Gaveled in 3:12 PM · Albany, New York · 2013–14 session
NEW YORK STATE SENATE
THE STENOGRAPHIC RECORD
ALBANY, NEW YORK
March 11, 2013
3:12 p.m.
REGULAR SESSION
SENATOR JOSEPH GRIFFO, Acting President
FRANCIS W. PATIENCE, Secretary
P R O C E E D I N G SACTING PRESIDENT GRIFFO:The Senate will come to order.
I ask all present to please rise and join with me as we recite the Pledge of Allegiance to our Flag.
(Whereupon, the assemblage recited the Pledge of Allegiance to the Flag.)
ACTING PRESIDENT GRIFFO:Today's invocation will be offered by Rabbi Shmuel M. Butman, from Lubavitch Youth Organization in Brooklyn, New York.
Rabbi.
RABBI BUTMAN:{In Hebrew} Our heavenly Father, we ask You to bestow Your blessings upon all the members of the New York State Senate.
They should have a lot of success in all their endeavors, in all their communal endeavors and in all their personal endeavors, especially since they have just done a great deed, that they have passed a resolution proclaiming 111 Days of Education in honor of the 111th birthday of the Lubavitcher Rebbe, Rabbi Menachem M. Schneerson.
In Psalm Number 112, 112, that we start saying on the Rebbe's 111th birthday, King David speaks about the righteous men and women. And he promises them that whoever is going to follow the path of righteousness, {in Hebrew}, which means that their children are going to have a lot of success, that they will never fear any fear and they will never fear any adversities, and that they will have eternal success for all of their lives, for themselves and for their children, when they follow the path of righteousness.
You, the legislators in the New York State Senate, you are not only legislating laws that govern the State of New York but also, by extension, the United States of America. And by extension, the United States of America of America is a superpower, the whole world looks to us. And when we legislate laws that govern how people should behave, between man and man and man and God, then those laws have an effect all over the world.
I should also tell you that every Sabbath, every Shabbos in our community, in our shuls, in our synagogues, we say a special prayer for you for your success. We say the {in Hebrew}. All those who serve the public with faith, as you do, we ask Almighty God that Almighty God should grant you good health and long life and you should be able to continue to do the right thing and making this world a better place.
Many years ago, when I opened the United States Senate in Washington, I went to see the Rebbe. And the Rebbe said to me that "You should take with you a tzedakah pushke," a charity box. "And while you are offering the prayer," the Rebbe told me, "you should also give charity, you should put in a dollar. And on the dollar it says 'In God We Trust.' And everybody should see what you are doing, and they should know what money should be used for."
So that's what we are going to do, what the Rebbe said. We are going to put in a dollar in the tzedakah. And we are going to ask you, whoever wants to join us later -- I don't think you to think that this is a fundraising campaign. Because if it would be, we would ask you for much more than a dollar.
(Laughter.)
RABBI BUTMAN:This is a campaign to do more goodness and more kindness. You are welcome to join us later. Only one dollar per person. And then you are going to do another act of goodness and kindness.
God bless you all. You should be able to pass the budget successfully, with God's help, and you should have a lot of success in your personal lives and in your communal endeavors. God bless you, every single one of you.
Thank you.
ACTING PRESIDENT GRIFFO:Thank you, Rabbi.
The reading of the Journal.
THE SECRETARY:In Senate, Sunday, March 10th, the Senate met pursuant to adjournment. The Journal of Saturday, March 9th, was read and approved. On motion, Senate adjourned.
ACTING PRESIDENT GRIFFO:Without objection, the Journal stands approved as read.
Presentation of petitions.
Messages from the Assembly.
The Secretary will read.
THE SECRETARY:On page 7, Senator Seward moves to discharge, from the Committee on Insurance, Assembly Bill Number 1831 and substitute it for the identical Senate Bill Number 2756, Third Reading Calendar 53.
ACTING PRESIDENT GRIFFO:Substitution so ordered.
THE SECRETARY:On page 7, Senator Seward moves to discharge, from the Committee on Insurance, Assembly Bill Number 1832 and substitute it for the identical Senate Bill Number 2757, Third Reading Calendar 54.
ACTING PRESIDENT GRIFFO:Substitution so ordered.
THE SECRETARY:And on page 12, Senator Nozzolio moves to discharge, from the Committee on Codes, Assembly Bill Number 196 and substitute it for the identical Senate Bill Number 3034, Third Reading Calendar 131.
ACTING PRESIDENT GRIFFO:Substitution so ordered.
Messages from the Governor.
Reports of standing committees.
Reports of select committees.
Communications and reports from state officers.
Motions and resolutions.
Senator Fuschillo.
SENATOR FUSCHILLO:Mr. President, on behalf of Senator Hannon, on page number 7 I offer the following amendments to Calendar Number 58, Senate Print Number 2069, and ask that said bill retain its place on Third Reading Calendar.
ACTING PRESIDENT GRIFFO:The amendments are received, and the bill will retain its place on third reading.
Senator Fuschillo, one second please.
May I have some order in the house, please.
Senator Fuschillo.
SENATOR FUSCHILLO:On behalf of Senator LaValle, on page number 14 I offer the following amendments to Calendar Number 166, Senate Print Number 2920, and ask that said bill retain its place on the order of Third Reading Calendar.
ACTING PRESIDENT GRIFFO:The amendments are received, and the bill shall retain its place on third reading.
SENATOR FUSCHILLO:On behalf of Senator Marcellino, on page number 13 I offer the following amendments to Calendar Number 156, Senate Print Number 3046, and ask that said bill retain its place on Third Reading Calendar.
ACTING PRESIDENT GRIFFO:The amendments are received, and the bill shall retain its place on third reading.
Senator Fuschillo.
SENATOR FUSCHILLO:May we please have the reading of the noncontroversial calendar.
ACTING PRESIDENT GRIFFO:The Secretary will read.
THE SECRETARY:Calendar Number 53, substituted earlier by Member of the Assembly Morelle, Assembly Print 1831, an act to amend the Insurance Law.
ACTING PRESIDENT GRIFFO:Read the last section.
THE SECRETARY:Section 2. This act shall take effect on the same date and in the same manner as Chapter 495 of the Laws of 2012.
ACTING PRESIDENT GRIFFO:Call the roll.
(The Secretary called the roll.)
THE SECRETARY:Ayes, 55.
ACTING PRESIDENT GRIFFO:The bill is passed.
THE SECRETARY:Calendar Number 54, substituted earlier by Member of the Assembly Morelle, Assembly Print 1832, an act to amend the Insurance Law.
ACTING PRESIDENT GRIFFO:Read the last section.
THE SECRETARY:Section 2. This act shall take effect on the same date and in the same manner as Chapter 496 of the Laws of 2012.
ACTING PRESIDENT GRIFFO:Call the roll.
(The Secretary called the roll.)
THE SECRETARY:Ayes, 55.
ACTING PRESIDENT GRIFFO:The bill is passed.
THE SECRETARY:Calendar Number 65, by Senator Ranzenhofer, Senate Print 1434, an act to amend the Vehicle and Traffic Law.
ACTING PRESIDENT GRIFFO:Read the last section.
THE SECRETARY:Section 2. This act shall take effect on the first of November.
ACTING PRESIDENT GRIFFO:Call the roll.
(The Secretary called the roll.)
THE SECRETARY:In relation to Calendar Number 65: Ayes, 53. Nays, 2. Senators Montgomery and Perkins recorded in the negative.
ACTING PRESIDENT GRIFFO:The bill is passed.
THE SECRETARY:Calendar Number 66, by Senator Marcellino, Senate Print 1480, an act to amend the Vehicle and Traffic Law.
ACTING PRESIDENT GRIFFO:Read the last section.
THE SECRETARY:Section 4. This act shall take effect on the first of November.
ACTING PRESIDENT GRIFFO:Call the roll.
(The Secretary called the roll.)
THE SECRETARY:Ayes, 55.
ACTING PRESIDENT GRIFFO:The bill is passed.
THE SECRETARY:Calendar Number 109, by Senator Zeldin, Senate Print 3414, an act to amend the General Business Law.
ACTING PRESIDENT GRIFFO:Read the last section.
THE SECRETARY:Section 2. This act shall take effect immediately.
ACTING PRESIDENT GRIFFO:Call the roll.
