Tuesday, February 3, 2009

1 NEW YORK STATE SENATE 2 3 4 THE STENOGRAPHIC RECORD 5 6 7 8 9 ALBANY, NEW YORK 10 February 3, 2009 11 3:32 p.m. 12 13 14 REGULAR SESSION 15 16 17 18 SENATOR ANDREA STEWART-COUSINS, Acting President 19 ANGELO J. APONTE, Secretary 20 21 22 23 24

Candyco Transcription Service, Inc.

(518) 371-8910 1 P R O C E E D I N G S 2 ACTING PRESIDENT STEWART-COUSINS: 3 The Senate will come to order. 4 I ask everyone present to rise and 5 recite with me the Pledge of Allegiance to our 6 Flag. 7 (Whereupon, the assemblage recited 8 the Pledge of Allegiance to the Flag.) 9 ACTING PRESIDENT STEWART-COUSINS: 10 In the absence of clergy, may we bow our heads 11 in a moment of silence. 12 (Whereupon, the assemblage 13 respected a moment of silence.) 14 ACTING PRESIDENT STEWART-COUSINS: 15 Thank you. 16 The reading of the Journal. 17 The Secretary will read. 18 THE SECRETARY: In Senate, 19 Monday, February 2, the Senate met pursuant to 20 adjournment. The Journal of Friday, 21 January 30, was read and approved. On motion, 22 Senate adjourned. 23 ACTING PRESIDENT STEWART-COUSINS: 24 The Journal stands approved as read.

Candyco Transcription Service, Inc.

(518) 371-8910 1 Presentation of petitions. 2 Messages from the Assembly. 3 Messages from the Governor. 4 Reports of standing committees. 5 Reports of select committees. 6 Communications and reports from 7 state officers. 8 Motions and resolutions. 9 Senator Valesky. 10 SENATOR VALESKY: Yes, Madam 11 President. On behalf of Senator Carl Kruger, 12 I move that Senate Bill 880 be discharged from 13 its respective committee and be recommitted 14 with instructions to strike the enacting 15 clause. 16 ACTING PRESIDENT STEWART-COUSINS: 17 So ordered. 18 Senator Fuschillo. 19 SENATOR FUSCHILLO: Madam 20 President, on behalf of Senator Robach, I move 21 that the following bill be discharged from its 22 respective committee and be recommitted with 23 instructions to strike the enacting clause: 24 Senate Print Number 627.

Candyco Transcription Service, Inc.

(518) 371-8910 1 ACTING PRESIDENT STEWART-COUSINS: 2 So ordered. 3 SENATOR FUSCHILLO: Thank you. 4 ACTING PRESIDENT STEWART-COUSINS: 5 Senator Klein. 6 SENATOR KLEIN: Madam President, 7 there will be an immediate meeting of the 8 Finance Committee in the Majority Conference 9 Room, Room 332. 10 ACTING PRESIDENT STEWART-COUSINS: 11 There will be an immediate meeting of the 12 Finance Committee in the Majority Conference 13 Room, Room 332. 14 SENATOR KLEIN: And in the 15 interim, Madam President, can we stand at ease 16 while the Finance Committee meets. 17 ACTING PRESIDENT STEWART-COUSINS: 18 The Senate stands at ease. 19 (Whereupon, the Senate stood at 20 ease at 3:35 p.m.) 21 ACTING PRESIDENT STEWART-COUSINS: 22 Senator Klein. 23 SENATOR KLEIN: Madam President, 24 there will be an immediate meeting of the

Candyco Transcription Service, Inc.

(518) 371-8910 1 Rules Committee in the Majority Conference 2 Room, Room 332. 3 And the Senate will stand at ease 4 while the committee is meeting. 5 ACTING PRESIDENT STEWART-COUSINS: 6 There will be an immediate meeting of the 7 Rules Committee in the Majority Conference 8 Room, 332. 9 The Senate continues to stand at 10 ease. 11 (Whereupon, the Senate reconvened 12 at 3:56 p.m.) 13 ACTING PRESIDENT STEWART-COUSINS: 14 Senator Klein. 15 SENATOR KLEIN: Madam President, 16 may we at this time take up Legislative 17 Resolution 271. And I ask that the title be 18 read and move for its immediate adoption. 19 ACTING PRESIDENT STEWART-COUSINS: 20 The Secretary will read. 21 THE SECRETARY: By Senator 22 Huntley, Legislative Resolution Number 271, 23 mourning the death of Dr. Gloria Ruby Mae 24 Black, distinguished citizen and devoted

Candyco Transcription Service, Inc.

(518) 371-8910 1 member of her community. 2 ACTING PRESIDENT STEWART-COUSINS: 3 Senator Huntley. 4 SENATOR HUNTLEY: Yes, thank you, 5 Madam President. I would like to give you a 6 little background on Dr. Gloria Black. 7 Dr. Black was a well-known resident 8 in the Queens community. She was in public 9 education for many years; she taught 10 middle-school children. She was widowed, and 11 she decided to go back to school to get her 12 doctorate while she raised three children. 13 She was one of the greatest 14 volunteers; she volunteered with the food 15 program, she volunteered with different 16 churches, the clothing program. She was all 17 over Queens County doing good deeds for 18 people. 19 Dr. Black eventually became the 20 chair of Community Board 12, which is the 21 community board that represents part of my 22 district. At the time she became ill, and 23 everyone said, "Well, she's probably done her 24 last community board meeting," we were

Candyco Transcription Service, Inc.

(518) 371-8910 1 surprised one evening, after she was released 2 from the hospital, she came into the community 3 board to run the meeting. At that time we 4 knew that Gloria Black was just so very, very 5 special. 6 And on the day of her passing, a 7 number of us went to the hospital, a number of 8 my constituents and elected officials, and we 9 had a prayer service for her and we cried with 10 her family. And we did because it came from 11 the heart. 12 She was a dynamic individual. Her 13 daughter, who's following in her footsteps, 14 I'm sure will be referred to as "the young 15 Gloria Black." 16 So I'm standing here today to tell 17 you we have people who are honest, who are 18 loveable, who care about other people. And 19 she is such a role model. 20 So on behalf of all her life, I'm 21 here to tell you that I am honored to be able 22 to stand here today and tell you what a 23 magnificent person that she was. 24 Thank you.

Candyco Transcription Service, Inc.

(518) 371-8910 1 ACTING PRESIDENT STEWART-COUSINS: 2 Thank you, Senator Huntley. 3 Are there any other Senators that 4 wish to be heard on the resolution? 5 The question is on the resolution. 6 All those in favor please signify by saying 7 aye. 8 (Response of "Aye.") 9 ACTING PRESIDENT STEWART-COUSINS: 10 Opposed, nay. 11 (No response.) 12 ACTING PRESIDENT STEWART-COUSINS: 13 The resolution is adopted. 14 Senator Klein. 15 SENATOR KLEIN: Madam President, 16 will the Senate just stand at ease for a 17 couple of minutes. 18 ACTING PRESIDENT STEWART-COUSINS: 19 The Senate will stand at ease. 20 (Whereupon, the Senate stood at 21 ease at 4:00 p.m.) 22 (Whereupon, the Senate reconvened 23 at 4:06 p.m.) 24 ACTING PRESIDENT STEWART-COUSINS:

Candyco Transcription Service, Inc.

(518) 371-8910 1 The Senate will come to order. 2 Senator Smith. 3 SENATOR SMITH: Yes, Madam 4 President. May we at this time adopt the 5 Resolution Calendar in its entirety, with the 6 exception of Legislative Resolution 7 Number 271. 8 ACTING PRESIDENT STEWART-COUSINS: 9 All those in favor of adopting the Senate 10 Resolution Calendar in its entirety, with the 11 exception of Legislative Resolution Number 12 271, please signify by saying aye. 13 (Response of "Aye.") 14 ACTING PRESIDENT STEWART-COUSINS: 15 Opposed, nay. 16 (No response.) 17 ACTING PRESIDENT STEWART-COUSINS: 18 The Resolution Calendar, with the exception of 19 Legislative Resolution Number 271, is adopted. 20 Senator Smith. 21 SENATOR SMITH: Yes, Madam 22 President. May we return to the reports of 23 standing committees. 24 I believe there is a report of the

Candyco Transcription Service, Inc.

(518) 371-8910 1 Rules Committee at the desk. 2 ACTING PRESIDENT STEWART-COUSINS: 3 Reports of standing committees. 4 There is a report of the Rules 5 Committee at the desk. The Secretary will 6 read. 7 THE SECRETARY: Senator Smith, 8 from the Committee on Rules, reports the 9 following bills. 10 Senate Print Number 249A, Senate 11 Budget Bill, an act to amend Chapter 57 of the 12 Laws of 2008; 13 And Senate Print 250A, Senate 14 Budget Bill, an act to amend Chapter 50 of the 15 Laws of 2008. 16 Both bills ordered direct to third 17 reading. 18 ACTING PRESIDENT STEWART-COUSINS: 19 Senator Smith. 20 SENATOR SMITH: Yes, can we 21 please take up Calendar Number 10, Senate 22 Print 249A. 23 ACTING PRESIDENT STEWART-COUSINS: 24 The Secretary will read.

Candyco Transcription Service, Inc.

(518) 371-8910 1 SENATOR LIBOUS: Point of order. 2 Madam President, point of order. 3 ACTING PRESIDENT STEWART-COUSINS: 4 Senator Libous. 5 SENATOR LIBOUS: I believe that 6 the body has to accept the Rules Committee 7 report before it can move on. 8 ACTING PRESIDENT STEWART-COUSINS: 9 Senator Smith. 10 SENATOR SMITH: Madam President, 11 I move to accept the report of the Rules 12 Committee. 13 ACTING PRESIDENT STEWART-COUSINS: 14 All those in favor of accepting the report of 15 the -- 16 SENATOR BONACIC: Madam 17 President, can I be heard on that motion. 18 ACTING PRESIDENT STEWART-COUSINS: 19 Senator Bonacic. 20 SENATOR BONACIC: Thank you, 21 Madam President. 22 You know, this is your first bill 23 that you're putting forward since you've 24 become the majority. No bills were passed in

Candyco Transcription Service, Inc.

(518) 371-8910 1 January, and the first bill is by a message of 2 necessity. And every one of you, in order to 3 win the majority, campaigned on reforming 4 Albany. 5 And I'll be more specific. 6 "Senator Krueger" -- and that's Liz Krueger, 7 by the way -- "and Senate Democrats propose 8 sweeping legislative reform package." And one 9 of those things was to prohibit off-the-floor 10 committee meetings. Everything was going to 11 be open and transparent. 12 And the phrase, and I'm quoting 13 Senator Liz Krueger, "The phrase 'reforming 14 Albany' is very catchy, as proven by how many 15 people use it come election time. However, it 16 should be more than a campaign slogan, it 17 should be a promise we make and keep. We are 18 losing the confidence of voters," Senator Liz 19 Krueger said. 20 And you all embraced it. 21 Now, we're not off to a good start. 22 We're going to -- this was our first act, we 23 were going to be bipartisan. Senator Valesky 24 and I are cochairing how we're going to change

Candyco Transcription Service, Inc.

(518) 371-8910 1 the rules and make them fairer, the Senate 2 rules. We're going to have public hearings. 3 But the first act is an act that 4 asks the question should you be trusted. You 5 are not keeping your campaign promises. You 6 have put a budget bill out with a message of 7 necessity that we could have done in December. 8 We could have done it on Friday, when it could 9 have aged. 10 Something as important as this, 11 where we got the bill at 12 noon -- the media 12 didn't have a chance, really, to analyze it, 13 the public didn't have a chance to analyze it, 14 and 30 Senators that represent over 48 percent 15 of the constituency was not even asked what 16 their thoughts were, as if they had no 17 experience or institutional knowledge. 18 Shame on you. I hope you get 19 better. 20 ACTING PRESIDENT STEWART-COUSINS: 21 Senator Griffo. 22 SENATOR GRIFFO: Thank you, Madam 23 President. 24 You know, as we began this year, we

Candyco Transcription Service, Inc.

(518) 371-8910 1 heard a lot of talk and we read a lot of 2 articles in newspapers and people on 3 television shows talking about how it would be 4 different, change that would come to this 5 chamber. It would be more -- people would be 6 included. 7 And this is proving that what we've 8 seen in the recent week is that people have 9 been excluded, not included. They have talked 10 about how it would be a more open process, but 11 this is extremely closed. More transparency, 12 but this is so murky as to how this has all 13 developed. 14 So many people not having 15 information to share with constituents who are 16 throughout all of our offices over the last 17 two days asking about what would be taking 18 place. To me, that is not an openness, that 19 is something that, as Senator Bonacic said, we 20 should be ashamed of. 21 You know, this fall you had a 22 president who campaigned on "change we can 23 believe in," inaugurated just a couple of 24 weeks ago. And today, is this change we can't

Candyco Transcription Service, Inc.

(518) 371-8910 1 believe in? Change that you talked about, 2 that you've said we would see on such a major 3 piece of legislation that people have not had 4 input in, people have not had a chance to 5 review, to discuss, and to be able to talk and 6 communicate with constituents about the impact 7 that it would have? 8 So I don't know, I just worry. 9 Because if this is the way we're starting, I 10 shudder to think where it will continue to go. 11 I hope that we can borrow again from the new 12 President, and when he says "yes we can," I 13 hope that the rules changes and the reforms 14 that we've heard about, we can see and 15 embrace. 16 But today is not a good day for 17 that, and it's an unfortunate day. 18 Thank you, Madam President. 19 ACTING PRESIDENT STEWART-COUSINS: 20 Thank you, Senator. 21 The motion is on the floor to 22 accept the report of the Rules Committee. All 23 those in favor of accepting the report of the 24 Rules Committee signify by saying aye.

Candyco Transcription Service, Inc.

(518) 371-8910 1 (Response of "Aye.") 2 ACTING PRESIDENT STEWART-COUSINS: 3 Opposed, nay. 4 (Response of "Nay.") 5 ACTING PRESIDENT STEWART-COUSINS: 6 The ayes have it. The report is accepted. 7 Senator Smith. 8 SENATOR SMITH: Madam President, 9 can we take up Senate Supplemental Calendar 10 Number 2A. 11 ACTING PRESIDENT STEWART-COUSINS: 12 The Secretary will read. 13 THE SECRETARY: Calendar Number 14 10, Senate Budget Bill, Senate Print 249A, an 15 act to amend Chapter 57 of the Laws of 2008, 16 relating to providing for the administration 17 of certain funds. 18 ACTING PRESIDENT STEWART-COUSINS: 19 Senator Smith. 20 SENATOR SMITH: Thank you very 21 much, Madam President. 22 Colleagues, you and I both know 23 that over the last two -- 24 SENATOR LIBOUS: Madam President,

Candyco Transcription Service, Inc.

(518) 371-8910 1 point of order. Is there a message on this 2 bill? 3 ACTING PRESIDENT STEWART-COUSINS: 4 Senator Smith, I believe there is a message of 5 necessity at the desk. 6 SENATOR LIBOUS: Madam President, 7 I don't believe we accepted a message of 8 necessity. I didn't hear it. I didn't hear a 9 vote. 10 ACTING PRESIDENT STEWART-COUSINS: 11 Senator Smith. 12 SENATOR SMITH: Yes, Madam 13 President. I move that we accept the message 14 of necessity. 15 SENATOR LIBOUS: Madam President, 16 could we have a slow roll call on the message, 17 please. 18 ACTING PRESIDENT STEWART-COUSINS: 19 Senator Libous, the rules do not provide for a 20 slow roll call on a motion to accept a message 21 of necessity. 22 SENATOR LIBOUS: I appeal the 23 ruling of the chair, Madam President, and I 24 want to explain -- can I ask to be heard?

Candyco Transcription Service, Inc.

(518) 371-8910 1 ACTING PRESIDENT STEWART-COUSINS: 2 Senator Libous, you may be heard. 3 SENATOR LIBOUS: Madam President, 4 it's extremely important, as this process 5 unfolds here today, and as Senator Bonacic and 6 Senator Griffo shared, that as we start off 7 the first piece of legislation to come before 8 this house under new leadership, that the 9 people -- not the members, so much, of this 10 legislative body, but the people have an 11 opportunity to share in this process. 12 As was said earlier, you know, we 13 received the bill at 12 o'clock noon, and I'm 14 sure that we'll talk a little bit more about 15 that as we move forward. 16 But to deny us an opportunity so 17 that each member could stand up and let their 18 constituents know how they voted -- not by a 19 voice vote, but by an individual vote -- I 20 think is appalling. 21 And we request that right so that 22 each of us know where we stand on this motion. 23 ACTING PRESIDENT STEWART-COUSINS: 24 The question is on the appeal of the chair's

Candyco Transcription Service, Inc.

(518) 371-8910 1 ruling. All those in favor that the chair is 2 out of order please signify by raising your 3 hand. 4 Announce the results. 5 THE SECRETARY: Ayes, 29. Nays, 6 32. 7 ACTING PRESIDENT STEWART-COUSINS: 8 The ruling of the chair stands. 9 Senator Smith. 10 SENATOR SMITH: Madam President, 11 I move to accept the message of necessity. 12 ACTING PRESIDENT STEWART-COUSINS: 13 All those in favor of accepting the message of 14 necessity signify by saying aye. 15 (Response of "Aye.") 16 ACTING PRESIDENT STEWART-COUSINS: 17 Opposed, nay. 18 (Response of "Nay.") 19 ACTING PRESIDENT STEWART-COUSINS: 20 The ayes have it. The message is accepted. 21 Senator Smith. 22 SENATOR SMITH: Madam President, 23 on the bill. 24 ACTING PRESIDENT STEWART-COUSINS:

Candyco Transcription Service, Inc.

(518) 371-8910 1 Senator Smith, on the bill. 2 SENATOR SMITH: Yes, Madam 3 President. It is now 4:20, and we are here 4 today to send a message to the 19.5 million 5 people of the State of New York that their 6 faith and trust can be restored as it relates 7 to this body. 8 Over the last four to eight years, 9 there's been concern -- 10 SENATOR LIBOUS: Madam President, 11 is this a controversial calendar or a 12 noncontroversial calendar? 13 ACTING PRESIDENT STEWART-COUSINS: 14 This is a noncontroversial calendar, Senator. 15 SENATOR LIBOUS: Lay the bill 16 aside. 17 ACTING PRESIDENT STEWART-COUSINS: 18 The bill is laid aside. 19 Senator Smith. 20 SENATOR SMITH: Madam President, 21 can we please take up Calendar Number 11, 22 Senate Print -- 23 SENATOR LIBOUS: Madam President, 24 I believe there are amendments at the desk.

Candyco Transcription Service, Inc.

(518) 371-8910 1 Could I have them read. 2 Lay this bill aside. 3 ACTING PRESIDENT STEWART-COUSINS: 4 We're not on the bill yet. 5 SENATOR LIBOUS: I got it. 6 ACTING PRESIDENT STEWART-COUSINS: 7 The Secretary will read. 8 THE SECRETARY: Calendar Number 9 11, Senate Budget Bill, Senate Print 250A, an 10 act to amend Chapter 50 of the Laws of 2008, 11 enacting the Public Protection and General 12 Government Budget. 13 ACTING PRESIDENT STEWART-COUSINS: 14 Senator Smith. 15 SENATOR SMITH: Yes, Madam 16 President. Is there a message of necessity 17 from the Governor at the desk? 18 ACTING PRESIDENT STEWART-COUSINS: 19 There is a message of necessity from the 20 Governor at the desk, Senator Smith. 21 SENATOR SMITH: I move that we 22 accept that message, please, Madam President. 23 ACTING PRESIDENT STEWART-COUSINS: 24 All those in favor of accepting the message of

Candyco Transcription Service, Inc.

(518) 371-8910 1 necessity at the desk signify by saying aye. 2 (Response of "Aye.") 3 ACTING PRESIDENT STEWART-COUSINS: 4 Opposed, nay. 5 (Response of "Nay.") 6 ACTING PRESIDENT STEWART-COUSINS: 7 The message is accepted. 8 SENATOR LIBOUS: Lay that bill 9 aside, Madam President. 10 ACTING PRESIDENT STEWART-COUSINS: 11 The bill is laid aside. 12 SENATOR SMITH: Madam President, 13 can we go back to the controversial calendar, 14 please. 15 ACTING PRESIDENT STEWART-COUSINS: 16 Senator Smith, yes, the Secretary will ring 17 the bell. 18 Senator Smith. 19 SENATOR SMITH: Madam President, 20 can we please take up the controversial 21 calendar, Calendar Number 10, Senate Print 22 249A. 23 ACTING PRESIDENT STEWART-COUSINS: 24 The Secretary will read.

Candyco Transcription Service, Inc.

(518) 371-8910 1 THE SECRETARY: Calendar Number 2 10, Senate Budget Bill, Senate Print 249A, an 3 act to amend Chapter 57 of the Laws of 2008. 4 SENATOR LIBOUS: Madam President. 5 ACTING PRESIDENT STEWART-COUSINS: 6 Senator Libous. 7 SENATOR LIBOUS: Madam President, 8 I believe there are amendments at the desk. 9 Could I ask that we waive the reading and ask 10 for their adoption. 11 ACTING PRESIDENT STEWART-COUSINS: 12 Senator Libous, yes, we will, but first we 13 must acknowledge Senator Smith. 14 SENATOR SMITH: Thank you, Madam 15 President. 16 Madam President, is there a message 17 of appropriation from the Governor at the 18 desk? 19 ACTING PRESIDENT STEWART-COUSINS: 20 Yes, Senator Smith, there is a message of 21 appropriation. 22 SENATOR SMITH: I move we accept 23 the message of appropriation. 24 ACTING PRESIDENT STEWART-COUSINS:

Candyco Transcription Service, Inc.

