Regular Session - February 13, 2007

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         1                 NEW YORK STATE SENATE

         2

         3

         4                THE STENOGRAPHIC RECORD

         5

         6

         7

         8

         9                   ALBANY, NEW YORK

        10                   February 13, 2007

        11                       1:05 p.m.

        12

        13

        14                    REGULAR SESSION

        15

        16

        17

        18  SENATOR JOSEPH A. GRIFFO, Acting 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                  ACTING PRESIDENT GRIFFO:    The

         3       Senate will 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                  ACTING PRESIDENT GRIFFO:    The

        10       invocation today will be given by the Reverend

        11       Ed Jones, of Faith Assembly of God Church, in

        12       Poughkeepsie.

        13                  REVEREND JONES:    Let's bow our

        14       heads as we pray.

        15                  Heavenly Father, we ask You for

        16       wisdom, we ask You for strength, for guidance.

        17       We thank You, Lord, that Your knowledge is

        18       perfect and You understand everything.  And we

        19       pray, Lord, that You will guide the

        20       proceedings, that You will guide us in all the

        21       decisions.

        22                  We ask as well, Lord, that You will

        23       give us the grace, as we build bridges over

        24       our differences for the common good of our

        25       state.


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         1                  We pray Your blessing now on all of

         2       the proceedings, and we ask this in the strong

         3       name of our Lord and Savior Jesus.

         4                  Amen.

         5                  ACTING PRESIDENT GRIFFO:    Thank

         6       you, Pastor Jones.

         7                  Reading of the Journal.

         8                  THE SECRETARY:    In Senate,

         9       Monday, February 12, the Senate met pursuant

        10       to adjournment.  The Journal of Sunday,

        11       February 11, was read and approved.  On

        12       motion, Senate adjourned.

        13                  ACTING PRESIDENT GRIFFO:    Without

        14       objection, the Journal stands approved as

        15       read.

        16                  Presentation of petitions.

        17                  Messages from the Assembly.

        18                  Messages from the Governor.

        19                  Reports of standing committees.

        20                  The Secretary will read.

        21                  THE SECRETARY:    Senator Johnson,

        22       from the Committee on Finance, reports the

        23       following bills:

        24                  Senate Print 2728, by the Senate

        25       Committee on Rules, an act to amend the Civil


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         1       Service Law and the State Finance Law;

         2                  And Senate Print 2729, by the

         3       Senate Committee on Rules, an act to amend

         4       Chapter 113 of the Laws of 2006.

         5                  Both bills ordered direct to third

         6       reading.

         7                  ACTING PRESIDENT GRIFFO:    Without

         8       objection, the bills are ordered direct to

         9       third reading.

        10                  Reports of select committees.

        11                  Communications and reports from

        12       state officers.

        13                  Motions and resolutions.

        14                  Senator Skelos.

        15                  SENATOR SKELOS:    Mr. President, I

        16       move that we adopt the Resolution Calendar,

        17       with the exception of Resolutions 386, 454,

        18       457, and 482.

        19                  ACTING PRESIDENT GRIFFO:    With

        20       the exceptions as noted, all in favor of

        21       adopting the Resolution Calendar signify by

        22       saying aye.

        23                  (Response of "Aye.")

        24                  ACTING PRESIDENT GRIFFO:

        25       Opposed.


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         1                  (No response.)

         2                  ACTING PRESIDENT GRIFFO:    The

         3       Resolution Calendar is adopted.

         4                  Senator Skelos.

         5                  SENATOR SKELOS:    If we could take

         6       up Resolution 386, by Senator Connor, have the

         7       title read and move for its immediate

         8       adoption.

         9                  ACTING PRESIDENT GRIFFO:    The

        10       Secretary will read.

        11                  THE SECRETARY:    By Senator

        12       Connor, Legislative Resolution Number 386,

        13       commemorating the 100th Anniversary of the

        14       United Parcel Service of America, Inc., and

        15       recognizing its goodwill among the citizens of

        16       New York State.

        17                  ACTING PRESIDENT GRIFFO:    On the

        18       resolution, all in favor signify by saying

        19       aye.

        20                  (Response of "Aye.")

        21                  ACTING PRESIDENT GRIFFO:

        22       Opposed.

        23                  (No response.)

        24                  ACTING PRESIDENT GRIFFO:    The

        25       resolution is adopted.


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         1                  Senator Skelos.

         2                  SENATOR SKELOS:    Mr. President,

         3       if we could take up Resolution 454, by Senator

         4       Golden, have the title -- strike that.

         5                  If we could take up Resolution 457,

         6       by Senator Connor, have the title read and

         7       move for its immediate adoption.

         8                  ACTING PRESIDENT GRIFFO:    The

         9       Secretary will read.

        10                  THE SECRETARY:    By Senator

        11       Connor, Legislative Resolution Number 457,

        12       commemorating the Asian-American community's

        13       celebration of the Lunar New Year, 4705, the

        14       Year of the Boar, on February 18, 2007.

        15                  ACTING PRESIDENT GRIFFO:    The

        16       question is on the resolution.  All in favor

        17       signify by saying aye.

        18                  (Response of "Aye.")

        19                  ACTING PRESIDENT GRIFFO:

        20       Opposed.

        21                  (No response.)

        22                  ACTING PRESIDENT GRIFFO:    The

        23       resolution is adopted.

        24                  Senator Skelos.

        25                  SENATOR SKELOS:    Mr. President,


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         1       if we could take up Resolution 482, by Senator

         2       Larkin, have it read in its entirety, and move

         3       for its immediate adoption.

         4                  ACTING PRESIDENT GRIFFO:    The

         5       Secretary will read.

         6                  Order, please.

         7                  THE SECRETARY:    By Senator

         8       Larkin, Legislative Resolution Number 482,

         9       commemorating the 75th Anniversary of the

        10       Military Order of the Purple Heart on

        11       February 22, 2007.

        12                  "WHEREAS, It is the sense of this

        13       Legislative Body to pay tribute to those

        14       renowned organizations which devote their

        15       energy, resources and thoughtful care to

        16       improving and enhancing the quality of life

        17       for veterans; and

        18                  "WHEREAS, Attendant to such

        19       concern, and in full accord with its

        20       long-standing traditions, this Legislative

        21       Body is justly proud to commemorate the 75th

        22       anniversary of the Military Order of the

        23       Purple Heart on February 22, 2007; and

        24                  "WHEREAS, Specifically a combat

        25       decoration, the Purple Heart is awarded to


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         1       members of the armed forces of the United

         2       States who are wounded by an instrument of war

         3       in the hands of the enemy and posthumously to

         4       the next of kin in the name of those who are

         5       killed in action or die of wounds received in

         6       action; and

         7                  "WHEREAS, In 1932, the organization

         8       now known as the Military Order of the Purple

         9       Heart was formed for the protection and mutual

        10       interest of all who have received the

        11       decoration; and

        12                  "WHEREAS, Composed exclusively of

        13       Purple Heart recipients, the Military Order of

        14       the Purple Heart is the only veterans service

        15       organization comprised strictly of combat

        16       veterans; and

        17                  "WHEREAS, In addition, wives,

        18       mothers, daughters, stepdaughters and adopted

        19       daughters of Purple Heart recipients are

        20       eligible to belong to the Ladies' Auxiliary of

        21       the Military Order of the Purple Heart, which

        22       also does important work nationally and

        23       locally in veterans' hospitals; and

        24                  "WHEREAS, The mission of the

        25       Military Order of the Purple Heart is to


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         1       foster an environment of goodwill and

