Regular Session - August 19, 2008

                                                            5391



         1                 NEW YORK STATE SENATE

         2

         3

         4                THE STENOGRAPHIC RECORD

         5

         6

         7

         8

         9                   ALBANY, NEW YORK

        10                    August 19, 2008

        11                       3:26 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 all present to please rise

         5       and join with me as we recite the Pledge of

         6       Allegiance to our Flag.

         7                  (Whereupon, the assemblage recited

         8       the Pledge of Allegiance to the Flag.)

         9                  ACTING PRESIDENT GRIFFO:    In the

        10       absence of clergy, I ask all present to bow

        11       their heads in a moment of silence.

        12                  (Whereupon, the assemblage

        13       respected a moment of silence.)

        14                  ACTING PRESIDENT GRIFFO:    Senator

        15       Libous.

        16                  SENATOR LIBOUS:    Mr. President, I

        17       just want to state that we're now beginning

        18       regular session.

        19                  ACTING PRESIDENT GRIFFO:    We're

        20       now beginning the regular session for

        21       August 19, 2008.

        22                  The reading of the Journal.

        23                  THE SECRETARY:    In Senate,

        24       Monday, August 18, the Senate met pursuant to

        25       adjournment.  The Journal of Sunday,



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         1       August 17, was read and approved.  On motion,

         2       Senate adjourned.

         3                  ACTING PRESIDENT GRIFFO:    Without

         4       objection, the Journal stands approved as

         5       read.

         6                  Presentation of petitions.

         7                  Messages from the Assembly.

         8                  Messages from the Governor.

         9                  Reports of standing committees.

        10                  Reports of select committees.

        11                  Communications and reports from

        12       state officers.

        13                  Motions and resolutions.

        14                  Senator Libous.

        15                  SENATOR LIBOUS:    Mr. President,

        16       at this time I'd like to call an immediate

        17       meeting of the Rules Committee in Room 332,

        18       please.

        19                  ACTING PRESIDENT GRIFFO:    There

        20       will be an immediate meeting of the Rules

        21       Committee in Room 332.

        22                  SENATOR LIBOUS:    And the Senate

        23       will stand at ease temporarily.

        24                  ACTING PRESIDENT GRIFFO:    The

        25       Senate will stand at ease.



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         1                  (Whereupon, the Senate stood at

         2       ease at 3:28 p.m.)

         3                  (Whereupon, the Senate reconvened

         4       at 3:42 p.m.)

         5                  ACTING PRESIDENT GRIFFO:    The

         6       Senate will come to order.

         7                  Senator Libous.

         8                  SENATOR LIBOUS:    Mr. President,

         9       could we return to reports of standing

        10       committees, please.

        11                  I believe there's a report of the

        12       Rules Committee at the desk, and I ask that we

        13       have it read at this time.

        14                  ACTING PRESIDENT GRIFFO:    Reports

        15       of standing committees.

        16                  The Secretary will read the report

        17       of the Rules Committee.

        18                  THE SECRETARY:    Senator Skelos,

        19       from the Committee on Rules, reports the

        20       following bills:

        21                  Restored, Senate Print 175B, by

        22       Senator Alesi, an act to amend the General

        23       Business Law;

        24                  Reported, Senate Print 7014, by

        25       Senator Diaz, an act to amend the Private



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         1       Housing Finance Law and the Public Housing

         2       Law;

         3                  8738, by Senator Skelos, Concurrent

         4       Resolution of the Senate and Assembly

         5       proposing an amendment to Article 7 of the

         6       Constitution;

         7                  And Senate Print 8750, by Senator

         8       Connor, an act to amend the Alcoholic Beverage

         9       Control Law.

        10                  All bills reported direct to third

        11       reading.

        12                  ACTING PRESIDENT GRIFFO:    Senator

        13       Libous.

        14                  SENATOR LIBOUS:    Move to accept

        15       the report of the Rules Committee.

        16                  ACTING PRESIDENT GRIFFO:    All in

        17       favor of accepting the report of the Rules

        18       Committee signify by saying aye.

        19                  (Response of "Aye.")

        20                  ACTING PRESIDENT GRIFFO:

        21       Opposed, nay.

        22                  (No response.)

        23                  ACTING PRESIDENT GRIFFO:    The

        24       Rules Committee report is accepted.

        25                  Senator Libous.



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         1                  SENATOR LIBOUS:    Mr. President,

         2       could we please have the reading of the

         3       noncontroversial calendar, please.

         4                  ACTING PRESIDENT GRIFFO:    The

         5       Secretary will read.

         6                  Senator Duane.

         7                  SENATOR DUANE:    Thank you,

         8       Mr. President.  Just a point of personal

         9       privilege, I guess.

        10                  I just want to remind all the

        11       members that we are starting the reading of

        12       the noncontroversial calendar and that people

        13       need to be here.  And I just want to make sure

        14       that that is known far and wide, that people

        15       need to be here because we are starting to do

        16       the noncontroversial calendar.

        17                  Thank you, Mr. President.

        18                  ACTING PRESIDENT GRIFFO:    Thank

        19       you, Senator Duane.

        20                  The Secretary will read.

        21                  THE SECRETARY:    In relation to

        22       Calendar Number 717, Senator Alesi moves to

        23       discharge, from the Committee on Rules,

        24       Assembly Bill Number 9163A and substitute it

        25       for the identical Senate Bill Number 175B,



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         1       Third Reading Calendar 717.

         2                  ACTING PRESIDENT GRIFFO:

         3       Substitution so ordered.

         4                  The Secretary will read.

         5                  THE SECRETARY:    Calendar Number

         6       717, by Member of the Assembly Bradley,

         7       Assembly Print Number 9163A, an act to amend

         8       the General Business Law.

         9                  ACTING PRESIDENT GRIFFO:    Read

        10       the last section.

        11                  THE SECRETARY:    Section 4.  This

        12       act shall take effect on the 60th day.

        13                  SENATOR DUANE:    Lay it aside,

        14       please.

        15                  ACTING PRESIDENT GRIFFO:    The

        16       bill is laid aside.

        17                  THE SECRETARY:    In relation to

        18       Calendar Number 2250, Senator Diaz moves to

        19       discharge, from the Committee on Rules,

        20       Assembly Bill Number 3227A and substitute it

        21       for the identical Senate Bill Number 7014,

        22       Third Reading Calendar 2250.

        23                  ACTING PRESIDENT GRIFFO:

        24       Substitution so ordered.

        25                  The Secretary will read.



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         1                  THE SECRETARY:    Calendar Number

         2       2250, by Member of the Assembly Diaz, Assembly

         3       Print Number 3227A, an act to amend the

         4       Private Housing Finance Law and the Public

         5       Housing Law.

         6                  ACTING PRESIDENT GRIFFO:    Read

         7       the last section.

         8                  THE SECRETARY:    Section 4.  This

         9       act shall take effect on the 120th day.

        10                  ACTING PRESIDENT GRIFFO:    Call

        11       the roll.

        12                  (The Secretary called the roll.)

        13                  THE SECRETARY:    Those recorded in

        14       the negative on Calendar Number 2250 are

        15       Senators Duane and Huntley.  Also Senator

        16       Hassell-Thompson.

        17                  Ayes, 55.  Nays, 3.

        18                  ACTING PRESIDENT GRIFFO:    The

        19       bill is passed.

        20                  THE SECRETARY:    Calendar Number

        21       2251, by Senator Skelos, Senate Print 8738,

        22       concurrent --

        23                  SENATOR LIBOUS:    Lay it aside,

        24       temporarily, please.

        25                  ACTING PRESIDENT GRIFFO:    The



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         1       bill is laid aside temporarily.

         2                  THE SECRETARY:    Calendar Number

         3       2252, by Senator Connor, Senate Print 8750, an

         4       act to amend the Alcoholic Beverage Control

         5       Law.

         6                  ACTING PRESIDENT GRIFFO:    Read

         7       the last section.

         8                  THE SECRETARY:    Section 4.  This

         9       act shall take effect on the same date and in

        10       the same manner as a chapter of the Laws of

        11       2008.

        12                  ACTING PRESIDENT GRIFFO:    Call

        13       the roll.

        14                  (The Secretary called the roll.)

        15                  THE SECRETARY:    Ayes, 58.

        16                  ACTING PRESIDENT GRIFFO:    The

        17       bill is passed.

        18                  SENATOR LIBOUS:    Mr. President.

        19                  ACTING PRESIDENT GRIFFO:    Senator

        20       Libous.

        21                  SENATOR LIBOUS:    We're going to

        22       get to 2251 in just one second, Mr. President.

        23                  Mr. President, could we at this

        24       time take up 717, by Senator Alesi,

        25       controversial.



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         1                  ACTING PRESIDENT GRIFFO:    The

         2       Secretary will read.

         3                  THE SECRETARY:    Calendar Number

         4       717, substituted earlier by Member of the

         5       Assembly Bradley, Assembly Print Number 9163A,

         6       an act to amend the General Business Law.

         7                  ACTING PRESIDENT GRIFFO:    Senator

         8       Breslin.

         9                  SENATOR BRESLIN:    Yes, through

        10       you, Mr. President, if the sponsor would yield

        11       to a few questions.