(518) 371-8910 1 All those in favor of accepting the message of 2 appropriation from the Governor signify by 3 saying aye. 4 (Response of "Aye.") 5 ACTING PRESIDENT STEWART-COUSINS: 6 Opposed, nay. 7 (Response of "Nay.") 8 ACTING PRESIDENT STEWART-COUSINS: 9 The message is accepted. 10 Senator Libous. 11 SENATOR LIBOUS: Madam President, 12 I believe Senator Nozzolio will speak on the 13 amendments. 14 ACTING PRESIDENT STEWART-COUSINS: 15 Senator Nozzolio. 16 SENATOR NOZZOLIO: Madam 17 President, on the amendment. 18 Madam President, there are many 19 items in this legislation thrust upon us today 20 that are troublesome, none the least of which 21 is a $500 million sweep of funds from the 22 New York State Power Authority into the 23 general purposes budget of the state. 24 There are many, many items of this

Candyco Transcription Service, Inc.

(518) 371-8910 1 action that are troublesome. First and 2 foremost, though, in this time of dire 3 economic consequences, to take that much 4 revenue away from those enterprises that are 5 going to be producing jobs is absolutely 6 foolhardy. Particularly, as this sweep takes 7 place, it's going to sweep upstate 8 manufacturing jobs away from New York State. 9 From New York City to Buffalo and 10 every city in between, Power for Jobs has been 11 an excellent economic development tool, a job 12 development tool. I just have a list here of 13 literally hundreds of businesses that 14 represent tens of thousands of jobs, in 15 communities big and small, that rely on Power 16 for Jobs in order to continue their 17 operations. 18 We've heard so much about the 19 upstate economy, so much about how there is 20 sensitivity and a renewed sense of awareness 21 of the problems of the upstate economy. Well, 22 I can guarantee, my colleagues, that if this 23 sweep takes place it will sweep jobs away from 24 upstate New York.

Candyco Transcription Service, Inc.

(518) 371-8910 1 That there are many, many cities 2 impacted, from Cazenovia to Cicero to 3 Oswego -- Seneca Falls, my home area, 4 Rochester, Buffalo. All those manufacturing 5 enterprises that rely on a Power Authority 6 that is a Power Authority that has integrity, 7 that has wherewithal, that has a program like 8 Power for Jobs that this places that program 9 in jeopardy. 10 And to do this today without a 11 thorough analysis of the ramifications, and 12 particularly the job development 13 ramifications, will be -- the result of which 14 will be serious consequences on our upstate 15 economy. 16 This amount of sweep is 17 unprecedented: $300 million-plus this year, 18 $200 million-plus the next year. It is a 19 sweep that will sweep away all opportunity 20 that Power for Jobs was exemplary in upstate 21 New York and all of New York State. 22 I also want to say we've heard so 23 much rhetoric about global warming, about the 24 need to develop renewable resources, about the

Candyco Transcription Service, Inc.

(518) 371-8910 1 need to encourage those developments in 2 New York State. Well, let me say that about 3 19 percent of the power generated in New York 4 State is through renewable resources. And 5 18 percent of that -- excuse me, 18 percent. 6 And almost 95 percent of the renewables are 7 governed by the Power Authority. What are we 8 doing here by jeopardizing the integrity of 9 that enterprise? 10 Last but not least, what about the 11 governmental enterprise of establishing 12 authorities for a particular purpose? We've 13 heard a lot of rhetoric about the need to 14 reform authorities. I guess this is the way 15 authorities are going to be reformed under 16 this administration, and in conspiracy with 17 this Legislature, in effect to sweep away -- 18 that's not a reform. Sweep away without 19 notice is adding insult to injury. 20 And not having the ability to 21 analyze the job development impact of this 22 decision is something that the amendment we 23 proffer today will help to prevent. 24 ACTING PRESIDENT STEWART-COUSINS:

Candyco Transcription Service, Inc.

(518) 371-8910 1 Senator Volker. 2 SENATOR VOLKER: Madam President, 3 most people in this chamber don't remember 4 that before I became the chairman of Codes in 5 1988, I was chairman of Energy. I was 6 succeeded by more capable people, one of whom 7 is sitting to my left here, Jim Seward. 8 But I do know a little bit about 9 energy. First of all, part of the problem is 10 this is not cash. The Power Authority does 11 not have cash. It has hydropower. This is 12 $500 million worth of hydropower, which would 13 be cashed in, I guess, for the use of the 14 Bureau of the Budget. 15 And it's not just Power for Jobs. 16 There is a tremendous amount of hydropower 17 used in Western New York as part of programs 18 that help with companies in Western New York 19 other than Power for Jobs. And the 20 interesting thing about those programs -- 21 something which, by the way, the local 22 newspaper never really understood -- is that 23 that power that is for businesses, if it's not 24 used for businesses, goes back into the

Candyco Transcription Service, Inc.

(518) 371-8910 1 residential grid to help keep power rates 2 down. 3 Western New York has the lowest 4 power costs in the state. Now, downstate 5 costs are extremely high, and there's been all 6 this talk. But the Power Authority's power 7 that has kept rates down, and especially in 8 upstate New York, there's no question. 9 To take this power away -- the 10 problem is, what if we in the near future have 11 an opportunity for a major company that wants 12 to relocate in upstate New York? And in fact, 13 the truth is it wouldn't even necessarily have 14 to be upstate New York. It could be downstate 15 New York. 16 We have sent some hydro to New York 17 City after the 9/11 problem because New York 18 City is in desperate need of power. When the 19 towers are rebuilt, New York City will be at 20 100 percent of need for power. They have been 21 way off in the power needs. We provide, in 22 upstate New York, most of the power for 23 New York City. It's no secret. That's one of 24 the reasons we want this clean coal, because

Candyco Transcription Service, Inc.

(518) 371-8910 1 we want to get power down to New York City. 2 But nobody seems to want to pay any attention 3 to it. 4 But the big thing here is what 5 we're doing here is as part of a sweep for 6 money, we're eliminating hydropower, 7 basically, selling it off, and saying we're 8 going to use it now to help get rid of a 9 budget gap, not worry about economic 10 development, not worry about taking care of 11 jobs throughout the state. It's really wrong. 12 And it's something that I think we should 13 really look at. 14 It also presents an interesting 15 question that should be looked at. The 16 Federal Energy Regulatory Commission, a group 17 called FERC, oversees hydropower throughout 18 the state and particularly in Western 19 New York. They just approved new contracts 20 for businesses in Western New York. We almost 21 lost the contracts because some people in 22 Western New York wanted to put hydropower on 23 the waterfront and cash in $2.5 million worth 24 of hydropower to put to give to the

Candyco Transcription Service, Inc.

(518) 371-8910 1 waterfront, and Congressman Tom Reynolds made 2 an agreement with the Federal Energy 3 Regulatory Commission to avoid them blocking 4 the contracts. Which of course was never 5 reported because that's, you know, the way 6 things are. 7 But the truth is I'm not sure what 8 taking away this kind of hydropower does to 9 any contracts and agreements through the 10 Federal Energy Regulatory Commission. And I'm 11 going to have to look at that. And we're 12 going to have to contact them and ask them 13 whether this could be a violation of the rules 14 and regulations of the Federal Energy 15 Regulatory Commission. 16 And if, God forbid, it is, it could 17 endanger jobs throughout the -- I'm not saying 18 it is. I don't know. But I do tell you that 19 this is the biggest power grab, to my 20 knowledge, in the history of the State of 21 New York. And I just think it's wrong. 22 And I would just ask Governor 23 Paterson's people that they had better check 24 into this and do it fast, because this could

Candyco Transcription Service, Inc.

(518) 371-8910 1 be very, very dangerous. 2 ACTING PRESIDENT STEWART-COUSINS: 3 Thank you, Senator Volker. 4 Senator Ranzenhofer. 5 SENATOR RANZENHOFER: Thank you, 6 Madam President. 7 This is the first opportunity that 8 I have risen to speak, and I appreciate the 9 opportunity to do so, I guess primarily 10 because it's the first bill that we've 11 actually acted on since I've been here. And 12 this is one that really hits home to me. 13 The reason I decided to run for the 14 Senate when Mary Lou Rath was retiring is 15 because in Western New York and upstate 16 New York, our economy is just being decimated 17 because of the lack of jobs and opportunity. 18 And as a result of that, we have a tremendous 19 exodus of young people. People graduate high 20 school, they go to college, and they don't 21 come back. And the reason why they don't come 22 back is because we don't have the jobs. 23 So I thought that running for the 24 Senate would give me an opportunity to try to

Candyco Transcription Service, Inc.

(518) 371-8910 1 do something about that, so we can create jobs 2 and opportunity for our youth. 3 And it's ironic that the very first 4 time that I have the opportunity to stand up 5 and speak in front of my colleagues, that I 6 have to speak about an item which is very 7 hurtful to the community that I represent and 8 the community that's represented by members 9 here from Western New York and Central 10 New York and, quite frankly, all of upstate 11 New York. 12 What we need to do, in my opinion, 13 is not to take actions which are going to just 14 accelerate the exodus of people and job 15 opportunities from upstate New York, Western 16 New York in particular. And the fact is that 17 we are allowing this Power for Jobs program 18 and power which could be used for 19 manufacturing companies, which could be used 20 to lower residential rates, as being slashed. 21 This is really a back-breaker to 22 the middle class, to small business, to 23 companies that really need power in order 24 create jobs. We're not just losing jobs

Candyco Transcription Service, Inc.

(518) 371-8910 1 overseas, we are losing jobs to other states 2 which can just produce jobs and create jobs 3 more economically and more cheaply than 4 New York State. 5 And for the very first time to have 6 the opportunity to speak and to have to defend 7 and have to talk about the fact that we are 8 taking an action which is really going to hurt 9 upstate New York and Western New York really 10 pains me. 11 So I want to say that, I want to 12 put that on the record that I'm opposed to 13 this particular maneuver. I thought that when 14 I came to the Senate we would be taking 15 actions to help our citizens, to help our 16 residents rather than to hurt them. 17 Thank you, Madam President. 18 ACTING PRESIDENT STEWART-COUSINS: 19 Senator Hannon. 20 SENATOR HANNON: Thank you, Madam 21 President. 22 I rise to discuss another part of 23 this amendment, and that is the amendment that 24 would increase what is known as the covered

Candyco Transcription Service, Inc.

(518) 371-8910 1 lives assessment. This is a tax that's put 2 onto health insurance premiums. And in the 3 Deficit Reduction Act, there's a $240 million 4 increase in this tax. 5 In recent years, since this was 6 originally enacted, this tax has increased by 7 30 percent. But this increase alone would, 8 downstate, increase premiums for the average 9 family by $300 to $400 and upstate increase 10 premiums by $150 to $200. 11 It's illogical, it's 12 counterintuitive as to why would we be doing 13 something to tax when we're trying to increase 14 the number of individuals and families in this 15 state who are covered by health insurance. 16 And the covered lives assessment is 17 not the only thing that we're doing along this 18 line. We are increasing the assessment on 19 those costs of the Insurance Department known 20 as the 332 assessment. It's another tax. 21 It's increased in this main bill by 22 $170 million. Once again, that's going to 23 flow right through to the individual families, 24 the individuals who are covered by health

Candyco Transcription Service, Inc.

(518) 371-8910 1 insurance. 2 I don't understand it. We're 3 looking in Washington for health reform. 4 We're told there is, someplace in the 5 administration, a universal health proposal. 6 And what are we doing? We're going to be 7 imposing a tax. And we know, when you raise 8 the premiums, people drop their insurance. It 9 doesn't make a heck of a lot of sense. 10 What also doesn't make any sense is 11 the fact that this is not all part of the 12 deficit reduction. Not all of this money goes 13 to be appropriated or imposed before the 31st 14 of March 2009. A big bulk of it goes into the 15 2009-2010 fiscal year. Why is that illogical? 16 Because we have the House of Representatives, 17 we have the U.S. Senate acting with very 18 deliberate speed -- it's already passed the 19 House of Representatives -- on an economic 20 stimulus bill. 21 It proposes in that bill, in both 22 versions, significant amounts of money that 23 would come to New York that would be available 24 for healthcare that would add many people to

Candyco Transcription Service, Inc.

(518) 371-8910 1 the eligibility of who can get healthcare. 2 And what are we doing? We're going the other 3 way. 4 I mean, many of us have heard what 5 happened in Massachusetts when they went to 6 their almost a hundred percent coverage plan. 7 There, they fined people if you didn't have 8 insurance coverage for health. 9 Now what we're proposing to do is 10 to tax you if you have it. I mean, this is 11 just an illogical progress of what we're 12 doing. I don't think that -- I just don't 13 think this is the way to go. 14 There's some other parts of this 15 bill that I'll discuss in the main, but the 16 amendment deals with knocking these two taxes 17 out, and I think it should be supported by 18 everybody in this chamber. 19 ACTING PRESIDENT STEWART-COUSINS: 20 Thank you, Senator. 21 Senator Maziarz. 22 SENATOR MAZIARZ: Thank you very 23 much, Madam President. If I could just switch 24 gears back to the Power Authority sweep for

Candyco Transcription Service, Inc.

(518) 371-8910 1 just a couple of minutes. 2 I want to start by saying that the 3 Power Authority is, in my opinion, not a very 4 well-run public agency in the State of 5 New York. It has become in some respects a 6 political dumping ground. It's been saddled 7 with some extremely poor decisions and 8 requirements by, and I want to say this loud 9 so that everybody can hear it, by Republican 10 governors and Democratic governors. 11 It should be the best tool that we 12 have for economic development and job creation 13 in this state. When under a Republican 14 governor we did a sweep like this -- like 15 this. Nowhere near to the extent of what 16 you're doing here today. I think that sweep 17 was like $47 million -- it was bad public 18 policy. A sweep of $500 million is worse. 19 What this means is that power that 20 is generated in Senator Aubertine's district, 21 power that is generated in Senator Griffo's 22 district, and one whole hell of a lot of power 23 that is generated in my district is going to 24 have to be sold to fund this $500 million

Candyco Transcription Service, Inc.

(518) 371-8910 1 budget gaffe. 2 So when we go with a particular 3 economic development job creation project to 4 the Power Authority and say we need, oh, 5 35 megawatts of power for a steel plant, 6 they're going to say: We don't have it, we 7 had to sell it in order to fund that 8 $500 million sweep that you did. 9 This bill, if you vote for this 10 bill, this bill hurts Western New York. 11 Senator Ranzenhofer was absolutely right. 12 This bill will cost jobs, economic development 13 in Western New York. This bill will cost jobs 14 in Senator Aubertine's district. This bill 15 will cost jobs in the Rome-Utica area that 16 Senator Griffo represents. 17 I want to end by saying this was 18 bad public policy under a Republican governor, 19 it's bad public policy under a Democratic 20 governor. This is a bad bill for upstate 21 New York. 22 Vote for this amendment. Vote for 23 creating jobs in Senator Aubertine's district 24 and Senator Griffo's district, but mostly in

Candyco Transcription Service, Inc.

(518) 371-8910 1 my district. 2 Thank you. 3 ACTING PRESIDENT STEWART-COUSINS: 4 Thank you, Senator. 5 Senator Winner. 6 SENATOR WINNER: Thank you, 7 Madam President. On the amendment. 8 I rise in support of the amendment, 9 but I want to get back a little bit as to why 10 we're here with this amendment. And the 11 reason why we're here with this amendment is 12 once again what Senator Bonacic and Senator 13 Griffo pointed out, which was the absolutely 14 outrageous hypocrisy involved with the 15 newfound rules-following by the Majority 16 here -- whereby we had not just three men in a 17 room, but three New York City Democrats in a 18 room -- that produced this particular deficit 19 reduction plan that some of us said during the 20 campaigns and before we got up here this 21 January that, you know, upstate certainly is 22 at some risk here. We don't have anymore 23 balance of power here or checks and balances 24 that the Republicans had provided, and some

Candyco Transcription Service, Inc.

(518) 371-8910 1 assistance in looking out for the interests of 2 New York. 3 Lots of people said, Well, it 4 doesn't really matter, we'll look out for 5 upstate New York. And the first bill that 6 we've got here to look out for upstate 7 New York is a real body blow to upstate 8 New York. 9 You know, we have some problems as 10 far as costs of doing business in this state, 11 and we have to have some viable economic 12 development plans and we have to have some 13 ability to have some type of growth to get 14 ourselves out of the mess that we're in. And 15 in order to have growth, you've got to have 16 some ability to attract business and industry 17 into our state, be able to compete with other 18 states, be able to compete in the global 19 economy. 20 And things that make it 21 noncompetitive are the things that we're 22 talking about today in the form of this 23 amendment. We need to do something about the 24 cost of power, and we need to do something

Candyco Transcription Service, Inc.

(518) 371-8910 1 about the cost of healthcare, notwithstanding 2 the fact that we obviously need to do 3 something about real property taxes and the 4 regulatory climate and all the other 5 noncompetitive things that we have in New York 6 State. 7 But what are we doing here? We're 8 increasing the costs of power, particularly to 9 upstate New York. We're increasing the costs 10 of health insurance by the form of this 11 covered lives tax and the 332 assessment. 12 Obviously we're not doing anything in the main 13 in Governor Paterson's proposed budget as it 14 relates to economic development. 15 In fact, he's gutting the Empire 16 Zone program in its entirety, the only 17 mechanism that we have in the whole world to 18 deal with these noncompetitive items. And yet 19 the first thing that we've got on the agenda, 20 the first bill of the Democrat majority is to 21 further make us noncompetitive in New York, 22 and particularly upstate New York. 23 And if that isn't a validation of 24 the concerns that most of us had in upstate

Candyco Transcription Service, Inc.

(518) 371-8910 1 New York about what might happen to us if we 2 didn't have any checks and balances or any 3 protection -- I mean, here it is in black and 4 white. 5 This is unbelievable. The Power 6 Authority can't get this money to the General 7 Fund without preventing it from being 8 available to lower the cost of power to many 9 of the manufacturing facilities in upstate 10 New York, in Western New York in particular. 11 When we talked about trying to do 12 Power for Jobs in the last couple of years, 13 when we talked about how to fund Power for 14 Jobs, we had to find out how we could get the 15 Power Authority the money in order to 16 subsidize the power that they were going to 17 deliver to the manufacturing facilities that 18 we want to provide the power to to provide the 19 number of jobs that we have. 20 So what we have here is an 21 undoubted and absolute assault on upstate 22 New York. And it is really a testament to the 23 warnings that we put out there that what was 24 going to happen in the state. And I am

Candyco Transcription Service, Inc.

(518) 371-8910 1 fearful that this is only the beginning and 2 that, without some type of reversal of this 3 type of attitude and proposals, we are going 4 to see nothing other than further guidelines 5 in our upstate regions. 6 I urge the adoption of this 7 amendment. 8 ACTING PRESIDENT STEWART-COUSINS: 9 Thank you, Senator. 10 Senator Seward. 11 SENATOR SEWARD: Thank you, 12 Madam President. 13 I also rise in support of the 14 amendment on the floor. And I'd like to build 15 on the comments of Senator Hannon in terms of 16 the impact on insurance consumers in New York 17 State, the impact of this deficit reduction 18 package without the amendment passing before 19 us. 20 You know, let's face it, one of the 21 primary concerns of a family sitting around 22 the kitchen table every night for dinner is 23 the expense in terms of how they are going to 24 continue to afford health insurance for

Candyco Transcription Service, Inc.

(518) 371-8910 1 themselves and their families. Or how are 2 they ever going to get health insurance for 3 themselves and their families. 4 And at a time when both in 5 Washington and in most other state capitals 6 the legislators and governors are seeking 7 innovative ways to make healthcare and health 8 insurance coverage more affordable for small 9 businesses, for families in those other 10 jurisdictions, what are we doing here in 11 New York with the first piece of legislation 12 coming before the New York State Senate in the 13 year 2009? 14 We are not only protecting the 15 status quo, we are making it worse by driving 16 up healthcare taxes at a time when New Yorkers 17 can least afford it -- $240 million, a 18 one-third increase in taxes on health 19 insurance policies. One-third increase on 20 taxes on health insurance policies. 21 Businesses are already struggling 22 to meet the soaring costs of health insurance 23 and healthcare costs. And what are they going 24 to do when this cost is potentially passed on

Candyco Transcription Service, Inc.

(518) 371-8910 1 to them? They're either going to pass that 2 cost on to their employees, who can ill-afford 3 it, or many small businesses in particular are 4 going to have to make that tough decision to 5 drop health insurance entirely for their 6 employees. 7 That's a dilemma that's being 8 forced upon too many small businesses, too 9 many families in New York State if this piece 10 of legislation passes. This is a financial 11 killer for small businesses and families in 12 New York State who are struggling to afford 13 health insurance for themselves and their 14 families. 15 It's a job killer also. By raising 16 tax on health insurance, this legislation 17 would make it more costly to do business here 18 in New York State at a time when we should be 19 going the other way and backing costs out of 20 doing business in New York. Let's attract 21 business and new jobs to New York rather than 22 driving it out through higher costs, through 23 higher taxes in this case on their health 24 insurance. It's the wrong way to go.

