Regular Session - January 21, 2015

                                                                   161

 1               NEW YORK STATE SENATE

 2                          

 3                          

 4              THE STENOGRAPHIC RECORD

 5                          

 6                          

 7                          

 8                          

 9                  ALBANY, NEW YORK

10                  January 21, 2015

11                     12:22 p.m.

12                          

13                          

14                  REGULAR SESSION

15  

16  

17  

18  SENATOR JOSEPH GRIFFO, Acting President

19  FRANCIS W. PATIENCE, Secretary

20  

21  

22  

23  

24  

25  


                                                               162

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

 2                ACTING PRESIDENT GRIFFO:   The 

 3   Senate will come to order.  

 4                I ask all present to please rise 

 5   and join with me as we recite the Pledge of 

 6   Allegiance to our Flag.

 7                (Whereupon, the assemblage recited 

 8   the Pledge of Allegiance to the Flag.)

 9                ACTING PRESIDENT GRIFFO:   In the 

10   absence of clergy, I ask that we all bow our 

11   heads in a moment of silent prayer and 

12   reflection.

13                (Whereupon, the assemblage 

14   respected a moment of silence.)

15                ACTING PRESIDENT GRIFFO:   The 

16   reading of the Journal.

17                THE SECRETARY:   In Senate, 

18   Tuesday, January 20th, the Senate met pursuant 

19   to adjournment.  The Journal of Sunday, 

20   January 18th, was read and approved.  On motion, 

21   Senate adjourned.

22                ACTING PRESIDENT GRIFFO:   Without 

23   objection, the Journal stands approved as read.

24                Presentation of petitions.

25                Messages from the Assembly.


                                                               163

 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 LaValle.

 8                SENATOR LaVALLE:   Mr. President, 

 9   on behalf of Senator Marcellino, on page 

10   number 4 I offer the following amendments to 

11   Calendar Number 11, Senate Print Number 1314, 

12   and ask that said bill retain its place on the 

13   Third Reading Calendar.

14                ACTING PRESIDENT GRIFFO:   The 

15   amendments are received, and the bill shall 

16   retain its place on Third Reading.

17                SENATOR LaVALLE:   Mr. President, I 

18   move that the following bill be discharged from 

19   its respective committee and be recommitted with 

20   instructions to strike the enacting clause.  

21   That's Senate 1482, on behalf of myself.

22                ACTING PRESIDENT GRIFFO:   It is so 

23   ordered.  

24                Senator LaValle.

25                SENATOR LaVALLE:   Mr. President, 


                                                               164

 1   pursuant to Rule 8, Section C, Senator Skelos 

 2   hands up the following alternate committee 

 3   members for January 21, 2015, and asks that such 

 4   assignments be filed with the Journal.

 5                ACTING PRESIDENT GRIFFO:   So 

 6   ordered and so filed.

 7                Senator LaValle.

 8                SENATOR LaVALLE:   There will be an 

 9   immediate meeting of the Rules Committee in 

10   Room 332.

11                ACTING PRESIDENT GRIFFO:   There 

12   will be an immediate meeting of the Rules 

13   Committee in Room 332.

14                Senator LaValle, will we continue 

15   with resolutions and introductions?

16                SENATOR LaVALLE:   Mr. President, 

17   with unanimous consent, I'd like to recognize 

18   Senator Espaillat to address the body.

19                ACTING PRESIDENT GRIFFO:   Without 

20   objection, Senator Espaillat will be recognized.  

21                However, I'd ask everyone to move 

22   quietly to -- the members of the Rules Committee 

23   who will be meeting in Room 332.

24                I'd ask the chamber to please come 

25   to order for the purposes of recognizing 


                                                               165

 1   Senator Espaillat.

 2                Senator Espaillat.

 3                SENATOR ESPAILLAT:   Thank you, 

 4   Mr. President.  I rise to welcome a group of 

 5   distinguished New Yorkers that are here today 

 6   with us once again.  Every year for the last 

 7   18 years, they come before us, the State 

 8   Legislature, to recognize Juan Pablo Duarte, who 

 9   was the founding member of the Dominican 

10   Republic.  He's our founding father.  And today 

11   they celebrate his legacy.  And also this week 

12   they've held events throughout the City of 

13   New York and the State of New York recognizing 

14   the legacy of Juan Pablo Duarte.  And this 

15   initiates Dominican Heritage Month, which starts 

16   in February.  And they come every year.  

17                We have with us Cesar Romero, who is 

18   the president of the Instituto Duartiano.  He's 

19   with us today.  Also from the Dominican General 

20   Consul, we have two vice-consuls, Gregorio Malena 

21   and Nelson Pimentel.  And also three other 

22   members of the Instituto Duartiano:  Teresa 

23   Cuevas, Felix Grant, and Ramona Terrero-Santos.  

24                So they come every year.  We have a 

25   resolution on the floor recognizing this 


                                                               166

 1   important event, the 202nd anniversary of 

 2   Juan Pablo Duarte Day here in New York State.  So 

 3   thank you, Mr. President, for allowing me to 

 4   introduce them, and I hope that they are extended 

 5   the courtesies of this house.  

 6                Thank you so much.

 7                ACTING PRESIDENT GRIFFO:   Thank 

 8   you, Senator Espaillat.  

 9                Senator Díaz.

10                SENATOR DIAZ:   Thank you, 

11   Mr. President.  

12                I rise just to join my colleague 

13   Senator Espaillat in welcoming my friends from 

14   the Dominican Republic and the president of the 

15   Instituto Duartiano, Mr. Cesar Romero, and Teresa 

16   Cuevas, Felix Grant, and Ramona Terrero-Santos, 

17   Gregorio Malena, and Nelson Pimentel.  

18                These are leaders of the community, 

19   these are members of our community that have 

20   distinguished themselves fighting and creating 

21   and maintaining the Dominican culture in our 

22   state and our city.  Today I'm honored to welcome 

23   them and honored to join Senator Espaillat.  

24                And by the way, I don't know if you 

25   know that the new census, the new census says 


                                                               167

 1   that more Dominicans reside now in the Bronx than 

 2   in Manhattan.  So on behalf of the people of the 

 3   Bronx and the residents of the 32nd Senatorial 

 4   District that I represent, I welcome them.  And 

 5   knowing that from now on the big family of the 

 6   Bronx is now the Bronx salsarengue, they call it.  

 7   The Bronx is now the county of the salsa and the 

 8   merengue, calling it salsarengue.  

 9                So {in Spanish}.

10                ACTING PRESIDENT GRIFFO:   Is there 

11   any other member that wishes to speak?

12                (No response.)

13                ACTING PRESIDENT GRIFFO:   Well, we 

14   want to thank Senator Espaillat and we want to 

15   extend our warmest courtesies to the members of 

16   the Dominican delegation that are here from the 

17   consul general's office, from the institute.  

18                Thank you so much for being here 

19   today.  We appreciate your presence, and we 

20   welcome you to these chambers.  Bienvenido.

21                (Applause.)