(The Secretary called the roll.)
THE SECRETARY:Ayes, 55.
ACTING PRESIDENT GRIFFO:The bill is passed.
THE SECRETARY:Calendar Number 131, substituted earlier by Member of the Assembly Weinstein, Assembly Print Number 196, an act to amend the Criminal Procedure Law.
ACTING PRESIDENT GRIFFO:Read the last section.
THE SECRETARY:Section 2. This act shall take effect immediately.
ACTING PRESIDENT GRIFFO:Call the roll.
(The Secretary called the roll.)
THE SECRETARY:Ayes, 55.
ACTING PRESIDENT GRIFFO:The bill is passed.
THE SECRETARY:Calendar Number 138, by Senator Griffo, Senate Print 1965, an act to amend the Highway Law.
ACTING PRESIDENT GRIFFO:Read the last section.
THE SECRETARY:Section 4. This act shall take effect on the 120th day.
ACTING PRESIDENT GRIFFO:Call the roll.
(The Secretary called the roll.)
THE SECRETARY:Ayes, 55.
ACTING PRESIDENT GRIFFO:The bill is passed.
THE SECRETARY:Calendar Number 140, by Senator Savino, Senate Print 2963, an act directing.
ACTING PRESIDENT GRIFFO:Read the last section.
THE SECRETARY:Section 2. This act shall take effect on the 90th day.
ACTING PRESIDENT GRIFFO:Call the roll.
(The Secretary called the roll.)
THE SECRETARY:Ayes, 55.
ACTING PRESIDENT GRIFFO:The bill is passed.
Senator Fuschillo, that completes the noncontroversial reading of the calendar.
SENATOR FUSCHILLO:Thank you, Mr. President.
I believe there's a privileged resolution at the desk by Senators Skelos and Klein. I ask that the title be read and move for its immediate adoption.
ACTING PRESIDENT GRIFFO:The resolution is accepted, in accordance with rules and regulations of the house, and the Secretary will read.
THE SECRETARY:Resolution Number 818, by Senators Skelos and Klein, adopting proposed amendments to the 2013-2014 Executive Budget submission (Legislative Bills Senate 2600C, 2603C, 2604C, 2605C, 2606C, 2607C, 2608C and Senate 2609C).
ACTING PRESIDENT GRIFFO:Again, some order in the house.
The resolution is before the house.
Senator DeFrancisco.
SENATOR DeFRANCISCO: Thank you very much.
This is the resolution setting forth the Senate's version of the one-house budget that will be negotiated along with the Assembly and the Governor's office. I know there will be some questions, and so I just want to briefly outline what it does.
What's most important to many people, at least that I've heard during the budget hearings, is state aid to education. And what bothers a lot of people throughout the state is the Gap Elimination Adjustment that has cost or resulted in a lot less dollars to many, many districts throughout the state.
Well, we thought that some of the Governor's money that was programmed for other purposes should be used to eliminate or reduce the Gap Elimination Adjustment to drive more to districts. That, by far, has been their priority.
And the monies that the Governor had proposed were $321 million for Gap Elimination Adjustments, and we increase that amount to $620 million, which will have a great effect on all of our districts. In addition, the budget language that we're hoping for is to completely eliminate it in a matter of three years, and that's a goal that we think is attainable.
The Governor had proposed $154 million for High Tax Aid. We increased that to $221 million.
So we think those are the priorities for education money, and that's why we redirected funds and found other funds by other cuts to provide more money in that direction.
From a procedural matter, I think that we have done other things that are going to be making it easier to have our third on-time budget, a responsible budget that's not going to increase taxes and also not cause more difficulties by increasing taxes.
Now, incorporated in this bill as far as economic development, you've got to cut to make the state in a better shape, but you're not going to solve the entire problem by cutting. And the jobs program that we came up with last week is an integral component of this. I will not go through the details. If anyone has any questions, they can provide them, give them to me, and I'll be more than happy to answer as best I can.
The Senate also is proposing to eliminate the 18A assessment to reduce energy costs for businesses and individuals. That helps farmers, that helps every business. That also individuals. We all have had our calls from our various constituents looking over their energy bill and asking, "What in God's name is this additional charge?"
Well, that additional charge was supposed to expire this year. According to the Governor's budget, he's requesting that it be renewed. We think that would be a very, very bad idea to do that.
We're also attempting to make the state more business-friendly by reducing the corporate franchise tax for manufacturers and eliminating it altogether over the next four years.
To help the middle class, we want to be in a position to increase the dependents exemption from $1,000 to $2,020 and provide a supplemental tax credit of an additional $500 per family and restore the STAR tax rebates.
Once again, you can't just cut forever and expect a result. You have to grow the economy, and that's an integral part of this budget.
To help local governments, we're proposing to accelerate the takeover of the local growth of Medicaid, 1 percent cap in 2013 and a zero percent cap in 2014, saving counties millions of dollars.
We provide $20 million more for enhanced aid and incentives for municipalities programs, to assist local governments. I was just in the hall with one of the mayors of the major cities who would love to see more assistance, because their troubles are extremely difficult to deal with.
In order to provide what hasn't been provided over the last seven years, we increased the CHIPS funding, which is extremely important to all districts throughout the state as far as facilitating road and bridge construction, but most importantly roads. And that's an additional hundred million dollars. And to provide another $16 million for upstate transit systems.
The Senate also knows the importance of higher education. We're increasing base aid to students attending community college by $150 per student if this becomes part of the ultimate budget.
And we unpotted -- this has nothing to do with the medical marijuana. There's a lot of pots in the Governor's budget lumping together a lot of nonprofit agencies on a broad spectrum of things, and reducing the overall cost so the groups would have to compete for the few dollars. Well, by the time they competed and by the time they get paid, they're in another year.
And secondly, it reduces -- all these pots substantially reduce legislative oversight. And I think that was important to do the unpotting.
The one big issue -- and many of us sat through many of these budget hearings -- was the 6 percent cut to individuals with developmental disabilities. We would like to restore, it's in our budget, $120 million to the Office for People With Developmental Disabilities to ensure that our most vulnerable of all citizens are protected.
And there's a few more things here. Casino gambling is not in it, and I'll wait for questions. That isn't ready. We don't know where the casinos are going or if the Senate even wants to go that direction, or the Assembly. So I think rather than hold up the budget, so we can get an early budget this year we proposed decoupling that from our one-house.
And with that said, I'll open it up for questions and try my darndest to give you intelligent and accurate answers.
ACTING PRESIDENT GRIFFO:Senator Krueger.
SENATOR KRUEGER:Thank you, Mr. President.
Well, I appreciate the sponsor's explanations of the bill. And I would agree, there's something for everyone in this bill. In fact, there's lots of things in this one-house resolution that many of my colleagues no doubt will speak on because they agree.
But my questions for the sponsor involve the dollars and cents and how it adds up or it doesn't add up. So if the sponsor would please yield to some questions.
ACTING PRESIDENT GRIFFO:Senator DeFrancisco, do you yield?
SENATOR DeFRANCISCO: Yes.
ACTING PRESIDENT GRIFFO:Senator DeFrancisco yields.
Again, I'm going to ask, there are a lot of people in the chamber today. If you can take the business that you're discussing in-chamber out of the chamber so the members can engage in debate and dialogue.
Senator Krueger, you may continue.
SENATOR KRUEGER:Thank you.
Through you, Mr. President, if the sponsor can tell me what's the dollars that have been added through this resolution above and beyond the Governor's budget, the new adds.
SENATOR DeFRANCISCO: The question is how do we pay for the new adds?
SENATOR KRUEGER:No. How much money is in this resolution for line items that didn't exist in the Governor's proposed budget? So things that you added.
SENATOR DeFRANCISCO: Well, we pay for everything by either reprogramming the Governor's monies or project additional revenues from other sources. So it's difficult to say exactly. When you talk about adds, it's not all necessarily adds that weren't funded by something that we're cutting. So it's not that we're just coming up with more programs and not paying for it.
SENATOR KRUEGER:Maybe I'll ask the sponsor again, through you, Mr. President. I'm going to ask him what are the total new appropriations and what are the decreased appropriations from the Governor's budget. And from those two numbers, we can help get to an answer to the bigger question.
So how much in new appropriations is in this resolution compared to the lines that were in the Governor's budget?
