Tuesday, February 13, 2007

1 NEW YORK STATE SENATE 2 3 4 THE STENOGRAPHIC RECORD 5 6 7 8 9 ALBANY, NEW YORK 10 February 13, 2007 11 1:05 p.m. 12 13 14 REGULAR SESSION 15 16 17 18 SENATOR JOSEPH A. GRIFFO, Acting President 19 STEVEN M. BOGGESS, Secretary 20 21 22 23 24 25

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(518) 371-8910 1 P R O C E E D I N G S 2 ACTING PRESIDENT GRIFFO: The 3 Senate will come to order. 4 I ask everyone present to please 5 rise and repeat with me the Pledge of 6 Allegiance. 7 (Whereupon, the assemblage recited 8 the Pledge of Allegiance to the Flag.) 9 ACTING PRESIDENT GRIFFO: The 10 invocation today will be given by the Reverend 11 Ed Jones, of Faith Assembly of God Church, in 12 Poughkeepsie. 13 REVEREND JONES: Let's bow our 14 heads as we pray. 15 Heavenly Father, we ask You for 16 wisdom, we ask You for strength, for guidance. 17 We thank You, Lord, that Your knowledge is 18 perfect and You understand everything. And we 19 pray, Lord, that You will guide the 20 proceedings, that You will guide us in all the 21 decisions. 22 We ask as well, Lord, that You will 23 give us the grace, as we build bridges over 24 our differences for the common good of our 25 state.

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(518) 371-8910 1 We pray Your blessing now on all of 2 the proceedings, and we ask this in the strong 3 name of our Lord and Savior Jesus. 4 Amen. 5 ACTING PRESIDENT GRIFFO: Thank 6 you, Pastor Jones. 7 Reading of the Journal. 8 THE SECRETARY: In Senate, 9 Monday, February 12, the Senate met pursuant 10 to adjournment. The Journal of Sunday, 11 February 11, was read and approved. On 12 motion, Senate adjourned. 13 ACTING PRESIDENT GRIFFO: Without 14 objection, the Journal stands approved as 15 read. 16 Presentation of petitions. 17 Messages from the Assembly. 18 Messages from the Governor. 19 Reports of standing committees. 20 The Secretary will read. 21 THE SECRETARY: Senator Johnson, 22 from the Committee on Finance, reports the 23 following bills: 24 Senate Print 2728, by the Senate 25 Committee on Rules, an act to amend the Civil

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(518) 371-8910 1 Service Law and the State Finance Law; 2 And Senate Print 2729, by the 3 Senate Committee on Rules, an act to amend 4 Chapter 113 of the Laws of 2006. 5 Both bills ordered direct to third 6 reading. 7 ACTING PRESIDENT GRIFFO: Without 8 objection, the bills are ordered direct to 9 third reading. 10 Reports of select committees. 11 Communications and reports from 12 state officers. 13 Motions and resolutions. 14 Senator Skelos. 15 SENATOR SKELOS: Mr. President, I 16 move that we adopt the Resolution Calendar, 17 with the exception of Resolutions 386, 454, 18 457, and 482. 19 ACTING PRESIDENT GRIFFO: With 20 the exceptions as noted, all in favor of 21 adopting the Resolution Calendar signify by 22 saying aye. 23 (Response of "Aye.") 24 ACTING PRESIDENT GRIFFO: 25 Opposed.

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(518) 371-8910 1 (No response.) 2 ACTING PRESIDENT GRIFFO: The 3 Resolution Calendar is adopted. 4 Senator Skelos. 5 SENATOR SKELOS: If we could take 6 up Resolution 386, by Senator Connor, have the 7 title read and move for its immediate 8 adoption. 9 ACTING PRESIDENT GRIFFO: The 10 Secretary will read. 11 THE SECRETARY: By Senator 12 Connor, Legislative Resolution Number 386, 13 commemorating the 100th Anniversary of the 14 United Parcel Service of America, Inc., and 15 recognizing its goodwill among the citizens of 16 New York State. 17 ACTING PRESIDENT GRIFFO: On the 18 resolution, all in favor signify by saying 19 aye. 20 (Response of "Aye.") 21 ACTING PRESIDENT GRIFFO: 22 Opposed. 23 (No response.) 24 ACTING PRESIDENT GRIFFO: The 25 resolution is adopted.

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(518) 371-8910 1 Senator Skelos. 2 SENATOR SKELOS: Mr. President, 3 if we could take up Resolution 454, by Senator 4 Golden, have the title -- strike that. 5 If we could take up Resolution 457, 6 by Senator Connor, have the title read and 7 move for its immediate adoption. 8 ACTING PRESIDENT GRIFFO: The 9 Secretary will read. 10 THE SECRETARY: By Senator 11 Connor, Legislative Resolution Number 457, 12 commemorating the Asian-American community's 13 celebration of the Lunar New Year, 4705, the 14 Year of the Boar, on February 18, 2007. 15 ACTING PRESIDENT GRIFFO: The 16 question is on the resolution. All in favor 17 signify by saying aye. 18 (Response of "Aye.") 19 ACTING PRESIDENT GRIFFO: 20 Opposed. 21 (No response.) 22 ACTING PRESIDENT GRIFFO: The 23 resolution is adopted. 24 Senator Skelos. 25 SENATOR SKELOS: Mr. President,

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(518) 371-8910 1 if we could take up Resolution 482, by Senator 2 Larkin, have it read in its entirety, and move 3 for its immediate adoption. 4 ACTING PRESIDENT GRIFFO: The 5 Secretary will read. 6 Order, please. 7 THE SECRETARY: By Senator 8 Larkin, Legislative Resolution Number 482, 9 commemorating the 75th Anniversary of the 10 Military Order of the Purple Heart on 11 February 22, 2007. 12 "WHEREAS, It is the sense of this 13 Legislative Body to pay tribute to those 14 renowned organizations which devote their 15 energy, resources and thoughtful care to 16 improving and enhancing the quality of life 17 for veterans; and 18 "WHEREAS, Attendant to such 19 concern, and in full accord with its 20 long-standing traditions, this Legislative 21 Body is justly proud to commemorate the 75th 22 anniversary of the Military Order of the 23 Purple Heart on February 22, 2007; and 24 "WHEREAS, Specifically a combat 25 decoration, the Purple Heart is awarded to

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(518) 371-8910 1 members of the armed forces of the United 2 States who are wounded by an instrument of war 3 in the hands of the enemy and posthumously to 4 the next of kin in the name of those who are 5 killed in action or die of wounds received in 6 action; and 7 "WHEREAS, In 1932, the organization 8 now known as the Military Order of the Purple 9 Heart was formed for the protection and mutual 10 interest of all who have received the 11 decoration; and 12 "WHEREAS, Composed exclusively of 13 Purple Heart recipients, the Military Order of 14 the Purple Heart is the only veterans service 15 organization comprised strictly of combat 16 veterans; and 17 "WHEREAS, In addition, wives, 18 mothers, daughters, stepdaughters and adopted 19 daughters of Purple Heart recipients are 20 eligible to belong to the Ladies' Auxiliary of 21 the Military Order of the Purple Heart, which 22 also does important work nationally and 23 locally in veterans' hospitals; and 24 "WHEREAS, The mission of the 25 Military Order of the Purple Heart is to