22                ACTING PRESIDENT GRIFFO:   Senator 

23   Skelos.

24                SENATOR SKELOS:   Mr. President, if 

25   we could stand at ease pending the return of the 


                                                               168

 1   Rules Committee.

 2                ACTING PRESIDENT GRIFFO:   The 

 3   Senate will stand at ease pending the return of 

 4   the Rules Committee.

 5                (Whereupon, the Senate stood at ease 

 6   at 12:29 p.m.)

 7                (Whereupon, the Senate reconvened at 

 8   12:52 p.m.)

 9                ACTING PRESIDENT GRIFFO:   The 

10   Senate will come to order.  

11                Senator LaValle.

12                SENATOR LaVALLE:   Mr. President, 

13   may we return to reports of standing committees.

14                ACTING PRESIDENT GRIFFO:   We will 

15   return to reports of standing committees.

16                Senator LaValle.

17                SENATOR LaVALLE:   I believe there's 

18   a report of the Rules Committee at the desk.

19                ACTING PRESIDENT GRIFFO:   There is 

20   a report of the Rules Committee before the desk.  

21                The Secretary will read.

22                THE SECRETARY:   Senator Skelos, 

23   from the Committee on Rules, reports the 

24   following bills:  

25                Senate Print 1172, by Senator 


                                                               169

 1   Seward, an act to amend Chapter 324 of the Laws 

 2   of 2014;

 3                Senate 1514, by Senator Griffo,  an 

 4   act to amend the Social Services Law; 

 5                Senate 1515, by Senator Nozzolio, an 

 6   act to amend the Education Law; 

 7                Senate 1516, by Senator Griffo, an 

 8   act to amend the General Business Law; 

 9                Senate 1517, by Senator Felder, an 

10   act to amend the Social Services Law; 

11                Senate 1518, by Senator Felder, an 

12   act to amend the Social Services Law; 

13                Senate 1519, by Senator Gallivan, an 

14   act to amend Chapter 329 of the Laws of 2009; 

15                Senate 1692, by Senator Ortt, an act 

16   to amend Chapter 332 of the Laws of 2014; 

17                Senate 1693, by Senator Hannon, an 

18   act to amend the Public Health Law; 

19                Senate 1694, by Senator Ranzenhofer, 

20   an act to amend Chapter 439 of the Laws of 2008; 

21                Senate 1695, by Senator Marchione, 

22   an act to amend Chapter 429 of the Laws of 2014; 

23                Senate 1697, by Senator Griffo, an 

24   act to amend the General Business Law; 

25                Senate 1698, by Senator Ranzenhofer, 


                                                               170

 1   an act to amend Chapter 154 of the Laws of 1921; 

 2                Senate 1790, by Senator Seward, an 

 3   act to amend the Real Property Tax Law; 

 4                Senate 1806, by Senator Ortt, an act 

 5   to amend the Executive Law; 

 6                Senate 1807, by Senator Gallivan, an 

 7   act to amend the Executive Law; 

 8                Senate 1808, by Senator Griffo, an 

 9   act to amend the Banking Law; 

10                Senate 1809, by Senator Valesky, an 

11   act to amend the Agriculture and Markets Law; 

12                Senate 1810, by Senator Valesky, an 

13   act to amend the Agriculture and Markets Law;

14                And Senate 1976, by Senator Golden, 

15   an act to amend the Tax Law.

16                All bills reported direct to third 

17   reading.

18                ACTING PRESIDENT GRIFFO:   Senator 

19   LaValle.

20                SENATOR LaVALLE:   Mr. President, I 

21   move we accept the report of the Rules Committee.

22                ACTING PRESIDENT GRIFFO:   The Rules 

23   Committee report is the before the house.  All in 

24   favor signify by saying aye.

25                (Response of "Aye.")


                                                               171

 1                ACTING PRESIDENT GRIFFO:   Opposed?  

 2                (No response.)

 3                ACTING PRESIDENT GRIFFO:   The 

 4   report is accepted.

 5                Senator LaValle.

 6                SENATOR LaVALLE:   Mr. President, on 

 7   the noncontroversial calendar I'd like to bring 

 8   up Calendar Number 17, by Senator Golden, 

 9   Senate Print 1976.

10                ACTING PRESIDENT GRIFFO:   The 

11   Secretary will read Calendar Number 17, Bill 

12   1976.  The Secretary will read.

13                THE SECRETARY:   Calendar Number 17, 

14   by Senator Golden, Senate Print 1976, an act to 

15   amend the Tax Law.

16                SENATOR GIANARIS:   Lay it aside.

17                ACTING PRESIDENT GRIFFO:   Lay it 

18   aside.

19                Senator LaValle, that completes the 

20   request of the reading noncontroversially of Bill 

21   Number 1976.

22                SENATOR LaVALLE:   Mr. President, 

23   can we now move forward with the controversial 

24   reading of Calendar Number 17 by Senator Golden.

25                ACTING PRESIDENT GRIFFO:   The 


                                                               172

 1   Secretary will ring the bell.  

 2                The Secretary will read.

 3                THE SECRETARY:   Calendar Number 17, 

 4   by Senator Golden, Senate Print 1976, an act to 

 5   amend the Tax Law.

 6                ACTING PRESIDENT GRIFFO:   Senator 

 7   Gianaris, why do you rise?

 8                SENATOR GIANARIS:   Mr. President, I 

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

10   that the reading of the amendment be waived and 

11   that I may be heard on the amendment.

12                ACTING PRESIDENT GRIFFO:   Senator 

13   Gianaris, there is an amendment before the desk.  

14   Upon review of the amendment, in accordance with 

15   Rule 6-4(b), I rule the amendment nongermane.

16                SENATOR GIANARIS:   Mr. President, 

17   I'd like to appeal the decision of the chair and 

18   ask that I be heard on the appeal.

19                ACTING PRESIDENT GRIFFO:   Senator 

20   Gianaris, you may be heard on the appeal of the 

21   chair.

22                SENATOR GIANARIS:   Thank you, 

23   Mr. President.  

24                The amendment I'm putting forth is 

25   directly germane to the underlying bill because 


                                                               173

 1   it deals with the critical issue of funding our 

 2   schools.  And the bill put forward by Senator 

 3   Golden would provide public monies for private 

 4   schools, charter schools, as well as other 

 5   institutions, but our public schools have been 

 6   suffering due to being starved of funding over 

 7   the last several years due to the Gap Elimination 

 8   Adjustment.  

 9                This amendment would repeal the Gap 

10   Elimination Adjustment, thus providing an extra 

11   billion dollars of funding to our public schools 

12   so that they will not be harmed if and when 

13   Senator Golden's proposal gets enacted by having 

14   public monies diverted to private institutions.

15                I don't think there's a member in 

16   this chamber who is not familiar with the needs 

17   of our school districts and the fact that they've 

18   been damaged by lack of funding.  There is a CFE 

19   decision that has been hovering over this state 

20   for many years that has yet to be adhered to in 

21   the budgets that we have been passing.  

22                And so, Mr. President, I believe 

23   that this is germane because it deals directly 

24   with the issue we're dealing with today.  It 

25   would provide our public schools with the funding 


                                                               174

 1   they do need so that we can then adequately 

 2   consider whether to also provide public monies 

 3   for other institutions of learning.  