ACTING PRESIDENT GRIFFO:Senator DeFrancisco.
SENATOR DeFRANCISCO: That's $930 million. And there are cuts in the amount of $828 million. And the difference is really funded by programs that we believe can substantiate the balance of the funding.
And Senator Hannon mentioned to me, which was -- I really didn't realize it's an excellent point. That's why there may be intelligent answers, because others are telling me what to say or suggesting a point.
This isn't really that much. In the 30-day amendments, the Governor reprogrammed or moved around over a billion dollars in 30 days of his own proposal. So this is not an extraordinary amount of money in view of the overall amount of the budget.
SENATOR KRUEGER:And through you, Mr. President, if the sponsor would continue to yield.
SENATOR DeFRANCISCO: Yes.
ACTING PRESIDENT GRIFFO:The sponsor yields.
SENATOR KRUEGER:And then he mentioned additional revenue or less revenue. Can you tell me how much in new revenue there is in this budget resolution? And then the follow-up question is how much from the Governor's budget is being taken off as revenue.
SENATOR DeFRANCISCO: We are anticipating a deal with some of the tribes, the Indian tribes, for their compact with the state. We're projecting $450 million right there alone.
By the way, some of these projections, they total about four times of what we really need. So if we're off on some of them, we can stand corrected. We got plenty either way.
Medicaid reestimates, we propose -- and this is huge. And hopefully everybody will agree with me. In New York State we see all of these the last few years: 2 percent across the board cut, 6 percent across the board cut. To me, that is not the way to go, because good programs get cut along with programs that maybe are spending too much. And that's not a way to run anything, let alone government, where people have the needs that they have in New York State.
We would like to eliminate, either through waste reduction, by cutting parts of programs, or cutting into the optional services provided by Medicaid to the tune of about $200 million. And what do I mean by that? We provide -- out of the 33 optional services that the federal government doesn't require us but will allow us to give, to provide, we provide 31 of them. Now it's pretty obvious why we spend more in Medicaid then the next two states combined.
We want more education aid? The line for Medicaid has gone well past the education line, and it's over $60 billion a year. So it's got to come under control some way. I'll give you one example and then I'll stop, because there's a lot of them.
When a group of individuals with severe handicaps in wheelchairs came in to see me -- actually, it was two years ago because I've been on this horse for a long time, this soapbox a long time. I said, "If you don't like the 2 percent cuts, give me some ideas."
A person in a wheelchair said to me: "Well, look, I have a car that's retrofitted to allow my wheelchair to be put in it. I have an aide, and that aide charges a few dollars an hour to the state. But despite that, I have to get to my normal regular medical and dental appointments by some transportation vehicle from a service that costs three times as much as it would otherwise."
Now, that's from people that we've really got to help, some of the most vulnerable people. I'm sure there's a ton of those in the developmentally disabled area as well.
So my point is I don't mean cut out transportation because it's an optional service. I believe that the way to go is to really plan on this in this budget and make sure we get it done by making these changes that are attainable. That's two examples.
ACTING PRESIDENT GRIFFO:Senator Krueger.
SENATOR KRUEGER:Through you, Mr. President, if the sponsor would continue to yield.
SENATOR DeFRANCISCO: Yes.
ACTING PRESIDENT GRIFFO:The sponsor yields.
SENATOR KRUEGER:Although one of the questions I was going to ask him was about the cut to optional services in Medicaid, and he in fact jumped in there with his example.
So I'm going to go on to other things, but just to highlight that $208 million cut, he used the one example of transportation. But of course if we were to cut those optional services, it would also mean we were cutting out dental services, occupational and physical therapy, hospice care, clinical services, prosthetic and orthotic devices, hearing aids, and a long list of about 31 different items. So we might agree or disagree about the severity of the impact on people if we were to cut that program in Medicaid.
But I wanted to ask a sponsor about a few items that they did put in their one-house resolution. One of the answers to my question before was that there was $600 million, of which $450 million is being booked for unpaid taxes from tribal nations. And my understanding is that we've all known about this for years and years and years; we never really could get that money. So do we think we can get that money this year?
ACTING PRESIDENT GRIFFO:Senator DeFrancisco.
SENATOR DeFRANCISCO: They're presently in binding arbitration. And we believe it's reasonable to assume that it's going to be done this year.
If it isn't, as I mentioned, the list I have is extensive and it's four times what we would really need to actually have happen in order to fill the balance of the gap of the budget for some of the things we're adding.
In addition, I'm glad I jumped in on optional services. Because that comment about cutting occupational services, cutting everything imaginable, people are going to be cut and let alone without services, that's exactly why it never happens. Because the scare tactics that are used that would say that optional services are sacrosanct and there's no savings we can make about it by making it a more efficient system, I think is exactly why it doesn't happen.
And I hope, Senator Krueger, after we've gotten to be such good buddies sitting through six weeks of budget hearings next to each other, and during that lovefest, hopefully you'll look at some of these areas and reasonably cut back on the $4.1 billion in optional services.
Thank you.
SENATOR KRUEGER:Thank you.
Through you, Mr. President, if the sponsor would continue to yield.
SENATOR DeFRANCISCO: Yes.
ACTING PRESIDENT GRIFFO:The sponsor yields.
SENATOR KRUEGER:So when you added up the amount that you are increasing the debt in the budget by adding costs, you came to about $930 million. But do you also not have a $1.3 billion STAR rebate program?
SENATOR DeFRANCISCO: Yes. But by the way, we didn't increase the debt. Because according to our budget, there will be a $1.9 billion, with a B, reduction in All Funds spending and a 1.5 percent decrease in spending for state funds for the state-only funds. So it doesn't increase spending.
SENATOR KRUEGER:Through you, Mr. President, if the sponsor would continue to yield.
SENATOR DeFRANCISCO: Yes.
ACTING PRESIDENT GRIFFO:The sponsor yields.
SENATOR KRUEGER:Well, excuse me, the sponsor very kindly continued to yield, but I'm going to just ask one more question and then speak a little bit, because my time is up.
Can you tell me how much in new costs will be projected for the state from the brownfields Article 7 language which allows brownfields credits to be moved from $45 million to $150 million per project and allows Superfund programs into the brownfields program? What's your projected cost to the state for that?
SENATOR DeFRANCISCO: I don't know the answer to that. I'll have to consult with a member of staff.
The answer is zero. And you may ask why.
SENATOR KRUEGER:I might ask why, thank you. Through you, Mr. President.
SENATOR DeFRANCISCO: Because the eligibility standards are much tighter, which will allow less people to get these credits.
SENATOR KRUEGER:Through you, Mr. President, on the bill briefly.
ACTING PRESIDENT GRIFFO:Senator Krueger on the bill.
SENATOR KRUEGER:Actually, on the resolution.
ACTING PRESIDENT GRIFFO:On the resolution, Senator Krueger.
SENATOR KRUEGER:Thank you.
So here's one of the big dilemmas for me. There's lots of good things I like in this that we've added back. But when I do the math -- and I don't have time to go through it all here -- it really doesn't add up. And in fact, if you look at full annualized costs being proposed by my colleagues in their resolution, you're leaving us with an aggregate gap of about $3.5 billion.
And yes, it's true you can say if you take a list of items that are cut out of the state budget, it appears to give us more money. But so much of that is capital funding or dry appropriations that we can't turn into cash that, when I look at this resolution, I go, it's a wish list that will leave us in the hole aggregate going forward in years almost $3.5 billion. And I can't justify supporting a resolution that would in fact leave the taxpayers $3.5 billion further in the hole, because of course it would mean that we have to cut more important items actually in the budget.
And just as an example, I believe that the brownfields tax credit money would add up as the old brownfields tax credit. We have about half a billion on the books yet to be paid out.
And I am concerned that creating a $1.3 billion payout through STAR, another $800 million in tax cuts for families -- even though who doesn't like tax cuts for families -- a package of jobs proposals that the Senate Republicans made on Friday allowing for capping the tax -- eliminating, excuse me, corporate taxes on 200,000 businesses, a 10 percent PIT exemption, eliminating corporate tax on manufacturers -- it all sounds great, but that's another billion dollars.
It actually creates in the bill a section that would require a supermajority to approve any new taxes. So that means we would require 42 of 63 Senators to vote for any new tax ever, heading into future, which almost ties our hands to ever, ever create new revenue, even though this proposal would actually leave us probably $3.5 billion in the hole in the outyears.