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(518) 371-8910 1 foster an environment of goodwill and 2 camaraderie among combat-wounded veterans, 3 promote patriotism, support necessary 4 legislative initiatives, and provide service 5 to all veterans and their families; and 6 "WHEREAS, Funds for welfare, 7 rehabilitation and/or service work carried on 8 by the Military Order of the Purple Heart are 9 derived through the collection of used 10 household items, the operation of thrift 11 stores, through the donation of automobiles 12 and, at the community level, from the annual 13 distribution of its official flower, the 14 Purple Heart Viola; and 15 "WHEREAS, It is the sense of this 16 Legislative Body that when organizations of 17 such noble aims and accomplishments are 18 brought to our attention, they should be 19 celebrated and recognized by all the citizens 20 of the great State of New York; now, 21 therefore, be it 22 "RESOLVED, That this Legislative 23 Body pause in its deliberations to commemorate 24 the 75th Anniversary of the Military Order of 25 the Purple Heart on February 22, 2007; and be

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(518) 371-8910 1 it further 2 "RESOLVED, That a copy of this 3 resolution, suitably engrossed, be transmitted 4 to the Military Order of the Purple Heart." 5 ACTING PRESIDENT GRIFFO: The 6 question is on the resolution. All in favor 7 signify by saying aye. 8 Senator Larkin. 9 SENATOR LARKIN: Mr. President, 10 I'd like to open this up because, for me, this 11 is a great, great year for us in the state of 12 New York. The 75th anniversary will be 13 celebrated in New York, and at the Hall of 14 Honor, which is located in the 39th Senatorial 15 District. 16 It took us 11 years to get this 17 facility built. Now the nation is going to 18 come to Stewart and then go to the Hall of 19 Honor. 20 And I'd like to see it opened up 21 for everyone to be included and paying tribute 22 to those dedicated men and women, 1.7 million, 23 who have received the Purple Heart. 24 ACTING PRESIDENT GRIFFO: Senator 25 Skelos.

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(518) 371-8910 1 SENATOR SKELOS: Mr. President, 2 we'll put all members on the resolution. If 3 anybody wishes not to sponsor the resolution, 4 they should notify the desk. 5 ACTING PRESIDENT GRIFFO: So 6 ordered. 7 On the resolution, all in favor 8 signify by saying aye. 9 (Response of "Aye.") 10 ACTING PRESIDENT GRIFFO: 11 Opposed. 12 (No response.) 13 ACTING PRESIDENT GRIFFO: The 14 resolution is adopted. 15 Senator Skelos. 16 SENATOR SKELOS: Mr. President, 17 if we could take up Resolution 454, by Senator 18 Golden, have the title read and move for its 19 immediate adoption. 20 ACTING PRESIDENT GRIFFO: The 21 Secretary will read. 22 THE SECRETARY: By Senator 23 Golden, Legislative Resolution Number 454, 24 commending Jenny Hynes for her dedicated and 25 compassionate efforts on behalf of the

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(518) 371-8910 1 Amyotrophic Lateral Sclerosis Association, and 2 applauding her hard work and dedication in 3 honor of her father. 4 ACTING PRESIDENT GRIFFO: Senator 5 Golden. 6 SENATOR GOLDEN: Thank you, 7 Mr. President. 8 I want to thank my colleagues and I 9 rise today to pay tribute to a great 10 New Yorker, Miss Jenny Hynes. 11 Nearly 70 years ago, baseball 12 legend Lou Gehrig gave his name to a 13 mysterious and rare disease called ALS. On 14 July 4, 1939, Lou Gehrig gave one of the most 15 memorable speeches of the 20th century when he 16 announced to a packed house in Yankee Stadium: 17 "Today, I consider myself the luckiest man on 18 the face of this earth." 19 For many of us, we became 20 familiarized with ALS through his speech and 21 through the motion picture "The Pride of the 22 Yankees." 23 Today it is with great pride that 24 the Senate pays tribute to Jenny Hynes and to 25 her late father, whose life was claimed by

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(518) 371-8910 1 ALS. In memory of her father, Jenny and her 2 brother, Michael, decided to commemorate their 3 father's life by selling "Never Give Up" 4 bracelets and baseballs, enabling them to make 5 a generous contribution to the cause. 6 Today's Senate resolution is a 7 fitting tribute to Jenny's courage and to her 8 dedication to raise funding and awareness for 9 the ALS Association. 10 With Jenny and Michael and their 11 mother, Cindy, and my good friend Judge Ariel 12 Belen and his daughter, Lauren, I ask my 13 colleagues to take notice of Miss Hynes and 14 her brother, Michael, for their inspirational 15 work to find a cure for ALS. 16 And I ask my colleagues, all of 17 them, to go on this resolution if they wish 18 and to join me in saying thank you, thank you 19 very much for your dedication, for what you 20 are able to do, one little person to do so 21 much to look for a cure for ALS. 22 Congratulations to both of you. 23 (Applause.) 24 ACTING PRESIDENT GRIFFO: The 25 question is on the resolution. All in favor

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(518) 371-8910 1 signify by saying aye. 2 (Response of "Aye.") 3 ACTING PRESIDENT GRIFFO: 4 Opposed. 5 (No response.) 6 ACTING PRESIDENT GRIFFO: Senator 7 Skelos. 8 SENATOR SKELOS: The resolution 9 is adopted. 10 ACTING PRESIDENT GRIFFO: Thank 11 you. The resolution is adopted. 12 SENATOR SKELOS: If we could go 13 to the noncontroversial reading of the 14 calendar. 15 ACTING PRESIDENT GRIFFO: The 16 clerk will read. 17 THE SECRETARY: Calendar Number 18 37, by Senator Bruno, Senate Print 1456, an 19 act to amend the Tax Law. 20 SENATOR SKELOS: Lay it aside 21 temporarily. 22 ACTING PRESIDENT GRIFFO: Lay it 23 aside. 24 THE SECRETARY: Calendar Number 25 41, by Senator Rath, Senate Print 678, an act

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(518) 371-8910 1 to amend the Family Court Act, in relation to 2 orders of deposition. 3 ACTING PRESIDENT GRIFFO: Read 4 the last section. 5 THE SECRETARY: Section 2. This 6 act shall take effect immediately. 7 ACTING PRESIDENT GRIFFO: Call 8 the roll. 9 (The Secretary called the roll.) 10 THE SECRETARY: Ayes, 54. 11 ACTING PRESIDENT GRIFFO: The 12 bill is passed. 13 THE SECRETARY: Calendar Number 14 44, by Senator DeFrancisco, Senate Print 789, 15 an act to amend the Estates, Powers and Trusts 16 Law, in relation to defining. 17 ACTING PRESIDENT GRIFFO: Read 18 the last section. 19 THE SECRETARY: Section 2. This 20 act shall take effect immediately. 21 ACTING PRESIDENT GRIFFO: Call 22 the roll. 23 (The Secretary called the roll.) 24 THE SECRETARY: Ayes, 53. Nays, 25 1. Senator Saland recorded in the negative.