Candyco Transcription Service, Inc.

(518) 371-8910 1 What's it going to cost? I'll 2 repeat what Senator Hannon said. This 3 translates into an annual health insurance 4 premium increase of $300 to $400 for downstate 5 residents. That's not going to give them any 6 new coverage, that's not going to do anything 7 for them except drive up their costs and 8 potentially they'll lose their coverage. 9 Upstate, it's a $150 to $200 annual increase 10 for upstate residents just because this bill 11 may pass the New York State Senate this 12 afternoon. 13 And this bill doesn't just hurt 14 health insurance consumers, this bill hurts 15 insurance consumers of all types because of 16 the increased assessments -- now, I'll call 17 them taxes -- on all insurers in New York 18 State in terms of their assessments to fund 19 the Insurance Department. 20 In other words, this money should 21 go to operate the Insurance Department. That 22 was the original intent of these assessments. 23 But this deficit reduction plan before us goes 24 way beyond that, $177-plus million of

Candyco Transcription Service, Inc.

(518) 371-8910 1 increased taxes on life insurance, on 2 homeowner's insurance, on auto insurance 3 through increased taxes on all forms of life 4 and P&C taxes -- not to fund the operation of 5 the Insurance Department, but just to merely 6 flow through the Insurance Department out for 7 other purposes in the state budget. 8 So, Madam President and my 9 colleagues, please support this amendment if 10 you want to give a break to hard-pressed small 11 businesses, hard-pressed families in New York 12 State who are struggling to afford health 13 insurance, struggling with their homeowner's 14 insurance premiums and their auto insurance 15 premiums to boot. 16 You know, a yes vote for this 17 deficit reduction plan is a no vote for 18 insurance consumers in New York State. 19 Because I will remind you, you are not taxing 20 insurance companies with these new assessments 21 and these new taxes. The insurance companies 22 will not pay this bill. Insurance consumers 23 and premium payers are going to pay this bill 24 through higher premiums. That is the result

Candyco Transcription Service, Inc.

(518) 371-8910 1 if this deficit reduction plan passes today. 2 My colleagues, there's got to be a 3 better way to deal with our deficit than to 4 hit these small businesses and these insurance 5 consumers of our state. 6 I support fully this amendment, and 7 I urge its passage. 8 ACTING PRESIDENT STEWART-COUSINS: 9 Thank you, Senator. 10 Senator Bonacic. 11 SENATOR SMITH: Madam President, 12 point of order. 13 ACTING PRESIDENT STEWART-COUSINS: 14 Senator Smith. 15 SENATOR SMITH: Yes, Madam 16 President, under Senate Rule IX, subsection 17 3(d), debate on a motion is limited to 18 30 minutes per conference. I ask that we 19 bring the amendment up for a vote, please. 20 ACTING PRESIDENT STEWART-COUSINS: 21 Secretary, please ring the bell. 22 Senator Farley, why do you rise? 23 SENATOR FARLEY: I would like to 24 speak, if I might, on this amendment.

Candyco Transcription Service, Inc.

(518) 371-8910 1 Generally speaking, we've extended the 2 courtesy to speak. I'd like to speak on this 3 amendment, if I could. 4 ACTING PRESIDENT STEWART-COUSINS: 5 Senator Farley, the rules preclude any 6 discussion on this -- 7 SENATOR FARLEY: I'm asking the 8 Majority Leader if I may have permission to 9 speak. 10 ACTING PRESIDENT STEWART-COUSINS: 11 Senator Farley, we're going to proceed to a 12 roll-call vote. 13 SENATOR LIBOUS: Madam President, 14 point of order. 15 ACTING PRESIDENT STEWART-COUSINS: 16 Senator Libous. 17 SENATOR LIBOUS: Was Senator 18 Farley denied an opportunity to speak on the 19 floor? 20 ACTING PRESIDENT STEWART-COUSINS: 21 Absolutely not. Senator Farley was out of 22 order. He was speaking to the Majority 23 Leader. 24 And at this point I think you

Candyco Transcription Service, Inc.

(518) 371-8910 1 heard, Senator Libous, that we have begun to 2 ring the bells. 3 SENATOR LIBOUS: So he was denied 4 an opportunity to speak. The Majority Leader 5 denied him an opportunity to speak on the 6 floor? 7 ACTING PRESIDENT STEWART-COUSINS: 8 We've exhausted the time to debate on the 9 bill. I think that's what you heard. 10 SENATOR FARLEY: I didn't hear 11 that. I thought I asked the Majority Leader 12 if I might have permission to speak, but 13 apparently I don't get an answer. 14 ACTING PRESIDENT STEWART-COUSINS: 15 On the amendment, the Secretary will call the 16 roll. 17 (The Secretary called the roll.) 18 ACTING PRESIDENT STEWART-COUSINS: 19 All those in favor of the amendment please 20 raise your hand. 21 SENATOR LIBOUS: Madam President, 22 slow roll call on the amendment. 23 ACTING PRESIDENT STEWART-COUSINS: 24 A slow roll call not in order. It is in order

Candyco Transcription Service, Inc.

(518) 371-8910 1 on the final passage of the bill. 2 SENATOR LIBOUS: Can you recite, 3 Madam President, the rule, please? 4 ACTING PRESIDENT STEWART-COUSINS: 5 Rule VIII, Section 6, subparagraph (b) allows 6 for a slow roll call on the bill. This is a 7 non-sponsor amendment. 8 SENATOR LIBOUS: Thank you, Madam 9 President. 10 ACTING PRESIDENT STEWART-COUSINS: 11 Those in favor of the non-sponsor amendment 12 please raise your hands. 13 The Secretary will announce the 14 results. 15 THE SECRETARY: Ayes, 29. Nays, 16 32. 17 ACTING PRESIDENT STEWART-COUSINS: 18 The amendment fails. 19 Senator Smith. 20 SENATOR SMITH: Yes, Madam 21 President. On the bill. 22 ACTING PRESIDENT STEWART-COUSINS: 23 Senator Smith on the bill. 24 SENATOR SMITH: Thank you, Madam

Candyco Transcription Service, Inc.

(518) 371-8910 1 President. 2 Colleagues, today we are doing what 3 the people of the state have asked us to do; 4 that is, to do the people's business. Had, in 5 fact, we had taken this bill up back in 6 December, early November, we would not be here 7 today debating whether or not we would be 8 putting this DRP package before us. 9 That being said, our colleagues 10 have taken the time, have done the research, 11 have put forward a bill that while we all know 12 there is much more to be done, this is sending 13 a message not only to the 19.5 million people 14 in the state but also, as some of my 15 colleagues have indicated, we are sending a 16 message to the rating companies who now 17 understand that we can be responsible to 18 balance our budget for this year. 19 We are also sending a message to 20 Washington, D.C., who has also asked the 21 question before they give us our stimulus 22 money, are we being responsible enough and can 23 we be responsible enough to make the tough 24 decisions to balance our budget.

Candyco Transcription Service, Inc.

(518) 371-8910 1 Well, today we are doing that. We 2 are sending a message to our President, Barack 3 Obama, to our Congress. We are sending a 4 message to the rating companies. We are 5 sending a message to the 19.5 million people 6 who have said this body is dysfunctional. 7 They've said that we can't get anything done. 8 They said if you had a Democratic Senate and a 9 Democratic Governor and a Democratic Assembly, 10 nothing will happen. 11 Well, Madam President, today 12 something is happening. And what is happening 13 is what the people have asked for. 14 I heard my colleagues recite 15 numbers. I'm not determining whether or not 16 those numbers were accurate or not. But what 17 I will say is that what we are doing is simply 18 sending a message. All of you are Senators, 19 all of you have been elected, all of you have 20 heard the public, editorial boards as well 21 have come and said to us can we get this done. 22 Now, are the numbers exactly where 23 you want them? Are they perfect? Do they 24 exactly speak to some of the concerns that all

Candyco Transcription Service, Inc.

(518) 371-8910 1 of us have raised? Maybe it does, maybe it 2 doesn't. 3 But I will tell you one thing. 4 What you will do when you go home this week, 5 you will be able to take credit when those 6 editorial boards say, Guess what, they finally 7 acted like adults. They were able to make 8 tough decisions. 9 Do you think these are all easy 10 decisions? Absolutely not. But you know 11 something? Sooner or later we have to prove 12 to everybody that we are what we say we are, 13 and that is one of the best bodies in this 14 country. 15 Do you think what is happening in 16 Washington is easy? Do you think what is 17 happening in some of your local towns is? 18 I was in Binghamton just not too 19 long ago. They have difficult times up there. 20 Senator, you know it like I know it. However, 21 what they said to me, what they pleaded to me 22 was: "Senator Smith, please make sure you can 23 do the deficit reduction package so that we 24 can balance our budget."

Candyco Transcription Service, Inc.

(518) 371-8910 1 When I was up in Syracuse, same 2 statement. In Buffalo, same statement. Long 3 Island, Senator Marcellino, same statement. 4 Your friends, your business associates, your 5 organizations said, "Senator Smith, please go 6 back to Albany and pass a deficit reduction 7 package." 8 And you know what I told them? I 9 said, "I will do the best that we can." And 10 their response to me was: "You know 11 something? I know you will, but I bet you 12 your colleagues can't get it done." 13 So guess what? Today we prove to 14 those people in Binghamton, in Syracuse, in 15 Buffalo, in Watertown, in Suffolk County, in 16 Nassau County, in New York City, in the 17 Hudson Valley that we can do what it takes to 18 prove that we can handle our business. 19 And that's what we're doing today. 20 We are simply handling our business. This is 21 no longer a dysfunctional body, it is a 22 functional body. It is a functional body that 23 says, you know something, I'm going to take a 24 step to show the people that we can handle our

Candyco Transcription Service, Inc.

(518) 371-8910 1 business. 2 Next year, next month we have to 3 deal with a $13 billion-plus deficit. 4 $13 billion-plus. How are we going to get 5 there if we can't even take care of 6 $1.6 billion? 7 Take your time. Get yourself ready 8 for next month. This is not the hard part. 9 There's no question about it. Can't things be 10 done a little bit different? No question. 11 We've have loved to spend the time and did 12 everything right now. But that's not going to 13 happen. The process doesn't work that way. 14 What we now have is step one. Step two is 15 that $13 billion. 16 And can we cut our way back to 17 prosperity? No. Do we need the stimulus 18 package? Yes. But how do we get the stimulus 19 package? How do you go to a bank and say "I'm 20 ready to handle my notes" if you can't show 21 them that you're going to bring something to 22 the table? Well, today we're bringing 23 something to the table. 24 The President of the United States,

Candyco Transcription Service, Inc.

(518) 371-8910 1 the Congress of these United States is going 2 to hear the message that New York State is 3 ready to handle their business. You should be 4 proud of what is happening here. Whether you 5 like the microparts of it -- you have a right 6 not to. But what you don't have a right not 7 to do is not to say to yourself that I'm going 8 to be part of a body that's going to prove to 9 the rest of this country that we are once 10 again the Empire State. 11 And that's what we are proving 12 today, ladies and gentlemen. That's all we're 13 doing. Forget about the microchallenges in 14 the budget. Forget about the fact that you 15 have a concern about what's happening with the 16 Power Authority, who incidentally has to vote 17 on agreeing that we can do what we're -- the 18 Governor can't take their money away, the 19 board has to vote on that. So that gets 20 approved by the board, not by us. We're doing 21 simply what they said they want us to do. 22 And that's what we're going to be 23 doing going forward. Understand the posture 24 that we're going to adopt this year. Let me

Candyco Transcription Service, Inc.

(518) 371-8910 1 make it very plain and clear, because it will 2 make it better for you when you're sitting 3 down talking to the advocates. No more 4 top-down management. No more imposing our 5 will on the public or imposing our will on the 6 advocates. We're changing the paradigm. 7 The paradigm says "bottom up." 8 We're going to ask them, if we come up with a 9 number that's $50 million, that's 10 $100 million, we're going to say to them: You 11 tell us. You tell us, Senator LaValle, higher 12 education. You let the higher education 13 people tell us what they want to do and how 14 can they get to that $50 million. 15 We're not going to tell them 16 anymore. We're not that smart. Okay? We're 17 not as smart as the industry experts. So now 18 is their time, in a tough moment, to tell us 19 how to do this. And then we will move 20 forward. 21 So this is the beginning of a new 22 process. And I know it's not easy to accept. 23 But understand that what we are simply doing 24 today is telling the people of this state that

Candyco Transcription Service, Inc.

(518) 371-8910 1 we can balance our budget. The $1.6 billion 2 that needs to be done today, that's going to 3 be done in the Assembly as well -- first bill, 4 as you called it, being done today -- is 5 simply telling Washington, is simply telling 6 the rating companies, is simply telling the 7 19.5 million people who think that we can't 8 get the job done when there's tough decisions 9 like this, that we can get it done. 10 This is simply an answer that the 11 public has been asking for, and today we're 12 giving it to them, Madam President. 13 ACTING PRESIDENT STEWART-COUSINS: 14 Senator Saland, why do you rise? 15 SENATOR SALAND: Would Senator 16 Smith yield. 17 ACTING PRESIDENT STEWART-COUSINS: 18 Senator Smith, will you yield? 19 SENATOR SMITH: Sure, Madam 20 President. 21 ACTING PRESIDENT STEWART-COUSINS: 22 Senator Smith yields. 23 SENATOR SALAND: Senator Smith, 24 you certainly addressed us with a rhetorical

Candyco Transcription Service, Inc.

(518) 371-8910 1 flourish. And somehow or other, with all due 2 respects to the Majority Leader, I'm not sure 3 that rhetoric trumps facts. 4 I heard you say, near the end of 5 your remarks, no more top-down. Bottom-up. 6 Was there some kind of process that I missed, 7 an open process in which representatives of 8 both parties as well as representatives of a 9 variety of advocacy groups, good government 10 and maybe even bad government groups were 11 invited to participate in this modest, as you 12 point out, $1.6 billion proposal? Did I miss 13 something in this new paradigm? 14 SENATOR SMITH: Madam President. 15 Through you, Madam President. 16 ACTING PRESIDENT STEWART-COUSINS: 17 Senator Smith. 18 SENATOR SMITH: No. 19 SENATOR SALAND: I didn't. So it 20 wasn't exactly an open process, it wasn't 21 exactly an open paradigm, it's sort of 22 business as usual. Is that not exactly what 23 just occurred here? 24 You also said -- if I've misspoken,

Candyco Transcription Service, Inc.

(518) 371-8910 1 please tell me I've misspoken. 2 SENATOR CRAIG JOHNSON: Point of 3 order, Madam President. 4 I believe that Senator Saland is 5 supposed to address all questions through you 6 and continue to ask the Majority Leader if he 7 would continue to yield the Senate floor. I 8 believe that is something that he's required 9 to do. 10 ACTING PRESIDENT STEWART-COUSINS: 11 Senator Saland. 12 SENATOR SALAND: Thank you, Madam 13 President. 14 Through you, Madam President. 15 Senator Smith, have I in fact -- 16 ACTING PRESIDENT STEWART-COUSINS: 17 I believe the question is whether Senator 18 Smith continues to yield. 19 SENATOR SALAND: Oh. He doesn't 20 want to yield to me any longer? 21 ACTING PRESIDENT STEWART-COUSINS: 22 You have to ask the question. 23 SENATOR SALAND: Oh, all right. 24 Will Senator Smith continue to yield?

Candyco Transcription Service, Inc.

(518) 371-8910 1 ACTING PRESIDENT STEWART-COUSINS: 2 Senator Smith, do you yield? 3 SENATOR SMITH: Yes, I yield, 4 Madam President. 5 ACTING PRESIDENT STEWART-COUSINS: 6 He yields, Senator Saland. 7 SENATOR SALAND: Thank you. 8 Senator Smith, you in your remarks 9 I guess had defined a new paradigm. And I'd 10 like to -- if you would share with me the 11 process of this new paradigm that brought this 12 bill to the floor at this time and this place 13 and to this side of the aisle at about 14 noontime today. 15 And I believe I had asked you what 16 other groups were involved. Were there 17 subgroups, were there open meetings, were 18 there hearings? Did the sun shine on this 19 process so that people knew what was going to 20 happen today when we arrived here for the 21 message of necessity? 22 SENATOR SMITH: Through you, 23 Madam President, the process started back in 24 December, I believe, when we were in the

Candyco Transcription Service, Inc.

(518) 371-8910 1 minority, and we completed it today. Thank 2 you. 3 SENATOR SALAND: Would Senator 4 Smith continue to yield? 5 SENATOR SMITH: No, Madam 6 President. 7 ACTING PRESIDENT STEWART-COUSINS: 8 Senator Smith does not continue to yield, 9 Senator Saland. 10 SENATOR SALAND: I'm quite taken 11 aback by that. I've rarely seen that courtesy 12 extended -- or discourtesy extended by one 13 member to another. 14 ACTING PRESIDENT STEWART-COUSINS: 15 Senator DeFrancisco. 16 SENATOR SALAND: Do I still have 17 the floor? May I -- do I still have the 18 floor? 19 ACTING PRESIDENT STEWART-COUSINS: 20 No, Senator Saland, you rose and I asked you 21 why you rose. 22 SENATOR SALAND: May I go on the 23 bill? 24 ACTING PRESIDENT STEWART-COUSINS:

Candyco Transcription Service, Inc.

(518) 371-8910 1 Yes, Senator Saland, on the bill. 2 SENATOR SALAND: Thank you. 3 Madam Chair, Madam President, there 4 were some comments I just jotted down which I 5 found particularly interesting. I heard the 6 Majority Leader, and he referred to particular 7 communities in upstate New York and other 8 parts of the state. And the comment which he 9 said was "your friends, your businesses said 10 to get it done." I believe that accurately 11 either were his words or a reasonable 12 facsimile thereof. 13 And am I to construe by that that 14 businesses and my friends were asking for 15 large and staggeringly large increases in 16 their health insurance premiums? Because that 17 assumedly is one of the conclusions I'm 18 supposed to reach by those rhetorical 19 comments. 20 I heard that we're simply handling 21 our business, we're no longer dysfunctional, 22 we're a functional body. 23 Today is February 3rd. It's a 24 Tuesday. This is either the third or fourth

Candyco Transcription Service, Inc.

(518) 371-8910 1 week we've been here in session. And I must 2 have missed any number of bills that we passed 3 in the preceding two or three weeks when we 4 were acting functionally. Because it seems to 5 me, unless something went by me with such 6 lightening speed that I couldn't comprehend 7 it, that this is the first bill that we're 8 doing after being here for some three or more 9 weeks. 10 If that is somehow or other an 11 indication of the new paradigm, and if that is 12 an indication of what constitutes 13 functionality, woe be the people of the State 14 of New York as to what's going to follow over 15 the course of the coming weeks. 16 I heard Senator Smith say we're 17 here to do the people's business. I fear that 18 what is happening here today is that the 19 people -- many of the people in my community 20 in the Hudson Valley, and many of the people 21 in upstate New York -- are not getting the 22 benefit of the business. I think what is 23 happening here today is that we're doing it to 24 the people.

Candyco Transcription Service, Inc.

(518) 371-8910 1 If you believe in tax-and-spend, 2 this certainly is a good way to start off your 3 game plan. I don't subscribe to that theory. 4 I think we could have been far more 5 responsible. 6 And we might have been able to get 7 there in some reasonable consensus fashion had 8 there been an effort on the part of the 9 majority, even a modicum of courtesy to this 10 side of the aisle to see if in fact something 11 could have been reached, instead of going back 12 to the now infamous three men in a room or, as 13 one of my colleagues had said a bit earlier, 14 three New York City Democrats in a room. 15 There is a rest of the state, and this somehow 16 or other doesn't treat them particularly well. 17 Thank you, Madam President. 18 ACTING PRESIDENT STEWART-COUSINS: 19 Senator DeFrancisco. 20 SENATOR DeFRANCISCO: Yes, I've 21 been sitting through the budget hearings 22 ad nauseam over the last three weeks. And I 23 thought the purpose of the hearings was to 24 hear from the people and try to get their

Candyco Transcription Service, Inc.

(518) 371-8910 1 input and make some decisions based upon 2 information that we received and the best way 3 to get things done. 4 And quite frankly, with all due 5 respect to the new Majority Leader, I'm not 6 very proud today. I'm not very proud today 7 for several reasons. 8 First of all, I don't honestly 9 remember any time when there was a motion on 10 an amendment for someone who's gone beyond the 11 time frame that the Majority Leader didn't say 12 fine, give the other individual an opportunity 13 to speak on it. I don't remember that. 14 I don't care what the rules say. 15 If we're going to be proud of a body that 16 gives everybody the opportunity to speak, 17 well, I think that was not within that rule -- 18 same thing, I don't remember Senator Bruno 19 ever not answering a question posed by the 20 minority. And I guess the problem was it was 21 a very uncomfortable position to be in to try 22 to answer factual questions over and above the 23 rhetoric. 24 This is not a new paradigm. This

Candyco Transcription Service, Inc.

