        12       amendment.

        13                  SENATOR STAVISKY:    As Senator

        14       Oppenheimer indicated, the court case came

        15       down about five years ago, but this has been a

        16       problem in New York State as far as back as I

        17       can remember.  We had the famous Fleischman

        18       Commission, we had the Levittown court case,

        19       we had challenges in the federal courts under

        20       the equal protection provisions of the federal

        21       Constitution.  But it wasn't until a lawsuit

        22       was brought in State Supreme Court that we've

        23       had the possibility of some relief.

        24                  What's happening is that the -- the

        25       famous word is "the formula."  The problem is


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         1       very few people understand the formula.

         2       There's an excellent story in today's New York

         3       Times that discusses this issue of the

         4       formula.  But there really is no formula.

         5       It's a series of calculations that are made

         6       when the decision -- when the determination is

         7       made as to what monies are going where.  In

         8       other words, they're making the allocation --

         9       they're making the result fit the allocation.

        10       It's like making the crime fit the punishment

        11       rather than the reverse.

        12                  It seems to me that a child in

        13       Buffalo should have the same education as a

        14       child in Montauk and the child in Plattsburgh

        15       as in Staten Island, and that where a child is

        16       born should not determine the kind of

        17       education, the quality of the education that a

        18       child receives.

        19                  In other words, the allocation of

        20       funds should be determined upon -- should be

        21       determined by need, not geography.  It should

        22       be statewide in nature.  There should be

        23       regional cost factors, because it really does

        24       cost more to educate a child on Long Island

        25       than it did does in the North Country.  And


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         1       yet that child is -- both children are

         2       entitled to a sound, basic education.  And

         3       that does not mean an 8th grade education.  It

         4       means a sound, basic education that prepares

         5       the child to enter society.

         6                  The allocation should be simple, so

         7       that more than six people can understand it.

         8       The method of distributing education should

         9       not have such reliance on the property tax,

        10       because some of our suburban communities are

        11       being taxed unfairly.  The reliance on the

        12       property tax, I think, is a serious mistake.

        13                  I support the amendment.  I think

        14       that this is an excellent, excellent step

        15       because it helps everyone in this chamber,

        16       unrelated to political considerations.  This

        17       is a formula that will help everybody in this

        18       chamber, and I urge its adoption.

        19                  Thank you, Mr. President.

        20                  ACTING PRESIDENT MORAHAN:

        21       Senator Breslin.

        22                  SENATOR BRESLIN:    Thank you,

        23       Mr. President.

        24                  I applaud Senator Oppenheimer for

        25       bringing this amendment to this body.  This


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         1       amendment is not about upstate versus

         2       downstate.  It's not about rich versus poor.

         3       It's not about black versus white.  It's about

         4       what's right versus what's wrong.

         5                  As a lawyer, we're taught to obey

         6       the Constitution.  And 13 years ago a lawsuit

         7       which we now refer to as CFE was brought to

         8       the courts of the State of New York.  Thirteen

         9       years later, with a Court of Appeals mandate

        10       and direction, this body is still not obeying

        11       the law.

        12                  When that lawsuit was commenced,

        13       over half the members of this Senate weren't

        14       here.  A whole generation of children have

        15       been bypassed, a whole generation.  Our

        16       Constitution requires that our children be

        17       given a basic education.  The Court of Appeals

        18       determined that that did not exist in the City

        19       of New York.  And it doesn't exist in Buffalo,

        20       it doesn't exist in Rochester, it doesn't

        21       exist in Syracuse, it doesn't exist in

        22       Yonkers, and we turn our back.

        23                  This amendment changes all of that.

        24       It outlines a formula that would allow those

        25       cities -- and it goes beyond the Big Four.  It


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         1       touches cities like Albany, Watervliet, and

         2       Cohoes, in my district.  It's the equalizer.

         3       It's recognizing a wrong and providing a

         4       right.

         5                  But it's the 800-pound gorilla.

         6       This body has not addressed it.  This

         7       Legislature has not addressed it.  And unless

         8       and until we take our responsibility, change

         9       the way we do things for our children, we

        10       should hold our heads in shame.

        11                  This amendment covers it all.  I

        12       urge every member, both on the Republican side

        13       and I know my brothers and sister on the

        14       Democratic side are with this -- this finally

        15       tackles equality.  It finally addresses the

        16       whole educational system.  Each of us have

        17       districts in upstate that are very wealthy,

        18       that do more than more than a good job of

        19       educating our children.  And sometimes when

        20       you go into those schools you're embarrassed

        21       because you've been to the schools that don't

        22       have that opportunity, where those children

        23       will not have an opportunity to succeed in

        24       life.  And again, unless and until we address

        25       that need, we hold our heads in shame.


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         1                  I urge everyone in this body to

         2       consider this amendment and vote in the

         3       affirmative.

         4                  Thank you, Mr. President.

         5                  ACTING PRESIDENT MORAHAN:    Thank

         6       you, Senator Breslin.

         7                  Senator Saland.

         8                  SENATOR SALAND:    Thank you,

         9       Mr. President.

        10                  ACTING PRESIDENT MORAHAN:    On the

        11       amendment?

        12                  SENATOR SALAND:    On the

        13       amendment, Mr. President.

        14                  I certainly listened with great

        15       interest to all of those who rose in favor of

        16       the amendment.  I must confess, between the

        17       noise in the chamber and the softness of

        18       Senator Oppenheimer's voice, I couldn't quite

        19       hear everything she had to say.

        20                  But the concluding comments by

        21       Senator Breslin, he was using the term "body"

        22       and "Legislature" interchangeably.  I'm a

        23       little troubled by that.  This house has time

        24       and again expressed its willingness, its

        25       eagerness to negotiate a statewide high-needs


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         1       solution to CFE.  We have met with, until most

         2       recently, utter indifference in the other

         3       house.

         4                  As recently as this negotiated

         5       budget, we attempted to negotiate a statewide

         6       operating aid solution for multiple years, and

         7       our friends in the Assembly did not want to go

         8       there.  So either they wanted to keep the

         9       issue or they preferred to have the issue, to

        10       the extent it would be negotiated to closure,

        11       resolved under another governor.  But this

        12       house was ready, willing, able and eager to

        13       negotiate a multiyear solution.

        14                  CFE's solution is no longer in the

        15       courts, if you take the Appellate Division

        16       decision.  Because what the court did, very

        17       clearly, it vacated the referee's report.  It

        18       says it is clearly in the decision, it says it

        19       in that portion of the decision in which it

        20       modifies the order of the trial court.  So all

        21       of those subtexts effectively have been

        22       obviated by the Appellate Division decision.

        23                  That's not to say that they have

        24       not said there are things for us to do.  But I

        25       take great faith and great heart in the fact


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         1       that they recognize that we're the ones to do

         2       it.  They have said this is for the Governor

         3       and the Legislature.  We have said, since the

         4       very get-go, this is for the Governor and the

         5       Legislature.

         6                  So I'm not troubled at all by what

         7       the Appellate Division has said.  I am,

         8       however, troubled by some of the things I

         9       hear, that I heard as recently, I believe, as

        10       yesterday.  I've seen it in some literature

        11       that has come out under the CFE/AQE banner.  I

        12       was a little surprised -- I wasn't surprised

        13       by AQE, I was a little surprised by CFE.  I

        14       sort of expect a certain amount of

        15       misinformation from AQE, but I expect CFE to

        16       be a little higher standard.

        17                  There's talk about this being

        18       unconstitutional, the formulas are

        19       unconstitutional.  Now, out of the words of

        20       the former executive director of CFE,

        21       Mr. Rebell, Mike Rebell, who's also counsel in

        22       this case, he has acknowledged, he

        23       acknowledged it publicly at the hearings held,

        24       the joint hearings, the budget hearings of the

        25       Senate Finance and Assembly Ways and Means


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         1       Committee a couple of years ago, he

         2       acknowledged that the formulas are not

         3       unconstitutional.

         4                  The Court of Appeals has not said

         5       the formulas are unconstitutional.  They may

         6       have said they're unwieldy, they may have said

         7       they're not transparent enough, but clearly

         8       they're not unconstitutional.

         9                  So when Senator Paterson, who I

        10       have nothing but regard for -- I've enjoyed

        11       the opportunity to debate him on several

        12       occasions on one or another issue -- stood up

        13       and talked about unconstitutionality either

        14       yesterday or the day before, I was rather

        15       taken aback, because I just held him to a

        16       higher standard.  Whether his counsel is

        17       giving him bad advice or whether he hadn't

        18       read the cases himself, I do not know.

        19                  The proposal here talks about using

        20       a professional judgment model.  It talks about

        21       combining it with the successful schools

        22       model.  It doesn't tell us whether they're

        23       using an efficiency filter.  An efficiency

        24       filter is something that the Regents used with

        25       their successful school model.


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         1                  And what the Regents will tell you,

         2       and they've said it publicly, it's a matter of

         3       record, is that in order to attain a sound,

         4       basic education, you don't have to be spending

         5       as much money as, for example, districts in

         6       Senator Oppenheimer's district.  They elect to

         7       spend a lot of money.

         8                  Our system, I would hope people

         9       would realize, is a progressive system.  The

        10       wealthiest decile gets somewhere in the area

        11       of about $1,300.  The poorest decile gets

        12       somewhere in the area of $9,500.  About 80 to

        13       85 percent of what the state provides is

        14       wealth-driven.  So it's not like we're being

        15       arbitrary in how these monies are apportioned.

        16                  If in fact you don't have an

        17       efficiency filter, the Regents conclude that

        18       you will be spending more money than you

        19       need -- not me, the Regents -- more money than

        20       you need to provide a sound, basic education,

        21       and that's why they use the efficiency filter.

        22                  So I'm not sure -- there's nothing

        23       in here that tells me whether there's an

        24       efficiency filter.  It just says they want to

        25       use both the successful schools and the


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         1       professional judgment model.  And for those of

         2       you who don't know, Judge DeGrasse threw out

         3       the professional judgment model.  He rejected

         4       it.  He went to a successful schools model.

         5       He changed the weighting to get to the same

         6       number, but he threw out the professional

         7       judgment model.

         8                  So I'm troubled by the idea that

         9       somehow or other this measure is viewed as a

        10       panacea.  I understand the politics.  I still

        11       believe that the decisions for these types of

        12       matters reside within both houses of this

        13       Legislature and with the Executive.

        14                  We dealt with the capital issue, we

        15       dealt with it in a fashion which I believe the

        16       city obviously has a great comfort level with.

        17       I believe that was a win-win.  It provided the

        18       money that the mayor sought for his capital

        19       plan, and it provided it at less dollars than

        20       the mayor was demanding initially from the

        21       state.  So the state won, the city won.  It

        22       was negotiated.  It wasn't imposed by a court.

        23                  I truly believe and have said from

        24       the very get-go that it's not for the courts

        25       to make these type of decisions.  There's no


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         1       precedent for it.  The court doesn't even talk

         2       in terms of trying to justify a precedent for

         3       it other than what you might find in the

         4       referee's report -- which, as I said, has been

         5       vacated, not even relied upon to that extent

         6       by Judge DeGrasse.

         7                  But I'm at a loss to figure out how

         8       much money we're talking about in this

         9       proposal, where the money is going to come

        10       from.  We are the entity that is responsible

        11       for appropriating those dollars.  And

        12       certainly the idea of a statewide approach is

        13       not novel.  It is something we all embrace.

        14       The question is, as always, what are the

        15       details in getting there.

        16                  So I oppose this amendment.  I

        17       believe that, number one, in part its

        18       procedural underpinnings have been in part

        19       gutted by a combination of Judge DeGrasse and

        20       the recent Appellate Division decision.  I

        21       believe that the kinds of dollars that are

        22       being suggested -- and I don't know if Senator

        23       Oppenheimer suggested amounts, but I've heard

        24       from other advocates amounts -- are amounts

        25       that are beyond the bounds.


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         1                  I believe that notwithstanding

         2       Senator Oppenheimer's comments -- and I had

         3       the opportunity to look -- the formula for

         4       sparsity has been tinkered with to basically

         5       reduce the formula to make it harder to drive

         6       money to rural districts.  Notwithstanding the

         7       fact that there's talk, I can only point to

         8       whatever page this is, Subsection F, which

         9       changes "sparsity count" to "sparsity factor."

        10       You increase the denominator, you don't change

        11       the numerator, the percentage has to be lower.

        12                  So at this late date, on March 31st

        13       at five minutes to 12:00, to go through this

        14       exercise, as well-intentioned as some might

        15       want it to be, certainly is an exercise in

        16       political gamesmanship and one which I'm not

        17       going to embrace and will certainly be

        18       opposing, Mr. President.

        19                  Thank you.

        20                  ACTING PRESIDENT MORAHAN:    Thank

        21       you, Senator.

        22                  Senator Malcolm Smith, on the

        23       amendment.

        24                  SENATOR MALCOLM SMITH:    Thank

        25       you, Mr. President.


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         1                  On an unrelated matter, unfortunate

         2       information.  As I sat here, I received a

         3       message that Senator Byron Brown's mother

         4       passed away last night.  And I would hope that

         5       my colleagues would take the time after this

         6       session to reach out to Senator Brown, extend

         7       your condolences to him, as obviously this is

         8       a very sensitive time for him.

         9                  With regard to the amendment that

        10       Senator Oppenheimer has put forward and has

        11       labored a great deal on this matter -- and I

        12       do note that Senator Oppenheimer is from

        13       Westchester County, which is outside of

        14       New York City, and her passion and interest on

        15       this matter is clear by what she represented a

        16       moment ago -- I would ask that my colleagues

        17       understand that this whole CFE decision goes

        18       to more than just the underpinnings of

        19       procedures and court rulings.  It goes to

        20       where we see ourselves as a society, how we

        21       see what we like to consider as the "new

        22       New York State" position around how do we

        23       treat the children of this state.

        24                  The new New York State needs to be

        25       sensitive to the fact that New York State by


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         1       itself cannot stand alone.  We need to

         2       understand the new New York State represents a

         3       group of individuals who are no longer

         4       competing just with New York State children.

         5                  I've had the pleasure, as well as

         6       some of my other colleagues, of traveling

         7       around this world -- China, India -- over the

         8       last several years.  And I will tell you,

         9       Mr. President, that the new New York State has

        10       to begin to think differently on how we go

        11       about educating our children.  Senator Golden

        12       talks about it all the time when he talks

        13       about charter schools and tax credits.  And

        14       that is, we've got to be able to make sure

        15       that our children have the mental capacity to

        16       compete, not just with each other here, but to

        17       understand that as they sit in the classroom

        18       there is someone from Asia that sits there,

        19       there is someone from India, there is someone

        20       from China, there is someone from Europe.

        21                  And if we don't position our

        22       children in a place where they have the

        23       ability to think and to grasp ideas and to

        24       come up with concepts that will allow them to

        25       contribute not only to their own well-being,


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         1       but to the well-being of this state -- the new

         2       New York State has to be able to make a

         3       commitment.

         4                  And I understand this -- the

         5       billion dollars that we offered to capital

         6       improvement.  That's a good thing.  There's no

         7       question about that.  But there is no question

         8       while you build it, they're going to come.

         9       And if you build it and there is no place --

        10       or I should say, the children that come there

        11       are not prepared to undertake the teachings

        12       that they're going to be given with the

        13       resources that we need to give them, which is

        14       what Senator Oppenheimer is talking about in

        15       her amendment, we're going to be in a very

        16       troubled situation.

        17                  There is no question there is a

        18       direct link between the children of this

        19       state, how they're educated, and the criminal

        20       justice system in terms of where our children

        21       end up going.  We can no longer afford to pay

        22       for the children in the criminal justice

        23       system because the cost, as all the actuaries

        24       have determined, as well as all the

        25       educational economists, does not balance out.


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         1                  So we have to make sure,

         2       Mr. President, that in this new New York State

         3       that we prepare our children in such a way

         4       that their minds can give back to society what

         5       we give to them in the way of teaching.  We've

         6       got to make sure that they are educated.

         7       There's no question about it.  It's just that

         8       simple.