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(518) 371-8910 1 ACTING PRESIDENT GRIFFO: The 2 bill is passed. 3 THE SECRETARY: Calendar Number 4 52, by Senator Volker, Senate Print 566, an 5 act to amend the Penal Law, in relation to 6 expanding. 7 ACTING PRESIDENT GRIFFO: Read 8 the last section. 9 THE SECRETARY: Section 2. This 10 act shall take effect on the first of 11 November. 12 ACTING PRESIDENT GRIFFO: Call 13 the roll. 14 (The Secretary called the roll.) 15 THE SECRETARY: Ayes, 54. 16 ACTING PRESIDENT GRIFFO: The 17 bill is passed. 18 THE SECRETARY: Calendar Number 19 62, by Senator Winner, Senate Print 946, an 20 act to amend the Penal Law, in relation to 21 criminal possession. 22 ACTING PRESIDENT GRIFFO: Read 23 the last section. 24 THE SECRETARY: Section 2. This 25 act shall take effect on the first of

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(518) 371-8910 1 November. 2 ACTING PRESIDENT GRIFFO: Call 3 the roll. 4 (The Secretary called the roll.) 5 THE SECRETARY: Ayes, 54. 6 ACTING PRESIDENT GRIFFO: The 7 bill is passed. 8 THE SECRETARY: Calendar Number 9 83, by Senator Maziarz, Senate Print 1567, an 10 act to amend the Labor Law, in relation to 11 allowance. 12 ACTING PRESIDENT GRIFFO: Read 13 the last section. 14 THE SECRETARY: Section 2. This 15 act shall take effect immediately. 16 ACTING PRESIDENT GRIFFO: Call 17 the roll. 18 (The Secretary called the roll.) 19 THE SECRETARY: Ayes, 54. 20 ACTING PRESIDENT GRIFFO: The 21 bill is passed. 22 THE SECRETARY: Calendar Number 23 110, by Senator Maziarz, Senate Print 254, an 24 act to amend the Retirement and Social 25 Security Law, in relation to providing.

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(518) 371-8910 1 ACTING PRESIDENT GRIFFO: Read 2 the last section. 3 THE SECRETARY: Section 2. This 4 act shall take effect immediately. 5 ACTING PRESIDENT GRIFFO: Call 6 the roll. 7 (The Secretary called the roll.) 8 THE SECRETARY: Ayes, 54. 9 ACTING PRESIDENT GRIFFO: The 10 bill is passed. 11 THE SECRETARY: Calendar Number 12 131, by the Senate Committee on Rules, Senate 13 Print 2131, an act to amend the Tax Law, in 14 relation to authorizing. 15 ACTING PRESIDENT GRIFFO: Read 16 the last section. 17 THE SECRETARY: Section 5. This 18 act shall take effect immediately. 19 ACTING PRESIDENT GRIFFO: Call 20 the roll. 21 (The Secretary called the roll.) 22 THE SECRETARY: Ayes, 52. Nays, 23 2. Senators C. Johnson and Valesky recorded 24 in the negative. 25 ACTING PRESIDENT GRIFFO: The

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(518) 371-8910 1 bill is passed. 2 THE SECRETARY: Calendar Number 3 138, by the Senate Committee on Rules, 4 reported earlier today, Senate Print 2728, an 5 act to amend the Civil Service Law and the 6 State Finance Law. 7 ACTING PRESIDENT GRIFFO: Read 8 the last section. 9 THE SECRETARY: Section 27. This 10 act shall take effect immediately. 11 ACTING PRESIDENT GRIFFO: Call 12 the roll. 13 (The Secretary called the roll.) 14 THE SECRETARY: Ayes, 54. 15 ACTING PRESIDENT GRIFFO: The 16 bill is passed. 17 THE SECRETARY: Calendar Number 18 139, by the Senate Committee on Rules, 19 reported earlier today, Senate Print 2729, an 20 act to amend Chapter 113 of the Laws of 2006 21 amending the Civil Service Law and others. 22 ACTING PRESIDENT GRIFFO: Read 23 the last section. 24 THE SECRETARY: Section 28. This 25 act shall take effect immediately.

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(518) 371-8910 1 ACTING PRESIDENT GRIFFO: Call 2 the roll. 3 (The Secretary called the roll.) 4 THE SECRETARY: Ayes, 54. 5 ACTING PRESIDENT GRIFFO: The 6 bill is passed. 7 Senator Skelos. 8 SENATOR SKELOS: Mr. President, 9 if we could return to Calendar Number 37, by 10 Senator Bruno. 11 ACTING PRESIDENT GRIFFO: The 12 Secretary will read. 13 THE SECRETARY: Calendar Number 14 37, by Senator Bruno, Senate Print 1456, an 15 act to amend the Tax Law. 16 ACTING PRESIDENT GRIFFO: Senator 17 Krueger. 18 SENATOR LIZ KRUEGER: Thank you. 19 To explain my vote. 20 ACTING PRESIDENT GRIFFO: Senator 21 Krueger, to explain her vote. 22 SENATOR LIZ KRUEGER: Thank you. 23 ACTING PRESIDENT GRIFFO: Senator 24 Krueger, can we get on a roll call first? 25 SENATOR LIZ KRUEGER: Certainly,

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(518) 371-8910 1 Senator. 2 ACTING PRESIDENT GRIFFO: Read 3 the last section. 4 THE SECRETARY: Section 6. This 5 act shall take effect immediately. 6 ACTING PRESIDENT GRIFFO: Call 7 the roll. 8 (The Secretary called the roll.) 9 ACTING PRESIDENT GRIFFO: Senator 10 Krueger, to explain her vote. 11 SENATOR LIZ KRUEGER: Thank you, 12 Mr. President. 13 So this bill is called a small 14 business tax exemption bill, a small business 15 assistance package. But when you analyze it, 16 I think you really need to think through how 17 much of this is for small businesses, which 18 small businesses, how are we deciding that, 19 and, also, a fundamental question -- because 20 annualized, this bill is projected to cost the 21 State of New York $1.2 billion on an annual 22 basis -- what are we cutting out of the new 23 proposed budget to pay for it? 24 Because every time you make a tax 25 cut and you cut $1.2 billion out of the state

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(518) 371-8910 1 revenue stream, you'd better come up with an 2 alternative revenue package or know you're 3 going to cut that money out of the budget. 4 So I would argue that like any 5 other tax cut proposal or new expenditure 6 proposal of some size, like $1.2 billion on an 7 annual basis, this should be built into the 8 context of the budget itself and a debate on 9 the budget. And that's where we should be 10 debating tax policy. 11 As I've said on this floor, I also 12 think we should be discussing tax equity and 13 changes in our tax policy from a broad-based 14 perspective, not picking and choosing -- today 15 maybe we'll give this group a tax cut, 16 tomorrow maybe we'll give this group a tax 17 increase to pay for the tax cut we gave that 18 group last month -- and that we need to look 19 at our 21st-century New York State tax policy. 20 And yes, on the face of it, saying 21 it's a package of assistance for small 22 business, well, who doesn't want to stand up 23 and say they support small business? I want 24 to support small business. But when I look at 25 this proposal, we've got $150 million for