         2       camaraderie among combat-wounded veterans,

         3       promote patriotism, support necessary

         4       legislative initiatives, and provide service

         5       to all veterans and their families; and

         6                  "WHEREAS, Funds for welfare,

         7       rehabilitation and/or service work carried on

         8       by the Military Order of the Purple Heart are

         9       derived through the collection of used

        10       household items, the operation of thrift

        11       stores, through the donation of automobiles

        12       and, at the community level, from the annual

        13       distribution of its official flower, the

        14       Purple Heart Viola; and

        15                  "WHEREAS, It is the sense of this

        16       Legislative Body that when organizations of

        17       such noble aims and accomplishments are

        18       brought to our attention, they should be

        19       celebrated and recognized by all the citizens

        20       of the great State of New York; now,

        21       therefore, be it

        22                  "RESOLVED, That this Legislative

        23       Body pause in its deliberations to commemorate

        24       the 75th Anniversary of the Military Order of

        25       the Purple Heart on February 22, 2007; and be


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         1       it further

         2                  "RESOLVED, That a copy of this

         3       resolution, suitably engrossed, be transmitted

         4       to the Military Order of the Purple Heart."

         5                  ACTING PRESIDENT GRIFFO:    The

         6       question is on the resolution.  All in favor

         7       signify by saying aye.

         8                  Senator Larkin.

         9                  SENATOR LARKIN:    Mr. President,

        10       I'd like to open this up because, for me, this

        11       is a great, great year for us in the state of

        12       New York.  The 75th anniversary will be

        13       celebrated in New York, and at the Hall of

        14       Honor, which is located in the 39th Senatorial

        15       District.

        16                  It took us 11 years to get this

        17       facility built.  Now the nation is going to

        18       come to Stewart and then go to the Hall of

        19       Honor.

        20                  And I'd like to see it opened up

        21       for everyone to be included and paying tribute

        22       to those dedicated men and women, 1.7 million,

        23       who have received the Purple Heart.

        24                  ACTING PRESIDENT GRIFFO:    Senator

        25       Skelos.


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         1                  SENATOR SKELOS:    Mr. President,

         2       we'll put all members on the resolution.  If

         3       anybody wishes not to sponsor the resolution,

         4       they should notify the desk.

         5                  ACTING PRESIDENT GRIFFO:    So

         6       ordered.

         7                  On the resolution, all in favor

         8       signify by saying aye.

         9                  (Response of "Aye.")

        10                  ACTING PRESIDENT GRIFFO:

        11       Opposed.

        12                  (No response.)

        13                  ACTING PRESIDENT GRIFFO:    The

        14       resolution is adopted.

        15                  Senator Skelos.

        16                  SENATOR SKELOS:    Mr. President,

        17       if we could take up Resolution 454, by Senator

        18       Golden, have the title read and move for its

        19       immediate adoption.

        20                  ACTING PRESIDENT GRIFFO:    The

        21       Secretary will read.

        22                  THE SECRETARY:    By Senator

        23       Golden, Legislative Resolution Number 454,

        24       commending Jenny Hynes for her dedicated and

        25       compassionate efforts on behalf of the


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         1       Amyotrophic Lateral Sclerosis Association, and

         2       applauding her hard work and dedication in

         3       honor of her father.

         4                  ACTING PRESIDENT GRIFFO:    Senator

         5       Golden.

         6                  SENATOR GOLDEN:    Thank you,

         7       Mr. President.

         8                  I want to thank my colleagues and I

         9       rise today to pay tribute to a great

        10       New Yorker, Miss Jenny Hynes.

        11                  Nearly 70 years ago, baseball

        12       legend Lou Gehrig gave his name to a

        13       mysterious and rare disease called ALS.  On

        14       July 4, 1939, Lou Gehrig gave one of the most

        15       memorable speeches of the 20th century when he

        16       announced to a packed house in Yankee Stadium:

        17       "Today, I consider myself the luckiest man on

        18       the face of this earth."

        19                  For many of us, we became

        20       familiarized with ALS through his speech and

        21       through the motion picture "The Pride of the

        22       Yankees."

        23                  Today it is with great pride that

        24       the Senate pays tribute to Jenny Hynes and to

        25       her late father, whose life was claimed by


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         1       ALS.  In memory of her father, Jenny and her

         2       brother, Michael, decided to commemorate their

         3       father's life by selling "Never Give Up"

         4       bracelets and baseballs, enabling them to make

         5       a generous contribution to the cause.

         6                  Today's Senate resolution is a

         7       fitting tribute to Jenny's courage and to her

         8       dedication to raise funding and awareness for

         9       the ALS Association.

        10                  With Jenny and Michael and their

        11       mother, Cindy, and my good friend Judge Ariel

        12       Belen and his daughter, Lauren, I ask my

        13       colleagues to take notice of Miss Hynes and

        14       her brother, Michael, for their inspirational

        15       work to find a cure for ALS.

        16                  And I ask my colleagues, all of

        17       them, to go on this resolution if they wish

        18       and to join me in saying thank you, thank you

        19       very much for your dedication, for what you

        20       are able to do, one little person to do so

        21       much to look for a cure for ALS.

        22                  Congratulations to both of you.

        23                  (Applause.)

        24                  ACTING PRESIDENT GRIFFO:    The

        25       question is on the resolution.  All in favor


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         1       signify by saying aye.

         2                  (Response of "Aye.")

         3                  ACTING PRESIDENT GRIFFO:

         4       Opposed.

         5                  (No response.)

         6                  ACTING PRESIDENT GRIFFO:    Senator

         7       Skelos.

         8                  SENATOR SKELOS:    The resolution

         9       is adopted.

        10                  ACTING PRESIDENT GRIFFO:    Thank

        11       you.  The resolution is adopted.

        12                  SENATOR SKELOS:    If we could go

        13       to the noncontroversial reading of the

        14       calendar.

        15                  ACTING PRESIDENT GRIFFO:    The

        16       clerk will read.

        17                  THE SECRETARY:    Calendar Number

        18       37, by Senator Bruno, Senate Print 1456, an

        19       act to amend the Tax Law.

        20                  SENATOR SKELOS:    Lay it aside

        21       temporarily.

        22                  ACTING PRESIDENT GRIFFO:    Lay it

        23       aside.

        24                  THE SECRETARY:    Calendar Number

        25       41, by Senator Rath, Senate Print 678, an act


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         1       to amend the Family Court Act, in relation to

         2       orders of deposition.

         3                  ACTING PRESIDENT GRIFFO:    Read

         4       the last section.

         5                  THE SECRETARY:    Section 2.  This

         6       act shall take effect immediately.

         7                  ACTING PRESIDENT GRIFFO:    Call

         8       the roll.

         9                  (The Secretary called the roll.)

        10                  THE SECRETARY:    Ayes, 54.

        11                  ACTING PRESIDENT GRIFFO:    The

        12       bill is passed.

        13                  THE SECRETARY:    Calendar Number

        14       44, by Senator DeFrancisco, Senate Print 789,

        15       an act to amend the Estates, Powers and Trusts

        16       Law, in relation to defining.

        17                  ACTING PRESIDENT GRIFFO:    Read

        18       the last section.

        19                  THE SECRETARY:    Section 2.  This

        20       act shall take effect immediately.

        21                  ACTING PRESIDENT GRIFFO:    Call

        22       the roll.

        23                  (The Secretary called the roll.)