It also has a number of Article 7 sections that I believe my colleagues will speak about that can do great harm to important policy efforts that we have moved forward with in the years.
So I'm shocked at how little time there is to discuss this today. And of course we don't have bills in front of us, we just have one resolution, which is an outline. So a lot of the details are actually in the bills that we are not voting on and not discussing today.
Thank you, Mr. President.
ACTING PRESIDENT GRIFFO:Thank you, Senator Krueger.
Senator Rivera.
SENATOR RIVERA:Thank you, Mr. President. On the resolution.
ACTING PRESIDENT GRIFFO:Senator Rivera on the resolution.
SENATOR RIVERA:So I will -- as has been mentioned before, our time will be brief here, so I will get right to the point on a few things that I'd like to bring attention to that are in the health section of this resolution and what the resolution refers to as far as one of the bills that we will eventually see.
First of all, although I do not call them pots, I've been calling them buckets, I do agree wholeheartedly with my colleague and with my Senate colleagues that what the Department of Health or the Governor proposed in taking all of these programs, putting them into all these different pots or buckets makes it much more difficult for many of the programs to even exist.
They will be competing against each other in times when it doesn't really make sense for them to compete against each other. It makes it more difficult for these programs to operate.
I wholeheartedly agree that this is something that we should resist. And I'm very happy to see that this is what happened in this resolution. Hopefully it's what happens in the final budget and we don't have that problem with public health programs.
So I will laud them for that. But there are a few other things that I want to point out which unfortunately are not in there.
Number one, even though they have also rejected, our colleagues in the Senate here have rejected the $40 million cut to these public health programs, they have ignored a proposal that I put forward that would potentially create between $35 million and $40 million of revenue specifically as it relates to taxing tobacco products at a higher rate, certainly smokeless tobacco and other products like cigars.
In this case, this resolution actually has language to cap the tax on cigars at 50 cents when these things are much more expensive, sometimes.
But that is one way that we could generate the revenue that this $40 million cut would hit the public health programs with. So I am dismayed that it was not included in this resolution. I would suggest that we include it in the final version of the budget, $35 million to $40 million of revenue that would go directly to these kinds of programs.
One part that I am only going to mention briefly because I know that my colleagues in Brooklyn, Senator Parker and others, will definitely speak about it, is a pilot program. The pilot program that was suggested here, that the Governor suggested to inject private money into different hospitals across the state specifically as it relates to SUNY Downstate, but other.
The original proposal was two pilot programs. This is something that is incredibly concerning to many of us because it would allow money to come into public health institutions. Unfortunately, the proposal from my Republican colleagues actually expands it immensely. It goes from two pilot programs to ten pilot programs. This is a very serious issue.
We believe that allowing this -- it would allow a slot of private money to come into public healthcare institutions in the state. It was incredibly concerning to us when it was two pilot programs, and now that it is 10, it is even more concerning to us. I would encourage my colleagues to reconsider this.
And I certainly would -- I'm very concerned about what this would do in the long term to the tradition of nonprofit healthcare in the State of New York.
And just one more thing that I'd want to point out is currently Executive Budget includes a proposal to eliminate the Family Health program, and the Senate Republicans agree with this proposal. What it would do is it would create a part of the coverage for people that are poor in the State of New York. We think that about 77,000 people are potentially going to be left out in the cold when you're transitioning from the elimination of Family Health Plus and the spinning up, if you will, of the Affordable Care Act money.
There is a serious consideration about the folks that are between 139 percent of poverty and 149 percent of poverty. There is a discussion, a serious discussion to be had here because, again, it is potentially leaving 77,000 people out in the cold. Or it would at least open them up to going into the healthcare exchange and paying $600 and some odd dollars for healthcare coverage. This is a problem because these folks are likely going not to be able to afford it since they are about $12,000 a year in income.
So last but not least I'll say that there are many things in this budget resolution which I think we should laud. Certainly the fact that you have the elimination of the proposal by the Governor to take the public healthcare dollars and split them up into all these different buckets or pots I think is a good thing.
But the inclusion of the pilot program and the elimination of Family Health Plus and not dealing with the 77,000 folks that might be left out in the cold is a big problem.
So I know that my colleagues will be speaking on other parts of it. But for those reasons and many others that my colleagues will outline, I will be voting in the negative on this resolution.
Thank you, Mr. President.
ACTING PRESIDENT GRIFFO:Senator Diaz.
SENATOR DIAZ:Thank you, Mr. President.
Mr. President, as you know, I'm always happy to see you there. And you should know that we have senior citizens over there listening to us. And you should also know, Mr. President, that all my life I have been working on behalf of senior citizens.
Right now I am the ranking member in the Senate Aging Committee. And when I was a City Council member in New York City in 2001, I became the chairman of the Aging Committee. Over there we had a struggle to protect and defend and keep senior citizen programs and services. Then when I came to the Senate, when we became the majority, I became also the chairman of the committee.
And we have been fighting. And every single year, Mr. Chairman, you should know, ladies and gentlemen, that every single year I had to fight because seniors have been cut. Every single year. My struggle, my fight. And my questions are, why are you hitting senior citizens after they have given us their life, their sweat? We should be protecting them.
Let me tell you and you should know, Mr. President, that in the Bronx I created Casa Boricua Senior Center, I created Betances Senior Center, I created the South Bronx Senior Transportation Network, I created Millbrook Senior Center. So I have been working with senior citizens.
And every year, as I said before, ladies and gentlemen, I have to stand here and stand in the City of New York and everywhere fighting and asking why seniors have been cut.
But this year, Mr. President, this year I praise the Lord. I thank my savior, Jesus Christ. Because this year you should know, ladies and gentlemen, is the first time that seniors have not been touched. And for the first time the Majority, Senator Skelos and the Majority are asking to increase the budget by $2.7 million.
So I'm here not to criticize this time, I'm here to praise. And I'm here to express my appreciation to the Senate Majority for taking care of the senior citizens and increasing -- not too much, not too much, only $2.7 million. But at least you are not cutting and the Governor is not cutting. The Governor wants something, the Senate Majority wants to increase it, and I applaud and I am here to support, to thank the Senate Majority for increasing, for taking care of senior citizens.
And, ladies and gentlemen, my fellow Senators, praise the Lord. Thank you very much. And I am Senator Ruben Diaz, and this is what you should know.
(Laughter.)
ACTING PRESIDENT GRIFFO:Thank you, Senator Diaz.
Senator Fuschillo.
SENATOR FUSCHILLO:Mr. President, with unanimous consent, I'd like to recognize Senator Flanagan for the purposes of an introduction.
ACTING PRESIDENT GRIFFO:Without objection, Senator Flanagan.
SENATOR FLANAGAN:Thank you, Mr. President.
I have the pleasure -- and I really appreciate the indulgence of my colleagues. And yes, my last name is Flanagan and yes, to some extent I think this is the holy day of obligation or something like that, because the Ancient Order of Hibernians are having their function tonight here, right in Albany, and we are joined today by this evening's honoree. He had an opportunity to be over in the Assembly earlier today, and that is Al Smith, Al Smith IV, who is joined by his lovely wife Nan, and they are visiting here today. He is being honored tonight.
But I just want to give you a quick snapshot of his background. He's done a lot of different things in terms of employment. But I think you would remember two things in particular. He's done an extraordinary amount of work in raising money for the prevention and treatment of cancer, and he put together this group called I think it's Hacksters for Hope that's been going around for a number of years, and they've raised over $12 million for that research and treatment. So he's done a lot of terrific philanthropic work.
For anyone who has had an opportunity to go to the Al Smith dinner, I have to tell you -- this year was my first opportunity, and it was fascinating. Obviously you had the President and Mr. Romney there, and they were both so good that they were almost as good as the MC, who was Mr. Smith. He was engaging, he had great stories, he had a phenomenal sense of humor.
And I just would ask the indulgence of this body to recognize him and congratulate him for being the honoree for tonight's festivities. Mr. Smith, nice to see you here.
ACTING PRESIDENT GRIFFO:Thank you, Senator Flanagan.
(Extended applause.)
ACTING PRESIDENT GRIFFO:Thank you, Mr. Smith. It's always a pleasure and honor to have you. We extend the courtesies of the house to have the great descendant of the late, great Governor Al Smith. Thank you so much.