 4                Thank you, Mr. President.

 5                ACTING PRESIDENT GRIFFO:   Thank 

 6   you, Senator Gianaris.  

 7                The vote will be on the ruling of 

 8   the chair, a procedural vote.  So all those in 

 9   favor of overruling the chair signify by saying 

10   aye.

11                (Response of "Aye.")

12                ACTING PRESIDENT GRIFFO:   Opposed?  

13                Senator Gianaris.  

14                SENATOR GIANARIS:   Show of hands, 

15   please.

16                ACTING PRESIDENT GRIFFO:   May we 

17   have a show of hands of those who favor 

18   overruling the chair.

19                (Show of hands.)

20                ACTING PRESIDENT GRIFFO:   

21   Mr. Secretary?  

22                THE SECRETARY:   Ayes, 23.

23                ACTING PRESIDENT GRIFFO:   The 

24   ruling of the chair stands.

25                The bill before the house is 


                                                               175

 1   Calendar Number 17.  The Secretary will read the 

 2   last section.

 3                THE SECRETARY:   Section 12.  This 

 4   act shall take effect immediately.

 5                ACTING PRESIDENT GRIFFO:   Call the 

 6   roll.

 7                (The Secretary called the roll.)

 8                ACTING PRESIDENT GRIFFO:   Senator 

 9   Krueger.

10                SENATOR KRUEGER:   I'm sorry, I 

11   would like the sponsor to yield to some 

12   questions, please, Mr. President.

13                ACTING PRESIDENT GRIFFO:   Sorry, 

14   Senator Krueger, we will allow that.

15                Senator Krueger has the floor.  

16                SENATOR KRUEGER:   Will the sponsor 

17   yield?

18                ACTING PRESIDENT GRIFFO:   Senator 

19   Golden, do you yield?

20                SENATOR GOLDEN:   Yes, I do, 

21   Mr. President.

22                ACTING PRESIDENT GRIFFO:   Senator 

23   Krueger.

24                SENATOR KRUEGER:   Thank you, 

25   Mr. President.  


                                                               176

 1                SENATOR LaVALLE:   Mr. President.

 2                ACTING PRESIDENT GRIFFO:   Senator 

 3   LaValle, why do you rise?

 4                SENATOR LaVALLE:   I think if we 

 5   need to go forward, we would have to withdraw the 

 6   roll call.  We were on a roll call.

 7                ACTING PRESIDENT GRIFFO:   Yes, 

 8   Senator LaValle, that is accurate.  Sorry for 

 9   that.  We had some issue at the desk.  

10                So we'll withdraw the roll call.  

11   And the bill is before the house controversial.  

12   Senator Krueger has the floor.  She's asked 

13   Senator Golden to yield.  Senator Golden has 

14   agreed to yield.

15                Senator Krueger.

16                SENATOR KRUEGER:   Thank you, 

17   Mr. President.

18                If the sponsor could tell me how 

19   much this would cost the state in the following 

20   three years, I believe it's 2016, 2017, and 2018.

21                SENATOR GOLDEN:   I believe the bill 

22   is structured as a tax credit, and the tax credit 

23   would cost approximately $150 million the first 

24   year, $225 million the second, and in the last 

25   year $300 million.


                                                               177

 1                SENATOR KRUEGER:   Through you, 

 2   Mr. President, if the sponsor would continue to 

 3   yield.

 4                SENATOR GOLDEN:   I do, 

 5   Mr. President.

 6                ACTING PRESIDENT GRIFFO:   The 

 7   sponsor yields.

 8                SENATOR KRUEGER:   Thank you.  

 9                So we have a bill that will cost us 

10   well over $600 million or perhaps $700 million 

11   over three years.  Unlike other tax credits, how 

12   will you apply to get this tax credit?  Do you 

13   simply file your taxes and check off a box on 

14   your taxes?

15                SENATOR GOLDEN:   They would have to 

16   file an application with Tax & Finance, and that 

17   would be the start of the tax credit.  And that's 

18   what makes this different than the other tax 

19   credits.

20                SENATOR KRUEGER:   Through you, 

21   Mr. President, if the sponsor would continue to 

22   yield.

23                ACTING PRESIDENT GRIFFO:   The 

24   sponsor yields.

25                SENATOR GOLDEN:   Yes.


                                                               178

 1                SENATOR KRUEGER:   What criteria 

 2   does Tax & Finance use to decide Liz who's 

 3   applied can get a tax credit, but Marty who's 

 4   applied can't get a tax credit?  What's the 

 5   process there?

 6                SENATOR GOLDEN:   In the first 

 7   month, January, all the applications would be 

 8   submitted.  And there are two phases.  That would 

 9   be Phase 1.  Phase 2 would be February through 

10   December 31.  Phase 1 would have to be notified 

11   that they've received the tax credit by 

12   February 20th.  After February 1st, they would be 

13   notified within five business days.

14                SENATOR KRUEGER:   Through you, 

15   Mr. President, if the sponsor would continue to 

16   yield.

17                SENATOR GOLDEN:   I do.

18                ACTING PRESIDENT GRIFFO:   The 

19   sponsor yields.

20                SENATOR KRUEGER:   So it's a first 

21   come, first serve?  Or is there a basis for Tax & 

22   Finance to say no?  Or is it the biggest get or 

23   the littlest get?  How is that determined?  

24                SENATOR GOLDEN:   It would be first 

25   come, first serve, except for the first month.  


                                                               179

 1   And if the first month it exceeded the cap, then 

 2   they would be prorated.

 3                SENATOR KRUEGER:   Through you, 

 4   Mr. President, if the sponsor will continue to 

 5   yield.

 6                SENATOR GOLDEN:   I do.

 7                ACTING PRESIDENT GRIFFO:   The 

 8   sponsor yields.

 9                SENATOR KRUEGER:   Thank you.  

10                So this bill seems to differ from 

11   earlier versions in that it is not a committee or 

12   organization authorized by the state or through 

13   the Regents who determine what these monies are 

14   used for.  Will the sponsor please explain to me 

15   what the process will be for -- let's say Liz 

16   gets a tax credit -- for Liz deciding where that 

17   money goes?

18                SENATOR GOLDEN:   The DTF would, 

19   upon notification to the person applying for the 

20   tax credit, would be sending that tax credit to 

21   the school, whether it would be a public or 

22   private or parochial school, and they would be 

23   notified that that has been accepted.  That could 

24   go to a public school, a public school district, 

25   school improvement organization, local education 


                                                               180

 1   funds, or the educational scholarship 

 2   organizations, who would make the determinations 

 3   on how that money would be spent.

 4                SENATOR KRUEGER:   Through you, 

 5   Mr. President, if the sponsor would continue to 

 6   yield.

 7                SENATOR GOLDEN:   I do, 

 8   Mr. President.

 9                ACTING PRESIDENT GRIFFO:   The 

10   sponsor yields.

11                SENATOR KRUEGER:   So the taxpayer 

12   getting approved for the credit doesn't determine 

13   what school or what purpose this tax credit is 

14   used for?

