Regular Session - March 26, 2013

                                                                   1292

 1               NEW YORK STATE SENATE

 2                          

 3                          

 4              THE STENOGRAPHIC RECORD

 5                          

 6                          

 7                          

 8                          

 9                  ALBANY, NEW YORK

10                   March 26, 2013

11                     5:49 p.m.

12                          

13                          

14                  REGULAR SESSION

15  

16  

17  

18  SENATOR DAVID J. VALESKY, Acting President

19  FRANCIS W. PATIENCE, Secretary

20  

21  

22  

23  

24  

25  


                                                               1293

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

 2                ACTING PRESIDENT VALESKY:   The 

 3   Senate will come to order.  

 4                I ask everyone present to please 

 5   rise and recite with me the Pledge of 

 6   Allegiance.

 7                (Whereupon, the assemblage recited 

 8   the Pledge of Allegiance to the Flag.)

 9                ACTING PRESIDENT VALESKY:   In the 

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

11   moment of silence.

12                (Whereupon, the assemblage 

13   respected a moment of silence.)

14                ACTING PRESIDENT VALESKY:   The 

15   reading of the Journal.  

16                The Secretary will read.

17                THE SECRETARY:   In Senate, Monday, 

18   March 25th, the Senate met pursuant to 

19   adjournment.  The Journal of Sunday, March 24th, 

20   was read and approved.  On motion, Senate 

21   adjourned.

22                ACTING PRESIDENT VALESKY:   Without 

23   objection, the Journal stands approved as read.

24                Presentation of petitions.

25                Messages from the Assembly.


                                                               1294

 1                Messages from the Governor.

 2                Reports of standing committees.

 3                Reports of select committees.

 4                Communications and reports from 

 5   state officers.

 6                Motions and resolutions.

 7                Senator Libous.

 8                SENATOR LIBOUS:   Thank you, 

 9   Mr. President.  

10                I do have a motion, Mr. President.  

11   On behalf my friend and colleague Senator 

12   Zeldin, I move that the following bill be 

13   discharged from its respective committee and be 

14   recommitted with instructions to strike the 

15   enacting clause.  It would be Senate Print 3709, 

16   Mr. President.

17                ACTING PRESIDENT VALESKY:   So 

18   ordered.

19                Senator Libous.  

20                SENATOR LIBOUS:   Mr. President, at 

21   this time could we have the noncontroversial 

22   reading of the calendar, please.

23                ACTING PRESIDENT VALESKY:   The 

24   Secretary will read.

25                THE SECRETARY:   Calendar Number 


                                                               1295

 1   113, by Senator Maziarz, Senate Print 1119A, an 

 2   act to amend the Environmental Conservation Law.

 3                ACTING PRESIDENT VALESKY:   Read 

 4   the last section.

 5                THE SECRETARY:   Section 2.  This 

 6   act shall take effect immediately.

 7                ACTING PRESIDENT VALESKY:   Call 

 8   the roll.

 9                (The Secretary called the roll.)

10                ACTING PRESIDENT VALESKY:   Senator 

11   Maziarz.

12                SENATOR MAZIARZ:   Mr. President, 

13   just to very briefly explain my vote.  

14                I appreciate my colleagues' support 

15   of this legislation.  I just want to note that 

16   both the chair of the EnCon Committee, 

17   Senator Grisanti, the ranking Democratic member, 

18   Senator Avella, and the ranking Democratic 

19   member of the Energy Committee are cosponsors of 

20   this legislatiOn.  

21                This legislation is very positive 

22   for business in the State of New York and it's 

23   very positive for the environment in the State 

24   of New York.  You know, a few years ago I passed 

25   an Article 10 siting bill, and at that time 


                                                               1296

 1   Senator LaValle remarked on the number of the 

 2   memos of support that we had from environmental 

 3   and business groups.  This is the same type of 

 4   legislation.  This bill both helps the 

 5   environment and it helps business.  

 6                Over 40-plus years ago, there was an 

 7   accident on Staten Island with what they thought 

 8   at the time was liquefied natural gas, and it was 

 9   not, ironically enough.  And the Legislature back 

10   then overreacted; they banned liquefied natural 

11   gas.  Today New York is the only state, the only 

12   state that bans liquefied natural gas.  

13                UPS wants to convert all of their 

14   trucks in Florida, Texas, Georgia, New Jersey, 

15   California and New York to liquefied natural gas 

16   to save the environment and to save their company 

17   money.  Imagine, thousands of UPS trucks burning 

18   diesel fuel or liquefied natural gas, what that's 

19   going to do for the environment and save that 

20   company a whole lot of money.  

21                They could do it in all those other 

22   states except New York.  They were stunned to 

23   hear that.  We can change that.  Obviously I do 

24   not speak for the Governor, but the Governor, in 

25   some private conversations he had in the City of 


                                                               1297

 1   Buffalo with one business organization, is very 

 2   interested in this legislation.  

 3                So I vote in the affirmative.  

 4                Thank you, Mr. President.

 5                ACTING PRESIDENT VALESKY:   Senator 

 6   Maziarz in the affirmative.

 7                Senator O'Mara.

 8                SENATOR O'MARA:   I'd like to rise 

 9   in support of this legislation and thank 

10   Senator Maziarz for moving this long overdue 

11   legislation in New York to allow the 

12   transportation and storage of LNG.  

13                We've been behind the curve in 

14   New York in allowing our trucking fleets to make 

15   the switch from diesel to cleaner-burning 

16   compressed natural gas and, in this case, liquid 

17   natural gas that provides much greatly reduced 

18   emissions in the transportation of goods and 

19   merchandise across our state.  

20                We have locomotives that are turning 

21   to LNG alternatives for fueling of this, and it's 

22   the trend of the future and something that we 

23   definitely have needed to do here in New York for 

24   a long time.  

25                So I vote aye.


                                                               1298

 1                ACTING PRESIDENT VALESKY:   Senator 

 2   O'Mara in the affirmative.

 3                Senator Little to explain her vote.

 4                SENATOR LITTLE:   Thank you, 

 5   Mr. President.

 6                I'd like to thank Senator Maziarz 

 7   for putting forth this bill.  

 8                In my district I have International 

 9   Paper, which employs over 600 people in Essex 

10   County, and they are awaiting a natural gas line 

11   that will be installed probably by 2014 coming 

12   down from Vermont and spending I believe it's 

13   over $70 million for that.  

14                In the meantime, they have expressed 

15   an interest and almost a real necessity to put in 

16   one of these liquid natural gas provisions so 

17   that they could begin the transfer of oil to 

18   natural gas.  

19                So I think this is a very important 

20   bill and certainly is going to help my district 

21   and those who are employed by International 

22   Paper.  I vote aye.

23                ACTING PRESIDENT VALESKY:   Senator 

24   Little to be recorded in the affirmative.

25                Announce the results.


                                                               1299

 1                THE SECRETARY:   In relation to 

 2   Calendar Number 113, those recorded in the 

 3   negative are Senators Gipson, LaValle and 

 4   Martins.

 5                Ayes, 52.  Nays, 3.

 6                ACTING PRESIDENT VALESKY:   The bill 

 7   is passed.

 8                THE SECRETARY:   Calendar Number 

 9   193, by Senator Skelos, Senate Print 1905, an act 

10   to amend the Penal Law.

11                ACTING PRESIDENT VALESKY:   Read the 

12   last section.

13                THE SECRETARY:  Section 4.  This act 

14   shall take effect on the first of November.

15                ACTING PRESIDENT VALESKY:   Call the 

16   roll.

17                (The Secretary called the roll.)

18                ACTING PRESIDENT VALESKY:   Senator 

19   DeFrancisco.

20                SENATOR DeFRANCISCO:   Yes, I'm 

21   going to vote aye on this bill.  

22                And the importance of it was just 

23   seen in Onondaga County where a librarian and her 

24   10-year-old daughter were in their car in a mall 

25   frequented by everybody, a huge mall in the 


                                                               1300

 1   area -- Great Northern Mall -- were abducted in 

 2   their car, driven to a location, the 10-year-old 

 3   girl was raped and the mother was killed.

 4                And these crimes dealing with cars 

 5   with children in them and taking these cars, you 

 6   know, we do have to increase penalties to make 

 7   that happen, to make the right thing happen.  

 8                He should have been in jail for 

 9   another offense.  And ironically, sadly, 

10   horrifically, he had been on some type of 

11   probation in federal court.  He was out of jail 

12   with an ankle bracelet, and he was able to 

13   disconnect the signal and no one noticed that.  

14                I mean, you know, I don't know 

15   what's going on in the world.  But we do need 

16   stronger penalties for people who simply should 

17   not be in the world committing these crimes, they 

18   should be behind bars.  

19                So this is an important bill, and I 

20   vote aye.

21                ACTING PRESIDENT VALESKY:   Senator 

22   DeFrancisco to be recorded in the affirmative.

23                Announce the results.

24                THE SECRETARY:   Ayes, 54.  Nays, 

25   1.  Senator Parker recorded in the negative.


                                                               1301

 1                ACTING PRESIDENT VALESKY:   The bill 

 2   is passed.

 3                THE SECRETARY:   Calendar Number 

 4   209, by Senator Larkin, Senate Print 284, an act 

 5   to amend the General Business Law.

 6                ACTING PRESIDENT VALESKY:   Read the 

 7   last section.

 8                THE SECRETARY:   Section 3.  This 

 9   act shall take effect on the 180th day.

10                ACTING PRESIDENT VALESKY:   Call the 

11   roll.

12                (The Secretary called the roll.)

13                THE SECRETARY:   Ayes, 55.

14                ACTING PRESIDENT VALESKY:   The bill 

15   is passed.

16                THE SECRETARY:   Calendar Number 

17   251, by Senator Fuschillo, Senate Print 779, an 

18   act to amend the Penal Law.

19                ACTING PRESIDENT VALESKY:   Read the 

20   last section.

21                THE SECRETARY:   Section 2.  This 

22   act shall take effect on the first of November.

23                ACTING PRESIDENT VALESKY:   Call the 

24   roll.

25                (The Secretary called the roll.)


                                                               1302

 1                THE SECRETARY:   Ayes, 55.

 2                ACTING PRESIDENT VALESKY:   The bill 

 3   is passed.

 4                THE SECRETARY:   Calendar Number 

 5   255, by Senator Golden, Senate Print 2244, an act 

 6   to amend the Penal Law.

 7                ACTING PRESIDENT VALESKY:   Read the 

 8   last section.

 9                THE SECRETARY:   Section 2.  This 

10   act shall take effect on the first of November.

11                ACTING PRESIDENT VALESKY:   Call the 

12   roll.

13                (The Secretary called the roll.)

14                THE SECRETARY:   Ayes, 55.

15                ACTING PRESIDENT VALESKY:   The bill 

16   is passed.

17                THE SECRETARY:   Calendar Number 

18   256, by Senator Klein, Senate Print 2261, an act 

19   to amend the Penal Law.

20                ACTING PRESIDENT VALESKY:   Read the 

21   last section.

22                THE SECRETARY:   Section 2.  This 

23   act shall take effect immediately.

24                ACTING PRESIDENT VALESKY:   Call the 

25   roll.


                                                               1303

 1                (The Secretary called the roll.)

 2                THE SECRETARY:   Ayes, 54.  Nays, 

 3   1.  Senator Montgomery recorded in the negative.

 4                ACTING PRESIDENT VALESKY:   The bill 

 5   is passed.

 6                Senator Libous, that completes the 

 7   noncontroversial reading of the calendar.

 8                SENATOR LIBOUS:   Mr. President, the 

 9   Senate will stand at ease, but we will call a 

10   Finance Committee meeting in Room 332 at 8:15, a 

11   Finance Committee meeting at 8:15 in Room 332.  

12                Until then, the Senate will stand at 

13   ease.

14                ACTING PRESIDENT VALESKY:   Meeting 

15   of the Senate Finance Committee at 8:15 in 

16   Room 332.  The Senate stands at ease.

17                (Whereupon, the Senate stood at ease 

18   at 5:59 p.m.)

19                (Whereupon, the Senate reconvened at 

20   8:30 p.m.)

21                ACTING PRESIDENT VALESKY:   Senator 

22   Libous.

23                SENATOR LIBOUS:   Mr. President, 

24   there will be a meeting of the Finance Committee 

25   at 9:00 a.m. in Room 332, a meeting of the 


                                                               1304

 1   Finance Committee at 9:00 a.m. in Room 332.  

 2                ACTING PRESIDENT VALESKY:   I think 

 3   you probably mean 9:00 p.m., Senator Libous.

 4                SENATOR LIBOUS:   Nine p.m., I'm 

 5   sorry.  No wonder Rebecca is looking at me like I 

 6   have two heads.

 7                (Laughter.)

 8                SENATOR LIBOUS:  I'm already 

 9   thinking about going home.

10                (Laughter.)

11                ACTING PRESIDENT VALESKY:   The 

12   Senate Finance Committee will meet at 9:00 p.m. 

13   in Room 332 of the Capitol.  

14                The Senate will stand at ease.

15                (Whereupon, the Senate stood at ease 

16   at 8:31 p.m.)

17                (Whereupon, the Senate reconvened at 

18   9:26 p.m.)

19                ACTING PRESIDENT VALESKY:   Senator 

20   Libous.

21                SENATOR LIBOUS:   Mr. President, 

22   could we go back to reports of standing 

23   committees.  I believe there's a report of the 

24   Finance Committee at the desk.

25                ACTING PRESIDENT VALESKY:   There is 


                                                               1305

 1   a report of the Finance Committee at the desk.  

 2                The Secretary will read.

 3                THE SECRETARY:   Senator 

 4   DeFrancisco, from the Committee on Finance, 

 5   reports the following bills:  

 6                Senate Print 2600E, Senate Budget 

 7   Bill, an act making appropriations; 

 8                Senate 2601A, Senate Budget Bill, an 

 9   act making appropriations; 

10                Senate 2603E, Senate Budget Bill, an 

11   act making appropriations;

12                Senate 2606D, Senate Budget Bill, an 

13   act to amend Chapter 59 of the Laws of 2011; 

14                Senate 2607D, Senate Budget Bill, an 

15   act in relation in school district eligibility;

16                And Senate 2609D, Senate Budget 

17   Bill, an act to amend the Tax Law.  

18                All bills ordered direct to third 

19   reading.

20                ACTING PRESIDENT VALESKY:   Senator 

21   Libous.  

22                SENATOR LIBOUS:   Mr. President, can 

23   I now move that we accept the report of the 

24   Finance Committee.

25                ACTING PRESIDENT VALESKY:   All 


                                                               1306

 1   those in favor of accepting the report of the 

 2   Finance Committee signify by saying aye.

 3                (Response of "Aye.")

 4                ACTING PRESIDENT VALESKY:   Opposed, 

 5   nay.

 6                (Response of "Nay.")

 7                ACTING PRESIDENT VALESKY:   The 

 8   report of the Finance Committee is accepted.

 9                Senator Libous.

10                SENATOR LIBOUS:   Mr. President, I 

11   think we need to just chill for a minute as they 

12   put the supplemental calendar on everybody's 

13   desk, and then we'll get moving.

14                (Pause.)

15                ACTING PRESIDENT VALESKY:   Senator 

16   Libous.

17                SENATOR LIBOUS:   Mr. President, if 

18   we could bring a little order to the house.

19                ACTING PRESIDENT VALESKY:  

20   (Gaveling.)  Senator Libous.  

21                SENATOR LIBOUS:   We will now have 

22   the noncontroversial reading of Supplemental 

23   Calendar 26A, please.

24                ACTING PRESIDENT VALESKY:   The 

25   Secretary will read.


                                                               1307

 1                THE SECRETARY:   Calendar Number 

 2   273, Senate Budget Bill, Senate Print 2600E, an 

 3   act making appropriations.

 4                SENATOR GIANARIS:   Lay it aside.

 5                ACTING PRESIDENT VALESKY:   The bill 

 6   is high.

 7                Senator Libous.

 8                SENATOR LIBOUS:   The bill is high; 

 9   please lay it aside.

10                ACTING PRESIDENT VALESKY:   The bill 

11   is high and will be laid aside.

12                THE SECRETARY:   Calendar Number 

13   274, Senate Budget Bill, Senate Print 2601A, an 

14   act making appropriations.

15                SENATOR GIANARIS:   Lay it aside.

16                ACTING PRESIDENT VALESKY:   The bill 

17   is laid aside.

18                THE SECRETARY:   Calendar Number 

19   275, Senate Budget Bill, Senate Print 2603E, an 

20   act making appropriations.

21                SENATOR GIANARIS:   Lay it aside.

22                SENATOR LIBOUS:   The bill is high; 

23   lay it aside, please.

24                ACTING PRESIDENT VALESKY:   The bill 

25   is high and will be laid aside.


                                                               1308

 1                THE SECRETARY:   Calendar Number 

 2   276, Senate Budget Bill, Senate Print 2606D, an 

 3   act to amend Chapter 59 of the Laws of 2011.

 4                SENATOR GIANARIS:   Lay it aside.

 5                ACTING PRESIDENT VALESKY:   The bill 

 6   is laid aside.

 7                THE SECRETARY:   Calendar Number 

 8   277, Senate Budget Bill, Senate Print 2607D, an 

 9   act in relation --

10                SENATOR LIBOUS:   The bill is high; 

11   lay it aside.

12                ACTING PRESIDENT VALESKY:   The bill 

13   is high and will be laid aside.

14                THE SECRETARY:   Calendar Number 

15   278, Senate Budget Bill, Senate Print 2609D --

16                SENATOR LIBOUS:   That bill is also 

17   high.  Could we lay it aside, please.

18                ACTING PRESIDENT VALESKY:   The bill 

19   is high and will be laid aside.

20                Senator Libous, that completes the 

21   noncontroversial reading of Senate Supplemental 

22   Calendar 26A.

23                SENATOR LIBOUS:   Mr. President, can 

24   we have the controversial reading of the 

25   calendar, please.


                                                               1309

 1                ACTING PRESIDENT VALESKY:   The 

 2   Secretary will ring the bells.  

 3                The Secretary will read.

 4                THE SECRETARY:   Calendar Number 

 5   274, Senate Budget Bill, Senate Print 2601A, an 

 6   act making appropriations.  

 7                SENATOR GIANARIS:   Point of 

 8   clarification, Mr. President.

 9                ACTING PRESIDENT VALESKY:   Senator 

10   Gianaris, why do you rise?

11                SENATOR GIANARIS:   Because we've 

12   been dealing with a lot of bills tonight, I just 

13   want to clarify.  This is the Legislature and 

14   Judiciary Budget?

15                ACTING PRESIDENT VALESKY:   That's 

16   correct.

17                SENATOR GIANARIS:   Thank you.

18                ACTING PRESIDENT VALESKY:   Read the 

19   last section.

20                THE SECRETARY:   Section 5.  This 

21   act shall take effect immediately.

22                ACTING PRESIDENT VALESKY:   Senator 

23   Krueger.

24                SENATOR KRUEGER:   Thank you.

25                Mr. President, the Budget Reform Law 


                                                               1310

 1   Section 54 --

 2                ACTING PRESIDENT VALESKY:   Senator 

 3   Krueger, are you speaking on the bill?  

 4                SENATOR KRUEGER:   It's a point of 

 5   order on the bill, Mr. President.  Thank you.

 6                We do have, unlike two nights ago, 

 7   the report on the enacted state fiscal year on 

 8   our desks.  But also the same law I was 

 9   referencing the other night requires that before 

10   voting upon appropriation bills submitted by the 

11   Governor, each house shall have on its desks not 

12   only the full report of such bill and then the 

13   full report on the entire budget.  