Senator Tkaczyk.
SENATOR TKACZYK:Mr. President, I'll be speaking on the resolution.
ACTING PRESIDENT GRIFFO:Senator Tkaczyk on the resolution.
SENATOR TKACZYK:As the ranking member of the Mental Health and Developmental Disabilities Committee, I'd like to make a couple of comments on the budget that's before us.
Under the Office for People With Developmental Disabilities, the Senate's budget proposal fully restores the $120 million cut from the 6 percent across-the-board reduction proposed in the Governor's 30-day budget amendment. These are funds that are going to non-state-operated residential and non-residential developmental disability providers.
I fully support that restoration. However, I hope that the $120 million restoration does not result in a cost shift that will lead to reductions in other areas of the mental hygiene budget.
Under the mental health portion of the budget, I want to speak briefly about the Community Mental Health Reinvestment Act. The entire mental hygiene system is moving towards an integrated system of care that is community-based and will be coordinating management care along with the provision of health and mental hygiene services.
One of the ways we fund local community-based mental health services is by the savings incurred when we close and downsize state psychiatric facilities. This is the sole purpose of New York's landmark Community Mental Health Reinvestment Act, which celebrates its 20th anniversary this year.
The anticipated savings from closing and downsizing the state psychiatric centers in this year's proposed budget is $25 million. The Governor and Assembly proposed taking $5 million of that amount and putting that into reinvestment in the community. The budget proposal before us sweeps even that small fund into General Fund purposes.
The money comes from a real closure, the Mohawk Valley Psychiatric Center in Utica. Closing this facility results in real needs for the community.
Simply put, community-based organizations are being asked to provide more services to more people with increasing challenging needs in a system that is not keeping up with the commitment to the providers who are expected to meet those needs. We've been asking them to do more with less; now we're asking them to do more with nothing. I sincerely hope the final budget includes restoration of that funding.
I'd like to speak also a little bit on education. I am very pleased that the Senate budget resolution includes many of the funding increases I've been fighting for, including an overall increase in general support for public schools and additional funding to restore the Gap Elimination Adjustment.
However, since we don't have adequate information regarding the amount of aid that each district will be receiving, I certainly hope that we will not continue past practices of shortchanging districts that need it most, particularly lower-income rural and small-city school districts in counties like Montgomery, Greene and other upstate areas. Upstate rural school districts and those in our small cities have been denied their fair share of education aid for too long and cannot afford to increase property taxes to compensate.
The goal to eliminate the Gap Elimination Adjustment for all of our schools in three years is laudable, and one I fully support.
I don't like everything in this budget, but I like most of it. I'll be voting aye. Thank you.
ACTING PRESIDENT GRIFFO:Senator Espaillat.
SENATOR ESPAILLAT:Thank you, Mr. President.
I rise to speak to the portion of the budget that addresses housing in the State of New York.
ACTING PRESIDENT GRIFFO:Senator Espaillat on the resolution.
SENATOR ESPAILLAT:Yes, Mr. President.
As you may remember, a couple of years ago we extended the rent stabilization laws for the State of New York. During that very long and often contentious debate, we spoke very clearly about the needs of tenants throughout the State of New York. And while we extended the law and in so doing provided protection for millions of tenants across the State of New York, and whereas we also slightly strengthened tenant protection during that debate, it was also very prominent during that debate the call for a Tenant Protection Unit within the agency, the state's agency that governs housing; that is, HCR.
And the Governor was also an outspoken member of this government, the state government, in calling for the establishment of a Tenant Protection Unit that would protect the rights of rent-regulated tenants and provide information to both owners and tenants. It would also help increase compliance and enforce rent regulation. It would also look to detect landlords that did not comply with the law or were fraudulent in their practices.
This is very important, Mr. President, for thousands of families across the State of New York that rent their apartments, that find often that they are victims of landlords that are sometimes unscrupulous.
And I am very distressed to see that in this budget the $5.8 million -- which is a drop in the bucket. When you consider that we may have a $137 billion budget, that we don't have the $5.8 million that both the Governor called for and the Assembly called for in their resolution is highly distressing.
And so, you know, we are concerned that this unit, which proposes not only to provide legal services to tenants that find themselves in court perhaps facing an eviction, sometimes an illegal eviction from their landlords -- not only does this unit proposes to that, but it also proposes to create a database so when you rent an apartment, those young families that start out, maybe a police officer and a teacher that rent their first apartment before they start their family, they will be able to know the full rent history of that apartment, perhaps even if the apartment has any violations, if the building has any violations, any issues.
So this cannot happen unless we have some funding behind this unit. And the resolution presented by the Majority today does not include this funding. This is not a back-breaking effort. And we ask that that funding be included.
For that reason, Mr. President, I will be compelled to vote against this resolution.
ACTING PRESIDENT GRIFFO:Senator Gipson.
SENATOR GIPSON:On the bill.
ACTING PRESIDENT GRIFFO:Senator Gipson on the bill.
SENATOR GIPSON:Thank you, Mr. President.
As the constituents of my district in the great Hudson River Valley know, I spent the last two years campaigning on a platform of creating new jobs in the Hudson Valley and making sure that we keep the ones that we have and trying to reduce the cost of living and also putting a lot of focus on improving our education system.
And I'm very happy to say that this resolution today goes a long way in achieving those goals, and that the work that we have been doing here towards those goals has really begun to pay off. And I'm hopeful that we can make much more progress on these issues.
This particular bill proposes that we keep the Beacon women's facility open, which is in the southern part of my district, which currently employs over 120 people in the local community and provides urgently needed services to a group of women that are looking for a second changes in their life. And I am happy to see that we are going to hang onto those jobs.
I am encouraging that the Governor stand by this proposal and work with us to make sure that we help keep the economy in Beacon thriving by keeping these local jobs there and continuing to provide the services that these women depend upon.
Also in my district there is a juvenile facility in the Town of Red Hook that provides, again, urgently needed services to a group of people that would have no other place to go, including some there who rely on services that are geared towards the LGBT community.
Again, this resolution restores the funding to that facility, keeps it open, keeps the jobs local. And again, I would encourage the Governor to sign onto this and work with us in growing the economy locally in the Hudson River Valley.
My district also has an enormous amount of schools that fall into the category of 853, which provide very important services to those with developmental disabilities. We have increased the aid to these schools in this proposal.
This is critically important, in that these people that go to these facilities would have no other place to go, they would have no other place to turn for that funding. And I am encouraged to see that we are working in a bipartisan manner to make sure that these schools have the funding they need to provide these valuable services.
With the increased aid to the 853 schools in my district, we will be saving approximately 750 jobs in the Hudson River Valley. That is obviously very important to growing our economy. And again, I urge the Governor to sign onto this resolution in respect to that particular issue.
My district in the Hudson River Valley also has an enormous amount of agriculture. And one of the great things that I've seen in this particular resolution is that there is a proposal to remove the 18-a utility assessment charge. The farms across New York State, including those in my district, are some of the biggest users of utilities in this state. They will benefit greatly by removing this tax, which is making it more expensive for them to do the farming that they need and making it more expensive for them to hire local.
So I am reaching way across the aisle -- I want it to be noted that I am reaching way across the aisle in working with my Republican counterparts and hopefully asking that the Governor remove this unnecessary tax in the state budget.
And I am also very encouraged that we are making steps towards offering some mandate relief to our local governments in this resolution. As a person who comes from local government, I can attest to the fact that mandate relief is something that our local governments desperately, desperately need.
I would consider this to be very much on the light side of mandate relief, but at least we are offering up $20 million that the Governor did not have in his budget. That is a step in the right direction. We are going to need to do to a lot better than that moving forward, and I would encourage us all to find a way to do that in the future.
I just want to touch briefly on school aid. We are increasing, in this resolution, school aid, and we are adding in greatly needed aid to all of our local schools. But I would say to point out this, that the way that we're funding schools right now is a bit of a shell game. And even though I'm happy to see that we are greatly increasing school aid in this budget, the way in which we're doing it, the formulas which we are doing it by are somehow confusing, somewhat outdated, in great need of revision.