        24                  THE SECRETARY:    Ayes, 53.  Nays,

        25       1.  Senator Saland recorded in the negative.


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         1                  ACTING PRESIDENT GRIFFO:    The

         2       bill is passed.

         3                  THE SECRETARY:    Calendar Number

         4       52, by Senator Volker, Senate Print 566, an

         5       act to amend the Penal Law, in relation to

         6       expanding.

         7                  ACTING PRESIDENT GRIFFO:    Read

         8       the last section.

         9                  THE SECRETARY:    Section 2.  This

        10       act shall take effect on the first of

        11       November.

        12                  ACTING PRESIDENT GRIFFO:    Call

        13       the roll.

        14                  (The Secretary called the roll.)

        15                  THE SECRETARY:    Ayes, 54.

        16                  ACTING PRESIDENT GRIFFO:    The

        17       bill is passed.

        18                  THE SECRETARY:    Calendar Number

        19       62, by Senator Winner, Senate Print 946, an

        20       act to amend the Penal Law, in relation to

        21       criminal possession.

        22                  ACTING PRESIDENT GRIFFO:    Read

        23       the last section.

        24                  THE SECRETARY:    Section 2.  This

        25       act shall take effect on the first of


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         1       November.

         2                  ACTING PRESIDENT GRIFFO:    Call

         3       the roll.

         4                  (The Secretary called the roll.)

         5                  THE SECRETARY:    Ayes, 54.

         6                  ACTING PRESIDENT GRIFFO:    The

         7       bill is passed.

         8                  THE SECRETARY:    Calendar Number

         9       83, by Senator Maziarz, Senate Print 1567, an

        10       act to amend the Labor Law, in relation to

        11       allowance.

        12                  ACTING PRESIDENT GRIFFO:    Read

        13       the last section.

        14                  THE SECRETARY:    Section 2.  This

        15       act shall take effect immediately.

        16                  ACTING PRESIDENT GRIFFO:    Call

        17       the roll.

        18                  (The Secretary called the roll.)

        19                  THE SECRETARY:    Ayes, 54.

        20                  ACTING PRESIDENT GRIFFO:    The

        21       bill is passed.

        22                  THE SECRETARY:    Calendar Number

        23       110, by Senator Maziarz, Senate Print 254, an

        24       act to amend the Retirement and Social

        25       Security Law, in relation to providing.


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         1                  ACTING PRESIDENT GRIFFO:    Read

         2       the last section.

         3                  THE SECRETARY:    Section 2.  This

         4       act shall take effect immediately.

         5                  ACTING PRESIDENT GRIFFO:    Call

         6       the roll.

         7                  (The Secretary called the roll.)

         8                  THE SECRETARY:    Ayes, 54.

         9                  ACTING PRESIDENT GRIFFO:    The

        10       bill is passed.

        11                  THE SECRETARY:    Calendar Number

        12       131, by the Senate Committee on Rules, Senate

        13       Print 2131, an act to amend the Tax Law, in

        14       relation to authorizing.

        15                  ACTING PRESIDENT GRIFFO:    Read

        16       the last section.

        17                  THE SECRETARY:    Section 5.  This

        18       act shall take effect immediately.

        19                  ACTING PRESIDENT GRIFFO:    Call

        20       the roll.

        21                  (The Secretary called the roll.)

        22                  THE SECRETARY:    Ayes, 52.  Nays,

        23       2.  Senators C. Johnson and Valesky recorded

        24       in the negative.

        25                  ACTING PRESIDENT GRIFFO:    The


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         1       bill is passed.

         2                  THE SECRETARY:    Calendar Number

         3       138, by the Senate Committee on Rules,

         4       reported earlier today, Senate Print 2728, an

         5       act to amend the Civil Service Law and the

         6       State Finance Law.

         7                  ACTING PRESIDENT GRIFFO:    Read

         8       the last section.

         9                  THE SECRETARY:    Section 27.  This

        10       act shall take effect immediately.

        11                  ACTING PRESIDENT GRIFFO:    Call

        12       the roll.

        13                  (The Secretary called the roll.)

        14                  THE SECRETARY:    Ayes, 54.

        15                  ACTING PRESIDENT GRIFFO:    The

        16       bill is passed.

        17                  THE SECRETARY:    Calendar Number

        18       139, by the Senate Committee on Rules,

        19       reported earlier today, Senate Print 2729, an

        20       act to amend Chapter 113 of the Laws of 2006

        21       amending the Civil Service Law and others.

        22                  ACTING PRESIDENT GRIFFO:    Read

        23       the last section.

        24                  THE SECRETARY:    Section 28.  This

        25       act shall take effect immediately.


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         1                  ACTING PRESIDENT GRIFFO:    Call

         2       the roll.

         3                  (The Secretary called the roll.)

         4                  THE SECRETARY:    Ayes, 54.

         5                  ACTING PRESIDENT GRIFFO:    The

         6       bill is passed.

         7                  Senator Skelos.

         8                  SENATOR SKELOS:    Mr. President,

         9       if we could return to Calendar Number 37, by

        10       Senator Bruno.

        11                  ACTING PRESIDENT GRIFFO:    The

        12       Secretary will read.

        13                  THE SECRETARY:    Calendar Number

        14       37, by Senator Bruno, Senate Print 1456, an

        15       act to amend the Tax Law.

        16                  ACTING PRESIDENT GRIFFO:    Senator

        17       Krueger.

        18                  SENATOR LIZ KRUEGER:    Thank you.

        19       To explain my vote.

        20                  ACTING PRESIDENT GRIFFO:    Senator

        21       Krueger, to explain her vote.

        22                  SENATOR LIZ KRUEGER:    Thank you.

        23                  ACTING PRESIDENT GRIFFO:    Senator

        24       Krueger, can we get on a roll call first?

        25                  SENATOR LIZ KRUEGER:    Certainly,


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         1       Senator.

         2                  ACTING PRESIDENT GRIFFO:    Read

         3       the last section.

         4                  THE SECRETARY:    Section 6.  This

         5       act shall take effect immediately.

         6                  ACTING PRESIDENT GRIFFO:    Call

         7       the roll.

         8                  (The Secretary called the roll.)

         9                  ACTING PRESIDENT GRIFFO:    Senator

        10       Krueger, to explain her vote.

        11                  SENATOR LIZ KRUEGER:    Thank you,

        12       Mr. President.

        13                  So this bill is called a small

        14       business tax exemption bill, a small business

        15       assistance package.  But when you analyze it,

        16       I think you really need to think through how

        17       much of this is for small businesses, which

        18       small businesses, how are we deciding that,

        19       and, also, a fundamental question -- because

        20       annualized, this bill is projected to cost the

        21       State of New York $1.2 billion on an annual

        22       basis -- what are we cutting out of the new

        23       proposed budget to pay for it?

        24                  Because every time you make a tax

        25       cut and you cut $1.2 billion out of the state


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         1       revenue stream, you'd better come up with an

         2       alternative revenue package or know you're

         3       going to cut that money out of the budget.

         4                  So I would argue that like any

         5       other tax cut proposal or new expenditure

         6       proposal of some size, like $1.2 billion on an

         7       annual basis, this should be built into the

         8       context of the budget itself and a debate on

         9       the budget.  And that's where we should be

        10       debating tax policy.