14                So my question is, since this is an 

15   appropriation bill and it has aged more than 

16   three days, do we have a report on the bill on 

17   our desks?

18                ACTING PRESIDENT VALESKY:   Senator 

19   DeFrancisco.

20                SENATOR DeFRANCISCO:   The answer to 

21   that question is yes.  

22                The report dealing with the 

23   Legislative and Judiciary Budget bill is on 

24   page 60 and 61 of the booklet entitled "Report on 

25   the Enacted State Fiscal Year 2013-2014 Executive 


                                                               1311

 1   Budget."

 2                SENATOR KRUEGER:   Through you, 

 3   Mr. President, I want to thank the sponsor.  

 4                I have a follow-up point of order 

 5   for you.  Is it not the requirement of the Senate 

 6   that a memo be on our desks describing the 

 7   substance of each bill?  Is there a memo on this 

 8   bill on our desks?  

 9                ACTING PRESIDENT VALESKY:   Senator 

10   DeFrancisco.

11                SENATOR DeFRANCISCO:   I don't know 

12   what you define as "memo."  But there are 61 

13   concise pages outlining each of the budget bills 

14   in this report.  Whether this is called a report, 

15   a memo or both, this satisfies the requirement 

16   that you just mentioned.

17                SENATOR KRUEGER:   Through you, 

18   Mr. President.  Thank you.

19                Well, I accept that the Report on 

20   the Enacted State Fiscal Year 2013-2014 Executive 

21   Budget describes sections of each bill.  And I 

22   accept, as my colleague just highlighted, that 

23   the sections on the Legislative and Judiciary 

24   Budget bill are on pages 60 and 61.  

25                But I'm not sure I do agree that 


                                                               1312

 1   this is a memo to the bills, because this simply 

 2   talks about what has changed or is different in 

 3   the budget bills, not the full details of the 

 4   bill.  So I'm not sure it does meet the standard 

 5   of a memo on the bill.

 6                So I suppose it's a point of order 

 7   and I'm asking you for your understanding of 

 8   whether this meets the definition of memos on 

 9   specific bills.

10                ACTING PRESIDENT VALESKY:   Yes, 

11   Senator Krueger, specific to your point of order, 

12   I believe that this bill is appropriately before 

13   the Senate and we are moving it forward under the 

14   controversial calendar.

15                If you wish to appeal my ruling, 

16   you're certainly willing to do that.

17                SENATOR KRUEGER:   No, I would 

18   disagree with the ruling but I won't appeal it.  

19   Thank you, Mr. President.

20                ACTING PRESIDENT VALESKY:   Are 

21   there any other Senators who wish to be heard?

22                Seeing none, the debate is -- I'm 

23   sorry, Senator Parker.  On the bill?  

24                SENATOR PARKER:   Yes, on the bill.  

25   Thank you, Mr. President.


                                                               1313

 1                ACTING PRESIDENT VALESKY:   Senator 

 2   Parker on the bill.

 3                SENATOR PARKER:   And I'll try to be 

 4   brief.  

 5                Where do you start with a bill like 

 6   this?  There is so much wrong.  And I know that 

 7   this bill is dealing with primarily the 

 8   Legislature and Judiciary, and in many cases you 

 9   don't have a particular problem with this bill.  

10                But I find this whole -- both the 

11   process and this whole budget objectionable.  The 

12   process is objectionable to have, again, this 

13   process with four men in a room.  To not have any 

14   of the leaders in the room -- not to have any 

15   African-Americans, Latinos, Asians or women 

16   involved in the process is objectionable.  

17                To have a process in which the 

18   Governor bullies us through a budget that doesn't 

19   have the things that are important for our 

20   communities in it is objectionable.  

21                I represent a community that's 

22   served by Downstate Medical Center in the heart 

23   of Brooklyn.  We have not addressed the issues of 

24   the financial crisis or the privatization of that 

25   institution.  We've failed as a legislature to 


                                                               1314

 1   deal with high-needs districts across the state 

 2   by not living up to our promise for the Campaign 

 3   for Fiscal Equity lawsuit.  

 4                We also are cutting $250 million to 

 5   New York City schools.  We are cutting about 

 6   $90 million to the developmentally disabled 

 7   communities, with only a partial restoration.  A 

 8   lack of progress in terms of women and minority 

 9   business development.  Although I applaud 

10   Senator Smith and others who made sure that the 

11   $3 million is back in the budget for the 

12   disparity study, we have yet to do what we need 

13   to do to have enough cumulative resources in the 

14   agencies around the state that would allow an 

15   MWBE agenda to be successfully implemented by the 

16   agencies.

17                The lack of marijuana 

18   decriminalization and the NYPD oversight and 

19   accountability through an independent inspector 

20   general needs to be done.  And we can do that 

21   through the budget today and tomorrow.  

22                Failing to provide a real living 

23   wage.  We really, frankly, ought to be ashamed of 

24   ourselves for coming with a proposal that says 

25   that $9 over three years is what we ought to be 


                                                               1315

 1   doing for the people of the State of New York.  

 2   They deserve better.  We could do better.

 3                Pension-smoothing scheme -- and I 

 4   know they've corrected some of it, but it's just 

 5   really not the right thing for us to be doing.  

 6   It's going to not only burden the next generation 

 7   of retirees, but I think it's going to ultimately 

 8   bankrupt our municipalities.  I think it's not 

 9   the right way to go.  

10                Failure to fix New York's 

11   unemployment insurance and taxing New Yorkers 

12   with an unnecessary utility tax.  This 18-a 

13   assessment surcharge with a three-year phaseout 

14   that was supposed to phase out this year -- and 

15   we're now kicking the can down the road for three 

16   years -- is certainly not the way to go.  

17                And lastly, without a DREAM Act, I 

18   cannot find a way to vote for this bill or any 

19   part of the budget.  I vote nay.

20                ACTING PRESIDENT VALESKY:   Thank 

21   you, Senator Parker.  

22                The Secretary will ring the bells.

23                Read the last section.

24                THE SECRETARY:   Section 5.  This 

25   act shall take effect immediately.


                                                               1316

 1                ACTING PRESIDENT VALESKY:   Call the 

 2   roll.

 3                (The Secretary called the roll.)

 4                ACTING PRESIDENT VALESKY:   Senator 

 5   Kennedy to explain his vote.  

 6                SENATOR KENNEDY:   Thank you, 

 7   Mr. President.

 8                I rise to support this portion of 

 9   the budget and to speak on a very important 

10   program that I've been advocating for, along with  

11   many of my colleagues here in the chamber, for 

12   quite some time now.  And I thank my colleagues 

13   for joining us in making this program a reality:  

14   CASA, court-appointed special advocates, the 

15   specially trained and supervised volunteers 

16   appointed by a Family Court judge to advocate for 

17   the best interests of children in foster care and 

18   in the Family Court system oftentimes in cases of 

19   abuse and neglect.

20                Think about that for a second, 

21   children who are abused and neglected.  As the 

22   father of three, that hits home particularly 

23   strong.  Those words are difficult to hear.  

24                But the fact of the matter is these 

25   kids are out there.  And without the CASA 


                                                               1317

 1   program, they'd likely have no one standing up 

 2   for them.  When children are abused or severely 

 3   neglected, they must rely on adults to help them 

 4   obtain justice and services.  That's the intent 

 5   of the social service and Family Court systems.  

 6   But all too often these systems are fraught with 

 7   escalating caseloads and reduced resources.  

 8   Vulnerable children slip through the cracks.  

 9                That's where CASA comes in.  The 

10   program provides necessary training for over a 

11   thousand CASA volunteers serving nearly 4,000 

12   children across New York State.

13                CASA's collective mission is a safe 

14   and permanent home for every child.  CASA helps 

15   to secure loving homes for abused and neglected 

16   children by investigating and monitoring cases 

17   involving children in foster care.  The CASA 

18   volunteer is very often the single constant in a 

19   child's life at the most crucial time, providing 

20   a powerful voice that says "I care" when no one 

21   else seems to.

22                Simply put, CASA volunteers are the 

23   guardian angels of our Family Court system and 

24   oftentimes the lone voice for these abused and 

25   neglected children.


                                                               1318

 1                Finally, April, which is right 

 2   around the corner, is Child Abuse Prevention 

 3   Month.  CASA volunteers work to prevent child 

 4   abuse every single day.  On behalf of the 

 5   thousands of children they serve, I support them 

 6   in their efforts.  

 7                Again, Mr. President, I vote aye.  

 8   Thank you.

 9                ACTING PRESIDENT VALESKY:   Senator 

10   Kennedy in the affirmative.

11                Senator DeFrancisco to explain his 

12   vote.

13                SENATOR DeFRANCISCO:   Yes.  Since 

14   most of you in this room sat through many of the 

15   budget hearings, I just want to mention some of 

16   the things that were in this budget that people 

17   advocated for and were changed from the 

18   Governor's budget.  

19                First of all, the legislative budget 

20   is flat.  Even though we have a 63rd Senator, an 

21   additional cost because of that, it's flat.  That 

22   also includes the Assembly as well, it's flat.

23                The Judiciary budget went up less 

24   than 1 percent, and most of that was as a result 

25   of costs of pensions.  With respect to -- it was 


                                                               1319

 1   mentioned already that CASA was restored.  There 

 2   was a lot of support among this Legislature for 

 3   that.  Also, there was an increase in funding for 

 4   civil legal services that is funded by the 

 5   judiciary and other programs that we had 

 6   requested.

 7                So I appreciate the comments of 

 8   Senator Kennedy.  I know many others have argued 

 9   about that same issue.  And I think it's a great 

10   judiciary and an even greater legislative budget 

11   in these very trying economic times.

12                Thank you, Mr. President.  I vote 

13   aye.

14                ACTING PRESIDENT VALESKY:   Senator 

15   DeFrancisco in the affirmative.

16                Senator Gipson to explain his vote.

17                SENATOR GIPSON:   Thank you, 

18   Mr. President.

19                I rise in support of this bill.  But 

20   I do, however, want to point out that it is now 

21   9:45 in the evening.  There is really no logical 

22   reason why we should have to be here at this hour 

23   of night voting on these important bills that 

24   contain over $142 billion of decisions that we 

25   will have to make before the sun comes up.  


                                                               1320

 1                This is a vampire bill.  I believe 

 2   that we can do better.  If we would support my 

 3   Vampire Voting Act bill that I presented to this 

 4   floor, there would be no reason for us to be here 

 5   now.  And our constituents, who have had a long 

 6   day's work and who are now headed off to bed, 

 7   would be able to stay up and actually be a part 

 8   of these important deliberations.  

 9                Thank you.

10                ACTING PRESIDENT VALESKY:   Senator 

11   Gipson, how do you vote?  

12                SENATOR GIPSON:   As I said at the 

13   beginning, I am voting yes.

14                ACTING PRESIDENT VALESKY:   Senator 

15   Gipson in the affirmative.

16                Announce the results.

17                THE SECRETARY:   In relation to 

18   Calendar Number 274, those recorded in the 

19   negative are Senators Espaillat, Hoylman, 

20   Latimer, Parker and Sampson.

21                Ayes, 55.  Nays, 5.

22                ACTING PRESIDENT VALESKY:   The bill 

23   is passed.

24                THE SECRETARY:   Calendar Number 

25   276, Senate Budget Bill, Senate Print 2606D, an 


                                                               1321

 1   act to amend Chapter 59 of the Laws of 2011.

 2                ACTING PRESIDENT VALESKY:   Senator 

 3   Gianaris.

 4                SENATOR GIANARIS:   Mr. President, I 

 5   believe there's an amendment at the desk.  I ask 

 6   that a reading of the amendment be waived and 

 7   that Senator Parker may be heard on the 

 8   amendment.

 9                ACTING PRESIDENT VALESKY:   Senator 

10   Gianaris, I have reviewed the amendment that is 

11   at the desk and rule it out of order.  It 

12   attempts to direct appropriations.  As such, it 

13   is an impermissible substitution under Article 7 

14   of the Constitution.

15                SENATOR GIANARIS:   Mr. President, I 

16   appeal the decision of the chair, and I ask that 

17   Senator Parker be heard on the appeal in order to 

18   explain the amendment.

19                ACTING PRESIDENT VALESKY:   Senator 

20   Parker on the appeal.

21                SENATOR PARKER:   Thank you, 

22   Mr. President.

23                The amendment I offer would prevent 

24   the closing of SUNY Downstate Hospital as 

25   proposed by this budget's legislation and provide 


                                                               1322

 1   for a stabilization plan that actually stabilizes 

 2   and preserves care.

 3                It would eliminate language that 

 4   would allow for the privatization of services at 

 5   SUNY downstate and instead promote the 

 6   continuation of care.  This amendment also would 

 7   vest the Legislature with authority to approve a 

 8   stabilization plan proposed by the SUNY Board of 

 9   Trustees.  

10                Mr. President, as you know, the 

11   members of the Brooklyn delegation have worked 

12   day and night to try and save SUNY Downstate from 

13   closure.  Years of poor management and difficult 

14   economic conditions have crippled the hospital.  

15   Yet now is not the time to give up on the fourth 

16   largest employer in Brooklyn.  Now is not the 

17   time to sell the Long Island College Hospital, 

18   contract out essential primary care service, and 

19   hand over day-to-day administration to a 

20   for-profit entity as proposed by this bill.  

21                This current bill in front of us 

22   also, as relates to Long Island College Hospital, 

23   intends on selling off a $500 million asset 

24   without any legislative oversight.  Never before 

25   have we done such a thing, and I think now is the 


                                                               1323

 1   wrong time to start selling off large assets and 

 2   eliminating legislative oversight.  

 3                Instead, the amendment I propose 

 4   would prevent the closing of services, require 

 5   legislative approval of a turnaround plan, and 

 6   guarantee participation by all relevant 

 7   stakeholders as the board of trustees works out 

 8   with our communities to save SUNY Downstate.  

 9                This amendment will be paired with 

10   another amendment which would actually also -- we 

11   need to include $150 million in stabilization 

12   funding necessary to stabilize the facility.

13                SUNY Downstate contributes 

14   $1.3 billion to the state's economy and returns 

15   $12 to the local economy for every dollar that's 

16   invested by the state.

17                One in three doctors in Brooklyn 

18   were trained at SUNY Downstate, and half of 

19   Brooklyn's medical specialists were trained at 

20   the facility.  Eighty percent of SUNY Downstate's 

21   graduates live and practice in New York City.  

22   SUNY Downstate takes in over 80,000 visits per 

23   year.  And this is, I think, more than enough 

24   reason for us to accept this amendment and to 

25   save this institution.


                                                               1324

 1                ACTING PRESIDENT VALESKY:   Thank 

 2   you, Senator Parker.  

 3                On the appeal of the ruling of the 

 4   chair, all in favor of overruling the chair 

 5   signify by saying aye.

 6                SENATOR GIANARIS:   Show of hands, 

 7   please, Mr. President.

 8                ACTING PRESIDENT VALESKY:   Those in 

 9   a favor of overruling the chair signify by 

10   raising your hand.  

11                (Show of hands.)

12                ACTING PRESIDENT VALESKY:   The 

13   Secretary will announce the results.

14                THE SECRETARY:   Ayes, 26.

15                ACTING PRESIDENT VALESKY:   The 

16   ruling of the chair stands.  

17                Senator Rivera.

18                SENATOR RIVERA:   Mr. President, I 

19   wonder if the sponsor would yield for a few 

20   questions.

21                ACTING PRESIDENT VALESKY:   Senator 

22   DeFrancisco, do you yield?  

23                SENATOR DeFRANCISCO:   Yes, I would.

24                ACTING PRESIDENT VALESKY:   The 

25   sponsor yields.


                                                               1325

 1                SENATOR RIVERA:   Thank you, 

 2   Mr. President.

 3                I wanted to take some time to -- 

 4   first of all, just for the record, I obviously 

 5   would have preferred what Senator Parker just 

 6   laid out to be something that we approved, 

 7   because, obviously, having -- this is a very 

 8   important institution, SUNY Downstate.  And so I 

 9   would have preferred that we resolved it in the 

10   way that Senator Parker just proposed in his 

11   amendment.  

12                But as we are speaking on this 

13   particular budget bill, I wanted to specifically 

14   ask a few questions -- Mr. President, through 

15   you -- of Part Q of this particular budget bill.  

16   I wanted to -- first of all, through you, 

17   Mr. President, if the sponsor could just briefly 

18   kind of state what the purpose of this particular 

19   section is.  Let's start there and then work our 

20   way through the sections.

21                SENATOR DeFRANCISCO:   Well, the 

22   purpose of the section of the bill is to do our 

23   best to not only save Downstate but also to make 

24   it a vibrant facility for the same people that 

25   Senator Parker mentioned it was important to have 


                                                               1326

 1   this institution a viable institution.

 2                In the period of time in which there 

 3   were budget negotiations, the determination by 

 4   the negotiators was that we should get a report, 

 5   a sustainability plan from SUNY, and that's got 

 6   to be done by June 1st of this year, in just a 

 7   couple of months, and submit that plan to the 

 8   Legislature to come up -- to provide us 

 9   recommendations on how to save it.

10                And it also calls for some funding 

11   to be made available by SUNY, and hopefully to be 

12   matched by the federal government through 

13   Medicaid, to provide some initial funding to get 

14   Downstate back operating.  But that funding will 

15   not happen until we see what the report is, or 

16   until the report is finalized.

17                So rather than rush to a result and 

18   just throw money at it -- like LICH was thrown at 

19   it in the past, which caused more problems for 

20   Downstate than they had before LICH was merged 

21   into Downstate -- a more prudent plan would be to 

22   make sure that it's done in a deliberate way, and 

23   that's what's happening.  I don't think anybody 

24   in this Legislature, no matter where we live, 

25   want to lose Downstate Hospital.


                                                               1327

 1                ACTING PRESIDENT VALESKY:   Senator 

 2   Rivera.

 3                SENATOR RIVERA:   Through you, 

 4   Mr. President, if the sponsor would continue to 

 5   yield.

 6                ACTING PRESIDENT VALESKY:   Senator 

 7   DeFrancisco.

 8                SENATOR DeFRANCISCO:   Yes.

 9                ACTING PRESIDENT VALESKY:   The 

10   sponsor yields.

11                SENATOR RIVERA:   Thank you, 

12   Mr. President.  

13                I agree with you, no one in the 

14   Legislature and I don't think anybody in the 

15   State of New York would want an institution like 

16   this, that provides such basic services to an 

17   important part of our state, for it to go away.

18                But I actually want to dig a little 

19   bit deeper.  Could you tell me, particularly on 

20   Section 2, there's a mention of a sustainability 

21   plan.  You mentioned it yourself.  Could you tell 

22   me what the definition of a sustainability plan 

23   is?  What are the parameters for a sustainability 

24   plan?  

25                SENATOR DeFRANCISCO:   Well, I don't 


                                                               1328

 1   think there's a definition in the bill.  But 

 2   "sustainability" and "plan" have plain meanings.  

 3   The sustainability is to make sure it continues 

 4   as a viable hospital.  And a plan is how they 

 5   propose that this is going to happen.

 6                SENATOR RIVERA:   Through you, 

 7   Mr. President, if the sponsor would continue to 

 8   yield.

 9                ACTING PRESIDENT VALESKY:   Senator 

10   DeFrancisco.

11                SENATOR DeFRANCISCO:   Yes.

12                ACTING PRESIDENT VALESKY:   The 

13   sponsor yields.

14                SENATOR RIVERA:   Thank you, 

15   Mr. President.

16                Do you not believe it is necessary 

17   for us to lay out some specifics as far as what 

18   the parameters of a sustainability plan should 

19   be, to make sure that -- everything that you've 

20   been saying about the institution and how 

21   important it is to maintain it, wouldn't it have 

22   been important to include language that was 

23   specific in that regard in the language itself of 

24   the bill?

