Monday, March 8, 2010

1 NEW YORK STATE SENATE 2 3 4 THE STENOGRAPHIC RECORD 5 6 7 8 9 ALBANY, NEW YORK 10 March 8, 2010 11 3:44 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 25

Candyco Transcription Service, Inc. 1 P R O C E E D I N G S 2 ACTING PRESIDENT STEWART-COUSINS: 3 The Senate will please 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 all bow our 11 heads in a moment of silence. 12 (Whereupon, the assemblage 13 respected a moment of silence.) 14 ACTING PRESIDENT STEWART-COUSINS: 15 The reading of the Journal. 16 The Secretary will read. 17 THE SECRETARY: In Senate, 18 Sunday, March 7, the Senate met pursuant to 19 adjournment. The Journal of Saturday, 20 March 6, was read and approved. On motion, 21 Senate adjourned. 22 ACTING PRESIDENT STEWART-COUSINS: 23 Without objection, the Journal stands approved 24 as read. 25 Presentation of petitions.

Candyco Transcription Service, Inc. 1 Messages from the Assembly. 2 Messages from the Governor. 3 Reports of standing committees. 4 Reports of select committees. 5 Communications and reports from 6 state officers. 7 Motions and resolutions. 8 Senator Klein. 9 SENATOR KLEIN: Madam President, 10 I have several motions. 11 First, on behalf of Senator 12 Thompson, I move to recommit Senate Print 13 Number 2766, Calendar Number 34 on the order 14 of third reading, to the Committee on Finance. 15 ACTING PRESIDENT STEWART-COUSINS: 16 So ordered. 17 Senator Klein. 18 SENATOR KLEIN: On behalf of 19 Senator Oppenheimer, I move to recommit Senate 20 Print Number 3315, Calendar Number 44 on the 21 order of third reading, to the Committee on 22 Local Government. 23 ACTING PRESIDENT STEWART-COUSINS: 24 So ordered. 25 Senator Klein.

Candyco Transcription Service, Inc. 1 SENATOR KLEIN: On behalf of 2 Senator Schneiderman, I move that the 3 following bill be discharged from its 4 respective committee and be recommitted with 5 instructions to strike the enacting clause: 6 Senate Bill Number 1633. 7 ACTING PRESIDENT STEWART-COUSINS: 8 So ordered. 9 Senator Klein. 10 SENATOR KLEIN: And, Madam 11 President, on behalf of Senator Montgomery, I 12 move that the following bill be discharged 13 from its respective committee and be 14 recommitted with instructions to strike the 15 enacting clause: Senate Bill Number 1293A. 16 ACTING PRESIDENT STEWART-COUSINS: 17 So ordered. 18 Senator Klein. 19 SENATOR KLEIN: Madam President, 20 are there any substitutions at the desk? 21 ACTING PRESIDENT STEWART-COUSINS: 22 Yes, there are. 23 The Secretary will read. 24 THE SECRETARY: On page 9, 25 Senator Sampson moves to discharge, from the

Candyco Transcription Service, Inc. 1 Committee on Codes, Assembly Bill Number 7395 2 and substitute it for the identical Senate 3 Bill Number 4534, Third Reading Calendar 132. 4 On page 12, Senator Dilan moves to 5 discharge, from the Committee on Codes, 6 Assembly Bill Number 225A and substitute it 7 for the identical Senate Bill Number 1169B, 8 Third Reading Calendar 187. 9 On page 12, Senator Schneiderman 10 moves to discharge, from the Committee on 11 Codes, Assembly Bill Number 5537A and 12 substitute it for the identical Senate Bill 13 Number 4593A, Third Reading Calendar 188. 14 On page 12, Senator Dilan moves to 15 discharge, from the Committee on Codes, 16 Assembly Bill Number 4467A and substitute it 17 for the identical Senate Bill Number 5172A, 18 Third Reading Calendar 190. 19 On page 13, Senator Huntley moves 20 to discharge, from the Committee on Codes, 21 Assembly Bill Number 9534 and substitute it 22 for the identical Senate Bill Number 6728, 23 Third Reading Calendar 192. 24 On page 13, Senator Valesky moves 25 to discharge, from the Committee on Local

Candyco Transcription Service, Inc. 1 Government, Assembly Bill Number 901A and 2 substitute it for the identical Senate Bill 3 Number 2831A, Third Reading Calendar 198. 4 And on page 14, Senator Stavisky 5 moves to discharge, from the Committee on 6 Finance, Assembly Bill Number 8220 and 7 substitute it for the identical Senate Bill 8 Number 4199, Third Reading Calendar 201. 9 ACTING PRESIDENT STEWART-COUSINS: 10 Substitutions ordered. 11 Senator Klein. 12 SENATOR KLEIN: Madam President, 13 I believe Senator Sampson has a resolution at 14 the desk. I ask that the title of the 15 resolution be read and move for its immediate 16 adoption. 17 ACTING PRESIDENT STEWART-COUSINS: 18 Senator Klein, has this resolution been deemed 19 privileged and submitted by the office of the 20 Temporary President? 21 SENATOR KLEIN: Yes, it has, 22 Madam President. 23 ACTING PRESIDENT STEWART-COUSINS: 24 Thank you. 25 The Secretary will read.