        11                  As I've said on this floor, I also

        12       think we should be discussing tax equity and

        13       changes in our tax policy from a broad-based

        14       perspective, not picking and choosing -- today

        15       maybe we'll give this group a tax cut,

        16       tomorrow maybe we'll give this group a tax

        17       increase to pay for the tax cut we gave that

        18       group last month -- and that we need to look

        19       at our 21st-century New York State tax policy.

        20                  And yes, on the face of it, saying

        21       it's a package of assistance for small

        22       business, well, who doesn't want to stand up

        23       and say they support small business?  I want

        24       to support small business.  But when I look at

        25       this proposal, we've got $150 million for


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         1       reducing net-income base rate and gradual

         2       elimination of the corporate franchise tax on

         3       all manufacturing.  Some manufacturers are

         4       big; some are small.  I'd love to see a

         5       breakdown of which type of manufacturer

         6       actually ends up with this tax cut.

         7                  Then we've got an additional

         8       corporate franchise tax reduction of another

         9       $550 million on manufacturing companies.

        10                  So the two proposals that tie into

        11       the net-income base rate and gradual

        12       elimination of corporate franchise tax on

        13       manufacturing is $700 million, the majority of

        14       this bill.  And there's no explanation here

        15       about who are we defining as the manufacturers

        16       that would get this tax reduction.  I'm not

        17       sure they're all the small manufacturers.

        18                  Then we've got some energy credits.

        19       Well, the catch is I do recognize we need to

        20       change our energy policy in this state.  We

        21       need to expand use of alternative energy.  We

        22       need to revisit the Power for Jobs program,

        23       the NYSERDA programs, alternative energy and

        24       green energy options.

        25                  But I don't think that the answer


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         1       for energy issues in this state is some

         2       automatic cut of $350 million, when fully

         3       implemented, of energy tax credits for a

         4       certain subset of businesses.

         5                  I think we need to address energy

         6       policy and energy taxes in a much broader

         7       sense.  And my understanding is that actually

         8       on any number of days this whole house is

         9       agreed on that position, and I know that

        10       Governor Spitzer agrees on that position.  So

        11       I don't know why we're suddenly taking on

        12       today, as part of one package of tax cuts, a

        13       $350 million tax cut.

        14                  I also don't understand this

        15       concept of a STAR tax credit for small

        16       businesses.  Because as I read it, if your

        17       small business owns property, then you would

        18       get an additional tax credit rebate.  But if

        19       you're a small business that rents your

        20       offices or your facilities, I don't believe

        21       you would get any advantage from this tax

        22       credit which, annually implemented, would cost

        23       $150 million a year.

        24                  And so the same way I have spoken

        25       out about my concerns about the overall STAR


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         1       program and its inequities to people who rent

         2       versus own their own homes, I'm equally

         3       concerned of the concept of a tax exemption

         4       for small businesses who own their facilities

         5       versus rent.

         6                  One, I think it is, by definition,

         7       going to be inequitable to small businesses in

         8       urban settings that are much more likely to be

         9       renting space versus owning.

        10                  I also think it probably skews in

        11       one way or another to a small subset of small

        12       businesses statewide, those who are in the

        13       kinds of businesses who are likely to own

        14       their property versus those who are in the

        15       types of businesses who are more likely to

        16       rent their property.

        17                  So I see both geographic inequity

        18       questions and type of business.  And I think,

        19       before we decide we're going to lose

        20       $150 million in revenue and claim that this is

        21       a good deal for small businesses, we should

        22       ask the question who wins and who loses in

        23       this specific proposal.

        24                  So again, there's individual items

        25       within this bill that are perhaps things I


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         1       could support.  But it's $1.2 billion.  We're

         2       not explaining where we're going to get this

         3       money, what else we're going to cut out of the

         4       budget instead to make this deal.  And we're

         5       really not answering the questions yet who

         6       wins and who loses even within the definitions

         7       of small-business manufacturing and other

         8       businesses in the state.

         9                  I know we all want to vote for tax

        10       cuts.  These are complicated questions.  I

        11       think we need a lot more answers before we

        12       move forward.  I'm voting no, and I urge my

        13       colleagues to vote no also.

        14                  Thank you, Mr. President.

        15                  ACTING PRESIDENT GRIFFO:    Order

        16       in the chamber.

        17                  Senator Winner, to explain his

        18       vote.

        19                  SENATOR WINNER:    Thank you,

        20       Mr. President.

        21                  Certainly I understand the chagrin

        22       of the other side of the aisle that I don't

        23       know that Senator Krueger has ever met a tax

        24       cut that she likes.

        25                  But nonetheless, the area that I


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         1       represent and the small businesses I represent

         2       certainly know that doing business in New York

         3       State is certainly not a pleasant prospect

         4       these days, particularly in the upstate areas.

         5                  And certainly we understand what

         6       will happen -- what would happen if you folks

         7       were in charge.  We'd be having more taxes on

         8       small business rather than less taxes on small

         9       business, and we'd have less jobs in upstate

        10       New York rather than more jobs in upstate

        11       New York.

        12                  ACTING PRESIDENT GRIFFO:    Order.

        13                  SENATOR WINNER:    There's no

        14       question whatsoever that New York needs tax

        15       cuts in order to be successful, particularly

        16       in the upstate regions.  And we need to

        17       incentivize our small businesses, which is the

        18       backbone of the upstate economy.

        19                  You know, many of us were

        20       absolutely astonished when the Governor

        21       presented a budget after campaigning on a

        22       pledge to help the upstate economy that didn't

        23       have one thing in there for the upstate

        24       economy.  In fact, what he had in his budget

        25       was $449 million, by his own admission, of


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         1       additional taxes to businesses and other

         2       entities that provide jobs in this state.

         3                  And as a result, we're going to

         4       only bleed even worse in upstate New York with

         5       the type of leadership that Governor Spitzer

         6       is providing for this state when he turns

         7       around and on the one hand says he wants to

         8       help the upstate economy and then on the other

         9       hand turns around and wants to tax

        10       manufacturers in the upstate economy.  How

        11       does that make any sense?  It doesn't make any

        12       sense.

        13                  So the time for rhetoric and all

        14       this other nonsense is over.  The time is to

        15       put up a package that's going to help business

        16       and help upstate grow, help the economy of the

        17       state as a whole to grow, and not continue to

        18       say on the one hand I'm not for tax increases

        19       and on the other hand raise taxes and fees in

        20       the state by a couple of billion dollars.

        21       That completely is so disingenuous as to be

        22       beyond the pale.

        23                  And unfortunately, from what I can

        24       see, you folks are all in lockstep with

        25       Governor Spitzer on all of these measures.  So


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         1       as a result, I'm sure that what we're going to

         2       be looking forward to is another $2 billion in

         3       taxes and fees if you had your way.

         4                  Well, fortunately, you don't have

         5       your way.  And we're going to try to help

         6       these businesses in upstate New York, and

         7       we're going to try to help the taxpayers in

         8       this state, and we're going to grow this

         9       economy and not tax them to death.

        10                  ACTING PRESIDENT GRIFFO:    Order.

        11                  Senator Libous, to qualify his

        12       vote.

        13                  SENATOR LIBOUS:    Thank you,

        14       Mr. President.

        15                  Last week I met with a group of

        16       businesspeople in my district who had two

        17       years ago built a beautiful complex and had

        18       hired about fifty people.  They came to me not

        19       to discuss the budget, not to discuss

        20       legislation, but as small business owners they

        21       were extremely concerned that their property

        22       taxes were too high and they couldn't continue

        23       to keep their operation going.