        12                  ACTING PRESIDENT GRIFFO:    Senator

        13       Alesi, do you yield?

        14                  SENATOR ALESI:    I yield.

        15                  ACTING PRESIDENT GRIFFO:    Senator

        16       Breslin.

        17                  SENATOR BRESLIN:    Through you,

        18       Mr. President.

        19                  Senator Alesi, we're dealing with

        20       gasoline, obviously, for zone pricing.  Is

        21       there any reason that other products that

        22       might be subject to zone pricing aren't

        23       included?

        24                  SENATOR ALESI:    Through you,

        25       Mr. President, the bill deals specifically



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         1       with gasoline.  And I'm certain that if there

         2       were interest in other items like that, they

         3       would be presented before the Legislature at

         4       an appropriate time by any member of the

         5       Legislature that chose to do so.

         6                  SENATOR BRESLIN:    Again through

         7       you, Mr. President, if the sponsor would

         8       continue to yield.

         9                  SENATOR ALESI:    I do.

        10                  ACTING PRESIDENT GRIFFO:    Senator

        11       Alesi, do you continue to yield?

        12                  SENATOR ALESI:    Yes.

        13                  ACTING PRESIDENT GRIFFO:    Senator

        14       Breslin.

        15                  SENATOR BRESLIN:    Have there been

        16       any studies available to you which would show

        17       that the effect of an elimination of zone

        18       pricing would in fact lower the price?

        19                  SENATOR ALESI:    Through you,

        20       Mr. President, I have over the last several

        21       years had several hearings, and of course

        22       there are pros and cons on this issue

        23       depending on whose philosophy you adhere to.

        24                  Through the course of these

        25       hearings and with memos of opposition and



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         1       memos in support, I am steadfastly certain

         2       that I am doing what is good for the consumers

         3       of this state when it comes to eliminating

         4       zone pricing of gasoline.

         5                  SENATOR BRESLIN:    Again through

         6       you, Mr. President, if the sponsor would

         7       continue to yield.

         8                  SENATOR ALESI:    I do.

         9                  ACTING PRESIDENT GRIFFO:    Senator

        10       Alesi yields, Senator Breslin.

        11                  SENATOR BRESLIN:    I'd repeat the

        12       same question.  Are there any studies

        13       available that are --

        14                  SENATOR ALESI:    Excuse me,

        15       Mr. President.  I can't hear.  Too much

        16       background.

        17                  ACTING PRESIDENT GRIFFO:    Excuse

        18       me.

        19                  Can we have order in the chamber,

        20       please.

        21                  SENATOR ALESI:    Thank you,

        22       Senator.

        23                  SENATOR BRESLIN:    Through you

        24       again, Mr. President.

        25                  Are there any actual definitive



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         1       studies that come up with some sort of an

         2       analysis and conclusions relative to whether

         3       the price would be reduced?

         4                  SENATOR ALESI:    Through you,

         5       Mr. President, yes.

         6                  SENATOR BRESLIN:    And through you

         7       again, Mr. President, if the sponsor would

         8       continue to yield.

         9                  ACTING PRESIDENT GRIFFO:    Senator

        10       Alesi, do you yield?

        11                  SENATOR ALESI:    I yield, yes.

        12                  ACTING PRESIDENT GRIFFO:    Senator

        13       Breslin.

        14                  SENATOR BRESLIN:    Can you tell us

        15       what that study is?

        16                  SENATOR ALESI:    In answer to your

        17       question, I believe, if I have the name right,

        18       maybe the Petroleum Institute -- which is

        19       steadfastly against this bill -- offered a

        20       study of its own.  There might be some other

        21       studies that have been done from the mentioned

        22       Petroleum Institute.  And the Quinnipiac

        23       survey, which I'm sure you have in your memos.

        24                  SENATOR BRESLIN:    And through you

        25       again, Mr. President, can you tell us what the



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         1       conclusion --

         2                  ACTING PRESIDENT GRIFFO:    Senator

         3       Breslin, are you asking Senator Alesi to

         4       continue to yield?

         5                  SENATOR BRESLIN:    Yes, I am,

         6       Mr. President.

         7                  ACTING PRESIDENT GRIFFO:    Senator

         8       Alesi, will you continue to yield?

         9                  SENATOR ALESI:    I yield.

        10                  ACTING PRESIDENT GRIFFO:    Senator

        11       Breslin.

        12                  SENATOR BRESLIN:    And through

        13       you, Mr. President, can you tell us what the

        14       result of those studies are?

        15                  SENATOR ALESI:    Through you,

        16       Mr. President, I can paraphrase, since I don't

        17       have the documents in front of me.

        18                  But as you can imagine, studies

        19       that are done by a particular industry group

        20       tend to be subjective in their analysis and in

        21       their results.  Memos in opposition to this

        22       based on any of those studies, of course,

        23       would say that this bill is not one that they

        24       would embrace.

        25                  I do have information from the 3500



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         1       or so retail gasoline dealers who are members

         2       of their own organization, the Repair Shop and

         3       Gas Station Dealers, as well.  Those 3500

         4       collective members are opposed to zone

         5       pricing, and they have offered in their memo

         6       of support very solid evidence that zone

         7       pricing not only hurts consumers, not only

         8       hurts consumers that are individuals but

         9       businesses as well that are trying to conduct

        10       commerce in this state, but it also hurts the

        11       retail gasoline dealers as well.

        12                  SENATOR BRESLIN:    And again

        13       through you, Mr. President, if the sponsor

        14       would continue to yield.

        15                  SENATOR ALESI:    I will yield.

        16                  ACTING PRESIDENT GRIFFO:    The

        17       Senator yields.

        18                  SENATOR BRESLIN:    Through you,

        19       Mr. President, has there been any analysis

        20       done to determine whether this bill would in

        21       fact be constitutional, as in effect you are

        22       regulating price?

        23                  SENATOR ALESI:    Through you,

        24       Mr. President, there's no analysis that says

        25       it's not constitutional as far as I know.



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         1                  SENATOR BRESLIN:    On the bill,

         2       Mr. President.

         3                  ACTING PRESIDENT GRIFFO:    Senator

         4       Breslin, on the bill.

         5                  SENATOR BRESLIN:    I have some

         6       concerns for any kind of zone pricing because

         7       it's the State of New York dictating.

         8                  And my experience is that this kind

         9       of elimination of zone pricing can be positive

        10       to wealthy people, detrimental to the poor and

        11       middle class, that in fact that areas are

        12       picked on when there's -- without zone

        13       pricing, the prices would come up in

        14       particular areas.

        15                  In other areas, with like food and

        16       grocery products, it's a routine use of zone

        17       pricing which is always determined based upon

        18       competition.  And competition, in fact, should

        19       be the reality of how products are priced.

        20                  Accordingly, I will be voting in

        21       the negative.

        22                  Thank you, Mr. President.

        23                  ACTING PRESIDENT GRIFFO:    Senator

        24       Alesi.

        25                  SENATOR ALESI:    Mr. President,



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         1       I'd like to be clear on this issue as I close

         2       the debate, hopefully.

         3                  There are pros and cons on the

         4       issue philosophically.  What I can tell you is

         5       this, that zone pricing, as it stands right

         6       now, can cause severe economic damage and pain

         7       to those people who are living in impoverished

         8       areas of our state.

         9                  One of the reasons for that is

        10       because, if you live in an area that is

        11       artificially described as a zone where people

        12       generally do not use an oil company credit

        13       card and where people can't afford to fill

        14       their tank and where they buy their gasoline

        15       $10 or $20 at a time, the price in those zones

        16       is usually higher than it is anywhere else.

        17                  So this elimination of zone pricing

        18       goes a long way to help those people who

        19       actually can't afford gasoline.

        20                  ACTING PRESIDENT GRIFFO:    Debate

        21       is closed.

        22                  The Secretary will ring the bell.

        23                  Read the last section.

        24                  THE SECRETARY:    Section 4.  This

        25       act shall take effect on the 60th day.



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         1                  ACTING PRESIDENT GRIFFO:    Call

         2       the roll.

         3                  (The Secretary called the roll.)

         4                  ACTING PRESIDENT GRIFFO:    Senator

         5       Diaz, to explain his vote.

         6                  SENATOR DIAZ:    Yes, thank you,

         7       Mr. President.

         8                  You know, in Bronx County, where

         9       I'm coming from, and my district -- Soundview,

        10       Castle Hill, Pelham Bay, Parkchester -- when

        11       you go and purchase gas, you will see

        12       different prices of gas in different areas in

        13       the same district.

        14                  I understand that this bill will

        15       end zone pricing, meaning that every single

        16       area in the Bronx in my district will have the

        17       same prices.  And wherever you go to buy

        18       gasoline, if zone pricing -- if this bill will

        19       end zone pricing, the price will be the same

        20       everywhere.  So we will avoid going around to

        21       find out where are the cheaper prices.

        22                  So I think this is a good bill --

        23       good for consumers, good for my community --

        24       and I'm supporting the bill.

        25                  ACTING PRESIDENT GRIFFO:    Senator



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         1       Diaz to be recorded in the affirmative.

         2                  Senator Leibell.  Oh, Senator

         3       LaValle.

         4                  Sorry, Vinny.

         5                  SENATOR LaVALLE:    That's all

         6       right, Mr. President -- [inaudible].  I'd just

         7       like to comment on the zone pricing.

         8                  And, Senator Alesi, I just want to

         9       say that the people who live on eastern Long

        10       Island, who are hardworking people, will be as

        11       ecstatic as they can be that the Senate has

        12       passed this legislation.