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(518) 371-8910 1 reducing net-income base rate and gradual 2 elimination of the corporate franchise tax on 3 all manufacturing. Some manufacturers are 4 big; some are small. I'd love to see a 5 breakdown of which type of manufacturer 6 actually ends up with this tax cut. 7 Then we've got an additional 8 corporate franchise tax reduction of another 9 $550 million on manufacturing companies. 10 So the two proposals that tie into 11 the net-income base rate and gradual 12 elimination of corporate franchise tax on 13 manufacturing is $700 million, the majority of 14 this bill. And there's no explanation here 15 about who are we defining as the manufacturers 16 that would get this tax reduction. I'm not 17 sure they're all the small manufacturers. 18 Then we've got some energy credits. 19 Well, the catch is I do recognize we need to 20 change our energy policy in this state. We 21 need to expand use of alternative energy. We 22 need to revisit the Power for Jobs program, 23 the NYSERDA programs, alternative energy and 24 green energy options. 25 But I don't think that the answer

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(518) 371-8910 1 for energy issues in this state is some 2 automatic cut of $350 million, when fully 3 implemented, of energy tax credits for a 4 certain subset of businesses. 5 I think we need to address energy 6 policy and energy taxes in a much broader 7 sense. And my understanding is that actually 8 on any number of days this whole house is 9 agreed on that position, and I know that 10 Governor Spitzer agrees on that position. So 11 I don't know why we're suddenly taking on 12 today, as part of one package of tax cuts, a 13 $350 million tax cut. 14 I also don't understand this 15 concept of a STAR tax credit for small 16 businesses. Because as I read it, if your 17 small business owns property, then you would 18 get an additional tax credit rebate. But if 19 you're a small business that rents your 20 offices or your facilities, I don't believe 21 you would get any advantage from this tax 22 credit which, annually implemented, would cost 23 $150 million a year. 24 And so the same way I have spoken 25 out about my concerns about the overall STAR

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(518) 371-8910 1 program and its inequities to people who rent 2 versus own their own homes, I'm equally 3 concerned of the concept of a tax exemption 4 for small businesses who own their facilities 5 versus rent. 6 One, I think it is, by definition, 7 going to be inequitable to small businesses in 8 urban settings that are much more likely to be 9 renting space versus owning. 10 I also think it probably skews in 11 one way or another to a small subset of small 12 businesses statewide, those who are in the 13 kinds of businesses who are likely to own 14 their property versus those who are in the 15 types of businesses who are more likely to 16 rent their property. 17 So I see both geographic inequity 18 questions and type of business. And I think, 19 before we decide we're going to lose 20 $150 million in revenue and claim that this is 21 a good deal for small businesses, we should 22 ask the question who wins and who loses in 23 this specific proposal. 24 So again, there's individual items 25 within this bill that are perhaps things I

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(518) 371-8910 1 could support. But it's $1.2 billion. We're 2 not explaining where we're going to get this 3 money, what else we're going to cut out of the 4 budget instead to make this deal. And we're 5 really not answering the questions yet who 6 wins and who loses even within the definitions 7 of small-business manufacturing and other 8 businesses in the state. 9 I know we all want to vote for tax 10 cuts. These are complicated questions. I 11 think we need a lot more answers before we 12 move forward. I'm voting no, and I urge my 13 colleagues to vote no also. 14 Thank you, Mr. President. 15 ACTING PRESIDENT GRIFFO: Order 16 in the chamber. 17 Senator Winner, to explain his 18 vote. 19 SENATOR WINNER: Thank you, 20 Mr. President. 21 Certainly I understand the chagrin 22 of the other side of the aisle that I don't 23 know that Senator Krueger has ever met a tax 24 cut that she likes. 25 But nonetheless, the area that I

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(518) 371-8910 1 represent and the small businesses I represent 2 certainly know that doing business in New York 3 State is certainly not a pleasant prospect 4 these days, particularly in the upstate areas. 5 And certainly we understand what 6 will happen -- what would happen if you folks 7 were in charge. We'd be having more taxes on 8 small business rather than less taxes on small 9 business, and we'd have less jobs in upstate 10 New York rather than more jobs in upstate 11 New York. 12 ACTING PRESIDENT GRIFFO: Order. 13 SENATOR WINNER: There's no 14 question whatsoever that New York needs tax 15 cuts in order to be successful, particularly 16 in the upstate regions. And we need to 17 incentivize our small businesses, which is the 18 backbone of the upstate economy. 19 You know, many of us were 20 absolutely astonished when the Governor 21 presented a budget after campaigning on a 22 pledge to help the upstate economy that didn't 23 have one thing in there for the upstate 24 economy. In fact, what he had in his budget 25 was $449 million, by his own admission, of

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(518) 371-8910 1 additional taxes to businesses and other 2 entities that provide jobs in this state. 3 And as a result, we're going to 4 only bleed even worse in upstate New York with 5 the type of leadership that Governor Spitzer 6 is providing for this state when he turns 7 around and on the one hand says he wants to 8 help the upstate economy and then on the other 9 hand turns around and wants to tax 10 manufacturers in the upstate economy. How 11 does that make any sense? It doesn't make any 12 sense. 13 So the time for rhetoric and all 14 this other nonsense is over. The time is to 15 put up a package that's going to help business 16 and help upstate grow, help the economy of the 17 state as a whole to grow, and not continue to 18 say on the one hand I'm not for tax increases 19 and on the other hand raise taxes and fees in 20 the state by a couple of billion dollars. 21 That completely is so disingenuous as to be 22 beyond the pale. 23 And unfortunately, from what I can 24 see, you folks are all in lockstep with 25 Governor Spitzer on all of these measures. So

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(518) 371-8910 1 as a result, I'm sure that what we're going to 2 be looking forward to is another $2 billion in 3 taxes and fees if you had your way. 4 Well, fortunately, you don't have 5 your way. And we're going to try to help 6 these businesses in upstate New York, and 7 we're going to try to help the taxpayers in 8 this state, and we're going to grow this 9 economy and not tax them to death. 10 ACTING PRESIDENT GRIFFO: Order. 11 Senator Libous, to qualify his 12 vote. 13 SENATOR LIBOUS: Thank you, 14 Mr. President. 15 Last week I met with a group of 16 businesspeople in my district who had two 17 years ago built a beautiful complex and had 18 hired about fifty people. They came to me not 19 to discuss the budget, not to discuss 20 legislation, but as small business owners they 21 were extremely concerned that their property 22 taxes were too high and they couldn't continue 23 to keep their operation going. 24 They didn't have -- they weren't in 25 an economic development zone, they didn't