         9                  Our children today, if not

        10       educated, will not make sure that as we stand

        11       in these halls that they are adequately

        12       trained to stand here behind us.  We are not

        13       going to be here that long.  We may have five,

        14       10, maybe 12 years at the most, out of all of

        15       us.  But if we do not begin to put aside what

        16       some might consider party differences -- and I

        17       know from time to time people will say, well,

        18       I'm Democrat, I'm Republican.

        19                  But as Senator Breslin says, this

        20       should not be a party matter.  This shouldn't

        21       be a matter of what party you're from.  It

        22       should be a matter of I have a son, I have a

        23       daughter, you have a son, you have a daughter.

        24       Whether they are downstate or upstate, at some

        25       point in time they are going to be sitting


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         1       across from or debating with or negotiating

         2       with some other child around this state that

         3       is either in a position of management or in

         4       the position of employee or in the position of

         5       scientist, doctor, or perhaps even a teacher.

         6                  But if we do not prepare them, if

         7       we do not prepare them in such a way that they

         8       can contribute, those debates, those

         9       discussions will not be going on with children

        10       from this state, they will be going on with

        11       individuals around the world, on the other

        12       side of the planet.  Which means that we as a

        13       state will not have done our job.

        14                  So, Mr. President, all I'm saying

        15       is that this amendment that Senator

        16       Oppenheimer has introduced is a heartfelt one,

        17       is one that took time.  She has worked with

        18       staff members, she has worked with people that

        19       crunch numbers, she has talked to people

        20       around the state.  This is not an emotional

        21       submission of an amendment.  This is an

        22       amendment that goes to the actual heart of

        23       what needs to happen in this state if we

        24       consider ourselves to be legislators that are

        25       concerned about the well-being of this


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         1       state -- and I know we are.

         2                  There is no doubt in my mind that

         3       there is no one in these chambers that does

         4       not have the best interests of children.  I

         5       can look at Senator Bonacic, I know he has

         6       that interest.  I can look at Senator Marchi,

         7       I know he has that interest.  I look at

         8       Senator Diane Savino, I know she has that

         9       interest.  Senator Diaz, I know he has that

        10       interest.  Senator Schneiderman, I know he has

        11       that interest.  Senator Spano, I know he has

        12       that interest.  We all share that common

        13       interest.

        14                  What needs to happen at this point

        15       is we all need to share the one goal that is

        16       important to this body.  And that is that we

        17       make sure that our children are adequately

        18       educated.  This is a down payment on the

        19       operating side, no question about it -- I mean

        20       on the capital side, no question about it.

        21       But we now need to take that next step.

        22                  Everything -- and everyone knows

        23       when it comes to business or anything else,

        24       you have phases by which you operate.  Phase

        25       one is this capital money that we're doing.  A


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         1       great amount of money, wonderful that you give

         2       New York City, through the transitional

         3       finance authority, the ability to float bonds

         4       in the future to do that construction.

         5                  But now with the facilities, and

         6       now that there will be rehab, what are we

         7       going to do about what we put inside there?

         8       We can't put people who do not have the

         9       ability and do not have the resources to be

        10       educated.

        11                  So, Mr. President, I ask my

        12       colleagues, I all those that are listening to

        13       the sound of my voice to take the time, take

        14       the moment, think this through.  This is a

        15       good time for us, there's no question.  We're

        16       doing a lot in the state budget.  But Senator

        17       Oppenheimer's amendment is one that requires

        18       the support of this full body.  There should

        19       be no question about her desires, her

        20       interests, the reason and the purpose behind

        21       her amendment.  And we should be proud to

        22       endorse that amendment and vote on it

        23       unanimously.

        24                  ACTING PRESIDENT MORAHAN:    Thank

        25       you, Senator.


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         1                  It's the rules of the house, just

         2       to point them out -- I'm going to recognize

         3       Senator Parker to address the amendment.

         4       However, there's a half-hour allowed on each

         5       side of the aisle for this, and we have about

         6       five minutes left for you, Senator Parker.

         7                  SENATOR PARKER:    Thank you very

         8       much.  I'll be brief.

         9                  Four score and seven years ago --

        10                  (Laughter.)

        11                  SENATOR PARKER:    No, I really

        12       just want to stand up to add my voice to those

        13       who are supporting this amendment.  This

        14       amendment is really, really critical.

        15                  And one of the lessons that we

        16       learned here in this body today I want people

        17       to pay attention to, because -- and Senator

        18       Saland gave us the opportunity to learn it.

        19       When you don't have the answer to the

        20       problems, talk about the complexities of the

        21       issue.

        22                  So let me make it real basic.  The

        23       children of the city of New York right this

        24       moment receive $2,000 less per child compared

        25       to every other child in the state of New York.


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         1       There is not one member outside of New York

         2       City who would allow that for one day, let

         3       alone for twenty years.  This has been

         4       something that's been going on for far too

         5       long.  Five years ago the court decided this.

         6       We spent the entire beginning of the year

         7       talking about protecting children, talking

         8       about, you know, the crimes and how do we

         9       protect children from sexual predators.  And

        10       we all said yes, we need to do that.  That was

        11       important, and this house overwhelmingly

        12       passed those bills.

        13                  Now, when you get a real chance to

        14       do something for the children of New York

        15       State by simply -- you know, nothing

        16       complicated.  Put money into it, money that

        17       everyone has agreed the city needs and

        18       deserves.  What everybody has also said is

        19       look, we recognize that New York City is not

        20       the only high-needs district in this state.

        21                  And so, yes, we're not only willing

        22       to help New York City, but let's help

        23       Brookhaven and Mount Vernon.  And let's help

        24       Yonkers, let's help Albany, Syracuse,

        25       Binghamton, Buffalo, and Rochester.  Let's put


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         1       money in all -- and also all the rural

         2       districts that I've not mentioned.  Let's put

         3       money into all the districts around the state

         4       that need the money so that we can make sure

         5       that people in this state have the ability to

         6       get what they most need, which is a full-time

         7       job at a living wage with benefits.  Because

         8       education is the single most important factor

         9       in economic viability and the life of this

        10       state and the people in it.

        11                  Thank you.

        12                  ACTING PRESIDENT MORAHAN:    Thank

        13       you, Senator Parker.

        14                  Senator Sabini, on the amendment.

        15                  SENATOR SABINI:    Thank you,

        16       Mr. President.  On the amendment.

        17                  I heard an earlier speaker say at

        18       this late date we shouldn't be doing this.

        19       This lawsuit, the Campaign for Fiscal Equity,

        20       was filed 13 years ago.  The decision was

        21       rendered four years ago.  So we are late.

        22       We're late in complying with it.

        23                  The economic future of the city of

        24       New York and for other underperforming school

        25       districts is at stake.  I come from a district


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         1       where people come from all of the world, from

         2       Pakistan, Peru, the Philippines.  And our rate

         3       of dropout amongst English-language learners

         4       is now at 50 percent.  That will continue to

         5       grow.

         6                  Senator Parker said it very

         7       correctly, there is a lack of funding to the

         8       high-needs school districts, no matter how you

         9       change it.  It was said earlier that the court

        10       decision says that it's up to us.  There are

        11       lawyers on both sides that agree with that or

        12       disagree with that.  If it is up to us, we

        13       have to do the right thing.  And the right

        14       thing is to prioritize the high-needs

        15       districts.

        16                  Senator Oppenheimer's amendment has

        17       school runs that many of us got before we got

        18       the school runs of the actual bill that detail

        19       where the dollars will go.  What we're doing

        20       here by the original proposal that this

        21       amendment seeks to correct is playing

        22       political stall-ball.  We have a governor

        23       who's leaving, we have an election coming up.

        24       The City of New York is declaring victory, and

        25       that's good.  We got something out of it by


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         1       getting more capital aid.  But I'm sure

         2       they'll be back next year to get more

         3       operating aid to put teachers and desks and

         4       books into the classrooms we're going to

         5       construct.

         6                  But the sad thing is we're

         7       abrogating our responsibility to the children

         8       moving through the system.  They don't come

         9       back.  Or if they do come back, they come back

        10       on programs that require more job training,

        11       public assistance, and the things we don't

        12       like to pay for.

        13                  So, Mr. President, I'm proud to

        14       support Senator Oppenheimer's amendment and

        15       plan to vote in the affirmative.

        16                  ACTING PRESIDENT MORAHAN:    Thank

        17       you, Senator Sabini.

        18                  Senator Schneiderman.

        19                  SENATOR SCHNEIDERMAN:    Thank you,

        20       Mr. President.

        21                  We've reached the time limit, I

        22       believe, in speaking on the amendment.

        23       However, we will be speaking about the

        24       underlying bill.  And I hope that any of my

        25       colleagues who need to call into contrast the


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         1       solution offered by Senator Oppenheimer's plan

         2       and her amendment and the lack of a solution

         3       offered by the underlying bill will speak at

         4       that time.

         5                  I join my colleagues in strongly

         6       urging everyone on both sides of the aisle to

         7       vote for this amendment.  The details are

         8       there.  The money is spelled out in more

         9       detail than we usually get in education bills

        10       that we vote on here.  And the problem, as my

        11       colleagues have articulated, is undisputable.

        12                  So I'm in strong support of this

        13       amendment, as are my colleagues here.  And we

        14       hope that we will get some support from the

        15       other side of the aisle.  The Oppenheimer plan

        16       is the best long-term solution that has come

        17       to the floor in this house this year, and I

        18       believe in many years.

        19                  And the rest of you who have more

        20       to say, we can be speaking on the bill and

        21       raise many of the same issues.  I realize our

        22       time is up.  I urge everyone to vote yes,

        23       Mr. President.

        24                  ACTING PRESIDENT MORAHAN:    Thank

        25       you, Senator Schneiderman.


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         1                  Senator Saland, on the amendment.

         2                  SENATOR SALAND:    Just briefly to

         3       close, Mr. President.

         4                  I would merely note that this

         5       measure was not part of the Assembly budget

         6       package, wasn't part of their one-house

         7       package, has never seen the floor, as best as

         8       I can determine, in the Assembly.

         9                  But I'm particularly troubled by a

        10       comment, if I heard it correctly, that Senator

        11       Parker made.  And I understand his passion.

        12       But if in fact I heard him correctly, he said

        13       the City of New York gets $2,000 less than any

        14       other district in the state.  That is just a

        15       total misstatement.

        16                  New York City is an average-wealth

        17       district.  And what that would mean would be

        18       about half the districts in the state get

        19       more, and about half the districts in the

        20       state get less.

        21                  It's one thing for passion, it's

        22       another thing maybe for my hearing.  I

        23       apologize, Mr. President, if that's what you

        24       were alluding to.

        25                  Thank you, sir.


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         1                  ACTING PRESIDENT MORAHAN:    Thank

         2       you, Senator.

         3                  Senator Padavan, on the amendment.

         4                  SENATOR PADAVAN:    Thank you,

         5       Mr. President.  I'm going to be very, very

         6       brief.

         7                  I could ask Senator Oppenheimer if

         8       this amendment is being introduced in the

         9       Assembly, but I know the answer.  No, it's

        10       not.  This is a one-house effort.  It's a

        11       political vehicle to raise various, various

        12       points relevant to this issue.  And that's

        13       fine if you want to do that.  I find it

        14       somewhat distasteful using education as a

        15       political vehicle, using our kids to advance

        16       political agendas.

        17                  But let's get to some of the facts

        18       that I think are important.  If someone were

        19       to drop into this chamber and not know

        20       anything about anything we're talking to, they

        21       would come away with somewhat of a distorted

        22       view as to what has been going on in the City

        23       of New York relevant to education.

        24                  Now, I asked the Department of

        25       Education to provide me with specific numbers


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         1       which I think are important for us to

         2       understand.  If you go back to 2001, total

         3       state funds were a little over $5.5 billion.

         4       What are they in this budget?  Over

         5       $6.6 billion.  A significant increase over

         6       that period of time.

         7                  The total amount of money being

         8       spent in the City of New York as a result of

         9       our additions and the additions that the city

        10       has provided -- basically because of the

        11       maintenance of effort provision we mandated

        12       upon them -- is over $17 billion.  Now, if you

        13       divide that by 1.1 million children, you do

        14       the arithmetic.  Some of these things that

        15       I've heard said over here just don't ring true

        16       at all.

        17                  Now, are we spending enough?  Well,

        18       that's a good question.  And I guess various

        19       educators and individuals and taxpayers and

        20       experts would come up with different

        21       conclusions.  I know in my own district I have

        22       schools that are performing at or above grade

        23       level, 90-some-odd percent of the kids in a

        24       given school.  And yet in that same senatorial

        25       district, I have other schools that are doing


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         1       very poorly.  Yet they're getting the same

         2       amount of money.  The teachers are being paid

         3       the same.

         4                  What's the difference?  Parents.

         5       Parents who get involved.  So money isn't the

         6       entire solution.  But yet we recognize the

         7       need for money to make up for that failure in

         8       certain households for parental involvement

         9       and all of those things that make a difference

        10       in a child's life, particularly as it relates

        11       to how they fare in school.

        12                  If you look at the total amount of

        13       state aid we're providing as a percentage of

        14       the total going into the City of New York,

        15       it's 39.3 percent.  39.3 percent of the total

        16       state aid package is going into the City of

        17       New York.  Operating.  I'm not including

        18       capital, totally aside.

        19                  What is the percentage of our pupil

        20       population?  It's 37.1 percent.  So now where

        21       are we?  We are providing a percentage of

        22       state aid in excess, by approximately

        23       2 percent, of the number of pupils in the City

        24       of New York.

        25                  Now, how did that happen?  Because


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         1       it wasn't so when you go back to 1993, when

         2       the CFE case was first initiated.  We were not

         3       getting an appropriate share.  Everyone

         4       acknowledges that fact.  But over that decade

         5       or more, slowly but surely, we have been

         6       increasing state aid to our city and we have

         7       been eliminating, with surety and with purpose

         8       and with commitment, that disparity of numbers

         9       which shortchanged our kids.

        10                  But when you're dealing with this

        11       budget, you can't say that anymore.  It's just

        12       not factually correct.  And if you don't trust

        13       what I'm telling you, you go to the Department

        14       of Education or the chancellor's office and

        15       say "give me the numbers."  I've got it right

        16       here.

        17                  Now, again I repeat the rhetorical

        18       question:  Is it enough?  And in many, many

        19       parts of our city, it's still not enough.  And

        20       how we get to that optimum level of every

        21       disadvantaged child, socioeconomic

        22       environments which disparage your ability to

        23       get a good education?  How do we deal with all

        24       of those issues?  I'm not smart enough to

        25       answer that question.  Maybe some of you are.


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         1                  But I do know that this budget and

         2       what this Finance Committee did, and what

         3       Senator Saland did, along with Cathy Nolan in

         4       the Assembly -- which you sat at, Senator

         5       Oppenheimer, and I don't recall you not voting

         6       for our plan, the one we all came together and

         7       advanced.  Because it's a good plan, and it

         8       goes a long way to getting where we want to go

         9       to be.

        10                  So let's stop playing politics with

        11       this issue, my colleagues.  Let's get down to

        12       the basic issue.  We've got a good education

        13       budget here.  We're doing a lot of good things

        14       in all kinds of areas, from special pre-K to

        15       some of the things you've already noted in a

        16       positive vein.  And let's move on and get this

        17       thing done.

        18                  ACTING PRESIDENT MORAHAN:    Thank

        19       you, Senator Padavan.

        20                  SENATOR OPPENHEIMER:    Can I just

        21       have one minute?

        22                  ACTING PRESIDENT MORAHAN:

        23       Senator, you can speak on the bill.

        24                  SENATOR OPPENHEIMER:    Okay.

        25                  ACTING PRESIDENT MORAHAN:    On the


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         1       amendment, those Senators in agreement please

         2       signify by raising your hands.

         3                  THE SECRETARY:    Those recorded in

         4       agreement are Senator Andrews, Breslin,

         5       Connor, Coppola, Diaz, Dilan, Duane, Gonzalez,

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

         7       Onorato, Oppenheimer, Parker, Paterson,

         8       Sabini, Sampson, Savino, Schneiderman,

         9       Serrano, A. Smith, M. Smith, Stachowski,

        10       Stavisky and Valesky.

        11                  ACTING PRESIDENT MORAHAN:    The

        12       amendment is not agreed to.

        13                  Senator Oppenheimer, on the bill.

        14                  SENATOR OPPENHEIMER:    I just

        15       wanted to respond to a couple of things that

        16       were said.

        17                  For me, this is really not a

        18       political issue.  For me, I have been working

        19       with Mike Rebell for 13 years, and --

        20                  SENATOR MARCELLINO:    Mr.

        21       President, if I could ask Senator Oppenheimer

        22       to speak up.  I'm unable to hear her.