        13                  Because if you've ever seen zone

        14       pricing, with huge disparities between what we

        15       call "Up Island" and the East End, it can be

        16       50 cents or more a gallon.  I think they will

        17       be very pleased, and I want to thank you on

        18       behalf of those people on eastern Long Island

        19       for this bill.

        20                  ACTING PRESIDENT GRIFFO:    Senator

        21       LaValle to be recorded in the affirmative.

        22                  Announce the results.

        23                  THE SECRETARY:    Those recorded in

        24       the negative on Calendar Number 717 are

        25       Senators Breslin and Perkins.



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         1                  Absent from voting:  Senators

         2       Sampson and Thompson.

         3                  Ayes, 54.  Nays, 2.

         4                  ACTING PRESIDENT GRIFFO:    The

         5       bill is passed.

         6                  THE SECRETARY:    Senator Libous.

         7                  SENATOR LIBOUS:    Mr. President,

         8       could we go back to the noncontroversial

         9       calendar and have Senate Number 2251 read,

        10       please.

        11                  ACTING PRESIDENT GRIFFO:    Thank

        12       you, Senator Libous.

        13                  Without objection, the

        14       noncontroversial reading of the calendar,

        15       Calendar Number 2251.  The Secretary will

        16       read.

        17                  THE SECRETARY:    Calendar Number

        18       2251, by Senator Skelos, Senate Print 8738,

        19       concurrent resolution --

        20                  SENATOR DUANE:    Lay it aside,

        21       please.

        22                  ACTING PRESIDENT GRIFFO:    Lay it

        23       aside.

        24                  Senator Libous.

        25                  SENATOR LIBOUS:    Mr. President,



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         1       could we now go to the controversial calendar

         2       and take up 2251, by Senator Skelos.

         3                  ACTING PRESIDENT GRIFFO:    The

         4       Secretary will read.

         5                  THE SECRETARY:    Calendar Number

         6       2251, by Senator Skelos, Senate Print 8738,

         7       concurrent --

         8                  SENATOR LIZ KRUEGER:

         9       Explanation, please.

        10                  ACTING PRESIDENT GRIFFO:

        11       Explanation requested by Senator Krueger.

        12                  Senator DeFrancisco.

        13                  SENATOR DeFRANCISCO:    Yes, this

        14       bill is a piece of legislation that would seek

        15       a change in the constitution, which change

        16       would limit the amount that the Legislature

        17       and the budget and the Governor can raise the

        18       amount of spending from year to year, either

        19       to 4 percent maximum or 120 percent of the

        20       Consumer Price Index, whichever is less.

        21                  If there happen to be revenues in

        22       any year above and beyond the maximum spending

        23       limit, then 50 percent of the revenues would

        24       be put in a special reserve fund for future

        25       contingencies -- which would have been nice to



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         1       have now -- and 50 percent would be returned

         2       to the taxpayers so that they could spend the

         3       money in a way that will no doubt help the

         4       economy.

         5                  Had we had this in effect over the

         6       last five years, we would have had an

         7       additional $13.1 million of spending that

         8       would not have happened, half of which would

         9       have gone back to the taxpayer, half of which

        10       would be in the kitty right now that could

        11       help us do what we've got to do today, make

        12       cuts.  We wouldn't have to worry about that,

        13       in view of the fact that there would have been

        14       a reserve fund in order to take care of those

        15       cuts.

        16                  Now, the most important thing about

        17       this bill is that it's a constitutional

        18       amendment.  And what we're doing by first

        19       passage would be to get -- to hopefully have

        20       second passage next year and to put on the

        21       ballot in November of next year a referendum

        22       for the people of the State of New York to

        23       decide whether or not this is a good idea.

        24                  And it would seem to me that all of

        25       us should want the constituents to have this



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         1       choice, especially now that we're facing the

         2       sins of our past and running into a problem

         3       where we've spent too much and have to make

         4       midyear corrections.

         5                  So that's what the bill does, and I

         6       would urge by the adoption by all of us here.

         7                  ACTING PRESIDENT GRIFFO:    Senator

         8       Krueger.

         9                  SENATOR LIZ KRUEGER:    Thank you,

        10       Mr. President.  If, through you, the sponsor

        11       would yield.

        12                  SENATOR DeFRANCISCO:    Yes, I

        13       would.

        14                  ACTING PRESIDENT GRIFFO:    Senator

        15       DeFrancisco yields.

        16                  SENATOR LIZ KRUEGER:    Or the

        17       sponsor's representative.  Thank you, Senator.

        18                  So as I understand this

        19       constitutional amendment, which would limit us

        20       to 4 percent or 120 percent of the Consumer

        21       Price Index in any given year, if this law had

        22       been in effect in fiscal year 2007-2008, the

        23       Senate Majority's recommendation for the

        24       budget was a 12.36 percent increase.  So could

        25       you not have recommended that budget if this



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         1       bill was in effect?

         2                  SENATOR DeFRANCISCO:    You know,

         3       that's a very good point.  But as you know,

         4       budgets are a product of the work of the

         5       Assembly, the Senate and the Governor.

         6                  And budgets are also very subject

         7       to many, many special interest groups, all of

         8       us who are concerned about and want to help.

         9       And because of that, budgets have gotten out

        10       of control.  And everybody is guilty of that

        11       fact, because of the facts of life, how things

        12       work in a democracy and with houses with

        13       different needs and a governor with different

        14       priorities.

        15                  So yes, voluntarily this could have

        16       happened in each house, or it could have

        17       happened with the vetoes of the Governor.  But

        18       it hasn't happened that way.

        19                  And that's why we want the people

        20       to have the opportunity to decide whether a

        21       better way would be to have this cap and use

        22       additional revenues for a reserve fund and

        23       also half of those revenues to go back to the

        24       taxpayer to spur the economy.

        25                  SENATOR LIZ KRUEGER:    Thank you.



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         1       Mr. President, if through you the sponsor

         2       would continue to yield.

         3                  ACTING PRESIDENT GRIFFO:    Senator

         4       DeFrancisco, do you continue to yield?

         5                  SENATOR DeFRANCISCO:    Yes.

         6                  ACTING PRESIDENT GRIFFO:    Senator

         7       Krueger.

         8                  SENATOR LIZ KRUEGER:    Thank you.

         9                  So, leaping ahead, let's assume

        10       this became law.  And then the federal

        11       government, which as we know currently

        12       pours -- a significant amount of the state's

        13       budget actually comes through the federal

        14       government.  I think about 40 percent of our

        15       money comes from the federal government, give

        16       or take, in a given year.

        17                  And let's say the federal

        18       government decided that it was going to stop

        19       sending us money.  Which we've actually seen

        20       they are decreasing the money they send the

        21       State of New York.

        22                  If this constitutional amendment

        23       was in place and the federal government --

        24       let's round down our budget to $100 billion,

        25       for argument -- and the federal government



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         1       didn't move us $40 billion a year, if this

         2       amendment was in place we could only go up

         3       4 percent from the year before even if we did

         4       not receive $40 billion from the federal

         5       budget.

         6                  Is that a correct reading of this

         7       bill?

         8                  SENATOR DeFRANCISCO:    Well, first

         9       of all, President McCain would never do that.

        10                  (Laughter.)

        11                  SENATOR LIZ KRUEGER:    He's

        12       actually the president I was worried about.

        13                  SENATOR DeFRANCISCO:    Nor would

        14       the Republican Senate or the Republican

        15       Congress.

        16                  However, if something happened

        17       where that did occur, there's a provision in

        18       the bill that in emergency fiscal

        19       situations -- and the emergency fiscal

        20       situation is defined in the bill.  It's -- you

        21       can read it in Section 3(C) -- which emergency

        22       was declared by the Governor, but also was

        23       agreed to by the Comptroller, then under those

        24       situations we could spend more than that

        25       limit.



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         1                  So there is a provision, in case

         2       something foolhardy like that had happened,

         3       that we would be able to go beyond that limit.

         4                  But there's a check and a balance.

         5       It's a good bill.  It's not just one person

         6       making that determination.  The Comptroller

         7       would, a separately elected person.

         8                  SENATOR LIZ KRUEGER:    Mr.

         9       President, on the bill.

        10                  ACTING PRESIDENT GRIFFO:    Senator

        11       Krueger, on the bill.

        12                  SENATOR LIZ KRUEGER:    Thank you.

        13                  I appreciate the sponsor's answers

        14       to the questions.

        15                  I'm very uncomfortable with a

        16       constitutional amendment that says the

        17       Legislature, the Governor, it doesn't really

        18       matter what's going on in the State of

        19       New York, we're putting a constitutional cap

        20       on.  It doesn't address if the population

        21       skyrockets, which it could, and it would

        22       change the formula for our education needs

        23       versus other needs.

        24                  I don't agree -- while I respect

        25       the sponsor's reading of the emergency section



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         1       of the bill, which says "an extraordinary

         2       unforeseen or unexpected occurrence with a

         3       sudden fiscal action of a drastic but

         4       temporary nature."  I'm not sure, if the

         5       federal government walked away from its

         6       responsibility for the State of New York, that

         7       that would meet that category.

         8                  And of course as we've seen under

         9       President Bush, and I'm hoping we wouldn't see

        10       under President Obama, we have seen the

        11       federal government walk away, year after year,

        12       from its responsibilities to the state, which

        13       has translated into the state having to

        14       increase our budget, sometimes very

        15       specifically in relationship to lost federal

        16       funds.