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(518) 371-8910 1 receive any benefits. This group of 2 individuals actually put their hard-earned 3 money together and invested in New York State. 4 They invested in the Southern Tier. 5 They asked me why in the Governor's 6 budget were there no incentives for small 7 business. If there's a commitment to help 8 upstate New York, why wasn't there any 9 incentives in this budget? There were no tax 10 cut for small businesses. There was no growth 11 incentives for small business. There was no 12 special economic zones for small business. 13 There was absolutely nothing for small 14 business. 15 Mr. President, this legislation is 16 a step forward. It shows a commitment from 17 this house, it shows a commitment from this 18 Majority that we care about small business. 19 And by the way, Mr. President, this 20 just doesn't help small business in upstate 21 New York, this helps small business 22 everywhere. Because what our goal here has to 23 be is to create not jobs, but career 24 opportunities for our constituents, career 25 opportunities so that the money that we invest

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(518) 371-8910 1 in education -- we invest an awful lot of 2 money in our education system, both private 3 and public. But what we don't invest in is 4 opportunities to keep them in the state. 5 Because after they graduate from 6 our colleges, they go to other states, they go 7 to other parts of the country, they go 8 globally around the world. And we need to 9 keep those young people here. We need to 10 invest. We talk about investing in their 11 future. We need to invest in their future by 12 creating career opportunities. 13 This legislation does that. It not 14 only helps the economy of upstate New York 15 that needs it so desperately, it helps the 16 economy of this state and it also shows the 17 graduates of the institutions that we invest 18 millions, millions, hundreds of millions of 19 dollars in that we have a commitment in them. 20 And that the quality of these 21 institutions which we are so very proud of, 22 because they are great institutions, we're not 23 continually training people so that they leave 24 the state. We're investing millions of 25 dollars of taxpayer money every year so that

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(518) 371-8910 1 we train people, some of the best in the 2 world, so that they leave this state. 3 This legislation is committed to 4 keep them here in New York. And it's about 5 time people get on board, they understand. 6 They understand that cutting taxes, cutting 7 property taxes, which are too high in this 8 state, giving small business and businesses 9 opportunities, that's how we keep young people 10 here, that's how we grow. 11 I vote aye, Mr. President. 12 ACTING PRESIDENT GRIFFO: Senator 13 Craig Johnson, to explain his vote. 14 SENATOR CRAIG JOHNSON: Thank you 15 to the chair. 16 I congratulate my colleagues. I 17 support this bill. And I believe it's 18 critical, being a young person in this state 19 and having friends who can't live in Port 20 Washington and Roslyn and Great Neck and 21 Elmont and areas of my district and all across 22 the state. 23 And I'm learning, you know, about 24 the procedures. But I have to wonder, and I 25 wonder openly -- it's not a question, because

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(518) 371-8910 1 I am supporting this -- but where was this 2 bill last year or two years ago or three years 3 ago or 12 years ago? 4 We need to help small businesses, 5 because they are facing the pressure. But 6 this is pressure that's been going on for 7 almost over a decade now. And it's a pressure 8 that has been growing. And it is bursting. 9 And it's bursting in Nassau County, it's 10 bursting in Rockland County, it's bursting in 11 Albany County, it's bursting all across the 12 state. 13 So instead of getting angry or 14 showing passion, we need to move that aside 15 and help the small businesses, because for 16 years they haven't received the assistance. 17 And we are doing that in New York State. 18 We're looking to reduce the healthcare costs 19 that are crippling our small businesses. 20 We're looking to provide them with the 21 assistance they need. We're looking to keep 22 people, our senior citizens in their homes, 23 our working class in their homes, by reducing 24 the property taxes. 25 But instead of pointing fingers at

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(518) 371-8910 1 a new governor, and even pointing fingers at 2 an old governor, we need to work together to 3 push this bill forward. And we need to do it 4 now, because it's the small business man and 5 woman who are sitting in those businesses 6 right now who don't know how am I going to pay 7 that utility bill, how am I going to pay for 8 that health insurance, when for over a decade 9 they haven't gotten that help. 10 So I applaud the Majority Leader 11 for sponsoring this bill. It's about time we 12 have some assistance for our small businesses. 13 And I proudly cast my yes vote for this bill. 14 Thank you. 15 ACTING PRESIDENT GRIFFO: Senator 16 Johnson in the affirmative. 17 Senator Thompson, to explain his 18 vote. 19 SENATOR THOMPSON: Yeah, I wanted 20 to sit back and listen to the debate, being 21 from upstate New York. And we've heard a lot 22 about upstate for a long time. And being 23 someone who's been involved for a while 24 particularly formerly running a small business 25 development agency, I think this year we'll

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(518) 371-8910 1 really be able to see who really has a 2 meaningful plan as relates to jump-starting 3 the upstate economy. 4 I concur with my colleague, my new 5 colleague, that there's been plenty of time to 6 talk about what should have been done. But 7 this session we intend to offer not only to 8 the Governor but also to our folks on the 9 other side of the aisle a number of different 10 ideas -- not just tax cuts, but policy 11 initiatives as well -- that can help upstate. 12 There are a lot of issues that 13 impact Niagara Falls, Buffalo, Tonawanda and 14 Grand Island. We've seen a lot of companies 15 leave. We've seen the population decrease. 16 There are things that the various state 17 economic development agencies can do to help. 18 There are housing initiatives that need to be 19 addressed. There's a population decline as 20 well, where we need to look at immigration 21 reform so we can get some of those people that 22 are fleeing to downstate to move upstate as 23 well, to help address the large housing 24 surplus upstate. 25 There are a number of things that

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(518) 371-8910 1 can be done beyond just what we've talked 2 about today. So I look forward to a real 3 meaningful debate about what can be done to 4 help upstate New York. And we're going to put 5 together some serious policies for the 6 Governor to look at and some serious policies 7 for our folks across the aisle to look at as 8 well. 9 Thank you. 10 ACTING PRESIDENT GRIFFO: Senator 11 Thompson, how do you vote? 12 SENATOR THOMPSON: I vote in 13 support of the bill. 14 ACTING PRESIDENT GRIFFO: Senator 15 Thompson in the affirmative. 16 Is there any other Senator wishing 17 to explain their vote? 18 Senator Diaz. 19 SENATOR DIAZ: Thank you, 20 Mr. President. 21 I'm reading the introduction of 22 this bill, and it says: "The purpose of this 23 legislation is to implement the Senate Small 24 Business Assistance Package. This plan will 25 eliminate the corporate franchise tax for