        23                  SENATOR OPPENHEIMER:    My problem

        24       is I have a deep voice and it doesn't carry.

        25       But I will try and make it carry.  If I may.


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         1                  I was just saying that for me it

         2       isn't a political issue, because I have been

         3       working with Mike Rebell for 13 years, having

         4       met with him, having attended meetings with

         5       him and opened conferences.

         6                  And it is something that I do feel

         7       strongly about.  And I don't feel that anybody

         8       should be against a transparent formula that

         9       everybody could understand.  None of us

        10       understand the current formula.  And it has,

        11       you know, specific things in it so that we

        12       know exactly how the distribution is going to

        13       be done, and it is going to be done according

        14       to need.  I think we all have to agree with

        15       that.  And we should all agree also that we

        16       need a multiyear plan.

        17                  It just seems like it's very

        18       logical and very simple.  And in my opinion,

        19       yes, it is substantial money.  But my feeling

        20       has always been that you're either paying now

        21       or you're paying later.  So many of our young

        22       people in prison have not graduated, the vast

        23       majority have not graduated from high school.

        24       And I think if they had graduated, they might

        25       have been able to find employment and they


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         1       might not be in prison and they might not have

         2       taken those drugs.  I'm willing to take that

         3       gamble.

         4                  And I think with the education,

         5       that we could certainly be the Empire State in

         6       a global economy.  And I'm not sure we will be

         7       without this kind of a measure.

         8                  Thank you.

         9                  ACTING PRESIDENT MORAHAN:    Thank

        10       you, Senator.

        11                  Senator LaValle, on the bill.

        12                  SENATOR LaVALLE:    Thank you,

        13       Mr. President.

        14                  I'm going to speak about two

        15       issues, one dealing with education and in the

        16       second part I want to talk about higher

        17       education.

        18                  I want to thank Senator Saland for

        19       his presenting to this body an accurate

        20       reading of the appellate decision and what it

        21       does.  Sometimes we've been blinded by

        22       headlines and stories that, when you compare

        23       the two, have nothing to do with the truth.

        24                  I want to thank Senator Padavan for

        25       accurately talking about the numbers and what


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         1       the numbers do.  Because, once again, those

         2       are accurate, the numbers that he has been

         3       given show an accurate portrayal of what the

         4       city is getting and what the students are

         5       receiving.

         6                  I think that every member, all 62

         7       members, regardless of where they live,

         8       education is one of the most important issues

         9       to them.  The investments that we make in the

        10       education part of the budget are really second

        11       to none, other than maybe healthcare.  It's

        12       all about investments in our future,

        13       investments in our children.  We should not be

        14       caught up with the politicization of the

        15       formula or what is there or not there.

        16                  This body has always been called,

        17       and I believe, a deliberative body.  And we

        18       should be dealing with the facts, not with

        19       mirage.  Now, the state aid formulas are very,

        20       very complex.  They have changed over time.

        21       Years ago when I was a staff member, in 1974,

        22       Governor Malcolm Wilson at that time asked

        23       that all of the categorical aid formulas that

        24       had been part of the Diefendorf formula be

        25       stripped, and we did that.  But there was a


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         1       chairman in the Assembly who over a period of

         2       time, Assemblyman Jose Serrano, who very

         3       carefully and surgically built categorical aid

         4       formulas so that the city would benefit at

         5       that particular point in time.

         6                  We are now in a different point in

         7       time, and those people who are the

         8       afficionados of state aid formulas now are

         9       talking about foundation formulas.  And quite

        10       honestly, at this point in time foundation

        11       formula probably is more relevant than the

        12       hodgepodge of what we have.

        13                  But when we talk about multiyear

        14       formulas, things change.  Every single year a

        15       school district that was growing no longer has

        16       growth aid.  The equalization rates change in

        17       a particular area, and it hurts certain school

        18       districts.

        19                  So the state aid formula every

        20       year, with a small P, there are politics of

        21       the state aid formula.  And what it -- what

        22       drives that are all the members who are trying

        23       to protect and trying to drive the most aid to

        24       their school districts.

        25                  So I congratulate Senator Saland


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         1       and all the staff and Assemblywoman Nolan for

         2       really putting together, in a very difficult

         3       environment, a state aid formula that I think

         4       does about as much good as a formula can do in

         5       a very diverse state.

         6                  But what is always upsetting to me

         7       is that -- when we drift from the facts.  And

         8       when we drift from the facts, we begin to

         9       split ourselves apart in a state, and that is

        10       not a healthy thing.  But because where we can

        11       come together and be united, where we are,

        12       that every child in this state needs to have a

        13       quality education regardless of where they

        14       live.  And that should be our focus, and not

        15       playing to building headlines that do us no

        16       good.

        17                  On the second issue of higher

        18       education, I am very, very proud of what we

        19       did, and the hard work that the staff, the

        20       higher ed staff did.  The higher ed budget is

        21       probably the best that it has been in several

        22       decades.

        23                  And one of the things that we

        24       protected, the SUNY and CUNY operating

        25       budgets.  We've ensured that the independent


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         1       sector has ample funds.  We've increased

         2       monies to our community colleges.  And we

         3       created something I think is very special, a

         4       part-time aid program that will really help

         5       single parents and hardworking individuals who

         6       want to lift themselves up beyond where they

         7       are today.

         8                  And I think, when we look at this

         9       higher ed budget, that part-time aid program,

        10       across all three sectors -- SUNY, CUNY and the

        11       independent sector -- will really be one of

        12       the highlights that we should be very, very

        13       proud of.  We made reforms, we put in

        14       accountability measures.  So I think it's a

        15       very, very good program.

        16                  One of the things that we put in is

        17       some oversight on the community colleges.  And

        18       I'd just very, very briefly say that the

        19       community colleges are the gateway to higher

        20       education for so many individuals.  And when I

        21       look at the aid that we give, increases in

        22       base aid, each and every year the tuitions

        23       keep going up.  And so there are some

        24       oversight provisions in language here that I

        25       hope will get our community colleges to


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         1       continue to provide the depth and breadth of

         2       courses that students in our local communities

         3       need but, at the same time, be ever so

         4       vigilant of the increases in the tuition that

         5       the students pay.

         6                  So I will be voting in the

         7       affirmative on this bill, Mr. President.

         8                  ACTING PRESIDENT MORAHAN:    Thank

         9       you, Senator.

        10                  Senator Saland.

        11                  SENATOR SALAND:    Thank you,

        12       Mr. President.

        13                  Mr. President, I merely rise in

        14       support of this measure.  It represents the

        15       culminations of some very trying and

        16       challenging negotiations.  Several people have

        17       alluded to the fact that this was worked out

        18       closely, obviously, with the Assembly, with

        19       the chair of the Assembly committee, Cathy

        20       Nolan.

        21                  It is a product which represents

        22       the most -- represents the largest increase in

        23       state aid to education in the history of this

        24       state.  And at the same time, among the

        25       below-the-line items, we have a significant


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         1       increase, which was an initiative of this

         2       house, in library aid.  Again, something which

         3       has not occurred in quite some time.

         4                  So I just want to say that there's

         5       little or no reason -- in fact, virtually no

         6       reason whatsoever -- for anybody to be voting

         7       against this particular measure.  At least to

         8       the extent that they might have concerns about

         9       the education portion, $1.1 billion is a

        10       significant amount of money in anybody's

        11       league and certainly is going to be critically

        12       important to children regardless of whether

        13       they be in New York City, in Poughkeepsie, in

        14       Jamestown or Plattsburgh.  It's essential that

        15       we continue our commitment to children.

        16                  And at the same time, these

        17       additional dollars certainly going are to go a

        18       considerable distance to mitigate the

        19       otherwise painful property-tax increases that

        20       in the absence of this might be imposed upon

        21       people.

        22                  And lastly and most importantly,

        23       this budget is going to be on time and it's

        24       going to enable all of those independent

        25       school districts, every one of those school


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         1       boards, to be able to contemplate what they're

         2       getting, know what they're getting in state

         3       aid and appropriately plan their budgeting.

         4                  And I would hasten to add in that

         5       vein, had the amendment been adopted, we would

         6       have had a serious problem.  Because under our

         7       rules -- and I would merely call attention to

         8       page 24 of our rules -- you would see that

         9       were an amendment to be adopted were it not

        10       offered by a sponsor, it would have to go back

        11       to committee for ten days.

        12                  So effectively, by pursuing the

        13       amendment, seeking to pass the amendment, I

        14       would assume you were asking that we delay the

        15       timely adoption of the budget.  Which I would

        16       hope nobody really would have wanted to see

        17       accomplished.

        18                  Thank you.

        19                  ACTING PRESIDENT MORAHAN:    Thank

        20       you, Senator.

        21                  Senator Bonacic.

        22                  SENATOR BONACIC:    Thank you,

        23       Mr. President.

        24                  Let me started by thanking Senator

        25       Bruno for his leadership on the education


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         1       budget, but also two of our colleagues in

         2       particular who carried the heavy burden.

         3                  First, Senator LaValle, on the

         4       higher education budget.  And we thank him for

         5       his work on that and for the product that he's

         6       delivered.  And secondly, certainly Senator

         7       Saland, who, you know, worked in the trenches

         8       many long hours in an exemplary fashion.  And

         9       we thank him for his hard work for the product

        10       that he produced.

        11                  I would like to also start with

        12       what Senator Paterson said when this session

        13       first began.  He was kind enough to point to

        14       my legislation, in his opening remarks of the

        15       session, where we talked about finding an

        16       alternate of funding education.  And we

        17       believe we have to be more reliant on the

        18       income tax, a means-based tax, and less

        19       reliant or not reliant at all on the property

        20       tax, which is a housing tax.

        21                  In many parts of the state, the

        22       school property tax is the difference between

        23       homeownership or renting.  In Orange and

        24       Ulster Counties, people who've bought their

        25       homes years ago, maybe for $185,000, now it's


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         1       much more expensive, they're paying $8,000 or

         2       more in school property tax.  Over the course

         3       of a mortgage, not only will be you paying the

         4       principal twice with the interest, but

         5       probably three times because of the property

         6       tax.

         7                  This budget continues the state

         8       commitment to public education.  And it

         9       provides some relief for property owners.  But

        10       in my view, in a manner which fundamentally

        11       changes the way we have to finance education,

        12       we didn't address it.

        13                  What is a good thing, there will be

        14       a commission formed that will look at the very

        15       thing that some of us have been talking about,

        16       and they will report back by September or

        17       October that maybe we should be thinking of a

        18       different way for the future.

        19                  Now, education is always a

        20       contentious issue.  We all care about kids;

        21       nobody is going to dispute that.  There is not

        22       a single one senator here who doesn't care

        23       about his kids in his district.  And maybe we

        24       care more about the kids in our district who

        25       we represent because we're their voice.  But


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         1       when we're a senator, we have to care for all

         2       of the kids.  That's who we are, a state

         3       legislative body.

         4                  There was a move initially by

         5       Assembly Bill 100, which by the way doesn't

         6       exist anymore, which would have driven

         7       92 percent of the capital aid to the city.  I

         8       have nothing against the city, nothing against

         9       the kids in New York City.  Born there, went

        10       to school there, went to law school there,

        11       grew up there, so I care about the city and

        12       those children too.

        13                  But as a father and grandfather, I

        14       support all the students and a distribution

        15       which has to always be fair and equitable.

        16       And I think some of the senators who spoke

        17       eloquently were saying the same thing.  We're

        18       not sent here simply to do what the loudest

        19       voices scream for.  We're not simply here to

        20       do what a judge suggests is the minimum.

        21       We're sent here to do what's right.

        22                  There are people in this state

        23       would choose to litigate for more aid for

        24       their kids.  That is their right.  I suggest,

        25       however, it is our obligation and our duty to


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         1       legislate more for all the kids.  We have done

         2       that in this budget, in a bipartisan fashion,

         3       and I thank you all for that.

         4                  I vote yes, Mr. President.  Thank

         5       you.

         6                  ACTING PRESIDENT MORAHAN:    Thank

         7       you, Senator Bonacic.  You will be recorded in

         8       the affirmative.

         9                  Senator Liz Krueger.

        10                  SENATOR LIZ KRUEGER:    Thank you,

        11       Mr. President.  On the bill.

        12                  ACTING PRESIDENT MORAHAN:

        13       Senator Liz Krueger, on the bill.

        14                  SENATOR LIZ KRUEGER:    Well, I

        15       have to say it would have been a much better

        16       bill if you -- if we had won our amendment.

        17                  And I'd like to respond to some of

        18       the things that were said, because people are

        19       getting up and using a lot of rhetoric that

        20       there's political gamesmanship involved with

        21       the Senate Democrats attempting to come up

        22       with a fair funding formula for the children

        23       throughout the state of New York at the last

        24       minute.

        25                  So for the record, I got the runs


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         1       for the proposal before us today at 10:22 this

         2       morning for a 10:30 session.  So the question

         3       of how do you actually do this in advance and

         4       do your homework in advance is a challenging

         5       one for all of us.  I don't know when my

         6       colleagues on the other side of the aisle knew

         7       the information, but I received a copy at

         8       10:22 for a 10:30 session.

         9                  And then I hear my colleagues

        10       saying yet again, debating the CFE lawsuit,

        11       who said what when.  The Senate Democrats are

        12       attempting, through what we're doing today, to

        13       say it doesn't actually matter where we are in

        14       the lawsuit.  What matters is where we are in

        15       delivering fair funding for the children of

        16       the state of New York, not just the children

        17       of New York City, which is the only locality

        18       that the CFE lawsuit addresses, but rather the

        19       children throughout the state of New York.

        20                  And in fact we don't have fair and

        21       equitable funding for our children, because

        22       under the current scenario -- and by the way,

        23       we do nothing with the funding formulas this

        24       year.  We continue the unfair shares model of

        25       distribution of state funds for operating


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         1       costs.  But today in New York State, while

         2       we're the third in the nation in average

         3       education spending per child, we have the

         4       largest gap between wealthy and poor districts

         5       in this country, and we have the third largest

         6       funding gap between districts that serve large

         7       minority populations and districts serving few

         8       students of color.

         9                  And so when one of my colleagues, I

        10       believe Senator Padavan, got up and said we

        11       get more money in percentage than we have

        12       children, that's not an accurate statement.

        13       Because while we can debate, as Senator Saland

        14       has, the different interpretations of the

        15       efficiency models versus other accountability

        16       models for how you would redraw fair funding

        17       formulas in the State of New York, there's no

        18       question that it's not simply per child but,

        19       rather, an evaluation of various categories of

        20       need.

        21                  And I heard someone say that the

        22       Regents haven't recognized the formula model

        23       that we are using today in our alternative

        24       proposal.  But we know the Regents have

        25       proposed dramatic increases in the dollar


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         1       amounts for operating funds for schools in the

         2       state of New York.  They've put out their own

         3       report.  We know that the Regents have said

         4       the current funding formula is unfair and

         5       unjustified and continuing forward with a

         6       shares model does not address fairly all the

         7       children of the state of New York.

         8                  And I heard questions from my

         9       colleagues that I'm not sure have been

        10       answered, so I want to just go over them.  Our

        11       proposal that was rejected and would have made

        12       this a much better bill would have provided

        13       $2.6 billion in additional operating aid.  It

        14       would have fulfilled the CFE case obligations,

        15       at least as a down payment, because of the

        16       statewide standards used.  It would have

        17       provided a $1.15 billion increase in operating

        18       for New York City schools, provided over

        19       $580 million for the Big Four school districts

        20       in operating aid, an average increase of

        21       68.2 percent.

        22                  It would have dramatically

        23       increased funding for high-needs rural,

        24       suburban and small city school districts.  It

        25       would have held harmless lower-need districts


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         1       so all districts received an increase of at

         2       least 2 percent.  It would have placed more of

         3       the increases in school funding with the

         4       state, which would have helped to provide

         5       local property tax relief throughout the state

         6       of New York.

         7                  Senator Bonacic is right when he

         8       talks about the unfairness of the property tax

         9       costs in various parts of the state, and we

        10       recognize that.  And while he and I might not

        11       agree today, I think he and I do agree that

        12       ultimately we have to evaluate the tax venture

        13       structure in the state of New York and the

        14       differences between how different counties and

        15       localities pay for fundamental basic education

        16       items and other items.