(518) 371-8910 1 is not a new way to do business. This is the 2 way that it's always been done. And you can 3 clearly say, as some editorial pages did after 4 our first day of session when no new rules 5 were really adopted, that, well, that's the 6 way the Republicans used to do it. 7 Well, there's one big difference. 8 There's one big difference. And that big 9 difference is there was a party and a group of 10 people that campaigned on reform, reform, on 11 reform. That same party brought lawsuits to 12 make reform happen. That same party pledged 13 by becoming the new majority, they were going 14 to have a new paradigm, a new way to do 15 business. 16 Well, it's not. And to suggest 17 that it is is an insult to everybody's 18 intelligence not only in this room but any 19 other room. Because there was no input. This 20 came out today at 12 o'clock. 21 Now, with respect to the substance 22 of the whole business, I don't know who the 23 Majority Leader was speaking to in Syracuse 24 and Binghamton and other places. There is

Candyco Transcription Service, Inc.

(518) 371-8910 1 nobody in my community that wants healthcare 2 dollars, the cost of healthcare increased by 3 $100 to $300, $400. I don't know that anybody 4 has said that. 5 In fact, it's the opposite. We 6 can't afford healthcare, our businesses can't 7 afford it, we have to cut people because we 8 can't afford the cost of giving them 9 healthcare. 10 No one said that. No one said 11 "Take away our Power for Jobs." No one said 12 "Take away our economic ways to stimulate the 13 economy." 14 You know, there's a big difference 15 between -- there seems to be an analysis of 16 trying to show that we're in line with the new 17 President and the stimulus. This is not a 18 stimulus package, this a stimu-less package. 19 Because we are cutting out those tools that we 20 have and increasing taxes to make it more 21 difficult to create jobs. 22 This is not what the people around 23 the state are talking about. They're talking 24 about cutting government, consolidating

Candyco Transcription Service, Inc.

(518) 371-8910 1 services, getting rid of needless authorities, 2 consolidating agencies. They're talking about 3 cutting, cutting so that we make up for 4 situations where we've spent too much. 5 And that's everybody's fault that 6 we spent too much. That's the way we get 7 back. Families are telling us, "We're cutting 8 things out of our budget because we can't 9 afford it anymore." Businesses in my 10 district, they're cutting jobs in the 11 thousands. They're cutting because they can't 12 afford it. 13 Except for us. What we're doing, 14 we're not cutting to reach this deficit just 15 for last year, we're adding more burden on 16 those people in every household. We're adding 17 more burden on every business. And we are 18 making it more likely we're going to lose more 19 jobs rather than less. 20 I just want to just mention one 21 thing about the Power Authority, because 22 there's a list here -- I've got a list of all 23 the different companies, manufacturers 24 upstate. And we're supposed to be -- this is

Candyco Transcription Service, Inc.

(518) 371-8910 1 going to be upstate -- upstate is the concern 2 of the Governor, upstate is the concern of the 3 new Majority. 4 Upstate, look at this list of who 5 gets affected by the Power Authority, who gets 6 affected. I've got a bunch of them, at least 7 15 of them in my district. 8 Just to give you an idea, Senator 9 Valesky's district: Clinton's Ditch 10 Cooperative Company. Dynalectric 11 Laboratories, Inc. Dye Molding Corporation. 12 All create jobs. Marquardt Switches, Inc. 13 Pelco Electronic Corp. Queensboro Farm 14 Products, Inc. Syracuse Casting Sales Corp. 15 Thermamold Corp. And I know I missed some. 16 Senator Aubertine's district: 17 Canton-Potsdam Hospital. Chapin Watermatics. 18 Clarkson University. Samaritan Medical 19 Center. Schneider Packaging Equipment. 20 St. Lawrence University. Stature Electric. 21 Turbine Engine Technology Components. I'm 22 sure I missed some, because I don't know his 23 entire district. 24 But upstate, Central and Northern

Candyco Transcription Service, Inc.

(518) 371-8910 1 New York gets killed by this. The tools we 2 need to keep those companies there and create 3 new jobs are hurt for us. 4 So I guess what I'm saying is not 5 only with respect to the process, this 6 stimu-less package hurts business and hurts, 7 more importantly, the jobs that are created 8 and the people that would like to work and 9 would like to have health insurance. 10 So hopefully when we get through 11 this, hopefully it's not a charade. I believe 12 it is. But hopefully when we get through the 13 90 day charade about reform where we're having 14 hearings all throughout the state, that I can 15 be -- that everyone on this side of the aisle 16 can stand up to me and say, You were wrong, 17 Senator DeFrancisco, because we reformed real 18 reform, and we didn't just go around the state 19 to postpone the inevitable. Real reform. And 20 that this was simply an aberration today, an 21 aberration that will never happen again. 22 I'd love to be told that I'm wrong 23 90 days from now. But I've got a feeling that 24 if this is our first step on openness and the

Candyco Transcription Service, Inc.

(518) 371-8910 1 new paradigm, and this is our first step as to 2 how to help the people of the State of 3 New York to get our finances in shape, then 4 we've got a long two years coming up. 5 Thank you, Madam President. 6 ACTING PRESIDENT STEWART-COUSINS: 7 Thank you, Senator. 8 Senator Carl Kruger. 9 SENATOR CARL KRUGER: Thank you, 10 Madam President. 11 In order to properly frame what 12 we're talking about today, perhaps what we 13 have to first do is look at the basis under 14 which we were functioning over this last month 15 and a half. The proposal by the Governor in 16 order to narrow this deficit and bring us into 17 a budget for this year showed cuts to 18 hospitals of assessments, $361 million; 19 graduate medical education, $23 million; rate 20 cuts, $84 million; trend cuts, $97 million. A 21 hit on hospitals of $306 million. 22 A quarter of a billion dollars, a 23 quarter of a billion dollars was to go to cuts 24 to nursing homes. In addition, over

Candyco Transcription Service, Inc.

(518) 371-8910 1 $150 million was to go to cuts for home care 2 and for personal care. And $15 million was a 3 hit on our community colleges. 4 That's what we were left with. And 5 through that morass, we were charged with the 6 responsibility of developing a deficit 7 reduction plan that protected those that need 8 us the most, the people that are not here 9 today to speak: the poor, the sick, the 10 elderly, the developmentally disabled, those 11 people that we come to Albany to try to 12 protect. 13 And this plan does just that. It 14 protects them. It protects them through 15 March 30th of this year. It balances the 16 budget. It puts us in the position we were 17 able to bring fiscal control, we were able to 18 use cash that was on hand, that was held by 19 agencies or in depositories. 20 And when people want to 21 characterize this as gimmickry or they want to 22 say there was some kind of a plan or a scheme, 23 well, whatever they want to characterize it 24 as, the fact of the matter is that today we

Candyco Transcription Service, Inc.

(518) 371-8910 1 are able to pass a plan, a plan that is a 2 nuts-and-bolts, common-sense approach towards 3 closing down your books. 4 If this was a private business and 5 we were to have to go to our year-end close, 6 this is exactly what we would be doing. What 7 we're doing here today is not much different 8 than what we did in the past, but we called it 9 accruals. And we kept on moving it over. 10 Well, there will be no more accruals. We'll 11 start with a pay-as-you-go policy. That's 12 true reform. 13 That's to say that today we're 14 sweeping out of accounts that were laying 15 stagnant, and unused funds, and moving them in 16 a positive direction. What we're not taking 17 out of those accounts as sweeps are being used 18 under the authority of the very boards under 19 which they were created. 20 The CUNY and the SUNY money that's 21 being transferred over was transferred over by 22 the boards of SUNY and CUNY. And to do that 23 and to respect the needs of the students that 24 would otherwise need TAP to get through that

Candyco Transcription Service, Inc.

(518) 371-8910 1 tuition increase, we're doing that by adding 2 $8 million to the current budget in order to 3 protect them with a TAP allocation. 4 When we want to look at other parts 5 of this budget, people have spoken about the 6 issue of the Power Authority and what we're 7 doing to small businesses upstate. Well, you 8 know, I'm new at this, so I've been doing a 9 little bit of reading, and I tried to put this 10 into my own perspective. 11 Well, if we look at the Laws of 12 2008, Chapter 57, we've done this in the past. 13 The numbers may have been different, but the 14 facts are still the same. And the facts say 15 today, as they said then and they'll continue 16 to say, that what we're doing is we're not 17 affecting small businesses, we're taking 18 approximately $109 million that's sitting in a 19 reserve fund that is supposed to be used for 20 cleanup to a federal depository that has never 21 been touched or needed by the Power Authority. 22 We're talking about the balance of 23 funds that is being held, once again, by the 24 Power Authority for debt service and for

Candyco Transcription Service, Inc.

(518) 371-8910 1 operating expenses which they don't need. And 2 at the end of the day, it will have no effect 3 on small businesses, it will have no effect on 4 anyone except the Power Authority. 5 Which, lo and behold, we know what 6 authorities are all about. No matter how you 7 want -- you know, someone said that, you know, 8 you can put lipstick on a pig, but it's still 9 a pig. Well, you know what? We know what 10 authorities are all about. 11 For all too long, when there wasn't 12 reform, when there wasn't reform, we said that 13 authorities was a good way of government not 14 acting. So when we didn't know what to do, we 15 appoint a commission or we empower an 16 authority. We have that commission make a 17 study, produce a report that no one ever 18 reads, spend all kinds of money to do it, and 19 we feel good about ourselves because we've 20 done something effectively. 21 Well, now we have authorities. And 22 whether it's the MTA or so many other 23 authorities that this state is burdened with, 24 it's going to be our responsibility over the

Candyco Transcription Service, Inc.

(518) 371-8910 1 months and the years ahead to look at them and 2 how they operate and what can be consolidated 3 and what can be changed about the way that 4 we're doing business. 5 Let's talk for a moment, let's talk 6 for a moment, Madam President -- 7 SENATOR NOZZOLIO: Madam 8 President. 9 ACTING PRESIDENT STEWART-COUSINS: 10 Senator Nozzolio, why do you rise? 11 SENATOR NOZZOLIO: Madam 12 President, will Senator Kruger yield? 13 SENATOR CARL KRUGER: No. 14 Through you, Madam President. 15 ACTING PRESIDENT STEWART-COUSINS: 16 Senator Nozzolio, Senator Kruger will not 17 yield. 18 Senator Kruger. 19 SENATOR CARL KRUGER: Thank you, 20 Madam President. 21 On the issue of the question of 22 insurance and how we're going to drive small 23 businesses out of existence and we're going to 24 so burden people that they're going to have to

Candyco Transcription Service, Inc.

(518) 371-8910 1 give up their health insurance, well, lo and 2 behold, the way current law exists, not until 3 January of 2010 will these numbers kick in. 4 So the only people that are going to be 5 burdened with this $120 million -- 6 SENATOR NOZZOLIO: Madam 7 President. 8 ACTING PRESIDENT STEWART-COUSINS: 9 Senator Nozzolio, why do you rise? 10 SENATOR NOZZOLIO: Will Senator 11 Kruger yield? 12 SENATOR CARL KRUGER: Through 13 you, Madam President, no. 14 SENATOR NOZZOLIO: Madam 15 President, point of order. 16 ACTING PRESIDENT STEWART-COUSINS: 17 Senator Nozzolio. 18 SENATOR NOZZOLIO: In 17 years, 19 I've never refused to yield to any member's 20 question. And Lord knows I've had hundreds of 21 questions during this period. It is, I guess, 22 the new majority. 23 My point is this. Under what 24 grounds does Senator Kruger not yield?

Candyco Transcription Service, Inc.

(518) 371-8910 1 SENATOR CARL KRUGER: Through 2 you, Madam President, I'm not finished. 3 ACTING PRESIDENT STEWART-COUSINS: 4 Senator Kruger. 5 SENATOR CARL KRUGER: Thank you. 6 Let's talk about the issue of 7 insurance for a moment, $120 million. As I 8 said, January 2010 will be when the insurance 9 companies -- the insurance companies right now 10 cannot pass on rate increases under current 11 law. So, rather, they will have to absorb 12 this increase. 13 Well, you know what? Of all the 14 people, of all the people that we're concerned 15 about protecting, the one piece of the world 16 that I'm least concerned about protecting 17 right now are the insurance companies. 18 What we have to be concerned about 19 are protecting those people that are paying 20 the insurance companies, the people that are 21 being denied healthcare insurance, the 22 providers that are being put out of their 23 businesses because insurance companies are not 24 doing what they're supposed to do.

Candyco Transcription Service, Inc.

(518) 371-8910 1 So you know, when we want to -- and 2 I can go on and on, Madam President. And I 3 know that there are going to be a number of 4 questions which I will be more than glad to 5 try to answer. But at the end of the day, 6 when people want to talk about reform and they 7 want to talk about good government and they 8 want to talk about the way things are and the 9 way things were, then I guess what we have to 10 really do is put things in their proper 11 perspective. 12 Rather than saying that the new 13 majority is charged with the responsibility of 14 undoing what the old majority did, what we 15 have to better say today, today is the 16 beginning of a new day in Albany. It is the 17 first bill that the Democratic majority is 18 passing today in the Senate. And under the 19 leadership of Senator Smith, we're going to 20 have a lot of bills that pass through this 21 house. And a lot of bills that are not going 22 to be one-house bills, but bills that are 23 going to become law. 24 And when that is completed, what we

Candyco Transcription Service, Inc.

(518) 371-8910 1 will have accomplished is that we will have 2 spoken for those people that cannot speak for 3 themselves. That we will have created a new 4 agenda, a new spirit, a new sense that 5 cooperation should be the byword here. 6 And my reaction on the floor today 7 is an outgrowth of what I perceive to be the 8 sense of ill will on the other side of the 9 aisle. 10 And if we can walk away today as 11 partners in a cooperative effort, as Senator 12 Smith pointed out, today is the pots and pans; 13 tomorrow we get to the Picassos. Tomorrow we 14 have the real fight on our hands. 15 Tomorrow we have to figure out a 16 way of closing a $13 billion gap with sweeps 17 that will not exist anymore, with 18 opportunities that we're taking today to show 19 the bond companies, to show Washington, to 20 show everyone that we are responsible, that we 21 have a balanced budget, that we are going to 22 be able to move in a new direction, that we 23 are entitled to that stimulus package, that we 24 can go out and bond that stimulus package and

Candyco Transcription Service, Inc.

(518) 371-8910 1 bring more money back to all of those 2 disenfranchised and disillusioned New Yorkers 3 who really believe that Albany was 4 dysfunctional. Today is the new beginning of 5 functionality. 6 Thank you, Madam President. 7 (Applause.) 8 ACTING PRESIDENT STEWART-COUSINS: 9 Thank you, Senator Kruger. 10 Senator Young. 11 SENATOR YOUNG: Thank you, Madam 12 President. On the bill. 13 I listened to Senator Smith and 14 Senator Kruger very intently. And if today is 15 a new day here in Albany, today is a very, 16 very sad day in Albany, when people are not 17 allowed to speak on the floor, when people are 18 not allowed to be involved in the process, 19 when the negotiations on this bill were held 20 in secret, the public was not allowed to know 21 what was going on, the groups were not allowed 22 to know what was going on, half of this Senate 23 body was not allowed to know what was going 24 on.

Candyco Transcription Service, Inc.

(518) 371-8910 1 And this is your idea of reform? 2 It's a joke. It's a joke. And you should be 3 ashamed of what you're doing here today. 4 You know, Senator Smith said this 5 is what the people of New York State asked us 6 to do. Nobody in my district asked me to take 7 measures on this floor so that they'll lose 8 their jobs. Nobody in my district or in this 9 state has asked us to take actions where they 10 are going to not be able to afford their 11 health insurance. 12 This is a joke. Senator Smith said 13 that we are sending a message today to the 14 people of New York State. Well, I will say to 15 you that this is the wrong message. Because 16 the message is, to the people of upstate 17 New York especially, drop dead. 18 How can you sit there, how can you 19 sit there with a straight face and do what 20 you're doing today? Wake up. Because there's 21 a news flash for you. In October, November, 22 December, this state lost 103,000 jobs, over 23 100,000 jobs. Forty-nine thousand of those 24 jobs, almost half, happened in the month of

Candyco Transcription Service, Inc.

(518) 371-8910 1 December. 2 And yet we sit around, we raise 3 taxes on people, we take actions so that 4 people will lose their jobs. We are making a 5 terrible situation even worse. And you, on 6 that side of the aisle, are the architects of 7 this fiasco. You should be ashamed. 8 So I would urge my colleagues to 9 vote no on this bill for so many reasons. So 10 many reasons. 11 But I have to tell you, again, this 12 is a very, very sad day here in the Senate 13 chamber. It's a sad day here in Albany. And 14 most of all, it's a sad day for the people of 15 New York State. And you should not be pushing 16 this legislation through in the manner that 17 you're doing it. 18 ACTING PRESIDENT STEWART-COUSINS: 19 Senator Marcellino. 20 SENATOR LARKIN: Thank you, Madam 21 President. 22 SENATOR MARCELLINO: Marcellino, 23 Larkin. 24 (Laughter.)

Candyco Transcription Service, Inc.

(518) 371-8910 1 SENATOR LARKIN: Oh. I thought 2 "L" came before "M." 3 SENATOR MARCELLINO: I know 4 Senator Larkin and I look a lot alike -- 5 SENATOR LARKIN: Now, wait a 6 minute. You got hair. 7 SENATOR MARCELLINO: I want more. 8 I rise to talk about the 9 Environmental Protection Fund. Recently 10 Senator Thompson, the new chair of the 11 Environmental Committee -- which I hope to 12 have a working relationship with, and I'm sure 13 I will as the days and months go on -- sent a 14 letter around where he mentioned the EPF and 15 said cuts in the EPF should be equitable, 16 fair, and that the cuts proposed in this 17 coming package are excessive and should be 18 reduced and the funding stream for the EPF 19 should not put off into a risky bottle bill 20 which nobody knows what the money will come 21 from, but should stay where it is now 22 currently in the real estate transfer tax. 23 I signed that piece of legislation, 24 along with other people, because I felt

Candyco Transcription Service, Inc.

(518) 371-8910 1 strongly about that. 2 I too will be circulating a letter, 3 and I hope Senator Thompson will cosign that 4 letter, which I propose to send to the 5 Governor, to ask that this cut on the EPF be 6 rescinded and that the EPF not be used to 7 balance the budget on the backs of the 8 environment. 9 The environment is a key. We 10 worked a long, long time to establish a steady 11 funding stream for the EPF. When I first came 12 here in 1995, the EPF was only about 13 $25 million and not guaranteed and not funded. 14 It took us a long time to get to a piece of 15 legislation which guaranteed the EPF to be 16 $250 million last year and should have been 17 $300 million in this year's budget, in the 18 2009-2010 budget. 19 That's all being wiped out in this 20 proposal. This proposal intends to bring this 21 EPF down to $205 million. Money being 22 swept -- from where to what, I have no idea -- 23 being thrown into the General Fund. 24 The Governor talked in the State of

Candyco Transcription Service, Inc.

(518) 371-8910 1 the State about renewable energy and that we 2 have to be developing a renewable energy 3 portfolio, yet he zeros out solar initiatives 4 in this budget. The priorities of this EPF 5 cut are misplaced, totally misplaced. We have 6 funding for breast cancer research zeroed out. 7 We have funding for the pesticide registry 8 zeroed out. 9 Yet the Department of Health, in 10 the year that they provide us with the last 11 statistics, tell us that in Kings County, in 12 Kings County, 1300 new kinds of breast cancer 13 appeared. In Erie County, almost 800 new 14 cases of breast cancer appeared. In Niagara 15 County, nearly 200 new cases of breast cancer 16 appeared. On Long Island, Nassau and Suffolk 17 combined on Long Island, almost 2300 new cases 18 of breast cancer appeared. 19 Yet we are cutting out breast 20 cancer research, yet we are cutting out of the 21 EPF money to establish a database on 22 pesticides which most of us believe are prime 23 causes of that dreaded affliction. 24 I would suggest that we have

Candyco Transcription Service, Inc.

(518) 371-8910 1 misplaced priorities. I would suggest that 2 when we see -- although I don't argue with the 3 point that you might want to celebrate the 4 quadricentennial of the discovery of the 5 Hudson River. I won't argue about that as a 6 subject. 7 I'm just going to argue that when 8 you put in this project, in this plan that 9 we're supposed to vote on today, $4 million, 10 $3 million to fund it directly and another 11 million out of the Hudson River estuary 12 account, which was cut to $5 million from 13 $6 million with the statement that a million 14 dollars must be spent on these celebrations. 15 So we're going to have parties up 16 and down the Hudson River to celebrate the 17 quadricentennial of the discovery of the 18 Hudson River by Henry Hudson -- who, by the 19 way, was so despised by his crew he was 20 abandoned, set adrift and was never heard from 21 begin. 22 So it becomes a problem when we 23 celebrate that. Again, you might want to do 24 that. I don't know if you fund it out of the

Candyco Transcription Service, Inc.