Candyco Transcription Service, Inc. 1 THE SECRETARY: By Senators 2 Sampson, Squadron, Stavisky and Duane, 3 legislative resolution commending 4 Asian-Americans for Equality upon the occasion 5 of its 36th Annual Lunar New Year Banquet on 6 March 11, 2010. 7 ACTING PRESIDENT STEWART-COUSINS: 8 The question is on the resolution. All those 9 in favor of adopting the resolution signify by 10 saying aye. 11 (Response of "Aye.") 12 ACTING PRESIDENT STEWART-COUSINS: 13 Opposed, nay. 14 (No response.) 15 ACTING PRESIDENT STEWART-COUSINS: 16 The resolution is adopted. 17 Senator Klein. 18 SENATOR KLEIN: Madam President, 19 I believe Senator Volker has a resolution at 20 the desk. I ask that the title of the 21 resolution be read and move for its immediate 22 adoption. 23 ACTING PRESIDENT STEWART-COUSINS: 24 Senator Klein, has this resolution been deemed 25 privileged and submitted by the office of the

Candyco Transcription Service, Inc. 1 Temporary President? 2 SENATOR KLEIN: Yes, it has, 3 Madam President. 4 ACTING PRESIDENT STEWART-COUSINS: 5 The Secretary will read. 6 THE SECRETARY: By Senator 7 Volker, legislative resolution commending 8 Niall Burgess, Consul General of Ireland at 9 New York, upon the occasion of his designation 10 for special recognition by the New York State 11 American Irish Legislators Society at its 12 Annual Dinner. 13 ACTING PRESIDENT STEWART-COUSINS: 14 Senator Volker. 15 SENATOR VOLKER: I would just 16 like to remind everybody that tonight is the 17 annual Irish-American Dinner at the Hibernian 18 Hall. And we hope to have the usual Irish 19 ruckus there. 20 And this resolution I'm going to 21 present to Niall Burgess, who's the consul 22 general of Ireland, at the dinner. And I 23 appreciate the passage of this resolution on 24 this date. 25 Thank you.

Candyco Transcription Service, Inc. 1 ACTING PRESIDENT STEWART-COUSINS: 2 Thank you, Senator Volker. 3 Are there any Senators wishing to 4 be heard on the resolution? 5 Then the question is on the 6 resolution. All those in favor please signify 7 by saying 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 Volker has indicated that 15 he'd like to open this resolution up to the 16 entire body for cosponsorship. Any Senator 17 wishing to not be on the resolution please 18 inform the desk. 19 Senator Klein. 20 SENATOR KLEIN: Madam President, 21 at this time can we please move to a reading 22 of the calendar. 23 ACTING PRESIDENT STEWART-COUSINS: 24 The Secretary will read. 25 THE SECRETARY: Calendar Number

Candyco Transcription Service, Inc. 1 61, by Member of the Assembly Gabryszak, 2 Assembly Bill Number 9925, an act to amend the 3 Civil Service Law, in relation to resolution. 4 ACTING PRESIDENT STEWART-COUSINS: 5 Read the last section. 6 THE SECRETARY: Section 2. This 7 act shall take effect immediately. 8 ACTING PRESIDENT STEWART-COUSINS: 9 Call the roll. 10 (The Secretary called the roll.) 11 ACTING PRESIDENT STEWART-COUSINS: 12 Announce the results. 13 THE SECRETARY: Ayes, 56. 14 ACTING PRESIDENT STEWART-COUSINS: 15 The bill is passed. 16 THE SECRETARY: Calendar Number 17 174, by Senator Squadron, Senate Print 5577A, 18 an act to amend the Alcoholic Beverage Control 19 Law, in relation to making provisions. 20 ACTING PRESIDENT STEWART-COUSINS: 21 Read the last section. 22 THE SECRETARY: Section 5. This 23 act shall take effect immediately. 24 ACTING PRESIDENT STEWART-COUSINS: 25 Call the roll.

Candyco Transcription Service, Inc. 1 (The Secretary called the roll.) 2 ACTING PRESIDENT STEWART-COUSINS: 3 Announce the results. 4 THE SECRETARY: Ayes, 56. 5 ACTING PRESIDENT STEWART-COUSINS: 6 The bill is passed. 7 THE SECRETARY: Calendar Number 8 176, by Senator Klein, Senate Print 5726, an 9 act to amend the Not-for-Profit Corporation 10 Law, in relation to reacquisition. 11 ACTING PRESIDENT STEWART-COUSINS: 12 Read the last section. 13 THE SECRETARY: Section 3. This 14 act shall take effect immediately. 15 ACTING PRESIDENT STEWART-COUSINS: 16 Call the roll. 17 (The Secretary called the roll.) 18 ACTING PRESIDENT STEWART-COUSINS: 19 Announce the results. 20 THE SECRETARY: In relation to 21 Calendar Number 176, recorded in the negative, 22 Senator Marcellino. 23 Ayes, 56. Nays, 1. 24 ACTING PRESIDENT STEWART-COUSINS: 25 The bill is passed.

Candyco Transcription Service, Inc. 1 THE SECRETARY: Calendar Number 2 178, by Senator L. Krueger, Senate Print 3 4260A, an act to amend the Real Property Tax 4 Law. 5 ACTING PRESIDENT STEWART-COUSINS: 6 Read the last section. 7 THE SECRETARY: Section 2. This 8 act shall take effect immediately. 9 ACTING PRESIDENT STEWART-COUSINS: 10 Call the roll. 11 (The Secretary called the roll.) 12 ACTING PRESIDENT STEWART-COUSINS: 13 Senator Saland, to explain his vote. 14 SENATOR SALAND: Thank you, Madam 15 President. To explain my vote. 16 Madam President, I'm voting against 17 this bill not because it adds or specifies a 18 designee from New York City to be on this 19 particular Real Property Services Board, but 20 by inference it elevates one geographic area 21 of the state over a host of other geographic 22 areas or regions of the state. 23 And this particular region of the 24 state, while it experiences real property 25 issues -- as do all others -- it historically