        17                  And I heard my colleagues, some of

        18       them, saying that we were doing this for

        19       little purposes.  We are standing in the

        20       Capital of the State of New York.  What is it

        21       that we do here that is not political?  This

        22       is a political process and a policy process.

        23                  Senator Oppenheimer moved forward

        24       with an amendment that would in fact address

        25       fundamental unfairness in the funding


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         1       categories of school aid in the state of

         2       New York for every child.  To argue that there

         3       is no political process that gets us here

         4       today is a ridiculous statement.  Or we're all

         5       in the wrong business, one or the other.

         6                  I think that the Mayor and the

         7       Assembly did a good job in their arguments to

         8       try to get us more.  Unfortunately, they

         9       couldn't get far enough, which is why we're

        10       standing here today trying to highlight that

        11       we have still not fulfilled our mission or a

        12       commitment to the children and fair funding in

        13       operating monies.

        14                  And I heard a colleague ask how

        15       would we pay for this education funding.  And

        16       so as I try so often to do, I try to answer

        17       the questions raised.  In the next bill, the

        18       appropriations bill, we're going to vote for

        19       or against $188 million for professional

        20       sports teams.  If you add up the Empire Zone

        21       dollars that we have already approved,

        22       including earlier today in the revenue bill,

        23       the State of New York loses $646 million a

        24       year under the Empire Zone model, which is

        25       fundamentally inequitable to both small


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         1       businesses and various districts throughout

         2       the state.

         3                  If we hasn't passed the STAR rebate

         4       program maybe an hour ago in the revenue bill,

         5       we'd have another $900 million.

         6                  If we ever, ever opened up this

         7       book and took a hard look at it, the New York

         8       State Expenditure Report, the third portion of

         9       the budget, we could debate billions of

        10       dollars of money that we never do that we

        11       exempt certain special-interest categories in

        12       the state of New York from paying.  I just

        13       puddle out two:  IDA sales tax exemptions,

        14       $83 million.  Have we really done the homework

        15       we should on how IDAs operate in the state of

        16       New York and how they have the authority,

        17       without elected power, to exempt people from

        18       taxes?

        19                  Crude oil petroleum, $45 million

        20       tax exemption.  As we have debated on this

        21       floor, but I don't believe resolved, why are

        22       we doing tax exemptions for an industry we're

        23       supposed to be discouraging from expanded use

        24       of?  You're supposed to decrease dependence on

        25       petroleum, we all are, and yet we continue to


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         1       provide tax exemptions.

         2                  Yesterday I spoke out about the

         3       fact that we were reappropriating $2 billion,

         4       over $2 billion in the state budget for MOU

         5       agreements from previous years that have never

         6       been determined, never made public, and never

         7       spent.

         8                  So if I just add up the list I

         9       mentioned, I could get us $3.73 billion that I

        10       would argue are a better use of the taxpayers'

        11       money if we were to invest that in education.

        12                  So in fact, there are good parts of

        13       this legislation.  And I will talk more on the

        14       appropriations bill itself.  But please don't

        15       accept the argument that we have finished our

        16       assignment for fair funding for public

        17       education.  Please don't get caught in the

        18       endless details of he said/she said on the CFE

        19       decisions in any given day.  We didn't need a

        20       lawsuit to know what was right for the

        21       children of the state of New York, and so we

        22       shouldn't be waiting to figure out those

        23       questions to do what's right for the children

        24       of New York.

        25                  We can pay for this.  Education


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         1       should be a higher priority.  I'm not saying

         2       we didn't make some progress this year.  The

         3       capital construction monies will be critical.

         4       But even there, there are questions about the

         5       distribution and how we will be paying for

         6       them over the long term because, again, we're

         7       bonding out large sums of money again.

         8                  But again, I urge my colleagues

         9       don't walk away and truly believe we did our

        10       jobs on this.  And I want to thank Senator

        11       Oppenheimer for her work on this, and I'm

        12       sorry that we're not passing a bill that

        13       includes her analysis.

        14                  Thank you, Mr. President.

        15                  ACTING PRESIDENT MORAHAN:    Thank

        16       you, Senator.

        17                  Senator Diaz, on the bill.

        18                  SENATOR DIAZ:    Thank you,

        19       Mr. President.  On the bill.

        20                  I heard one of my colleagues saying

        21       the State of New York will win with this

        22       budget and the City of New York will win.  I

        23       heard that said by one of my colleagues here.

        24                  Well, the question is not if the

        25       state will win or if the city of New York will


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         1       win.  The question here is will the children

         2       in public schools located in the black and

         3       Hispanic community win.

         4                  So when someone says the state will

         5       win, the city will win, that has some kind of

         6       clue there.  Maybe there is some kind of

         7       something that we could say yes.  But my

         8       question is, again, will the children in my

         9       district win?  And the answer is no, I'm

        10       afraid not.

        11                  I'm afraid -- I'm afraid that the

        12       children in my district and the children in

        13       the black and Hispanic districts will continue

        14       to be left behind, will continue to be

        15       ignored, and will continue to be begging for

        16       more.

        17                  The Comptroller of the State of

        18       New York, Alan Hevesi, recently issued a

        19       report stating that the money allocated to do

        20       away with overcrowding in the city schools was

        21       diverted and used somewhere else.

        22                  Every year since I'm here, we have

        23       been voting for more money for the City of

        24       New York, and now we are dealing with CFE.

        25       And when we talk about CFE, the Bible teaches


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         1       me to give credit where credit is due.  And I

         2       want to -- I intend to give some credit here.

         3                  CFE has been fought by black,

         4       Hispanic -- and when you go to the City

         5       Council in the City of New York, the people

         6       fighting for CFE, black and Hispanic and a few

         7       others.  When you go to the New York State

         8       Assembly, in the Assembly chambers, black and

         9       Hispanic fighting for CFE money.  When you

        10       come to this body, mostly the same.

        11                  I have to commend and I have to

        12       tell everyone, either people listening or

        13       watching or whatever, that in this chamber we

        14       have to be grateful for the work done by

        15       Senator Eric Schneiderman.  He and I, we

        16       disagree most of the time.  But I have to say,

        17       I have to say that now that everybody is

        18       salivating with the CFE money and how much

        19       money is going to go to the city, I have to

        20       say that the City of New York owes to members

        21       of the chamber, to this conference, the

        22       Minority conference, and to Senator

        23       Schneiderman, because Senator Schneiderman has

        24       been there giving his legal support and

        25       fighting since day one.


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         1                  Saying that, saying that, I have to

         2       say that I'm afraid -- I'm concerned that the

         3       one-plus billion dollars that is going to the

         4       City of New York for education will never get

         5       to our community.  When you see all the groups

         6       protesting and fighting for educational money,

         7       you could look at the color of their faces and

         8       you will see that the majority are brown and

         9       black faces.  When they come to my office to

        10       lobby, brown and black faces.  When they go to

        11       the city, in all the demonstrations that I

        12       see, black and brown faces.

        13                  And you know what is the travesty

        14       of all of this?  You know what is the thing

        15       that really gets me?  That there are going to

        16       be elected officials that have been opposing

        17       this and that have done nothing to get the

        18       money, and their districts will be benefiting

        19       more than my district.

        20                  You know what the travesty is?  The

        21       travesty is that the City of New York for

        22       years is getting money, with the pretext of we

        23       need money to educate our children because

        24       children have to be educated, and they always

        25       use the black and Hispanic children to show


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         1       our suffering, our need.  But when the money

         2       gets there, our schools, our districts are

         3       always the same.

         4                  And let me tell you that when we

         5       here send money to the city and the mayor and

         6       the chancellor and everyone gets the money,

         7       they distribute the money according to the

         8       city school districts.  Here in this chamber,

         9       we only see the city as one district, one

        10       school district.  And when we vote and fight

        11       for the money, the money goes to the city as

        12       one school district.

        13                  It would be nice, Senator Smith,

        14       Senator Schneiderman, it would be nice if we

        15       could sit here:  Now, the money is going to go

        16       to these districts.  But we can't do that.  We

        17       can't do that.  The money is going to go to

        18       one school district, the City of New York.

        19       One school district.

        20                  Now the chancellor and the mayor

        21       want to get the -- oh, money.  And they're

        22       going to sit down and they're going to cut the

        23       pie there, and they're going to decide which

        24       school district gets the money.  And we have

        25       nothing to do and we have no say in that.  We


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         1       fight for the money, we protest for the money,

         2       we use our children and our suffering to get

         3       the CFE money.  But when the money gets to the

         4       city, one school district, the City of

         5       New York, and the City of New York sends the

         6       money to whatever they want.

         7                  I hope, I wish, and I pray that

         8       next year, next year when I come back here, if

         9       I come back -- and I hope to come back.  And,

        10       Senator Smith, with all due respect to you,

        11       you said that we're going to be here 10, 15

        12       years.  I'm planning to be like Senator

        13       Marchi.

        14                  (Laughter.)

        15                  SENATOR DIAZ:    So next year --

        16                  (Laughter.)

        17                  SENATOR DIAZ:    When we come back

        18       next year I hope, Senator Schneiderman, that I

        19       could come here and stand here in this chair

        20       and say:  My district was benefited, the mayor

        21       of New York took care of the black and

        22       Hispanic districts.  The chancellor took care

        23       of the black and Hispanic districts.  Ladies

        24       and gentlemen, let's fight for more money,

        25       more money, more money.


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         1                  But I'm tired of fighting for more

         2       money, I'm tired of fighting for more money,

         3       I'm tired of people using my children, my

         4       district, my suffering, my pain -- I'm tired

         5       of that.  When is it that we're going to

         6       decide that that money, education money, is

         7       going to go specifically for the district that

         8       needs the money?

         9                  So all the work that Schneiderman

        10       has done, all the work that the people in the

        11       CFE, all the people have done for many years

        12       to get this money, then we say -- excuse me, I

        13       hope you understand what I'm trying to say --

        14       then I say, for what?

        15                  Are we really caring about

        16       children?  Is the City of New York really

        17       going to care of the black and Hispanic

        18       districts?  Is this money going to be

        19       earmarked for the South Bronx, for Harlem, for

        20       Brownsville, for the areas that we really

        21       need?  Are we going to do that?  No.

        22                  They are salivating.  Give me the

        23       money, give me the money.  Show me the money.

        24       Well, Mr. Mayor, Mr. Chancellor, we are now

        25       showing you exactly what you asked.  We're


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         1       showing you some money.  Show me now how

         2       caring you are about my children in my

         3       district, about the children in the black and

         4       Hispanic community districts.  And next year,

         5       next year I hope to come here and say the

         6       mayor of the City of New York, the chancellor

         7       of the City of New York and other people in

         8       the City of New York took care of us blacks

         9       and Hispanics finally.

        10                  Mr. President, I am voting for this

        11       bill.  Yes, I am.  I'm not getting $2 billion.

        12       We're not getting $5 billion.  But we're

        13       getting enough money now to take care of some

        14       children in the South Bronx, in Harlem, and to

        15       take care of some school districts in the

        16       black and Hispanic community.  I hope that we

        17       do that, and then we'll talk about it.

        18                  So mucho gracias.  Ha sido un

        19       placer [it has been a pleasure].

        20                  ACTING PRESIDENT MORAHAN:    Thank

        21       you, Senator, for your good wishes.

        22                  Senator Malcolm Smith, on the bill.

        23                  SENATOR MALCOLM SMITH:    Thank

        24       you, Mr. President.

        25                  I do want to just raise one item


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         1       which is sort of an ancillary piece to this

         2       particular operating aid bill, and it goes to

         3       all of the businesses in the state.  We are

         4       going to be spending in this first year,

         5       according to the legislation that we passed,

         6       $2.6 billion.  In our language bill on the

         7       economic development, we had a piece for

         8       minority businesses, a disparity study, we

         9       talk about an ombudsman.  And I would just

        10       hope that many of the members around this

        11       chamber remember that, particularly in upstate

        12       New York, where they're suffering, there are

        13       small minority- and women-owned businesses up

        14       there.  They're going to have $800 million to

        15       improve the schools up there.  They need to

        16       ensure that those businesses get a fair shot

        17       of that money.

        18                  In our city, I hope that all my

        19       colleagues will recognize in the city of

        20       New York we have a large number of minority-

        21       and women-owned businesses, there will be

        22       $1.8 billion spent on improving those schools,

        23       building construction.  That is a lot of

        24       resources that can be spent and articulated in

        25       such a way that minority- and women-owned


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         1       businesses do get a part of that.

         2                  So I would only raise that so that

         3       my colleagues remember, in addition to the

         4       discussion around educating our children, as

         5       part of this new New York we need to make sure

         6       that the other side of the coin -- that is,

         7       our businesses -- have an opportunity to

         8       participate.  Not just some of the larger

         9       developers, who are quite frankly very good

        10       friends, but let's make sure that the small

        11       minority- and women-owned businesses in Tioga

        12       County, Onondaga County, just like in Brooklyn

        13       and Queens and Suffolk County, have an

        14       opportunity to participate in that

        15       $2.6 billion.

        16                  Thank you.

        17                  ACTING PRESIDENT MORAHAN:    Thank

        18       you, Senator Smith.

        19                  Senator Sampson.

        20                  SENATOR SAMPSON:    On the bill.

        21                  I just rise in support of this

        22       bill.  This bill has done some fantastic

        23       things.

        24                  But at the same time, you know, as

        25       Senator Diaz really put it, it's not about us


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         1       trying to get headlines, it's not about us

         2       trying to use education as a political

         3       vehicle.  It's about the frustration that we

         4       all face in making sure that the funds that we

         5       give to our school districts are administered

         6       to our children.  And it's the frustration

         7       every day when we come into our districts and

         8       we see our constituents, we see their children

         9       telling us that they don't have this, they

        10       don't have these resources.  This is the

        11       dilemma that we face.

        12                  You know, when we started this

        13       session we talked about we wanted to protect

        14       our children against pedophiles.  We wanted to

        15       protect our children against bullies.  But we

        16       are saying we want to protect our children and

        17       give them the maximum opportunity to get the

        18       best education possible.

        19                  Every year we talk about and we

        20       tell all our children in our district, get

        21       educated, go to school, because education is

        22       the vehicle where they can uplift themselves.

        23       But the frustration that we face is even when

        24       we put money in, sometimes it doesn't go where

        25       it needs to be.


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         1                  So on this side of the aisle it's

         2       not about politics, it's all about expressing

         3       our frustration that when money is given to

         4       our communities, we want to make sure that all

         5       students, whether you're black, brown, green

         6       or yellow, have an advantage, that we all want

         7       our children to have an advantage to do better

         8       than what we have done.

         9                  So I rise in support of this bill,

        10       and I want to congratulate Senator Saland and

        11       also Senator Oppenheimer for working hard, and

        12       also Senator LaValle for working hard.

        13       Because education is the only component where

        14       we can really shorten the divide that is in

        15       our communities.

        16                  Thank you very much, Mr. Chairman.

        17                  ACTING PRESIDENT MORAHAN:    Thank

        18       you, Senator.

        19                  Senator Ada Smith.

        20                  SENATOR ADA SMITH:    Thank you,

        21       Mr. Chairman.  I mean Mr. President.  I'm on

        22       the "chairman" today.

        23                  I must commend the other side of

        24       the aisle for the hard work that they put into

        25       this bill, and especially for the long overdue


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         1       capital aid.

         2                  But like the other Senator Smith,

         3       that capital aid cannot benefit our

         4       communities if our children do not have the

         5       opportunity to learn, because they will not

         6       have the opportunities to partake of the

         7       benefits of being a contractor or even a

         8       subcontractor.

         9                  And we as a Legislature cannot

        10       continue to fail these young people, because

        11       it's their economic future that's at stake.

        12       And as we continue to underfund these programs

        13       and the schools in my district, the students

        14       continue to graduate ill-prepared.  But more

        15       than likely, three-quarters of them do not

        16       graduate because they do not have the proper

        17       tools.  They're sitting in classrooms that are

        18       overcrowded.  They're being taught by teachers

        19       who are not prepared.

        20                  And no matter what we do here

        21       today, I know there's never enough money.  But

        22       we are under a court mandate, and I believe

        23       that this is the one thing that we should have

        24       done in the budget.  And in good conscience, I

        25       don't know how we can possibly vote for a bill


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         1       that continues to shortchange the children of

         2       the City of New York.