(518) 371-8910 1 EPF. I suggest that's not the place for that 2 kind of funding when we are cutting research 3 for breast cancer and the establishment of a 4 pesticide registry. I think our priorities 5 are misplaced. 6 Senator Smith, I respect you, I 7 respect the position you now hold. Yet I do 8 not wish to take credit for such cuts. I 9 don't think that's the appropriate way to do 10 it. I think we could have worked it out had 11 there been some serious communication. You 12 talked from the bottom up. Okay, I can accept 13 I'm on the bottom. But no one consulted, no 14 one asked for any ideas, no one thought to 15 say, hey, Marcellino, you've been there for a 16 while, what are your thoughts on the EPF? How 17 do you think we might go? Where do you think 18 we might get some additional funds? 19 I have some recommendations I might 20 have provided. I mentioned them in the 21 Finance Committee hearings when the four 22 chairs stood up and I complained that all we 23 were hearing was the same-old same-old. 24 The Commissioner of Parks was

Candyco Transcription Service, Inc.

(518) 371-8910 1 praising this Governor's proposal, saying that 2 well over $2 million, and I forget the exact 3 account, there were $2 million put in this 4 particular account that she thought was 5 absolutely fantastic. This was going to serve 6 us well. Yet if you rolled it back and you 7 looked at that it, the prior year's 8 authorization was $19 million. So there was a 9 $17 million cut, and she was saying it was the 10 saving grace of the environment. I find this 11 incredible. 12 We have a problem in our priorities 13 here. If you want to balance the budget, I 14 suggest we should not be doing it on the backs 15 of the environment. We're talking about 16 health, we're talking about water quality, 17 we're talking about preservation of open 18 space, we're talking about stewardship 19 programs, we're talking about things that take 20 place in every single member's district. 21 Every single member in this room 22 has a project, has a purchase of land to 23 preserve open space, needs clean air, needs 24 clean water. The EPF has been the driving

Candyco Transcription Service, Inc.

(518) 371-8910 1 engine to do that. That has been the engine 2 that has been driving all of these great 3 projects. Yet we are permanently reducing the 4 EPF from the $300 million it was supposed to 5 go to, to $205 million. And we're taking that 6 money, we're sweeping it out and we're putting 7 it someplace in the General Fund to balance 8 the budget. 9 Now, Senator Kruger is right, it's 10 been done before. And I complained about it 11 before. Ladies and gentlemen, do you know 12 that we have almost a half a billion dollars 13 in sweeps from the EPF? Almost a half a 14 billion dollars. The sweep proposed in this 15 project, in this program, equals half of that. 16 Equals half of that. $275 million in sweeps 17 in the language from this proposal. 18 That's ridiculous. That is 19 excessive. That is balancing the budget on 20 the backs of clean water, clean air, and open 21 space preservation. That's wrong. That's 22 wrong. We shouldn't be doing that. There are 23 better ways, sir. There are better ways to do 24 this.

Candyco Transcription Service, Inc.

(518) 371-8910 1 And I suggest that had we had the 2 hearings, had we had some meetings, we could 3 have come to a decision, we could have made 4 recommendations as to how we might have done 5 it better and where we might have found the 6 money that's necessary to make the balances 7 that we need to make. 8 This is wrong. The priorities are 9 way out of whack here. And I would suggest, 10 if this is the new way to go, we'd better look 11 for a detour, because your road map is wrong. 12 Let's find a different way. Let's 13 work together and find a different way. I 14 don't see the working together going on. I'd 15 like to see some more of that, but I don't. 16 And as was said before, three men in a room is 17 not something I wish to go back to. I thought 18 it was wrong then; it's wrong now. It's just 19 as wrong now. 20 I appreciated the open hearings 21 where everybody had a chance, where we had the 22 conference committees and we spoke and we 23 debated in public. Sometimes we embarrassed 24 ourselves. But we actually had debates, in

Candyco Transcription Service, Inc.

(518) 371-8910 1 public, and the people could hear it and see 2 it. 3 There has been nothing like that on 4 this bill here, there has been nothing like 5 that here. We talk about job creation and all 6 the rest of that. There is job creation in 7 the EPF, there is promotion for that. 8 What you're doing today, what 9 you're doing today or we are proposing to do 10 today is a mistake, it's going to hurt the 11 environment, it's going to send us back a 12 decade, a decade in the funding. It took us a 13 long, hard road to get there, and yet you're 14 going to snatch it away in a moment for some 15 short-term use and for some short-term gain. 16 I heard talk about the stimulus 17 package, we should wait for the stimulus 18 package. That's great. That may not get here 19 in time. It may not get here at all. And 20 it's a one-shot, Senator, it's a one-shot. 21 What are we going to do next year? What are 22 we going to do next year when that is not 23 here? Will we expect a trillion-dollar 24 bailout every year from the federal

Candyco Transcription Service, Inc.

(518) 371-8910 1 government? I don't think so. 2 So if you're going to fill gaps now 3 based on that stimulus, what a mistake. 4 Because next year we're going to have to fill 5 them again. And we're not going to get the 6 stimulus next year. That's not going to 7 happen. That's if we get it now. 8 So I suggest, ladies and gentlemen, 9 that we rethink this vote. I suggest we vote 10 against this program. And I think we have the 11 time, I know we have the time to go back and 12 look at it carefully and do the right thing. 13 I suggest and recommend a no vote on this 14 proposal. 15 ACTING PRESIDENT STEWART-COUSINS: 16 Senator Farley. 17 SENATOR FARLEY: Thank you for 18 the opportunity to speak. 19 Let me just say I want to piggyback 20 on what my colleague here, Senator Seward, 21 said here on the insurance sweep and also a 22 sweep in the banking area. 23 Senator Seward speaks of a 24 $240 million sweep of insurance money which is

Candyco Transcription Service, Inc.

(518) 371-8910 1 paid for by the industry. It's not by the 2 taxpayers, it's by the industry. And 3 incidentally, it is only the domestic 4 insurance companies. These are the insurance 5 companies that employ New Yorkers that are 6 located here in New York State. These are the 7 insurance companies that have not fled the 8 state. 9 A little insurance company right 10 near where you live, Senator Seward, called 11 the New York Central Mutual, is going to get 12 hit with an $8 million assessment, I 13 understand. I wouldn't be surprised if they 14 turned into the New Jersey Mutual Insurance 15 Company. Why do they want to hang around in 16 this state? 17 Let me just say something about the 18 sweep from the Banking Department. These are 19 things that they've tried to fund other areas 20 of government with money from the Insurance 21 Department and the Banking Department where 22 they're paid for by the industry. We have 23 stopped that. All of you from the other side 24 of the aisle have protested taking these two

Candyco Transcription Service, Inc.

(518) 371-8910 1 departments and making sure that we're not 2 stealing their money. 3 Now, when I first came into this 4 Senate chamber 32 years ago, New York State 5 was the financial center of the world. We had 6 every piece of banking legislation that was 7 modeled; the feds used to follow us. 8 Guess what? All the savings and 9 loans have gone to a federal charter. All the 10 credit unions, 90-some-odd percent of them, 11 have gone to federal charters. The Banking 12 Department is only funded by state-chartered 13 banks. We lost one just a couple of years ago 14 called Chase. Twenty-five percent of the 15 funding for the Banking Department was lost 16 when Chase went to a federal charter. 17 Let me just say something. As you 18 sweep this money from the Banking Department, 19 you're sweeping money from state-chartereds 20 that have to pay for that. Why do they want 21 to stick around in this state? Why do they 22 want to have a state charter? Because the 23 only thing it will amount to is greater 24 taxation, greater expenses, greater

Candyco Transcription Service, Inc.

(518) 371-8910 1 regulations. 2 You know, we try to do things for 3 the consumer. I remember Senator D'Amato, 4 when he was chairman of Banks on the federal 5 level, saying, "Gee, we've got to do something 6 about these credit cards." And I said, 7 "Alfonse, all they'll do is switch to a 8 federal charter." "Oh, really?" 9 That's all they do, is run from us. 10 We're driving business, we're driving banks -- 11 you know, if I recall, if you're looking at 12 this crisis that we're facing, much of it came 13 out of the financial industry. We want to 14 drive another nail into the little financial 15 industry that we have left in New York State. 16 Do you know there's a number of 17 bank in this state that are close to 18 bankruptcy? The federal government is sending 19 billions to them. I'll tell you what. We're 20 sending quite a message with this so-called 21 sweep to these two areas. This is just a 22 minor part of this ugly, ugly piece of 23 legislation. 24 And I really urge my colleagues to

Candyco Transcription Service, Inc.

(518) 371-8910 1 consider it. We got it dumped on us with no 2 time to really digest it. And I'll tell you 3 what. The part that I see that I'm digesting 4 gives me indigestion. So I really urge my 5 colleagues to stand up against this. It's a 6 terrible piece of legislation, one that is 7 very shortsighted. It's not only going to 8 kill jobs, it's going to kill the two great 9 industries that we used to have in this state, 10 insurance and banking. 11 ACTING PRESIDENT STEWART-COUSINS: 12 Senator Robach. 13 SENATOR ROBACH: Yes, Madam 14 President, on the bill. 15 You know, while this certainly is a 16 challenging time, I think those of us in 17 government, I love those situations when we 18 can say something is a win-win situation. I 19 think this one has gotten to be a lose-lose 20 situation now. 21 Clearly, when you talk about 22 cooperation, you have to talk about the 23 process. And we've lost that. There are 24 things that are in here, while we need to get

Candyco Transcription Service, Inc.

(518) 371-8910 1 to a number, perhaps, that wouldn't have been 2 in here had everybody that represented all 3 different parts of the state had input or 4 better input into this process. I don't think 5 that's debatable. I think we all know that. 6 We live by that, we know how important in 7 government -- that's what it is, speaking up 8 for your area, your region. 9 So this process clearly, however 10 you want to call it, was flawed in a lost 11 process that could have been better if the 12 goal really was to hear from everyone and have 13 every part of the state accurately 14 represented. 15 Others will have to tell me what 16 the reason was why that was chosen. But 17 that's the first loss. And because of that 18 loss of process, we then get to content. I 19 dod exactly what Senator Smith said. I did 20 talk to every group, almost every business. 21 And for those that didn't come to the forums 22 we had or the meetings we had at their place, 23 I did a survey. 24 Nobody, nobody in my district wants

Candyco Transcription Service, Inc.

(518) 371-8910 1 us to tax healthcare or have an assessment 2 passed on. Not one person mentioned it, not 3 one person said in the survey they think a 4 deficit reduction plan means we are stopping 5 spending, not adding to taxation or fees. I 6 have to go back and tell my people that. 7 That's my job. I can't fool them. That's as 8 real as rain and as sincere as I can get. 9 In challenging times is when we 10 should be doing our most open and successful 11 work, not our most difficult. So I say 12 lose-lose. Hopefully the process will change. 13 I think there's things in the content that 14 should change. We could have done a much 15 better job both in process and focus on 16 upstate New York. 17 There's some things here -- I won't 18 reiterate what my colleagues said, but for 19 those of you that represent upstate New York, 20 that Power Authority is exclusively resources 21 out of our collective hides for jobs and lower 22 energy. There's no other way to slice it. 23 It's unprecedented to take that much money, 24 half a billion dollars, out of that.

Candyco Transcription Service, Inc.

(518) 371-8910 1 We should be excited, we should be 2 concerned. But this is the first opportunity 3 that I've had to talk about it or know about 4 it today. And I won't even reiterate the 5 reform piece that my colleagues have done much 6 more eloquently than I. But had we delivered 7 or had you delivered on any of the reform 8 process you talked prior to the election, I 9 would have had that opportunity. 10 So unfortunately, while I know we 11 have a challenge, what could have been very 12 differently -- and unfortunately I feel, for 13 the people I represent and for open democracy, 14 I can only give this a bad grade. And I wish 15 I had something to be proud of to take back to 16 my district, but I don't. Now I'll simply be 17 the messenger of a bad process and some bad 18 things included there for the people of 19 upstate New York and Rochester. 20 Hopefully next time we'll do 21 better. 22 ACTING PRESIDENT STEWART-COUSINS: 23 Senator Maziarz. 24 SENATOR MAZIARZ: Thank you very

Candyco Transcription Service, Inc.

(518) 371-8910 1 much Madam President. On the bill. 2 First I just want to say to my good 3 friend and colleague and Majority Leader 4 Senator Smith that I can hardly wait to read 5 all those editorials that say what a great job 6 we've done here today in upstate New York. 7 ACTING PRESIDENT STEWART-COUSINS: 8 Senator Maziarz. 9 SENATOR MAZIARZ: Thank you, 10 Madam President. 11 You know, whether we're doing 12 something different, as Senator Carl Kruger 13 talked about, you know, I don't know. 14 Sweeping money from one agency, the Power 15 Authority, you know, telling cities that 16 they're going to get their money later, that 17 doesn't sound all that much different to me. 18 But I think what is different and I 19 think what we have to -- what's different 20 about today is what went on here today, Madam 21 President, I think is very, very, very 22 important. I've been here now -- this is my 23 15th year. And in 15 years, only once, only 24 once has a Senator refused to yield for a

Candyco Transcription Service, Inc.

(518) 371-8910 1 question from me. And I have to tell you, at 2 the time it stunned me because it was so rare. 3 Think about it for one minute. 4 Would we even consider, even consider not 5 allowing someone like former Senator John 6 Marchi from speaking on the floor of the 7 Senate? When Senator Marchi, in his last 8 years here, spoke, we'd all give him a 9 standing ovation. Whether we agreed with what 10 he said, whether we understood what he said or 11 not, we automatically gave Senator Marchi a 12 standing ovation. 13 I think, Madam President and 14 Senator Malcolm Smith, I think Senator Smith 15 and Senator Skelos better get together and go 16 out to dinner. And even, if the ethics laws 17 allow it, I'll buy the dinner. 18 SENATOR LARKIN: Promises, 19 promises. 20 SENATOR MAZIARZ: But what 21 happened here today, you know, refusing to 22 allow a member to speak -- particularly, I 23 might add, a member with over 30 years, with 24 over 30 years in this body. This not yielding

Candyco Transcription Service, Inc.

(518) 371-8910 1 for a question. 2 You know, we can go back and forth, 3 you know, and I can tell you, lookit, when 4 Senator Liz Krueger sat over here and would 5 ask the same questions over and over and over 6 again and we'd get up and answer the same 7 answers over and over and over again -- and 8 many of you weren't here when Senator 9 Dollinger was here. Believe it or not, it was 10 twice as long as Senator Liz Krueger. And 11 Senator Leichter, and on and on. 12 But if we start this, if we go down 13 this path, it's going to make this body, this 14 New York State Senate, more like the county 15 legislature. And I'll tell you, that demeans 16 all of us. If you want to be in the county 17 legislature, you should run for the county 18 legislature. 19 I hope Senator Smith is right. I 20 hope this deficit reduction package works. I 21 have my doubts. But I'll tell you what I am 22 more concerned about today is all of us in 23 this body, the pride that we should all have 24 in serving here. Refusing to yield -- I don't

Candyco Transcription Service, Inc.

(518) 371-8910 1 think I ever heard that term for the first 2 10 years I ever served here. I didn't know 3 you could do that. And today we did it, what, 4 probably a half a dozen times. 5 It's insulting to the other member, 6 it's just dead wrong, and it demeans all of 7 us. 8 And I would strongly suggest that 9 Senator Smith and Senator Skelos get together 10 and that we stop this nonsense. Because 11 Majority Leader Smith, I think those 12 editorials are going to be not very positive 13 about our body. And to be honest with you, I 14 don't think we deserve a positive editorial. 15 Because I am embarrassed and I am ashamed at 16 what went on on this floor today. 17 Thank you, Madam President. 18 ACTING PRESIDENT STEWART-COUSINS: 19 Senator Morahan. 20 SENATOR MORAHAN: Thank you, 21 Madam President. 22 We have witnessed our Governor 23 going down to Washington, pleading for help 24 for additional aid for New York, the Empire

Candyco Transcription Service, Inc.

(518) 371-8910 1 State, asking for, to use an overused word, a 2 bailout, and we expect Washington now to come 3 with a bailout for New York. We hear from 4 Senator Schumer every half hour about what may 5 be coming and what may not be coming, when it 6 may be coming, if it ever comes. It's a bill 7 that still has to get out of the Senate in 8 Washington, probably disguised from the one 9 that was in the House. 10 We, in turn, come out with a 11 deficit reduction plan that cuts all the aid 12 to the people and industries, the mom-and-pops 13 and the families in New York. So we're doing 14 just the opposite of what we're asking 15 Washington to do for us. 16 All these grave cuts, as Senator 17 Kruger brought up -- Carl Kruger, that is -- 18 about mental health. We're doing things that 19 are going to protect mental health. But I 20 look at the cuts, and we're cutting mental 21 health that serves the families and people who 22 are really in need of help. Mental health 23 associations, other organization. All of 24 these are non-state operational cuts.

Candyco Transcription Service, Inc.

(518) 371-8910 1 Now, if we want to make cuts, we 2 want to make state operational cuts. There 3 must be an army of people behind the 4 administration or the alleged administration 5 that would have been there to process all of 6 this money. They're not on this page of cuts. 7 We didn't cut anything of the state 8 operations. 9 We cut all those things that were 10 designed to create jobs, designed to help 11 people get health insurance, designed to help 12 some of our not-for-profits, who in turn work 13 at substandard wages, as far as I'm concerned, 14 because the state is not doing that job. We 15 initially contracted all these not-for-profits 16 to do these things because we thought they 17 could do it cheaper than us. So we deloaded 18 the responsibility, gave them a few bucks. 19 Now that they're out there doing that, we're 20 going to take back the few bucks. Right in 21 the middle of their process. 22 Now, I don't know who's been 23 meeting with the advocacy groups that have 24 come to Albany in the last several weeks. Not

Candyco Transcription Service, Inc.

(518) 371-8910 1 so much worried about this, because they 2 didn't expect this. 3 The other comment was that we 4 didn't do this in August. The Governor called 5 us back in August to deal with this, but he 6 never gave us a bill. September? December? 7 Whenever it was. He called us back to deal 8 with it, but he didn't give us a bill. So we 9 gaveled in, gaveled out, and went home. 10 Nothing to vote on. 11 If we want to do substantial cuts 12 that hurt, we will cut state operations. 13 We'll look at what it is we're doing, what 14 we're paying for our highways, what we're 15 paying for our asphalt, what we're doing in 16 all of our agencies as we operate and meet our 17 responsibilities. 18 But this issue here of sacrifice -- 19 we're not sacrificing a thing. We're cutting 20 back to people who need us. We're cutting 21 back, and then we add insult to injury by 22 increasing costs to them, causing possible 23 unemployment. And I don't know if that's a 24 progressive way to do business here.

Candyco Transcription Service, Inc.

(518) 371-8910 1 I don't have all the answers. I 2 don't presume to be the genius. But I think, 3 if we're trying to help the people, we're 4 trying to help the families in New York cope 5 with making a living, cope with trying to pay 6 their bills, then I think we should have gone 7 about it a different way. 8 And maybe collectively, if we all 9 had some input, maybe there are smarter people 10 in this chamber than me who would have come up 11 with some good ideas. But it's difficult to 12 do that at 12 noon and I know I'm going to 13 vote on it the same afternoon. Difficult, but 14 nobody has asked me. 15 So I tend to think what we're doing 16 today is -- it looks like a cut, but it isn't 17 a cut. It looks like we're worrying about the 18 people of New York, but we're not worrying 19 about the people in New York, we're driving up 20 prices to them. 21 And I don't care about the 22 industries and all those guys, they're all big 23 fellas. Okay? But then we do the sweep, the 24 sweep of the SUNYs. I don't know if it's a

Candyco Transcription Service, Inc.

(518) 371-8910 1 sweep if you just take all their money. They 2 had the plans for that money when they said 3 they were going to raise tuitions. All plans. 4 They weren't going to ask the state for this, 5 that and the other thing. 6 Then somehow we convinced them to 7 give up their plan and have the students pay 8 more tuition -- not for the school, not for 9 their books, not for their professors, but to 10 give that money to us. 11 I don't know if that's a sweep or a 12 theft or whatever it may be. But I just don't 13 like what we're doing here today. And I don't 14 know what the steamroller approach was today. 15 I feel a little sad that we didn't do it a 16 better way, a less cruel way for the people of 17 the State of New York. 18 So if anyone is going to get up and 19 put a flag in the ground and declare victory 20 on this bill, I will debate them in their 21 district, I will debate them on this floor, 22 and I'll debate them in the hallways. Because 23 this is not cutting, this is breaking promises 24 to the people of the State of New York, the

Candyco Transcription Service, Inc.

(518) 371-8910 1 families that we are here to protect, the 2 families that we are charged with doing the 3 best for them. The mom-and-pops and the 4 families and the kids that we have the future 5 vested in when we talk about our SUNY 6 colleges. 7 Thank you, Madam President. 8 ACTING PRESIDENT STEWART-COUSINS: 9 Senator Larkin. 10 SENATOR LARKIN: Thank you, 11 Madam President. 12 We've been at this for three hours. 13 Maybe it's 23 years in the military that told 14 me in three hours we could have accomplished 15 something. 16 Carl Kruger is a good friend, and I 17 listened to what he said. That came from 18 New York, Carl. That was perfect. I listened 19 to what the Majority Leader said. That one 20 sounded good. 21 But I want to tell you something as 22 a State Senator starting my 31st year. I am 23 disappointed in what we're doing today. I'm 24 disappointed. I went through some of this,

Candyco Transcription Service, Inc.