Candyco Transcription Service, Inc. 1 has had a maintenance of effort that's lower 2 than any other region of the state. So I 3 don't know why we're picking just the City of 4 New York when there are a host of other 5 regions that would be crying out for the same 6 type of membership. 7 And I'm going to, as I mentioned 8 when I rose, vote in the negative. 9 Thank you, Madam President. 10 ACTING PRESIDENT STEWART-COUSINS: 11 Senator Saland to be recorded in the negative. 12 Senator DeFrancisco. 13 SENATOR DeFRANCISCO: Yes, this 14 bill is extremely ironic, being from Central 15 New York. 16 We have a government now with a 17 Governor from New York City, a Lieutenant 18 Governor from New York City -- a nonelected, 19 by the way, Lieutenant Governor from New York 20 City. We've got an Attorney General from 21 New York City, we've got an Assembly 22 overwhelmingly controlled by New York City, 23 we've got a Senate Majority, 23 out of the 33 24 Majority, from New York City. 25 We're still waiting, by the way,

Candyco Transcription Service, Inc. 1 for our road and bridge money after the MTA 2 bailout. 3 We also have a chairman of Finance 4 from New York City, a vice chairman of Finance 5 from New York City, and I could go on to each 6 of the various positions in the State Senate. 7 And it seems to me that if anybody 8 needs protection, it's those regions outside 9 of New York City, in view of the New York 10 City-centric government that we currently have 11 at the present time. 12 So I vote no. 13 ACTING PRESIDENT STEWART-COUSINS: 14 Senator DeFrancisco to be recorded in the 15 negative. 16 Are there any other Senators 17 wishing to explain his or her vote? 18 Hearing none, announce the results. 19 THE SECRETARY: Those recorded in 20 the negative on Calendar Number 178 are 21 Senators Alesi, Bonacic, DeFrancisco, Farley, 22 Griffo, Hannon, Larkin, LaValle, Leibell, 23 Little, Marcellino, Ranzenhofer, Robach, 24 Saland, Skelos, Winner and Young. Also 25 Senator Flanagan.

Candyco Transcription Service, Inc. 1 Ayes, 39. Nays, 18. 2 ACTING PRESIDENT STEWART-COUSINS: 3 The bill is passed. 4 THE SECRETARY: Calendar Number 5 185, by Senator Duane -- 6 SENATOR KLEIN: Lay the bill 7 aside for the day. 8 ACTING PRESIDENT STEWART-COUSINS: 9 The bill is laid aside for the day. 10 THE SECRETARY: Calendar Number 11 192, substituted earlier by Member of the 12 Assembly Gordon, Assembly Print Number 9534, 13 an act to amend the Penal Law, in relation to 14 endangering the welfare. 15 ACTING PRESIDENT STEWART-COUSINS: 16 Read the last section. 17 THE SECRETARY: Section 4. This 18 act shall take effect on the 60th day. 19 ACTING PRESIDENT STEWART-COUSINS: 20 Call the roll. 21 (The Secretary called the roll.) 22 ACTING PRESIDENT STEWART-COUSINS: 23 Announce the results. 24 THE SECRETARY: Ayes, 57. 25 ACTING PRESIDENT STEWART-COUSINS:

Candyco Transcription Service, Inc. 1 The bill is passed. 2 THE SECRETARY: Calendar Number 3 197, by Senator Aubertine, Senate Print 2813B, 4 an act to amend the Public Authorities Law and 5 the Executive Law, in relation to 6 establishing. 7 ACTING PRESIDENT STEWART-COUSINS: 8 Read the last section. 9 THE SECRETARY: Section 3. This 10 act shall take effect immediately. 11 ACTING PRESIDENT STEWART-COUSINS: 12 Call the roll. 13 (The Secretary called the roll.) 14 ACTING PRESIDENT STEWART-COUSINS: 15 Announce the results. 16 THE SECRETARY: Those recorded in 17 the negative on Calendar Number 197 are 18 Senators Golden, Marcellino and Ranzenhofer. 19 Ayes, 54. Nays, 3. 20 ACTING PRESIDENT STEWART-COUSINS: 21 The bill is passed. 22 THE SECRETARY: Calendar Number 23 200, by Senator Oppenheimer, Senate Print 24 3903A, an act to amend the Education Law, in 25 relation to cooperative competitive bidding.

Candyco Transcription Service, Inc. 1 ACTING PRESIDENT STEWART-COUSINS: 2 Read the last section. 3 THE SECRETARY: Section 2. This 4 act shall take effect immediately. 5 ACTING PRESIDENT STEWART-COUSINS: 6 Call the roll. 7 (The Secretary called the roll.) 8 ACTING PRESIDENT STEWART-COUSINS: 9 Announce the results. 10 THE SECRETARY: Ayes, 57. 11 ACTING PRESIDENT STEWART-COUSINS: 12 Senator DeFrancisco, to explain his vote. 13 SENATOR DeFRANCISCO: Yes, I'm 14 voting in the affirmative. This is an 15 excellent bill, especially in view of the fact 16 that libraries are completely hammered by the 17 Governor's proposed budget. And it's 18 important to be able to do things much more 19 efficiently, and by cooperative bidding, that 20 will help. 21 And speaking of the budget, we're 22 well past 10 days from the date that the 23 Governor submitted the budget to the 24 Legislature. And we're rapidly approaching 25 April 1.