        24                  They didn't have -- they weren't in

        25       an economic development zone, they didn't


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         1       receive any benefits.  This group of

         2       individuals actually put their hard-earned

         3       money together and invested in New York State.

         4       They invested in the Southern Tier.

         5                  They asked me why in the Governor's

         6       budget were there no incentives for small

         7       business.  If there's a commitment to help

         8       upstate New York, why wasn't there any

         9       incentives in this budget?  There were no tax

        10       cut for small businesses.  There was no growth

        11       incentives for small business.  There was no

        12       special economic zones for small business.

        13       There was absolutely nothing for small

        14       business.

        15                  Mr. President, this legislation is

        16       a step forward.  It shows a commitment from

        17       this house, it shows a commitment from this

        18       Majority that we care about small business.

        19                  And by the way, Mr. President, this

        20       just doesn't help small business in upstate

        21       New York, this helps small business

        22       everywhere.  Because what our goal here has to

        23       be is to create not jobs, but career

        24       opportunities for our constituents, career

        25       opportunities so that the money that we invest


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         1       in education -- we invest an awful lot of

         2       money in our education system, both private

         3       and public.  But what we don't invest in is

         4       opportunities to keep them in the state.

         5                  Because after they graduate from

         6       our colleges, they go to other states, they go

         7       to other parts of the country, they go

         8       globally around the world.  And we need to

         9       keep those young people here.  We need to

        10       invest.  We talk about investing in their

        11       future.  We need to invest in their future by

        12       creating career opportunities.

        13                  This legislation does that.  It not

        14       only helps the economy of upstate New York

        15       that needs it so desperately, it helps the

        16       economy of this state and it also shows the

        17       graduates of the institutions that we invest

        18       millions, millions, hundreds of millions of

        19       dollars in that we have a commitment in them.

        20                  And that the quality of these

        21       institutions which we are so very proud of,

        22       because they are great institutions, we're not

        23       continually training people so that they leave

        24       the state.  We're investing millions of

        25       dollars of taxpayer money every year so that


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         1       we train people, some of the best in the

         2       world, so that they leave this state.

         3                  This legislation is committed to

         4       keep them here in New York.  And it's about

         5       time people get on board, they understand.

         6       They understand that cutting taxes, cutting

         7       property taxes, which are too high in this

         8       state, giving small business and businesses

         9       opportunities, that's how we keep young people

        10       here, that's how we grow.

        11                  I vote aye, Mr. President.

        12                  ACTING PRESIDENT GRIFFO:    Senator

        13       Craig Johnson, to explain his vote.

        14                  SENATOR CRAIG JOHNSON:    Thank you

        15       to the chair.

        16                  I congratulate my colleagues.  I

        17       support this bill.  And I believe it's

        18       critical, being a young person in this state

        19       and having friends who can't live in Port

        20       Washington and Roslyn and Great Neck and

        21       Elmont and areas of my district and all across

        22       the state.

        23                  And I'm learning, you know, about

        24       the procedures.  But I have to wonder, and I

        25       wonder openly -- it's not a question, because


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         1       I am supporting this -- but where was this

         2       bill last year or two years ago or three years

         3       ago or 12 years ago?

         4                  We need to help small businesses,

         5       because they are facing the pressure.  But

         6       this is pressure that's been going on for

         7       almost over a decade now.  And it's a pressure

         8       that has been growing.  And it is bursting.

         9       And it's bursting in Nassau County, it's

        10       bursting in Rockland County, it's bursting in

        11       Albany County, it's bursting all across the

        12       state.

        13                  So instead of getting angry or

        14       showing passion, we need to move that aside

        15       and help the small businesses, because for

        16       years they haven't received the assistance.

        17       And we are doing that in New York State.

        18       We're looking to reduce the healthcare costs

        19       that are crippling our small businesses.

        20       We're looking to provide them with the

        21       assistance they need.  We're looking to keep

        22       people, our senior citizens in their homes,

        23       our working class in their homes, by reducing

        24       the property taxes.

        25                  But instead of pointing fingers at


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         1       a new governor, and even pointing fingers at

         2       an old governor, we need to work together to

         3       push this bill forward.  And we need to do it

         4       now, because it's the small business man and

         5       woman who are sitting in those businesses

         6       right now who don't know how am I going to pay

         7       that utility bill, how am I going to pay for

         8       that health insurance, when for over a decade

         9       they haven't gotten that help.

        10                  So I applaud the Majority Leader

        11       for sponsoring this bill.  It's about time we

        12       have some assistance for our small businesses.

        13       And I proudly cast my yes vote for this bill.

        14                  Thank you.

        15                  ACTING PRESIDENT GRIFFO:    Senator

        16       Johnson in the affirmative.

        17                  Senator Thompson, to explain his

        18       vote.

        19                  SENATOR THOMPSON:    Yeah, I wanted

        20       to sit back and listen to the debate, being

        21       from upstate New York.  And we've heard a lot

        22       about upstate for a long time.  And being

        23       someone who's been involved for a while

        24       particularly formerly running a small business

        25       development agency, I think this year we'll


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         1       really be able to see who really has a

         2       meaningful plan as relates to jump-starting

         3       the upstate economy.

         4                  I concur with my colleague, my new

         5       colleague, that there's been plenty of time to

         6       talk about what should have been done.  But

         7       this session we intend to offer not only to

         8       the Governor but also to our folks on the

         9       other side of the aisle a number of different

        10       ideas -- not just tax cuts, but policy

        11       initiatives as well -- that can help upstate.

        12                  There are a lot of issues that

        13       impact Niagara Falls, Buffalo, Tonawanda and

        14       Grand Island.  We've seen a lot of companies

        15       leave.  We've seen the population decrease.

        16       There are things that the various state

        17       economic development agencies can do to help.

        18       There are housing initiatives that need to be

        19       addressed.  There's a population decline as

        20       well, where we need to look at immigration

        21       reform so we can get some of those people that

        22       are fleeing to downstate to move upstate as

        23       well, to help address the large housing

        24       surplus upstate.

        25                  There are a number of things that


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         1       can be done beyond just what we've talked

         2       about today.  So I look forward to a real

         3       meaningful debate about what can be done to

         4       help upstate New York.  And we're going to put

         5       together some serious policies for the

         6       Governor to look at and some serious policies

         7       for our folks across the aisle to look at as

         8       well.

         9                  Thank you.

        10                  ACTING PRESIDENT GRIFFO:    Senator

        11       Thompson, how do you vote?

        12                  SENATOR THOMPSON:    I vote in

        13       support of the bill.

        14                  ACTING PRESIDENT GRIFFO:    Senator

        15       Thompson in the affirmative.

        16                  Is there any other Senator wishing

        17       to explain their vote?

        18                  Senator Diaz.

        19                  SENATOR DIAZ:    Thank you,

        20       Mr. President.

        21                  I'm reading the introduction of

        22       this bill, and it says:  "The purpose of this

        23       legislation is to implement the Senate Small

        24       Business Assistance Package.  This plan will

        25       eliminate the corporate franchise tax for


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         1       manufacturers, provide direct property tax

         2       relief checks to small businesses, provide tax

         3       relief for businesses that pay personal income

         4       tax credits for the cost of energy, and reduce

         5       the cost of doing business in New York for

         6       small businesses and farmers."

         7                  Well, Mr. President and fellow

         8       members, I am a Democrat.  And this

         9       Democrat -- and I'm speaking only for me, not

        10       for my conference -- this Democrat, this one,

        11       Reuben Diaz, who represents the 32nd

        12       Senatorial District in the Bronx, I hate tax

        13       increases.  Every time that I see anybody

        14       proposing tax cuts, that I love.  I don't like

        15       tax increases.  Our people are fed up with tax

        16       increases.