15                SENATOR GOLDEN:   When they make 

16   their application to Department of Tax & Finance, 

17   they appropriately mention which group they would 

18   want to send that money to -- which school, which 

19   district, which educational scholarship 

20   organization, which local education fund, and 

21   what school improvement organization.

22                SENATOR KRUEGER:   Through you, 

23   Mr. President, if the sponsor would continue to 

24   yield.

25                SENATOR GOLDEN:   I do, 


                                                               181

 1   Mr. President.

 2                ACTING PRESIDENT GRIFFO:   The 

 3   sponsor yields.

 4                SENATOR KRUEGER:   So the taxpayer 

 5   can get permission to not pay taxes but to take 

 6   that amount of money and say where they would 

 7   wish that to go, and then through that 

 8   organization it gets sent to that school, that 

 9   scholarship fund, that educational activity; is 

10   that correct?  

11                SENATOR GOLDEN:   That's the same 

12   way credits work now, yes, Mr. President.

13                SENATOR KRUEGER:   Through you, 

14   Mr. President, if the sponsor would continue to 

15   yield.

16                SENATOR GOLDEN:   I do, 

17   Mr. President.

18                ACTING PRESIDENT GRIFFO:   The 

19   sponsor yields.

20                SENATOR KRUEGER:   Your response was 

21   that's the way credits work now.  What credit 

22   model do we have in law in New York State that 

23   works like that now?  

24                SENATOR GOLDEN:   -- makes a 

25   determination on how those tax monies are going 


                                                               182

 1   to be spent and other organizations as well.

 2                SENATOR KRUEGER:   Through you, 

 3   Mr. President, perhaps I didn't understand.  What 

 4   agency now determines where your preapproved tax 

 5   credit is being sent, under current law?  

 6                SENATOR GOLDEN:   There is none.  

 7   There is none that's -- where it is actually -- 

 8   you have the Economic Development, which makes 

 9   determinations as to where that money will be 

10   spent going forward.  This is a tax credit from 

11   an individual or a corporation.  That money is 

12   given to Department of Tax -- the application is 

13   made to the Department of Tax & Finance, and they 

14   will send that application to the school, school 

15   district improvement organization, or the local 

16   education fund or educational scholarship 

17   organization.  And the Excelsior credits work 

18   like that as well.

19                SENATOR KRUEGER:   Through you, 

20   Mr. President, if the sponsor would continue to 

21   yield.

22                SENATOR GOLDEN:   Yes, I do, 

23   Mr. President.

24                ACTING PRESIDENT GRIFFO:   The 

25   sponsor yields.


                                                               183

 1                SENATOR KRUEGER:   Thank you.  

 2                How large a credit might an 

 3   individual, a corporation or an LLC be eligible 

 4   for under this law per year?

 5                SENATOR GOLDEN:   Up to a million 

 6   dollars for a corporation, minus 10 percent for 

 7   costs.

 8                SENATOR KRUEGER:   Sorry, I didn't 

 9   hear him, excuse me.  Minus 10 percent --

10                ACTING PRESIDENT GRIFFO:   Would you 

11   repeat that, Senator Golden?  

12                SENATOR GOLDEN:   Up to a million 

13   dollars, which would be a million-one.  There 

14   is -- the million would go for the tax credit and 

15   10 percent would be used for administration.

16                SENATOR KRUEGER:   Through you, 

17   Mr. President, I just want to make sure I'm 

18   reading the bill right.  The way I read the bill, 

19   it can be up to a million dollar tax credit but 

20   no more than 90 percent of what you actually owe 

21   the state.  Am I reading it correctly or 

22   incorrectly?

23                SENATOR GOLDEN:   Yes, you are 

24   reading it correctly, Senator Krueger.

25                SENATOR KRUEGER:   Thank you.  And 


                                                               184

 1   through you, Mr. President, if the sponsor would 

 2   continue to yield.

 3                SENATOR GOLDEN:   Yes, I do, 

 4   Mr. President.

 5                ACTING PRESIDENT GRIFFO:   The 

 6   sponsor yields.

 7                SENATOR KRUEGER:   And it's 

 8   regardless of whether I'm an individual or a 

 9   corporation or an LLC, the same rule would apply?  

10                SENATOR GOLDEN:   Yes.

11                SENATOR KRUEGER:   Through you, 

12   Mr. President, if the sponsor would continue to 

13   yield.

14                SENATOR GOLDEN:   Yes, 

15   Mr. President.

16                ACTING PRESIDENT GRIFFO:   The 

17   sponsor yields.

18                SENATOR KRUEGER:   And the sponsor 

19   answered a question that I hadn't asked yet, but 

20   perhaps he was reading my mind, when he talked 

21   about $1.1 million.  Is he referencing a 

22   calculation of the fact that when you get a 

23   million-dollar tax deduction, 100 percent tax 

24   deduction in New York State, the way this bill is 

25   written you would even get a kickback back from 


                                                               185

 1   the federal government to increase the value of 

 2   your tax deduction above and beyond the 

 3   $1 million?  Does the sponsor agree with me on 

 4   that analysis? 

 5                SENATOR GOLDEN:   This is a state 

 6   tax return, which has nothing to do with the 

 7   federal tax return.  There is -- it's a 

 8   nonrefundable tax credit.

 9                SENATOR KRUEGER:   Through you, 

10   Mr. President, if the sponsor would continue to 

11   yield.

12                SENATOR GOLDEN:   I do, 

13   Mr. President.

14                ACTING PRESIDENT GRIFFO:   The 

15   sponsor yields.

16                SENATOR KRUEGER:   So when the 

17   sponsor earlier said the $1.1 million, what did 

18   he mean?  

19                SENATOR GOLDEN:   Ninety percent of 

20   1.1 million is 1 million.

21                SENATOR KRUEGER:   Through you, 

22   Mr. President, if the sponsor would continue to 

23   yield.

24                SENATOR GOLDEN:   Yes, 

25   Mr. President.


                                                               186

 1                ACTING PRESIDENT GRIFFO:   The 

 2   sponsor yields.

 3                SENATOR KRUEGER:   Thank you.

 4                It is correct this is a state bill.  

 5   But would the sponsor agree with me that the way 

 6   the federal charitable deductions are calculated, 

 7   you could also be eligible to apply this for 

 8   federal deductions as if it is a charitable 

 9   contribution even though it is a 100 percent tax 

10   credit?  

11                SENATOR GOLDEN:   No, they would 

12   have to add that back, Mr. President, at the 

13   state level, and they would not be able to 

14   double-dip, if that is the question.

15                SENATOR KRUEGER:   Through you, 

16   Mr. President, if the sponsor would continue to 

17   yield.

18                SENATOR GOLDEN:   I do, 

19   Mr. President.  

20                ACTING PRESIDENT GRIFFO:   The 

21   sponsor yields.

22                SENATOR KRUEGER:   So actually I 

23   think it's two questions.  And thank you, 

24   sponsor, for answering the next follow-up 

25   question.  


                                                               187

 1                So I actually believe that the way 

 2   this is designed, you could actually draw down a 

 3   federal reimbursement on giving the tax credit 

 4   money to this educational entity such that on 

 5   your million-dollar contribution, up to 

 6   90 percent of your total's tax bill in the state, 

 7   you would also get federal money back, making 

 8   your contribution worth up to $1.1 million to 

 9   you.