Candyco Transcription Service, Inc. 1 And the law that we passed to 2 reform the system -- I know we have a lot of 3 reformers in this room -- that law says that 4 we're supposed to have conference committees 5 appointed. Not only -- and a schedule of open 6 conference -- joint conference committees by 7 the Assembly and the Senate. 8 We are now approaching -- I think 9 it's almost two and a half weeks to the 10 budget, three weeks when we're supposed to 11 have the budget in. So I would request that 12 in addition to passing wonderful bills like 13 this one, that I vote in the affirmative, it 14 might be a good idea to follow the law that we 15 already have and the reformers that we have in 16 this room who sued for reform, who campaigned 17 on reform, who got a majority based upon 18 reform, who speak reform on a daily basis, 19 follow the rules as they exist, because that 20 was reform. And that would help us start the 21 budget process. 22 And it doesn't help just to blame 23 the Governor for his failures or his being 24 distracted. The fact of the matter is the 25 Governor proposed the budget, proposed 21-day

Candyco Transcription Service, Inc. 1 amendments. It's up to the Legislature to do 2 their job. 3 So we're waiting, and we're waiting 4 not so patiently. 5 Thank you, Madam President. 6 ACTING PRESIDENT STEWART-COUSINS: 7 Thank you, Senator DeFrancisco, who was 8 recorded in the affirmative. 9 And the bill has passed. 10 THE SECRETARY: Calendar Number 11 202, by Senator C. Kruger, Senate -- 12 SENATOR KLEIN: Lay the bill 13 aside for the day. 14 ACTING PRESIDENT STEWART-COUSINS: 15 The bill is laid aside for the day. 16 THE SECRETARY: Calendar Number 17 204, by Senator Aubertine, Senate Print 4837, 18 an act to amend the Highway Law, in relation 19 to permitting. 20 ACTING PRESIDENT STEWART-COUSINS: 21 Read the last section. 22 THE SECRETARY: Section 2. This 23 act shall take effect immediately. 24 ACTING PRESIDENT STEWART-COUSINS: 25 Call the roll.

Candyco Transcription Service, Inc. 1 (The Secretary called the roll.) 2 ACTING PRESIDENT STEWART-COUSINS: 3 Senator Montgomery, to explain her vote. 4 SENATOR MONTGOMERY: Yes, Madam 5 President. I rise in favor of this 6 legislation, and I thank Senator Aubertine for 7 introducing it. 8 It certainly is revenue-neutral as 9 it relates to the state, because it simply 10 authorizes farmers to advertise their goods on 11 state highways. 12 And I think this is an absolutely 13 wonderful idea, and I'm happy that we're 14 paying attention in small as well as large 15 ways to what happens to farmers upstate. 16 And I take this opportunity to 17 thank the farmers, the many, many farmers who 18 every weekend, even beginning now and on 19 through the spring and through the summer and 20 into the fall, come down to New York City and 21 bring fresh produce to people in my district 22 and all over the city. We welcome them. We 23 thank them because, for many communities that 24 I represent, they really are the only source 25 of fresh produce.

Candyco Transcription Service, Inc. 1 And so it's the farmers in New York 2 State serving the citizens of New York State 3 in urban areas like mine where we don't have 4 our own farms -- maybe one or two small 5 ones -- but they really make the difference 6 for us. And so we thank them. And certainly 7 I'm happy to support them being able to 8 advertise on the highways in our state. 9 Thank you, Madam President. I vote 10 aye. 11 ACTING PRESIDENT STEWART-COUSINS: 12 Senator Montgomery to be recorded in the 13 affirmative. 14 Are there any other Senators 15 wishing to explain his or her vote? 16 Announce the results. 17 THE SECRETARY: Ayes, 57. Nays, 18 0. 19 ACTING PRESIDENT STEWART-COUSINS: 20 The bill is passed. 21 THE SECRETARY: Calendar Number 22 205, by Senator Farley, Senate Print 5182A, an 23 act to amend the Alcoholic Beverage Control 24 Law, in relation to exemption. 25 ACTING PRESIDENT STEWART-COUSINS:

Candyco Transcription Service, Inc. 1 Read the last section. 2 THE SECRETARY: Section 3. This 3 act shall take effect immediately. 4 ACTING PRESIDENT STEWART-COUSINS: 5 Call the roll. 6 (The Secretary called the roll.) 7 THE SECRETARY: Ayes, 57. 8 ACTING PRESIDENT STEWART-COUSINS: 9 The bill is passed. 10 THE SECRETARY: Calendar Number 11 207, Senate Budget Bill, Senate Print 6602, an 12 act making appropriations for the legal 13 requirements of the state debt service. 14 SENATOR WINNER: Lay it aside. 15 ACTING PRESIDENT STEWART-COUSINS: 16 The bill is laid aside. 17 THE SECRETARY: Calendar Number 18 211, by Senator Addabbo -- 19 SENATOR KLEIN: Lay the bill 20 aside for the day. 21 ACTING PRESIDENT STEWART-COUSINS: 22 The bill is laid aside for the day. 23 Senator Klein, that completes the 24 reading of the noncontroversial calendar. 25 SENATOR KLEIN: Madam President,

Candyco Transcription Service, Inc. 1 can we please go to a reading of the 2 controversial calendar. 3 ACTING PRESIDENT STEWART-COUSINS: 4 The Secretary will ring the bell. Members are 5 all asked to come to the chamber for the 6 controversial reading of the calendar. 7 The Secretary will read. 8 THE SECRETARY: Calendar Number 9 207, Senate Budget Bill, Senate Print 6602, an 10 act making appropriations for the legal 11 requirements. 12 ACTING PRESIDENT STEWART-COUSINS: 13 Senator Flanagan. 14 SENATOR FLANAGAN: Madam 15 President, could we get an explanation of the 16 bill? 17 ACTING PRESIDENT STEWART-COUSINS: 18 Senator Kruger, an explanation has been 19 requested. 20 SENATOR CARL KRUGER: Thank you. 21 Through you, Madam President. 22 The bill is a simple one. It 23 provides for the mandatory payment of our debt 24 service for the fiscal year. 25 ACTING PRESIDENT STEWART-COUSINS:

Candyco Transcription Service, Inc. 1 Senator Flanagan. 2 SENATOR FLANAGAN: Madam 3 President, would Senator Kruger yield to 4 several questions? 5 ACTING PRESIDENT STEWART-COUSINS: 6 Senator Kruger, do you yield? 7 SENATOR CARL KRUGER: Let's take 8 them one at a time. 9 SENATOR FLANAGAN: Would Senator 10 Kruger yield to a question? 11 ACTING PRESIDENT STEWART-COUSINS: 12 Senator Kruger, do you yield to a question? 13 SENATOR CARL KRUGER: Yes, I do. 14 ACTING PRESIDENT STEWART-COUSINS: 15 Senator Kruger yields. 16 SENATOR FLANAGAN: Senator 17 Kruger, what's the total amount of debt 18 service authorized in this bill? 19 SENATOR CARL KRUGER: $5.86 20 billion. 21 SENATOR FLANAGAN: My 22 understanding -- 23 ACTING PRESIDENT STEWART-COUSINS: 24 Senator Flanagan -- 25 SENATOR FLANAGAN: Through you,

Candyco Transcription Service, Inc. 1 Madam President, would Senator Kruger continue 2 to yield? 3 ACTING PRESIDENT STEWART-COUSINS: 4 Senator Kruger, do you continue to yield? 5 SENATOR CARL KRUGER: Yes, I do. 6 SENATOR FLANAGAN: My 7 understanding, in reviewing this with our own 8 staff, is that the total appropriation 9 authority is for $9.29 billion. 10 SENATOR CARL KRUGER: That's 11 correct. 12 SENATOR FLANAGAN: Madam 13 President, through you, would Senator Kruger 14 continue to yield? 15 ACTING PRESIDENT STEWART-COUSINS: 16 Senator Kruger, do you continue to yield? 17 SENATOR CARL KRUGER: Yes, I do. 18 SENATOR FLANAGAN: I realize this 19 is esoteric, it's technical, it's not the most 20 exciting thing in the world. But I'm trying 21 to figure out how can I go back, when people 22 are going to ask potential questions about 23 this, and properly explain the details. 24 Because in reality, what we're doing as part 25 of this exercise today is starting the budget

Candyco Transcription Service, Inc. 1 process, certainly in the form of passing 2 bills. 3 So my initial two questions now 4 give me a contradictory set of facts. On the 5 one hand, you said it authorizes 6 $5.86 billion. And then I asked you if it was 7 really $9.29 billion, and you said yes, it 8 was. So what is the answer? Is it 9 $9.29 billion or $5.86 billion? 10 SENATOR CARL KRUGER: $5.86 11 billion cash. 12 SENATOR FLANAGAN: Okay. And 13 Madam President, through you, would Senator 14 Kruger continue to yield? 15 ACTING PRESIDENT STEWART-COUSINS: 16 Senator Kruger -- 17 SENATOR CARL KRUGER: Yes, I do. 18 ACTING PRESIDENT STEWART-COUSINS: 19 Senator Kruger continues to yield. 20 SENATOR FLANAGAN: Senator 21 Kruger, what makes up that difference? If 22 it's $5.86 billion in cash, what's the rest of 23 it? Because that's not a small amount of 24 money. 25 SENATOR CARL KRUGER: No, it's a

Candyco Transcription Service, Inc. 1 large amount of money, actually. 2 It's contingent upon several 3 factors. Firstly, we're also looking -- when 4 you're talking about that $9.2 billion, we're 5 also talking about a -- it's a -- well, let's 6 go simple. I'll try to keep it for myself. 7 The $5.86 billion is an increase. 8 When we start going to the $9.2 billion, an 9 increased $718 million, which would be based 10 upon the budget as proposed, which would be 11 actual -- that would be the appropriation. So 12 that's number one. 13 The total expenditures for the 14 state debt service are projected at 15 $6.4 billion for 2010-2011, which would be an 16 increase of $8.12 million, which is a 17 14.3 percent increase. 18 SENATOR FLANAGAN: Madam 19 President, through you, would Senator Kruger 20 continue to yield? 21 ACTING PRESIDENT STEWART-COUSINS: 22 Senator Kruger, do you continue to yield? 23 SENATOR CARL KRUGER: Yes, I do. 24 SENATOR FLANAGAN: I believe you 25 said $5.86 billion and then an additional --

Candyco Transcription Service, Inc. 1 was it $800 million or 600 million? 2 SENATOR CARL KRUGER: $718 3 million. 4 SENATOR FLANAGAN: Comprising 5 what? 6 SENATOR CARL KRUGER: It's an 7 increase year over year. 8 SENATOR FLANAGAN: I'm not 9 worried about the increase year over year. 10 I'm worried about what authority are we giving 11 to DOB and to the Executive to play with that 12 other money, the roughly $3.5 billion. What 13 makes up that $3.5 billion? 14 SENATOR CARL KRUGER: Well, the 15 contingent appropriation would be 16 $2.766 billion. 17 SENATOR FLANAGAN: And what is 18 that -- 19 ACTING PRESIDENT STEWART-COUSINS: 20 Senator Flanagan -- 21 SENATOR FLANAGAN: Madam 22 President, through you. 23 ACTING PRESIDENT STEWART-COUSINS: 24 Senator Kruger, do you continue to yield? 25 SENATOR CARL KRUGER: Yes, I do.