        17                  They say that we Democrats -- they

        18       say that we Democrats, there is no tax that we

        19       don't love.  But this Democrat hates tax

        20       increases.  And this one, I'm supporting this

        21       legislation because it contains tax increases.

        22       And, ladies and gentlemen -- I mean tax cuts.

        23       Sorry.  Sorry.  Slip of the tongue.  Tax cuts.

        24                  And I congratulate Senator Bruno.

        25       And whoever submits any legislation that


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         1       contains tax cuts, I will always support it.

         2       Tax increases are not good for the people of

         3       the State of New York, no matter what,

         4       especially for senior citizens.  Tax increases

         5       are hurting our economy, are hurting our

         6       people, are hurting our manufacturers, are

         7       hurting everybody.

         8                  So, ladies and gentlemen, let's

         9       stop this bickering who's at fault.  If the

        10       Republican Party submits a good bill,

        11       including tax cuts, I will support that.  If

        12       the Democratic conference submits a bill

        13       increasing the tax, I will oppose that.

        14       Whoever submits a bill that includes tax cuts,

        15       I will support.

        16                  However, let me tell you something,

        17       ladies and gentlemen.  They keep saying that

        18       we are the dysfunctional -- the most

        19       dysfunctional legislature in the country.  And

        20       that was supposed to end at Day One.  We are

        21       over Day One, and we're still fighting and

        22       being dysfunctional.

        23                  So maybe we had great hopes, when

        24       the new Governor came, to see we'd stop this.

        25       But let's stop the fights, the bickering.  The


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         1       Governor and the Legislature have to work

         2       together.  Let's do tax cuts for the State of

         3       New York, and let's legislate and stop the

         4       dysfunctional parts of the Legislature.

         5                  Thank you very much.

         6                  ACTING PRESIDENT GRIFFO:    Senator

         7       Diaz, how do you vote?

         8                  SENATOR DIAZ:    I am voting 150 --

         9       no, 250 percent in favor of tax cuts in the

        10       State of New York.

        11                  (Applause.)

        12                  ACTING PRESIDENT GRIFFO:    Senator

        13       Diaz, 250 percent in the affirmative.

        14                  Senator Sampson.

        15                  SENATOR SAMPSON:    Thank you,

        16       Mr. President.  And I too rise in support of

        17       this legislation.

        18                  I want to thank the Majority

        19       Leader.  And as my colleague next to me,

        20       Senator Diaz, says he supports tax cuts.  I

        21       pay enough in taxes, and I do support tax

        22       cuts.

        23                  This is not an upstate/downstate

        24       issue.  This is about the citizens of New York

        25       State, and that's what it's all about.  You


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         1       know, as Senator Johnson said, what happened

         2       to last year?  What happened to the anger and

         3       frustration 10 years ago?  What happened to

         4       the anger and frustration 12 years ago?

         5                  It's not about passing the buck,

         6       it's all about working together to make sure

         7       that we show small businesses in all regions

         8       of this state that we understand their

         9       frustration, their anger, and at the same time

        10       we want to pass tax cuts that are beneficial.

        11                  A lot of times we pass tax cuts for

        12       these big corporations, which we call

        13       corporate welfare.  But it's the mom-and-pop

        14       small business operations that have sustained

        15       this society, and we need to show them a sense

        16       of gratitude by supporting these tax cuts.

        17                  Thank you, Mr. President.

        18                  ACTING PRESIDENT GRIFFO:    Senator

        19       Sampson, how do you vote?

        20                  SENATOR SAMPSON:    I vote yes.

        21                  ACTING PRESIDENT GRIFFO:    Senator

        22       Sampson, in the affirmative.

        23                  Senator LaValle, to explain his

        24       vote.

        25                  SENATOR LaVALLE:    Thank you,


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         1       Mr. President.  I rise to explain my vote.

         2                  I hate to make a comment,

         3       particularly when Senator Johnson made his

         4       maiden speech here in the Senate.  But this

         5       proposal is not a Johnny-come-lately proposal

         6       but simply builds on proposals that Senator

         7       Bruno and our Majority have advocated for

         8       years.

         9                  So if we look at the record, this

        10       is just continuing in this year, 2007, a

        11       proposal that builds on prior initiatives.

        12       Whether it be in property tax relief,

        13       incentives, tax cuts, or other programs, it is

        14       one that we're building upon, but it's not

        15       just new.

        16                  I vote in the affirmative.

        17                  ACTING PRESIDENT GRIFFO:    Senator

        18       LaValle casts his vote in the affirmative.

        19                  Senator Marcellino, to explain his

        20       vote.

        21                  SENATOR MARCELLINO:    Thank you,

        22       Mr. President.

        23                  Senator LaValle eloquently stated

        24       pretty much everything I was going to state,

        25       that this bill has been here before in many


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         1       forms.  This house has a record of passing tax

         2       cuts and aid to small businesses all over the

         3       state.

         4                  If you want to know why it hasn't

         5       happened and why we're still trying to pass

         6       these bills and we don't have them in fact in

         7       complete compliance and law the way we would

         8       like them to be, I suggest we look to the

         9       other end of this building and find out why

        10       many of these bills and most of these bills

        11       have never come to the floor in the other

        12       house for a single vote.

        13                  I vote aye on this bill.  It's

        14       about time.

        15                  ACTING PRESIDENT GRIFFO:    Senator

        16       Marcellino recorded in the affirmative.

        17                  Senator Montgomery, to explain her

        18       vote.

        19                  SENATOR MONTGOMERY:    Yes, thank

        20       you, Mr. President.

        21                  I want to rise to support this

        22       legislation.  And I am hopeful because it

        23       represents in this house a commitment,

        24       hopefully on the part of those of us who are

        25       here who represent districts like mine, where


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         1       there are a number of small businesses, small

         2       manufacturing -- I have the waterfront, I have

         3       Farragut, I have Red Hook, I have Sunset Park,

         4       waterfront areas, lots of manufacturing

         5       businesses.  I hope this is going to help

         6       them.

         7                  We're now targeting the right place

         8       to have tax cuts, and we're not -- I know that

         9       I have some young people in this chamber today

        10       looking at us, and they are going to be taking

        11       back to the school where they come from,

        12       P.S. 307 in Brooklyn, they are going to talk

        13       about the fact that they heard Senators, their

        14       Senators on the floor discussing something

        15       that is very important to them and their

        16       future.

        17                  So I thank you, Mr. President, and

        18       I'm proudly going to vote yes on this

        19       legislation.  Thank you.

        20                  ACTING PRESIDENT GRIFFO:    Senator

        21       Montgomery recorded in the affirmative.

        22                  Senator Volker, to explain his

        23       vote.

        24                  SENATOR VOLKER:    Mr. President,

        25       very quickly.  I usually don't get into these


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         1       political discussions, which is what this is,

         2       but I have to tell you something.

         3                  The fellow that created a lot of

         4       this nonsense, in my opinion, was the fact

         5       that our candidate for governor, John Faso,

         6       ran around the state telling about how

         7       terrible everything was and so forth.  And a

         8       smart guy, Eliot Spitzer, stepped in and

         9       started talking.