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(518) 371-8910 1 manufacturers, provide direct property tax 2 relief checks to small businesses, provide tax 3 relief for businesses that pay personal income 4 tax credits for the cost of energy, and reduce 5 the cost of doing business in New York for 6 small businesses and farmers." 7 Well, Mr. President and fellow 8 members, I am a Democrat. And this 9 Democrat -- and I'm speaking only for me, not 10 for my conference -- this Democrat, this one, 11 Reuben Diaz, who represents the 32nd 12 Senatorial District in the Bronx, I hate tax 13 increases. Every time that I see anybody 14 proposing tax cuts, that I love. I don't like 15 tax increases. Our people are fed up with tax 16 increases. 17 They say that we Democrats -- they 18 say that we Democrats, there is no tax that we 19 don't love. But this Democrat hates tax 20 increases. And this one, I'm supporting this 21 legislation because it contains tax increases. 22 And, ladies and gentlemen -- I mean tax cuts. 23 Sorry. Sorry. Slip of the tongue. Tax cuts. 24 And I congratulate Senator Bruno. 25 And whoever submits any legislation that

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(518) 371-8910 1 contains tax cuts, I will always support it. 2 Tax increases are not good for the people of 3 the State of New York, no matter what, 4 especially for senior citizens. Tax increases 5 are hurting our economy, are hurting our 6 people, are hurting our manufacturers, are 7 hurting everybody. 8 So, ladies and gentlemen, let's 9 stop this bickering who's at fault. If the 10 Republican Party submits a good bill, 11 including tax cuts, I will support that. If 12 the Democratic conference submits a bill 13 increasing the tax, I will oppose that. 14 Whoever submits a bill that includes tax cuts, 15 I will support. 16 However, let me tell you something, 17 ladies and gentlemen. They keep saying that 18 we are the dysfunctional -- the most 19 dysfunctional legislature in the country. And 20 that was supposed to end at Day One. We are 21 over Day One, and we're still fighting and 22 being dysfunctional. 23 So maybe we had great hopes, when 24 the new Governor came, to see we'd stop this. 25 But let's stop the fights, the bickering. The

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(518) 371-8910 1 Governor and the Legislature have to work 2 together. Let's do tax cuts for the State of 3 New York, and let's legislate and stop the 4 dysfunctional parts of the Legislature. 5 Thank you very much. 6 ACTING PRESIDENT GRIFFO: Senator 7 Diaz, how do you vote? 8 SENATOR DIAZ: I am voting 150 -- 9 no, 250 percent in favor of tax cuts in the 10 State of New York. 11 (Applause.) 12 ACTING PRESIDENT GRIFFO: Senator 13 Diaz, 250 percent in the affirmative. 14 Senator Sampson. 15 SENATOR SAMPSON: Thank you, 16 Mr. President. And I too rise in support of 17 this legislation. 18 I want to thank the Majority 19 Leader. And as my colleague next to me, 20 Senator Diaz, says he supports tax cuts. I 21 pay enough in taxes, and I do support tax 22 cuts. 23 This is not an upstate/downstate 24 issue. This is about the citizens of New York 25 State, and that's what it's all about. You

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(518) 371-8910 1 know, as Senator Johnson said, what happened 2 to last year? What happened to the anger and 3 frustration 10 years ago? What happened to 4 the anger and frustration 12 years ago? 5 It's not about passing the buck, 6 it's all about working together to make sure 7 that we show small businesses in all regions 8 of this state that we understand their 9 frustration, their anger, and at the same time 10 we want to pass tax cuts that are beneficial. 11 A lot of times we pass tax cuts for 12 these big corporations, which we call 13 corporate welfare. But it's the mom-and-pop 14 small business operations that have sustained 15 this society, and we need to show them a sense 16 of gratitude by supporting these tax cuts. 17 Thank you, Mr. President. 18 ACTING PRESIDENT GRIFFO: Senator 19 Sampson, how do you vote? 20 SENATOR SAMPSON: I vote yes. 21 ACTING PRESIDENT GRIFFO: Senator 22 Sampson, in the affirmative. 23 Senator LaValle, to explain his 24 vote. 25 SENATOR LaVALLE: Thank you,

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(518) 371-8910 1 Mr. President. I rise to explain my vote. 2 I hate to make a comment, 3 particularly when Senator Johnson made his 4 maiden speech here in the Senate. But this 5 proposal is not a Johnny-come-lately proposal 6 but simply builds on proposals that Senator 7 Bruno and our Majority have advocated for 8 years. 9 So if we look at the record, this 10 is just continuing in this year, 2007, a 11 proposal that builds on prior initiatives. 12 Whether it be in property tax relief, 13 incentives, tax cuts, or other programs, it is 14 one that we're building upon, but it's not 15 just new. 16 I vote in the affirmative. 17 ACTING PRESIDENT GRIFFO: Senator 18 LaValle casts his vote in the affirmative. 19 Senator Marcellino, to explain his 20 vote. 21 SENATOR MARCELLINO: Thank you, 22 Mr. President. 23 Senator LaValle eloquently stated 24 pretty much everything I was going to state, 25 that this bill has been here before in many

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(518) 371-8910 1 forms. This house has a record of passing tax 2 cuts and aid to small businesses all over the 3 state. 4 If you want to know why it hasn't 5 happened and why we're still trying to pass 6 these bills and we don't have them in fact in 7 complete compliance and law the way we would 8 like them to be, I suggest we look to the 9 other end of this building and find out why 10 many of these bills and most of these bills 11 have never come to the floor in the other 12 house for a single vote. 13 I vote aye on this bill. It's 14 about time. 15 ACTING PRESIDENT GRIFFO: Senator 16 Marcellino recorded in the affirmative. 17 Senator Montgomery, to explain her 18 vote. 19 SENATOR MONTGOMERY: Yes, thank 20 you, Mr. President. 21 I want to rise to support this 22 legislation. And I am hopeful because it 23 represents in this house a commitment, 24 hopefully on the part of those of us who are 25 here who represent districts like mine, where

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(518) 371-8910 1 there are a number of small businesses, small 2 manufacturing -- I have the waterfront, I have 3 Farragut, I have Red Hook, I have Sunset Park, 4 waterfront areas, lots of manufacturing 5 businesses. I hope this is going to help 6 them. 7 We're now targeting the right place 8 to have tax cuts, and we're not -- I know that 9 I have some young people in this chamber today 10 looking at us, and they are going to be taking 11 back to the school where they come from, 12 P.S. 307 in Brooklyn, they are going to talk 13 about the fact that they heard Senators, their 14 Senators on the floor discussing something 15 that is very important to them and their 16 future. 17 So I thank you, Mr. President, and 18 I'm proudly going to vote yes on this 19 legislation. Thank you. 20 ACTING PRESIDENT GRIFFO: Senator 21 Montgomery recorded in the affirmative. 22 Senator Volker, to explain his 23 vote. 24 SENATOR VOLKER: Mr. President, 25 very quickly. I usually don't get into these