10                But I believe that the sponsor's 

11   last answer was to the next question.  He must 

12   have my questions in advance.  Previous versions 

13   of this bill deny the taxpayer's ability to claim 

14   both a New York State itemized deduction and a 

15   New York State tax credit simultaneously when 

16   filing their return, so the taxpayer could only 

17   claim either the credit or an itemized charitable 

18   deduction, but not both.

19                Where in this bill does it prevent 

20   the double-dipping?  Can I get the citation of 

21   the section of the bill that would prevent that 

22   double-dipping?  

23                SENATOR GOLDEN:   The Department of 

24   Taxation & Finance would deny that.

25                SENATOR KRUEGER:   Through you, 


                                                               188

 1   Mr. President, if the sponsor would continue to 

 2   yield.

 3                SENATOR GOLDEN:   Yes, 

 4   Mr. President.

 5                ACTING PRESIDENT GRIFFO:   The 

 6   sponsor yields.

 7                SENATOR KRUEGER:   They would only 

 8   deny it if there's a section of this bill saying 

 9   it can't be done both ways.  Can I find the 

10   reference in the bill language that says you may 

11   not take both credits?

12                SENATOR GOLDEN:   Section 8, 

13   Senator Krueger.

14                (Pause.)

15                ACTING PRESIDENT GRIFFO:   Senator 

16   Krueger?  

17                SENATOR KRUEGER:   I'm just reading 

18   Section 8.  "The amount of any federal deduction 

19   for contributions made for which a taxpayer 

20   claims a credit."  That's federal deduction, 

21   Mr. President.

22                To clarify my question, what in this 

23   law prevents you from counting it twice in your 

24   state taxes?  

25                SENATOR GOLDEN:   In both Section 3 


                                                               189

 1   and Section 8, the federal deduction is added 

 2   back to the state.

 3                SENATOR KRUEGER:   I'm just looking 

 4   for section 3, Mr. President.

 5                Through you, Mr. President, that 

 6   section also references federal tax code and the 

 7   IRS.  So my question is for state tax purposes, 

 8   what would prevent you from double-dipping to 

 9   claim it as a credit under this law and also as a 

10   charitable deduction under New York State 

11   charitable deduction law?  

12                SENATOR GOLDEN:   It reads as it is 

13   in the document.  You have to add back the 

14   federal deduction.  I can't make it -- it's right 

15   there in black and white.

16                SENATOR KRUEGER:   Through you, 

17   Mr. President.  The federal law --

18                ACTING PRESIDENT GRIFFO:   Senator 

19   Krueger, are you on the bill or are you still 

20   asking questions?  

21                SENATOR KRUEGER:   I think I'm on 

22   the bill.  I'll go back to questions, thank you.

23                ACTING PRESIDENT GRIFFO:   Senator 

24   Krueger on the bill.

25                SENATOR KRUEGER:   Under federal tax 


                                                               190

 1   law, there are various deductions you are allowed 

 2   to take.  Under state tax law, there are various 

 3   deductions you are allowed to take.  I agree with 

 4   the sponsor, in these two sections it references 

 5   what you can and cannot do vis-a-vis applying it 

 6   with your federal taxes.  But my question was 

 7   where is the section of this bill that prevents 

 8   you from simultaneously claiming this new credit 

 9   and also itemizing it for charitable deduction 

10   purposes under New York State charitable 

11   deduction law?  There may be many examples where 

12   the feds do or don't let you do something and the 

13   state does or doesn't let you do something under 

14   our tax obligation law.

15                Through you, Mr. President, having 

16   clarified, may I ask the sponsor again to yield?  

17                ACTING PRESIDENT GRIFFO:   Senator 

18   Golden, do you yield?

19                SENATOR GOLDEN:   If I can, I will 

20   gladly yield.  But the federal tax is added back 

21   to the state -- to the federal -- they're not 

22   allowed to get both deductions.  And it's obvious 

23   in the bill.  And that's the way it is, that we 

24   start with the federal tax, then we go to the 

25   state tax.  Federal tax takes the deduction, you 


                                                               191

 1   get to the state tax, you will not be allowed to 

 2   take the federal and the state at the same time.

 3                Yes, Mr. President.

 4                ACTING PRESIDENT GRIFFO:   Senator 

 5   Krueger.

 6                SENATOR KRUEGER:   Through you, 

 7   Mr. President, if the sponsor would continue to 

 8   yield.

 9                ACTING PRESIDENT GRIFFO:   The 

10   sponsor yields.

11                SENATOR GOLDEN:   I do.

12                SENATOR KRUEGER:   So there's 

13   discussion of this money being applied for 

14   scholarships to various schools.  What is the 

15   income limit of a child receiving a scholarship 

16   under this program?  

17                SENATOR GOLDEN:   Five hundred 

18   thousand dollars, Mr. President.

19                SENATOR KRUEGER:   Through you, 

20   Mr. President.  Do we know of any other programs 

21   in New York State where you can take a 

22   100 percent tax credit to -- a 100 percent 

23   exemption to get a tax credit up to a 

24   million dollars to give money to families who 

25   have $500,000 in income?  Can I have another 


                                                               192

 1   example from law?

 2                SENATOR GOLDEN:   Well, first of 

 3   all, Mr. President, if that's the question, 

 4   they're not giving it to families, they're giving 

 5   it to scholarship funds and to public school 

 6   districts.  And those public school districts and 

 7   those scholarship funds are giving it out to the 

 8   individuals that attend those facilities.  

 9                Now, I got to tell you, I added 

10   10,000 classroom seats into my district in the 

11   past 10 years.  And 10 years ago they told me 

12   that I would be okay today.  Well, guess what?  

13   I'm still, in District 20, one of the most 

14   severely overcrowded school districts in the 

15   city.  I don't have pre-K because I have no place 

16   to put it.  

17                Giving the options for people to 

18   make these donations to our organizations gives 

19   us the ability to reduce that overcrowding and to 

20   get pre-K into my schools and to get them across 

21   not just my district but across the districts 

22   from Brooklyn to Buffalo.

23                And there are a number of 

24   scholarships that are done up and down the State 

25   of New York, whether it's the $16 million in the 


                                                               193

 1   Children's Scholarship Fund, which has a limit of 

 2   $31,000 in income for 211 different schools, or 

 3   if it's the Bison Fund in Buffalo, with 1900 

 4   scholarships, or if it's the Brooklyn-Queens 

 5   Diocese with 14,000 students, where 70 percent of 

 6   the households are below the poverty line and 

 7   93 percent are minority and 36 percent are 

 8   non-Catholic.  It's remarkable what's going on 

 9   today in our Catholic schools with a 98 percent 

10   graduation rate.  

11                So we need to be able to reduce the 

12   overcrowding, get pre-K that was so important to 

13   all of us last year, it's definitely that 

14   important this year.  And when it came to 

15   funding, I believe we funded the most money that 

16   we've ever funded to city and state schools this 

17   last year.  And just in the city alone I think we 

18   gave $340 million for pre-K, $400 million for 

19   operating, another $108 million for after-school 

20   programs, on top of everything that we have done 

21   in the past, $22 billion.