And I just want to point out that I am the sponsor of something called the Equity in Education Act that would totally change and reform the way that we fund education so that we can make sure that all of our schools are getting the funding that they need in this urgent time to make sure that we are competing globally and that the schools in the poor part of our districts are getting the same type of funding as the schools in the wealthy part of our districts. And that bill would do that, and it would take it even further than we have gone with this particular resolution.
I am going to be voting yes on this resolution, and I appreciate you giving me time to speak on it.
ACTING PRESIDENT GRIFFO:Senator Peralta.
SENATOR PERALTA:Thank you, Mr. President.
When I look at this one-house budget, I see a few good things, like a rejection of the Beacon closure and a restored funding for local workforce training. I also see some bad things, like concurrence with the Governor's unemployment insurance reforms, which would raise the qualifying threshold and have a devastating effect on low-wage workers across this state.
But mostly I see missed opportunities. This chamber had the chance to lead on the critical issues of our time and instead decided to play it safe.
Instead of fighting for an increased minimum wage indexed to inflation, which would help bring New York's working poor out of poverty and keep the issue from remaining a political football going forward, you decided to punt.
Instead of giving hope and opportunity to thousands of young New Yorkers by pushing for the DREAM Act, you stood silent.
Both of these measures are about more than just helping the disenfranchised. They are about providing for the future of our state as a whole.
Increasing the minimum wage is not a job killer, as opponents deride. In fact, the various proposals on the table can be expected to generate between 7,000 and 15,000 new jobs. Passing the DREAM Act might cost a little bit more right now, but it will pay clear and tangible dividends in the near future.
Let's not lose the opportunity to make a real investment for the future of this great state. College graduates pay an extra $3900 in annual state taxes, meaning that TAP funding for the undocumented could more than pay for itself within six years, on average.
Being a leader means taking a stand instead of the path of least resistance. These are the issues on which we must lead, and here is where we must take our stand. That's why we need a real minimum wage attached with an index and a DREAM Act that paves a path to future prosperity.
Mr. President, I have to vote nay. Thank you.
ACTING PRESIDENT GRIFFO:Senator Hassell-Thompson.
SENATOR HASSELL-THOMPSON:Thank you, Mr. President.
While I concur with most of the public protection portion of the budget resolution, I am concerned and disappointed that the transfer of Fulton Correctional Facility has been capriciously rejected. I strongly urge the Coalition to reconsider its position regarding the Executive's adaptive reuse plan to transfer the Fulton Correctional Facility to the Thomas Mott Osborne Society.
Osborne is an institute of unmatched experience in the implementation of reform and rehabilitation programs. It provides opportunities for individuals in conflict with the law through rehabilitation programs. The Fulton plan proposes to restore to the community priceless opportunities preventing and reducing the damage caused by crime and incarceration.
I also have a concern about the proposed elimination of the New York City presentence investigation and submission of written report when an individual is sentenced to a term of imprisonment up to one year or less.
The information that is contained in a presentence report has vital information not only about the offense which resulted in imprisonment, but also about the individual. Individuals who will be incarcerated up to a year will be away from their families, their doctors, their jobs and their communities. For individuals that may suffer from health conditions requiring medication or medical history requiring certain prohibitions from physical activity, mental health, substance and alcohol abuse issues, this information would not be available.
This report also functions as an important tool and resource for the facility to more effectively assess the needs of the offender who they are charged with the responsibility of housing. And it's an additional tool for the judge to use when sentencing an individual, notwithstanding a negotiated sentence.
Lastly, this portion of the public protection portion speaks to the closure of prisons. I am appreciative of the Senate's recommendation to reject the Governor's proposal to close the Beacon Correctional Facility in Dutchess -- and I want to congratulate my colleague Senator Terry Gipson for the leadership that he has provided -- but also to the Senate for recognizing that Beacon is the last remaining women's minimum-security facility in New York State and, if this prison closes, the inmates will potentially have to be moved to medium-security or maximum-security facilities over 376 miles away from Dutchess County, creating hardships for families and especially for children in their visitation to parents.
Finally, I want to echo my colleague's sentiment that even if, against our recommendation, the Executive does in fact close Beacon or Bayview, it is critical that proper notice under the current law be adhered to.
Currently, New York correction law requires the commissioner of the Department of Correctional Services to provide at least 12 months' notice of this prison closure. And in doing so, it will give an opportunity for the kind of activities that the Bronx has participated in in trying to present a program for reuse of the Fulton facility, and will give economic empowerment back to communities as well as respond to the needs of people coming out of prison to reduce recidivism.
The last comment, I'd like to just make a quick point in congratulating also the Senate for denying the Executive's proposal to appropriate $3 million for the state's operation for the Department of Economic Development for the 2016 MWBE disparity study.
As many of you know, this study was done as a preliminary to the development of legislation passed by this body and by the Assembly to ensure that there's full participation of minorities and women in this state.
This disparity study sunsets in February of 2016. In order to ensure that we can evaluate whether or not MWBEs have had a fair opportunity to participate in the state's contracting opportunities, this disparity study must in fact be done. So I thank this body for ensuring that the $3 million necessary for this study is appropriated in this resolution.
Thank you, Mr. President.
ACTING PRESIDENT GRIFFO:Senator Savino.
SENATOR SAVINO:Thank you, Mr. President.
You know, I've heard it said here several times now that this is a very good one-house budget resolution that has a lot of very good things that are in it.
This is the ninth time I've participated in this annual budget dance. And there are a lot of very good things in this one-house budget resolution, and let's kind of recap some of them, particularly for issues that are important to me and to many of the people in this room.
Senator Diaz mentioned that for the first time, senior programs are not on the chopping block. We don't have them worried about whether there's going to be funding there for them. Not only have we kept it, we've actually increased it, for the first time in the nine years I've been in the New York State Senate.
Nurse-Family Partnership, a critically important program that many of the members of the Senate fought to create a few years ago, is not only still in the budget, it's not only accepted the Governor's recommendation, we added $2 million. Because that's how much we think the Nurse-Family Partnership matters and how important it is to women and particularly women with small children.
We all stood up and said we weren't going to accept the Governor's recommendations of cutting an additional 6 percent from developmental disabilities, and we put our money where our mouth is and we put that money back in the budget and we said no to that. That's a good thing.
We've also found ways to deal with something that was a terrible injustice that was perpetuated on a group of employees a few years ago when this house could not get together enough votes to make sure that OTB continued beyond their deadline. When 800 employees lost their jobs and hundreds of retirees lost their health insurance, we said then we were going to fix it. Last year we tried, we didn't put the money in the budget, and the Governor vetoed it.
Well, this year we're putting the money in the budget. Again, living up to a commitment we made to people who gave their lives to public service so that they don't die in poverty because they can't afford to pay their medical bills. That's a good thing.
Unemployment insurance reform. I've been talking about it, it's been an issue of discussion ever since I got involved in the labor movement in this state. And I don't want to tell you how long ago that has been, because I'm getting older every year.
But every year there was discussion about UI reform: How do we drag a system that was built in the industrial manufacturing economy into the modern times, how do we stabilize the system, how do we shore up the funds, and how do we finally do something about increasing the average worker's weekly wage replacement? We're doing all of that.
And with respect to the concern about earning a certain amount of money to be eligible for the minimum, when we do something else in this budget, we're going to solve that problem. When we raise the minimum wage, we will close that gap so those low-wage workers will not be shut out.
In this budget resolution it states clearly that it is the intention of the Senate to modify the Governor's proposal and to do a minimum-wage increase just like this Legislature did in 2004. Some of you were here. I was not; I was still an activist in the labor movement. And an issue that we worked on for several years to get the minimum wage raised in New York State was finally accomplished on July 21st of 2004, when this house passed the minimum wage increase setting three increases on a date certain: July 1st of 2005, July 1st of 2006, and July 1st of 2007.
When we are done negotiating this budget, we will do the same thing. We are going to raise the minimum wage for low-wage workers in this state because it's the right thing to do.
So there's a lot of good stuff in this budget resolution. I am very proud to have participated in it. And I'm very proud to go into the next round of negotiations where the Senate fights like hell to hold onto the things that we know are important, and we are going to do that together. And we are going to have a budget that each one of us can be proud of.
Thank you, Mr. President.
ACTING PRESIDENT GRIFFO:Senator Stavisky.
SENATOR STAVISKY:On the resolution. On the higher education parts of the resolution.