(518) 371-8910 1 and I don't want to go through the rhetoric of 2 what my colleagues have said. I just hope and 3 pray that some of you paid attention to what 4 was said. 5 Are you saying here, in fact, that 6 on this side of the aisle there's no brains, 7 we couldn't have helped you? We voted for 8 Dean Skelos to be our leader on this side of 9 the aisle, and Tom Libous to be the number 10 two, based on their background, their 11 willingness to cooperate and do things. And 12 they're shut out. 13 I had a call before we started the 14 debate. The guy said, "What's in it?" I 15 said, "What's in what?" "This deficit 16 reduction." I said, "I don't know, I haven't 17 seen it yet." He said, "Then how the hell are 18 you going to vote on it?" I said, "Well, we 19 will look at it." 20 Well, let's look at it. You heard 21 what Tom said. You heard what Carl said. You 22 heard what Mike said. You heard what Senator 23 Hannon said. You heard what Mr. Farley said, 24 which I think was totally rude not to allow

Candyco Transcription Service, Inc.

(518) 371-8910 1 him to speak. And nobody answering Mike 2 Nozzolio. 3 This is a deliberative body. What 4 are we saying to the people on the outside? 5 We're not capable of answering a question so 6 what we'll do is pooh-pooh, shut them off? 7 You know, if we really wanted to do 8 a deficit reduction, we could have done it on 9 little paper like this. We could have looked 10 at some of the agencies. How many cars do we 11 have? Are we trying to be like the federal 12 government? They're going to spend 13 $600 million on new vehicles. 14 I think what we should have done 15 was open the Red Book. Has anybody here ever 16 looked at the Red Book and seen how many 17 departments we have and how many deputies to 18 the deputy to the deputy? There's probably a 19 couple of latrine orderlies in there too. 20 We should be looking at, when we 21 want a deficit reduction, to do the reduction. 22 I just looked at a few of the things here in 23 my district. I'm ashamed, honest ashamed to 24 go back home and say, to the Cancer Center in

Candyco Transcription Service, Inc.

(518) 371-8910 1 Cornwall, Stop it, you can't do it anymore 2 because the money is out of it. 3 I hope and pray to God I don't have 4 cancer, or my wife. But I have a daughter 5 that had it, and she goes to New York every 6 three months, she gets treatment. 7 But what happens if the Cornwall 8 facility is built, there will be a lot of 9 people -- not just a 56-year-old daughter, but 10 people older, people younger. But we're 11 taking it out of that. Why didn't we take 12 from someplace else? There's plenty of money 13 out there. 14 I had the good fortune of serving 15 for 23 years, and in some places they said 16 cut, cut. We never cut where it hurt the 17 troops. But when you start to say we're 18 worried about doctors giving medication, 19 putting it in the system -- we had a bill, 20 John Bonacic, all of us in the Hudson Valley, 21 that electronically took care of records. 22 We're going to stop it. So if somebody in 23 your family gets the wrong doses, blame it on 24 the New York State Senate.

Candyco Transcription Service, Inc.

(518) 371-8910 1 Now, we heard a lot here in a 2 couple of press releases over the last three 3 or four months, we have to be good and kind to 4 those young troops coming back from Iraq. You 5 know what, put your sign up, "I Support the 6 Troops." 7 You know, I'm hard on you and I 8 don't care if you don't like me, but dammit, 9 none of you have ever served in combat. 10 There's not one person in this room who's been 11 in combat but myself. I'm not a hero, but 12 dammit, don't say we're going to take care of 13 them and then there's five or six items for 14 veterans -- the homeless veterans, the Purple 15 Heart recipients -- and you're cutting them 16 all. 17 Well, I'm going to tell them all, 18 because I'm going to write them and say they 19 like to put out press releases of what they're 20 doing for you, but they're doing not a damn 21 thing. 22 You talk about mental health. Tom 23 Morahan -- I don't know where he's at -- Tom 24 Morahan has done more locally with mental

Candyco Transcription Service, Inc.

(518) 371-8910 1 health and gotten groups together than 2 anybody. And what are we doing with them? 3 Just sit back and think. 4 I don't wear my religion on my 5 sleeve, but you think back and you say, you 6 know, dear Lord, thank You that a new child 7 that we just had is normal, is normal and 8 nothing else is wrong. And what are you 9 doing? Could care less. 10 Tom said something about the 11 agencies. They're the ones that are running 12 this. We're taking the money from them. 13 We're not taking it from the state. Go 14 through the Red Book. Go through some of the 15 departments. How many vehicles do we really 16 need, how many credit cards that we have out 17 there? 18 Senator Farley talked about the 19 bank crisis that we had before. Yes, and so 20 did Jim Seward, who's the national president 21 of the national insurance group. And what are 22 we doing? We're not looking at anything. 23 We're looking to go back to our local issues 24 and tell people in our district, huh, I voted

Candyco Transcription Service, Inc.

(518) 371-8910 1 to do this against you, I voted to do this. 2 I challenge you, I'll go back to 3 your district like Morahan said, and you 4 explain to your people why you took this away, 5 why you wanted them to stop building a cancer 6 center. 7 You know, it's a sad day in this 8 state when we do this. We could have done 9 this back in August when the Governor first -- 10 when we came back. We could have sat down and 11 said, Let's look at all of the agencies. 12 We've got 32, 34, whatever we have. And we 13 could have looked at them and said do we 14 really need this, do we need that, do we need 15 the other. No, we don't want to do that, we 16 want to punish them. 17 And my colleagues on the other side 18 of the aisle, I remember when you used to say, 19 You don't care about the middle-class person, 20 you don't care about it. Well, guess what? 21 We did then and we do now. You can talk all 22 you want about helping people. But when you 23 tell people, I'm going to raise your insurance 24 premium, I'm going to do this -- by the way,

Candyco Transcription Service, Inc.

(518) 371-8910 1 when your son or daughter comes home from 2 Iraq, I'm going to be standing there clapping, 3 thank you, thank you. And as soon as the 4 cameras are off, you get out of the way. And 5 what happens? Somebody locally has to worry 6 about that veteran, because that's not your 7 problem. 8 We should be ashamed of ourselves 9 for what we're doing today. We can tell 10 everybody else that this is great. You know, 11 Carl, I think you did a marvelous job your 12 first day in there. But be careful, because 13 you may need somebody in the bullpen. And 14 somebody in the bullpen is from this side of 15 the aisle. We could have helped you. And 16 then if we couldn't do it, we could honestly 17 say to everybody: We tried, it wouldn't work. 18 But when you go out there and tell 19 the people we didn't need the Republicans, 20 they only represent 48 or 49 percent of the 21 people -- nobody in this chamber knows more 22 about health than Kemp. Nobody. I didn't. 23 But I've often seen Kemp Hannon in our 24 meetings ask somebody else on that committee,

Candyco Transcription Service, Inc.

(518) 371-8910 1 "What do you really think about this? Do you 2 understand this?" And he's worked with them. 3 And so have others here. 4 Isn't it a shame that we're afraid 5 to discuss it openly with our colleagues? Is 6 that what we were sent here for? You can't 7 come out with papers and say change, change, 8 change, we're going to have transparency, 9 we're going to do something. Am I happy about 10 all the things that I've heard that we did? 11 No. But you don't make -- two wrongs never 12 made a right. 13 We have made a fool of ourselves 14 today getting up and saying this, this, this. 15 You know what? Before you go to bed tonight, 16 take a good look in the mirror and say -- ask 17 who caused this trouble and who failed to work 18 on it to make it happen. This is going to be 19 a sad day. 20 Just like you talked, Smith talked, 21 Majority Leader Smith, you talked about wait 22 till you see what we've got to do next. Well, 23 it would have been nice and easier if we all 24 worked together on this so we could be in a

Candyco Transcription Service, Inc.

(518) 371-8910 1 position to really work on what's going to 2 come behind us. 3 Sad day. More disgraceful because 4 we failed. Sixty-two people are elected to 5 this body, and we failed to say let us work 6 together on behalf of the people of the State 7 of New York. Three people in a room, whether 8 they're Democrats, Republicans or what, 9 doesn't account for the responsibilities of 10 the 212 legislators that are here. And I'm 11 sorry, and I will tell my people that I'm 12 embarrassed to be a part of it. 13 ACTING PRESIDENT STEWART-COUSINS: 14 Senator Flanagan. 15 SENATOR FLANAGAN: Thank you, 16 Madam President. On the bill. 17 I had an opportunity, as everyone 18 else did, of course, to listen to my 19 colleagues. And I want to direct some of my 20 comments to what Senator Smith said and what 21 Senator Kruger said in particular, but I want 22 to start off by looking at what is not in this 23 deficit reduction plan, and I want to 24 highlight one person in particular, and that's

Candyco Transcription Service, Inc.

(518) 371-8910 1 Senator Dean Skelos. 2 You know, there is a lot of talk 3 about what happened in August, what happened 4 in September, what happened after the 5 election. The one thing I know with certainty 6 is that there are no midyear school cuts. 7 Now, we were not consulted as part of this 8 negotiation, but I think it was Senator Skelos 9 back at that point who sent a very strong 10 message that that was an issue that was 11 clearly off the table. That was something 12 that was incredibly important to all of our 13 local school districts throughout the State of 14 New York, and fortunately that's not in this 15 bill. 16 So to Senator Skelos, your speaking 17 on our behalf at that point I think resonated 18 and helped stave off something like that being 19 included today. 20 And to Senator Smith in particular, 21 I was talking to Senator Lanza and I found out 22 that I was not special. I thought I was 23 special because after Senator Smith got 24 elected and we went through the rules changes,

Candyco Transcription Service, Inc.

(518) 371-8910 1 I got a plant and I got a beautiful note. 2 Now, I don't know if all of you in the 3 majority got it, but I have found out, in 4 canvassing some of my colleagues, that we're 5 all recipients of these beautiful plants. 6 And I just checked, I wanted to 7 make sure I was getting it right, because I 8 think it speaks to some of what we're doing 9 today. I got a card -- and I hope everybody 10 everyone else got something similar -- from 11 Malcolm that said "Unity will be the signature 12 of our success." I was elated. I was joyful, 13 I was ecstatic, I was hopeful. 14 And I just called my office, and 15 they told me the plant wilted. 16 (Extended laughter.) 17 SENATOR FLANAGAN: So to Senator 18 Smith, I'll go back and water the plant. I 19 will nurture it. 20 But I will say this, in all 21 seriousness. I think what has taken place 22 today, I really think that you would have 23 served yourself much better, and please don't 24 think I'm lecturing, if, when you were asked

Candyco Transcription Service, Inc.

(518) 371-8910 1 if we were consulted, a simple no -- just as 2 you said no to yielding -- would have 3 sufficed. 4 Because I can tell you what I will 5 do when I go back home, because there is great 6 cry for unity and bipartisanship. I will tell 7 the folks that I deal with on issues that are 8 important to them that right now there is none 9 of that. There are no joint negotiations, 10 there are no public leaders' meetings, there 11 is no deliberation the way everyone has talked 12 about. 13 And fortunately, I have credibility 14 in my area, not only in my own district but 15 across our region, on a number of issues and 16 can say that when we speak, right now it's not 17 with one voice. And that's a shame. That's a 18 shame for Long Island, and it's a shame for 19 all of New York State. 20 Now, I also listened to Senator 21 Kruger talk about comments relating to the 22 process. And Senator Smith, something else 23 you said in response to Senator Saland was 24 that, in answering how this process unfolded,

Candyco Transcription Service, Inc.

(518) 371-8910 1 you said it started in December and it ended 2 today. 3 And I think what I would highlight, 4 other than a lot of the things my colleagues 5 have discussed -- the taxes are one thing, the 6 assessments are another thing -- but there is 7 absolutely nothing creative, nothing 8 innovative, nothing new and nothing original. 9 And don't tell me that we couldn't 10 have done it, and don't tell me that it 11 couldn't have been brought forth, and don't 12 tell me we wouldn't have had the Governor on 13 board -- because he has the power of the pen, 14 he could have provided a message of 15 necessity -- that it would have honed in on 16 one area that is so sorely lacking, that's 17 where the real embarrassment is, and that's in 18 the area of economic development. 19 There is nothing. There's not a 20 tax incentive, there is not a tax credit, 21 there is nothing for the small business 22 community to look at and say, "By golly, 23 that's what I'm going for. That's a new 24 program. They finally did something

Candyco Transcription Service, Inc.

(518) 371-8910 1 different." 2 There's nothing in there that says 3 the Superintendent of Insurance, now with all 4 this money, has to rereview every single 5 regulation and find out whether it actually 6 benefits the consumer and the people who are 7 paying the premiums. Not the insurance 8 companies. 9 There's nothing like that for the 10 Health Department. There's nothing like that 11 for the Tax Department. 12 And that's where I think the real 13 failure is. Because if we are going to make 14 change, now is the time to make it, those are 15 the areas to make it, and we should be holding 16 our agencies' feet to the fire. And nobody 17 should be more responsible for that than the 18 Governor of the State of New York. 19 So to Majority Leader Smith, in 20 terms of bipartisanship, we have a lot of room 21 for improvement. And until I feel that I can 22 go back and say with a straight face that 23 we're working together, I'm going to tell 24 people, effective now, we're not unified. And

Candyco Transcription Service, Inc.

(518) 371-8910 1 we're going to have to advocate positions, and 2 if they are different, so be it. I understand 3 that. I respect it. But I don't think it's 4 fair to go out to the public and say that 5 somehow we were involved. 6 And I -- look, we're not involved, 7 that's okay. Not the way it should be done, 8 in my estimation, but we should be at least 9 straightforward and say "We did this on our 10 own, we're either going to sink or we're going 11 to swim in relation to that." So I'll work on 12 the plan, but you have to work with me. 13 ACTING PRESIDENT STEWART-COUSINS: 14 Senator Nozzolio. 15 SENATOR NOZZOLIO: Madam 16 President, thank you. On the bill. 17 I rise with great respect and 18 admiration for my colleagues who have 19 discussed the details of this measure now 20 going on the third hour. It was more, though, 21 than Senator Flanagan's plant that may have 22 died today. I think certainly, by all 23 accounts, decorum in this house is 24 significantly disengaged.

Candyco Transcription Service, Inc.

(518) 371-8910 1 That I've stood for hours on end in 2 discussing legislation that we have legitimate 3 disagreements about in my 17 years now in this 4 body. And those legitimate disagreements are 5 all part of the process, part of the respect 6 that we have for each other. And the 7 discussion, I've always believed, was 8 important to yield, to take questions from my 9 colleagues regardless of their position and 10 the degree and nature of their question. 11 I rise, though, to discuss further 12 the legislation that comes before us, 13 legislation that I believe strongly was, as 14 majority members, the other side of the aisle 15 had to make the case as to why this was a 16 measure that was in the best interests of the 17 people of the State of New York. 18 I don't have to discuss at length 19 the crisis that we are confronted with today. 20 The economic situation is worse today than all 21 of our lifetimes, even Senator Larkin's 22 lifetime. That it is a situation that no one 23 has been faced with and certainly this body 24 has not faced during any of our tenure.

Candyco Transcription Service, Inc.

(518) 371-8910 1 That requires solutions, and those 2 solutions have to be discussed. Those 3 solutions need to be implemented, but 4 implemented in a way that is truly in a 5 bipartisan fashion. That did not exist today. 6 There was no bipartisanship. 7 There was also no effort to 8 understand that these solutions to our crisis 9 have to be evenhanded, that upstate should be 10 treated in the same ways as downstate. And 11 that clearly was not the case. 12 Despite Senator Kruger's 13 admonitions that utility rates would not rise 14 under this legislation, I think that when you 15 have a $370-plus million transfer from an 16 authority who is designed to keep utility 17 costs down, that's got to affect the cost of 18 the product, that has to affect the cost of 19 power, that has to have an impact on the 20 ratepayers, that will have an impact on the 21 manufacturing interests of all the state, but 22 particularly upstate New York. 23 That should have been debated. 24 There should have been a greater analysis.

Candyco Transcription Service, Inc.

(518) 371-8910 1 There should have been a more extensive 2 presentation by those who are proposing this 3 raid on the Power Authority. Similarly to 4 Senator Seward's questions about the impact to 5 healthcare. Those questions were not answered 6 today. 7 And, Senator Smith, you may be 8 proud of this deficit reduction plan, but 9 you've got still a lot of explaining to do. 10 This measure has not been adequately 11 explained, it has not been adequately 12 justified. Frankly, we want to join you in 13 meeting the crisis that the economic 14 conditions present to our state. 15 And our citizens care less about 16 the decorum of this house. They care about 17 the performance of this house. And we see 18 today a performance that is certainly 19 incomplete and may be a failing grade. That 20 failure, though, means fewer jobs, it means 21 our state will not rebound from the crisis. 22 If there's anything that history has taught 23 us, it's not necessarily what the crisis is 24 before us, but how we react to that crisis.

Candyco Transcription Service, Inc.

(518) 371-8910 1 New York has not got a good track record, does 2 not have a good track in response to economic 3 crisis. 4 The last time there was a large 5 recession, in the early nineties, we did not 6 respond appropriately. It took New York more 7 than a decade to get out of the recession, 8 while the rest of the nation was expanding 9 jobs across every state in this country, with 10 the exception of New York and other states in 11 the Northeast that did not follow the policies 12 of taxing less, spending less, and helping our 13 state to recover. 14 The solutions proffered by this 15 legislation are not complete. They have not 16 demonstrated that they are fair across the 17 state. And that we certainly have serious 18 objections about them, but objections that 19 could have easily been rectified with dialogue 20 prior to the placement of this bill. 21 And how many times have we heard 22 Senator Schneiderman, Senator Krueger, others 23 discuss how the message of necessity process 24 needed to be reformed. Well, you had your

Candyco Transcription Service, Inc.

(518) 371-8910 1 opportunity to reform today. You failed. "F" 2 is the grade from the other side of the aisle 3 on reform. 4 And I hope, very seriously hope 5 that this measure does not further drive jobs 6 out of New York, that it does not further 7 increase electric rates, that it does not 8 increase the cost of healthcare. But the 9 danger signs are there, and it's likely that 10 this legislation will do all three of those 11 things and hurt us further in the economic 12 recovery that's necessary. 13 Thank you, Madam President. 14 ACTING PRESIDENT STEWART-COUSINS: 15 Senator Skelos, to close for the minority. 16 SENATOR SKELOS: Thank you, Madam 17 President. 18 If I could, I'd like to speak on 19 the bill and then make a few observations. 20 Senator Kruger, I know that you've 21 been an advocate of reform over the years. 22 And I guess we're still not sitting 23 alphabetically, which you would like. And you 24 were very quick to criticize the old majority.

Candyco Transcription Service, Inc.

(518) 371-8910 1 But I also want to point out and 2 remind everybody, the old majority was willing 3 to make you a committee chairman and to pay 4 you the stipend and the staff that many other 5 people didn't have. That's the old majority 6 you just condemned today. 7 I'd like to point out also to all 8 in this room that what's important also are 9 our words. And our commitment when we 10 campaign and we make certain statements to the 11 press, that's important. And I know sometimes 12 in our business we tend to stretch things a 13 little bit. We understand that. And the 14 public understands that. 15 But when you make a campaign pledge 16 and you run your entire campaign on reform and 17 changing the way things are operating -- we 18 understand that you can make a pledge that 19 Senator Stachowski was going to be chairman of 20 Finance, and it's Senator Kruger. We 21 understand those things. We understand those 22 things. But what's critically important is 23 the reform. 24 When you were campaigning for the

Candyco Transcription Service, Inc.

(518) 371-8910 1 majority, there was a beautiful article in the 2 New York Times how -- I think Malcolm Smith, 3 Senator Smith was leaning against his desk. I 4 forget whether you had your jacket on or there 5 was suspenders. I forget the picture. But it 6 was a very -- suspenders. 7 But it was a very, very good 8 picture. Very good picture. Very positive, 9 that you were going to bring all this 10 wonderful reform to Albany. It would not be 11 three men in a room anymore, that there 12 wouldn't be messages of necessity. There 13 would be recorded votes. There would be all 14 these wonderful things that many of you in 15 your conference -- like Senator Krueger, 16 Senator Valesky -- have advocated for for 17 years. For absolute years. 18 And then when the people of the 19 state made a decision that they wanted a 20 change in leadership, I called up Senator 21 Smith and congratulated him on becoming 22 Majority Leader, which is appropriate. The 23 election was over, the people made a decision. 24 Then your conference made a decision after,

Candyco Transcription Service, Inc.

(518) 371-8910 1 you know, going back and forth a little bit. 2 The first thing he said to me, besides "thank 3 you" -- and he is a gentleman that way -- he 4 said, "I need you to govern. I need a 5 partnership with you to govern." All right? 6 "God has given me this position, but I need 7 you to help me to govern." 8 So what's the first thing we do as 9 we're governing in a partnership is we hear an 10 announcement, three men in a room are back. I 11 see Governor Paterson, who is a great 12 reformer -- and he pointed that out during the 13 campaign, how all these things should be 14 reformed and changed in Albany. And I saw 15 Shelly Silver -- nobody ever accused him of 16 being a reformer. 17 (Laughter.) 18 SENATOR SKELOS: And I saw 19 Malcolm Smith, our new Majority Leader, the 20 great reformer. And I didn't see -- well, I 21 couldn't see myself, but Senator Skelos as the 22 Minority Leader or Jim Tedisco, the Minority 23 Leader in the Assembly, as part of that 24 reform. As part of that reform.

Candyco Transcription Service, Inc.