        10                  And the editorial boards of this

        11       state, that are generally not the brightest

        12       lights in the world, paid no attention to the

        13       fact that this state has cut more taxes in the

        14       last 12 years than any state in the union by

        15       far.  Now, for some reason, they don't want to

        16       talk about the fact -- do you know that

        17       there's not one major tax that hasn't been cut

        18       in this state over the last 12 years?  No

        19       governor and no legislature has ever cut taxes

        20       the way New York has.

        21                  We've got a long way to go,

        22       although I would say to you people in New York

        23       City, you have some of the lowest real

        24       property taxes but your other taxes are very

        25       high.  It's us upstate, it's the suburban


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         1       people that have the big real property taxes,

         2       not the city.  The city is low.  Buffalo has

         3       some of the lowest real property taxes in the

         4       entire Northeast.  But see, we don't hear that

         5       stuff, because people don't talk about it.

         6                  But when you're talking about a

         7       chamber that has cut taxes and for small

         8       businesses, I'll bet you that we have

         9       suggested a hundred billion dollars in

        10       small-business taxes.  Very honestly, and I'm

        11       the first to say it, George was really great

        12       on big businesses, not quite as good on small

        13       business.  It was this house that generated

        14       all the major tax cuts on small businesses and

        15       on real property taxpayers.

        16                  In fact, my colleague Senator

        17       LaValle, who was here, he's the one that

        18       devised the STAR program, gave it to George

        19       Pataki, and Pataki picked up on it.

        20                  Now, when you talk about taxes,

        21       this state, I think we're now 11th in the

        22       country in state taxes.  This is the state.

        23       Nobody will tell you that; we're 11th.  It's

        24       overall where we're the leading taxed state in

        25       the union.  It's all downstate, below Albany.


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         1       Once you get above Albany, there's no

         2       comparison.  I mean, I live in an area whose

         3       taxes are one-third to one-fourth what

         4       Westchester is.  Probably one-fifth of Long

         5       Island.

         6                  The only reason I mention all that

         7       is it wasn't our fault that a lot of that

         8       happened.  But we don't talk about it.  It was

         9       the people there.  The people wanted great

        10       schools, they wanted to spend tons of money.

        11       But now they're looking to us.  So we need to

        12       deal with this.

        13                  The Governor tried to make a deal

        14       with New York City and said we'll cut Medicaid

        15       and we'll give more money to schools.  That's

        16       exactly what happened.  If you look at the

        17       numbers that went into school aid, you'll see

        18       that it was deducted almost exclusively out of

        19       Medicaid.  The problem with that is that hits

        20       hospitals and nursing homes.

        21                  This bill -- which I think probably

        22       will pass the other house eventually, because

        23       we've got so much money this year.  We've got

        24       such a surplus that it's a very good

        25       possibility it will.  So what we need to do is


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         1       pass these kind of bills, send them over to

         2       the Assembly, and eventually make sure they do

         3       them.  Because I believe that the Governor

         4       ultimately will have to sign some of these

         5       bills because of his pledge to cut taxes.  And

         6       that's what we have to do.

         7                  This bill has passed this house

         8       many times, by the way.  I mean, a similar

         9       bill.  But the thing is, this house --

        10       Democrats and Republicans, by the way -- we

        11       have been passing tax-cutting bills for years

        12       and years and years.  It's the other house

        13       that's had trouble with that.

        14                  So the answer is, yeah, okay, it's

        15       fine, this house doesn't have to shrink from

        16       anything.  We have stood for cutting taxes.

        17       Now we have to make sure that the other people

        18       in this Capitol do the same thing.

        19                  I vote aye.

        20                  ACTING PRESIDENT GRIFFO:    Senator

        21       Volker recorded in the affirmative.

        22                  Senator Schneiderman, to explain

        23       his vote.

        24                  SENATOR SCHNEIDERMAN:    Thank you,

        25       Mr. President.


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         1                  Like Senator Volker, I don't like

         2       to get involved in these political

         3       conversations.

         4                  (Laughter.)

         5                  SENATOR SCHNEIDERMAN:    But, you

         6       know, I am a fan of fiction, and I am a fan of

         7       fantasy fiction, and I feel that I've had a

         8       little treat here this afternoon.  We have a

         9       massive tax burden in the State of New York

        10       due to the budgets passed by this house over

        11       the last 12 years.  Let's not kid ourselves.

        12       Did the size of our government go down?  Did

        13       it get cheaper?  How are we paying for it?

        14                  We now have got a situation where

        15       we've cut some taxes, forcing increases in

        16       other taxes.  So we shoved everything off on

        17       local governments, they raised the property

        18       tax, and, oh, my God, we've got a crisis in

        19       property taxes.  We're shocked, shocked that

        20       property taxes are going up.  Why are they

        21       going up?  Because of the budgets we've passed

        22       for the last 12 years.

        23                  So let's be honest about it.  This

        24       is another bill that reduces certain taxes but

        25       does not lower the cost of government.  This


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         1       house has not been proposing budget cuts.

         2       You've been proposing tax cuts that have to be

         3       paid for somewhere.

         4                  So where are we after 12 years of

         5       moving the burden around, going further into

         6       debt and increasing the size of government

         7       every year?  We are further in debt than our

         8       state has ever been.

         9                  We have a massive tax burden

        10       distributed inequitably because we have so

        11       many loopholes and exceptions in our tax code,

        12       due to bills like this, it looks like a Swiss

        13       cheese.  As a result, while we have very high

        14       marginal tax rates in certain areas, we

        15       generate very little revenue.

        16                  So, ladies and gentlemen, let's not

        17       kid around and pound ourselves on the chest

        18       and say, We're right, we cut taxes, the

        19       Assembly are the bad guys.  Last time I

        20       looked, both majorities passed these budgets.

        21       Both majorities need to take some

        22       responsibility.

        23                  I'm glad we're having a good open

        24       dialogue about this, but we're not going to

        25       solve the problem by passing one-house bills,


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         1       railing at the Assembly, and then quietly

         2       going along and proposing more spending

         3       increases without telling the public how we're

         4       going to pay for it.

         5                  I'm going to vote for this bill in

         6       the hope that we get to the table this year

         7       with the new Governor -- who really, I think,

         8       wants more transparency -- in an effort to

         9       reduce tax rates in a real way for the people

        10       that deserve it and need it, to include means

        11       testing, to make sure that we restore some

        12       progressivity to the tax code.

        13                  But let's tone down the rhetoric,

        14       ladies and gentlemen.  The budget went up

        15       under the watch of George Pataki and the

        16       majority in this house.  Let's not pretend

        17       it's not our fault.

        18                  Thank you.

        19                  ACTING PRESIDENT GRIFFO:    Senator

        20       Schneiderman recorded in the affirmative.

        21                  Senator Duane, to explain his vote.

        22                  SENATOR DUANE:    Thank you,

        23       Mr. President.

        24                  I am reminded, as I listen to

        25       people explaining their votes on this, of


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         1       something a very wise and my very good friend

         2       Norman Adler once said to me in 1991.  He

         3       said:  "When good government and politics come

         4       together, it's perfect."

         5                  I'll be voting yes, Mr. President.

         6       Thank you.

         7                  (Laughter.)

         8                  ACTING PRESIDENT GRIFFO:    Senator

         9       Duane recorded in the affirmative.

        10                  Are there any other members who

        11       wish to explain their vote?

        12                  Senator Stavisky.

        13                  SENATOR STAVISKY:    Yes, very

        14       briefly.

        15                  If the tax picture is as rosy as

        16       Senator Volker has described it, I'm just a

        17       little confused as to why the upstate economy

        18       is in such difficulty.