25                SENATOR DeFRANCISCO:   Yes, as far 


                                                               1329

 1   as the more parameters that you lay in the bill, 

 2   the less flexibility SUNY has to try to find a 

 3   viable solution.  

 4                And I don't think anybody in this 

 5   Legislature really wants to limit SUNY from 

 6   making a reasonable plan that they feel will 

 7   work, since some of the money is going to come 

 8   from the SUNY coffers, and since they have two 

 9   other hospitals that are currently existing and 

10   they run hospitals in a specific way.  I think 

11   the concept was to give them the most flexibility 

12   we could.

13                SENATOR RIVERA:   Through you, 

14   Mr. President, if the sponsor would continue to 

15   yield.

16                SENATOR DeFRANCISCO:   Yes.

17                ACTING PRESIDENT VALESKY:   Senator 

18   DeFrancisco yields.

19                SENATOR RIVERA:   Thank you, 

20   Mr. President.

21                I understand the issue of 

22   flexibility.  But again, would it not have been 

23   wiser to at least set some parameters as far as 

24   perhaps services that should be maintained, as 

25   far as populations that should be served?  


                                                               1330

 1                If we're talking about the impact 

 2   that the close of this institution or changes to 

 3   this institution would have, would it not have 

 4   been prudent to include language that was -- I 

 5   understand the issue about flexibility.  We're 

 6   not going to have a listing of three or four 

 7   pages that outline exactly what a sustainability 

 8   plan should have.  

 9                But at least some general parameters 

10   to make sure that the institution would continue 

11   to exist and in a way that would continue to 

12   provide the services that are necessary for the 

13   population that it serves.  Through you, 

14   Mr. President, would that not have been prudent?  

15                SENATOR DeFRANCISCO:   That's one 

16   school of thought.  I just think the more 

17   flexibility, the better.  

18                In Section 3 there's also some 

19   language that says that such sustainability plan 

20   shall include the elimination and/or reduction of 

21   acute ambulatory and supportive services that are 

22   not necessary or financially sustainable and any 

23   additional measures necessary to achieve such 

24   restructuring and achieve financial stability.  

25                I think that's the primary word, 


                                                               1331

 1   financial stability.  One plan just a couple of 

 2   years ago was to acquire LICH.  Well, that didn't 

 3   bring financial stability.  The hospital, 

 4   Downstate, was hemorrhaging millions every 

 5   month.  

 6                So I guess the guidelines are we 

 7   want it sustainable, we want it to be a viable 

 8   part of our healthcare system.  And secondly, we 

 9   want to make sure that the plan comes up with 

10   something that's financially feasible so we don't 

11   have another problem two or three years down the 

12   road.

13                SENATOR RIVERA:   Through you, 

14   Mr. President, if the sponsor would continue to 

15   yield.

16                SENATOR DeFRANCISCO:   Yes.

17                ACTING PRESIDENT VALESKY:   The 

18   sponsor yields.

19                SENATOR RIVERA:   Thank you, 

20   Mr. President.

21                Through you, Mr. President.  Senator 

22   DeFrancisco, earlier you referred to a report --

23                SENATOR DeFRANCISCO:   Pardon me?

24                SENATOR RIVERA:   If I'm not 

25   mistaken -- we can go do the transcript -- you 


                                                               1332

 1   referred to a report that this language would 

 2   require to be produced at the end of this 

 3   process, something of that nature.  I don't 

 4   recall finding language that referred to a 

 5   report.

 6                SENATOR DeFRANCISCO:   I don't think 

 7   there was a report.  It's a plan, a 

 8   sustainability plan.  I don't remember using the 

 9   word.  If I did, then I was mistaken.

10                SENATOR RIVERA:   You were referring 

11   to the plan itself.

12                SENATOR DeFRANCISCO:   The plan.

13                SENATOR RIVERA:   Through you, 

14   Mr. President, if the sponsor would continue to 

15   yield. 

16                ACTING PRESIDENT VALESKY:   Senator 

17   DeFrancisco, do you yield?  

18                SENATOR DeFRANCISCO:   Yes, I do.

19                ACTING PRESIDENT VALESKY:   The 

20   sponsor continues to yield.

21                SENATOR RIVERA:   Thank you, 

22   Mr. President.

23                I want to get to one part, which is 

24   we were talking -- well, I'm going to go by 

25   sections.  Moving on to Section 5 for a second, 


                                                               1333

 1   you referred to it earlier as far as the timeline 

 2   is concerned.  I want to talk about that timeline 

 3   a little bit.  If I'm not mistaken, the bill as 

 4   written would require for a plan to be created by 

 5   June 1st and then approved within two weeks by 

 6   June 15th to be implemented.  Not approved, but 

 7   implemented.  

 8                If I'm not mistaken, that is the 

 9   language that is included in the bill.  I have a 

10   couple of questions about that.  Let's start with 

11   this one, through you, Mr. President.  

12                Do you feel that that is both enough 

13   time for a plan to be put together and, more 

14   importantly, for it to be implemented?  

15                SENATOR DeFRANCISCO:   Well, I guess 

16   you're damned if you do and you're damned if you 

17   don't.  On the one hand, you want something to be 

18   done, now so the negotiators put a short leash 

19   on it, so the report would be done by June 1 and 

20   that the plan would begin to be implemented two 

21   weeks later.  

22                So I guess that's the compromise.  

23   We can't do it right now, but we want to make 

24   sure that this doesn't -- the situation doesn't 

25   get worse before something concrete is done.


                                                               1334

 1                SENATOR RIVERA:   Mr. President, 

 2   through you, if the sponsor would continue to 

 3   yield.

 4                ACTING PRESIDENT VALESKY:  Senator 

 5   DeFrancisco.  

 6                SENATOR DeFRANCISCO:   Yes.

 7                ACTING PRESIDENT VALESKY:   Senator 

 8   DeFrancisco yields.

 9                SENATOR RIVERA:   I want to make 

10   sure that I understand the exact context of 

11   "dammed if you do, damned if you don't."  No, 

12   actually I don't, which is why I'm going to ask 

13   for clarification.  

14                Do you mean to say that you would 

15   have written the language differently, or do you 

16   mean to say that the folks that are 

17   implementing or would be asked to implement --

18                ACTING PRESIDENT VALESKY:   Senator 

19   Libous.  

20                SENATOR LIBOUS:   Mr. President, if 

21   I could ask both Senators to direct everything 

22   through the chair, it would be a lot easier for 

23   us to follow.  Thank you.  I'm getting older, and 

24   it's harder for me to follow the debate.

25                SENATOR RIVERA:   Thank you, Senator 


                                                               1335

 1   Libous.  

 2                Mr. President, through you.

 3                ACTING PRESIDENT VALESKY:   Senator 

 4   Rivera.

 5                SENATOR RIVERA:   Referring to an 

 6   answer to a prior question that Senator 

 7   DeFrancisco made related to a comment "damned if 

 8   you do, damned if you don't," I just want to 

 9   clarify that term, since I did not understand 

10   it.  Perhaps you did, Mr. President.  

11                Does it relate either to how he 

12   would have negotiated the language or would have 

13   put the language forth differently?  Or does he 

14   refer to the folks that would be implementing the 

15   plan, would they be damned if they don't, damned 

16   if they do?  I'm just repeating through you, 

17   Mr. President, what was answered earlier.

18                SENATOR DeFRANCISCO:   What I meant 

19   by that was -- I thought it was clear.  But what 

20   I meant by that was on the one hand you're saying 

21   you're unhappy that there's nothing for Downstate 

22   to keep the thing open in this budget.  And on 

23   the other hand, when we have a short leash to get 

24   a comprehensive financial and other plan by SUNY 

25   by June 1 and then implement it by June 15, that 


                                                               1336

 1   that's -- do we have enough time.

 2                So on the one hand we're being 

 3   criticized for not doing something now, and on 

 4   the other hand we are being criticized or 

 5   questioned on such a short leash and a short time 

 6   to begin implementation.  You're either damned if 

 7   you do or you're damned if you don't.

 8                SENATOR RIVERA:   Through you, 

 9   Mr. President, if the sponsor would continue to 

10   yield.

11                ACTING PRESIDENT VALESKY:   Senator 

12   DeFrancisco.

13                SENATOR DeFRANCISCO:   Yes.

14                ACTING PRESIDENT VALESKY:   The 

15   sponsor yields.

16                SENATOR RIVERA:   Thank you, 

17   Mr. President.

18                I would think, through you -- thank 

19   Senator DeFrancisco for that clarification.  I 

20   will also just for the record state that I was 

21   making sure that I knew exactly what he meant and 

22   that really what I'm trying to establish is if 

23   you -- whether it is believed that this is a 

24   prudent timeline.  I'm going to take it to mean 

25   that Senator DeFrancisco believes that it is a 


                                                               1337

 1   prudent timeline.

 2                But I want to actually move down a 

 3   couple of sections to Section 6.  And this is one 

 4   that, Mr. President, I want to make sure that we 

 5   really explore, because this is the one that, to 

 6   be honest with you, causes me the most -- is one 

 7   of the most concerning parts of this whole bill.

 8                Through you, Mr. President, could 

 9   the sponsor describe, generally speaking, the 

10   purpose of this particular section of the bill?  

11                SENATOR DeFRANCISCO:   I'm sorry, I 

12   missed the last part of the question.  Referring 

13   to paragraph 6, what would you like to know about 

14   that?  

15                SENATOR RIVERA:   Through you, 

16   Mr. President, if Senator DeFrancisco, if the 

17   sponsor could tell us, first of all, the purpose 

18   of Section 6 of this bill.

19                SENATOR DeFRANCISCO:   Well, in the 

20   effort, once again, to move to a solution as 

21   quickly as possible, this section allows for the 

22   waiver of certain provisions of the law and 

23   allows Downstate or Upstate to enter contracts 

24   without competitive bidding or requests for 

25   proposals.


                                                               1338

 1                In other words, we want to get a 

 2   decision made quickly on the sustainability plan 

 3   and we want implementation to happen as quickly 

 4   as possible.  And if we had to then, after a plan 

 5   was formed, then competitively bid, wait another 

 6   6 months, another 8 months while the hospital is 

 7   hemorrhaging money, there's less chance of it 

 8   becoming a viable organization again.  That's the 

 9   purpose of the language.

10                SENATOR RIVERA:   Through you, 

11   Mr. President, if the sponsor would continue to 

12   yield.

13                SENATOR DeFRANCISCO:   Yes.

14                ACTING PRESIDENT VALESKY:   The 

15   sponsor yields.

16                SENATOR RIVERA:   Thank you, 

17   Mr. President.  

18                Through you, there's language in 

19   this legislation, particularly in this section, 

20   which refers to State Finance Law 112 to State 

21   Finance Law 163, and to Education Law 355.  I was 

22   wondering, through you, if the sponsor could tell 

23   us what those particular sections of the law 

24   refer to.

25                SENATOR DeFRANCISCO:   They refer 


                                                               1339

 1   to, in each of those areas of the law, the 

 2   requirement of competitive bidding or RFPs.  

 3   Depending upon the section, it has those 

 4   requirements for contracting by the state.  

 5                This would, as it relates to each 

 6   one of those sections, whether it's competitive 

 7   bidding or RFPs, would give SUNY the opportunity 

 8   to waive that competitive bidding process or RFP 

 9   process.

10                SENATOR RIVERA:   Through you, 

11   Mr. President, if the sponsor would continue to 

12   yield.

13                SENATOR DeFRANCISCO:   Yes.

14                ACTING PRESIDENT VALESKY:   The 

15   sponsor yields.

16                SENATOR RIVERA:   Through you, 

17   Mr. President.  So in all these instances where 

18   we're talking about one of them -- for the 

19   record, State Finance Law 212 requires any 

20   contract of $50,000 or more for all agencies 

21   except OGS and $85,000 and above for OGS to be 

22   reviewed and approved by the Comptroller before 

23   it's effective.  State Finance Law 163 

24   establishes standards for state agencies to 

25   follow in regards to procurement, including 


                                                               1340

 1   operating principles for evaluating offers and 

 2   awarding contracts.  And Education Law 355 

 3   authorizes the board, as it refers to the SUNY 

 4   Board of Trustees, authorizes the board to 

 5   execute contracts and includes requirements to 

 6   purchase the lowest purchase price under the 

 7   competitive process.  

 8                In all of these instances -- through 

 9   you, Mr. President.  So what this section is does 

10   is exclude -- I want to make sure that I'm clear 

11   with this -- it excludes the institution of SUNY 

12   Downstate from any and all of these pieces of the 

13   law.  Is that correct?  Through you, 

14   Mr. President.  

15                SENATOR DeFRANCISCO:   I don't have 

16   the Finance Law in hand, or the Education Law.  

17   Or the Economic Development Law, Section 142.  

18   But the intent of this was as to those sections 

19   as it relates to competitive bidding and RFP, 

20   Downstate won't have to do it.  The reason why, 

21   it's an emergency situation.  We've got a 

22   critical situation there, and everyone knows 

23   about it.  And if you don't provide this 

24   flexibility to implement a plan quickly, the 

25   hospital might not survive.  And we don't want 


                                                               1341

 1   that to happen.

 2                So of course competitive bidding is 

 3   a wonderful thing.  So are RFPs, and we use them 

 4   all the time.  But when you have an emergency, 

 5   you've got to do something outside the box.  And 

 6   for this case, this emergency authority is only 

 7   given to the Downstate situation.

 8                SENATOR RIVERA:   Through you, 

 9   Mr. President, if the sponsor would continue to 

10   yield.

11                ACTING PRESIDENT VALESKY:   Senator 

12   DeFrancisco, do you yield?  

13                SENATOR DeFRANCISCO:   Yes.

14                ACTING PRESIDENT VALESKY:   The 

15   sponsor yields.

16                SENATOR RIVERA:   Through you, 

17   Mr. President.  So in this instance not only does 

18   it remove it from these particular sections of 

19   the law, but as far as oversight, as far as 

20   whether there would be an agency -- whether -- 

21   it's actually, first of all, whether the 

22   Legislature would be able to look into what's 

23   happening there, Mr. President.  Or more 

24   importantly, if the Comptroller would be able to 

25   look into the expenditures that are made in the 


                                                               1342

 1   middle of this process.  

 2                Does this section or does any other 

 3   section of this law actually allow for either the 

 4   Legislature or the Comptroller to look more 

 5   specifically into the expenditures that are made 

 6   through this emergency plan?

 7                SENATOR DeFRANCISCO:   The plan, 

 8   first of all, has to be approved by the 

 9   Commissioner of Health.  So there's some 

10   oversight there.  That's number one.  

11                Number two, just like any other 

12   state expenditures, the Comptroller's office 

13   obviously has some oversight of state 

14   expenditures.

15                In addition, there was actually even 

16   a section in here that Downstate shall post on 

17   its website for a period of no less than 15 days 

18   a description of proposed goods and services to 

19   be provided under various contracts.  The 

20   criteria for contractor selection.

21                So there's actually public 

22   disclosure of what they're doing in addition to 

23   the oversight of the Health Department as well as 

24   the Comptroller's office.

25                And by the way, for those in the 


                                                               1343

 1   state -- I know there's some in the state who 

 2   don't like the idea of this kind of flexibility 

 3   generally.  Again, it's only for downstate, and 

 4   it's only for a period of one year, thinking that 

 5   that's the crucial period of time with which 

 6   things have to be done.  And by that time I 

 7   imagine the state will know one way or the other 

 8   what else has to be done to save the hospital and 

 9   go back to the regular procedures.

10                SENATOR RIVERA:   Through you, 

11   Mr. President, if the sponsor would continue to 

12   yield.

13                ACTING PRESIDENT VALESKY:   Senator 

14   DeFrancisco?  

15                SENATOR DeFRANCISCO:   Yes.

16                ACTING PRESIDENT VALESKY:   The 

17   sponsor yields.

18                SENATOR RIVERA:   Thank you, 

19   Mr. President.  

20                So on the issue specifically, 

21   Mr. President, of contracting -- and that's one 

22   that I want to make sure we establish for the 

23   record.  So on issues of contracting, which may 

24   include anything and everything that could 

25   potentially happen in this institution, whether 


                                                               1344

 1   it's providing medical services, whether it's 

 2   maintenance of the facilities, whether it's 

 3   renovation of the facilities, in any and all 

 4   contracts that might be made by this institution 

 5   during this process of restructuring, I want to 

 6   talk specifically about the oversight on those 

 7   contracts.  

 8                It seems to me -- and maybe I've 

 9   interpreted the language wrong, but it seems to 

10   me that the Department of Health and the 

11   Commissioner of Health have no oversight over 

12   those contracts.  And if they do, I'd like -- 

13   through you, Mr. President -- if the sponsor 

14   could correct me.  But it seems to me that they 

15   do not have that authority.

16                SENATOR DeFRANCISCO:   I wasn't 

17   paying attention, I'm sorry.

18                (Laughter.)

19                SENATOR DeFRANCISCO:   I was trying 

20   to get another question clarified.  But I will 

21   pay attention this time.

22                SENATOR RIVERA:   Through you, 

23   Mr. President --

24                ACTING PRESIDENT VALESKY:   Please 

25   restate your question, Senator Rivera. 


                                                               1345

 1                SENATOR RIVERA:   I will absolutely 

 2   restate my question, Mr. President.

 3                As I understand it, the language 

 4   does not allow for the Department of Health or 

 5   the Commissioner of Health specifically to have 

 6   oversight over the contracting that is done 

 7   during this period of restructuring by this 

 8   entity.  And "contracts" understood to be 

 9   anything and everything that this entity could 

10   do -- and I'll repeat again for the record -- 

11   whether we're talking about medical services 

12   directly, whether we're talking about remodeling 

13   facilities, whether we're talking about providing 

14   food or other types of services.  In any and all 

15   of these instances, it seems to me that the 

16   Department of Health and the Commissioner of 

17   Health do not have oversight over the contracts.  

18                And furthermore, if the contracts, 

19   as I heard the sponsor state earlier, that this 

20   period of this emergency plan would be only for 

21   one year, I do not find language in this section 

22   or in any other section that would bar any type 

23   of contract that could be made during this period 

24   when there is no oversight that goes beyond that 

25   period of a year.  So if the sponsor could 


                                                               1346

 1   clarify that for me, please.

 2                SENATOR DeFRANCISCO:   As far as the 

 3   oversight, remember, the plan that's got to be 

 4   prepared by June 1 is a plan that has to be 

 5   approved by the Commissioner of Health.  So as a 

 6   practical matter, he can put whatever parameters 

 7   he wants on it that the Downstate has to follow.  

 8                And if he thinks he needs specific 

 9   authority to reject a part of the plan or not 

10   allow them to go to a longer-term contract, that 

11   can be handled in the rejection of the plan.  And 

12   that once the plan is in place, the commissioner 

13   oversees what they're doing to make sure that 

14   they are in compliance with the plan.

15                So it's not that there's no 

16   oversight, it's just that there's more 

17   flexibility for that emergency period.

18                SENATOR RIVERA:   Through you, 

19   Mr. President, if the sponsor would continue to 

20   yield.

21                ACTING PRESIDENT VALESKY:   Senator 

22   DeFrancisco.

23                SENATOR DeFRANCISCO:   Yes.

24                ACTING PRESIDENT VALESKY:   The 

25   sponsor yields.


                                                               1347

 1                SENATOR RIVERA:   Thank you, 

 2   Mr. President.

 3                The process as just described by the 

 4   sponsor referred to whether the plan is 

 5   accepted.  As we discussed prior, an earlier 

 6   section of the bill states that the process would 

 7   be within two weeks -- the damned if you don't, 

 8   damned if you do part of the conversation -- two 

 9   weeks for the proposal to be put into effect and 

10   be implemented.  