         3                  ACTING PRESIDENT MORAHAN:    Thank

         4       you, Senator.

         5                  Senator Montgomery, on the bill.

         6                  SENATOR MONTGOMERY:    Yes,

         7       Mr. President.  I want to also commend the

         8       Governor for some of the proposals that came

         9       from his budget and are continued by the

        10       Legislature, agreed to by the Legislature.

        11                  And I want to especially thank

        12       Senator LaValle, Senator Saland.  Some of the

        13       pieces in the higher ed budget, especially

        14       under the higher ed opportunity programs, the

        15       increases there are extremely encouraging and

        16       important.  Because those programs in the

        17       universities and colleges supplement and

        18       complement some of the missing pieces in the

        19       high schools and middle schools and are

        20       extremely important in that respect, as well

        21       as to the college students themselves.

        22                  And I am especially pleased that we

        23       have new initiatives to enhance the capacity

        24       of teachers and middle schools to provide

        25       math, science, technology, engineering


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         1       programs for young people.  So there are some

         2       very good things in this budget, some things

         3       that I think are extremely important and I'm

         4       very supportive of.

         5                  I am also unhappy that we're not

         6       living up to the standards vis-a-vis the CFE

         7       court decision.  However, Mr. President, I do

         8       want to point to one piece in this budget that

         9       makes me extremely unhappy.

        10                  And that is on page 750 and 751 in

        11       this budget there is a list of items, and

        12       these items are not necessarily related to

        13       education, though some of them are.  They're

        14       capital items under the rubric of economic

        15       development and other projects.  They are

        16       supposed to be projects for colleges and

        17       universities, for public recreation, for arts

        18       and cultural facilities, and et cetera.

        19                  However, there is one of these that

        20       does not fit under any of those areas, and

        21       that is on line 41.  It's Atlantic Yards

        22       Railway-Nets Project, $33 million.

        23                  Now, as you know, this is a project

        24       that has been proposed, yes, but it has not

        25       been negotiated as a part of the communities


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         1       concerned.  There are many concerns that have

         2       been expressed vis-a-vis the project having no

         3       comprehensive independent cost/benefit

         4       analysis.  So we don't know exactly what is

         5       the benefit, and we -- those of us who live in

         6       that area, who have not been able to negotiate

         7       with the developer based on community

         8       concerns, believe that it will cost us way

         9       more than it will benefit.

        10                  There is no general project plan

        11       for this, as is required.  There has been no

        12       environmental impact statement.  We do not

        13       know what the extraordinary costs are going to

        14       be.  So this $33 million is a down payment on

        15       an unknown project that has not been agreed

        16       upon, has not been finalized in terms of the

        17       state's commitment to fund it, yet we have

        18       money in here.  And those capital funds come

        19       directly out of education funds.

        20                  Many of us in here have needs in

        21       our districts for school construction projects

        22       way overdue.  There is a high school missing

        23       in my district because we don't have the funds

        24       to pay for it.  Yet we are asking the State of

        25       New York to bond for $33 million, and over


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         1       30 years it will increase the cost of debt

         2       service to our state by $2.5 million a year.

         3                  So, Mr. President, this is an

         4       outrage.  This is an absolute outrage.  I

         5       think that we have a better use of our funds.

         6       We should not be asking our citizens to

         7       finance and support this kind of a project,

         8       especially since there's no way for the

         9       elected officials who represent that area to

        10       be involved in the negotiations, because it's

        11       been done entirely in the dark.

        12                  So this is wrong.  And so even

        13       though I am totally and completely in support

        14       of the education funding and the bill is good

        15       and has good things in it, I cannot in good

        16       conscience vote because this item is just

        17       absolutely unacceptable.

        18                  Thank you, Mr. President.

        19                  ACTING PRESIDENT MORAHAN:    Thank

        20       you, Senator Montgomery.

        21                  Senator Stavisky.

        22                  SENATOR STAVISKY:    Mr. President,

        23       I am delighted that the current bill accepted

        24       my floor amendment, which unfortunately was

        25       defeated when the one-house bill came before


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         1       us.  I had proposed a $35 million increase in

         2       funding for SUNY and CUNY to provide

         3       additional full-time faculty because the

         4       percentages of full time faculty at both SUNY

         5       and CUNY are at an all-time low.  At SUNY, for

         6       example, it's below 60 percent, and I think

         7       that's absolutely wrong.

         8                  The measure before us has an

         9       increase of $45 million for SUNY and CUNY.

        10       And I find that to be just indicative of the

        11       excellent, excellent higher education budget

        12       that is before us.

        13                  There are many other excellent

        14       parts -- the part-time Tuition Assistance

        15       Program, the increases in the educational

        16       opportunity programs, et cetera.

        17                  I want to mention one other item

        18       that's in this budget, and that's an

        19       appropriation which affects my district of

        20       $74,700,000.  It's to permit bonding for the

        21       new Shea Stadium.  I understand that the Shea

        22       Stadium proposal will -- the money will be

        23       used for site preparation, particularly to put

        24       in sewers, to prepare the parking lot for

        25       construction.  The new Shea Stadium is going


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         1       to be officially unveiled -- or the proposal,

         2       the plans, I believe next week.  And I think

         3       this is an excellent advance in terms of

         4       economic development.

         5                  And because of the higher education

         6       portions, because of the way it affects my

         7       district, I intend to vote for this bill.  But

         8       I must say I am terribly disappointed that the

         9       issue of operating aid is not addressed.

        10                  I find myself in great difficulty

        11       voting against a bill that I believe to be

        12       unconstitutional.  The courts have held that

        13       the method of distributing educational monies

        14       is unconstitutional.  I think we've got to

        15       make a better effort to address that issue,

        16       the issue of the Campaign for Fiscal Equity

        17       lawsuit, not as it affects New York City but

        18       as it affects every child in this state.

        19                  But on balance, Mr. President, I

        20       will vote yes.

        21                  ACTING PRESIDENT MORAHAN:    Thank

        22       you, Senator Stavisky.

        23                  Senator Schneiderman, to close.

        24                  SENATOR SCHNEIDERMAN:    Thank you,

        25       Mr. President.  On the bill.


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         1                  I'd like to follow up on Senator

         2       Stavisky's last comment, because there is a

         3       great deal that is good in this bill.  Some of

         4       it has been addressed by my colleagues.

         5       Certainly the capital aid, the resolution of

         6       that problem, which is an important component

         7       of the CFE decision, we must recognize the

         8       work done by Mayor Bloomberg in order to get

         9       us there.  Thanks to the mayor on that issue.

        10       He targeted it, he made it a political point,

        11       he used some muscle, and we're there.

        12                  The MWBE, higher ed, other good

        13       things in this bill.  But let's come back to

        14       the issue that divides this house today, which

        15       is operating aid.

        16                  And I would suggest, my colleagues,

        17       we're not fooling anyone.  You know, when it's

        18       in the newspaper, ladies and gentlemen, it's

        19       in The New York Times, it's in editorials in

        20       Syracuse, we're not fooling anyone when we

        21       tell the people of this state that we're doing

        22       everything we can to fund high-needs school

        23       districts, that we're providing the operating

        24       aid we need, we've dealt with the problem.

        25                  We've dealt with the problem?  Look


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         1       at the statistics from this year.  In the city

         2       of New York, 53 percent of our children

         3       graduate in five years.  That's now.  In the

         4       four biggest cities outside of New York --

         5       Buffalo, Rochester, Syracuse and Yonkers --

         6       55 percent of our children graduate in five

         7       years.  Is that doing our job?

         8                  This budget -- according to the

         9       Education Conference Board, this bill before

        10       us provides just enough money to keep up with

        11       inflation, $1.1 billion.  And about $1 billion

        12       is necessary to keep up with inflation in the

        13       area of operating aid.

        14                  In the city of New York, where my

        15       daughter is in public school, in the grades 4

        16       through 6 this year -- this is a recent

        17       statistic -- 57,000 kids in three grades are

        18       in classes of 30 or more.

        19                  So let's not engage in Orwellian

        20       rhetoric and tell people we've solved the

        21       problem.  We've got a problem.  Senator Diaz

        22       was absolutely right.  We have poor children

        23       whose dreams are being crushed every year

        24       because of our failure to provide operating

        25       aid.


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         1                  The second issue I need to address,

         2       and I don't want to spend a lot of time on

         3       this, is this notion that we keep saying, oh,

         4       we're not under a court order to stop

         5       violating the New York State Constitution, and

         6       that somehow makes it true.

         7                  You don't have to go through the

         8       very first section of the Court of Appeals

         9       decision, original decision affirming justice

        10       DeGrasse in the Campaign for Fiscal Equity

        11       case, clearly ruling for the plaintiffs on the

        12       claim that, quote, the state has violated the

        13       mandate of the constitution, quote, by

        14       establishing an education financing system

        15       that fails to afford New York City's public

        16       schoolchildren the opportunity guaranteed by

        17       the constitution.

        18                  This is an unconstitutional

        19       situation.  It requires courage, it requires

        20       honesty.  We are in violation of the

        21       constitution.  The Appellate Division ruling,

        22       which has been distorted all over the place in

        23       the debate here today, ladies and gentlemen,

        24       states clearly -- this is the order of the

        25       court to us -- We must act by April 1st, and


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         1       contrary to the dissent's characterizations,

         2       this directive -- I'm quoting -- does not

         3       merely urge the Governor and Legislature to

         4       consider taking action, they are directed to

         5       take action.  The matter for them to consider

         6       is whether $4.7 billion or $5.63 billion or

         7       some amount in between is the minimum

         8       additional annual funding to be appropriated

         9       for the city schools.

        10                  That is the court telling us by

        11       April 1st we are to find something, at least

        12       $4.7 billion a year, with a phase-in program.

        13                  Finally, ladies and gentlemen, this

        14       again Orwellian effort to blame the Assembly.

        15       The Assembly this year passed a multiyear

        16       plan, Assembly Bill 10256.  It's there.  They

        17       have a plan that is a multiyear plan.  I think

        18       Senator Oppenheimer's plan is a better plan,

        19       but they passed a multiyear plan.

        20                  The place we can't get this done is

        21       the Senate.  The Governor even has stood by

        22       his figure, because it came from the

        23       defendants, of $4.7 billion a year every year

        24       needed for operating aid for the city's

        25       schools.  The problem is here, ladies and


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         1       gentlemen.

         2                  So let's dispense with the

         3       rhetoric.  This issue is not going away.

         4       You've heard my colleagues.  It's something we

         5       feel passionate about.  It's personal for me.

         6       The Campaign for Fiscal Equity was formed by

         7       the parents in my district.  We still have

         8       overcrowded schools, we still have underfunded

         9       schools.  Reverend Diaz, Senator Diaz is

        10       absolutely correct that the poorest districts,

        11       the minority districts, are not necessarily

        12       getting the money when we do get it.  That is

        13       an issue that has been documented over and

        14       over again.

        15                  This year, in a special report by

        16       the Education Trust, they found this.  In the

        17       state of New York the districts with the

        18       smallest portion of minority students, black

        19       and Hispanic students, on average are getting

        20       $10,197 per student.  The districts with the

        21       largest portion of black and Hispanic students

        22       in New York State this year are getting $7,778

        23       per student.

        24                  Is that something that enables us

        25       to tell our constituents we're doing


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         1       everything we can?  I don't think so.  We are

         2       in violation of the State Constitution.  We

         3       are in violation of fundamental morality that

         4       says every child, regardless of race,

         5       regardless of the community you grow up in, is

         6       entitled to a sound, basic education.

         7                  Senator Oppenheimer's plan would

         8       resolve that.  The bill before us today does

         9       not deal with the issue of operating aid.  We

        10       are going to be coming back to this again and

        11       again and again.  There's a lot of good stuff

        12       in this bill.  Some of us feel we have to vote

        13       no.  Some of us are going to vote yes and

        14       raise the objection.

        15                  But I would my urge our colleagues

        16       and Senator Saland, who I know is always ready

        17       for negotiation and discussion, this issue

        18       will be here next week when we reconvene and

        19       it will be here every year until we fairly

        20       fund the high-needs school districts.

        21                  Thank you, Mr. President.

        22                  ACTING PRESIDENT MORAHAN:    Thank

        23       you, Senator Schneiderman.

        24                  Senator Saland, to close.

        25                  SENATOR SALAND:    Thank you,


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         1       Mr. President.

         2                  I certainly am loath to prolong

         3       what has been, I think, a very healthy

         4       expression by both sides of the aisle about

         5       their sentiments about (a) this budget and (b)

         6       CFE.  But I feel constrained to address at

         7       least some of the things that Senator

         8       Schneiderman mentioned in his closing remarks.

         9                  I would respectfully disagree

        10       that -- and clearly there's little or no

        11       authority anywhere other than the hyperbole of

        12       some of the advocates that would tell you that

        13       the Court of Appeals has ruled the State of

        14       New York's funding formula to be

        15       unconstitutional.

        16                  Clearly they said that the State of

        17       New York failed to abide by its constitutional

        18       obligation to provide a sound, basic education

        19       in certain schools in the City of New York.

        20       That is the constitutional issue that was

        21       framed by the Court of Appeals, and that's

        22       what was sent back to initially Judge DeGrasse

        23       to determine what the cost of funding that

        24       sound, basic education would be and to

        25       establish the accountability mechanism that


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         1       would ensure that those dollars were spent

         2       appropriately and in a fashion that benefited

         3       those children.

         4                  With regard to the Appellate

         5       Division decision, now I have an

         6       approximate -- it's not the reported copy, but

         7       about 50 pages' worth of decision here, of

         8       which about 30 are the majority opinion and

         9       about 20 are the dissent.  On page after page

        10       after page after page the majority relays that

        11       it believes that there are things that are

        12       appropriately for the Legislature and things

        13       that are appropriately for the courts,

        14       emphasizes the importance of the separation of

        15       powers, and takes great, great pains to say

        16       that this is a matter for the Legislature.

        17                  And it goes on, at least again in

        18       my copy, at page 29 -- and it's the same

        19       language that you heard from Senator

        20       Schneiderman earlier.  After it directs that

        21       Judge DeGrasse's order be modified on the law

        22       and the facts to vacate the confirmation of

        23       the referee's report that directs that in

        24       enacting a budget for the fiscal year

        25       commencing April 1, 2006, the Legislature and


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         1       the Governor consider -- and I emphasize the

         2       word "consider."  And I've had occasion to say

         3       time and again that that word is not my word,

         4       it's the court's word.

         5                  And certainly "consider" is, I

         6       think, consistent with the idea that there is

         7       a separation of powers, there are functions

         8       for the court and functions for the

         9       Legislature and the Governor -- and consider

        10       as within the range of constitutionality

        11       required funding for the New York City school

        12       district, and goes on to say, as demonstrated

        13       by the record, in an amount of $4.7 billion to

        14       $5.63 billion.

        15                  It also in that section goes on to

        16       talk about capital, and again couches its

        17       decision in terms of a $9.179 billion award

        18       and does that by also adding language, I

        19       believe something to the effect of -- and I

        20       can't get to it -- "or otherwise satisfies the

        21       city schools."

        22                  I would merely submit to you that

        23       the interesting thing about this from a

        24       professional context, when you read all the

        25       decisions, I was saddened on the part of the


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         1       state to read that the defendant, the

         2       Governor, as represented by the Attorney

         3       General, never proffered any evidence to

         4       refute the CFE proposal with respect to

         5       capital, which regrettably is tantamount to a

         6       default.  But nonetheless, it was a bit

         7       troublesome to read that in the decision.

         8                  But be that as it may, that's what

         9       we have to deal with and that's what I believe

        10       we've effectively dealt with.

        11                  So I would merely conclude by

        12       pointing out a couple of other things.  Number

        13       one, it's one thing to pass a multiyear budget

        14       bill.  We have done that in this house.  The

        15       Assembly has done it in their house.  It's a

        16       vastly different thing to try and negotiate

        17       or, on the other side of the coin, to refuse

        18       to negotiate a multiyear bill to deal with

        19       this CFE issue.

        20                  One is public, one is for purposes

        21       perhaps of attaining the public high ground

        22       for purposes of being able to posture to the

        23       folks in a particular constituency.  But where

        24       the rubber hits the road and people want to

        25       come to the table, it's, as I've said


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         1       previously, awfully lonely to be there by

         2       yourself.