        17                  And so in a world where we are a

        18       balancing act between what happens at the

        19       federal level, what happens at the local

        20       level, what happens in our economy -- in good

        21       years, hopefully we do not only ensure that we

        22       have invested in a reserve fund or a rainy day

        23       fund, but in bad years there's an argument for

        24       increasing one's spending to support bad

        25       economic times and tough times in particular



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         1       communities.

         2                  And yet we don't do this in a

         3       vacuum, we do this in relationship to the

         4       federal government and their budgets and their

         5       policies; we do this in relationship to our

         6       local governments, their budgets and their

         7       policies.

         8                  And so to tie our hands with a

         9       constitutional amendment saying that we would

        10       not be able to make the adjustments that I

        11       think government needs to be in a position to

        12       make, I personally think is a mistake.

        13                  Now, we have a responsibility to

        14       our constituents to only spend the dollars we

        15       need to spend and, I agree, to give back the

        16       dollars we're not spending.

        17                  And as I pointed out in one of my

        18       questions, sitting here for the last few years

        19       in the Senate -- not with governors' budgets,

        20       but with Senate Majority recommendations -- in

        21       '07-'08 the Senate Majority's proposed budget

        22       would have been -- again, not the Assembly,

        23       not the negotiated, just the Senate

        24       Majority -- it would have a $6.25 billion

        25       increase, a 12.3 percent increase.



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         1                  In '06-'07 the Senate Majority

         2       recommended budget would have been a

         3       5.25 percent increase.  In fiscal year '05-'06

         4       the Senate Majority proposed budget would have

         5       been a 10 percent budget increase.

         6                  So I agree with the concerns of my

         7       colleagues that we are perhaps increasing our

         8       budgets or proposing to increase our budgets

         9       too big, too fast, without justification of

        10       how we're going to pay for them.

        11                  But even when I look at our own

        12       proposals from this house, I don't think we

        13       need a constitutional amendment; I think we

        14       need a change in policy about how we deal with

        15       our own budgets.

        16                  I think my constituents elect me to

        17       come up here and make hard decisions,

        18       including limiting the amount of money that we

        19       put into a budget.  I think each of us are

        20       expected by our constituents to come up here

        21       and make the hard but right decisions for the

        22       State of New York.

        23                  I'm not opposed to constitutional

        24       amendments.  In fact, I support I&R

        25       initiatives and voted for that, I guess, nine



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         1       days ago when we were up here.  But I

         2       fundamentally don't believe the right answer

         3       for the Legislature for the State of New York

         4       is to pass a constitutional amendment that

         5       would in fact tie our hands --

         6                  ACTING PRESIDENT GRIFFO:    Senator

         7       DeFrancisco, why do you rise?

         8                  SENATOR DeFRANCISCO:    Would

         9       Senator Krueger yield to a question?

        10                  ACTING PRESIDENT GRIFFO:    Senator

        11       Krueger, will you yield?

        12                  SENATOR LIZ KRUEGER:    Yes, I

        13       will.

        14                  ACTING PRESIDENT GRIFFO:    Senator

        15       DeFrancisco.

        16                  SENATOR DeFRANCISCO:    Yes,

        17       Senator Krueger, you say that you are in favor

        18       of initiative and referendum; is that correct?

        19                  SENATOR LIZ KRUEGER:    Yes.

        20                  SENATOR DeFRANCISCO:    And so

        21       you're -- would you also yield another time,

        22       please.

        23                  ACTING PRESIDENT GRIFFO:    Senator

        24       Krueger?

        25                  SENATOR LIZ KRUEGER:    Yes,



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         1       Mr. President, I will.

         2                  SENATOR DeFRANCISCO:    You

         3       understand, do you not, that this bill, in

         4       order to become a constitutional amendment, if

         5       it was passed by both houses twice, would have

         6       to go to the voters for their determination?

         7       You understand that?

         8                  SENATOR LIZ KRUEGER:    Yes.

         9                  SENATOR DeFRANCISCO:    One last

        10       question.

        11                  ACTING PRESIDENT GRIFFO:    Senator

        12       Krueger?

        13                  SENATOR LIZ KRUEGER:    Certainly.

        14                  ACTING PRESIDENT GRIFFO:    Senator

        15       DeFrancisco.

        16                  SENATOR DeFRANCISCO:    So

        17       basically you're saying you're in favor of

        18       initiative and referendum for ideas that the

        19       voters may have by circulating petitions to

        20       get something on the ballot, but you're not in

        21       favor of the voters making this determination

        22       on a cap?

        23                  SENATOR LIZ KRUEGER:    Mr.

        24       President, through you.  I don't support a

        25       constitutional amendment to cap budgets.  If



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         1       it was an I&R question, I would also argue in

         2       my district and around the state that this is

         3       not the right answer for the State of

         4       New York.

         5                  So you raise a valid point about

         6       once you open your state laws open up to

         7       initiative and referendum, lots of possible

         8       bills might end up going through that process,

         9       starting out with the petitioning process.

        10                  And if this ended up at some point

        11       in history moving as an initiative and

        12       referendum proposal, which we of course don't

        13       have yet in New York State, I believe I would

        14       still argue to the voters that this was not

        15       the right answer.

        16                  SENATOR DeFRANCISCO:    Thank you,

        17       Senator.

        18                  SENATOR LIZ KRUEGER:    Thank you.

        19       So just to close.

        20                  ACTING PRESIDENT GRIFFO:    Senator

        21       Krueger, to close.

        22                  SENATOR L. KRUEGER:    Thank you.

        23                  It's a fascinating debate about how

        24       you make decisions about a budget.  But I

        25       think that fundamentally the role of a



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         1       legislature in negotiations with a governor is

         2       to make those decisions.  They're not always

         3       easy decisions, as some of us might say we're

         4       going through today.  But that this is what

         5       the voters asked us to come here and do.

         6                  And at a certain level should we

         7       all hold ourselves accountable for having

         8       flunked the test in the last few years?

         9       Certainly the Majority in this house has

        10       flunked their own test in the last few years,

        11       based on their proposed increases in the

        12       budget.

        13                  But I think the job is then for us

        14       to go back and do our job better, not to have

        15       an absolute and yet unexplainable cap on where

        16       we go.

        17                  So I'm urging my colleagues to vote

        18       no.  Thank you, Mr. President.

        19                  ACTING PRESIDENT GRIFFO:    Is

        20       there any other Senator wishing to be heard?

        21                  Debate is closed.

        22                  The Secretary will ring the bell.

        23                  The Secretary will call the roll on

        24       the resolution.

        25                  (The Secretary called the roll.)



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         1                  ACTING PRESIDENT GRIFFO:    Senator

         2       Marcellino, to explain his vote.

         3                  SENATOR MARCELLINO:    Thank you,

         4       Mr. President.

         5                  This state, as we go around, is

         6       losing population.  We're losing population

         7       and we're losing jobs to states around us,

         8       different regions of the country.

         9                  And one of the reasons we're losing

        10       this population, one of the reasons people are

        11       leaving our state -- as can be proved by the

        12       loss in the last census of some Congressional

        13       seats in the House of Representatives.  And

        14       it's proposed this year, well, when the next

        15       census comes, we'll likely lose at least two

        16       more members of the House of Representatives.

        17       Which means we have less of a voice at the

        18       federal level because people are leaving.

        19                  They're leaving because we spend

        20       too much and tax too much.  People in effect

        21       are voting with their feet.  They're telling

        22       us that there's no point in having the

        23       Cadillac of Cadillacs of states if they cannot

        24       afford to live here, if they can't find a job

        25       here.



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         1                  It's up to us to put some type of

         2       control, some type of limit on spending.

         3       We've got to get our fiscal house in order, in

         4       order to save and protect our own people.

         5       Otherwise we're going to lose more and more

         6       people, more and more jobs to regions of this

         7       country that tax less and offer less.

         8                  People are voting, as I just said,

         9       with their feet.  It's time that this

        10       Legislature takes one big step to control

        11       state spending.  That's what we must do.

        12                  This cap will do that.  This cap

        13       will enforce a restriction with the proper

        14       limitations so that we can overrule it when

        15       necessary, in an emergency.  But we must

        16       control spending at every level.

        17                  I'm going to vote aye for this, and

        18       I urge everyone else to do the same.

        19                  ACTING PRESIDENT GRIFFO:    Senator

        20       Marcellino to be recorded in the affirmative.

        21                  Senator Golden, to explain his

        22       vote.

        23                  SENATOR GOLDEN:    Thank you,

        24       Mr. President.

        25                  I find it ironic that I rise and I



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         1       see so many in this house that would be to a

         2       spending cap.  I guess they're not looking and

         3       talking to the constituencies across the State

         4       of New York.  Because every poll that I've

         5       looked at and the constituents that I've

         6       talked to in my district are all concerned

         7       about the spending that's going on here in the

         8       State of New York.

         9                  And, you know what, you can cap

        10       spending; you can't raise taxes beyond it

        11       because there's no reason to raise taxes

        12       beyond that cap.

        13                  A 4 percent cap works for this

        14       state.  And if we had put that 4 percent cap

        15       into play last year, we would have saved

        16       $2.4 billion for the State of New York, this

        17       year $2.4 billion for the State of New York.