(518) 371-8910 1 Now, let's go back in history a 2 little bit, because I've said before, the 3 Governor and sometimes some of my friends on 4 that side of the aisle become revisionists and 5 they forget history. And there is a lack of 6 consistency, I think, which bothers the people 7 of the State of New York in terms of 8 governing. 9 We can have different philosophical 10 differences. I mean, that's totally 11 appropriate. We're supposed to have debates 12 on the floor. 13 And then, incidentally, Senator 14 Smith, when you called time out on the 15 amendment, I remember on numerous occasions 16 when I was the deputy majority leader and Tom 17 Duane was sitting over here, he'd say to me, 18 You know, this is an important issue. Could 19 we have 15 minutes, 20 minutes, whatever it 20 was. I'd say sure. 21 Not on every issue. But if it was 22 something critically important or important to 23 your conference, we wouldn't just cut you off 24 and say your time is up. We would extend that

Candyco Transcription Service, Inc.

(518) 371-8910 1 courtesy and say, you know what, say your 2 piece, say what you have to say, and we 3 understand. 4 But right now the press, the public 5 is seeing total dysfunction on your side of 6 the aisle. And the fact that you've gone back 7 on your commitment to them -- Senator Valesky, 8 you've gone back on your commitment to them by 9 voting for that message of necessity. You've 10 gone back on your commitment. And I think 11 that's what troubles people, is when you make 12 a pledge and you go back on your commitment. 13 Now, Senator Smith, you brought up 14 today Washington, we have to send a message to 15 Washington. Well, you know what, I want to 16 congratulate President Obama because he 17 understands that bringing Republicans and 18 Democrats together are the way you get a 19 budget put together or you make changes that 20 are necessary in government. Not by just one 21 party. 22 And you know what? He has 23 one-party rule there. He didn't have to call 24 the Republican leadership or members of the

Candyco Transcription Service, Inc.

(518) 371-8910 1 Republican House, of the minority there, to a 2 meeting. He didn't have to do that with the 3 senators. But he opted to do it. He brought 4 them there. Because his commitment was to try 5 to put together a bipartisan package with the 6 majority leaders or the speakers, the minority 7 leaders being part of it. And that's the way 8 government should function. 9 Now, unfortunately, with Governor 10 Paterson, for some reason -- and I don't know 11 whether he's just afraid, concerned, whatever 12 it is, to bring all people together. I think 13 it's a mistake. And people are looking for 14 consistency when you make a pledge. 15 The Governor asked us to pass a 16 school property tax cap. We can have 17 differences of opinion; I understand that. 18 This body brought it up, at the Governor's 19 request, a program bill, and then he 20 criticized us for bringing it up. When he 21 sent us the program bill, amended it two times 22 that week. 23 In August, he brought us back in a 24 positive way, and we made certain cuts and

Candyco Transcription Service, Inc.

(518) 371-8910 1 changes that were necessary, that he asked 2 for, in a bipartisan basis. It was 3 accomplished. There wasn't acrimony. We did 4 it. 5 And then in December he called us 6 back in special session, never sent us a 7 program bill. We had a leaders' meeting in 8 public -- and you were there, Senator Smith, 9 as the minority leader then. All of us were 10 there. We had an open and frank discussion in 11 terms of what we thought was positive and 12 negative. And then he never sent us the 13 program bill. So we were then accused of not 14 governing, when he never sent us the program 15 bill. 16 So I think what we have to do today 17 is take a step back, as Republicans and 18 Democrats, and come to an understanding that 19 we're all supposed to be part of this process. 20 You know, as I travel the state, 21 there are people concerned. Three men in a 22 room. Paterson from New York City, Smith from 23 New York City, Silver from New York City, 24 Kruger from New York City, and Denny Farrell

Candyco Transcription Service, Inc.

(518) 371-8910 1 from New York City. Now, I think it's 2 appropriate that other parts of the state have 3 something to say about the process and what 4 goes on in Albany. 5 So I would urge you, Majority 6 Leader Smith, to go back and reflect upon that 7 first conversation we had when I called you to 8 congratulate you on becoming Majority Leader 9 and the first word out of your mouth was, 10 again, "Thank you," and the second statement 11 was "I need you and the Republicans to govern 12 with us." 13 We are prepared to do that, but we 14 can't do it unless we are part of that 15 process. And it goes beyond us. We 16 understand we're in the minority now. And if 17 you want to tweak us, do whatever, that's 18 fine. We understand that. 19 But today, Senator Valesky, Senator 20 Aubertine, I was speaking to the Central 21 New York manufacturers, who when I laid out to 22 them, and there were many of them from the 23 western part of the state, some of the things 24 that were happening today in terms of the

Candyco Transcription Service, Inc.

(518) 371-8910 1 Power Authority, covered lives taxes and other 2 things, they said, "Well, why didn't we" -- 3 meaning them -- "know about it?" 4 And I said, "Well, didn't you go to 5 your representatives?" And I believe they 6 said, "Oh, we spoke to them earlier today." I 7 said, "Well, didn't they tell you about this?" 8 And they said no. So I said, "My suggestion 9 is, rather than let me bore you, why don't you 10 go back and talk to Aubertine and Valesky and 11 let them tell you what's in this deficit 12 reduction plan." 13 So what's important as we move 14 through this process -- and if you wanted to 15 do a message of necessity, you could have done 16 it tomorrow, you could have done it Thursday. 17 So at least you could have had some semblance 18 of pride in the fact that what you've been 19 talking about in reform started on the first 20 day of this legislative session. 21 So I'm going to -- Madam President, 22 I thank you for the courtesy of recognizing 23 me -- I'm going to vote against this 24 legislation. I'm going to vote against it

Candyco Transcription Service, Inc.

(518) 371-8910 1 because it is anti-job creation, it is 2 legislation that will attack the affordability 3 of health insurance, and it is going to be 4 counterproductive in terms of creating jobs 5 throughout the state, especially upstate 6 New York, in districts such as Senator 7 Aubertine's and Senator Valesky's. 8 So thank you very much. 9 ACTING PRESIDENT STEWART-COUSINS: 10 Senator Smith, to close for the majority. 11 SENATOR SMITH: Thank you very 12 much, Madam President. 13 And to all of my colleagues, points 14 heard, points well-taken. Senator Saland, you 15 and I will do better next time. 16 But I do want to congratulate my 17 colleagues here today, on this side of the 18 aisle, Senator Kruger, all of you who have 19 taken the time to take a vote on a very 20 difficult matter. 21 We have a long way to go. We have 22 a long way to go. This is just the first day 23 that we're doing a bill that has some 24 controversy to it. We have a $13 billion

Candyco Transcription Service, Inc.

(518) 371-8910 1 deficit that we have to deal with, and that's 2 going to require all of us. This is just day 3 one. 4 We didn't ask to be in a position 5 to have to do this in such a way that we had 6 to get it done so that we don't lose a million 7 dollars a day going forward. We didn't ask 8 this. It was given to us by virtue of it not 9 happening in the past. So we are acting as 10 responsible as we can to get this done. 11 All I'm saying to you is we have 12 some time. So while I've heard your concerns 13 and your issues, all your points are 14 well-taken -- just like all of our points are 15 well-taken. And I hope you can appreciate 16 that. 17 But I want to congratulate the 18 Governor, I want to congratulate the Speaker 19 in the Assembly, and I want to congratulate 20 the Senate. Because today we are doing what 21 needs to be done to restore the faith of the 22 public, and that is making sure that we get 23 this balanced budget. 24 Process is going to get better.

Candyco Transcription Service, Inc.

(518) 371-8910 1 Senator Bonacic, Senator Valesky are on our 2 rules reform. When they come back to us in a 3 couple of months, perhaps they will put some 4 things in place that make things a little 5 better for all of us. Right now we have to 6 get this done, and that's what we're doing 7 today. 8 Thank you, Madam President. 9 ACTING PRESIDENT STEWART-COUSINS: 10 Debate is closed. 11 The Secretary will please ring the 12 bell. 13 SENATOR LIBOUS: Madam President, 14 can we request a slow roll call, please. 15 ACTING PRESIDENT STEWART-COUSINS: 16 Senator Libous, seeing five members standing, 17 we will have a slow roll call. 18 SENATOR LIBOUS: Thank you, Madam 19 President. 20 ACTING PRESIDENT STEWART-COUSINS: 21 The Secretary will read the last section. 22 THE SECRETARY: Section 3. This 23 act shall take effect immediately. 24 ACTING PRESIDENT STEWART-COUSINS:

Candyco Transcription Service, Inc.

(518) 371-8910 1 Call the roll slowly. 2 THE SECRETARY: Senator Adams. 3 SENATOR ADAMS: Yes. 4 THE SECRETARY: Senator Addabbo. 5 SENATOR ADDABBO: Aye. 6 THE SECRETARY: Senator Alesi. 7 SENATOR ALESI: No. 8 THE SECRETARY: Senator 9 Aubertine. 10 SENATOR AUBERTINE: Yes. 11 THE SECRETARY: Senator Bonacic. 12 SENATOR BONACIC: No. 13 THE SECRETARY: Senator Breslin. 14 SENATOR BRESLIN: Aye. 15 THE SECRETARY: Senator 16 DeFrancisco. 17 SENATOR DeFRANCISCO: No. 18 THE SECRETARY: Senator Diaz. 19 SENATOR DIAZ: Si. 20 THE SECRETARY: Senator Dilan. 21 SENATOR DILAN: Yes. 22 THE SECRETARY: Senator Duane. 23 SENATOR DUANE: Yes. 24 THE SECRETARY: Senator Espada.

Candyco Transcription Service, Inc.

(518) 371-8910 1 SENATOR ESPADA: Yes. 2 THE SECRETARY: Senator Farley. 3 SENATOR FARLEY: No. 4 THE SECRETARY: Senator Flanagan. 5 SENATOR FLANAGAN: No. 6 THE SECRETARY: Senator Foley. 7 SENATOR FOLEY: Aye. 8 THE SECRETARY: Senator 9 Fuschillo. 10 SENATOR FUSCHILLO: No. 11 THE SECRETARY: Senator Golden. 12 SENATOR GOLDEN: No. 13 THE SECRETARY: Senator Griffo. 14 SENATOR GRIFFO: No. 15 THE SECRETARY: Senator Hannon. 16 SENATOR HANNON: No. 17 THE SECRETARY: Senator 18 Hassell-Thompson. 19 SENATOR HASSELL-THOMPSON: Yes. 20 THE SECRETARY: Senator Huntley. 21 SENATOR HUNTLEY: Yes. 22 THE SECRETARY: Senator C. 23 Johnson. 24 SENATOR CRAIG JOHNSON: Yes.

Candyco Transcription Service, Inc.

(518) 371-8910 1 THE SECRETARY: Senator O. 2 Johnson. 3 SENATOR OWEN JOHNSON: No. 4 THE SECRETARY: Senator Klein. 5 SENATOR KLEIN: Yes. 6 THE SECRETARY: Senator 7 L. Krueger. 8 SENATOR LIZ KRUEGER: Yes. 9 THE SECRETARY: Senator C. 10 Kruger. 11 SENATOR CARL KRUGER: Yes. 12 THE SECRETARY: Senator Lanza. 13 SENATOR LANZA: No. 14 THE SECRETARY: Senator Larkin. 15 SENATOR LARKIN: No. 16 THE SECRETARY: Senator LaValle. 17 SENATOR LaVALLE: No. 18 THE SECRETARY: Senator Leibell. 19 SENATOR LEIBELL: No. 20 THE SECRETARY: Senator Libous. 21 SENATOR LIBOUS: No. 22 THE SECRETARY: Senator Little. 23 SENATOR LITTLE: No. 24 THE SECRETARY: Senator

Candyco Transcription Service, Inc.

(518) 371-8910 1 Marcellino. 2 SENATOR MARCELLINO: No. 3 THE SECRETARY: Senator Maziarz. 4 SENATOR MAZIARZ: No. 5 THE SECRETARY: Senator McDonald. 6 SENATOR McDONALD: No. 7 THE SECRETARY: Senator 8 Monserrate. 9 SENATOR MONSERRATE: Aye. 10 THE SECRETARY: Senator 11 Montgomery. 12 SENATOR MONTGOMERY: Yes. 13 THE SECRETARY: Senator Morahan. 14 SENATOR MORAHAN: No. 15 THE SECRETARY: Senator Nozzolio. 16 SENATOR NOZZOLIO: No. 17 THE SECRETARY: Senator Onorato. 18 SENATOR ONORATO: Yes. 19 THE SECRETARY: Senator 20 Oppenheimer. 21 SENATOR OPPENHEIMER: Yes. 22 THE SECRETARY: Senator Parker. 23 SENATOR PARKER: Aye. 24 THE SECRETARY: Senator Perkins.

Candyco Transcription Service, Inc.

(518) 371-8910 1 SENATOR PERKINS: Yes, we can. 2 (Laughter.) 3 THE SECRETARY: Senator 4 Ranzenhofer. 5 SENATOR RANZENHOFER: No. 6 THE SECRETARY: Senator Robach. 7 SENATOR ROBACH: No. 8 THE SECRETARY: Senator Saland. 9 SENATOR SALAND: No. 10 THE SECRETARY: Senator Sampson. 11 SENATOR SAMPSON: Yes, we did. 12 THE SECRETARY: Senator Savino. 13 SENATOR SAVINO: Aye. 14 THE SECRETARY: Senator 15 Schneiderman. 16 SENATOR SCHNEIDERMAN: Yes. 17 THE SECRETARY: Senator Serrano. 18 SENATOR SERRANO: Yes. 19 THE SECRETARY: Senator Seward. 20 SENATOR SEWARD: No. 21 THE SECRETARY: Senator Skelos. 22 SENATOR SKELOS: No. 23 THE SECRETARY: Senator Smith. 24 SENATOR SMITH: Yes.

Candyco Transcription Service, Inc.

(518) 371-8910 1 THE SECRETARY: Senator Squadron. 2 SENATOR SQUADRON: Yes. 3 THE SECRETARY: Senator 4 Stachowski. 5 SENATOR STACHOWSKI: Yes. 6 THE SECRETARY: Senator Stavisky. 7 SENATOR STAVISKY: Yes. 8 THE SECRETARY: Senator 9 Stewart-Cousins. 10 SENATOR STEWART-COUSINS: Yes. 11 THE SECRETARY: Senator Thompson. 12 SENATOR THOMPSON: Yes. 13 THE SECRETARY: Senator Valesky. 14 SENATOR VALESKY: Yes. 15 THE SECRETARY: Senator Volker. 16 SENATOR VOLKER: No, we can't. 17 THE SECRETARY: Senator Winner. 18 SENATOR WINNER: No. 19 THE SECRETARY: Senator Young. 20 SENATOR YOUNG: No. 21 ACTING PRESIDENT STEWART-COUSINS: 22 The Secretary will tabulate and announce the 23 results. 24 THE SECRETARY: Ayes, 32. Nays,

Candyco Transcription Service, Inc.

(518) 371-8910 1 29. 2 ACTING PRESIDENT STEWART-COUSINS: 3 The bill is passed. 4 The Secretary will continue to 5 read. 6 THE SECRETARY: Calendar Number 7 11, Senate Budget Bill, Senate Print 250A, an 8 act to amend Chapter 50 of the Laws of 2008, 9 enacting the Public Protection and General 10 Government Budget. 11 ACTING PRESIDENT STEWART-COUSINS: 12 Senator Smith. 13 SENATOR SMITH: Madam President, 14 is there a message of appropriation from the 15 Governor at the desk? 16 ACTING PRESIDENT STEWART-COUSINS: 17 Yes, Senator, there is a message. 18 SENATOR SMITH: I move that we 19 accept the message of appropriation. 20 ACTING PRESIDENT STEWART-COUSINS: 21 All those in favor of accepting the message 22 signify by saying aye. 23 (Response of "Aye.") 24 ACTING PRESIDENT STEWART-COUSINS:

Candyco Transcription Service, Inc.

(518) 371-8910 1 Opposed, nay. 2 (Response of "Nay.") 3 ACTING PRESIDENT STEWART-COUSINS: 4 The message is accepted. 5 The Secretary will read. 6 SENATOR LIBOUS: Madam President. 7 ACTING PRESIDENT STEWART-COUSINS: 8 Senator Libous. 9 SENATOR LIBOUS: Thank you, Madam 10 President. 11 I believe there's an amendment at 12 the desk. I would ask that you waive its 13 reading and ask for its immediate adoption. 14 ACTING PRESIDENT STEWART-COUSINS: 15 The reading is waived. 16 SENATOR LIBOUS: Madam President, 17 Senator LaValle will speak on the amendment. 18 ACTING PRESIDENT STEWART-COUSINS: 19 Senator LaValle. 20 SENATOR LaVALLE: Thank you, 21 Madam President. 22 This amendment would restore 23 $79 million to the State University budget 24 rather than the $7.6 million that the Governor

Candyco Transcription Service, Inc.

(518) 371-8910 1 has allocated. 2 Some months ago, Governor Spitzer 3 announced the formation of a 30-member 4 commission. That 30-member commission worked 5 very, very diligently. And I think, being 6 part of that commission, along with my 7 counterpart at the time in the Assembly, 8 Assemblymember Glick, that members attended 9 every meeting. 10 That was followed up by Governor 11 Spitzer's 2008 State of the State message that 12 higher education had great importance. 13 Governor Spitzer talked about the investment 14 in higher education, talked about the 15 commission report. And I must tell you, for 16 the first time there was exuberance in the 17 higher ed community. 18 The higher ed community felt it was 19 their turn, that they were going to the 20 promised land. They had great expectations. 21 After all, we talked about investment, setting 22 up an innovation fund to attract the best and 23 brightest professors. We talked about the 24 formation of two flagship campuses, Stony

Candyco Transcription Service, Inc.

(518) 371-8910 1 Brook and UB, University of Buffalo. And 2 everyone talked about an investment not only 3 in the education of our students but an 4 investment in our economic development here in 5 New York State. 6 State University at Stony Brook has 7 budget of $1.77 billion. And the impact of 8 that on the Long Island economy is 9 $4.65 billion, and it supports over 59,000 10 jobs -- 59,000 jobs. The University of 11 Buffalo, the economic impact is $1.5 billion 12 in that region. 13 And so these were supposed to be 14 economic engines. These two universities were 15 going to lead the way in ensuring that we 16 would be competitive with peer systems 17 throughout these United States. That 18 exuberance turned into an irrational 19 exuberance, and I will explain. 20 For the first time at least in 21 30 years, and maybe ever, the SUNY Board of 22 Trustees said, well, we have been cut 23 $210 million from the last budget, a 24 $210 million cut. Just think, death by 210

Candyco Transcription Service, Inc.

(518) 371-8910 1 cuts. They said, Well, let us go out, make an 2 investment. We haven't had a tuition increase 3 in a long time. So we will increase the 4 tuition by $310 in this spring semester and 5 another $310 in the fall semester. 6 The City University Board of 7 Trustees probably, in retrospect, had better 8 sense. They said, Wait a minute, we're not 9 going to increase tuition. Students can't 10 prepare for it. It's just in the middle of 11 the year for them. Tough economy. Parents 12 have to come up with book money and now 13 another $310. It really made no sense. 14 But if the money was going to go to 15 the system, then it made some sense. It made 16 some sense. They are only getting, as in my 17 beginning remarks, instead of getting the 18 whole $76 million, they are getting a mere 19 pittance, $7.6 million. In the meantime, 20 campuses like Stony Brook and UB are down by 21 $8 million to $10 million from these cuts. 22 And what they will get in return doesn't come 23 close to what will impact their campuses. 24 The other thing that I think is

Candyco Transcription Service, Inc.

(518) 371-8910 1 critically important is that -- and I listened 2 to our Majority Leader talk about the change 3 should be from the bottom up. Well, as I 4 recall, the chairman of the SUNY board went 5 out, very strongly talked about making 6 investments in the State University of 7 New York, that the cuts that were already 8 imposed were very deep and they could not 9 sustain it. On top of, don't forget, we have 10 a system that in the last 24 months has not 11 had a permanent leader, we have not had a 12 chancellor. 13 So, you know, the irony is the two 14 systems -- City University has a chancellor 15 who's done a wonderful job, a board that had 16 good sense in saying we're not going to impose 17 this tuition in a midyear. 18 And the $8 million that we put into 19 this budget that the Majority Leader talked 20 about really doesn't help those students who 21 are middle income, who are continuing in the 22 TAP schedule to fall out of the schedule 23 because of higher incomes. You now have two 24 people working in every household, at least on

Candyco Transcription Service, Inc.

(518) 371-8910 1 the island, and some work two jobs, meaning 2 four incomes to try and produce a liveable 3 wage. 4 The commission talked about having 5 a rational tuition policy, one that made some 6 sense, that we would have a cost-of-living 7 index. And we have in this house -- I have 8 proposed and I know we've had discussions in 9 the Higher Education Committee and was 10 supported by Chancellor Ryan to have a 11 rational tuition policy that would provide 12 every institution with reliable revenues. We 13 can predict it, predictable revenues. The 14 students would have a predictable increase. 15 It would be to the cost of living, and we 16 wouldn't have these spikes of $800, $600. 17 And so I felt that as long as we 18 were going to have a tuition increase that 19 many students couldn't prepare for, we have to 20 remember the economy that we are in. And 21 people here may think, ah, $310, what's $310. 22 I can tell you I have had parents come to my 23 office in tears that they have loans to the 24 max, they have to buy books mid-semester. The

Candyco Transcription Service, Inc.