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(518) 371-8910 1 political discussions, which is what this is, 2 but I have to tell you something. 3 The fellow that created a lot of 4 this nonsense, in my opinion, was the fact 5 that our candidate for governor, John Faso, 6 ran around the state telling about how 7 terrible everything was and so forth. And a 8 smart guy, Eliot Spitzer, stepped in and 9 started talking. 10 And the editorial boards of this 11 state, that are generally not the brightest 12 lights in the world, paid no attention to the 13 fact that this state has cut more taxes in the 14 last 12 years than any state in the union by 15 far. Now, for some reason, they don't want to 16 talk about the fact -- do you know that 17 there's not one major tax that hasn't been cut 18 in this state over the last 12 years? No 19 governor and no legislature has ever cut taxes 20 the way New York has. 21 We've got a long way to go, 22 although I would say to you people in New York 23 City, you have some of the lowest real 24 property taxes but your other taxes are very 25 high. It's us upstate, it's the suburban

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(518) 371-8910 1 people that have the big real property taxes, 2 not the city. The city is low. Buffalo has 3 some of the lowest real property taxes in the 4 entire Northeast. But see, we don't hear that 5 stuff, because people don't talk about it. 6 But when you're talking about a 7 chamber that has cut taxes and for small 8 businesses, I'll bet you that we have 9 suggested a hundred billion dollars in 10 small-business taxes. Very honestly, and I'm 11 the first to say it, George was really great 12 on big businesses, not quite as good on small 13 business. It was this house that generated 14 all the major tax cuts on small businesses and 15 on real property taxpayers. 16 In fact, my colleague Senator 17 LaValle, who was here, he's the one that 18 devised the STAR program, gave it to George 19 Pataki, and Pataki picked up on it. 20 Now, when you talk about taxes, 21 this state, I think we're now 11th in the 22 country in state taxes. This is the state. 23 Nobody will tell you that; we're 11th. It's 24 overall where we're the leading taxed state in 25 the union. It's all downstate, below Albany.

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(518) 371-8910 1 Once you get above Albany, there's no 2 comparison. I mean, I live in an area whose 3 taxes are one-third to one-fourth what 4 Westchester is. Probably one-fifth of Long 5 Island. 6 The only reason I mention all that 7 is it wasn't our fault that a lot of that 8 happened. But we don't talk about it. It was 9 the people there. The people wanted great 10 schools, they wanted to spend tons of money. 11 But now they're looking to us. So we need to 12 deal with this. 13 The Governor tried to make a deal 14 with New York City and said we'll cut Medicaid 15 and we'll give more money to schools. That's 16 exactly what happened. If you look at the 17 numbers that went into school aid, you'll see 18 that it was deducted almost exclusively out of 19 Medicaid. The problem with that is that hits 20 hospitals and nursing homes. 21 This bill -- which I think probably 22 will pass the other house eventually, because 23 we've got so much money this year. We've got 24 such a surplus that it's a very good 25 possibility it will. So what we need to do is

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(518) 371-8910 1 pass these kind of bills, send them over to 2 the Assembly, and eventually make sure they do 3 them. Because I believe that the Governor 4 ultimately will have to sign some of these 5 bills because of his pledge to cut taxes. And 6 that's what we have to do. 7 This bill has passed this house 8 many times, by the way. I mean, a similar 9 bill. But the thing is, this house -- 10 Democrats and Republicans, by the way -- we 11 have been passing tax-cutting bills for years 12 and years and years. It's the other house 13 that's had trouble with that. 14 So the answer is, yeah, okay, it's 15 fine, this house doesn't have to shrink from 16 anything. We have stood for cutting taxes. 17 Now we have to make sure that the other people 18 in this Capitol do the same thing. 19 I vote aye. 20 ACTING PRESIDENT GRIFFO: Senator 21 Volker recorded in the affirmative. 22 Senator Schneiderman, to explain 23 his vote. 24 SENATOR SCHNEIDERMAN: Thank you, 25 Mr. President.

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(518) 371-8910 1 Like Senator Volker, I don't like 2 to get involved in these political 3 conversations. 4 (Laughter.) 5 SENATOR SCHNEIDERMAN: But, you 6 know, I am a fan of fiction, and I am a fan of 7 fantasy fiction, and I feel that I've had a 8 little treat here this afternoon. We have a 9 massive tax burden in the State of New York 10 due to the budgets passed by this house over 11 the last 12 years. Let's not kid ourselves. 12 Did the size of our government go down? Did 13 it get cheaper? How are we paying for it? 14 We now have got a situation where 15 we've cut some taxes, forcing increases in 16 other taxes. So we shoved everything off on 17 local governments, they raised the property 18 tax, and, oh, my God, we've got a crisis in 19 property taxes. We're shocked, shocked that 20 property taxes are going up. Why are they 21 going up? Because of the budgets we've passed 22 for the last 12 years. 23 So let's be honest about it. This 24 is another bill that reduces certain taxes but 25 does not lower the cost of government. This

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(518) 371-8910 1 house has not been proposing budget cuts. 2 You've been proposing tax cuts that have to be 3 paid for somewhere. 4 So where are we after 12 years of 5 moving the burden around, going further into 6 debt and increasing the size of government 7 every year? We are further in debt than our 8 state has ever been. 9 We have a massive tax burden 10 distributed inequitably because we have so 11 many loopholes and exceptions in our tax code, 12 due to bills like this, it looks like a Swiss 13 cheese. As a result, while we have very high 14 marginal tax rates in certain areas, we 15 generate very little revenue. 16 So, ladies and gentlemen, let's not 17 kid around and pound ourselves on the chest 18 and say, We're right, we cut taxes, the 19 Assembly are the bad guys. Last time I 20 looked, both majorities passed these budgets. 21 Both majorities need to take some 22 responsibility. 23 I'm glad we're having a good open 24 dialogue about this, but we're not going to 25 solve the problem by passing one-house bills,

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(518) 371-8910 1 railing at the Assembly, and then quietly 2 going along and proposing more spending 3 increases without telling the public how we're 4 going to pay for it. 5 I'm going to vote for this bill in 6 the hope that we get to the table this year 7 with the new Governor -- who really, I think, 8 wants more transparency -- in an effort to 9 reduce tax rates in a real way for the people 10 that deserve it and need it, to include means 11 testing, to make sure that we restore some 12 progressivity to the tax code. 13 But let's tone down the rhetoric, 14 ladies and gentlemen. The budget went up 15 under the watch of George Pataki and the 16 majority in this house. Let's not pretend 17 it's not our fault. 18 Thank you. 19 ACTING PRESIDENT GRIFFO: Senator 20 Schneiderman recorded in the affirmative. 21 Senator Duane, to explain his vote. 22 SENATOR DUANE: Thank you, 23 Mr. President. 24 I am reminded, as I listen to 25 people explaining their votes on this, of

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(518) 371-8910 1 something a very wise and my very good friend 2 Norman Adler once said to me in 1991. He 3 said: "When good government and politics come 4 together, it's perfect." 5 I'll be voting yes, Mr. President. 6 Thank you. 7 (Laughter.) 8 ACTING PRESIDENT GRIFFO: Senator 9 Duane recorded in the affirmative. 10 Are there any other members who 11 wish to explain their vote? 12 Senator Stavisky. 13 SENATOR STAVISKY: Yes, very 14 briefly. 15 If the tax picture is as rosy as 16 Senator Volker has described it, I'm just a 17 little confused as to why the upstate economy 18 is in such difficulty. 19 And, secondly, I too am concerned 20 about the tremendous debt that the state is 21 undertaking, particularly -- not only the 22 state debt, but also with the public 23 authorities. 24 Nevertheless, I am optimistic, and 25 I vote yes.