ACTING PRESIDENT GRIFFO:Senator Stavisky on the resolution.
SENATOR STAVISKY:Obviously the restoration of base aid to the -- or increasing the base aid to the community colleges, both SUNY and CUNY, by $150 per full-time equivalent, is a good thing. And there are many other good parts to this budget. But there are three areas that I think need improvement.
Number one, we've got to support SUNY's request and the request of the president of Upstate Medical School for the $150 million restructuring of Downstate, the short-term aid that they require, and the Medicaid adjustment. Because if SUNY Downstate goes, so will the other SUNY medical schools and their hospitals that are associated with them.
Secondly, I think the resolution should have rejected the Article 7 language calling for the pilot project for Kings County and one other county upstate in terms of providing a for-profit mechanism, a for-profit model for the medical schools and the hospitals. This I think is a very dangerous precedent, and I think that Article 7 language should have been rejected.
And the third area is the DREAM Act. The Assembly, I believe, in their budget resolution is going to call for a $25 million allocation for the DREAM Act. These are kids who came to the United States as young people. They are undocumented, not their fault. And providing them with TAP and opportunity programs to me is the fair and the right thing to do.
The community will benefit, there will be a stimulus to the economy in terms of they're going to be buying locally. They're not going to be buying the airplanes with the reduced sales tax. Those are not the -- that's not going to be in their budget plans. They're going to be working people who are going to receive a salary, they're going to be paying taxes, they are going to be buying locally. And to me it's an economic stimulus that I think we ought to take advantage of.
So I urge the Senate during the budget conference committees to restore the DREAM Act and to provide for the hospitals and the medical schools.
Thank you, Mr. President.
ACTING PRESIDENT GRIFFO:Senator Hoylman.
SENATOR HOYLMAN:Mr. President, on the resolution.
ACTING PRESIDENT GRIFFO:Senator Hoylman on the resolution.
SENATOR HOYLMAN:Mr. President, I oppose this budget resolution because of the unfair and inequitable way it treats New York City schoolchildren.
I think most of us realize that New York City in this resolution stands to lose $240 million a year because city officials could not come to an agreement with teachers over an evaluation system. But, Mr. President, this is not the first time New York City's 1.3 million public school kids have lost out at the hands of government.
New York City's public school kids are already losing an additional $260 million a year in Race to the Top funds, and this chamber eliminated and made permanent over $300 million annually in aid and incentives for municipalities, completely zeroed out. And now, Mr. President, this $240 million cut.
And these are cuts that will keep on cutting. Remember, they're annual, impacting every borough of Manhattan, and will escalate to over a billion dollars in fewer than five years.
It's been said that we are punishing the 1.3 million schoolchildren in New York City because the adults couldn't come to an agreement. Mr. President, I could not agree more. It's the adults, not the kids, who should be put into detention for not being able to work out a solution. It's the adults, not the kids, who, barring alternatives, need to find a way to fully fund New York City's education system as mandated by the court order in the Campaign for Fiscal Equity lawsuit.
And it's the adults, Mr. President, not the children, who have the responsibility to make certain that we have a literate, educated and functioning workforce and democracy in our state. No less than Thomas Jefferson said that "An enlightened citizenry is indispensable for the proper functioning of a republic." Self-government is not possible unless the citizens are educated sufficiently to enable them to exercise oversight. Therefore, Mr. President, it is imperative that our nation see to it and our state sees to it that a suitable education is provided to all its citizens.
Mr. President, I cannot support this resolution, because not only does it shortchange New York City's 1.3 million public schoolchildren, but it also undermines the future of our state. A court has recently intervened and ordered this $240 million cut to be held in escrow. And our colleagues in the Assembly restored the funding to New York City's public school system in their budget resolution. Mr. President, I strongly believe that we should do the same.
And for these reasons, I will be voting nay on the resolution.
ACTING PRESIDENT GRIFFO:Senator Kennedy on the resolution.
SENATOR KENNEDY:Thank you, Mr. President.
I rise today to express support for major components of the proposed budget resolution; however to also bring attention to several issues I believe require more work and inclusion in the final budget.
With this budget resolution, our chamber is making a statement that we believe our state must do more to support at-risk children and young people. By reinstating funds for Operation SNUG and for the Court-Appointed Special Advocates program, otherwise known as CASA, we are poised to make a real difference in the lives of young people in communities across our state.
With homicides up by nearly 40 percent in the City of Buffalo, action is urgently needed to stop the violence. By relaunching Operation SNUG, we will help cut down on gang activity and make Buffalo and cities across the state safer. When SNUG received adequate funding previously, it helped curb gang activity in Buffalo and several other cities and towns.
CASA provides volunteer advocates for abused and neglected children in foster care and the Family Court system. Essentially the program ensures that young people gain access to the support and services they need to avoid destructive decisions. Children need the helping hand and supportive voice that the CASA program provides.
Both programs carry very minimal price tags compared to the tremendous positive impact they've already made in communities all across New York State.
The Senate has also stepped up to protect people with developmental disabilities. After a potential 6 percent cut to OPWDD was announced, we raised our voices. We raised our voices and sent a message across the state that these cuts are not acceptable. These cuts pose a major threat to our state's most vulnerable citizens.
This fight is not yet over. We must ensure that this critical funding remains a part of the final budget plan as negotiations continue.
Rebuilding and strengthening our infrastructure remains an urgent priority across the state as well. In years past, Western New York hasn't received its fair share of resources for our roads and bridges. More recently, things have started to change. It has become a priority to correct past funding shortfalls and ensure a fair allocation of funds are sent to Western New York for road and bridge reconstruction.
As the budget negotiations continue, I urge the state to boost resources for infrastructure improvements, especially in Western New York. Let's continue to take steps to fill the funding gap left behind by disparities suffered in past years.
We must also ensure the accountability and efficiency of our state's transportation agencies. State investments in our roads and transit systems need to be spent transparently, wisely and promptly.
I'm pleased to support the call for a new five-year SUNY capital plan. It's critical to protecting the academic infrastructure of our SUNY system.
The state must also ensure that economic development and job creation remain a top priority. To that end, our state must support those programs that have proven effective in building local industries and growing regional economies.
In Buffalo, we've been building burgeoning life science industries with the help of the UB Center of Excellence in Bioinformatics. The Centers of Excellence program deserves additional support, and the state must now help Buffalo and its Center of Excellence in Materials Informatics get up and running.
We in the Legislature granted the University at Buffalo a designation to create this new center, and we made an initial allocation of funding. But now they need our support to begin their work to create jobs in these cutting-edge technologies. We must adequately fund this and other centers like it across the state.
As technology advances and industries change, so do the skills required to fill the jobs gap and fill jobs in the regional economies across the state. It's given rise to what's become known as the skills gap, or the disparity between skills potential employers require and the skills that exist in the population seeking employment.
In Western New York the skills gap is largely to blame for approximately 1,000 local manufacturing jobs that go unfilled each month.
Governor Cuomo outlined an initiative to address this persistent trend, called the Next Generation Jobs Linkage Program. It's a program that deserves our support. This jobs training program is similar to a proposal we drew up called the Centers for Workforce Achievement. These programs are designed to partner community colleges with local employers to develop a skilled workforce for growth industries in our regional economy. It will help bridge this gap, this skills gap, this jobs gap. It will help lead to high-wage jobs in programs for graduates, and a highly trained workforce, and help support local businesses. I urge support for this critical program to get New Yorkers back to work.
And last but certainly not least, I reiterate my call for an increase in the minimum wage. As the Governor stated in his State of the State remarks at the beginning of the year, and I quote: "It is the right thing to do. It is the fair thing to do. It is long overdue."
Let's pass an increase in the minimum wage that reflects our respect for the value of hard work, so that hardworking New Yorkers can hold their heads high after a 40, 50, or 60-hour work week and can return home to their loved ones with not just a paycheck but with the dignity that they deserve as well.
Thank you, Mr. President.
ACTING PRESIDENT GRIFFO:Senator Parker.
SENATOR PARKER:Mr. President, on the resolution.
ACTING PRESIDENT GRIFFO:Senator Parker on the resolution.
SENATOR PARKER:We've gotten to the point in the process when everything has been said, everybody just hasn't said it yet. And so let me add my voice to the chorus of those who have some mixed emotions about what we see here in this resolution.