         3                  And I don't quite recall the

         4       statistic that Senator Schneiderman made

         5       reference to earlier.  And if I'm incorrect,

         6       I'll be very happy to stand corrected.  But I

         7       think he talked about a disparity in funding

         8       in school districts in which there are

         9       significant amounts of minority students.

        10                  And you heard me mention a bit

        11       earlier that within the deciles of state aid,

        12       the highest -- which might include some of the

        13       districts, perhaps, in districts such as you

        14       might find in Westchester, in districts

        15       perhaps such as you might find in Nassau or on

        16       Long Island -- get the lowest amount.  I mean,

        17       it is a progressive system.

        18                  So if you're an average district,

        19       as New York City is, you fall somewhere in the

        20       middle.  If you're an upstate district, a poor

        21       rural district in which you're getting $9,000,

        22       perhaps, and 90 percent or more of your

        23       funding, or something close to 90 percent, or

        24       mid to high 80s is coming from the state,

        25       well, in those districts you're not going to


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         1       find, for whatever reason, as high of a

         2       minority population as you might find further

         3       downstate or in some of our larger urban areas

         4       or in some of our suburban areas.  That's just

         5       a function of demographics.

         6                  So I'm not quite sure what validity

         7       that data offers in terms of finding some kind

         8       of meaningful sample.  It basically is saying

         9       in New York there are some very poor rural

        10       districts that receive a lot of money that

        11       don't have many minority students.  And I have

        12       no idea what the data would tell me on the

        13       other end -- it wasn't offered -- as to what

        14       happens in some of those more affluent

        15       districts that are receiving some relatively

        16       modest amounts of state aid.

        17                  With that, Mr. President, I will

        18       once again indicate my support for the bill,

        19       and thank you for your patience.

        20                  ACTING PRESIDENT MORAHAN:    Thank

        21       you, Senator.

        22                  Debate is closed.

        23                  The Secretary will read a

        24       substitution.

        25                  THE SECRETARY:    Senator Johnson,


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         1       from the Committee on Finance, moves to

         2       discharge Assembly Bill Number 9558B and

         3       substitute it for the identical Senate Bill

         4       Number 6458C, Third Reading Calendar 500.

         5                  ACTING PRESIDENT MORAHAN:    The

         6       substitution is ordered.

         7                  Ring the bells.

         8                  Read the last section.

         9                  THE SECRETARY:    Section 2.  This

        10       act shall take effect immediately.

        11                  ACTING PRESIDENT MORAHAN:    Call

        12       the roll.

        13                  (The Secretary called the roll.)

        14                  ACTING PRESIDENT MORAHAN:

        15       Senator Bonacic, to explain his vote.

        16                  SENATOR BONACIC:    Thank you,

        17       Mr. President.

        18                  When I spoke on the bill, I had

        19       talked of a commission looking into an

        20       alternate means of funding education other

        21       than the property tax.  I've just been advised

        22       that that provision has been deleted in the

        23       Assembly education bill, which is going to be

        24       voted on later today.

        25                  Needless to say, I'm very


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         1       disappointed.  But I would like to say that

         2       the challenge to change the way we fund

         3       education is going to have to rest with us in

         4       this house.

         5                  And I would welcome the support of

         6       any senator who wants to work with me and our

         7       other colleagues in attaining this goal of

         8       finding an alternate means of funding

         9       education.

        10                  Thank you, Mr. President.

        11                  ACTING PRESIDENT MORAHAN:    Thank

        12       you, Senator Bonacic.

        13                  Senator Stachowski, to explain his

        14       vote.

        15                  SENATOR STACHOWSKI:    Mr.

        16       President, I just rise in support of this

        17       bill.  I'm planning on voting for it.

        18                  I think that with the largest

        19       increase that we've ever had for education,

        20       albeit it not enough for the court case, it

        21       will be very helpful in the districts.  And

        22       all the school districts that I represent,

        23       they're looking forward to it.

        24                  The higher education institutions

        25       are tickled with the treatment that they got


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         1       in this year's budget.  It's so good to see

         2       some full-time positions going back into SUNY

         3       after years of trying to get that done.

         4                  And to help with all the other

         5       programs we help with in education this year,

         6       I think it's a credit to the people in the

         7       Legislature and I congratulate everybody

         8       involved in the conference committees.

         9                  Thank you.

        10                  ACTING PRESIDENT MORAHAN:    Thank

        11       you, Senator.

        12                  Senator Parker, to explain his

        13       vote.

        14                  SENATOR PARKER:    Thank you,

        15       Mr. President.

        16                  I'm unfortunately going to have to

        17       vote no on this bill.  I think there's a lot

        18       of good things, particularly as it relates to

        19       higher education, that's being done.

        20                  But I've heard people say that they

        21       believe these provisions that are being made

        22       here in the language bill and then later on in

        23       the budget bill are going to somehow fulfill

        24       the requirements of CFE.  No one can possibly

        25       think that.  This is nothing further from the


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         1       truth.

         2                  The lawsuit and the problems that

         3       we deal with fundamentally have to do with the

         4       formula.  It is unfair for New York City's

         5       schoolchildren that denies them really an

         6       access not just to an education now but to

         7       really be a productive future.  And I'm really

         8       saddened by that.

         9                  And I really think we need to do

        10       much better than we're doing.  I think that

        11       the members, you know, who live in New York

        12       City, you know, really ought to oppose this

        13       measure.  This bill does not take us nearly

        14       where we need to be on school finance.

        15                  My only regret in voting no on this

        16       is I only have one no vote to cast for the

        17       children of New York City, my district, and

        18       the children of the state.

        19                  ACTING PRESIDENT MORAHAN:    Thank

        20       you, Senator.

        21                  Senator DeFrancisco.

        22                  SENATOR DeFRANCISCO:    Yes, I

        23       think that -- I too rise in favor of this

        24       bill.

        25                  And I think it's very important not


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         1       only to recognize that this is a record

         2       spending on education, but as people are going

         3       around the state criticizing the Senate and

         4       the Assembly how much they spent on this

         5       year's budget, I think it's really important

         6       to note that if we did not use the surplus in

         7       a responsible way by aiding the school

         8       districts to educate our children, then the

         9       alternative was astronomical property-tax

        10       increases throughout the state.

        11                  So I think it's not only a

        12       wonderful thing for all our children

        13       throughout the state, but also this bill

        14       substantially relieves the pressure on local

        15       property taxpayers in the State of New York.

        16       And I think for both reasons it was a wise use

        17       of a substantial portion of the surplus that

        18       the State of New York had this year.

        19                  I vote aye.

        20                  ACTING PRESIDENT MORAHAN:    Thank

        21       you, Senator.

        22                  Senator Meier.

        23                  SENATOR MEIER:    Thank you,

        24       Mr. President.  Briefly to explain my vote.

        25                  I don't want to lose sight of the


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         1       fact that within this budget we fund a number

         2       of programs under the Office of Children and

         3       Family Services.  And earlier this year the

         4       attention of this body and of this whole state

         5       was riveted by the tragic case of Nixzmary

         6       Brown and by some other cases around this

         7       state where some children were horribly and

         8       tragically abused and even murdered.

         9                  And this Senate has been responsive

        10       to that ongoing concern, and we've reacted in

        11       a very positive way.  Contained in this budget

        12       bill is additional money for Child Protective

        13       Services, additional money for people and for

        14       technology so that we can reduce Child

        15       Protective Service worker caseloads.  There's

        16       additional money in here to extend and expand

        17       the services of child advocacy centers, which

        18       are on the front lines in a very

        19       child-friendly way, a multidisciplinary

        20       approach to combatting child abuse, and

        21       additional supports out there for child

        22       protective workers and for those who are

        23       mandatory reporters.

        24                  These are positive investments in

        25       protecting the children of this state and


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         1       particularly those who are really without

         2       friends, without anyone to look after them.

         3       It's something this Senate should be proud of,

         4       because these were Senate initiatives.

         5                  Mr. President, I vote aye.

         6                  ACTING PRESIDENT MORAHAN:    Thank

         7       you, Senator.

         8                  Announce the results.

         9                  THE SECRETARY:    Those recorded in

        10       the negative on Calendar Number 500 are

        11       Senators Duane, Parker, Sabini, Savino,

        12       Schneiderman, Serrano, and A. Smith.  Also

        13       Senator Montgomery.

        14                  Ayes, 53.  Nays, 8.

        15                  ACTING PRESIDENT MORAHAN:    The

        16       bill is passed.

        17                  Senator Bruno.

        18                  SENATOR BRUNO:    Mr. President,

        19       can we at this time take up Calendar Number

        20       495.

        21                  ACTING PRESIDENT MORAHAN:    The

        22       Secretary will read.

        23                  THE SECRETARY:    In relation to

        24       Calendar Number 495, Senator Johnson moves to

        25       discharge, from the Committee on Finance,


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         1       Assembly Bill Number 9553C and substitute it

         2       for the identical Senate Bill Number 6453C,

         3       Third Reading Calendar 495.

         4                  ACTING PRESIDENT MORAHAN:    The

         5       substitution is ordered.

         6                  The Secretary will read.

         7                  THE SECRETARY:    Calendar Number

         8       495, Assembly Budget Bill, Assembly Print

         9       Number 9553C, an act making appropriations for

        10       the support of government:  Education, Labor

        11       and Family Assistance Budget.

        12                  SENATOR MONTGOMERY:    Explanation.

        13                  ACTING PRESIDENT MORAHAN:

        14       Senator Johnson, an explanation has been

        15       requested.

        16                  SENATOR JOHNSON:    Yes,

        17       Mr. President.

        18                  Well, you know, we've had quite a

        19       long conversation on the Article VII bill,

        20       which of course included all the

        21       appropriations under this bill.  The

        22       explanations by Senator Saland and Senator

        23       LaValle about higher education and elementary

        24       education, and all the other conversations,

        25       demonstrated to me that everyone here knows


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         1       what's in this bill.  And I'm sure they're

         2       going to support it.

         3                  Thank you.

         4                  ACTING PRESIDENT MORAHAN:    Thank

         5       you, Senator.

         6                  Any other Senator wish to be heard?

         7                  Senator Krueger.

         8                  SENATOR LIZ KRUEGER:    Thank you,

         9       Mr. President.  On the bill.

        10                  ACTING PRESIDENT MORAHAN:

        11       Senator Krueger, on the bill.

        12                  SENATOR LIZ KRUEGER:    Thank you.

        13                  Well, this is the appropriations

        14       language for education, labor, family

        15       assistance.  So not to belabor the previous

        16       debate, while I ultimately voted for the

        17       language bill, clearly I'm on record that we

        18       failed to do what we were supposed to in

        19       operating aid for education or for addressing

        20       fair funding formulas or meeting our

        21       obligations to the courts.

        22                  But having said that, and having

        23       the same concerns within this bill, I would

        24       like to highlight some issues within this

        25       bill, the good and the bad.


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         1                  I want to applaud the fact that

         2       this is a good bill for higher education.  It

         3       holds the line on tuition for CUNY and SUNY.

         4       It restores the Governor's TAP cuts.  It

         5       enhances TAP to include funding for eligible

         6       part-time students.  It provides an additional

         7       $167 million for SUNY and CUNY operating aid.

         8       It increases funding for the state's community

         9       colleges.  It increases opportunity programs

        10       funding by 10 percent.  It increases funding

        11       for full-time faculty at SUNY and CUNY.  It

        12       increases funding for independent colleges

        13       through Bundy aid.  And it has a long list,

        14       totalling $700 million, in capital grants to

        15       help SUNY and CUNY campuses move forward with

        16       the desperate need they have for construction

        17       efforts, both to upgrade their buildings to be

        18       21st century buildings for higher education

        19       and also to deal with the fact that they have

        20       growing student populations and some of them

        21       have literally outgrown their campuses.  So

        22       that's the good news.

        23                  I think also good news is the fact

        24       that we expanded money for public libraries,

        25       both in aid to public libraries and in library


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         1       construction.  We've talked about school

         2       construction in the previous debate and the

         3       fact that there's $1.8 billion more for the

         4       City of New York, $400 million for more

         5       high-needs school districts outside the city,

         6       and $400 million for remaining school

         7       districts to be distributed on a per-pupil

         8       basis.

         9                  But I would like to highlight,

        10       there's a little flaw with the concept of

        11       distributing construction money on a per-pupil

        12       basis, because it makes the assumption that

        13       you're all starting at the same place.  And of

        14       course we know that in various high-needs

        15       versus low-needs districts in the state of

        16       New York, we're not starting at the same place

        17       place.  So under this formula, school

        18       districts that have no additional need for

        19       expanded school space will still get a

        20       per-pupil allotment for school construction.

        21                  So again, just for the record,

        22       school construction distributed under unfair

        23       funding formulas is no better for the State of

        24       New York than school operating monies

        25       distributed under an unfair funding formula.


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         1                  In the Office of Children and

         2       Family Services -- and Senator Meier already

         3       got up to speak about some of the issues, and

         4       he's done a very good job as the chair of that

         5       committee.  And I am very, very happy that yet

         6       again the Legislature has, I think for the

         7       fourth year, rejected the Governor's

         8       ill-thought-through proposals to have full

         9       family sanction, do away with earned income

        10       disregards for people on public assistance who

        11       are working.  We have rejected his proposals

        12       to take income support away from families who

        13       have SSI household members, whether it be

        14       adults or children, people with special needs

        15       who are disabled.  And under the Governor's

        16       proposal, we would have been reducing the

        17       income to these desperately poor families with

        18       special-needs family members.

        19                  Again, we have rejected any number

        20       of the Governor's bad proposals and reinserted

        21       the funding to make sure that these policy

        22       changes don't go forward.

        23                  I do want to highlight, however,

        24       that we have yet to address the fundamental

        25       question of what happens with $1.3 billion in


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         1       TANF federal appropriations.  And I know that

         2       we'll be coming back to deal with these

         3       issues.  But again, the limitations of our

         4       ability to change the Governor's budget

         5       resulted in our simply removing that

         6       $1.3 billion surplus in TANF, as opposed to

         7       having serious debate over how it is spent.

         8       And we must come back to the table and discuss

         9       that, hopefully starting next week.

        10                  I would also like to highlight that

        11       there is a section of this bill -- excuse me,

        12       I have to not skip over the fact that I am

        13       disappointed we continue to expand the STAR

        14       rebate program and accept the Governor's aid

        15       to localities STAR program in its entirety.

        16                  Again, my colleagues often talk

        17       about the unequal burden of property taxes,

        18       often forgetting some parts of the state have

        19       local income taxes as well as property taxes.

        20       But we also often gloss over the fact that we

        21       have a system where we've got an inequitable

        22       reimbursement system on property taxes, called

        23       the STAR program, that dramatically

        24       shortchanges both people in cities and

        25       particularly renters versus homeowners, who


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         1       are most likely to be in the large cities of

         2       the state of New York and are

         3       disproportionately our lowest-income

         4       New Yorkers.

         5                  So in fact expansion of the STAR

         6       program continues to inequitably rebate monies

         7       that we then do not have in the state budget

         8       and continues to shift our state taxation

         9       policy in the whole from a progressive to a

        10       regressive model of taxation, which affects

        11       people in every single one of our districts.

        12       It's driven by whether or not your income is

        13       higher or lower.  And in a regressive tax

        14       model, which the State of New York has and

        15       continues to move towards, lower-income

        16       New Yorkers are disproportionately burdened

        17       with a higher share of taxes compared to their

        18       income than higher-income New Yorkers.  And

        19       this bill fails to address or attempt -- it

        20       doesn't even attempt to address the inequity

        21       there.

        22                  I'd now like to bring my

        23       colleagues' attention to the last pages of

        24       this bill, starting at page 739.  Because

        25       starting at page 739, we stop dealing with


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         1       education, labor and family assistance

         2       appropriations, even though that's the title

         3       of the bill, and we go into a series of

         4       chapter amendments to other bills we did

         5       earlier in the week and large sums of money to

         6       be bonded out for various economic development

         7       operating and capital projects.

         8                  And so one of my concerns is what's

         9       it doing in this budget bill?  I'll tell you

        10       the answer.  We know the answer.  These were

        11       the items that were left to the last minute

        12       for the mother ship to make determinations on.

        13       All the other bills had already gone to print,

        14       and so this was the only bill left to deal

        15       with any of these issues on.