Candyco Transcription Service, Inc. 1 SENATOR FLANAGAN: What is that 2 money supposed to be for? Because that -- 3 again, if we're talking in the context of the 4 budget, we're talking about a substantial 5 amount of new debt or debt service being 6 available to the Division of the Budget. 7 SENATOR CARL KRUGER: Just to 8 clarify that point, Senator -- through you, 9 Madam President -- there is no new debt in 10 this bill. This is to pay our obligations of 11 prior debt. 12 SENATOR FLANAGAN: Madam 13 President, would Senator Kruger continue to 14 yield? 15 ACTING PRESIDENT STEWART-COUSINS: 16 Senator Kruger? 17 SENATOR CARL KRUGER: Yes, I do. 18 ACTING PRESIDENT STEWART-COUSINS: 19 He yields. 20 SENATOR FLANAGAN: Senator 21 Kruger, it's my understanding that there is 22 money in here to provide for new debt service 23 for capital projects that will be issued in 24 fiscal year 2010-2011. Is that accurate or 25 not?

Candyco Transcription Service, Inc. 1 SENATOR CARL KRUGER: There are 2 no new capital programs. 3 SENATOR FLANAGAN: Madam 4 President, through you, would Senator Kruger 5 continue to yield? 6 ACTING PRESIDENT STEWART-COUSINS: 7 Senator Kruger, do you continue to yield? 8 SENATOR CARL KRUGER: Yes, I do. 9 SENATOR FLANAGAN: I appreciate 10 the answer. That was not my question. 11 My question is, are we providing 12 new authority to pay debt service for capital 13 projects that may come into existence in the 14 next budget? I know there are no new capital 15 programs right now, but would there possibly 16 be under this legislation? 17 SENATOR CARL KRUGER: Through 18 you, Madam President, no. 19 SENATOR FLANAGAN: Madam 20 President, through you. Would Senator Kruger 21 continue to yield? 22 ACTING PRESIDENT STEWART-COUSINS: 23 Senator Kruger, do you continue to yield? 24 SENATOR CARL KRUGER: Yes, I do. 25 SENATOR FLANAGAN: Senator

Candyco Transcription Service, Inc. 1 Kruger, I have in front of me a list of new 2 sales from five different authorities and 3 agencies that are projected for fiscal year 4 2010-2011, approximately $4.5 billion in new 5 debt, which would call for $155 million in new 6 debt service that would be part of this bill 7 that we're doing today. 8 I didn't make this bill, the 9 Governor made this bill, and you're presenting 10 it to us. So how is that -- how does that fly 11 with what you're telling me? Because I'm 12 going on information that was provided by the 13 Division of the Budget and the Executive. It 14 clearly says that we are giving them authority 15 for the issuance of new debt. 16 SENATOR CARL KRUGER: Through 17 you, Madam President, I guess in terms that we 18 can understand, there is no new debt. This is 19 debt to pay for existing programs as they move 20 forward. 21 SENATOR FLANAGAN: I have one 22 last question for Senator Kruger, if he would. 23 ACTING PRESIDENT STEWART-COUSINS: 24 Senator Kruger, do you yield? 25 SENATOR CARL KRUGER: My

Candyco Transcription Service, Inc. 1 pleasure. Thank you. 2 SENATOR FLANAGAN: I want to be 3 clear. I do not for one second -- I don't 4 think any of us want to be an agent of delay. 5 But it is March 8th, and our fiscal year ends 6 March 31st. Why are we doing this bill today 7 when we haven't even started any other part of 8 the budget? 9 SENATOR CARL KRUGER: Well, 10 through you, Madam President, I guess we could 11 say that we're sending, as my ranker on 12 Finance wanted to point out -- you said this 13 is the first budget bill. We want to send a 14 very clear and compelling message to the 15 bankers and to the bond markets and all the 16 other folks out there that want to listen that 17 we're in the process of developing a budget. 18 This is not new debt, this is debt 19 that we're obligated to pay. And under 20 authority, we will pay it. 21 SENATOR FLANAGAN: Madam 22 President, on the bill. 23 Thank you, Senator Kruger. 24 SENATOR CARL KRUGER: Thank you. 25 ACTING PRESIDENT STEWART-COUSINS:

Candyco Transcription Service, Inc. 1 Senator Flanagan, on the bill. 2 SENATOR FLANAGAN: I just want to 3 offer some general comments in relation to the 4 process that we are purportedly starting 5 today, otherwise known as the New York State 6 budget. 7 When I was asking Senator Kruger 8 questions, I want to again be very, very 9 clear. I understand, we all understand we 10 have debts, we have obligations, we need to 11 meet those, we need to pay them on time, and I 12 think we absolutely should be doing that. In 13 conjunction with that, though, I think we have 14 to take a fresh, new, hard look at every 15 single thing that we do. 16 My reading of this bill is that 17 there is $5.86 billion that needs to be paid 18 now. Now. Cold, hard cash that needs to go 19 out the door. That was our credit card. 20 That's our minimum payment. That's what we 21 need to do. 22 We also have a $250 million dry 23 appropriation from the Debt Reduction Reserve 24 Fund that may be available to help defease 25 bonds. I think that's a good thing. And that