22                So we believe that that is a good 

23   credit, that million-dollar tax credit for the 

24   so-called rich that you say, the corporations, 

25   and the $500,000 limit on the individual child.


                                                               194

 1                SENATOR KRUEGER:   Through you, 

 2   Mr. President, on the bill.

 3                ACTING PRESIDENT GRIFFO:   Senator 

 4   Krueger on the bill.

 5                SENATOR KRUEGER:   Well, I share the 

 6   sponsor's concern about the overcrowding in our 

 7   schools.  I think my school district is still 

 8   rated the second most overcrowded in the City of 

 9   New York.  We also don't have pre-K, and for a 

10   while we had kindergarten wait lists.  I think we 

11   might have resolved that.  

12                I agree we need more money for our 

13   educational systems.  I constantly argue for and 

14   support more money for education.  In fact, my 

15   conference attempted to propose a billion dollars 

16   additional money for education just today as an 

17   amendment to this bill coming to the floor.  

18                I don't believe the way to think 

19   we're getting money to education is to give 

20   enormous tax reductions and exemptions to the 

21   wealthiest taxpayers and hope they'll direct them 

22   to the neediest schools and the neediest 

23   children.  Because in fact research shows just 

24   the opposite.  

25                So basically we'll be allowing, over 


                                                               195

 1   three years, $700 million that would otherwise 

 2   come to us as tax revenue and potentially be used 

 3   to address the concerns of education and 

 4   high-needs districts all over the State of 

 5   New York.  We're taking that off our books so 

 6   that we can't spend it as the government is 

 7   supposed to determine the best use of tax dollars 

 8   are, and instead we're allowing I believe a 

 9   subuniverse of people who are the 

10   highest-income -- because they're going to need 

11   fancy tax accountants to make sure they get their 

12   applications in in January-February and follow 

13   up.  This is not the kind of tax deduction 

14   lower-income people get to take when they file 

15   their taxes.  

16                So we're going to allow the 

17   wealthiest New Yorkers to reduce their tax bill 

18   and to decide where they want to put the money, 

19   at the price of the State of New York not having 

20   $700 million over three years to provide for 

21   public education.  

22                This is a wolf in sheep's clothing.  

23   I do support more money for education.  I do 

24   recognize charitable giving is an important thing 

25   to support, ideologically and philosophically.  


                                                               196

 1   We have significant tax deductibility in our tax 

 2   code, federal and state.  But to jump from the 

 3   existing standard to up to a 100 percent 

 4   deduction for up to a million dollars to up to 

 5   90 percent of wiping out your tax bill, so that 

 6   you can decide where you want to put that money, 

 7   including charitable scholarships for families 

 8   who already have incomes up to $500,000 

 9   personally?  That's not charitable giving.  

10   That's tax avoidance, and allowing those with 

11   excess resources to be allowed to determine where 

12   tax money is going as opposed to the elected 

13   representatives of the State of New York.  

14                There is much we can do around the 

15   issue of funding education in this Legislature 

16   through the budget process, through our 

17   prioritizing the need for additional funds in 

18   high-needs areas of public education.  There are 

19   things we can do to address the educational needs 

20   within the parochial school system as long as it 

21   is done in a way that is not for religious 

22   teaching and meets the constitutional test of 

23   church and state separation.  

24                There's far more we can do, much 

25   better ways we can do it.  I would urge my 


                                                               197

 1   colleagues do not vote for this bill.  

 2                Thank you, Mr. President.  

 3                ACTING PRESIDENT GRIFFO:   Senator 

 4   Hoylman.

 5                SENATOR HOYLMAN:   On the bill.

 6                ACTING PRESIDENT GRIFFO:   Senator 

 7   Hoylman on the bill.

 8                SENATOR HOYLMAN:   You know, 

 9   Mr. President, one of our new colleagues asked 

10   earlier today why there wasn't a hearing on this 

11   bill before us.  You'd think a bill this 

12   momentous, important -- innovative, some might 

13   argue -- would be worthy of a public hearing, a 

14   discussion, a debate.  But no.

15                So I ask, Mr. President, how we are 

16   to expect the Governor or the other house to take 

17   this legislation seriously if we haven't fully 

18   vetted it.

19                And I oppose it, Mr. President, 

20   basically for two fundamental reasons, because I 

21   think it really undermines two great American 

22   traditions.  One is free universal public 

23   education.  And the second is I think this bill 

24   skirts very dangerously to violating separation 

25   of church and state.


                                                               198

 1                In terms of free universal public 

 2   education, I think it's pretty clear, 

 3   Mr. President, that this bill very well could 

 4   siphon off money from the General Fund that 

 5   arguably could be used in support of our 

 6   traditional public schools.

 7                We heard earlier that the Campaign 

 8   for Fiscal Equity, that decision that said every 

 9   New York kid deserves, is entitled to a sound, 

10   basic education, is $5 billion short.  Five 

11   billion dollars short.  Yet we're planning new 

12   tricks of the trade to siphon off that money and 

13   make certain that those kids don't get that 

14   $5 billion.

15                Secondly, you know, we as New 

16   Yorkers should respect each of our religious 

17   differences.  But I'm under no obligation, nor is 

18   anyone else here, to fund those differences.  And 

19   I think that's what this bill does.

20                Also, Mr. President, the bill 

21   doesn't help poor families send their kids to 

22   private schools or parochial schools or charter 

23   schools, it helps the funders of those entities 

24   out.  And it helps those funders even if they're 

25   corporations.


                                                               199

 1                So let's call it what it is, 

 2   Mr. President.  This is a corporate giveaway.  If 

 3   you're an LLC, if you're an S corporation, you 

 4   can get that 100 percent tax credit if you donate 

 5   not just to a private school, not just to a 

 6   charter school, but also parochial schools.

 7                And let's talk about the private 

 8   schools.  You've got your Brearleys, you've got 

 9   your Trinitys.  You've got Avenues, which is in 

10   my district.  Charges $40,000 a year for tuition, 

11   40,000, one of the most expensive in the nation.  

12   Well, if they set up the appropriate entity, 

13   donors to that very, very expensive private 

14   school could get a 100 percent tax break.

15                So, Mr. President, I think that the 

16   incentives already exist in the federal and state 

17   tax code.  It's called a 501(C)(3) charitable 

18   deduction.  We're just permitting a lot of 

19   corporations to double-dip, to give money away 

20   that they should be reinvesting -- we should be 

21   reinvesting into our traditional public schools.  

22                So I'll be voting no.

23                ACTING PRESIDENT GRIFFO:   Seeing 

24   and hearing no other Senator that wishes -- 

25   Senator Rivera.


                                                               200

 1                SENATOR RIVERA:   Thank you, 

 2   Mr. President.  

 3                I want to thank Senator Krueger and 

 4   Senator Golden for having the discussion that we 

 5   had earlier on the floor --

 6                ACTING PRESIDENT GRIFFO:   Senator 

 7   Rivera, are you on the bill?

 8                SENATOR RIVERA:   I am on the bill, 

 9   yes, Mr. President.