11                What if, during that period of time, 

12   the Department of Health rejects the plan?  What 

13   would happen then?  

14                SENATOR DeFRANCISCO:   Well, I would 

15   assume that SUNY would get back to the drawing 

16   board very quickly.  And I don't think it's a 

17   matter of -- what's planned here, I think, is a 

18   submission.  And while they're submitting it, I'm 

19   sure there has to be discussions with the 

20   Department of Health as the plan is being 

21   developed to make sure they're not going in the 

22   wrong direction.

23                So again, the short leash is to try 

24   to get things moving.  I would imagine that if 

25   they needed legislative authority, for example, 


                                                               1348

 1   after the -- remember, it's while we're still in 

 2   session, the Legislature.  I imagine if it's 

 3   rejected on June 15th they could come back here 

 4   and say, Wait, we need two more weeks, or we need 

 5   whatever we need.

 6                But hopefully there will be 

 7   discussions as the plan is developed to make sure 

 8   the planners are accommodating what the 

 9   Commissioner is really looking for.  And I would 

10   be surprised if that process hasn't already 

11   begun, quite frankly.

12                SENATOR RIVERA:   Through you, 

13   Mr. President, if the sponsor would continue to 

14   yield.

15                SENATOR DeFRANCISCO:   Yes.

16                ACTING PRESIDENT VALESKY:   The 

17   sponsor yields.

18                SENATOR RIVERA:   So, Mr. President, 

19   let's play hypothetical for a second, just 

20   because I want to make sure that we understand 

21   what excluding this particular entity from these 

22   laws, these sections of the law that I mentioned 

23   before, exactly what it means.  Let's say that 

24   there is a plan put forth by June 1st, it is 

25   approved and put into effect by June 15th, and on 


                                                               1349

 1   July 30th, during this new -- the folks that have 

 2   taken over, have put together this plan and 

 3   they're putting it forth, then they enter into a 

 4   contract which actually goes -- let's say it's a 

 5   five-year contract.  Which, as we stated before, 

 6   would not be eligible for any type of oversight.  

 7                And as I understand it, because 

 8   we're excluding it from State Finance Law 112, 

 9   there would no longer be oversight from the 

10   Comptroller's office over that contract until, 

11   you know, until after it's ratified.  And if the 

12   contract is ratified -- and I would like some 

13   clarification from the sponsor -- if the contract 

14   is ratified and it's a contract that goes way 

15   beyond the year that there's supposed to be 

16   restructuring, what happens then?

17                SENATOR DeFRANCISCO:   First of all, 

18   we're in an emergency situation.  And if we ask 

19   the presidents of SUNY Upstate and Stony Brook 

20   whether they would like more flexibility so they 

21   can get some things done for their colleges, they 

22   would jump for joy to have that ability.  What 

23   we're doing is giving the most flexibility we can 

24   to get this done.  

25                Now, of course there's always a risk 


                                                               1350

 1   that a contract isn't going to be as good as it 

 2   could have been.  There's always going to be a 

 3   risk that something extends longer than we want 

 4   it to extend.  But if the program doesn't work, 

 5   Downstate won't be paying any of their bills 

 6   soon.  So whoever is contracting with SUNY under 

 7   this plan I think would have to look carefully on 

 8   whether or not this plan makes sense from both 

 9   sides.

10                So we're taking a risk.  Of course 

11   we are.  But the alternative is making them go 

12   through months and months of bidding while 

13   Downstate goes further and further in a hole.  

14   When you balance those interests, you could come 

15   up with 15 hypotheticals of risks.  The risk of 

16   something -- not doing anything or doing 

17   something on a slow pace is not worth it.

18                SENATOR RIVERA:   Through you, 

19   Mr. President, if the sponsor would continue to 

20   yield.

21                SENATOR DeFRANCISCO:   Yes.

22                ACTING PRESIDENT VALESKY:   The 

23   sponsor yields.

24                SENATOR RIVERA:   Thank you, 

25   Mr. President.  I only have a few more questions 


                                                               1351

 1   on this issue and then I'm moving briefly to 

 2   another.

 3                If we move to Section 9, 

 4   Mr. President, it adds a new section to the 

 5   Public Health Law that would allow SUNY 

 6   Downstate, among other institutions, to 

 7   participate in the Delivery System Reform 

 8   Incentive Payments program.  That's DSRIP.  Is 

 9   this a waiver program that New York State 

10   currently -- through you, Mr. President, is there 

11   a waiver program that currently New York State 

12   participates in?

13                SENATOR DeFRANCISCO:   Yes.

14                SENATOR RIVERA:   Through you, 

15   Mr. President, if the sponsor would continue to 

16   yield.

17                ACTING PRESIDENT VALESKY:   Senator 

18   DeFrancisco, do you yield?  

19                SENATOR DeFRANCISCO:   Yes.

20                ACTING PRESIDENT VALESKY:   The 

21   sponsor yields.

22                SENATOR RIVERA:   Thank you, 

23   Mr. President.

24                It is my understanding that this is 

25   part of a Medicaid 1115 waiver that the State of 


                                                               1352

 1   New York has not currently submitted an 

 2   application for.  As I understand it, only the 

 3   State of California and the State of Texas are 

 4   currently participating in this current Medicaid 

 5   waiver.  

 6                So, Mr. President, through you, does 

 7   the sponsor have any other information about 

 8   whether the state has actually applied for this 

 9   particular waiver?

10                SENATOR DeFRANCISCO:   I guess the 

11   answer is that we do this with various other 

12   waivers, this particular process.  And you're 

13   absolutely correct.  So when I say that we do 

14   these things now, we do.  

15                On this particular waiver, you're 

16   correct, we haven't applied for it yet.  But 

17   obviously this allows for what it says in the 

18   bill, assuming that we do obtain that approval by 

19   the federal government.

20                SENATOR RIVERA:   Through you, 

21   Mr. President, if the sponsor will continue to 

22   yield.

23                SENATOR DeFRANCISCO:   Yes.

24                ACTING PRESIDENT VALESKY:   The 

25   sponsor yields.


                                                               1353

 1                SENATOR RIVERA:   Thank you, 

 2   Mr. President.

 3                So am I to understand, then, that we 

 4   are including a section here in the law which 

 5   would allow this institution to get access to 

 6   funding through a waiver program that we have not 

 7   applied for?  And, furthermore, that it is a part 

 8   of a larger waiver proposal process that we have 

 9   already been in for over a year, perhaps, that -- 

10   and that we have.  

11                So if already for over a year in 

12   this waiver process we've been asking for all 

13   sorts of money from the federal government, are 

14   we saying, then, that -- I did not find language 

15   here; maybe I can get clarification from the 

16   sponsor.  But I did not find language that says 

17   that the state is going to apply for this.  Are 

18   we going to then amend the process that's already 

19   been ongoing for a year to make sure that we 

20   would get access to money from this waiver?

21                SENATOR DeFRANCISCO:   We need the 

22   authority for this because the -- what we're 

23   going to be asking for from the federal 

24   government is what is needed in furtherance of 

25   the sustainability plan.  There's already 


                                                               1354

 1   discussions with the Department of Health and the 

 2   federal government that we are going to make this 

 3   application, the reason we're going to make this 

 4   application.  But depending upon what the plan is 

 5   will depend upon the exact nature of the waiver 

 6   request.

 7                Now, I would assume we could also 

 8   just leave this out and, once the waiver is 

 9   granted, come back, pass another bill to allow 

10   for what we want to allow for here.  But 

11   obviously this just gives us the authority.  If 

12   we never get the waiver approval, this section 

13   would be moot.

14                SENATOR RIVERA:   Through you, 

15   Mr. President, if the sponsor would continue to 

16   yield.

17                ACTING PRESIDENT VALESKY:   Senator 

18   DeFrancisco?  

19                SENATOR DeFRANCISCO:   Yes.

20                ACTING PRESIDENT VALESKY:   The 

21   sponsor yields.

22                SENATOR RIVERA:   I actually want to 

23   go back briefly to Section 6, because there's one 

24   thing that I missed and I want to make sure that 

25   I get clarification, Mr. President.  Section 6, 


                                                               1355

 1   again, is the one that deals with opting out of 

 2   certain areas of the law which would allow for 

 3   some level of oversight from different entities, 

 4   the Comptroller being one of them.  And also, as 

 5   we said, to allow for more flexible -- utilizing 

 6   the language of the sponsor, a more flexible 

 7   process by which we could contract more quickly 

 8   and more efficiently.

 9                What is the consideration in this 

10   process -- I do not see language that refers to 

11   MWBEs, particularly whether there is any type of 

12   standard that will be set to make sure that -- 

13   yes, flexibility is obviously important.  But if 

14   we're talking about an institution that is in 

15   Brooklyn and is obviously surrounded by many 

16   minority and women-owned business enterprises 

17   that could perform some such services that we're 

18   talking about, is there something in the 

19   language -- through you, Mr. President -- that 

20   would allow or that establishes any type of 

21   standards as it refers to MWBEs for this 

22   particular institution and this particular plan?

23                SENATOR DeFRANCISCO:   The section 

24   that waives some of these provisions and gives 

25   flexibility from these provisions does not have a 


                                                               1356

 1   section in the section dealing with minority and 

 2   women-owned businesses.  

 3                So we're not exempting the 

 4   university from any existing law or existing 

 5   executive order by the chief executive, of all of 

 6   those laws.  It just gives flexibility and waives 

 7   the provisions of the specific laws that are 

 8   listed here, sections of the laws that are listed 

 9   here.

10                SENATOR RIVERA:   Through you, 

11   Mr. President, if the sponsor would continue to 

12   yield.

13                SENATOR DeFRANCISCO:   Yes.

14                ACTING PRESIDENT VALESKY:   The 

15   sponsor yields.

16                SENATOR RIVERA:   Thank you, 

17   Mr. President.

18                So just to be clear, State Finance 

19   Law 112, which requires any contract over $50,000 

20   for all agencies except OGS and $85,000 for OGS 

21   to be reviewed and approved by the Comptroller 

22   before it's effective -- for example, that 

23   particular section of the law -- or State Finance 

24   Law 63, which is about evaluating offers and 

25   awarding contracts, so you're saying that even 


                                                               1357

 1   though there is no language in the legislation 

 2   that we're considering today to make sure that 

 3   MWBEs are considered as far as the targets that 

 4   we're trying to hit in different agencies across 

 5   the state, that that is going to be -- that we 

 6   should assume that even though there is no 

 7   requirement for the normal process to be 

 8   undertaken to make sure that the contracts that 

 9   are entered into by a state agency or a state 

10   entity are good, fair contracts, that even though 

11   all of those requirements are waived, that the 

12   requirement that refers to MWBEs -- through you, 

13   Mr. President -- is going to continue to be 

14   observed and respected?

15                SENATOR DeFRANCISCO:   That's my 

16   reading of this bill.  I don't administer 

17   contracts and I don't enforce women- and 

18   minority-owned business regulations.  I'm just 

19   saying the bill does not waive those other 

20   provisions that currently exist.

21                SENATOR RIVERA:   Through you, 

22   Mr. President, if the sponsor would continue to 

23   yield.

24                SENATOR DeFRANCISCO:   Yes.

25                ACTING PRESIDENT VALESKY:   The 


                                                               1358

 1   sponsor yields.

 2                SENATOR RIVERA:   Thank you, 

 3   Mr. President.

 4                I skipped over a very important 

 5   section; I want to make sure we go back to it.  

 6   And that's Section 7.

 7                SENATOR DeFRANCISCO:   I would hope 

 8   so.

 9                (Laughter.)

10                SENATOR RIVERA:   You were thinking 

11   I was going to skip it, but that's the one that 

12   you're most ready -- I'm sorry, Mr. President, 

13   through you.  I'm thinking that the sponsor might 

14   be particularly ready for questions regarding 

15   this section, so I shall, through you, ask them.

16                This particular section refers to 

17   allowing access to for-profit corporations to 

18   operate part or some of the entity.  Through you, 

19   Mr. President, is that a correct interpretation?  

20                SENATOR DeFRANCISCO:   Correct.

21                SENATOR RIVERA:   Through you, 

22   Mr. President, if the sponsor would continue to 

23   yield.

24                SENATOR DeFRANCISCO:   Yes.

25                SENATOR RIVERA:   Thank you, 


                                                               1359

 1   Mr. President.

 2                There is language in here that 

 3   refers specifically to allowing access for a 

 4   private institution to potentially run the 

 5   day-to-day operations of the entity.  Is that a 

 6   correct interpretation?  Through you, 

 7   Mr. President.

 8                SENATOR DeFRANCISCO:   Potentially.  

 9   However, there's a provided "however" in here as 

10   well, which says that any such contracts with 

11   for-profit entities shall be authorized only upon 

12   approval by the Commissioner of Health and the 

13   Director of the Division of the Budget of a 

14   request by the Chancellor demonstrating financial 

15   need of the State University healthcare facility.

16                So it gives that flexibility, but 

17   there's a leash on that flexibility, the leash 

18   being held by the Commissioner of Health as well 

19   as the Budget Director.

20                SENATOR RIVERA:   Through you, 

21   Mr. President, if the sponsor would continue to 

22   yield.

23                SENATOR DeFRANCISCO:   Yes.

24                SENATOR RIVERA:   Mr. President, as 

25   far as that leash is concerned, that leash does 


                                                               1360

 1   not have one part of the leash that extends to us 

 2   as the Legislature or another one that extends 

 3   itself to the Comptroller, is that correct?  To 

 4   continue the metaphor.

 5                SENATOR DeFRANCISCO:   Excuse me, I 

 6   won't use the word "leash," I won't use the words 

 7   "damned if you do and damned if you don't."  

 8                Very clearly, it has to be subject 

 9   to the approval of both the Commissioner of 

10   Health and the Budget Director.  They are the 

11   administrators of the hospital as well as the 

12   overall state budget.  So we don't normally 

13   administer anything.  And I hope we never do 

14   administer trying to save a hospital, because I 

15   don't know that we'd ever get it done.

16                And so this is -- there is this 

17   oversight and there is this protection.

18                SENATOR RIVERA:   Through you, 

19   Mr. President, if the sponsor would continue to 

20   yield.

21                ACTING PRESIDENT VALESKY:   Senator 

22   DeFrancisco.

23                SENATOR DeFRANCISCO:   Yes.

24                ACTING PRESIDENT VALESKY:   The 

25   sponsor yields.


                                                               1361

 1                SENATOR RIVERA:   I want to actually 

 2   move on to a different part to ask a few 

 3   questions.  I might come back briefly to the 

 4   Part Q, but I want to ask a couple of questions 

 5   about Part P that has to do with the Mental 

 6   Hygiene Stabilization Fund.  I think some of my 

 7   colleagues are going to be going a little bit 

 8   deeper into this, but I want to ask specifically 

 9   about the -- let's ask first -- I'm sorry.  

10                Through you, Mr. President, if the 

11   sponsor would please explain the overall purpose 

12   of the Mental Hygiene Stabilization Fund.

13                SENATOR DeFRANCISCO:   Part?

14                SENATOR RIVERA:   Through you, 

15   Mr. President, if the sponsor would take Part P, 

16   which refers to the Mental Hygiene Stabilization 

17   Fund -- would explain the purpose of the Mental 

18   Hygiene Stabilization Fund.

19                SENATOR DeFRANCISCO:   Well, this 

20   one I have a tough time with because my Part P 

21   deals with OTB and assistance with the cost of 

22   Medicare premiums, et cetera, et cetera.  Maybe I 

23   got the wrong bill here.  Part P?

24                SENATOR RIVERA:   Through you, 

25   Mr. President, I believe Part P as in Peter.


                                                               1362

 1                SENATOR DeFRANCISCO:   I think Part 

 2   O, unless my numbers are wrong, relates to the 

 3   stabilization fund.

 4                SENATOR RIVERA:   Through you, 

 5   Mr. President, my apologies.  I was mistaken.  It 

 6   is Part O.  

 7                So yes, if the sponsor -- through 

 8   you, Mr. President -- could explain the main 

 9   purpose of Part O, the Mental Hygiene 

10   Stabilization Fund.

11                SENATOR DeFRANCISCO:   Okay, I 

12   needed help on this one.  And basically what it 

13   is is that the -- we have been charged by the 

14   federal government of a billion-one, or a little 

15   more than that, of overpayments on Medicaid.  

16                So the purpose of the stabilization 

17   fund is to start saving for when we have to pay 

18   these bills back over time.  And that is the 

19   reason for the bill.

20                SENATOR RIVERA:   Through you, 

21   Mr. President, if the sponsor will continue to 

22   yield.

23                ACTING PRESIDENT VALESKY:   Senator 

24   DeFrancisco, do you continue to yield?  

25                SENATOR DeFRANCISCO:   Yes, I do.


                                                               1363

 1                ACTING PRESIDENT VALESKY:   The 

 2   sponsor yields.

 3                SENATOR RIVERA:   Thank you, 

 4   Mr. President.

 5                So this refers to the conversation 

 6   that we've had -- a lot of conversations that 

 7   we've had over the last couple of weeks related 

 8   to the Office for Persons With Developmental 

 9   Disabilities and the cuts to that particular 

10   agency; is that correct?  

11                SENATOR DeFRANCISCO:   That's 

12   correct.  But that issue is in a different bill, 

13   the Aid to Localities bill.

14                SENATOR RIVERA:   Through you, 

15   Mr. President, if the sponsor would continue to 

16   yield.

17                SENATOR DeFRANCISCO:   Yes.

18                ACTING PRESIDENT VALESKY:   The 

19   sponsor yields.

20                SENATOR RIVERA:   If I understand it 

21   correctly, Mr. President, yes, he is correct, the 

22   sponsor is correct, Aid to Localities refers to 

23   the particular money that has been -- funds that 

24   have been allocated for that particular agency.  

25                But if I'm not mistaken, this 


                                                               1364

 1   particular fund in this bill deals with transfers 

 2   that are to happen between the Department of 

 3   Health and OPWDD for the purposes of covering 

 4   some of the gap that's going to exist because of 

 5   the overpayments that the sponsor referred to 

 6   earlier.  So I want clarification on that to see 

 7   if I am correct.

 8                SENATOR DeFRANCISCO:   You're 

 9   correct.

10                SENATOR RIVERA:   Through you, 

11   Mr. President, if the sponsor would continue to 

12   yield.

13                SENATOR DeFRANCISCO:   Yes.

14                ACTING PRESIDENT VALESKY:   The 

15   sponsor yields.

16                SENATOR RIVERA:   Thank you, 

17   Mr. President.

18                There's two different periods that 

19   are covered, Mr. President, in this bill as it 

20   refers to -- and some of the analysis that we've 

21   made as far as the numbers that are going to go 

22   through the stabilization fund.  This is funding 

23   that is going to be allocated from the Department 

24   of Health over to OPWDD to cover some of the 

25   shortages that are obviously going to exist at 


                                                               1365

 1   that agency because of the cuts we're going to be 

 2   discussing much more of a little bit later, 

 3   certainly during Aid to Localities.  

 4                I want to discuss specifically the 

 5   outyears, not only 2013-2014 but, more 

 6   specifically, 2014 and 2015.  Because it seems, 

 7   and I want clarification on this from the 

 8   sponsor, Mr. President, it seems that we've 

 9   identified $445 million in the outyears to be 

10   appropriated for the Mental Hygiene Stabilization 

11   Fund.  However, it seems that what we're doing is 

12   we're counting on money that perhaps would be 

13   coming from the federal government.  