Candyco Transcription Service, Inc. 1 could be very helpful. But I also believe 2 that we're providing a tremendous amount of 3 latitude and authority to the tune of almost 4 another $3.4 billion, for which I don't feel 5 there's enough justification. 6 Now, I know people are going to say 7 that's what the past practices are, we can't 8 run the risk of doing this or sending the 9 wrong signal to the markets. I think we can 10 actually do both. What we should be doing 11 right now is cleaning this bill out a little 12 bit or whittling it out down to say tell us 13 exactly what you need. Whatever it is you 14 have to pay, we'll come up with the money and 15 we'll pay it. And frankly, ladies and 16 gentlemen, it's less than what this bill is 17 calling for and asking for. 18 And if we get in a situation where 19 the Executive or the Division of the Budget 20 has to come back and say, You know what, there 21 have been some changes, rates have gone up, we 22 have to do things a little differently, we 23 want to do some swaps that may affect our debt 24 service -- that's okay. That's okay. But I 25 think we're missing the boat here by doing

Candyco Transcription Service, Inc. 1 this in the way that we've done it in the 2 past. 3 Did I support the debt service bill 4 last year and vote against the budget? Yes, I 5 did. I know we need to pay our obligations. 6 But to follow up on the comments of my 7 colleague Senator DeFrancisco, I think it's 8 also important to recognize that while we were 9 taking this perhaps baby step forward, there 10 are a litany of things that are left 11 unanswered. 12 I raised a point that I believe is 13 a hundred percent accurate, that we are 14 providing the possibility for new debt, for 15 capital programs that will come into being in 16 this prospective budget. And that there will 17 be debt service associated with that to the 18 tune of $155 million or thereabouts. 19 I'd like to know what the programs 20 are. I'd like to know what the distribution 21 is. I think we should all like to know that, 22 and we should want to know that. But part of 23 the problem is we're not doing anything else. 24 Here we are, it's now March 8th, and we have 25 not followed the law. The majority in this

Candyco Transcription Service, Inc. 1 house, the Senate Democrats, have not followed 2 the law. 3 There are well-known parameters in 4 the Budget Reform Act of 2007 that are clear, 5 concise, simple and easy to follow. What's 6 lacking is the political will to do it. Why 7 don't we have conference committees? Forget 8 the conference committees, why don't we even 9 have a schedule? Why don't we even have 10 members named to the conference committees? 11 We can't even name our members because we 12 don't even know what the committees are. 13 The public, at this juncture, they 14 may not expect to have all the nuances and all 15 the details of the budget laid out, but they 16 sure as heck think that we should be following 17 the law that we all supported and enacted a 18 couple of years ago. 19 This sends maybe a decent signal to 20 the markets, but it sure as heck sends a 21 terrible message to the taxpayers. I care 22 about what the bond market thinks, but ladies 23 and gentlemen, I care a heck of a lot more 24 about what the taxpayer and the property 25 taxpayer thinks. And if we start off like

Candyco Transcription Service, Inc. 1 this, then we're going down the same bad path 2 that we started to last year. 3 I understand that we have 4 obligations. I'm going to vote no on this 5 bill because I think we should be making 6 changes to keep DOB's feet and the Executive's 7 feet much closer to the fire. 8 Thank you. 9 ACTING PRESIDENT STEWART-COUSINS: 10 Senator Marcellino. 11 SENATOR MARCELLINO: Thank you, 12 Madam President. 13 Let me add my voice to my colleague 14 Senator Flanagan's voice. On the bill. 15 ACTING PRESIDENT STEWART-COUSINS: 16 Senator Marcellino, on the bill. 17 SENATOR MARCELLINO: Yes, we have 18 to take our first steps with the budget. And 19 this is the beginning of it. This seems to be 20 the beginning. 21 There are other things, as Senator 22 Flanagan has said -- and I won't go through it 23 all again to add to our time, but that should 24 be done by now. The law is clear. We're 25 simply not following it, but we should, in my

Candyco Transcription Service, Inc. 1 mind. 2 I look at this bill as a checkbook. 3 You put money in the checkbook to pay your 4 bills. We should be paying the bills that we 5 owe. If we owe money, we should pay it. And 6 there should be money in the book to pay for 7 the bills we owe. 8 You put more money in your 9 checkbook than you need, you're going to spend 10 that money. It's that simple. I understand 11 that we may need a cushion, that there may be 12 some adjustable rate situations that might 13 come forward and might come up later on in the 14 year. But as Senator Flanagan rightly pointed 15 out, then let them come back to the chamber if 16 need be and say look, this happened, this 17 changed, conditions were altered, we need more 18 money at this point in time, give us the 19 authorization, here are the bills, here's the 20 amount of money we need, here are the projects 21 we have to pay for, this is why they're 22 important, let us go forward. So we go 23 forward, but we do so in an informed way. 24 I'm think I'm just getting to the 25 point and I think my constituents are getting

Candyco Transcription Service, Inc. 1 to the point where we're tired of these 2 so-called dry appropriations that put money 3 out there. Yes, we've done it in the past. 4 It was wrong. It's led us in the wrong 5 position, it's put us in the wrong place right 6 now. We can't afford to do that anymore. We 7 have to change our methods. We have to change 8 our procedures. And we should. 9 I'd be willing to work with you on 10 that. Let's change the process now. Let's 11 not continue to do the same-old-same-old, and 12 ending up with the same old bad results. 13 That's more debt. We don't need more debt 14 anymore, we need less. We don't need more 15 spending, we need less. And we need a process 16 that will get us to the point where the public 17 will begin to respect this Legislature. 18 The Governor, for good or ill, with 19 all his distractions, presented us with a 20 budget and he presented it early. He gave us 21 his 21-day amendments. Do I agree with 22 everything in them? Absolutely not. Do I 23 agree with everything in the Governor's 24 budget? Absolutely not. If you put that on 25 the table, I'd vote no right today here and