        18       And 2009's budget is predicted to be at

        19       10 percent, according to the Governor.  That

        20       would save $2.8 billion for the State of

        21       New York.

        22                  I just can't imagine, I can't

        23       imagine how many Democrats here in this room

        24       are against this cap.  I am amazed and

        25       appalled that they would be against doing



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         1       what's right for the people of this great

         2       state.

         3                  A 4 percent cap works.  The people

         4       of the State of New York deserve it.  The

         5       people of the State of New York are fed up

         6       with taxes.  And we owe it to the people of

         7       the State of New York.

         8                  To think, to think, Mr. President,

         9       that we don't trust the will of the people,

        10       the will of the voters to take a vote on a

        11       constitutional amendment about spending in the

        12       State of New York is ludicrous.  I just can't

        13       believe it.

        14                  So I vote aye.  And I'm hoping that

        15       some of the Democrats in this room, and

        16       others, understand the necessity of this bill,

        17       this constitutional amendment, and the belief,

        18       the belief in the voter, the belief in the

        19       ability for that voter to go and vote.

        20                  I vote aye, Mr. President.

        21                  ACTING PRESIDENT GRIFFO:    Senator

        22       Golden is to be recorded in the affirmative.

        23                  I'd ask the members to please

        24       refrain from conversations amongst each other

        25       right now so we can hear the speaker.



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         1                  Senator Morahan, to explain his

         2       vote.

         3                  SENATOR MORAHAN:    Thank you,

         4       Mr. President.

         5                  I rise also in support of this

         6       resolution.  It is high time that we tried to

         7       put some controls and some discipline on the

         8       State of New York budget process.  Each year

         9       we go through the torture of trying to decide

        10       what to spend, how much to spend.  We go

        11       through the criticisms.  What we don't do,

        12       though, is respond appropriately.

        13                  I think this bill, capping what the

        14       state budget can be each year, is really the

        15       right move for the State of New York to create

        16       jobs, to keep business here, to give people

        17       relief on the income tax and other taxes that

        18       they pay.

        19                  We have many different taxes within

        20       our budget.  They're all too high.  The time

        21       has come.  I think we're going to hear more of

        22       this.  Hopefully we can get this passed in the

        23       Assembly and we will have a constitutional

        24       amendment that will put a cap on how much we

        25       can raise the state budget each year.



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         1                  I think 4 percent is an adequate

         2       cap.  It fits the bill.  We have relief

         3       clauses in case of emergency that certainly

         4       will call a great deal of attention once we

         5       try to go over that cap.  And 4 percent seems

         6       very reasonable to me.

         7                  So I vote in the affirmative,

         8       Mr. President.

         9                  ACTING PRESIDENT GRIFFO:    Senator

        10       Morahan to be recorded in the affirmative.

        11                  Senator Savino, to explain her

        12       vote.

        13                  SENATOR SAVINO:    Thank you,

        14       Mr. President.

        15                  Before I explain my vote, I

        16       remember earlier this session having a very

        17       spirited discussion in the Judiciary Committee

        18       with Senator DeFrancisco and some of the

        19       members where we discussed the merits of this

        20       bill.

        21                  Now, there are some very important

        22       merits to the bill.  We all recognize -- and I

        23       think Senator Golden has left the room, but

        24       we're all concerned, we recognize that the

        25       people of the State of New York are worried



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         1       about spending.  They recognize that we spend

         2       too much money.  They're concerned about the

         3       impact on their local property taxes, on their

         4       income tax, on their cost of living.  We're

         5       all concerned about that.

         6                  And part of the discussion we had

         7       then was that one of the reasons why they

         8       elect us and send us to the Legislature is to

         9       make decisions about how we appropriate public

        10       money and how we provide the services that

        11       those concerned citizens demand.  And so it's

        12       a delicate balancing act, how do we make those

        13       decisions.

        14                  And what was ironic, as Senator

        15       Golden pointed out, was that a few weeks later

        16       we passed a budget that was 5 percent above

        17       the rate of inflation, knowing that the

        18       state's finances were precarious at best.  So

        19       we had the great discussion about it, we may

        20       think it's a good idea.  But the truth is,

        21       when the time came to act, we exceeded the

        22       rate of inflation.

        23                  Now, we can debate at another time

        24       whether we should or we shouldn't have or

        25       whatever the case may be.  But I think all of



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         1       us at that time tried to put together a budget

         2       that we felt met the needs of our

         3       constituencies.  That is what we tried to do

         4       here.

         5                  And what I'm afraid of with this

         6       constitutional amendment is that we would be

         7       tying our hands, essentially saying to the

         8       public:  We're incapable of making hard

         9       decisions unless you tie our hands.  And I

        10       know every one of the members in this room.

        11       We are capable of making those decisions

        12       without our hands being tied.

        13                  If we put our heads together, like

        14       we're doing today, we can find ways to reduce

        15       spending without impacting public services.

        16       And we can also -- we also need the

        17       flexibility to be able to respond to emergency

        18       situations that we cannot see coming, whether

        19       it's the fiscal crisis or 9/11 or anything

        20       else, or the federal government abandoning us.

        21                  And I think that we should be

        22       mindful that we are all capable legislators.

        23       We don't need an artificial cap on us to make

        24       good decisions for the people of the State of

        25       New York.



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         1                  That is why, unfortunately, I am

         2       voting in the negative on this piece of

         3       legislation.

         4                  ACTING PRESIDENT GRIFFO:    Senator

         5       Savino to be cast in the negative on her vote.

         6                  Senator Connor, to explain your

         7       vote.

         8                  SENATOR CONNOR:    Thank you,

         9       Mr. President.

        10                  I'm voting no.  When an identical

        11       bill passed, I should note for the record, on

        12       March 12th, it seems that I was recorded in

        13       the affirmative.  And I don't remember taking

        14       that position.  And someone pointed out that

        15       that was a chaotic day in the history of this

        16       Capitol earlier this year, as the governorship

        17       changed hands.

        18                  But I'm opposed to this simply

        19       because I think it's a political gimmick.  I

        20       have served here for many years, and I have

        21       never, ever, ever seen a budget drama play

        22       out -- and I've been here for some late

        23       budgets, and I've been in Albany in August to

        24       pass budgets that should have been passed on

        25       April 1st -- and I've never seen the battle



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         1       involve the Legislature fighting a governor

         2       for less spending.

         3                  It has always been the Legislature,

         4       both houses, sometimes with different

         5       emphasis, fighting governors for more

         6       spending, more spending, and more spending.

         7       And the majority in this house often wanted to

         8       spend more on different things than the

         9       majority in the other house.  And usually the

        10       compromise was we spent more on everything

        11       that the houses wanted.

        12                  And to have the majority in

        13       effect -- what does it say, Mr. President,

        14       that we want to have a fiscal chastity belt?

        15       What does it say about our moral courage, our

        16       political courage, and our fiscal

        17       responsibility?

        18                  The fact is the people, when they

        19       adopted our Constitution, gave this

        20       Legislature and the Governor the budget

        21       authority.  They expect us to use it

        22       prudently.  Instead, we have used it

        23       politically, on the spending side and on the

        24       revenue side.

        25                  There are two sides to every



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         1       budget, Mr. President.  And I hear so much

         2       talk about spending, spending, spending.  Yet

         3       in the way we tax and in the way we do not tax

         4       and those we do not tax fairly, we also waste

         5       the resources of our great state, the people's

         6       resources.

         7                  So I'm voting no.  I think we can

         8       do better.  And I think perhaps next year the

         9       then-leadership of this house will do better

        10       at meeting both the legitimate needs of our

        11       citizens in apportioning revenue fairly and

        12       prudently with a due regard to the economic

        13       health of our state.

        14                  So I'm optimistic, looking forward,

        15       that we can step away from the bad practices

        16       of the past decades that have driven spending

        17       at perhaps too high a rate on an annual basis.

        18                  So I'm voting no, Mr. President.

        19                  ACTING PRESIDENT GRIFFO:    Senator

        20       Connor to be recorded in the negative.

        21                  Senator DeFrancisco, to explain his

        22       vote.

        23                  SENATOR DeFRANCISCO:    Yes, I just

        24       wanted to correct a couple of things

        25       concerning this past budget year.



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         1                  Actually, what happened was that

         2       the Senate's budget actually was less in

         3       dollar amount than the Governor's proposed

         4       budget.  And after the negotiations there was

         5       increases in various areas, but the proposed

         6       budget that was referred to as a 12 percent

         7       increase by Senator Krueger really was not a

         8       12 percent increase at all, it was under the

         9       Governor's number.

        10                  Secondly, with respect to political

        11       gimmicks, as Senator Connor mentioned, every

        12       time we try to propose something that would

        13       make a cap or a restraint on spending in the

        14       State of New York, it's referred to as a

        15       political gimmick.  And I just don't think

        16       that's a fair characterization of what it

        17       really is.

        18                  What it is is a way to make sure

        19       that our citizens will have a cap on spending.

        20       And if they don't want a cap on spending, they

        21       can say so when this bill, if it ever passed

        22       both houses twice, got to the voters for their

        23       determination.

        24                  And I think it's a prudent way to

        25       do things.  Because we can talk all we want



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         1       philosophically about how everyone is capable

         2       individually of doing wonderful things and

         3       controlling spending, but the track record for

         4       many, many years has been that that has not

         5       actually happened because of the realities of

         6       life in Albany and all the different interests

         7       that have to be satisfied, especially, as you

         8       can see, in years such as election years.