        16                  I just think it's a questionable

        17       model of budgeting to put all the other items

        18       that were unresolved into the final pages,

        19       starting at page 739 and going through page

        20       755, for those of you who might not have read

        21       all through the budget bills, that this is

        22       where we're dealing with hundreds of millions

        23       of dollars of additional money.

        24                  Could I ask for -- Mr. President.

        25       Could I ask for a little more quiet, please,


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         1       Mr. President.

         2                  (Laughter.)

         3                  ACTING PRESIDENT MORAHAN:    Take

         4       the conversations out of the chamber, please.

         5       A little respect for Senator Krueger as she

         6       closes her speech on the bill.

         7                  SENATOR LIZ KRUEGER:    I hope my

         8       colleague is okay.

         9                  For the record, no one's laughing

        10       at my request for order.  There was something

        11       else going on in the chamber.

        12                  Thank you, Mr. President.  To

        13       continue.

        14                  ACTING PRESIDENT MORAHAN:    What

        15       page are we on here?

        16                  (Laughter.)

        17                  SENATOR LIZ KRUEGER:    Thank you,

        18       sir.  They were laughing at my request for

        19       order?  Oh, all right.

        20                  So in this bill we do add

        21       $475 million for capital projects requested by

        22       the Governor.  We do have $387 million

        23       additional line items in capital project

        24       appropriations.  We do have $15 million for

        25       energy conservation, $15 million for something


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         1       called an International Nanotechnology

         2       Photovoltaic Center.

         3                  Here's my questions to us all,

         4       Mr. President.  Even though it's line-itemed

         5       out, there is far more money line-itemed out

         6       in this budget bill than in previous years.

         7       And I applaud the fact that we're not doing

         8       memorandum of understanding budget language

         9       this year.  I take it as a personal victory,

        10       after my raising these concerns over and over

        11       again, that despite the fact that we

        12       reappropriated $2.3 billion in MOU deals the

        13       other day, there are no new MOU deals in this

        14       year's budget.

        15                  I would be happier if we hadn't

        16       created in its stead some new language where,

        17       rather than MOUs to be determined at a later

        18       date by agreement by three individuals, MOUs

        19       that we, the public and the Legislature, can't

        20       get access to copies of, we've replaced that

        21       with new language.  Quote, from page 751:

        22       "other projects to be determined pursuant to a

        23       plan to be developed by the Temporary

        24       President of the Senate in consultation with

        25       the Director of the Budget," "other projects


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         1       to be determined pursuant to a plan to be

         2       developed by the Speaker of the Assembly in

         3       consultation with the Director of the Budget."

         4                  It's certainly a different model

         5       than MOUs, but I don't think I would argue

         6       it's a better model in budget policy to simply

         7       have lump-sum amounts of money in the millions

         8       of dollars that will be no doubt borrowed and

         9       will be determined through a plan.  Do we have

        10       a legal definition of a plan within the

        11       budget?  We never had a legal definition of an

        12       MOU within the state budget.

        13                  I also stand to publicly say that I

        14       don't think the State of New York should put

        15       money into private, for-profit sporting

        16       facilities.  I've said it over and over again,

        17       and I will continue to make the argument that

        18       in the absence of adequate money for

        19       schoolchildren, for hospitals and healthcare,

        20       for public transportation and for public

        21       safety, I can see no justification for a

        22       $33 million capital line item for the next

        23       project in Brooklyn.  I can see no

        24       justification for a $5 million line item for

        25       a -- excuse me, I forgot the name of the


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         1       group -- for the Rochester Rhinos.  I can see

         2       no -- no disrespect to the team.

         3                  I can see no justification for

         4       $74.7 million for the Mets in Queens.  I can

         5       see no justification for $74.7 million for the

         6       Yankees in the Bronx.  These are private,

         7       for-profit sporting facilities.  Just as I

         8       spoke out against any special deals for the

         9       Jets last year, I would argue this is a not

        10       good use of taxpayers' money.

        11                  I will also raise one more question

        12       to be thought through by my colleagues.  Many

        13       of these line items are to private companies.

        14       There's $20 million for an ethanol factory,

        15       $15 million for a nanotechnology photovoltaic

        16       center.  Apparently we are in the venture

        17       capital business here in New York State.  So I

        18       ask the question, do our constituents get

        19       shares in the company?  Do we get royalties to

        20       return to our constituents?  Do we share in

        21       the patents for any scientific discoveries

        22       that private companies are making in the state

        23       of New York with our taxpayers being

        24       investors, without their actually having

        25       gotten out and chosen to be investors?


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         1                  There can be arguments for state

         2       money for economic development.  I will be the

         3       first one to say there can be justification.

         4       But if we're taking taxpayers' dollars and

         5       we're investing it in private entities whose

         6       goal, as it should be, is a bottom-line

         7       profit, where is our return on that investment

         8       and how do we justify to the people of

         9       New York that we take their tax dollars, give

        10       them to private companies, the shareholders

        11       will hopefully make money and jobs will be

        12       created but a significant percentage of the

        13       investment and investors may get nothing on

        14       the deal?

        15                  So because of the right things that

        16       are in this budget appropriation bill, I will

        17       vote for it.  But for the record, there are

        18       very serious questions about other items in

        19       this bill, what they're for, and why they are

        20       in a bill that is labeled "legislative

        21       education, labor and family assistance

        22       appropriation bill."

        23                  Thank you, Mr. President.

        24                  ACTING PRESIDENT MORAHAN:    Thank

        25       you, Senator.


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         1                  Senator Serrano, on the bill.

         2                  SENATOR SERRANO:    Thank you,

         3       Mr. President.

         4                  While I echo the concerns of my

         5       colleagues on the disturbing numbers on school

         6       funding, I rise today to speak on a very

         7       important issue to myself and to the

         8       colleagues in my conference, and that is the

         9       funding in this bill for the arts and the

        10       cultural community in the state of New York.

        11                  We all know in this chamber that

        12       the arts and culture, not only in the city of

        13       New York but throughout the state, is a

        14       tremendous economic generator.  It provides

        15       jobs in communities, it provides educational

        16       opportunities.  But more importantly, it is an

        17       economic engine and it helps communities come

        18       out of poverty and it helps generate a

        19       tremendous amount of revenue for the State of

        20       New York.

        21                  I have old numbers, so they've

        22       grown since then.  But according to the

        23       Alliance for the Arts, in 1997 the arts and

        24       the cultural community generated $13.4 billion

        25       in economic activity and 175,000 jobs


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         1       statewide.

         2                  It is one of our largest resources.

         3       It is one that we should be investing more in.

         4       Because more than it being a pillar of our

         5       society, it is a tremendous resource and a

         6       commodity for the state of New York.

         7                  And I ask my colleagues to consider

         8       the fact that we are not doing nearly enough

         9       for the arts and culture in this state and

        10       that we should think about how we can do

        11       better for arts.  With the firm understanding,

        12       as we saw with Senator Rath's roundtables over

        13       the summer, tourism roundtables throughout the

        14       state, that we have a tremendous resource

        15       untapped and we should do better.

        16                  Thank you.

        17                  ACTING PRESIDENT MORAHAN:    Thank

        18       you, Senator.

        19                  Any other Senator wishing to be

        20       heard?

        21                  The debate is closed.

        22                  Read the last section.

        23                  THE SECRETARY:    Section 2.  This

        24       act shall take effect immediately.

        25                  ACTING PRESIDENT MORAHAN:    Call


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         1       the roll.

         2                  (The Secretary called the roll.)

         3                  ACTING PRESIDENT MORAHAN:

         4       Senator Balboni.

         5                  SENATOR BALBONI:    I rise,

         6       Mr. President, because we have come to the end

         7       of the process and I believe that we should

         8       not relegate the commentary on our proceedings

         9       to the press or the so-called reformers.

        10       Their views are seen through the prism of

        11       cynicism.  And a quick scan of the last few

        12       days' press reveals their desire to tear down

        13       our results regardless of the positive impact

        14       that they may purvey.

        15                  They decry this budget as spending

        16       too much, with debt rising too fast, yet not

        17       enough spending on education and with

        18       healthcare costs out of control.  This list,

        19       my colleagues, are the gripes du jour.  I

        20       refer to them in this way not to demean their

        21       merits -- they are important issues -- but

        22       because they constitute a continuous series of

        23       complaints which emerge and fade year to year.

        24                  Gone from this year's list, you may

        25       note, are the cries of last year:  There will


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         1       be a huge deficit if you spend like this.

         2       There is no transparency in the process.  The

         3       state has unreasonably burdened local

         4       governments with mandated costs.

         5                  These issues are gone and

         6       forgotten.  We have one of the largest

         7       surpluses in our state's history, over

         8       $4 billion.  That has not warranted any

         9       mention during our budget proceedings.  We

        10       have a budget before us that was negotiated in

        11       public.  It has been on our desk for three

        12       days, and we are passing it in the light of

        13       day and on time.  And we are providing a

        14       record amount of aid to our localities.

        15                  And it is this surplus which has

        16       enabled us to do this.  Yet instead of

        17       applauding us for our stewardship, our tax

        18       cuts are decried as de minimis in effect and

        19       political in motivation.

        20                  But let us not engage in this

        21       exercise of cynicism.  Let us instead, for

        22       once, celebrate, and celebrate the fact that

        23       we have done this all together, because of the

        24       surplus we have.  And that together we have

        25       decided as a state that we should give back


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         1       some of the surplus to the overburdened,

         2       overworked, and overtaxed residents of this

         3       state.

         4                  And this is a wholly appropriate

         5       decision on our part, given our place in

         6       history, which, again, we never really refer

         7       to.  New York was the first among the

         8       colonies.  It has been one of the continuous

         9       leaders in our nation.  And this decision

        10       marks for us the decision that we choose hope

        11       over despair and hope for the process of this

        12       state and for our future.

        13                  I vote yes on this budget, as an

        14       affirmation of what we can do when we decide

        15       to do it.

        16                  Thank you, Mr. President.

        17                  ACTING PRESIDENT MORAHAN:    Thank

        18       you, Senator.  You shall be recorded in the

        19       affirmative.

        20                  Senator Fuschillo.

        21                  SENATOR FUSCHILLO:    Thank you,

        22       Mr. President.  That's certainly a tough act

        23       to follow.  I feel like rising and applauding

        24       my colleague Senator Balboni.

        25                  But we've come a long way since


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         1       January 4th, when Senator Bruno stood up on

         2       the floor, and I'll quote his words, when he

         3       recognized what has to be done.  "The people

         4       look to us to be representative of their

         5       needs, in education" -- now I have his

         6       attention -- "in healthcare, in the

         7       infrastructure of this state, in the energy

         8       costs, in the prescription drug costs.  It

         9       goes on and on and on.  And yes, to the tax

        10       ramifications that affect the quality of their

        11       lives."

        12                  "We recognize the pain out there

        13       for the people on fixed incomes, for people on

        14       moderate and low incomes, and that we must be

        15       responsive to their needs."

        16                  I can look at all these papers on

        17       my desk, as we all can, and look at

        18       significant tax cuts, educational aid, the

        19       continuing caps on Medicaid costs that will

        20       save counties throughout this state, and on

        21       and on and on.  And despite the criticism that

        22       I heard today on the floor of specific line

        23       items, the commitment to invest in the future

        24       of the state was made:  a vision for growth, a

        25       vision for excellence, and a vision for all


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         1       future generations.

         2                  I'll be voting aye.

         3                  ACTING PRESIDENT MORAHAN:    Thank

         4       you, Senator.  You will be recorded in the

         5       affirmative.

         6                  Senator Savino.

         7                  SENATOR SAVINO:    Thank you,

         8       Mr. President.

         9                  You know, it's at moments like this

        10       that I wish that we had the privilege that the

        11       Governor does, that we could vote for the

        12       parts and improve the parts of the budget we

        13       like and vote against the parts that we don't.

        14                  About a month ago I actually voted

        15       against every one-house bill that was put

        16       forward on the budget.  And in the past month

        17       there's been a lot of work done by the members

        18       of this body, in conjunction with the

        19       Assembly, in an open budget process, and we

        20       have made incredible progress.  And for that,

        21       I thank all of you.

        22                  And I voted for every budget bill

        23       that came before me today, with the exception

        24       of this one.  And I'm disturbed by the fact

        25       that I have to vote no, and I'll tell you why,


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         1       because it's really a good bill on a lot of

         2       levels.  There's a lot of good stuff in this.

         3                  As Senator Meier pointed out, the

         4       increase in aid to the Office of Children and

         5       Family Services will allow for caseload

         6       reduction in child welfare and greater

         7       training and increases in family preservation,

         8       a lot of good things there.

         9                  There's a lot of good things in the

        10       higher education budget.  We've managed to

        11       preserve TAP at its current level.  We've

        12       managed to prevent tuition increases.  We have

        13       appropriated $9 million for the College of

        14       Staten Island, which serves the needs of my

        15       district and Senator Marchi's.  We've

        16       increased aid to the Kingsboro Community

        17       College by $4.5 million, serves the needs of

        18       many of us in Brooklyn.

        19                  And on school construction capital,

        20       that's $6.5 billion is going to allow us to be

        21       able to do a couple of things in Brooklyn and

        22       Staten Island, in my district.  In Sunset

        23       Park, there's a 1600-seat high school that has

        24       been in the planning stage for years that will

        25       alleviate the overcrowding in high schools


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         1       around my district, Senator Montgomery's,

         2       Senator Andrews', Senator Parker's, and

         3       Senator Golden's.  That high school will

         4       finally get built now.

         5                  But across the bridge in Staten

         6       Island, I have two of the most overcrowded

         7       high schools in the city of New York.  Curtis

         8       High School is at 162 percent capacity,

         9       162 percent.  There's no new high school being

        10       planned for Staten Island.  Tottenville High

        11       School is at 113 percent capacity.  There's no

        12       new high school planned for the south shore of

        13       Staten Island, in spite of the fact that

        14       Staten Island is one of the fastest-growing

        15       counties in the state of New York.

        16                  And I cannot ignore that without

        17       additional operating aid, we are not going to

        18       be able to address the needs of those schools.

        19       We're not going to be able to address the

        20       needs of Fort Hamilton High School, which is

        21       150 percent capacity.  We need to address

        22       those needs.  We need to give the City of

        23       New York more operating money, as we have been

        24       directed by the Court of Appeals to do so.

        25       This budget does not do that.


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         1                  And I cannot in good conscience

         2       ignore that we have been directed by the court

         3       to provide that money to the City of New York

         4       to address the operating needs in the

         5       districts that aren't going to get capital

         6       construction projects.  I cannot in good

         7       conscience vote for this bill, and for that

         8       reason I'm voting no.

         9                  ACTING PRESIDENT MORAHAN:    Thank

        10       you.  You will be recorded in the negative.

        11                  Senator Parker.

        12                  SENATOR PARKER:    Thank you,

        13       Mr. President.  To explain my vote.

        14                  I want to just first congratulate

        15       this body on, I know, a lot of hard work on a

        16       lot of people's parts.  And on this particular

        17       bill, I want to congratulate Senator LaValle

        18       and Assemblyman Ron Canestrari, who worked

        19       together on higher education.  This is really

        20       remarkable what we've been able to do.  Both

        21       as a CUNY professor and a member of PSC-CUNY,

        22       I know how important this is going to be for

        23       all the CUNY schools and the SUNY schools

        24       around the state.  Holding the line on

        25       tuition, making sure that the TAP was restored


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         1       and that we have both accessibility and access

         2       for higher education is really, really

         3       critical.

         4                  However, what I'm afraid of is that

         5       the problem is that we're not going to be able

         6       to fill the seats in higher education at CUNY

         7       and SUNY because we won't have people who are

         8       eligible coming out of public schools because

         9       we have not done a great job there.

        10                  And I think that Senator Balboni is

        11       right, that this is a historical moment.  It

        12       is a very historical moment right now; we

        13       ought to remember it.  Because right now we're

        14       casting our votes to defy a court order.

        15       We're casting our votes to be in contempt of

        16       court of the Court of Appeals of State of

        17       New York.

        18                  You're right, we're making history.

        19       And we're sending a signal to our young people

        20       and to the children particularly of New York

        21       City that not only don't we care about your

        22       education and your life chances going forward,

        23       but we don't care about the courts and what

        24       they say.  Essentially what we've said is, you

        25       know, fine, you want a lawsuit, try to get the


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         1       money.  And I think that's the wrong message,

         2       certainly not the message I want to be sending

         3       today.