(518) 371-8910 1 $310 is like the straw to break the camel's 2 back. 3 So we've gone from great 4 exuberance -- well, I'll tell you, there is no 5 joy in Mudville. None. Absolutely none. And 6 think of the campuses across this state, 7 starting with State University at Stony Brook 8 and going up through the state, here at 9 Albany, Binghamton, Oneonta, Brockport. I 10 don't want to leave anyone out. But these 11 campuses are the vibrance, the SUNY campus is 12 the vibrance to that community. And when we 13 have layoffs -- and they will, because they're 14 bleeding and hemorrhaging from these cuts of 15 $210 million -- that impacts the economy of 16 upstate. 17 All I hear in speeches here, and 18 press conferences, we've got to do something 19 for the upstate economy. The SUNY system is a 20 vibrant part of our economic development 21 strategy in this state. And not giving it 22 some resources, we are damaging our economy, 23 the jobs. And you're going to be hearing it, 24 students saying I can't graduate because

Candyco Transcription Service, Inc.

(518) 371-8910 1 course were cut. We're going to go back to a 2 period of time when students couldn't get what 3 they needed to graduate and had to stay in 4 school another semester in order to graduate. 5 This is something that in the 6 scheme of things -- and I know, we hear it 7 every day, don't cut me, cut someone else. My 8 colleagues, this is something and everyone 9 here knows that we are making an investment 10 not only in the people, in the quality of 11 education, but we are making an investment in 12 our economy. 13 And we just can't continue to go 14 on. This is a wrong message. I don't care 15 how you cut it, it's a wrong message. When 16 you cut $8 million to $10 million at Stony 17 Brook and you cut $8 million to $10 million at 18 UB, two of our great research institutions, 19 you are sending a message across this country 20 that we in this Legislature and this 21 government don't care, don't care about higher 22 education. 23 So people who thought they were 24 going to the promised land have found someone

Candyco Transcription Service, Inc.

(518) 371-8910 1 dropped them off on a desert with a one-way 2 ticket, and they're walking home. 3 Thank you, Madam President. 4 ACTING PRESIDENT STEWART-COUSINS: 5 Are there any other Senators wishing to be 6 heard on the amendment? 7 Senator DeFrancisco. 8 SENATOR DeFRANCISCO: Yes, just 9 to add two points. 10 One point is that this isn't just a 11 cut, this is a breaking of a word. If you get 12 people to vote for an increase that are on a 13 board on the theory that the money is going to 14 go for the kids and going to education and the 15 individuals, the young adults who are in 16 school are sold a bill of goods that this is 17 going to go to education, and then take the 18 money for something else, that's a breaking of 19 a word. 20 It's not just cutting, it's 21 breaking a word. They're paying for the 22 deficit when they supposedly, and were told, 23 they were paying to make up for the education 24 losses that already had occurred.

Candyco Transcription Service, Inc.

(518) 371-8910 1 Secondly, it points out one other 2 thing, the bad thing about -- another bad 3 thing about three New York City Democrats in a 4 room. Because this doesn't apply to CUNY, it 5 doesn't apply to the City University of 6 New York. 7 Now, I'm not quite sure what the 8 logic is that you would all be willing, 9 everybody, especially the upstate Senators, 10 would be willing to take the education money 11 from SUNY because it's there, and nothing 12 corresponding to CUNY. Now, there's something 13 basically wrong there. 14 So when we hear the rhetoric of 15 reform, maybe someone if they heard that in 16 that room, heard it from somebody from 17 upstate, they might have considered it 18 differently. 19 And so when you hear the rhetoric 20 that we're going to reform and you also hear 21 the rhetoric that we care about upstate, we're 22 going to take care of upstate -- well, you 23 did. You took care of upstate, you took care 24 of Long Island by getting their kids to have

Candyco Transcription Service, Inc.

(518) 371-8910 1 to pay more tuition, not for the education, 2 but more tuition so that the whole State of 3 New York, including New York City, could solve 4 a deficit problem. It's wrong. 5 And everyone from upstate and 6 everybody from Long Island should definitely 7 vote for this amendment. 8 ACTING PRESIDENT STEWART-COUSINS: 9 Are there any other Senators wishing to be 10 heard on the amendment? 11 (No response.) 12 ACTING PRESIDENT STEWART-COUSINS: 13 The question is on the non-sponsor motion to 14 amend Calendar Number 11. All those in favor 15 of the non-sponsor amendment please signify by 16 raising your hand. 17 The Secretary will announce the 18 results. 19 THE SECRETARY: Ayes, 29. Nays, 20 32. 21 ACTING PRESIDENT STEWART-COUSINS: 22 The amendment fails. 23 On the bill, Senator Smith. 24 SENATOR SMITH: Madam President,

Candyco Transcription Service, Inc.

(518) 371-8910 1 again, colleagues, we are here to do something 2 that sends the right message to our 3 19.5 million people, in addition to what we 4 need to send to our rating companies as well 5 as Washington, D.C. We are doing what was 6 necessary to close the budget gap of 7 $1.6 billion -- the Governor, our colleagues, 8 all of whom know that we have much more to do 9 with the $13 billion deficit that we have. 10 And we hope the message that is 11 clear after this vote today is that we are 12 prepared to make the tough decisions and 13 together as a body we will move forward and 14 deal with what we have to do for the next 15 round of cuts as well as trying to build the 16 economy of the State of New York. 17 ACTING PRESIDENT STEWART-COUSINS: 18 Are there any other Senators wishing to be 19 heard on the bill? 20 Hearing none, the debate is closed. 21 The Secretary will ring the bell. 22 SENATOR HANNON: Madam President. 23 ACTING PRESIDENT STEWART-COUSINS: 24 Senator Hannon.

Candyco Transcription Service, Inc.

(518) 371-8910 1 SENATOR HANNON: Thank you, Madam 2 President. I had my hand up before you said 3 the debate is closed. 4 Earlier today I made mention that I 5 wanted to discuss the effect of Washington on 6 what's happening. That's because Leader Smith 7 said this is only a warmup to dealing with the 8 main deficit. 9 It's been with great speed that 10 Washington has acted, unlike decades of 11 history that they've had. And that speed has 12 changed the landscape totally. The budget 13 that is submitted is truly no longer relevant. 14 Now, there's some question in my 15 mind whether stimulus is actually stimulus and 16 you can justify it, but I'll leave that to 17 Washington. 18 If you currently look at some 19 estimates of the bill that has passed the 20 House of Representatives, that amount of money 21 that would come to New York under that past 22 bill would be over $15 billion over nine 23 fiscal quarters, commencing October 1, 2008. 24 There's a whole new landscape.

Candyco Transcription Service, Inc.

(518) 371-8910 1 There are possibilities of trying to look at 2 what the proposed cuts to education, 3 transportation, clean air, clean water, and 4 health that have been proposed could be 5 changed. And unless we begin to realize that, 6 it's not going to happen. 7 I sat through a whole hearing all 8 day on health yesterday. Not only was there 9 no mention of the Deficit Reduction Act that 10 is the product of this bill, there was no 11 mention of what's happening in Washington. 12 This week the federal Senate is taking up 13 their version. It's anticipated next week 14 that they're going to go to conference 15 committee and that by the middle of this month 16 they will have a statute. 17 You can argue whether or not it's a 18 wise thing, whether it's a one-shot, whatever. 19 But if we are to leave money on the table by 20 passing taxes that decrease what we get or 21 enacting cuts that lessen what we get, we're 22 ill-servings the people of this state, we're 23 not providing for quality education, roads, 24 health.

Candyco Transcription Service, Inc.

(518) 371-8910 1 And I just think that I have heard 2 nothing out of the administration to indicate 3 that there is a changed landscape. President 4 Obama has kept a promise. I think we should 5 recognize that. And I would like to see some 6 difference in how we go forward. 7 For that reason, I am voting 8 against this legislation. 9 ACTING PRESIDENT STEWART-COUSINS: 10 Senator LaValle. 11 SENATOR LaVALLE: I'll be very, 12 brief, Madam President, because I think that I 13 know my colleagues here and I know their 14 commitment. 15 When I tell you that the State 16 University has been hit by a tsunami, I think 17 you know that. And all we are offering them 18 as a lifesaver or a life preserver is this 19 (indicating Lifesaver candy). That's what 20 we're throwing them, Senator Smith. 21 So I ask and I implore you to 22 really consider your vote, reconsider it, and 23 make the investment where we should be making 24 it, and that's with our State University.

Candyco Transcription Service, Inc.

(518) 371-8910 1 Thank you. 2 ACTING PRESIDENT STEWART-COUSINS: 3 Are there any other Senators wishing to be 4 heard on the bill? 5 Hearing none, debate is closed. 6 SENATOR LIBOUS: Madam President, 7 a slow roll call, please, on the bill. 8 ACTING PRESIDENT STEWART-COUSINS: 9 The Secretary will please ring the bell. 10 Before the Secretary reads the last 11 section, he will substitute the bill. 12 The Secretary will read. 13 THE SECRETARY: In relation to 14 Calendar Number 11, Senator Smith moves to 15 discharge, from the Committee on Rules, 16 Assembly Bill Number 163A and substitute it 17 for the identical Senate Bill Number 250A, 18 Third Reading Calendar 11. 19 ACTING PRESIDENT STEWART-COUSINS: 20 The substitution is ordered. 21 The Secretary will read the last 22 section. 23 THE SECRETARY: Section 5. This 24 act shall take effect immediately.

Candyco Transcription Service, Inc.

(518) 371-8910 1 ACTING PRESIDENT STEWART-COUSINS: 2 Seeing that five Senators have risen, a slow 3 roll call has been called. 4 The Secretary again will ring the 5 bell and call the roll slowly. 6 THE SECRETARY: Senator Adams. 7 SENATOR ADAMS: Yes. 8 THE SECRETARY: Senator Addabbo. 9 SENATOR ADDABBO: Yes. 10 THE SECRETARY: Senator Alesi. 11 SENATOR ALESI: No. 12 THE SECRETARY: Senator 13 Aubertine. 14 SENATOR AUBERTINE: Yes. 15 THE SECRETARY: Senator Bonacic. 16 SENATOR BONACIC: Madam 17 President, to explain my vote. 18 ACTING PRESIDENT STEWART-COUSINS: 19 Senator Bonacic, to explain his vote. 20 SENATOR BONACIC: I have the 21 University of New Paltz and the University of 22 Delhi in my Senate district, and I believe 23 that when those parents and students agreed to 24 pay a $600 increase in tuition and then to

Candyco Transcription Service, Inc.

(518) 371-8910 1 take 90 percent of that money away, that's a 2 betrayal of the students as well as the 3 middle-class families who wanted that money to 4 be invested in their children's education. 5 To me, it would have been wiser to 6 have waited for the stimulus package to see if 7 this burden on middle-class families to put 8 their children through college, this added 9 burden could have been avoided. 10 For that reason, Madam President, 11 I'm going to vote no. And thank you very 12 much. 13 THE SECRETARY: Senator Breslin. 14 SENATOR BRESLIN: Aye. 15 THE SECRETARY: Senator 16 DeFrancisco. 17 SENATOR DeFRANCISCO: No. 18 THE SECRETARY: Senator Diaz. 19 SENATOR DIAZ: Aye. 20 THE SECRETARY: Senator Dilan. 21 SENATOR DILAN: Yes. 22 THE SECRETARY: Senator Duane. 23 SENATOR DUANE: Yes. 24 THE SECRETARY: Senator Espada.

Candyco Transcription Service, Inc.

(518) 371-8910 1 SENATOR ESPADA: Yes. 2 THE SECRETARY: Senator Farley. 3 SENATOR FARLEY: No. 4 THE SECRETARY: Senator Flanagan. 5 SENATOR FLANAGAN: No. 6 THE SECRETARY: Senator Foley. 7 SENATOR FOLEY: Aye. 8 THE SECRETARY: Senator 9 Fuschillo. 10 SENATOR FUSCHILLO: To explain my 11 vote, Madam President. 12 ACTING PRESIDENT STEWART-COUSINS: 13 Senator Fuschillo, to explain his vote. 14 SENATOR FUSCHILLO: Just briefly. 15 You know, Senator Smith, I really 16 believe you are a bridge builder and I believe 17 in your heart you want to build bridges and 18 change things here. It didn't start off that 19 well. And we've heard that for three or four 20 hours already. And there's a lot of anger in 21 these chambers, and maybe this was a good 22 therapeutic session if nothing else. 23 But you said, you know, you've 24 traveled, and you mentioned Nassau and Suffolk

Candyco Transcription Service, Inc.

(518) 371-8910 1 County and throughout the state, and you said 2 we're doing what the people want. And I've 3 spoken to a lot of people that are getting 4 cuts in here -- the Nassau County district 5 attorney, with their office last week, they're 6 getting cut in the Medicaid fraud unit, which 7 actually saves the state money. 8 I met with North Shore LIJ head 9 Mike Dowling recently; they're getting cut. 10 I'm telling you, they don't want to get cut. 11 Senator Larkin talked about some 12 veterans' programs. We sponsored a bill here 13 last year where both sides of the aisle went 14 on the bill that dealt with PTSD when veterans 15 came back. And I worked with Senator Morahan 16 on this, and it passed unanimously. And we 17 appropriated $250,000 in the budget. The 18 Governor vetoed the bill, but kept the money. 19 And that money went from $250 down to $230, 20 now it's down to $188,000. 21 And everything I look in here -- 22 you know, cuts $10,000 here, $50,000 here, 23 $100,000 here. And I talked to Senator Duane 24 before, I said, you know, most of these

Candyco Transcription Service, Inc.

(518) 371-8910 1 programs that you've been championing for the 2 last ten years while you've been here are 3 cutting cut. 4 And I talked to the American Red 5 Cross today, it's getting cut. I've talked to 6 so many people, and not one person this year 7 or last year said to me "Cut me." 8 You know, we lost 42,000 jobs in 9 this state from November to December. And 10 Senator Young talked about what we've lost in 11 the last quarter. I wonder if anybody has 12 calculated how many jobs we're going to lose 13 from here. 14 You know, this is probably Liz 15 Krueger's worst day. And I say that because 16 I've listened to you for years. I've 17 listened, Senator. And you talked about the 18 reforms. And you weren't in the chambers when 19 Senator Bonacic spoke earlier about your 20 words. And I'm sure this is not the day you 21 wanted of reform. 22 And I can only hope, Senator Smith, 23 that what Senator Maziarz said, that you and 24 Senator Skelos get together. Because if

Candyco Transcription Service, Inc.

(518) 371-8910 1 anything about this plan -- and I'm going to 2 vote in the negative -- I just hope this does 3 reform the system the way it should be 4 reformed and we get rid of this anger and we 5 do the people's business. 6 I'll be voting in the negative. 7 Thank you. 8 ACTING PRESIDENT STEWART-COUSINS: 9 Thank you. 10 I'd like to remind the members that 11 it's two minutes to explain your votes. 12 The Secretary will continue to call 13 the roll. 14 THE SECRETARY: Senator Golden. 15 SENATOR GOLDEN: No. 16 THE SECRETARY: Senator Griffo. 17 SENATOR GRIFFO: No. 18 THE SECRETARY: Senator Hannon. 19 SENATOR HANNON: No. 20 THE SECRETARY: Senator 21 Hassell-Thompson. 22 SENATOR HASSELL-THOMPSON: Yes. 23 THE SECRETARY: Senator Huntley. 24 SENATOR HUNTLEY: Yes.

Candyco Transcription Service, Inc.

(518) 371-8910 1 THE SECRETARY: Senator C. 2 Johnson. 3 SENATOR CRAIG JOHNSON: Yes. 4 THE SECRETARY: Senator O. 5 Johnson. 6 SENATOR OWEN JOHNSON: No. 7 THE SECRETARY: Senator Klein. 8 SENATOR KLEIN: Yes. 9 THE SECRETARY: Senator 10 L. Krueger. 11 SENATOR LIZ KRUEGER: Yes. 12 THE SECRETARY: Senator 13 C. Kruger. 14 SENATOR CARL KRUGER: Yes. 15 THE SECRETARY: Senator Lanza. 16 SENATOR LANZA: No. 17 THE SECRETARY: Senator Larkin. 18 SENATOR LARKIN: No. 19 THE SECRETARY: Senator LaValle. 20 SENATOR LaVALLE: No. 21 THE SECRETARY: Senator Leibell. 22 SENATOR LEIBELL: No. 23 THE SECRETARY: Senator Libous. 24 SENATOR LIBOUS: No.

Candyco Transcription Service, Inc.

(518) 371-8910 1 THE SECRETARY: Senator Little. 2 SENATOR LITTLE: No. 3 THE SECRETARY: Senator 4 Marcellino. 5 SENATOR MARCELLINO: No. 6 THE SECRETARY: Senator Maziarz. 7 SENATOR MAZIARZ: Madam 8 President, on days like today, I miss Frank 9 Padavan. 10 I vote no. 11 (Laughter.) 12 ACTING PRESIDENT STEWART-COUSINS: 13 Senator Maziarz voting in the negative. 14 THE SECRETARY: Senator McDonald. 15 SENATOR McDONALD: No. 16 THE SECRETARY: Senator 17 Monserrate. 18 SENATOR MONSERRATE: Aye. 19 THE SECRETARY: Senator 20 Montgomery. 21 SENATOR MONTGOMERY: Yes. 22 THE SECRETARY: Senator Morahan. 23 SENATOR MORAHAN: No. 24 THE SECRETARY: Senator Nozzolio.

Candyco Transcription Service, Inc.

(518) 371-8910 1 SENATOR NOZZOLIO: No. 2 THE SECRETARY: Senator Onorato. 3 SENATOR ONORATO: Yes. 4 THE SECRETARY: Senator 5 Oppenheimer. 6 SENATOR OPPENHEIMER: Aye. 7 THE SECRETARY: Senator Parker. 8 SENATOR PARKER: Aye. 9 THE SECRETARY: Senator Perkins. 10 SENATOR PERKINS: Si, se puede. 11 THE SECRETARY: Senator 12 Ranzenhofer. 13 SENATOR RANZENHOFER: No. 14 THE SECRETARY: Senator Robach. 15 SENATOR ROBACH: Negatory. 16 THE SECRETARY: Senator Saland. 17 SENATOR SALAND: No. 18 THE SECRETARY: Senator Sampson. 19 SENATOR SAMPSON: Yes. 20 THE SECRETARY: Senator Savino. 21 SENATOR SAVINO: Aye. 22 THE SECRETARY: Senator 23 Schneiderman. 24 SENATOR SCHNEIDERMAN: Yes.

Candyco Transcription Service, Inc.

(518) 371-8910 1 THE SECRETARY: Senator Serrano. 2 SENATOR SERRANO: Yes. 3 THE SECRETARY: Senator Seward. 4 SENATOR SEWARD: No. 5 THE SECRETARY: Senator Skelos. 6 (Senator Skelos was indicated as 7 voting in the negative.) 8 THE SECRETARY: Senator Smith. 9 SENATOR SMITH: Yes. 10 THE SECRETARY: Senator Squadron. 11 SENATOR SQUADRON: Yes. 12 THE SECRETARY: Senator 13 Stachowski. 14 SENATOR STACHOWSKI: Yes. 15 THE SECRETARY: Senator Stavisky. 16 SENATOR STAVISKY: Yes. 17 THE SECRETARY: Senator 18 Stewart-Cousins. 19 SENATOR STEWART-COUSINS: Yes. 20 THE SECRETARY: Senator Thompson. 21 SENATOR THOMPSON: Yes. 22 THE SECRETARY: Senator Valesky. 23 SENATOR VALESKY: Yes. 24 THE SECRETARY: Senator Volker.

Candyco Transcription Service, Inc.

(518) 371-8910 1 SENATOR VOLKER: No. 2 THE SECRETARY: Senator Winner. 3 SENATOR WINNER: No. 4 THE SECRETARY: Senator Young. 5 SENATOR YOUNG: No. 6 ACTING PRESIDENT STEWART-COUSINS: 7 The Secretary will tabulate and announce the 8 results. 9 THE SECRETARY: Ayes, 32. Nays, 10 29. 11 ACTING PRESIDENT STEWART-COUSINS: 12 The bill is passed. 13 Senator Smith. 14 SENATOR SMITH: Madam President, 15 I hand up the following committee notice and 16 ask that they be filed in the Journal. 17 ACTING PRESIDENT STEWART-COUSINS: 18 To be filed in the Journal. 19 Senator Smith. 20 SENATOR SMITH: Madam President, 21 is there any further business at the desk? 22 ACTING PRESIDENT STEWART-COUSINS: 23 Senator Smith, the desk is clear. 24 SENATOR SMITH: There being none,

Candyco Transcription Service, Inc.

(518) 371-8910 1 Madam President, I move that we adjourn until 2 tomorrow, Wednesday, February 4th, at 3 3:00 p.m. 4 ACTING PRESIDENT STEWART-COUSINS: 5 There being no further business to come before 6 the Senate, on motion, the Senate stands 7 adjourned until Wednesday, February 4th, at 8 3:00 p.m. 9 (Whereupon, at 7:32 p.m., the 10 Senate adjourned.) 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Candyco Transcription Service, Inc.

(518) 371-8910