         9                  When the Governor came out with

        10       this proposal that we're going to be dealing

        11       with very shortly concerning cuts, you would

        12       think the world was going to end with the

        13       amount of communication that all of us

        14       received that the world's going to end if we

        15       make even modest cuts in last year's budget.

        16                  So we need some control.  And no

        17       matter what great faith or good faith we may

        18       be involved in and how we deal with the

        19       situation, the realities of life is we've got

        20       to have some control.  And I think a spending

        21       cap with an emergency provision is the control

        22       that we need.

        23                  I'm going to vote aye, or I do vote

        24       aye on this bill.

        25                  ACTING PRESIDENT GRIFFO:    Senator



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         1       DeFrancisco to be recorded in the affirmative.

         2                  Senator Craig Johnson, to explain

         3       his vote.

         4                  SENATOR CRAIG JOHNSON:    Thank you

         5       very much, Mr. President.

         6                  On March 12, 2008, I rose and voted

         7       aye on this bill for many of the reasons set

         8       forth by my Republican as well as some of

         9       Democratic colleagues.  Today I will be voting

        10       aye as well for many of those same reasons.

        11                  Thank you very much.

        12                  ACTING PRESIDENT GRIFFO:    Senator

        13       Craig Johnson to be recorded in the

        14       affirmative.

        15                  Announce the results.

        16                  THE SECRETARY:    Those recorded in

        17       the negative on Calendar Number 2251 are

        18       Senators Adams, Breslin, Connor, Diaz, Dilan,

        19       Duane, Gonzalez, Hassell-Thompson, Huntley,

        20       L. Krueger, C. Kruger, Montgomery, Parker,

        21       Perkins, Sampson, Savino, Serrano, Smith,

        22       Stavisky and Thompson.

        23                  Ayes, 38.  Nays, 20.

        24                  ACTING PRESIDENT GRIFFO:    The

        25       resolution is adopted.



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         1                  Senator Libous, that completes the

         2       controversial reading of the calendar.

         3                  SENATOR LIBOUS:    Thank you,

         4       Mr. President.

         5                  There will be an immediate meeting

         6       of the Transportation Committee in Room 332.

         7       And until that is complete, the Senate will

         8       stand at ease.

         9                  ACTING PRESIDENT GRIFFO:    There

        10       will be an immediate meeting of the

        11       Transportation Committee in Room 332.

        12                  The Senate will stand at ease.

        13                  (Whereupon, the Senate stood at

        14       ease at 4:35 p.m.)

        15                  ACTING PRESIDENT GRIFFO:    The

        16       Senate will come to order.

        17                  Senator Libous.

        18                  SENATOR LIBOUS:    Mr. President,

        19       there will be an immediate meeting of the

        20       Finance Committee in Room 332.

        21                  ACTING PRESIDENT GRIFFO:    There

        22       will be an immediate meeting of the Senate

        23       Finance Committee in Room 332.

        24                  The Senate continues to stand at

        25       ease.



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         1                  (Whereupon, the Senate reconvened

         2       at 5:35 p.m.)

         3                  ACTING PRESIDENT GRIFFO:    The

         4       Senate will come to order.

         5                  Senator Libous.

         6                  SENATOR LIBOUS:    Mr. President,

         7       could we please return to motions and

         8       resolutions and have the Resolution Calendar

         9       adopted, with the exception of Resolution

        10       Numbers 7114 and 7036.

        11                  ACTING PRESIDENT GRIFFO:    We will

        12       return to the order of motions and

        13       resolutions.

        14                  All in favor of adopting the

        15       Resolution Calendar, with the exceptions

        16       outlined, signify by saying aye.

        17                  (Response of "Aye.")

        18                  ACTING PRESIDENT GRIFFO:

        19       Opposed, nay.

        20                  (No response.)

        21                  ACTING PRESIDENT GRIFFO:    The

        22       Resolution Calendar is adopted.

        23                  Senator Libous.

        24                  SENATOR LIBOUS:    Mr. President,

        25       could we have Resolution Number 7114, by



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         1       Senator Maltese, please.  Read the title only.

         2                  ACTING PRESIDENT GRIFFO:    The

         3       Secretary will read.

         4                  THE SECRETARY:    By Senator

         5       Maltese, Legislative Resolution Number 7114,

         6       mourning the untimely death of Firefighter

         7       Kevin M. Delano, a man of singular distinction

         8       and extraordinary accomplishment, and paying

         9       tribute to his heroic efforts at the World

        10       Trade Center on 9/11.

        11                  ACTING PRESIDENT GRIFFO:    Senator

        12       Maltese.

        13                  SENATOR MALTESE:    I did not want

        14       this time to pass without saying a word --

        15                  ACTING PRESIDENT GRIFFO:    Excuse

        16       me, Senator Maltese.

        17                  Could we have order, please, in the

        18       chamber.

        19                  Senator Maltese.

        20                  SENATOR MALTESE:    -- without

        21       seeing a word about Kevin Delano.  Kevin was

        22       the chief of the West Hamilton Beach Fire

        23       Department for many, many years.  He was a

        24       volunteer fireman and everything that speaks

        25       of on behalf of the community.



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         1                  He and his family were involved in

         2       so many aspects of life in Hamilton Beach and

         3       Howard Beach.  He was a former firefighter, a

         4       firefighter, as has been indicated by the

         5       reading of the title, that spent untold hours

         6       down at the World Trade Center trying to find

         7       former colleagues and friends.

         8                  He has devoted a good part of his

         9       life to the community, to the Fire Department

        10       of the City of New York, and to the West

        11       Hamilton Beach Fire Department.  He will be

        12       sorely missed.  And the fact of the matter is

        13       that he is irreplaceable in our community.

        14                  Thank you, Mr. President.

        15                  ACTING PRESIDENT GRIFFO:    Thank

        16       you, Senator Maltese.

        17                  The question is on the resolution.

        18       All in favor signify by saying aye.

        19                  (Response of "Aye.")

        20                  ACTING PRESIDENT GRIFFO:

        21       Opposed, nay.

        22                  (No response.)

        23                  ACTING PRESIDENT GRIFFO:    The

        24       resolution is adopted.

        25                  Senator Libous.



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         1                  SENATOR LIBOUS:    Mr. President,

         2       Senator Maltese would like to open that up for

         3       cosponsorship.  So any member who doesn't want

         4       to be on it, if they would let the desk know.

         5                  ACTING PRESIDENT GRIFFO:    The

         6       resolution is open for cosponsorship.  If

         7       there's a member who does not wish to be a

         8       cosponsor, please notify the desk.

         9                  Senator Libous.

        10                  SENATOR LIBOUS:    We now have

        11       Resolution Number 7036, by Senators Valesky

        12       and DeFrancisco.  Could you read the title

        13       only, please.

        14                  ACTING PRESIDENT GRIFFO:    The

        15       Secretary will read.

        16                  THE SECRETARY:    By Senators

        17       Valesky and DeFrancisco, Legislative

        18       Resolution Number 7036, honoring Lopez Lomong

        19       upon the occasion of carrying the United

        20       States Flag during the opening ceremony of the

        21       2008 Summer Olympics.

        22                  ACTING PRESIDENT GRIFFO:    Senator

        23       Valesky.

        24                  SENATOR VALESKY:    Thank you,

        25       Mr. President.



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         1                  We were all here about a week and a

         2       half ago in special session considering such

         3       things as property tax caps and other pieces

         4       of legislation.  For those of you who were

         5       able to return home that evening, you will

         6       recall that we had an opportunity to witness

         7       one of the most spectacular opening ceremonies

         8       of Olympics in recent memory, the Beijing

         9       Games.

        10                  And if you had an opportunity to

        11       see those opening ceremonies, you undoubtedly

        12       were moved by the Parade of Nations and

        13       certainly the United States Olympic Team as it

        14       was led into the Bird's Nest Stadium in

        15       Beijing by a young man named Lopez Lomong.

        16                  The story, which you may also be

        17       familiar with, is the subject of the

        18       resolution before us today.  Lopez Lomong is

        19       one of the lost boys of Sudan who came to the

        20       Syracuse area, Onondaga County, through the

        21       Catholic Charities program.

        22                  Robert and Barbara Rogers adopted

        23       Mr. Lomong.  He entered the 10th grade at

        24       Tully High School in Southern Onondaga County.

        25       And he quickly distinguished himself in the



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         1       1500-meter event.

         2                  I think most significantly,

         3       Mr. President, he attained his citizenship in

         4       this country only one year ago.  And when the

         5       United States Olympic Team and its members and

         6       team captains had the opportunity to make a

         7       decision as to who would carry the United

         8       States flag into the stadium, they chose Lopez

         9       Lomong.  And those team captains indicated

        10       that one of the reasons why they chose him was

        11       because they were so impressed and said that

        12       he so deserved that honor of being the flag

        13       bearer because he, Lopez Lomong, was so proud

        14       of his citizenship.

        15                  And I think that's something that

        16       we can reflect on as we go about our business

        17       today, how significant that was someone, who

        18       only seven years ago was in a war-torn region

        19       of the world, came to the United States,

        20       worked as hardly as he possibly could to

        21       attain his citizenship only one year ago, made

        22       the United States Olympic Team, and was

        23       elected by his colleagues, chosen by his

        24       colleagues to be the flag bearer and to carry

        25       the Stars and Stripes into that stadium during



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         1       those opening ceremonies.