Candyco Transcription Service, Inc. 1 now. 2 However, we should be going through 3 a process now to reconcile those issues. 4 Where's the Assembly's budget? Let's get that 5 out here. Let's get our budget out on the 6 table. Let's move forward together in a 7 bipartisan way. That word is used a lot, but 8 it's not acted on. We say it, but we don't do 9 it. We talk it, but there's no action. Let's 10 get some action here. 11 Again, I will not -- I didn't 12 support this bill last year, and last year's 13 budget, and I was right. Last year's budget 14 was out of whack even with this. And the way 15 we're going right now, we're going to have 16 another budget that's out of whack, because 17 we're doing it quietly, we're doing it behind 18 the scenes, and we're doing it out of 19 ignorance. We don't know, nobody here knows 20 what's in the proposed budget. Nobody. 21 The other side, our side, nobody 22 knows what's in a proposed budget -- because 23 we don't have one. And there's no process 24 that I can see moving forward that's going to 25 bring us together so we can come together with

Candyco Transcription Service, Inc. 1 a real budget to show the people of this state 2 that this is not a dysfunctional house, that 3 this is not a dysfunctional legislature, and 4 that this we deserve to be where we are. 5 I just attended a meeting of the 6 Council of State Governments over the weekend. 7 We are the laughingstock of the nation. When 8 everybody has a problem, they say: "Oh, you 9 don't want to be like New York." Or "You 10 don't want to be like California." We're 11 getting laughed at. I don't like that. I 12 don't enjoy that. It's not fun. And I know 13 you're not enjoying it either. 14 Anybody, everybody around here, we 15 all feel it. We're all getting it. But we're 16 doing the same things that are going to lead 17 us down the same path to another budget that 18 isn't balanced, to another budget that won't 19 work, to another summer where we're going to 20 be called back to fix it. This is not the 21 year you want to come back in the summertime 22 to fix a budget. We will have other things to 23 be doing at that point in time. 24 So, ladies and gentlemen, I suggest 25 this bill be pulled, this bill be pared down,

Candyco Transcription Service, Inc. 1 this bill be put, as Senator Flanagan rightly 2 said, to what we absolutely need to pay so 3 that we can meet our obligations and we can 4 send the right message to the bonding 5 institutions that this state is operating on a 6 fiscally prudent method, in a fiscally prudent 7 way. We will pay our bills. But we're not 8 going to put that slush fund out there so that 9 maybe, in case, possibly, on some unknown 10 issue, something happens and then we're out 11 there and the taxpayers are going to foot the 12 bill down the road. 13 Madam President, I'm going to be 14 voting no when this bill comes up. I would 15 prefer to vote yes. But I would prefer to 16 vote yes on a bill that is to the point and to 17 the dollar that we need, not on some mythical 18 number. 19 Thank you, Madam President. 20 ACTING PRESIDENT STEWART-COUSINS: 21 Thank you, Senator. 22 Are there any other Senators 23 wishing to be heard on the bill? 24 Hearing none, debate is closed. 25 The Secretary will please ring the bells.

Candyco Transcription Service, Inc. 1 Read the last section. 2 THE SECRETARY: Section 2. This 3 act shall take effect immediately. 4 ACTING PRESIDENT STEWART-COUSINS: 5 Call the roll. 6 (The Secretary called the roll.) 7 ACTING PRESIDENT STEWART-COUSINS: 8 Announce the results. 9 THE SECRETARY: Those recorded in 10 the negative on Calendar Number 207 are 11 Senators Alesi, DeFrancisco, Flanagan, Griffo, 12 Hannon, O. Johnson, Larkin, LaValle, Libous, 13 Marcellino, Maziarz, Nozzolio, Ranzenhofer, 14 Robach, Winner and Young. 15 Absent from voting: Senator 16 Volker. 17 Ayes, 42. Nays, 16. 18 ACTING PRESIDENT STEWART-COUSINS: 19 The bill is passed. 20 Senator Klein, that completes the 21 reading of the controversial calendar. 22 SENATOR KLEIN: Madam President, 23 on behalf of Senator Smith, I hand up the 24 following leadership notice and ask that it be 25 filed in the Journal.

Candyco Transcription Service, Inc. 1 ACTING PRESIDENT STEWART-COUSINS: 2 To be filed in the Journal. 3 Senator Klein. 4 SENATOR KLEIN: Madam President, 5 can you please recognize Senator Ruth 6 Hassell-Thompson for an announcement. 7 ACTING PRESIDENT STEWART-COUSINS: 8 Senator Hassell-Thompson. 9 SENATOR HASSELL-THOMPSON: Thank 10 you. 11 Madam President, at 6:30 there is a 12 meeting of the Majority Conference. 13 ACTING PRESIDENT STEWART-COUSINS: 14 At 6:30 there will be a meeting of the 15 Majority Conference. 16 Senator Klein. 17 SENATOR KLEIN: Madam President, 18 is there any further business at the desk? 19 ACTING PRESIDENT STEWART-COUSINS: 20 Senator Klein, the desk is clear. 21 SENATOR KLEIN: There being none, 22 Madam President, I move that we adjourn until 23 Tuesday, March 9th, at 3:00 p.m. 24 ACTING PRESIDENT STEWART-COUSINS: 25 There being no further business to come before

Candyco Transcription Service, Inc. 1 the Senate, on motion, the Senate stands 2 adjourned until Tuesday, March 9th, at 3 3:00 p.m. 4 (Whereupon, at 4:35 p.m., the 5 Senate adjourned.) 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

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