14                So it seems that the analysis that 

15   we've made of the numbers tells us that what's 

16   happening, Mr. President, is that we're assuming 

17   or we're wishing that in 2014 and 2015 this 

18   $445 million is given to us from the federal 

19   government, and therefore we would be able to 

20   plug the hole that would exist in this particular 

21   fund that we're creating with this bill.  

22                Is that correct?  Mr. President, 

23   through you.

24                SENATOR DeFRANCISCO:   Well, we're 

25   always trying to maximize reimbursement from the 


                                                               1366

 1   federal government for Medicaid.  So of course 

 2   we're wishing that more funds come in.  But the 

 3   purpose of the stabilization fund is to make sure 

 4   that we will have the funds available from our 

 5   own budget in the event that those additional 

 6   funds don't come in from the federal government.

 7                SENATOR RIVERA:   Mr. President, on 

 8   the bill.

 9                ACTING PRESIDENT VALESKY:   Senator 

10   Rivera on the bill.

11                SENATOR RIVERA:   Thank you, 

12   Mr. President.  

13                First of all, I'd like to thank 

14   Senator DeFrancisco, with his able help from his 

15   able staffers, who was able to answer some of the 

16   questions that I had.  I'm a little bit clearer 

17   on some --

18                SENATOR DeFRANCISCO:   Excuse me.  I 

19   really knew all that stuff, but I asked every so 

20   often.

21                (Laughter.)

22                SENATOR RIVERA:   Apologies to 

23   Senator DeFrancisco, through you, Mr. President.  

24   Of course you did.

25                So now that I have a little bit more 


                                                               1367

 1   clarification, I can say right off the bat, 

 2   Mr. President, that I'll be voting in the 

 3   negative on this piece of legislation for a few 

 4   reasons.  

 5                First of all, I'd like to kind of go 

 6   over -- when we're talking about SUNY Downstate, 

 7   I would agree wholeheartedly with my colleague 

 8   that no one in New York, no one in this 

 9   Legislature, certainly, would want this 

10   institution to close.  And I know many of my 

11   colleagues are going to be talking about that 

12   more at length, since it impacts them directly 

13   and their constituents directly.  

14                But personally I believe that the 

15   proposal that we have in front of us is not the 

16   correct way to address it, for a couple of 

17   different reasons.  Number one, it is stated 

18   specifically in the legislation that the 

19   hospital -- that SUNY Downstate is a teaching 

20   hospital and that the purpose of the bill is to 

21   maintain its status as a teaching hospital.  And 

22   I believe wholeheartedly that an institution that 

23   produces the majority of doctors of color in this 

24   particular area of the state should remain open 

25   and should continue to be viable.


                                                               1368

 1                However, I believe also that when 

 2   we're talking about this institution we have to 

 3   look at it both as -- not only as a teaching 

 4   hospital, but also as a service provider.  We're 

 5   talking about what is it that this institution 

 6   does.  Certainly it gives us excellent doctors.  

 7   But also it gives us or gives people in Brooklyn 

 8   access to basic health services that would not be 

 9   available if this institution didn't exist.  

10                It is my belief that the language, 

11   in the way that it is organized right now, does 

12   not provide for that to be the case.  As opposed 

13   to that, it allows for a level of flexibility -- 

14   and this is a word that was used over and over 

15   again by the sponsor -- which I believe 

16   ultimately is vagueness and does not guarantee 

17   that the services will continue to exist.

18                Furthermore, as has been pointed out 

19   by my colleague Senator Parker a few times during 

20   the last couple of days, it is the fourth-largest 

21   employer in Brooklyn.  And that should also be 

22   taken into consideration when we're thinking 

23   about what's going to happen with this 

24   institution.  

25                So to just refer to it -- we want to 


                                                               1369

 1   make sure we maintain it as a teaching hospital, 

 2   certainly.  But if there's nothing in the 

 3   language that gives us a sense of whether it will 

 4   maintain its position as a basic service provider 

 5   to millions of Brooklynites, that is a problem.  

 6   And as being the fourth-largest employer, we 

 7   should be concerned about whether this 

 8   institution is going to continue to exist.  

 9                Second, transparency and 

10   accountability.  We have been talking about 

11   this -- we talk about this very much on this 

12   floor.  And certainly I know that many of us are 

13   committed to making sure that the people that we 

14   represent know exactly what it is that we are 

15   doing up here.  

16                As it refers to what is happening 

17   here and what I read the language to be, it 

18   really reminds me a little bit of what's 

19   happening right now in Michigan.  In Michigan, as 

20   I'm sure that many of you folks are aware, there 

21   is a conversation right now about emergency 

22   managers.  These are people that in emergency 

23   financial situations are put in control -- in the 

24   case of Michigan, of municipalities or cities, 

25   like just happened to Detroit -- and then we're 


                                                               1370

 1   talking about the ability of these particular 

 2   individuals to do what they feel they should or 

 3   what they feel they must without any level of 

 4   accountability, any level of transparency, any 

 5   level of oversight.  

 6                I have a problem with that.  And I 

 7   believe that we should all have a problem with 

 8   that.  While I certainly think that there is a 

 9   need for an institution that is under duress to 

10   act in ways that it feels it needs to act to save 

11   itself, I believe that what is happening here is 

12   that we are taking away two leashes, to use some 

13   of the terms that were used by the sponsor, 

14   specifically to us as a Legislature and to the 

15   entity that in the State of New York is 

16   responsible for making sure that the dollars that 

17   are hard-earned tax dollars our constituents give 

18   us are used appropriately and well, and that is 

19   the Comptroller.  

20                That is excised from this 

21   institution.  It seems to be a bubble that is 

22   created where no transparency, no accountability 

23   and no oversight exists.  

24                And finally, the issue of 

25   privatization.  We are allowing -- again, for the 


                                                               1371

 1   sake of flexibility, for the sake of trying to 

 2   save this institution, which I believe we all 

 3   must do -- for private entities to enter into any 

 4   type of arrangements that they might with this 

 5   institution.  

 6                But again, I have been very 

 7   concerned about this and I have spoken about this 

 8   on the floor before.  We're talking about a 

 9   long-standing tradition of nonprofit healthcare 

10   in the State of New York.  And while I certainly 

11   believe that the people of Brooklyn deserve to 

12   have this institution continue to exist, we 

13   should be very concerned when we are allowing a 

14   private institution -- which is unnamed at this 

15   time; we do not know what this organization is, 

16   what it could be.  But we are creating a 

17   situation where this entity could potentially run 

18   the day-to-day operations of this hospital.  

19                Now, the issue I have with that is 

20   that if you have a for-profit institution, a 

21   for-profit entity, it's right there in the name, 

22   "for profit" as opposed to "for care."  If we 

23   allow this institution that, as I mentioned 

24   before, serves so many of our constituents in 

25   Brooklyn, and we're saying that we're going to 


                                                               1372

 1   inject an institution that might be making 

 2   decisions based on what kind of money they're 

 3   going to make, as opposed to what kind of care 

 4   they can provide, we should always be concerned 

 5   that that is happening.  

 6                And finally, as it relates to the 

 7   Mental Hygiene Stabilization Fund -- and I know 

 8   many of my colleagues will speak about this as 

 9   well, as it relates to the service of OPWDD and 

10   what I think ultimately we are doing as an entity 

11   in the Legislature, which ultimately is tragic, 

12   because we are taking services away from the 

13   folks that are the most needy in this state and 

14   we are not doing enough to make sure we continue 

15   to serve those folks.  This Mental Hygiene 

16   Stabilization Fund makes certain assumptions 

17   about what kinds of money we're going to be 

18   getting in the future.  

19                So we're talking about an agency 

20   that provides services that are absolutely 

21   necessary to the most needy New Yorkers, and we 

22   are saying, Well, we're thinking that maybe the 

23   federal government will perhaps give us this 

24   money in the future, and we're talking about 

25   $445 million that we are leaving there.  


                                                               1373

 1                Ladies and gentlemen, these are just 

 2   two parts that I wanted to make sure that we went 

 3   at length into because I believe that both of 

 4   them are incredibly important for what we need to 

 5   do in the State of New York to provide access to 

 6   basic healthcare to New Yorkers all across the 

 7   state.  

 8                I do not believe that in just these 

 9   two instances -- in one we are just relying on 

10   the goodwill of the federal government for almost 

11   $500 million of budget for this particular 

12   agency, and in the other we are opening up what I 

13   believe is ultimately an unwise decision to try 

14   to save this particular institution in this 

15   particular way.  

16                I believe that there's better ways 

17   to do it.  I wish that we were a part of the 

18   conversation more directly to make sure that this 

19   would have happened differently.  I know that 

20   many of my colleagues here that live and 

21   represent Brooklyn and that represent millions of 

22   New Yorkers down there would have really wanted 

23   to be part of that conversation.  It is 

24   unfortunate and disappointing that we were not.  

25                The product that came out of those 


                                                               1374

 1   conversations I believe is inadequate, and 

 2   ultimately I will be voting in the negative.  

 3                Thank you, Mr. President.  

 4                ACTING PRESIDENT VALESKY:   Thank 

 5   you, Senator Rivera.

 6                Senator LaValle on the bill.

 7                SENATOR LaVALLE:   Thank you, 

 8   Mr. President.  

 9                First let me thank the chairman of 

10   the Finance Committee.  He did really a stellar 

11   job, and it shows of his involvement in this 

12   issue that he was able to move through a very 

13   detailed set of questions.  

14                Senator Hannon has been involved, 

15   myself, and a number of staff people.  I would 

16   tell you that the meetings that have taken place 

17   were very comprehensive, very long, and every 

18   detail was looked at for not just a short period 

19   of time, for many, many months, six months.

20                I felt that Senator Golden was my 

21   shadow.  Every time I turned around, he was there 

22   asking the same question.

23                I want to make comments that I think 

24   supplement and complement the remarks made by the 

25   chairman of the Finance Committee.


                                                               1375

 1                We are dealing, Senator Rivera and 

 2   members of this body, with a problem that is a 

 3   $16 million hemorrhaging problem of Downstate.  

 4   Of that $16 million, about $4 million is from 

 5   LICH.  So it is a very dramatic problem.  It has 

 6   been the purpose of the negotiations -- and 

 7   people know where we started -- that this 

 8   hospital remain as a teaching hospital and that 

 9   it remain as a public, public entity.  And it's 

10   cited, and I'll talk about it when we get to that 

11   section.

12                I'm going to try, Senator Rivera, to 

13   go through your questions going through it by 

14   section.  

15                One of the things that was mentioned 

16   about the restructuring, well, the restructuring 

17   is needed and a sustainability plan is needed and 

18   the language in here for the purpose of achieving 

19   fiscal viability while preserving its status as a 

20   teaching hospital, as a teaching hospital.  So 

21   that language was put in there very 

22   deliberately.  And as you know, we excluded 

23   language that would have made this a pilot for 

24   private or otherwise.

25                The sustainability plan that's going 


                                                               1376

 1   to be developed by the chancellor is done in 

 2   consultation with labor representatives, 

 3   community representatives, and other regional 

 4   stakeholders.  And -- this is very important, 

 5   because I think you mentioned transparency -- and 

 6   will allow for public comment and input from 

 7   consumers of healthcare services in the 

 8   development of this plan, 

 9                We talked about the June 1st, and 

10   the members of the respective chairs of Finance, 

11   Health and Higher Education will have notice of 

12   that plan.  But the importance of the June 15th 

13   plan -- remember, we have a hospital that's 

14   hemorrhaging, and we have to come up with a plan 

15   that's going to draw down money to keep it open.  

16   So that's why the June 15th date was put in 

17   there, so that we have a plan.  

18                And by the way, this Legislature has 

19   asked the State University for a plan 

20   repeatedly.  At Senator DeFrancisco's hearing on 

21   SUNY, we got an outline of a plan Dr. Williams 

22   talked about.  And he talked about, you know, the 

23   reconfiguration and he talked about things that 

24   he was doing to try and reduce that hemorrhaging.

25                Now, in order to get -- and we'll 


                                                               1377

 1   get to the money -- you have to have certain 

 2   metrics.  And we were very sensitive to labor and 

 3   maintaining the public aspect.  But in order to 

 4   meet -- and this was, I think, agreed by all of 

 5   the parties, as we struggled with language, was 

 6   that to meet those metrics you needed some 

 7   flexibility.  And so last year we gave SUNY 

 8   flexibility in procurement of goods, not 

 9   services.  There was a whole debate on that, and 

10   we were very, very sensitive at that time.

11                Just to give you an idea, the 

12   contract, the contract for the hiring of a 

13   consultant took nine months through the process 

14   of OCS and the Attorney General, nine months.  

15   So, Senator, if you're hemorrhaging at 

16   $16 million a month, you can't sustain, you know, 

17   a process that's going to have the meter run: 

18   Ka-ching, ka-ching, ka-ching.

19                So it was done -- I'll yield when I 

20   get done.  I'll yield when I get done.

21                ACTING PRESIDENT VALESKY:   Senator 

22   Rivera, Senator LaValle will yield after he 

23   finishes his remarks.

24                SENATOR RIVERA:   Oh, after he 

25   finishes, yes.  Thank you, Mr. President.


                                                               1378

 1                SENATOR LaVALLE:   To show you the 

 2   sensitivity, we limited the contracts.  And 

 3   they're here delineated in Section 6 that you 

 4   talked about:  Consultant services, revenue 

 5   collection and billing services, electronic and 

 6   medical health records, insurance eligibility and 

 7   verification services.  And we also allow for 

 8   clinical services pursuant to the sustainability 

 9   plan.  

10                But here's the most important 

11   language on page 3:  That such contracts shall 

12   not be of such scope or nature as to alter the 

13   character of Downstate Hospital as a public 

14   hospital and shall be limited, shall be limited 

15   in terms of the percentage.  Fifteen percent 

16   unless there's an exigency that takes place, and 

17   then it only can go up 5 percent, or limited to a 

18   total of 20 percent.

19                During the budget hearing 

20   Dr. Williams was very, very specific in terms of 

21   talking about a plan.  And one of the things 

22   that -- and Senator Hannon has talked about 

23   this -- is the change, the change in healthcare 

24   that has taken place.  And so we're in a new 

25   world today.  And in order to be competitive, 


                                                               1379

 1   Dr. Williams, as part of his testimony before the 

 2   Finance Committee, talked about relationships 

 3   with other providers in the Brooklyn area and 

 4   wherever, in order to provide to the people of 

 5   that area continued quality healthcare and done 

 6   in such a way that meets the economics in today's 

 7   healthcare world.  

 8                The last thing I just want to say is 

 9   that it is important, that June 15 date, because 

10   we have to start putting together a plan to 

11   access the monies that we need.  And one of those 

12   things -- and I get a kick in the healthcare 

13   world, where everything is an acronym.  And if I 

14   told you DSRIP, that's Delivery System Reform 

15   Incentive Payment.  

16                So in order to get those monies and 

17   other monies, that we need to have a plan and be 

18   able to perform that plan.  You have -- and 

19   Senator DeFrancisco has said this repeatedly -- 

20   you have the involvement of the Commissioner of 

21   Health and the Director of the Division of the 

22   Budget.  And you know, if he were in this 

23   chamber, you could probably talk to him about the 

24   Q section and he could tell you with great 

25   specificity what is behind all of this.  


                                                               1380

 1                Some of the things that are not here 

 2   in this bill are things that people are working 

 3   on.  Because you don't go from today's date to 

 4   June 1st and have a plan and access of money.

 5                So this, I would tell you, was a 

 6   priority.  And as a matter of fact, in higher 

 7   education I think we did great things for the 

 8   community colleges.  And this issue has 

 9   overshadowed everything that we have done in 

10   higher education because of its importance.  My 

11   colleague to the right, Senator Golden, has been 

12   like a tick.

13                (Laughter.)

14                SENATOR LaVALLE:   And hopefully --

15                SENATOR GOLDEN:   Is that the best 

16   word you could find?

17                SENATOR LaVALLE:   I was going to 

18   say a burr, but --

19                (Laughter.)

20                SENATOR LaVALLE:   Senator, I'll 

21   yield.

22                SENATOR RIVERA:   Mr. President, if 

23   Senator LaValle would yield for one question.

24                SENATOR LaVALLE:   Yes.

25                ACTING PRESIDENT VALESKY:   Senator 


                                                               1381

 1   LaValle yields.

 2                SENATOR RIVERA:   Thank you, 

 3   Mr. President.  

 4                While I certainly will not comment 

 5   on the insect qualities or nonqualities of 

 6   Senator Golden, I think we can all agree that 

 7   certainly he was very insistent on this.  

 8                The question that I have either for 

 9   Senator LaValle or for the sponsor or anyone 

10   else, really, is why was the only Brooklyn 

11   Senator invited to these conversations Senator 

12   Golden?  As I figure, I don't know if Senator 

13   Parker, Senator Adams, Senator Montgomery or 

14   Senator Squadron, either or any of them, were 

15   invited to any of these conversations.  

16   Specifically Senator Squadron, since it is in his 

17   district.  I just want to know if the sponsor 

18   would yield for that.  Oh, and Senator Sampson, 

19   too.  Apologies.

20                SENATOR LaVALLE:   Senator, in part, 

21   as chairs, you are involved in this issue.  

22                But I can tell you, I've had 

23   conversations with the ranking member of the 

24   committee, Senator Stavisky.  And I would tell 

25   you, she was up-to-date on everything that was 


                                                               1382

 1   going on.  I had a conversation with 

 2   Senator Squadron, and he seemed very aware what 

 3   was going on and even had ideas.

 4                So I don't think that this was 

 5   done -- I think you have responsibilities as 

 6   chair, and I think that's why, you know, we're 

 7   involved to that degree.  

 8                And Senator Golden's involved 

 9   because I'm telling you, for six months Senator 

10   Golden has been a shadow.  So if anyone else was 

11   the same shadow, I would have shared whatever 

12   information I had.

13                SENATOR RIVERA:   Thank you, 

14   Mr. President.

15                ACTING PRESIDENT VALESKY:   Senator 

16   Squadron on the bill.

17                SENATOR SQUADRON:   Thank you, 

18   Mr. President.  Actually, if the sponsor would 

19   yield.  I'll wait.

20                ACTING PRESIDENT VALESKY:   Senator 

21   LaValle, do you yield?

22                SENATOR LaVALLE:   Yes.

23                ACTING PRESIDENT VALESKY:   Senator 

24   LaValle yields.  

25                SENATOR SQUADRON:   If Senator 


                                                               1383

 1   LaValle would yield, that's -- I appreciate that 

 2   as well.  Thank you very much.

 3                Senator LaValle, the sponsor when he 

 4   was here referred to the fact that in the 2010 

 5   merger between Downstate and LICH, LICH, in his 

 6   words, had money thrown at it.  Do you remember 

 7   how much money, state money was given to help the 

 8   merger between Downstate and LICH?

 9                SENATOR LaVALLE:   I'm going to get 

10   you an accurate figure on that.

11                SENATOR SQUADRON:   Thank you.

12                SENATOR LaVALLE:   Now, Senator, 

13   just anticipating where you're going to go with 

14   this questioning -- and I'll get you a number -- 

15   you will know as part of our process that we in 

16   the Legislature, by law, define other entities or 

17   individuals to be responsible for certain 

18   transactions.  And so SUNY, the board and the 

19   chancellor, certainly when it comes to 

20   acquisition of properties -- wherever they are, 

21   wherever they are in the SUNY system -- will make 

22   those decisions.

23                SENATOR SQUADRON:   Perhaps the 

24   sponsor -- I thank Senator LaValle for that.  I'm 

25   asking about state money, state HEAL grant money.