         4                  And I think again that Senator

         5       Balboni is right, that we can do anything at

         6       all that's possible if we just decide to do

         7       it.  Everything in Albany is a matter of will.

         8       And right now what we are being told is that

         9       you will not fund education, you will not

        10       listen to the court order, you will not

        11       provide the proper resources for the young

        12       people of the city of New York or the

        13       high-needs districts around the state.

        14                  And I think, you know, if people

        15       want to fall back, you know, and declare

        16       victory, and the mayor is happy to do so, if

        17       he's for some reason cut a deal with anybody

        18       in this Legislature about not providing

        19       operational dollars, shame on him.  Because at

        20       the end of the day, there are things that we

        21       need to be doing in addition to building

        22       buildings right this minute.  We need to be

        23       providing more money for English-language

        24       learner programs, we need to be finding more

        25       money for after-school programs, more money


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         1       for art, music and dance and athletics in our

         2       schools as regular parts of the curriculum so

         3       our children can be well-rounded and we're not

         4       just teaching to the test.  There's things

         5       that we need to be doing in terms of providing

         6       more language courses and more science courses

         7       and mathematics courses in our classrooms

         8       right this minute.

         9                  And so I have to vote no, despite

        10       the fact that we've done some good things with

        11       this budget.

        12                  ACTING PRESIDENT MORAHAN:    Thank

        13       you, Senator.

        14                  Senator Volker.

        15                  SENATOR VOLKER:    Mr. President,

        16       very quickly.

        17                  I want to thank Senator Bruno, my

        18       colleague here Senator LaValle, Senator

        19       Saland.

        20                  I have to tell you, I've been

        21       here -- this is my 34th budget.  And I can

        22       never remember, in all my years -- by the way,

        23       Senator Parker, New York City is getting more

        24       money for schools than it has ever gotten in

        25       the history of this state.  I believe that


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         1       school construction operation in New York City

         2       will probably take 20 years to use up all the

         3       money, the capital that's here.  It's no

         4       secret they can't build schools fast enough.

         5       They're way behind in their numbers.  It's a

         6       huge problem.  And unfortunately, that's

         7       something the mayor should deal with because

         8       it's been a problem for years.

         9                  Let me just say that as far as my

        10       region is concerned, Western New York, we've

        11       never received anything like the help that's

        12       here.  I don't believe I have ever been part

        13       of a budget that provided the kind of money we

        14       have, and not only provided the enormous

        15       amount of tax cuts but there's something in

        16       this budget I can't remember the last time.

        17                  As far as I know, there's not one

        18       single tax increase in this budget, and I

        19       don't believe there's one fee increase that

        20       I'm aware of.  And when Joe Bruno says no

        21       taxes and no fees, he means it.  And I'll tell

        22       you, we had to do some wiggling to do that,

        23       particularly in criminal justice, I can tell

        24       you.  But we took his advice.

        25                  Finally, let me say one thing more,


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         1       and that is there was another big reason why

         2       Senator Bruno had to get this done on time.

         3       And I want to thank, by the way, the Governor,

         4       because the Governor is coming into Buffalo

         5       today to announce an on-time budget.  I don't

         6       think I'm going to be there, but I really

         7       appreciate him coming into Buffalo to announce

         8       the on-time budget.

         9                  But let me just say the other

        10       reason that he needed to get it on time is

        11       because there's a particular person in this

        12       chamber who needs desperately to be in

        13       Indianapolis on Monday.  He's one of the idols

        14       of my life.  He sits right there.

        15                  He's going to be one of the

        16       officials in the final NCAA game in

        17       Indianapolis.  Which means he's one of the

        18       best officials in the country.  There's three

        19       officials, I think, and they're supposed to be

        20       the best in the country.  And I just want to

        21       say to John Cahill, he's my -- I admire him

        22       immensely.

        23                  (Applause.)

        24                  SENATOR VOLKER:    Obviously, I

        25       vote aye.


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         1                  ACTING PRESIDENT MORAHAN:

         2       Announce the results.

         3                  THE SECRETARY:    Those recorded in

         4       the negative on Calendar Number 495 are

         5       Senators Duane, Montgomery, Parker, Sabini,

         6       Savino, Schneiderman, Serrano and A. Smith.

         7                  Ayes, 53.  Nays, 8.

         8                  ACTING PRESIDENT MORAHAN:    The

         9       bill is passed.

        10                  (Cheers, applause.)

        11                  ACTING PRESIDENT MORAHAN:

        12       Senator Paterson.

        13                  SENATOR PATERSON:    Thank you.

        14       Thank you.

        15                  (Laughter.)

        16                  SENATOR PATERSON:    I think we

        17       have discussed the substantive issues.  And

        18       I'd just like to use this moment to turn the

        19       camera inward and thank Senator Bruno for all

        20       of his cooperation and help during the budget

        21       negotiations.

        22                  He's made a lot of great decisions.

        23       Maybe the greatest was appointing yours truly

        24       to the general conference committee and

        25       letting me participate in the last two


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         1       budgets, both of which passed on time.  Now

         2       I'm leaving, and I wish you all luck.

         3                  (Laughter.)

         4                  SENATOR PATERSON:    I would also

         5       like to thank Senator LaValle, Senator Volker,

         6       the very kind remarks that Senator Bonacic

         7       made about alternatives to education.

         8                  I thought honestly that the

         9       education debate here was among one of the

        10       most substantive and really outstanding

        11       persuasion on both sides of the aisle.

        12                  I would say that if I'm ever in

        13       danger -- if we restore the death penalty, if

        14       I'm ever in danger of going to the electric

        15       chair, I'm going to have Senator Saland at my

        16       side.  And I don't think they'll ever, ever

        17       put me away.  Even though I disagree with him,

        18       I admire the way he works around the

        19       constitution to make his points.

        20                  And -- but seriously --

        21                  (Laughter.)

        22                  SENATOR PATERSON:    Seriously,

        23       he's a very good friend of mine and has

        24       comported himself very well, with a lot of

        25       passion and conviction.


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         1                  And I was very proud of those in

         2       the Senate Minority, everyone who discussed

         3       and debated this budget.

         4                  My only regret is I bet Senator

         5       Bruno -- obviously not a financial bet, we'd

         6       never do that -- but bet him we'd be done by

         7       1:30, and we're not.  And so as not to delay

         8       the proceedings any further, defense rests,

         9       Mr. President.

        10                  (Laughter.)

        11                  ACTING PRESIDENT MORAHAN:

        12       Senator Bruno.

        13                  SENATOR BRUNO:    Thank you,

        14       Mr. President.  Thank you, Senator Paterson.

        15       And thank you to my colleagues here in the

        16       Senate.

        17                  Senator Paterson kept looking at

        18       his watch while Senator Krueger was talking.

        19                  (Laughter.)

        20                  SENATOR BRUNO:    And I notice it

        21       didn't do any good.  It didn't do any good.

        22                  ACTING PRESIDENT MORAHAN:

        23       Everybody was looking at their watch.

        24                  (Laughter.)

        25                  SENATOR BRUNO:    But you know


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         1       what, Mr. President and colleagues?  This is

         2       truly a proud moment for all of us.

         3                  You look at the clock, the sun is

         4       shining, it's a beautiful day.  Father Young

         5       yesterday gave us credit in the Senate for the

         6       sunshine and the beautiful weather.  We accept

         7       that fully.  I think that was in our budget

         8       bill.

         9                  (Laughter.)

        10                  SENATOR BRUNO:    Like everything

        11       else was that's of great consequence to the

        12       people of this state.

        13                  But you know what?  Really, we can

        14       be proud, all of us can be proud, because what

        15       we are doing today, on time, truly is

        16       responsive to the needs of the people of this

        17       state.

        18                  This is the Empire State, something

        19       that all of us relate to and are proud of.

        20       The people in this state are proud to be part

        21       of New York State.  We are accountable to the

        22       people.  And what we're doing here in our way

        23       is being accountable, being responsible,

        24       helping people who can't help themselves, as

        25       their representatives.


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         1                  We're investing in education,

         2       breaking records.  That's our present and

         3       that's our future.  We're investing in

         4       healthcare, where people have a right to feel

         5       good about themselves, to be well, to take

         6       care of their children, to take care of their

         7       loved ones and their neighbors.  We have a

         8       responsibility in society to do that.  And

         9       we're doing that, and we're stepping up and

        10       we're doing it right.

        11                  People have a right to expect an

        12       infrastructure, and we're investing in that.

        13       All of the other things are in this budget --

        14       and it's 112-plus, maybe 400 million, four --

        15       $112.4 billion.  And it's kind of amusing,

        16       because the numbers keep changing depending on

        17       where they come from, whether it's the Budget

        18       Division on the second floor, the Assembly,

        19       the Senate.

        20                  But colleagues in the Senate, be

        21       proud, because we're always right.  We're

        22       always right.  And what we are doing here

        23       today is right.  Senator Paterson said it

        24       right, so many of you said it.  There isn't

        25       much more to say on the substantive part of


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         1       what we're doing.

         2                  Just understand that some of you,

         3       you feel very strongly about some of what

         4       we're doing.  Some of you feel compelled to

         5       kind of focus on a negative part of

         6       112.4 billion, in the action or in the

         7       inaction.  But just be thankful, those of you

         8       that have some negativity about any part of

         9       this, that the collective judgment of this

        10       house saves you, saves you from yourselves.

        11                  (Laughter.)

        12                  SENATOR BRUNO:    So be thankful

        13       for that, okay, because you'll go out there

        14       and you'll take full credit for everything

        15       that we're doing.

        16                  (Laughter.)

        17                  SENATOR BRUNO:    There won't be

        18       anybody there to debate you.  And that's as it

        19       should be.  Because the one thing that we all

        20       respect, people have a right, you know, to

        21       express themselves, tell it like it is from

        22       their own point of view.  Don't have to be

        23       right, but we respect people's rights to say

        24       what's on their minds and how they feel.

        25       That's what we're elected to do.


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         1                  I believe there are 211 legislators

         2       functioning in this state today, and all of us

         3       can be proud because we have collectively done

         4       this.  We didn't do it by ourselves.  None of

         5       us have done any part of this.  We have been

         6       involved in the most open, public process in

         7       government in the history of this state.  And

         8       that's something for us all to be proud of.

         9                  So I want to thank my colleagues,

        10       my colleagues in leadership here, all of my

        11       colleagues on this side, my colleagues on that

        12       side.  Because today, right now, there's only

        13       one side, and that's our side here and the

        14       right side on behalf of the people of this

        15       state.

        16                  And I want to thank Speaker Silver

        17       and all of his colleagues there that relate to

        18       doing the good things that we're doing.

        19                  And I want to thank the Governor

        20       for touring the state and applauding us for

        21       having the second on-time budget.  There are

        22       some things that some people get right.  And

        23       that's one thing that they're getting right,

        24       that this is the second on-time budget.

        25                  We're going to have some


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         1       differences as we go over this next week or

         2       two.  There are going to be some differences.

         3       It's going to be publicly negotiated, publicly

         4       debate.  And when it's all said and done,

         5       we're going to do the best things that we can

         6       for the people of this state.  That's what

         7       governing is all about, differing.  Just

         8       differing.  And negotiating.  And you

         9       compromise.  And by compromising, you

        10       accomplish something.

        11                  We have accomplished a great deal

        12       today.  And as much as I might try, I feel

        13       that I have said all the things that are

        14       necessary for me to say, and thank you, and

        15       being proud.  And I just cannot talk as long

        16       as Liz Krueger.  I just can't.

        17                  (Laughter.)

        18                  SENATOR BRUNO:    So, Mr.

        19       President, I want to just conclude and wish

        20       you a healthy, safe passage as we go on into

        21       this beautiful weekend, feeling good about

        22       yourselves, everybody here that participated.

        23                  ACTING PRESIDENT MORAHAN:

        24       Senator, I couldn't help but note that Senator

        25       Krueger was just looking at her watch.


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         1                  (Laughter; applause.)

         2                  SENATOR BRUNO:    I noticed that

         3       the president was looking at his.

         4                  (Laughter.)

         5                  SENATOR BRUNO:    Mr. President,

         6       yes, you need to be relieved up there?

         7                  (Laughter.)

         8                  SENATOR BRUNO:    No, he's

         9       comfortable.  He's comfortable, Dean.

        10                  Any other business at the desk?

        11                  ACTING PRESIDENT MORAHAN:    Yes,

        12       we have some housekeeping, Senator.

        13                  SENATOR BRUNO:    Would you please

        14       take care of that.

        15                  ACTING PRESIDENT MORAHAN:

        16       Senator Nozzolio.

        17                  SENATOR NOZZOLIO:    Thank you,

        18       Mr. President.

        19                  On behalf of Senator Volker, on

        20       page number 14, I offer the following

        21       amendments to Calendar Number 295, Print

        22       Number 3353, and ask that said bill retain its

        23       place on Third Reading Calendar.

        24                  ACTING PRESIDENT MORAHAN:    The

        25       amendments are received, and the bill will


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         1       retain its position on the Third Reading

         2       Calendar.

         3                  Senator Bruno.

         4                  SENATOR BRUNO:    Mr. President,

         5       can we at this time recognize Senator

         6       Schneiderman.

         7                  ACTING PRESIDENT MORAHAN:

         8       Senator Schneiderman.

         9                  SENATOR SCHNEIDERMAN:    Thank you,

        10       Mr. President.

        11                  There is a motion at the desk.  I

        12       would like to have it called up and speak very

        13       briefly on it.

        14                  ACTING PRESIDENT MORAHAN:    The

        15       Secretary will read.

        16                  THE SECRETARY:    Senate Print

        17       1576A, by Senator Schneiderman, an act to

        18       amend the Education Law.

        19                  SENATOR SCHNEIDERMAN:    This is a

        20       motion to bring to the floor the Unintended

        21       Pregnancy Prevention Act.

        22                  This bill, which passed this house

        23       but which we failed to override the Governor's

        24       veto on before, would make it possible for

        25       New York State to provide access to emergency


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         1       contraception to thousands of women presently

         2       denied access by allowing nurses and

         3       pharmacies to dispense it without first

         4       requiring a doctor to write a patient-specific

         5       prescription.

         6                  This bill will prevent thousands

         7       and thousands of unwanted and unintended

         8       pregnancies.  It is not RU-486.  It is

         9       something that prevents pregnancy, does not

        10       terminate pregnancy.

        11                  I would urge my colleagues that we

        12       should not allow another year to go by with

        13       thousands of women being forced to get

        14       pregnant when they do not want to.  In the

        15       words of President Clinton, abortion should be

        16       safe, legal and rare.  This bill will keep it

        17       more rare.  And the Senate is the place where

        18       we need to bring the bill to the floor and

        19       muster the votes to override.

        20                  Senator Spano sponsors a similar

        21       bill.  It has passed this house before.  And I

        22       would urge all of my colleagues to vote for

        23       this motion.  Let us this year pass the

        24       Unintended Pregnancy Prevention Act and let us

        25       override, if necessary, a gubernatorial veto.


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         1                  Thank you, Mr. President.

         2                  ACTING PRESIDENT MORAHAN:    Thank

         3       you, Senator.

         4                  All those Senators in favor of the

         5       petition out of committee please signify by

         6       raising their hands.

         7                  THE SECRETARY:    Those recorded in

         8       agreement are Senators Andrews, Breslin,

         9       Connor, Coppola, Dilan, Duane, Gonzalez,

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

        11       Onorato, Oppenheimer, Parker, Paterson,

        12       Sabini, Sampson, Savino, Schneiderman,

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

        14       Valesky.

        15                  ACTING PRESIDENT MORAHAN:    The

        16       petition is not agreed to.

        17                  Senator Bruno.

        18                  SENATOR BRUNO:    Mr. President,

        19       there being no further business to come before

        20       the Senate at this time, I would move that we

        21       stand adjourned till Monday, April 3rd, at

        22       3:00 p.m., intervening days to be legislative

        23       days.

        24                  Thank you.

        25                  ACTING PRESIDENT MORAHAN:    On


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         1       motion, the Senate stands adjourned until

         2       Monday, April 3rd, 3:00 p.m., intervening days

         3       to be legislative days.

         4                  (Whereupon, at 2:17 p.m., the

         5       Senate adjourned.)

         6

         7

         8

         9

        10

        11

        12

        13

        14

        15

        16

        17

        18

        19

        20

        21

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        25


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