         2                  So, Mr. President, it's certainly

         3       fitting for us to acknowledge Lopez Lomong, to

         4       congratulate him -- and certainly we will do

         5       that upon his return from China, in person --

         6       but to also thank his foster parents and the

         7       Catholic Charities program that does such

         8       great work in helping resettle those Sudanese

         9       refugees.

        10                  Mr. President, I encourage all of

        11       my members to support this resolution and,

        12       with the consent of the Majority, ask that the

        13       resolution be open for cosponsorship by all of

        14       the members.

        15                  Thank you, Mr. President.

        16                  ACTING PRESIDENT GRIFFO:    Thank

        17       you, Senator Valesky.

        18                  Senator DeFrancisco.

        19                  SENATOR DeFRANCISCO:    Thank you,

        20       Mr. President.

        21                  Only in America.  You know,

        22       oftentimes in this day and age we hear

        23       criticism of the United States all over the

        24       world for this reason or that reason.  We hear

        25       criticism from our own citizens for various



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         1       policies -- some legitimate criticism, some

         2       not.

         3                  But only in America could this

         4       story ever have occurred where an individual

         5       who was in a refugee camp -- if I recall

         6       correctly, for almost 10 years -- from when he

         7       was a young boy, to come over to the United

         8       States, through the goodness of some people in

         9       Onondaga County, in the village of Tully,

        10       named the Rogerses, through a Catholic

        11       Charities program, and not only be welcomed

        12       with open arms but be given all of the

        13       benefits, through that family, of any other

        14       child that was living in the United States --

        15       and in fact was given so much love and so many

        16       opportunities by the family that he progressed

        17       to the point where he not only became a great

        18       athlete but a great student, went on to

        19       college, and excelled in track.

        20                  There were images all the way from

        21       China about his carrying the flag during the

        22       opening ceremonies.  But the shots that I'll

        23       remember is his foster parents, you know,

        24       cheering him on in the Olympics.  And, you

        25       know, that's really the most important part of



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         1       this, the love and affectionate that they had

         2       to make him reach a dream, from a refugee to

         3       carrying the American flag one year after he

         4       gets his citizenship.  What other country

         5       would ever have that kind of opportunity?

         6                  And I really want to commend not

         7       only the Rogerses but also Lopez himself and

         8       also all the individuals who were involved

         9       with the Olympics who made it possible for him

        10       to actually be the representative of the

        11       United States, to carry our flag at such a

        12       great event as the opening ceremonies for this

        13       year's Olympics.

        14                  So I could not be prouder of

        15       America and prouder of Lopez and especially,

        16       as well, as his foster parents, now parents,

        17       that I can't even express it.

        18                  So it's a wonderful thing, and I'm

        19       very happy to rise here and congratulate not

        20       only him but the entire United States for

        21       giving that opportunity to this young man.

        22                  ACTING PRESIDENT GRIFFO:    Thank

        23       you, Senator DeFrancisco.

        24                  The question is on the resolution.

        25       All in favor signify by saying aye.



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         1                  (Response of "Aye.")

         2                  ACTING PRESIDENT GRIFFO:

         3       Opposed, nay.

         4                  (No response.)

         5                  ACTING PRESIDENT GRIFFO:    The

         6       resolution is adopted.

         7                  Senator Libous.

         8                  SENATOR LIBOUS:    Mr. President,

         9       the sponsors also request that if members

        10       would like to go on, they would like to open

        11       it up for sponsorship.

        12                  So if someone does not want to be

        13       on the resolution, if they would let the desk

        14       know.  Otherwise, everyone will go on.

        15                  ACTING PRESIDENT GRIFFO:    Thank

        16       you, Senator Libous.

        17                  The resolution is open for

        18       sponsorship.  Anyone who does not wish to

        19       cosponsor the resolution please notify the

        20       desk.

        21                  Senator Libous.

        22                  SENATOR LIBOUS:    Could we now

        23       return to the reports of standing committees.

        24       I believe there's a Finance Committee report

        25       at the desk.



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         1                  ACTING PRESIDENT GRIFFO:    Reports

         2       of standing committees.

         3                  The Secretary will read the report

         4       of the Finance Committee.

         5                  THE SECRETARY:    Senator O.

         6       Johnson, from the Committee on Finance,

         7       reports the following nominations.

         8                  As a member of the Metropolitan

         9       Transportation Authority, Allen P. Cappelli,

        10       of Staten Island.

        11                  ACTING PRESIDENT GRIFFO:    Senator

        12       O. Johnson.

        13                  SENATOR OWEN JOHNSON:    Move the

        14       nomination.

        15                  ACTING PRESIDENT GRIFFO:    The

        16       nomination is moved.

        17                  Senator Savino.

        18                  SENATOR SAVINO:    Thank you,

        19       Mr. President.

        20                  I would like to commend Governor

        21       Paterson for this nomination.  Allen Cappelli

        22       is not just a constituent of my district, he

        23       is my friend.  He is also one of the most

        24       dedicated public servants that we have in

        25       Staten Island.



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         1                  As some of you may be aware, we had

         2       an appointee to the MTA board by the previous

         3       governor and by the previous governor to that.

         4       His name was Frank Powers.  He was a very

         5       prominent member of the Staten Island

         6       community and also a dedicated member of

         7       Staten Island and a great voice for Staten

         8       Islanders at the MTA.

         9                  Sadly, he passed away about a month

        10       ago.  And many of us in Staten Island, while

        11       we were mourning for Frank Powers, we were

        12       also concerned that with his passing there

        13       would be a void on the MTA board for Staten

        14       Islanders.

        15                  You've heard me lament several

        16       times -- and I'm sure if Senator Lanza was

        17       here, he would concur -- that Staten Island is

        18       often ignored and left behind by the MTA.  So

        19       we were quite concerned that with the passing

        20       of Frank Powers that the Governor would take

        21       this opportunity to replace Mr. Powers with

        22       someone who wasn't a Staten Islander.

        23                  And we are very happy and pleased

        24       that Governor Paterson has decided to nominate

        25       Allen Cappelli.  Allen Cappelli is not just a



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         1       native islander, as I said in the

         2       Transportation Committee, he's a native

         3       New Yorker.  He understands the needs of the

         4       people that he calls his neighbors.  But he

         5       also understands the transportation

         6       disparities that affect the entire region that

         7       the MTA serves.

         8                  So I am very pleased and proud to

         9       stand here and say congratulations to my

        10       friend Allen Cappelli.  And I will tell you, I

        11       promised him when he appears at public

        12       hearings I will try not to yell at him too

        13       much -- but I can't guarantee that, Allen.

        14                  So congratulations.

        15                  ACTING PRESIDENT GRIFFO:    Senator

        16       Marcellino.

        17                  SENATOR MARCELLINO:    Thank you,

        18       Mr. President.

        19                  I rise to support the nomination of

        20       Mr. Cappelli, and I will.  And not just

        21       because I met him a few minutes ago and read

        22       his extensive resume, but because his sister

        23       lives in my district and she'd probably vote

        24       against me if I didn't vote for you.

        25                  So I will stand and support this



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         1       nomination because I think it's a good one.

         2       From what I've read and what I've heard about

         3       Mr. Cappelli, he has an excellent resume and

         4       he has a history of dedicated public service.

         5       And I commend him for that.

         6                  I thank him for his willingness to

         7       serve on what will be and probably is one of

         8       the most thankless positions that the Governor

         9       could probably appoint someone to.  You're

        10       going to take a lot of heat.  As you heard

        11       some part of it in the confirmation hearings

        12       before the Finance Committee, it isn't an easy

        13       job.

        14                  We need a voice on the MTA for the

        15       commuter.  We need a voice for the people.

        16       People in my district spend in excess of $300

        17       monthly to just go to work.  That's a lot of

        18       money.  That's too much money taken out of

        19       their pockets, especially when you talk about

        20       rising gasoline prices and home heating oil

        21       and all the rest of that stuff that's going

        22       up -- and food prices and everything else --

        23       to have to spend 300-plus, nearly $400 a month

        24       just to go to work.

        25                  The MTA's seemingly only response



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         1       to shortfalls that they say they have -- and

         2       sometimes the books that they show us support

         3       that, and sometimes the books that they show

         4       us don't support that.  Even the Comptroller

         5       has said that the questionable budget

         6       practices that have occurred there make their

         7       books questionable, and he's reviewing the

         8       issue and wants to look at them more closely.

         9                  I strongly suggest and I strongly

        10       urge Mr. Cappelli to be a strong, vigorous

        11       voice for the public.  They need it.  We don't

        12       need another rubber stamp.  We don't need

        13       someone who's just going to go back and say,

        14       Oh, we have a need for money, let's look to

        15       the commuter and take money of their pockets.

        16                  We want them out of their cars, we

        17       want them on mass transportation.  The policy

        18       of the MTA in recent years has been driving

        19       them out of the mass transportation and back

        20       to their cars.  It's just the opposite of what

        21       we need and what we want and what's best for

        22       our country and what's best for our state and

        23       what's best for our people.