                                                               1384

 1                SENATOR LaVALLE:   By the way, 

 2   Senator Squadron, I'm told that that transaction 

 3   was done in 2010.  So you would probably have 

 4   better knowledge than I in the year 2010.

 5                SENATOR SQUADRON:   One of the few 

 6   years on which I may have better knowledge, 

 7   Senator LaValle.

 8                Through you, Mr. President, I do -- 

 9   if the sponsor knows, it was $63 million in state 

10   HEAL grant money that went to the merger of SUNY 

11   Downstate and LICH, $63 million that was spent as 

12   part of a promise that healthcare in Brooklyn, 

13   from one part of the borough to another, for 

14   millions of people, would be preserved and 

15   expanded and would have the support of SUNY and 

16   of the state.  And as Senator LaValle points out, 

17   it was in 2010.

18                If Senator LaValle would yield for 

19   another question.

20                ACTING PRESIDENT VALESKY:   Senator 

21   LaValle, do you continue to yield?  

22                SENATOR LaVALLE:   Yes.

23                ACTING PRESIDENT VALESKY:   Senator 

24   LaValle yields.

25                SENATOR SQUADRON:   Thank you.  


                                                               1385

 1                Through you, Mr. President, is 

 2   Senator LaValle aware of the valuation that the 

 3   Comptroller recently put on the LICH real estate?

 4                SENATOR LaVALLE:   Not until you 

 5   told me at 5:30 on Sunday night.

 6                SENATOR SQUADRON:   If the sponsor 

 7   would continue to yield.

 8                SENATOR LaVALLE:   Yes.

 9                ACTING PRESIDENT VALESKY:   Senator 

10   LaValle yields.

11                SENATOR SQUADRON:   Not to keep 

12   everyone in suspense, but Senator LaValle was not 

13   familiar with the valuation of the LICH real 

14   estate until Sunday night after this bill had 

15   printed?

16                SENATOR LaVALLE:   Let's go back to 

17   my response.  When we talk about acquisition of 

18   property, that is a decision that the SUNY board 

19   and the chancellor make.  

20                And as you know, the focus has been 

21   on the terrible failure that LICH was.  And we in 

22   this Legislature did not make that deal or get 

23   into it, that was made by those individuals that 

24   by law we designate to make those decisions.

25                SENATOR SQUADRON:   If Senator 


                                                               1386

 1   LaValle would continue to yield.

 2                SENATOR LaVALLE:   Yes.

 3                ACTING PRESIDENT VALESKY:   Senator 

 4   LaValle yields.

 5                SENATOR SQUADRON:   Is Senator 

 6   LaValle suggesting -- through you, 

 7   Mr. President -- that it was SUNY dollars that 

 8   were spent in order to acquire LICH and to create 

 9   that merger?

10                SENATOR LaVALLE:   Well, SUNY 

11   dollars or state dollars.  Is that what you're 

12   inferring?

13                SENATOR SQUADRON:   I'm just asking 

14   for a clarification from Senator LaValle, who has 

15   spoken about SUNY's responsibility to acquire 

16   real estate and/or assets.  And I'm asking if the 

17   implication is that this was somehow SUNY 

18   dollars.

19                SENATOR LaVALLE:   They are dollars 

20   that the State University had for a capital 

21   investment that at the time the board made a 

22   decision, based on a plan and based on what I 

23   talked about before about where we are with 

24   healthcare today, to try and expand the reach in 

25   providing healthcare services.


                                                               1387

 1                I would say most of the time our 

 2   boards, the SUNY board makes good decisions.  

 3   This was a bad deal that went worse.  

 4                SENATOR SQUADRON:   If the sponsor 

 5   would continue to yield.

 6                ACTING PRESIDENT VALESKY:   Senator 

 7   LaValle?

 8                SENATOR LaVALLE:   Yes.

 9                ACTING PRESIDENT VALESKY:   Senator 

10   LaValle continues to yield.

11                SENATOR SQUADRON:   Thank you.  And 

12   I thank Senator LaValle for his response.

13                It was $63 million in state HEAL 

14   funding, which is approved by the Commissioner of 

15   the Department of Health, that went to that 

16   merger, from the State Department of Health HEAL 

17   grants.  And the valuation of the State 

18   Comptroller in the report that the State 

19   Comptroller did at the request of some members of 

20   this body that came out at the beginning of this 

21   year, the valuation for the real estate was in 

22   the neighborhood of $500 million.  That's half a 

23   billion, with a B, dollars for LICH.  

24                With that information, is the 

25   sponsor aware of the recent vote the SUNY board 


                                                               1388

 1   took to apply to the State Department of Health 

 2   to close LICH?

 3                SENATOR LaVALLE:   Senator, yes, I'm 

 4   aware of it.  But those dollars, when we make 

 5   decisions, we access -- as we will in allowing 

 6   this sustainability plan and allowing Downstate 

 7   to be viable fiscally and remain open as a 

 8   teaching hospital.  Because we're using as -- the 

 9   state, in making a decision, is using or will use 

10   federal dollars.  

11                So to just say, well, this is HEAL 

12   grant money, well, SUNY made that decision 

13   because they could access HEAL grant money to 

14   make this deal happen -- and I don't think you're 

15   suggesting -- I mean, it's great today, looking 

16   back, to be an armchair quarterback and say it 

17   wasn't a good deal.  I think the people of 

18   Brooklyn felt that this was what they wanted, was 

19   a good deal to provide healthcare services to 

20   that community.  

21                So, you know, sometimes we look back 

22   with the experience and the knowledge that we 

23   have today and say, well, it wasn't a good deal, 

24   we squandered $63 million.  

25                And by the way, if I recall, at 5:30 


                                                               1389

 1   on Sunday you told me that the value of LICH was 

 2   $400 million, not $500 million.  So we've upped 

 3   it by $100 million.

 4                SENATOR SQUADRON:   If the sponsor 

 5   would continue to yield.

 6                SENATOR LaVALLE   Yes.

 7                ACTING PRESIDENT VALESKY:   Senator 

 8   LaValle yields.

 9                SENATOR SQUADRON:   Senator LaValle 

10   is correct that the low conservative assessment 

11   of the property would be $400 million.  The State 

12   Comptroller's report said it was $500 million, 

13   regardless.  

14                And while I appreciate the answer 

15   overall, there was not an answer to the question 

16   to as to what the SUNY board recently voted to 

17   do.  It recently voted to apply to the State 

18   Department of Health to chose LICH.  It has not 

19   yet received that approval from the State  

20   Department of Health.  And we certainly are going 

21   to do everything we can to forestall that 

22   approval.  But we know that it's on the table, 

23   it's something the SUNY board has now voted twice 

24   to do, once outside of the law, once within the 

25   law.


                                                               1390

 1                The question is, in the response 

 2   Senator LaValle suggested that it's going to be 

 3   federal money that's going to shore up SUNY 

 4   Downstate or whatever portion of SUNY Downstate 

 5   continues to survive.  Senator LaValle is 

 6   suggesting that it's not going to be any of the 

 7   real estate valued between $400 million and 

 8   $500 million -- the $400 million, let's call it 

 9   the conservative Sunday afternoon estimate; 

10   $500 million being the State Comptroller's 

11   estimate -- that none of that $400 million to 

12   $500 million will be used to shore up SUNY 

13   Downstate?

14                SENATOR LaVALLE:   Senator, I would 

15   say that I'm somewhat confused, because LICH is 

16   hemorrhaging at $4 million a month and has for 

17   some period of time.  So I don't want to get into 

18   the decision-making of whether LICH stays open or 

19   not.  But I have not heard anything that you have 

20   said on how you're going to deal with that 

21   $4 million.  Now -- $4 million a week, a week, 

22   I'm told.

23                Now, in here we have a 

24   sustainability plan.  As part of that plan, 

25   Senator, they could, they could, based on your 


                                                               1391

 1   remarks and your input -- and when we spoke on 

 2   Sunday, your input did not fall on deaf ears.  I 

 3   mean, it sounded like when you're hemorrhaging 

 4   the way you are, anything should be on the table 

 5   for consideration.

 6                But I -- well, I'll just end it 

 7   there, put a period.  

 8                SENATOR SQUADRON:   If the Senator 

 9   would continue to yield.

10                SENATOR LaVALLE:   Yes.

11                ACTING PRESIDENT VALESKY:   Senator 

12   LaValle yields.

13                SENATOR SQUADRON:   I appreciate 

14   that.  

15                To be clear, I have not posited 

16   anything in these questions other than just an 

17   understanding of the process and an understanding 

18   of what was known and considered in the room 

19   through the process that you described quite 

20   fully previously.

21                Let me just ask one more time, very 

22   directly, $400 million to $500 million worth of 

23   real estate in a hospital that's been around over 

24   a hundred years that may get shut down, is it the 

25   Senator's understanding that those dollars will 


                                                               1392

 1   go to SUNY Downstate, will not go to SUNY 

 2   Downstate?  And if not, what is the Senator's 

 3   understanding as to where those dollars will go?

 4                SENATOR LaVALLE:   Senator, the 

 5   restructuring says subject to the approval of the 

 6   Commissioner of Health, the director of the 

 7   Division of Budget.  And of course there's 

 8   involvement, as we talked, in the development of 

 9   the sustainability plan, the chancellor shall 

10   consult with labor representatives, community 

11   representatives, and other regional stakeholders.

12                So the answer to your question is 

13   that in the process of the sustainability plan, 

14   and ultimately the June 15th date where we have 

15   to start putting real money on the table to keep 

16   things operating, that could evolve.  So the 

17   answer is it could.  Not our role, by statute.  

18   Other individuals are delegated to make that 

19   responsibility, that plan, which is to keep the 

20   hospital fiscally viable so that it can operate 

21   as a public teaching hospital.

22                SENATOR SQUADRON:   Thank you.  On 

23   the bill.

24                ACTING PRESIDENT VALESKY:   Senator 

25   Squadron on the bill.


                                                               1393

 1                SENATOR SQUADRON:   This is deeply, 

 2   deeply concerning.  The bill is deeply 

 3   concerning.  Tonight's conversation only adds to 

 4   that concern.  We're talking about an entire 

 5   hospital system here with multiple campuses, one 

 6   of which is currently at risk of being shut down 

 7   within 90 days.  In fact, its employees have 

 8   received 90-day notices.  One that has gotten a 

 9   vote from the SUNY board to be shut down has not 

10   yet received approval from the Department of 

11   Health, and again, we will fight against that 

12   approval.

13                We're talking about a hospital 

14   system that's critical to Brooklyn, every one of 

15   its campuses.  The relationship with the medical 

16   school, as Senator Rivera and Senator Parker have 

17   both spoken about tonight.  We're talking about 

18   $400 million to $500 million of real estate and a 

19   hospital that has existed over 150 years nestled 

20   within a residential community.  

21                In fact, the largest buildings 

22   within that community which were allowed to be 

23   built because of the community benefit attached 

24   to the building of those buildings.  And we're 

25   having a conversation in which there is no 


                                                               1394

 1   knowledge as to the relationship between that 

 2   hospital and that campus, that $400 million to 

 3   $500 million.

 4                At what point would any member of 

 5   this Legislature recommend that we take 

 6   $500 million in state assets and say, to any 

 7   other entity, "Good luck, go on, do your best"?  

 8   Especially when those assets are linked to an 

 9   institution that, as Senator LaValle and Senator 

10   DeFrancisco and colleagues on my side of the 

11   aisle have so eloquently talked about, is at such 

12   serious risk at this moment.  It makes no sense 

13   at all.

14                Senator LaValle twice quoted a 

15   provision of Part Q of this bill and twice 

16   excised a key phrase:  "The chancellor shall, to 

17   the maximum extent practicable, allow for public 

18   comment and input from consumers of health 

19   services in the development of the plan."  None 

20   is required.  None, zero.  None.  

21                In Section 8 of the bill, it says:  

22   "Notwithstanding the provision of any law, rule 

23   or regulation to the contrary, a portion of such 

24   monies credited" -- those are dollars that SUNY 

25   gets -- "may be transferred to a State University 


                                                               1395

 1   account as requested by the State University 

 2   chancellor or his or her designee."  Do you know 

 3   what that means?  Not one dollar has to go to 

 4   protecting SUNY Downstate overall, not one dollar 

 5   of that $500 million of real estate.  

 6                You know what else?  Not one 

 7   community voice has to be listened to.  Not one 

 8   ounce of concern about the value for the 

 9   community if LICH shuts down has to be 

10   considered -- not by SUNY, not by the Executive.  

11                "Don't worry, the Legislature will 

12   have a say."  No, it won't.  There's no 

13   legislative input in this at all.  None.  

14                No community input, no legislative 

15   input, $500 million of real estate that the state 

16   paid for three years ago, $63 million -- not SUNY 

17   dollars, state HEAL grants -- as part of this 

18   merger, in addition to other aid and to all the 

19   Medicaid dollars that flow here.

20                This is simply unacceptable.  It's 

21   unacceptable for every corner of Brooklyn, from 

22   the heart of my district to central Brooklyn and 

23   across the state.  It's not acceptable that we 

24   would say "Good luck with Downstate, see ya 

25   later, we're done."  And that's what this bill 


                                                               1396

 1   does.  

 2                I urge every one of my colleagues to 

 3   vote against it in order to protect healthcare in 

 4   our state, in order to protect health education, 

 5   and in order to protect transparency and the 

 6   process by which we deal with state assets as a 

 7   legislature, as a legislative body.  

 8                And if none of that works, please 

 9   just briefly consider my district.  Consider the 

10   community that has playgrounds that exist and 

11   were promised as part of the development of this 

12   hospital.  Consider a community that depends on 

13   the emergency services and the other medical care 

14   that my community is able to get.  And consider 

15   if someone said to you $500 million of state 

16   assets in your community were going to be sold to 

17   the highest bidder with no regard for community 

18   input and no voice for your representatives.  

19                I urge a no vote on the entire 

20   bill.  Thank you, Mr. President.  

21                ACTING PRESIDENT VALESKY:   Thank 

22   you, Senator Squadron.

23                Senator Parker on the bill.

24                SENATOR PARKER:   Thank you, 

25   Mr. President.  On the bill.


                                                               1397

 1                There are two kinds of people in the 

 2   world.  There are people right now who are sick, 

 3   and then the rest of us who at some point are 

 4   going to be sick.  And the question is when the 

 5   rest of us get sick, is there going to be an 

 6   institution in our community that protects us?  

 7                There's frankly nothing more 

 8   important than your health.  Right?  Senator 

 9   Sampson likes to say "Your health is your 

10   wealth."  It's been the biggest conversation 

11   we've had in this country over the last four 

12   years as we've had a President who's made it his 

13   ambition to in fact do a healthcare plan that 

14   incorporates as many people as possible.  

15                And what do we do on the heels of 

16   that?  On the heels of that we come into a 

17   community that needs healthcare badly, and we gut 

18   it.  And I'm not even just talking about this 

19   bill.  We started with the Berger Commission six 

20   years ago, eight years ago.  That was the first 

21   Berger Commission.  Then we went to Berger II, 

22   because that wasn't enough, we hadn't cut enough 

23   then.  So instead of us looking and managing the 

24   process in which healthcare was changing in our 

25   state, we decided that we were going to go in and 


                                                               1398

 1   instead of, you know, using the scalpel, we 

 2   decided to use Berger and a hatchet.  And so, 

 3   willy-nilly, we started talking about closing 

 4   institutions.

 5                Mr. President, my objection to this 

 6   bill is about everything that it takes away from 

 7   our communities.  And I want to thank Senator 

 8   DeFrancisco and Senator LaValle for their work, 

 9   and obviously Senator Golden for his input and 

10   doggedness in terms of raising this to an issue.  

11   I don't blame them for this.  Because we knew 

12   this was a problem seven, eight months ago when 

13   the SUNY chair came to us and told us this was a 

14   problem.  

15                And almost immediately we reached 

16   out to the Governor and said "Let's have a 

17   meeting."  And up until this moment, I am yet to 

18   have a meeting with the Governor, and my 

19   colleagues are yet to have a meeting with the 

20   Governor to talk about this important issue.  

21                And I get that I'm not a chair of a 

22   committee and we're not in the majority.  But you 

23   know what?  My district is impacted by this 

24   hospital and by the medical school.  My 

25   constituents use that hospital and they go to the 


                                                               1399

 1   medical school.  The people who work at that 

 2   hospital and the medical school live in my 

 3   district.  

 4                And so how could you deny me and my 

 5   colleagues a conversation and then walk around 

 6   and act like this is a better process?  That's 

 7   what's so offensive.  Walk around like, you know, 

 8   all the dysfunction is gone.  Yeah, the 

 9   dysfunction is gone because you're getting an 

10   on-time budget and you're getting it three times 

11   in a row and you get to say, Yeah, you know, I 

12   did, you know, better than everybody else and, 

13   you know, everybody jump up and look at me 

14   because, you know, I can make everybody do what I 

15   want them to say.  

16                But this is not what democracy is 

17   about.  The whole process of this budget rips at 

18   the very fabric of our constitution, the very 

19   thing that's supposed to protect us and give our 

20   folks voice.  I'm not here because Kevin Parker 

21   is important.  I'm here because fortunately -- or 

22   unfortunately, depending on where you stand -- 

23   the people of the 21st Senatorial District 

24   thought that I was the best voice to come to 

25   Albany and represent them on issues.  I'm not 


                                                               1400

 1   standing here for me.  I'm standing here for the 

 2   318,000 people I represent.  And we have here a 

 3   document that takes away their right to be 

 4   involved in the process that affects their 

 5   healthcare.  

 6                We thought a number of years ago 

 7   that we were having a problem.  And understand, 

 8   the problems with private hospitals, 

 9   Mr. President, has been going on for a number of 

10   years.  We almost closed Wyckoff.  We had a 

11   significant problem at Brookdale.  Interfaith 

12   right now is about to close.  Brooklyn Hospital 

13   was about to close.  We closed Caledonia.  We 

14   closed St. Mary's.  You know, we closed private 

15   hospital after private hospital.  Then we saw 

16   Long Island College Hospital on the block and 

17   we're like, we can't let one more go down.  

18                We spoke to the folks at SUNY, we 

19   spoke to the folks at Downstate and said, "Look, 

20   is there something we could do to help?"  They 

21   said yes.  They said yes.  

22                Now, as you know, I'm a very smart 

23   man.  But I'll admit I don't know everything 

24   about hospitals and how they run, particularly 

25   hospital finance.  So when a director of the 


                                                               1401

 1   medical center says to me, "Yeah, we can do this, 

 2   we can figure this out and we can make the 

 3   economics work," a number of us in this chamber 

 4   said we should make it work because healthcare 

 5   anywhere in the borough of Brooklyn is good for 

 6   healthcare everywhere in the borough of 

 7   Brooklyn.  

 8                And we had learned both through our 

 9   experience on 9/11 and, you know, other things 

10   that had gone on that in emergencies you 

11   oftentimes don't have enough access to quality 

12   healthcare around the borough.  So we said yeah, 

13   let's do this.  It wasn't me or Senator Daniel 

14   Squadron, you know, crunching the numbers and 

15   figuring this out.  We got it from them.

16                 And in the audit that we've gotten 

17   now from the State Comptroller, we find out that 

18   the exact thing that was the problem was lack of 

19   oversight.  There wasn't enough oversight.  There 

20   wasn't enough oversight of SUNY, there wasn't 

21   enough oversight of Downstate Medical Center, of 

22   the hospital.  And we all agreed, when they made 

23   changes they came in and did the things that had 

24   to be done.  