10                ACTING PRESIDENT GRIFFO:   Senator 

11   Rivera on the bill.

12                SENATOR RIVERA:   So again, I want 

13   to thank Senator Krueger and Senator Golden for 

14   having the conversation that they had here on the 

15   floor.  To underline Senator Hoylman's point, we 

16   should have had this discussion within a couple 

17   of hearings, a conversation within the committee 

18   itself, the Education Committee, which is where 

19   this bill should have been considered, as opposed 

20   to the Rules Committee and straight to the floor 

21   very last minute.

22                I will be voting in the negative on 

23   this bill, Mr. President, for many reasons.  And 

24   they have been pointed out by my colleagues, but 

25   I will underline a few.  


                                                               201

 1                First of all, just to make sure that 

 2   this it is stated clearly and for the record so 

 3   that later on people might not accuse me of not 

 4   being supportive of schools that are parochial 

 5   schools and schools that serve some kids in my 

 6   district, unfortunately fewer and fewer, as there 

 7   are parochial schools that have closed in my 

 8   district in the last few years and some that 

 9   might close in the near future.

10                I support those kids.  And I support 

11   those parents and I support those schools.  But 

12   what we're seeing here is not something that is 

13   going to help those schools.  It certainly could.  

14   It's a possibility.  But when we look at the 

15   details of the legislation, then we see that it 

16   is only a possibility, it is only a hope, and 

17   ultimately I believe it is a false hope.  And 

18   ultimately I believe that this is a voucher by 

19   another name.  

20                We're providing tax credits, which 

21   are ultimately tax breaks, for wealthy 

22   individuals that are going to choose where this 

23   money goes.  So, Senator Golden, I was very glad 

24   to hear that you pointed out all the different 

25   millions of dollars that potentially would go, 


                                                               202

 1   through this program, to public schools or other 

 2   types of schools in the City of New York.  But we 

 3   have no guarantee of where that money is going to 

 4   go.

 5                Furthermore, because we are taking 

 6   what amounts to $675 million over a three-year 

 7   period from the General Fund that could arguably 

 8   go to help some of the public schools that just 

 9   in my district in the Bronx serve 81 percent of 

10   the students that are in the Bronx.

11                This is a problem.  You're giving a 

12   tax break, you're letting wealthy individuals 

13   choose where this money goes.  And ultimately 

14   because of the way that it is structured, it 

15   might potentially be an investment.  You might 

16   actually have individuals being able to put 

17   money to take away some of their tax burden and 

18   then be able to get some money back, while 

19   millions of these dollars do not go to the kids 

20   in my district.  I cannot be supportive of this.  

21                And as Senator Hoylman also pointed 

22   out, we over the last couple of years -- I've 

23   been in the Senate for four years, many of my 

24   colleagues have been here for far longer -- have 

25   been arguing for the Campaign for Fiscal Equity, 


                                                               203

 1   arguing that as the courts have ordered us, as a 

 2   state we owe billions of dollars to schools in 

 3   the City of New York, to millions of kids in the 

 4   City of New York which we have not made good on.  

 5                So as opposed to talking about how 

 6   we could actually put that money in there, which 

 7   is, by the way, what Senator Gianaris pointed out 

 8   in the amendment that he proposed, we're instead 

 9   saying let's take more money away from the 

10   General Fund and create some sort of false hope 

11   for schools that currently do not have funding 

12   but potentially could maybe get this.

13                Lastly I will say because it is 

14   capped, because we only are doing a certain 

15   amount of it a year, as also has been pointed out 

16   by my colleagues, some individuals, wealthy 

17   individuals who have very good tax attorneys 

18   working for them, will be able to line up first.  

19   Certainly an individual that says I'm going to 

20   give $250 and get a $250 credit, that person is 

21   not going to get it because there are already 

22   going to be people having hundreds of thousands 

23   of dollars that are in front of them asking for 

24   the tax credit from the state.  And with 

25   knowledge of how to get this tax credit.  


                                                               204

 1                So ultimately we are giving a tax 

 2   break to individuals -- and to corporations, 

 3   let's not forget -- that we're giving them a tax 

 4   break, we're taking money away from the 

 5   General Fund and ultimately not getting it to the 

 6   students that really need it.  Which is certainly 

 7   the kids that I serve.

 8                So it is unfortunate that we didn't 

 9   have the opportunity to discuss it more at length 

10   in a committee meeting the way that we should.  

11   But I am glad that we at least had this 

12   conversation here, and I'm encouraging all of my 

13   colleagues to consider all the facts that have 

14   been brought about, and some that my colleagues 

15   might bring about afterwards, and vote no on this 

16   bill.  I will be voting in the negative.  

17                Thank you, Mr. President.

18                ACTING PRESIDENT GRIFFO:   Senator 

19   Sanders.

20                SENATOR SANDERS:   Thank you, 

21   Mr. President.  On the bill.

22                ACTING PRESIDENT GRIFFO:   Senator 

23   Sanders on the bill.

24                SENATOR SANDERS:   My colleagues 

25   have spoken well on this bill, but there are one 


                                                               205

 1   or two issues that I'd like to raise.  

 2                A report was recently put out saying 

 3   that more than 50 percent of all of the kids 

 4   going to public school in this nation are now in 

 5   poverty.  However, this bill does not attempt to 

 6   address those issues, I would argue.  I would say 

 7   that this is more trickle-down tax policies that 

 8   will only aid the largest corporations, who have 

 9   the best lawyers, who can get to this money first 

10   before anyone else does.  And by the time that 

11   any John Q. Public citizen comes up and says he 

12   wants to do anything, that money is long gone.

13                This is also a type of false 

14   philanthropy, where in true philanthropy you're 

15   not really looking to get everything back, you're 

16   not trying to, that's not your purpose.  Your 

17   purpose is to do good because it is good, instead 

18   of to do good because it is good for your bottom 

19   line, for your bank account.

20                We need to really replace the money 

21   that we took out of the public school system 

22   during the recession.  During the recession, of 

23   course we had to make hard decisions, and we took 

24   billions away from the public school system.  And 

25   that has not been put back.  As a matter of fact, 


                                                               206

 1   according to the New York State School Boards 

 2   Association, more than 50 percent of our school 

 3   districts are receiving less now than they had at 

 4   the beginning of the recession.  So seemingly 

 5   before we take any more money out of the budget, 

 6   we need to put back what we took before.

 7                New York State of course is not 

 8   complying with court orders that said we have to 

 9   defend the children and their education and make 

10   sure it's fair.  We're more than $5 billion 

11   behind in that one.  And we are a billion dollars 

12   short in the Gap Elimination Adjustment fund.

13                Mr. President, there are far better 

14   ways to aid even the religious schools, which I 

15   believe should be aided according to the law, of 

16   course.  There are far better ways of doing this, 

17   and this is not it.  And perhaps if we had had 

18   that discussion earlier that my colleagues had 

19   been requesting, we would have found those ways.

20                So I too must vote no on such a 

21   bill.  