        24                  The MTA's history, as I said

        25       earlier, not a good one.  Hopefully,



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         1       Mr. Cappelli, you will be a good voice and a

         2       presence that will help turn that around.  I

         3       look forward to working with you.  I will

         4       support anything you can do to change their

         5       philosophy of hit the commuter first and look

         6       for cuts in process last.

         7                  We've got to improve the service

         8       and we've got to have a strong voice for the

         9       commuting public.  It's an absolute necessity

        10       if we're going to move this state forward in a

        11       positive direction.

        12                  Again, I'm pleased to support your

        13       nomination, sir, and look forward to working

        14       with you.

        15                  ACTING PRESIDENT GRIFFO:    Senator

        16       Connor.

        17                  SENATOR CONNOR:    Thank you,

        18       Mr. President.

        19                  I rise to support this nominee's

        20       confirmation.  I congratulate the Governor on

        21       such an excellent appointment.

        22                  I first met Allen Cappelli I guess

        23       it was 30 years ago.  He was running for the

        24       Assembly, I think in 1980.  Maybe it was '78?

        25       I don't know, it was back then.  And that's



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         1       when I first met Allen.

         2                  And then I had the distinct

         3       pleasure in 1982, after redistricting, to

         4       represent the north shore of Staten Island for

         5       the ensuing 10 years.

         6                  One of the great endeavors of those

         7       '80s for Staten Islanders, led by Senator

         8       Marchi, was in fact the study of secession of

         9       Staten Island from the rest of New York City.

        10       And legislation passed both houses and was

        11       signed by the governor to set up a commission

        12       to seriously investigate the ramification and

        13       possibility of secession.

        14                  The legislation set up a commission

        15       consisting of each legislator representing

        16       Staten Island plus one appointee of each such

        17       legislator.  As a result, I was, for the

        18       ensuing number of years, the only non-Staten

        19       Islander who sat on the Staten Island

        20       secession study commission.

        21                  And at the time I needed to appoint

        22       someone as my appointee to serve as well as a

        23       commissioner.  And I toyed with the idea of

        24       appointing another Brooklynite, but I didn't

        25       think that was appropriate.  And in fact I was



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         1       quite happy to appoint Allen Cappelli to serve

         2       on that commission.

         3                  And the commission did interesting

         4       work, fine work.  It came to a crashing end, I

         5       suppose, when this Legislature wouldn't act on

         6       the next step.

         7                  But I've known Allen all these

         8       years.  We've come together in various

         9       governmental interactions as well as political

        10       interactions.  We remain friends.  And he is

        11       indeed one of my -- and when I was

        12       redistricted, I said, "Well, Allen Cappelli is

        13       one of my oldest friends in Staten Island."

        14                  And so I am delighted.  His wealth

        15       of government experience and his wealth of

        16       community experience make him uniquely

        17       qualified to serve as Staten Island's

        18       representative and all of our representative

        19       on the MTA board.

        20                  So, Mr. President, I urge an

        21       affirmative vote by everyone and look forward

        22       to working with Allen when he serves on the

        23       MTA board.  Thank you.

        24                  ACTING PRESIDENT GRIFFO:    Senator

        25       Craig Johnson.



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         1                  SENATOR CRAIG JOHNSON:    Thank you

         2       very much, Mr. President.  I too rise to

         3       support the nomination.

         4                  I commend our Governor for placing

         5       Mr. Cappelli in nomination.  I thank Senator

         6       Savino -- and, Mr. Cappelli, you should too as

         7       well -- who was a very vocal advocate on your

         8       behalf for the Democratic conference.

         9                  But I think what's important during

        10       the nomination process and the seconding

        11       process is to listen to the members of this

        12       body, both Democratic and Republican, because

        13       we do represent the entire voice of New York

        14       State.  And I listened to the words of my

        15       friend and colleague Senator Marcellino, who

        16       represents an adjoining district of mine on

        17       Long Island.

        18                  And Long Islanders have tremendous

        19       needs for mass transit.  We have tremendous

        20       concerns with the rising fares that are

        21       occurring on the Long Island Railroad.  I hope

        22       you have an open mind.  Because what I have

        23       found, in my experience with members of the

        24       board of the MTA recently, is they don't have

        25       an open mind and they seem to be rather



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         1       close-minded when it comes to listening to

         2       members of this body and in taking their

         3       advice.

         4                  And so when I reach out to you --

         5       and I will be reaching out to you shortly on

         6       an issue called the Third Track Project, the

         7       Main Line Corridor Project, which will

         8       systematically destroy communities within my

         9       Senate district -- I hope you have an open

        10       mind to listen and to hear the concerns from

        11       my residents and to actually maybe take into

        12       account that we can save $1.5 billion in the

        13       MTA budget by not going forward with this

        14       project.

        15                  Because this project is a waste of

        16       money and is unnecessary.  And I've been

        17       looking for people to talk to on the MTA board

        18       who will just spend the time to listen and not

        19       just keep repeating the same old tired lines

        20       and lies that have been repeated time and time

        21       again to the residents of my district and to

        22       the residents of Long Island.

        23                  So I look forward to working with

        24       you on that issue as well as other issues that

        25       affect our commuters and our residents and our



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         1       constituents.

         2                  But I congratulate you today.  I

         3       look forward to working with you as soon as

         4       you're confirmed.  Thank you very much.

         5                  Thank you, Mr. President.

         6                  ACTING PRESIDENT GRIFFO:    The

         7       question is on the nomination of Allen

         8       Cappelli as a member of the board of the MTA.

         9       All in favor signify by saying aye.

        10                  (Response of "Aye.")

        11                  ACTING PRESIDENT GRIFFO:

        12       Opposed, nay.

        13                  (No response.)

        14                  ACTING PRESIDENT GRIFFO:    The

        15       nominee is confirmed.

        16                  Congratulations, Mr. Cappelli.  He

        17       is with us in the chamber today.  Our best

        18       wishes.

        19                  (Applause.)

        20                  ACTING PRESIDENT GRIFFO:    The

        21       Secretary will read.

        22                  THE SECRETARY:    As commissioner

        23       of the Port Authority of New York and New

        24       Jersey, Fred P. Hochberg, of New York City.

        25                  As trustees of the Power Authority



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         1       of the State of New York, Jonathan F. Foster,

         2       of Bedford, and Eugene L. Nicandri, of

         3       Massena.

         4                  As a member of the Empire State

         5       Plaza Art Commission, Kate Johns, of Old

         6       Chatham.

         7                  As a member of the State Council on

         8       the Arts, Deborah Ronnen, of Rochester.

         9                  As a member of the Continuing Care

        10       Retirement Community Council, Joseph F. Pofit,

        11       of Slingerlands.

        12                  As a member of the State Hospital

        13       Review and Planning Council, James A. Ghent,

        14       Jr., of Churchville.

        15                  And as members of the Board of

        16       Visitors of the Agricultural and Industrial

        17       School at Industry, Carmen I. Aponte, Ph.D.,

        18       of Rochester; Roy W. King, of Rochester; and

        19       Howard A. Moore, Sr., of Rochester.

        20                  ACTING PRESIDENT GRIFFO:    Senator

        21       Johnson.

        22                  SENATOR O. JOHNSON:    Move all the

        23       nominations.

        24                  ACTING PRESIDENT GRIFFO:    The

        25       question is on the confirmation of the



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         1       nominees as read.  All in favor signify by

         2       saying aye.

         3                  (Response of "Aye.")

         4                  ACTING PRESIDENT GRIFFO:

         5       Opposed, nay.

         6                  (No response.)

         7                  ACTING PRESIDENT GRIFFO:    The

         8       individuals that have been read are hereby

         9       confirmed to the positions indicated.

        10                  Senator Libous.

        11                  SENATOR LIBOUS:    Mr. President,

        12       in consultation with the Minority Leader,

        13       Senator Skelos hands up the following

        14       committee assignments for filing.

        15                  ACTING PRESIDENT GRIFFO:    They

        16       will be filed in the Journal.

        17                  SENATOR LIBOUS:    And if you would

        18       recognize Senator Dilan, please.

        19                  ACTING PRESIDENT GRIFFO:    Senator

        20       Dilan.

        21                  SENATOR DILAN:    Yes,

        22       Mr. President, there will be an immediate

        23       meeting of the Minority conference in

        24       Room 315.

        25                  ACTING PRESIDENT GRIFFO:    There



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         1       will be an immediate meeting of the Minority

         2       conference in Room 315.

         3                  Senator Libous.

         4                  SENATOR LIBOUS:    Mr. President,

         5       there will also be an immediate meeting of the

         6       Majority conference in Room 332.

         7                  And there being no further

         8       business, Mr. President, this session will

         9       stand adjourned at the call of the Majority

        10       Leader.

        11                  ACTING PRESIDENT GRIFFO:    There

        12       will be an immediate meeting of the Senate

        13       Majority in Room 332.

        14                  Senator Libous.

        15                  SENATOR LIBOUS:    Mr. President,

        16       before you do adjourn this session, I do want

        17       everyone to be reminded that the extraordinary

        18       session is still in recess and that we will be

        19       coming back at some point this evening.

        20                  So this session may close for now;

        21       we are still in session.

        22                  ACTING PRESIDENT GRIFFO:    So

        23       noted.

        24                  On motion, the Senate stands

        25       adjourned in regular session until the call of



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         1       the Majority Leader, intervening days being

         2       legislative days.

         3                  (Whereupon, at 6:00 p.m., the

         4       Senate adjourned.)

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