        19                  And, secondly, I too am concerned

        20       about the tremendous debt that the state is

        21       undertaking, particularly -- not only the

        22       state debt, but also with the public

        23       authorities.

        24                  Nevertheless, I am optimistic, and

        25       I vote yes.


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         1                  ACTING PRESIDENT GRIFFO:    Senator

         2       Stavisky recorded in the affirmative.

         3                  Are there any other members who

         4       wish to explain their vote?

         5                  The chair recognizes Senator Alesi

         6       to close.

         7                  SENATOR ALESI:    Thank you,

         8       Mr. President.  And thank all of my

         9       colleagues, especially those who see the

        10       wisdom in voting in the affirmative on this

        11       bill.

        12                  I'm going back a few years when one

        13       of your most notable colleagues, and a very

        14       dear friend of mine, Senator Dollinger, was on

        15       the floor debating against a bill.  And after

        16       I was voting to close, he saw the wisdom of

        17       the bill that was before him and actually

        18       changed his vote.

        19                  Now, I'm not predicting that

        20       Senator Krueger is going to do that today.

        21       But hopefully, after we hear just one more

        22       reason why we should pass this bill, the

        23       Senator from New York City might decide to

        24       change her vote.

        25                  With regard to Senator Diaz,


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         1       250 percent is very much appreciated.

         2       However, a little more would have helped.

         3                  I think that what we're doing for

         4       the small businesses in this state is not just

         5       a little bit more.  It is not something that

         6       we should hope for.  It is something that we

         7       have to recognize that has been proposed in

         8       previous years.  Not collectively like this,

         9       but it has been.  And it has been fought by

        10       the other side of the aisle far too many

        11       times.

        12                  And so now I'm very encouraged to

        13       see that most of the Minority members there

        14       recognize that wherever they come from -- not

        15       upstate, not downstate -- New York State,

        16       Niagara Falls, New York City, that those

        17       members also have small business owners in

        18       their districts as well, regardless of what

        19       the business is.

        20                  Our economy in New York State

        21       survives only because we have small businesses

        22       that provide goods and services to the larger

        23       businesses that most of the time we focus on

        24       when we're talking about helping business

        25       survive.  But it is those small businesses


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         1       that hire 10 or 12 or 20 people.  It is the

         2       mom and pop that provides the goods and

         3       services that we rely on every day.

         4                  It's the taxicab driver that we

         5       helped last year when we passed a cap on the

         6       gasoline tax.  Which unfortunately some of the

         7       members on the other side voted against,

         8       thereby voting against the small businesses

         9       that they represent.

        10                  We have an opportunity here to

        11       recognize that when we give a tax benefit to

        12       major manufacturers, which is the underpinning

        13       of this bill, that we're helping all of those

        14       small businesses that provides goods and

        15       services to those large corporations, those

        16       large manufacturers.

        17                  But the rest of this package

        18       focuses on small businesses, as it rightly

        19       should, whether it's help for energy costs,

        20       whether it's help in filing your income taxes

        21       as a small business owner.  And I can speak

        22       from my own personal experience, not only as

        23       chairman of this committee and as one of the

        24       architects of this bill, but as a

        25       third-generation business owner in this state.


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         1                  It doesn't matter where this bill

         2       was last year, any more than it matters where

         3       any of you were last year.  We know where we

         4       are this year.  And this year is what's

         5       important.  This bill before us today is

         6       what's important.

         7                  This bill sends a message to

         8       business, to small businesses, to those people

         9       that struggle to make a bottom line so they

        10       can pay their mortgage, so they can pay their

        11       rent, so they can pay their kids' school

        12       tuition, so they can put gasoline in a couple

        13       of vans that deliver some bread down the road.

        14       It sends a message.  It says that we want to

        15       help small businesses.  We recognize that you

        16       have struggles every day in the marketplace,

        17       and we don't want to be part of those

        18       struggles.  We want to be part of your

        19       success.

        20                  For the life of me, I can't imagine

        21       why anybody, even on principle, would vote

        22       against this.  Because what they're saying

        23       when they say no, they're saying no to those

        24       small business people that live down the

        25       street from them, that live on the floor above


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         1       them or below them, that live across from

         2       them.  They're saying no to the people that

         3       they go in every day when they buy groceries,

         4       when they buy a newspaper, when they bring

         5       their dry cleaning -- whatever it is they're

         6       doing with those small business people, they

         7       do on a daily or weekly basis.  When you vote

         8       no, you have to look them in the face and say:

         9       I didn't want to help you because I don't know

        10       where the money is coming from.

        11                  There isn't an economist in the

        12       world that wouldn't agree with results.  And

        13       the results clearly say, time and time and

        14       time again, that when you offer tax

        15       incentives, whether reducing the corporate

        16       rate or just making a rebate on your property

        17       taxes -- which, by the way, should

        18       theoretically lower the rent for your tenants,

        19       and that's where the savings benefits are --

        20       there isn't anybody that doesn't say the

        21       results clearly show when you lower taxes, you

        22       create an environment that improves the job

        23       picture, that improves the economy, that

        24       improves commerce, which means more people

        25       working, making more money, and obviously


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         1       paying more taxes.

         2                  But what it really comes down to is

         3       this.  There are people in this state, people

         4       all over the world, that choose to become

         5       small business owners for whatever reason.

         6       They work hard.  They put their blood, sweat

         7       and tears into their business.  Because if

         8       they fail, their business fails, it's over.

         9       It's not like a big corporation where if they

        10       lose a job, they go on and find something.

        11       This is their own blood, sweat and tears

        12       that's invested.

        13                  How can we stand here with any good

        14       conscience and say we don't want to help them?

        15       How can we stand here and say we don't know

        16       where the money is coming from, even though it

        17       looks good?  How can we stand here and say we

        18       don't want to take a chance on that?

        19                  With all respect to Senator

        20       Krueger, she said she doesn't know how we can

        21       afford to do this.  I would simply say I don't

        22       know how we can afford not to.

        23                  ACTING PRESIDENT GRIFFO:    The

        24       Secretary will announce the results.

        25                  THE SECRETARY:    Those recorded in


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         1       the negative on Calendar Number 37 are

         2       Senators Hassell-Thompson, L. Krueger, and

         3       Parker.  Also Senator Perkins.

         4                  Ayes, 55.  Nays, 4.

         5                  ACTING PRESIDENT GRIFFO:    The

         6       bill is passed.

         7                  Senator Skelos, that completes the

         8       noncontroversial reading of the calendar.

         9                  SENATOR SKELOS:    Mr. President,

        10       is there any further business to come before

        11       the Senate?

        12                  ACTING PRESIDENT GRIFFO:    Not at

        13       this time, Senator Skelos.

        14                  SENATOR SKELOS:    In consultation

        15       with the Minority Leader, Senator Bruno hands

        16       up the following committee assignments and

        17       asks that they be filed in the Journal.

        18                  ACTING PRESIDENT GRIFFO:    They

        19       will be so filed in the Journal.

        20                  SENATOR SKELOS:    There being no

        21       further business to come before the Senate, I

        22       move we stand adjourned until Wednesday,

        23       February 14th, at 11:00 a.m.

        24                  ACTING PRESIDENT GRIFFO:    On

        25       motion, the Senate stands adjourned until


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         1       Wednesday, Valentine's Day, February 14th, at

         2       11:00 a.m.

         3                  (Whereupon, at 2:02 p.m., the

         4       Senate adjourned.)

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