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(518) 371-8910 1 ACTING PRESIDENT GRIFFO: Senator 2 Stavisky recorded in the affirmative. 3 Are there any other members who 4 wish to explain their vote? 5 The chair recognizes Senator Alesi 6 to close. 7 SENATOR ALESI: Thank you, 8 Mr. President. And thank all of my 9 colleagues, especially those who see the 10 wisdom in voting in the affirmative on this 11 bill. 12 I'm going back a few years when one 13 of your most notable colleagues, and a very 14 dear friend of mine, Senator Dollinger, was on 15 the floor debating against a bill. And after 16 I was voting to close, he saw the wisdom of 17 the bill that was before him and actually 18 changed his vote. 19 Now, I'm not predicting that 20 Senator Krueger is going to do that today. 21 But hopefully, after we hear just one more 22 reason why we should pass this bill, the 23 Senator from New York City might decide to 24 change her vote. 25 With regard to Senator Diaz,

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(518) 371-8910 1 250 percent is very much appreciated. 2 However, a little more would have helped. 3 I think that what we're doing for 4 the small businesses in this state is not just 5 a little bit more. It is not something that 6 we should hope for. It is something that we 7 have to recognize that has been proposed in 8 previous years. Not collectively like this, 9 but it has been. And it has been fought by 10 the other side of the aisle far too many 11 times. 12 And so now I'm very encouraged to 13 see that most of the Minority members there 14 recognize that wherever they come from -- not 15 upstate, not downstate -- New York State, 16 Niagara Falls, New York City, that those 17 members also have small business owners in 18 their districts as well, regardless of what 19 the business is. 20 Our economy in New York State 21 survives only because we have small businesses 22 that provide goods and services to the larger 23 businesses that most of the time we focus on 24 when we're talking about helping business 25 survive. But it is those small businesses

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(518) 371-8910 1 that hire 10 or 12 or 20 people. It is the 2 mom and pop that provides the goods and 3 services that we rely on every day. 4 It's the taxicab driver that we 5 helped last year when we passed a cap on the 6 gasoline tax. Which unfortunately some of the 7 members on the other side voted against, 8 thereby voting against the small businesses 9 that they represent. 10 We have an opportunity here to 11 recognize that when we give a tax benefit to 12 major manufacturers, which is the underpinning 13 of this bill, that we're helping all of those 14 small businesses that provides goods and 15 services to those large corporations, those 16 large manufacturers. 17 But the rest of this package 18 focuses on small businesses, as it rightly 19 should, whether it's help for energy costs, 20 whether it's help in filing your income taxes 21 as a small business owner. And I can speak 22 from my own personal experience, not only as 23 chairman of this committee and as one of the 24 architects of this bill, but as a 25 third-generation business owner in this state.

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(518) 371-8910 1 It doesn't matter where this bill 2 was last year, any more than it matters where 3 any of you were last year. We know where we 4 are this year. And this year is what's 5 important. This bill before us today is 6 what's important. 7 This bill sends a message to 8 business, to small businesses, to those people 9 that struggle to make a bottom line so they 10 can pay their mortgage, so they can pay their 11 rent, so they can pay their kids' school 12 tuition, so they can put gasoline in a couple 13 of vans that deliver some bread down the road. 14 It sends a message. It says that we want to 15 help small businesses. We recognize that you 16 have struggles every day in the marketplace, 17 and we don't want to be part of those 18 struggles. We want to be part of your 19 success. 20 For the life of me, I can't imagine 21 why anybody, even on principle, would vote 22 against this. Because what they're saying 23 when they say no, they're saying no to those 24 small business people that live down the 25 street from them, that live on the floor above

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(518) 371-8910 1 them or below them, that live across from 2 them. They're saying no to the people that 3 they go in every day when they buy groceries, 4 when they buy a newspaper, when they bring 5 their dry cleaning -- whatever it is they're 6 doing with those small business people, they 7 do on a daily or weekly basis. When you vote 8 no, you have to look them in the face and say: 9 I didn't want to help you because I don't know 10 where the money is coming from. 11 There isn't an economist in the 12 world that wouldn't agree with results. And 13 the results clearly say, time and time and 14 time again, that when you offer tax 15 incentives, whether reducing the corporate 16 rate or just making a rebate on your property 17 taxes -- which, by the way, should 18 theoretically lower the rent for your tenants, 19 and that's where the savings benefits are -- 20 there isn't anybody that doesn't say the 21 results clearly show when you lower taxes, you 22 create an environment that improves the job 23 picture, that improves the economy, that 24 improves commerce, which means more people 25 working, making more money, and obviously

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(518) 371-8910 1 paying more taxes. 2 But what it really comes down to is 3 this. There are people in this state, people 4 all over the world, that choose to become 5 small business owners for whatever reason. 6 They work hard. They put their blood, sweat 7 and tears into their business. Because if 8 they fail, their business fails, it's over. 9 It's not like a big corporation where if they 10 lose a job, they go on and find something. 11 This is their own blood, sweat and tears 12 that's invested. 13 How can we stand here with any good 14 conscience and say we don't want to help them? 15 How can we stand here and say we don't know 16 where the money is coming from, even though it 17 looks good? How can we stand here and say we 18 don't want to take a chance on that? 19 With all respect to Senator 20 Krueger, she said she doesn't know how we can 21 afford to do this. I would simply say I don't 22 know how we can afford not to. 23 ACTING PRESIDENT GRIFFO: The 24 Secretary will announce the results. 25 THE SECRETARY: Those recorded in

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(518) 371-8910 1 the negative on Calendar Number 37 are 2 Senators Hassell-Thompson, L. Krueger, and 3 Parker. Also Senator Perkins. 4 Ayes, 55. Nays, 4. 5 ACTING PRESIDENT GRIFFO: The 6 bill is passed. 7 Senator Skelos, that completes the 8 noncontroversial reading of the calendar. 9 SENATOR SKELOS: Mr. President, 10 is there any further business to come before 11 the Senate? 12 ACTING PRESIDENT GRIFFO: Not at 13 this time, Senator Skelos. 14 SENATOR SKELOS: In consultation 15 with the Minority Leader, Senator Bruno hands 16 up the following committee assignments and 17 asks that they be filed in the Journal. 18 ACTING PRESIDENT GRIFFO: They 19 will be so filed in the Journal. 20 SENATOR SKELOS: There being no 21 further business to come before the Senate, I 22 move we stand adjourned until Wednesday, 23 February 14th, at 11:00 a.m. 24 ACTING PRESIDENT GRIFFO: On 25 motion, the Senate stands adjourned until

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(518) 371-8910 1 Wednesday, Valentine's Day, February 14th, at 2 11:00 a.m. 3 (Whereupon, at 2:02 p.m., the 4 Senate adjourned.) 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

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