22                Thank you, Mr. President.

23                ACTING PRESIDENT GRIFFO:   Seeing 

24   and hearing no other Senator who wishes to be 

25   heard, the debate is closed and the Secretary 


                                                               207

 1   will ring the bell.

 2                Read the last section.

 3                THE SECRETARY:   Section 12.  This 

 4   act shall take effect immediately.

 5                ACTING PRESIDENT GRIFFO:   Call the 

 6   roll.

 7                (The Secretary called the roll.)

 8                ACTING PRESIDENT GRIFFO:   Senator 

 9   Panepinto to explain his vote.

10                SENATOR PANEPINTO:   Regarding this 

11   bill, this bill in my opinion is nothing more 

12   than a tax break for the rich and for LLCs and S 

13   corporations.  My daughters attend public school 

14   in the City of Buffalo.  City Honors School is 

15   one of the top 10 public schools in the country.  

16   They have a private foundation which I could 

17   donate to under this bill.  I own an LLC as a law 

18   firm.  We could write down, you know, $400,000 in 

19   our state tax by giving to the City Honors 

20   Foundation.

21                That's just not right.  It's not 

22   fair to the other kids in the Buffalo public 

23   schools for my children alone and our school to 

24   benefit because we've got an LLC that has 

25   somebody that attends that school.  


                                                               208

 1                I'm voting in the negative, and I 

 2   encourage my colleagues to do so.

 3                ACTING PRESIDENT GRIFFO:   Senator 

 4   Panepinto to be recorded in the negative.

 5                Senator Montgomery to explain her 

 6   vote.  

 7                I'm going to remind everyone of the 

 8   two-minute explanation period.

 9                SENATOR MONTGOMERY:   Absolutely.

10                ACTING PRESIDENT GRIFFO:   Senator 

11   Montgomery.

12                SENATOR MONTGOMERY:   Thank you, 

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

14                I'm voting no on this legislation.  

15   I sat in a school in my district on Saturday for 

16   about two hours listening to parents, and that 

17   auditorium where we were was freezing cold 

18   because they had no heat.  There are problems in 

19   the building.  And I listened to parents from 

20   across that school district talk about some of 

21   the issues in relationship to their schools.

22                And furthermore, none of those 

23   parents -- nor does this bill cover individual 

24   parents in terms of a tax credit.  It's simply 

25   only refers to corporations.


                                                               209

 1                And so I am voting no on this, and I 

 2   hope that we can find a way to come up with the 

 3   kind of funding that is necessary to fix schools 

 4   like the one, P.S. 67, where I sat Saturday 

 5   listening to parents, and to actually have them 

 6   be eligible and be in the line for capital 

 7   funding and other funding that they so sorely 

 8   need.  

 9                I vote no, Mr. President.

10                ACTING PRESIDENT GRIFFO:   Senator 

11   Montgomery to be recorded in the negative.

12                Senator Savino to explain her vote.

13                SENATOR SAVINO:   Thank you, 

14   Mr. President.  

15                I'm voting in favor of this bill.  

16   And I want to just briefly explain why I feel 

17   that it is important that we pass the education 

18   tax credit.  

19                And by the way, for those of you who 

20   have wondered why we didn't have a hearing on 

21   this, this is not a new issue for this body.  We 

22   have passed this bill or supported this bill in 

23   some way, shape or form for the past five years, 

24   many of us in this chamber appearing at rallies 

25   in support of it.


                                                               210

 1                Now, I am proud to say that I am a 

 2   Catholic school girl.  I never set foot in a 

 3   public school until I took a civil service test.  

 4   Kindergarten through university.  I believe in 

 5   the Catholic school system.  

 6                But the narrative that is being put 

 7   forward that if you support parochial education 

 8   somehow you are opposed to public education is a 

 9   false one.  I am just as strong a supporter of 

10   public education as many of us in this room are.  

11   This is not the choice.

12                But I just want those of you who are 

13   new to this process to think about this.  In the 

14   past five years that this house and the Assembly 

15   have been trying to figure out how do we pass an 

16   education tax credit so that we can preserve 

17   parochial and private education alongside our 

18   thriving public school education, 75 Catholic 

19   schools have closed in the archdiocese and the 

20   Brooklyn-Queens diocese, 12 in Buffalo last year.  

21                Those children are entitled to the 

22   same due consideration that every other child is.  

23   We need to find ways to preserve our private 

24   parochial education system alongside our public 

25   education system.  We can do both.  This is not a 


                                                               211

 1   choice between them.  We all support all of our 

 2   kids.  

 3                And I will tell you, I vote on this 

 4   with a heavy heart.  Because as I stand here, the 

 5   school that I went to in Astoria, it's in 

 6   Senator Gianaris's district, Most Precious Blood, 

 7   a school that my grandfather contributed money to 

 8   build and his name is on a plaque, is on the list 

 9   for closure.  So I'm fighting the fight not just 

10   for my own school that I went to but for every 

11   other Catholic school girl in the state, and 

12   every other yeshiva girl, and every other public 

13   school student in the State of New York.  We can 

14   do right by all of our students.  

15                Thank you, Mr. President.

16                ACTING PRESIDENT GRIFFO:   Senator 

17   Savino to be recorded in the affirmative.

18                Announce the results.

19                THE SECRETARY:   In relation to 

20   Calendar 17, those recorded in the negative are 

21   Senators Breslin, Espaillat, Gianaris, Hamilton, 

22   Hoylman, Krueger, Montgomery, Panepinto, Peralta, 

23   Perkins, Rivera, Sanders, Serrano, Squadron and 

24   Stavisky.  Also Senator Comrie.

25                Ayes, 44.  Nays, 16.


                                                               212

 1                ACTING PRESIDENT GRIFFO:   The bill 

 2   is passed.

 3                Senator LaValle.

 4                SENATOR LaVALLE:   Mr. President, 

 5   lay aside the rest of Calendar 3A.

 6                ACTING PRESIDENT GRIFFO:   The 

 7   remainder of Calendar 3A will be laid aside for 

 8   the day.  Lay it aside.

 9                SENATOR LaVALLE:   Before I make a 

10   motion, just an announcement.

11                ACTING PRESIDENT GRIFFO:   Can I 

12   have some order, please, in the chamber.  

13                Senator LaValle.

14                SENATOR LaVALLE:   Members may 

15   assemble by the Concourse Security if they wish 

16   to be guided to the State of the State address by 

17   the Sergeant-at-Arms.

18                My motion, there being no further 

19   business, I move we adjourn until Thursday, 

20   January 22nd, at 11:00 a.m. 

21                We will now proceed to the Empire 

22   State Plaza Convention Center for the Governor's 

23   State of the State address.

24                ACTING PRESIDENT GRIFFO:   Members 

25   are instructed to proceed to the Concourse to the 


                                                               213

 1   Empire State Convention Center, for the message 

 2   of the Governor on the State of the State and 

 3   Budget.  

 4                The Senate stands adjourned, on 

 5   motion, until Thursday, January 22nd at 

 6   11:00 a.m.  The Senate stands adjourned.

 7                (Whereupon, at 1:38 p.m., the Senate 

 8   adjourned.) 

 9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25