25                All we've been asking here, 


                                                               1402

 1   Mr. Governor, is to be part of the process.  And 

 2   instead of being part of the process, you've cut 

 3   us out of the process even more by not giving us 

 4   enough money to figure this out and then saying, 

 5   Okay, I'm going to give you a truncated timetable 

 6   you have to come up with this plan -- oh, yeah, 

 7   and by the way, you're not involved in it as a 

 8   Legislature.  So forget the 318,000 people I 

 9   represent, the almost 320,000 that Senator Adams 

10   represents, the 316,000 people that Senator 

11   Sampson represents, the 320,000 people that 

12   Senator Montgomery represents, forget the 314,000 

13   people -- no, it's actually more than that, like 

14   322,000 people that Senator Dilan represents.  

15                Forget all of those people that we 

16   represent; you're going to make all the decisions 

17   by yourself.  That's how we got into this problem 

18   in the first place.  So instead of creating more 

19   oversight, we've created now less oversight over 

20   the same thing.  It has now, Mr. President, 

21   become the definition of insanity.  

22                And your solution is to privatize 

23   everything, when I just finished telling you the 

24   hospitals that are going out of business in 

25   Brooklyn are the private hospitals.  You can't 


                                                               1403

 1   make this up.  So all the private hospitals are 

 2   going out of business, so what do we do to 

 3   improve healthcare?  Privatize it.  And wonder 

 4   why people have government jokes.

 5                This does not even begin to address 

 6   the needs of the people in our community.  And 

 7   part of what everybody is not talking about here 

 8   is they're planning to lay off almost a thousand 

 9   people.  With the proposed closing of Long Island 

10   College Hospital, they have already put into 

11   effect laying off 500 people just at Long Island 

12   College Hospital, the vast majority of those 

13   being 1199 workers.  

14                In addition to that, with this 

15   proposal there will be upwards of 200 people laid 

16   off at Downstate Medical Center.  Somewhere, 

17   between 200, possibly up to 400 people laid off 

18   as a result.

19                So, you know, people want to vote 

20   for this, understand that you're voting to take 

21   away the jobs of somewhere between 600 to 900 

22   people in Brooklyn.  That's not a vote I can 

23   take.  Not when there are alternatives.  Not 

24   when, for $150,000, we can figure this out.  You 

25   have that much in HEAL money sitting around right 


                                                               1404

 1   this minute.  

 2                So you can decide that the 

 3   fourth-largest employer in Brooklyn is too big to 

 4   fail, Mr. Governor, and say I'm going to take all 

 5   the HEAL money, I'm going to give it to 

 6   Downstate, let's save the hospital, let's work on 

 7   this together, let's have a collaborative 

 8   process.  In the same way that we didn't have a 

 9   collaborative process doing the entire budget, 

10   there was no collaborative process talking about 

11   Downstate.

12                And then we want to talk about how 

13   great the government is working.  It works better 

14   when at least there's a conversation.  We had a 

15   problem last year with Kingsboro, and this is 

16   what part of what surprised me.  We had a problem 

17   with Kingsboro Psychiatric Center last year, and 

18   we went to the Governor and said we had a 

19   problem.  

20                We met with the Governor 

21   bipartisanly, and not just Brooklyn.  It was 

22   Brooklyn, it was Staten Island, it was Democrats, 

23   it was Republicans.  And we had like four or five 

24   meetings, and we worked the issues at Kingsboro 

25   Psychiatric Center.  Which I thought was a much 


                                                               1405

 1   more difficult situation.  

 2                I'm floored that the Governor and 

 3   his staff could not find a way to bring people 

 4   into a room and figure out a collaborative 

 5   process to in fact help Downstate get through 

 6   this.  And instead what we get is more of the 

 7   same.  It's political bullying after legislative 

 8   bullying after political bullying.

 9                Mr. President, Downstate contributes 

10   $1.3 billion to the state economy.  That's a lot 

11   of money.  Are we ready to let that go?  Are we 

12   ready just to tell all of these health workers 

13   that they no longer can go to a school?  Because 

14   again, without a teaching hospital, you're not 

15   going to have a medical school.  

16                And as much as I know that I think 

17   that Chairman and Chairman LaValle were involved 

18   in this process and they think this is the right 

19   thing to do, they both have SUNY hospitals in 

20   their districts.  And if this proposal was on 

21   your hospital, Senator LaValle, or this proposal 

22   was on Senator DeFrancisco's hospital, in 

23   Upstate, you wouldn't be voting for this.  I 

24   can't imagine that you would vote for this 

25   proposal for your own hospital.  I'm certainly 


                                                               1406

 1   not going to vote for it for mine.  

 2                And I'm asking my colleagues an 

 3   accommodation, and to vote no on this budget.  

 4   Let's go back to the drawing board, let's fix 

 5   this.  Because Downstate is too big to fail.

 6                ACTING PRESIDENT VALESKY:   Thank 

 7   you, Senator Parker.  

 8                Senator Golden on the bill.

 9                SENATOR GOLDEN:   Thank you, 

10   Mr. President.

11                I stand to express my support for 

12   this year's state budget.  I want to thank my 

13   colleagues Senator LaValle and Senator Hannon for 

14   their commitment to SUNY and to healthcare.  

15                And it's the conference here and the 

16   Republican Conference and the IDC and the Senate 

17   Democratic leadership that will in fact fight to 

18   make sure that there is public healthcare here in 

19   the State of New York.

20                This budget holds the line on taxes 

21   and controls spending.  And both of these 

22   measures are critical to New York's economic 

23   health and continues to move our state forward.  

24   This budget sends a clear and strong message of 

25   New York's commitment to job creation.  


                                                               1407

 1                And as chair of the Senate Select 

 2   Committee on Science, Technology, Incubation and 

 3   Entrepreneurship, I am excited that we will be 

 4   expanding incubator development throughout this 

 5   state.  These incubators will allow inventors and 

 6   small business people to make their visions a 

 7   reality while creating jobs and increasing our 

 8   state's local tax bases.  This budget provides 

 9   real opportunity to small business.  And I am 

10   pleased that we're able to save the Brooklyn 

11   HealthWorks program, which helped over 1,000 

12   small businesses get healthcare.  

13                This budget helps create growth 

14   through the extension of the film tax credit for 

15   five more years.  And it also puts $942 million 

16   into education across this state.  This budget 

17   restores prescription drug consumer choice for 

18   lifting a mandate to fill prescriptions via mail 

19   order if the prices are the same at your 

20   neighborhood pharmacy.

21                We have taken many steps forward on 

22   behalf of many New Yorkers with this year's state 

23   budget, but our work is not done.  We should not 

24   consider this budget finished or complete by any 

25   means.  This is not a time for the Senate or the 


                                                               1408

 1   Assembly to pat themselves on the back for 

 2   completing a state budget on time for the third 

 3   year in a row.  Our work is not yet done.

 4                Ask any senior citizen if our job is 

 5   done.  Ask any parent or child with special needs 

 6   if our job is done.  Ask any doctor or nurse who 

 7   works at SUNY Downstate if our job is done.  They 

 8   will give you the same answer as I am going to 

 9   give you now, and that answer is no.

10                I am voting to support this budget.  

11   I do not consider negotiations on this document 

12   over.  In the days and weeks ahead, I will work 

13   with the members of both the Senate and the 

14   Assembly, I will work with the advocates of the 

15   healthcare professionals to revisit and discuss 

16   the funding agreements for the budget for the 

17   Office for People With Developmental Disabilities 

18   and for the State University of New York at 

19   Downstate.

20                But we need to do more than talk.  

21   We need to pull together and achieve real 

22   results.  To thousands of New Yorkers, this 

23   budget runs the risk of breaking up families and 

24   bankrupting homes.  I, for one, pledge to you now 

25   that I will not ignore the plight of New Yorkers 


                                                               1409

 1   with special needs.  This chamber has a long and 

 2   proud tradition of caring for our most vulnerable 

 3   New Yorkers, from State Senator William Conklin, 

 4   who sat right here in this body, and in 1958 he 

 5   started the Guild for Exceptional Children in 

 6   Brooklyn.  And Senator Frank Padavan, who in 1976 

 7   authored the Padavan Law that allowed for group 

 8   homes in our communities.  

 9                We owe it to these great statesmen 

10   to continue the tradition of caring for those who 

11   cannot care for themselves.  I will not ignore 

12   the needs of the employees and the patients of 

13   SUNY Downstate.  

14                And I challenge my colleagues, 

15   everyone in this chamber, to continue the work we 

16   are starting now with the passage of this year's 

17   state budget and join with me in finding 

18   practical, realistic, responsible solutions to 

19   these problems.  These are not situations that 

20   will go away, and we cannot for one minute allow 

21   these New Yorkers -- our friends, our neighbors 

22   and our families -- to be forgotten just because 

23   of the passage of these bills.  

24                I will be voting aye on this bill, 

25   Mr. President, and hopefully we'll get a 


                                                               1410

 1   resolution to Downstate and to those who are the 

 2   most needy across this great state, our 

 3   developmentally disabled.

 4                Thank you, Mr. President.

 5                ACTING PRESIDENT VALESKY:   Thank 

 6   you, Senator Golden.

 7                Senator Adams on the bill.

 8                SENATOR ADAMS:   Thank you, 

 9   Mr. President.  

10                I want to thank Senator Golden for 

11   his support around the Downstate issue.  And I'm 

12   just going to be brief.  And I agree with both 

13   Senator Golden and Senator LaValle.  You know, 

14   this is a very important issue, particularly when 

15   you look at that district where the people that 

16   use the hospital, Downstate Hospital and Long 

17   Island College Hospital, which covers central 

18   Brooklyn as well as Cobble Hill, Red Hook, with 

19   LICH.  

20                In the central Brooklyn area, you 

21   know, one out of five that people that live in 

22   that area are living in poverty.  Two out of five 

23   are on Medicaid.  And when you see the need, 

24   that's why you probably see so much passion 

25   around this issue.


                                                               1411

 1                And so I'm hoping that we can move 

 2   forward and continue the fight as both Senator 

 3   LaValle and Senator Golden indicated, that we 

 4   have to ensure that the hospital remains open.

 5                I'm concerned, and when you look at 

 6   the bill to remove the Comptroller, the 

 7   Comptroller out of the process of procurement, 

 8   that raises a concern for me.  I'm concerned that 

 9   when you allow the one year of emergency 

10   procurement process, that there are not a lot of 

11   safeguards in place.  And that's part of the 

12   problem on why we're here in the first place, 

13   because some of those safeguards were not 

14   followed.  

15                And I'm concerned that the numbers 

16   that were thrown out by Senator Squadron and 

17   Senator LaValle was $500,000 for LICH, but I'm 

18   hearing the numbers towards between $700,000 to a 

19   billion dollars for that property.  I know that 

20   area very well.  I patrolled that area as a 

21   police officer, and I saw it turn the corner.  I 

22   realize that it is a very attractive and 

23   lucrative real estate in the Borough of 

24   Brooklyn.  

25                So the question becomes we should 


                                                               1412

 1   all be part of the conversation.  I'm encouraged 

 2   when Senator Golden stated that the next step is 

 3   to be inclusive and ensure that all those who are 

 4   impacted by the decision of what's going to 

 5   happen to Downstate, it should be a conversation 

 6   that we should all be a part of.

 7                One thing is for sure.  The 

 8   sustainability study, I don't see a final comment 

 9   on what happens with the sustainability study.  

10   Are we saying the hospital is not going to 

11   close?  And I don't think that's laid out in the 

12   bill after the sustainability study is done of 

13   what happens at the conclusion of that.

14                We need Downstate.  We need 

15   Downstate not only to be an effective hospital 

16   and to turn the corner, but we also need it 

17   because of what it produces.  It produces a 

18   quality product.  The number of healthcare 

19   professionals that leave Downstate, they don't 

20   flee, they remain inside the Borough of Brooklyn 

21   and provide much needed services.  

22                And I think we can't dismiss what 

23   Senator Parker stated.  We're creating a model.  

24   That model cannot only impact Downstate, but it 

25   can impact Upstate when you look at Syracuse 


                                                               1413

 1   Hospital.  It can impact Long Island when you 

 2   look at Stony Brook.  So the model that we're 

 3   creating is a model that can be duplicated and 

 4   impact all of us that know how important it is to 

 5   have a hospital in our districts that's going to 

 6   provide a vital service.  

 7                So I'm not comfortable with the 

 8   language of the bill.  I'm comfortable with the 

 9   conversation that came from both my colleagues 

10   who were intimately involved in how this is going 

11   to shake out.  I'm going to vote no on the bill, 

12   but I'm going to participate, yes, in organizing 

13   with both Senator LaValle, Senator Golden, 

14   Senator Stavisky and my colleagues who represent 

15   both LICH and both Downstate, so we can come to 

16   some form of a solution that we won't lose these 

17   hospitals, because they provide a vital service.  

18                Thank you, Mr. President.  

19                ACTING PRESIDENT VALESKY:   Thank 

20   you, Senator Adams.

21                Senator Peralta on the bill.

22                SENATOR PERALTA:   Thank you, 

23   Mr. President.

24                The gutting of SUNY Downstate and 

25   the march toward hospital privatization are 


                                                               1414

 1   travesties.  And that's what several of my 

 2   colleagues have been addressing tonight.  But I'd 

 3   like to discuss a budget item that appears not to 

 4   have made the final version, standard wages for 

 5   nursing home workers.  

 6                This commonsense measure would have 

 7   helped create a smooth transition to a 

 8   managed-care system.  It would have ensured 

 9   quality care for vulnerable and ailing seniors 

10   who need and deserve the best we can give them.  

11   It would have helped make sure that our seniors 

12   can forge stable, long-term relationships with 

13   caregivers that they know and trust, which has 

14   been shown to demonstrably improve their quality 

15   of life.  

16                It would have served to prevent the 

17   kind of high staff turnover that jeopardizes the 

18   quality of care and even the very safety of 

19   nursing home residents.  It also would have made 

20   certain that the hardworking and dedicated 

21   individuals who care for our seniors are paid a 

22   fair wage sufficient to keep them on the job.

23                Mr. President, we're not talking 

24   about people who are getting rich, we're talking 

25   about individuals who do vitally important but 


                                                               1415

 1   often thankless jobs in exchange for an average 

 2   of just over $30,000 a year.  This provision did 

 3   not require these workers to be paid 

 4   exorbitantly; in fact, it didn't even specify a 

 5   dollar amount at all.  All it did was ask the 

 6   Commissioners of Labor and Health to make an 

 7   informed annual determination as to what standard 

 8   wage would be needed to "ensure the retention of 

 9   a qualified workforce capable of providing 

10   high-quality care to the residents of nursing 

11   homes."  Best of all, we could have had all these 

12   benefits for seniors and workers without an extra 

13   dime in Medicaid spending.

14                Now, here's the interesting part, 

15   Mr. President.  Unlike some other provisions that 

16   I would have liked to see in this budget, this 

17   was actually already in the Governor's proposal.  

18   And you know what?  I'm pretty sure it wasn't the 

19   Assembly who fought to get it out of the 

20   proposal, because they included it in their 

21   one-house budget.  So according to basic 

22   deductive reasoning, the only answer is that the 

23   majority members of this chamber decided not to 

24   help our seniors and the people who dedicate 

25   their lives for caring for them.  


                                                               1416

 1                Who decided that a race to the 

 2   bottom was preferable to ensuring a qualified 

 3   workforce?  I can't even begin to guess the 

 4   reasons why they expended political capital to 

 5   make sure this was removed from the budget.  But 

 6   I can tell you that this decision was absolutely 

 7   wrong.  Our seniors and our workers deserve 

 8   better.  

 9                So I agree with Senator Golden when 

10   he says our job is not done.  And that's why I'm 

11   voting nay on this bill and I'm asking all my 

12   colleagues to do the same.  

13                Thank you.

14                ACTING PRESIDENT VALESKY:   Thank 

15   you, Senator Peralta.  

16                Senator Tkaczyk on the bill.

17                SENATOR TKACZYK:   Thank you, 

18   Mr. President.  Would the sponsor yield to a few 

19   questions in the mental health, OASAS, and 

20   developmental disabilities portion of the 

21   budget.  

22                ACTING PRESIDENT VALESKY:   Hold for 

23   one moment, Senator.

24                Senator DeFrancisco, do you yield to 

25   Senator Tkaczyk?


                                                               1417

 1                SENATOR DeFRANCISCO:   Yes.

 2                ACTING PRESIDENT VALESKY:   The 

 3   sponsor yields.

 4                SENATOR TKACZYK:   Thank you, 

 5   Mr. President.

 6                On Part A of the mental hygiene 

 7   Article 7 bill --

 8                SENATOR DeFRANCISCO:   Can you speak 

 9   up just a bit, please?  Thank you.

10                SENATOR TKACZYK:   On Part A of the 

11   mental hygiene budget there's a section related 

12   to prescriber prevails.  It says that language is 

13   included that requires managed-care providers to 

14   offer prescriber prevails for prescription drugs 

15   in the antidepressant, antiretroviral, 

16   antirejection, seizures, epilepsy, endocrine, 

17   hematologic and immunologic therapeutic classes.  

18                My question is, the antidepressants 

19   are included.  Are antipsychotics also included 

20   in this?

21                SENATOR DeFRANCISCO:   Yes.

22                SENATOR TKACZYK:   Yes, they are.  

23   Even though they're not listed, they are 

24   included?  Through you.

25                SENATOR DeFRANCISCO:   You said Part 


                                                               1418

 1   A?  

 2                SENATOR TKACZYK:   Yes.

 3                SENATOR DeFRANCISCO:   Yes, it's my 

 4   understanding that they are included.  If I can 

 5   find the bill, that would be helpful.  (Pause.)

 6                Okay, there's a little confusion -- 

 7   may I answer?

 8                ACTING PRESIDENT VALESKY:   Yes.

 9                SENATOR DeFRANCISCO:   There's a 

10   little confusion.  The Governor chose to 

11   eliminate provider prevails, and that was 

12   rejected.  So we're the same as we were before 

13   this year.  In other words, existing law is still 

14   in effect.

15                SENATOR TKACZYK:   Okay, thank you.

16                Will the sponsor yield for another 

17   question.

18                SENATOR DeFRANCISCO:   Yes.

19                ACTING PRESIDENT VALESKY:   Senator 

20   DeFrancisco yields.

21                SENATOR TKACZYK:   Thank you.  

22                The bill also includes seizure and 

23   epilepsy medications that are allowed to be 

24   prescribed as written.  As you probably know, 

25   many patients with depression and bipolar 


                                                               1419

 1   disorder, for example, receive a regimen of 

 2   medications.  Many are receiving these 

 3   medications in combination with their 

 4   antipsychotic and/or antidepressants, quote, 

 5   unquote, off-label prescriptions of antiseizure 

 6   or epilepsy drugs.  

 7                Is the off-label prescribing of 

 8   these medications to meet people's mental health 

 9   needs included in prescriber prevails?

10                SENATOR DeFRANCISCO:   All I can 

11   tell you, the law has not changed.  If they were 

12   included before this budget period, they're still 

13   included now.  I don't know chapter and verse 

14   what the former law was, all I know is that we 

15   wanted to change the Governor's recommendation 

16   with respect to provider prevails, and we did.  

17   So current law is still in existence.

18                SENATOR TKACZYK:   Thank you.  

19                Will the sponsor yield for another 

20   question?

21                SENATOR DeFRANCISCO:   Yes.

22                ACTING PRESIDENT VALESKY:   The 

23   sponsor yields.

24                SENATOR TKACZYK:   This is on Part H 

25   on the mental health bill that covers the 


                                                               1420

 1   Community Mental Health Reinvestment Act.  The 

 2   budget includes an extension of the Community 

 3   Mental Health Support and Workforce Reinvestment 

 4   Program.  

 5                We currently have 2800 beds in 17 

 6   psychiatric facilities.  So during the course of 

 7   the coming fiscal year, if there is a bed 

 8   reduction -- a few beds, a floor, a unit -- what 

 9   will happen to those savings?  Will they go into 

10   community mental health services?

11                SENATOR DeFRANCISCO:   That's an 

12   academic question, if I understood it correctly, 

13   because there's no additional beds authorized to 

14   be closed in this budget.

15                So the question if it were closed 

16   what would happen, I don't think -- it can't 

17   happen, since we didn't authorize any more bed 

18   reductions.

19                SENATOR TKACZYK:   Will the sponsor 

20   continue to yield.

21                SENATOR DeFRANCISCO:   Yes.

22                ACTING PRESIDENT VALESKY:   The 

23   sponsor yields.

24                SENATOR TKACZYK:   It's my 

25   understanding that we're still in the process of 


                                                               1421

 1   downsizing 2800 beds.  And we may not have a 

 2   facility close, but we could potentially see a 

 3   few beds or a unit or a floor close and be 

 4   downsized.  And each of these beds costs the 

 5   state about $370,000 per year.  

 6                So my question is, if we for example 

 7   have 20 beds, 20 out of 2800 close this year, we 

 8   could potentially save $7.4 million.  

 9   Theoretically, if that happens, how much of that 

10   money would go through to the Community 

11   Reinvestment Act to community mental health 

12   services?

13                SENATOR DeFRANCISCO:   It would be 

14   100 percent in the following fiscal year that the 

15   closure took place.

16                SENATOR TKACZYK:   So any beds we 

17   closed this year would -- we would recover?  

18                SENATOR DeFRANCISCO:   The monies 

19   would go back in the community the following 

20   fiscal year.

21                SENATOR TKACZYK:   Okay.  Thank 

22   you.  Will the sponsor continue to yield.

23                SENATOR DeFRANCISCO:   Sure.

24                ACTING PRESIDENT VALESKY:   The 

25   sponsor yields.


                                                               1422

 1                SENATOR TKACZYK:   Under Part N, the 

 2   human services COLA, how many years have we been 

 3   deferring the human services COLA.

 4                SENATOR DeFRANCISCO:   Four or five 

 5   years.

 6                SENATOR TKACZYK:   Thank you.  

 7                Would the sponsor continue to yield 

 8   for another question.

 9                SENATOR DeFRANCISCO:   Yes.

10                ACTING PRESIDENT VALESKY:   The 

11   sponsor yields.

12                SENATOR TKACZYK:   There's another 

13   part in the budget that covers OASAS.  We have 

14   expanded access to gambling across the state in 

15   the last few years, and our racinos are among the 

16   most successful in the country.  Do we have in 

17   this budget any additional funding for compulsive 

18   and problem gambling?  

19                SENATOR DeFRANCISCO:   No, not any 

20   additional money.

21                SENATOR TKACZYK:   Thank you.  

22                Would the sponsor continue to 

23   yield?  

24                SENATOR DeFRANCISCO:   Yes.

25                ACTING PRESIDENT VALESKY:   The 


                                                               1423

 1   sponsor yields.

 2                SENATOR TKACZYK:   Regarding the 

 3   developmental disabilities portion of the budget, 

 4   at the budget hearings we discussed with the 

 5   Commissioner the potential impact of a 6 percent 

 6   cut that was proposed by the Governor.  She could 

 7   not explain what impact that cut would have on 

 8   the developmental disabilities providers.  

 9                This budget includes a 4.5 percent 

10   cut.  What is the impact on the developmental  

11   disability providers under that cut?

12                SENATOR DeFRANCISCO:   What effect?  

13   It depends on how the cut takes place.  

14                I think the Governor's intent is to 

15   try to make sure it only occurs in the 

16   administrative costs of the system, as opposed to 

17   direct patient care, because the reason the money 

18   had to be cut to pay back the federal government 

19   for overpayments, one of the main things cited 

20   was salaries of hundreds of thousands of dollars, 

21   in some cases $500,000 to some of the operators.  

22                So we tried, by the way, in the 

23   Senate and the Assembly budgets both, to restore 

24   the entire amount, but the Governor felt that 

25   that would not be the right thing to do since it 


                                                               1424

 1   would almost be showing that we were not taking 

 2   seriously our violations in the past.

 3                So, to me, he would like to do -- 

 4   there's several things he mentioned, was reducing 

 5   provider administrative costs, achieving 

 6   administrative efficiencies, pursuing audit 

 7   recoveries of misuse of funds by providers, 

 8   providing alternative payment models, services 

 9   and programming to improve or transform 

10   services.  

11                So he's trying to reform how the 

12   delivery is made rather than simply ignoring the 

13   fact that we had to pay back the federal 

14   government because we did not do things properly 

15   in this area in the budget.

16                SENATOR TKACZYK:   Will the sponsor 

17   continue to yield.

18                SENATOR DeFRANCISCO:   Yes.

19                ACTING PRESIDENT VALESKY:   The 

20   sponsor yields.

21                SENATOR TKACZYK:   Is there any 

22   language in this budget that describes how those 

23   cuts will be implemented?  Specifically.

24                SENATOR DeFRANCISCO:   There are 

25   references to the cuts in the Aid to Localities 


                                                               1425

 1   bill which will be coming up tomorrow.

 2                (Laughter.)

 3                SENATOR TKACZYK:   Will the sponsor 

 4   continue to yield?  

 5                SENATOR DeFRANCISCO:   Yes.

 6                ACTING PRESIDENT VALESKY:   The 

 7   sponsor yields.

 8                SENATOR TKACZYK:   Before we get to 

 9   tomorrow, is there -- I would like to know if you 

10   have any response to what is the impact this cut 

11   will have on the provider communities.  

12                SENATOR DeFRANCISCO:   Well, I can 

13   tell you it's 4.5 percent.  How that affects an 

14   individual provider, I don't know the answer to 

15   that.  But we will be -- I'll try to look into it 

16   more carefully when we get to the Aid to 

17   Localities bill to see if I can get a more 

18   precise response for you.

19                SENATOR TKACZYK:   Thank you.  

20                On the bill, Mr. President.

21                ACTING PRESIDENT VALESKY:   Senator 

22   Tkaczyk on the bill.

23                SENATOR TKACZYK:   I would like to 

24   share with the chamber how these cuts will affect 

25   the OPWDD provider community in my district.  


                                                               1426

 1                In Albany County, a recent census of 

 2   Albany County shows we have 1,808 people served 

 3   by the Medicaid-funded OPWDD programs.  Medicaid 

 4   services paid for in 2012 was $74.8 million.  

 5   This 4.5 percent cut means they will lose 

 6   $3.4 million.  Combine that with the elimination 

 7   of the 2 percent the COLA, it will cost them 

 8   $1.5 million this year, as it did last year and 

 9   the year before.  For the 2013-2014 fiscal year, 

10   Albany County developmental disability providers 

11   and the people they serve will lose $4.8 million 

12   in funds this year in this budget.  

13                In Greene County, 188 people are 

14   served by OPWDD programs.  Medicaid services paid 

15   for was $7.3 million.  This will 4.5 percent cut 

16   means they will lose $327,000.  The elimination 

17   of the 2 percent COLA will cost them $140,000 

18   this year, as it did last year and the year 

19   before.  So for the 2013-2014 fiscal year, Greene 

20   County providers and the people they serve will 

21   lose $473,000 in this budget.

22                Montgomery County.  The census shows 

23   429 people served in Medicaid-funded OPWDD 

24   programs.  The services paid for in 2012 was 

25   $21 million.  This 4.5 percent cut means they 


                                                               1427

 1   will lose almost a million dollars.  The 

 2   elimination of the 2 percent COLA will cost them 

 3   $432,000.  So for the 2013-2014 fiscal year, 

 4   Montgomery County providers and the people they 

 5   serve will lose $1.43 million in funds this 

 6   year.  

 7                In Schenectady County, 1,219 people 

 8   served in Medicaid-funded OPWDD programs.  

 9   Medicaid services paid for was $49.6 million.  

10   This 4.5 percent cut means they will lose 

11   $2.2 million.  The elimination of the 2 percent 

12   COLA will cost them almost a million, as it did 

13   last year and the year before.  So for 2013-2014, 

14   Schenectady providers and the people they serve 

15   will lose $3.2 million in funds this year in this 

16   budget.

17                In Ulster County, almost 825 people 

18   are served.  They are getting services of 

19   $338 million.  This will 4.5 percent cut means 

20   they will lose $1.77 million.  The 2 percent COLA 

21   will cost them $770,000.  And so for the 

22   2013-2014 fiscal year, Ulster County providers 

23   and the people they serve will lose $2.5 million 

24   in funds this year.

25                These are real cuts.  These impact 


                                                               1428

 1   real people, real providers, real jobs.  And we 

 2   still don't have the answers on how is this going 

 3   to impact the people we're serving in this 

 4   agency, in this budget, in this state.  These are 

 5   people who rely on us to care for them.  We have 

 6   to make sure we are not hurting our ability to 

 7   care for people who have no other option.  We 

 8   need to make sure we're covering the services and 

 9   the group homes that keep these people in an 

10   environment that we think is one that sustains 

11   their quality of life.

12                I will be voting no on this budget 

13   bill.  Thank you.  

14                ACTING PRESIDENT VALESKY:   Thank 

15   you, Senator Tkaczyk.  

16                Senator Stavisky.

17                SENATOR STAVISKY:   Thank you, 

18   Mr. President.  

19                First, let me be very clear:  I was 

20   not part of the negotiations on this bill.  

21   However, I do appreciate the discussions that I 

22   had with Senator LaValle.  The information that I 

23   received, quite frankly, is what I read in the 

24   newspapers.  

25                But let me just be very, very brief 


                                                               1429

 1   and say that there are several parts of this bill 

 2   that have me troubled.  

 3                Number one obviously is the future 

 4   not just of Downstate but of SUNY and medical 

 5   education in New York State.  Because if SUNY 

 6   Downstate has a problem today, tomorrow I'm 

 7   afraid it may well be Upstate and Stony Brook.

 8                Secondly, these are problems 

 9   involving our educational institutions but also 

10   the healthcare delivery system in the State of 

11   New York.  And I come from a county that has lost 

12   many hospitals in the last four or five years.  

13   We are terribly underbedded.  And I don't want to 

14   see this extend to other parts of the state.

15                The SUNY re -- it's not a 

16   restructuring of SUNY, as I see it; it's more a 

17   dismemberment.  We're putting SUNY Downstate into 

18   a separate class.  And privatization is one area 

19   that's already been discussed.  But I am troubled 

20   by the lack of accountability in the whole 

21   restructuring or the whole dismemberment process, 

22   the lack of competitive bidding.  All of these 

23   issues I think are a problem.

24                The other reason I am going to vote 

25   against this bill is the lack of support for the 


                                                               1430

 1   developmentally disabled, the people with 

 2   developmental disabilities.  The 6 percent cut is 

 3   unconscionable and absolutely must be reversed.  

 4                Thank you, Mr. President.

 5                ACTING PRESIDENT VALESKY:   Thank 

 6   you, Senator Stavisky.

 7                Senator Krueger.

 8                SENATOR KRUEGER:   Thank you.

 9                It's hard to imagine not all the 

10   questions were asked, but I would like to ask a 

11   question of the sponsor.

12                ACTING PRESIDENT VALESKY:   Senator 

13   DeFrancisco, do you yield?  

14                SENATOR DeFRANCISCO:   Yes.

15                ACTING PRESIDENT VALESKY:   The 

16   sponsor yields.

17                SENATOR KRUEGER:   Thank you.

18                Through you, Mr. President, is there 

19   a section in this bill that creates a basic 

20   health plan, a BHP, in New York State?  Because 

21   there's been several studies showing that if we 

22   were to establish the basic health plan, we would 

23   potentially be saving the State of New York 

24   between $467 million and a billion dollars in the 

25   next several years.  And that New York basic 


                                                               1431

 1   health plan would assure that people between 139 

 2   and 200 percent of poverty could be eligible for 

 3   benefits under the ACA, provide lawful immigrants 

 4   from zero to 200 percent of poverty to be able to 

 5   participate, and an estimated 617,000 enrollees 

 6   in New York State could be provided healthcare 

 7   benefits in New York State while we were 

 8   collecting 95 percent of a premium subsidy from 

 9   the federal government.

10                So does this bill have in it the 

11   establishment of a basic health plan?  

12                SENATOR DeFRANCISCO:   No.  It's 

13   optional by the federal government.  There's a 

14   work group that's called for under this budget 

15   bill to study whether we should do that or not.

16                SENATOR KRUEGER:   I want to thank 

17   the sponsor.  

18                On the bill.

19                ACTING PRESIDENT VALESKY:   Senator 

20   Krueger on the bill.

21                SENATOR KRUEGER:   So many people 

22   pointed out so many issues over the last several 

23   hours about reasons not to support this bill.  

24   But I do throw in at this late hour the fact that 

25   originally a basic health plan was supposed to be 


                                                               1432

 1   part of this budget bill.  And in fact, New York 

 2   State is several years behind the ball of where 

 3   we should be in maximizing our opportunities to 

 4   draw down federal money and ensuring that as many 

 5   people as possible get health insurance in 

 6   New York State.  

 7                But when you realize that New York 

 8   State's savings could be between $467 million and 

 9   nearly $1 billion, citing two studies, one by the 

10   Community Service Society and one by the Urban 

11   Institute in Washington -- the Urban Institute 

12   only being half a billion, Community Service 

13   Society being nearly a billion -- that when we 

14   talk about all these things we're cutting -- 

15   services for people with developmental 

16   disabilities, closing of critical hospital core 

17   services in the borough of Brooklyn, an inability 

18   to explain how we're actually going to fund the 

19   second year of a new created fund to try to get 

20   us through the first year -- and yet for all the 

21   things we're doing in this bill that people have 

22   argued so articulately do great harm to our 

23   communities, specifically special-need and 

24   low-income communities, we're not taking 

25   advantage of an ability to increase our savings 


                                                               1433

 1   and maximize money to provide healthcare to 

 2   people, we're studying it.  

 3                Except it's already been studied to 

 4   death.  We don't need to study it, we should do 

 5   it.  And then maybe we would have less arguments 

 6   over what we have to cut because we don't have 

 7   the money.

 8                So I could tell you there are things 

 9   in this bill I like, and I do.  And I can tell 

10   you some people have raised, Well, how could you 

11   vote against a bill that implies you're voting 

12   against all this healthcare funding in the State 

13   of New York, because of course there is funding 

14   for healthcare in this bill.  But there are so 

15   many mistakes.  

16                And I can't be more articulate than 

17   my colleagues already have been.  But we could 

18   have done better.  And in fact on some key 

19   issues, we did better in the original bill and 

20   then it was pulled out by my colleagues in the 

21   Senate.  And on other critical issues, we forgot 

22   to ask the people in the communities who will be 

23   most impacted.  

24                So for me, it's actually pretty 

25   easy, Mr. President.  I can't vote yes on this 


                                                               1434

 1   bill.  I'll vote no.  

 2                Thank you.

 3                ACTING PRESIDENT VALESKY:   Thank 

 4   you, Senator Krueger.

 5                Seeing no other Senators who wish to 

 6   be heard, the debate is closed.  

 7                The Secretary will ring the bells.  

 8   Senators are asked to proceed immediately to the 

 9   chamber so that we may move forward with the roll 

10   call.

11                Read the last section.

12                THE SECRETARY:   Section 3.  This 

13   act shall take effect immediately.

14                ACTING PRESIDENT VALESKY:   Call the 

15   roll.

16                (The Secretary called the roll.)

17                ACTING PRESIDENT VALESKY:   Senator 

18   Dilan to explain his vote.

19                SENATOR DILAN:   Yes, 

20   Mr. President.  I rise to indicate that I voted 

21   no on this bill because I cannot vote for a bill 

22   that authorized giving away Long Island College 

23   Hospital to SUNY without legislative involvement 

24   or oversight on an asset that's estimated to be 

25   worth anywhere from $500 million to a billion 


                                                               1435

 1   dollars.  Without this involvement, I cannot vote 

 2   for this bill.  This is not acceptable.

 3                Further, I cannot vote for this bill 

 4   because I believe it's just the first step to the 

 5   closure of the Downstate Medical Center and/or 

 6   its privatization.  

 7                For these reasons, I vote no.

 8                ACTING PRESIDENT VALESKY:   Senator 

 9   Dilan to be recorded in the negative.

10                Senator Gipson to explain his vote.

11                SENATOR GIPSON:   Thank you, 

12   Mr. President.  

13                I will be voting no on this bill.  

14   This is the health and mental hygiene bill.  This 

15   is the bill where we are supposed to be helping 

16   all the people in this state that are in 

17   desperate need of our help.  And instead what we 

18   are doing, because of the bad decisions that were 

19   clearly made in this bill, is we are sucking the 

20   lifeblood out of those who need our help the 

21   most.  

22                This is a vampire bill.  It is now 

23   two minutes after midnight.  There is no reason 

24   we should be here this late.  Certainly voting on 

25   a bill that is so important to all the people of 


                                                               1436

 1   this state, I cannot bring myself to vote any 

 2   other way than no.  

 3                Thank you, Mr. President.

 4                ACTING PRESIDENT VALESKY:   Senator 

 5   Gipson to be recorded in the negative.

 6                Announce the results.

 7                THE SECRETARY:   In relation to 

 8   Calendar Number 276, those recorded in the 

 9   negative are Senators Adams, Addabbo, Avella, 

10   Breslin, Dilan, Espaillat, Gianaris, Gipson, 

11   Hassell-Thompson, Hoylman, Kennedy, Krueger, 

12   Latimer, Montgomery, O'Brien, Parker, Peralta, 

13   Perkins, Rivera, Sampson, Sanders, Serrano, 

14   Squadron, Stavisky, Stewart-Cousins and Tkaczyk.

15                Ayes, 34.  Nays, 26.

16                ACTING PRESIDENT VALESKY:   The bill 

17   is passed.

18                Senator Libous, that completes the 

19   controversial reading of Senate Supplemental 

20   Calendar 26A.

21                SENATOR LIBOUS:   Mr. President, is 

22   there any other business that the Senate must 

23   take up on this legislative day?  

24                ACTING PRESIDENT VALESKY:   There is 

25   none.


                                                               1437

 1                SENATOR LIBOUS:   There being no 

 2   further business that the Senate may conduct on 

 3   March 26th, and pursuant to Senate rule -- can I 

 4   have some order, Mr. President?

 5                ACTING PRESIDENT VALESKY:   

 6   (Gaveling.)

 7                SENATOR LIBOUS:   -- and pursuant to 

 8   Senate Rule 6, Section 2, I move that we adjourn 

 9   until Wednesday, March 27th, at 12:06, at which 

10   time we will take up the remaining budget bills.

11                ACTING PRESIDENT VALESKY:   All in 

12   favor of adjourning until Wednesday, March 27, at 

13   12:06 --

14                SENATOR LIBOUS:   12:06 a.m.

15                ACTING PRESIDENT VALESKY:   -- at 

16   12:06 a.m., signify by saying aye.

17                (Response of "Aye.")

18                ACTING PRESIDENT VALESKY:   Opposed, 

19   nay.

20                (Response of "Nay.")

21                ACTING PRESIDENT VALESKY:   The 

22   motion is accepted.

23                The Senate stands adjourned until 

24   Wednesday, March 27th, at 12:06 a.m., at which 

25   time we will take up the remaining budget bills.


                                                               1438

 1                (Whereupon, at 12:04 a.m., the 

 2   Senate adjourned.)

 3

 4

 5

 6

 7

 8

 9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25