There's certainly some things that I think were done right, and I applaud folks who worked on this in terms of working hard to kind of right some wrongs. But there's still some things that we have yet to really resolve in any kind of significant way.
I'm going to make six quick points, one about Downstate Medical Center's financial crisis and the privatization language; around education, around restoring full funding for schools and particularly around the Campaign for Fiscal Equity lawsuit; the minimum wage; 18-a; lack of support for the developmentally disabled; and MWBEs.
Let me just start with the minimum wage. And Senator Peralta and then Senator Kennedy just touched on it. We have to do a minimum wage. And I was actually disappointed that this Senate resolution does not contain a specific proposal around the minimum wage with indexing.
I have a bill that actually is based on the Fiscal Policy Institute's analysis that said had we been indexing the minimum wage since 1970, we would now be at $11.15. So I have a bill that would make the minimum wage in the state $11.15, with indexing. I know you might have been waiting for that proposal. So if you want to add that, you know, to the final version, I'm happy to be taking cosponsors on that bill.
And then as it relates to Downstate Medical center in Brooklyn -- and this is really right now a crisis. We have a significant medical crisis in Brooklyn, the fourth largest city in the country, the largest county in the universe. As we call -- me and Simcha Felder called it, "the People's Republic of Brooklyn."
But we've been shortchanged as relates to healthcare. And this is a problem not just for Downstate but also for Long Island College Hospital, LICH, as we lovingly called it, which is scheduled to be closed. And I've been working with Senator Daniel Squadron and others around both saving that hospital, which is important not just for the community that it sits in, but for the surrounding communities in places like Red Hook that were hit particularly hard by Superstorm Sandy.
Let me be clear that Downstate treats nearly 400,000 patients on an annual basis, and about 85 percent of them are African-American. Many of the communities suffer from high rates of chronic illness, including obesity, hypertension, diabetes, and require ready access to quality healthcare services.
For many, Downstate is the first choice and the last resort for their healthcare needs in our communities. It trains the largest number of black and Latino healthcare professionals in the entire country. If Downstate were closed, it would devastate Brooklyn and deepen Brooklyn's healthcare crisis.
And so, you know, my message around Downstate is that it is too big to fail and we need to address it.
The budget contains also some privatization language. You heard Senator Rivera talk about it; you heard Senator Stavisky, our ranker on Higher Education, also talk about this privatization language that now went from like two hospitals to now 10 hospitals. It's amorphous language. It doesn't really tell us what the privatization proposal is.
And I want to suggesting that both the Senate majority, the IDC and the Governor eliminate that language until we can clarify it and have more conversation about it.
As it relates to education, we're not really doing nearly enough as relates to education. First, it's unconscionable that this budget does not restore the $260 million cut from New York City public schools. You know, we are now punishing children because adults can't get along. And I don't know anywhere where that actually makes sense.
Put that money back. Let's figure out a way to get teacher evaluations. We all voted for it, we believe it's the right thing to do. But we can't punish children because adults can't get along.
In addition, we have yet to live up to our fulfillment of the Campaign for Fiscal Equity lawsuit. In 2006, I stood up in this body and I took 13 no votes on the budget because of CFE. I'm prepared to do the same thing this time as well if in fact we don't make sure that we take care of the high-needs school districts around the State of New York.
As relates to 18-a -- and Senator Gipson eloquently talked about how important this was. You know, let me just congratulate the drafters of this resolution for eliminating the 18-a surcharge. This is a surcharge that really ought to be used for its intended purpose, which is to make sure that the rate cases are being heard by the PSC.
When you take that money -- when you increase the fee and then take the money and put it into the budget and then make it, you know, forever, you get rid of both legislative oversight but then you also pass on a tax. Mr. Governor, I thought you said no new taxes. 18-a is a tax that is passed down directly to ratepayers. It has to go. And I'm glad that this Senate resolution does not contain it.
As relates to the issues around the developmentally disabled community, there's a whole clawback issue with the federal government. You know, and we just haven't addressed this the right way. That money that was overpaid was overpaid because of state hospitals. But then we're making the entire system repay the money. That's not the right way to go.
And I am supportive of the $120 million additional funding that was added into the budget on this issue, but we're still not doing enough to help people and families who deal with autism and autism spectrum disorders but also other kind of developmentally disabled persons in our community. And I urge us to do a lot more.
As I conclude, I'm going to reiterate what Senator Ruth Hassell-Thompson spoke about as it relates to starting to put funds in now for the next disparity study regarding women and minority business development.
If we want to look at how we in fact deal with this jobs issue, particularly as it relates in black and Latino communities, it is about creating businesses. Because it's really small businesses in those communities and access to contracting with the state and local governments that in fact provide economic opportunities that will help lift us out of this jobs crisis that we've been in for a number of years.
We not only need to have another disparity study, we still also need to implement all of the recommendations from the last disparity study. And so while I want to applaud the Governor for having a 20 percent goal, what he has not done is put in enough money into the infrastructure of state government that allows the recommendations to be implemented. And so you have policies, but no people in the agencies to in fact actually manifest the work that you want done.
And so this budget is short on that. I ask the Governor and I ask this body to be more responsive and to add this year about $4 million in for MWBE work around the different agencies in the state.
Thank you very much, Mr. President.
ACTING PRESIDENT GRIFFO:Senator Montgomery.
SENATOR MONTGOMERY:Yes, thank you, Mr. President. I would just like to speak on the resolution.
ACTING PRESIDENT GRIFFO:Senator Montgomery on the resolution.
SENATOR MONTGOMERY:Thank you.
There are just several areas that I would like to comment on.
First, I want to say how pleased I am that this resolution reflects certainly what I and many of my colleagues on this side consider to be extremely important, and that is programs for youth in our state.
The Executive's proposal has suggested that we should combine the YDDP and the SDPP programs into one and consider that to be the Youth Development Program, period. This proposal rejects that, because we understand that those two programs serve, in very different ways, different parts of our state. The YDD program primarily has funded county-wide, county-based youth development programs, while the Special Delinquency Prevention Program has funded specific communities within the state and within counties.
This resolution honors that and further clarifies some of the language as it relates to how these funds will be allocated. I am happy about that, because we did not want to see those programs disrupted. And we also are happy to see that this resolution has increased the funding for those programs.
Also, I'm not happy to see that we have rejected, essentially -- this resolution, anyway, has rejected the proposal to expand the Close To home initiative. And I do hope that that is one of those things that we can continue to negotiate about, because we would like to see what are the positive aspects of this program, which relates to how we treat young people who are in trouble in our state. It relates to how we view them as rehabilitative as opposed to just building baby prisons for them.
So the Close To Home is as important for children upstate as it is for New York City. And as you know, we have already begun to implement successfully, to a large extent, Close To Home in New York City. We would like to see that continue statewide.
I also am extremely pleased to see that this resolution has continued our tradition of funding the Neighborhood Preservation Programs in our state as well as the rural programs, Rural Preservation Programs. And in addition, this resolution has added $3 million for the Main Street Program, which is another one that certainly serves organizations in my own district and in districts in the city engaged in community preservation, both residential and commercial and economic.
I am also happy to see that we have rejected the attempt to dismantle these programs and eliminate them as stand-alone programs in our budget, which in my estimation in the long run would threaten the possibility of us continuing their work.
I do want to say, however, that there is one glaring omission in this budget, and that is what happens to the State of New York's health institution, the institution of higher education in our borough in particular, and that is Kings County.
As you know, we're the largest county. We have the largest population, yet we are experiencing an attack on our healthcare system. And so this budget does not speak to the need that we have in the Borough of Brooklyn in the County of Kings to make sure that SUNY Downstate medical hospital and school are able to survive the current crisis and build into the future.
We need $150 million to make sure that SUNY Downstate survives, as well as our other health hospitals and medical schools in the state also survive. I see that we've restored the $28 million for the three institutions, but we need $100 million for SUNY now. It would be irresponsible to support a budget resolution which does not support our need, our urgent need to secure that facility and those schools across our state.
So, Mr. President, while I, as noted, have a lot of reasons to be very, very happy with the proposals represented in this resolution, I am loath to support a resolution which does not consider a very, very major issue for the County of Kings, and that is the SUNY Downstate institution and its success from this point going forward.
So thank you for allowing me to speak on this, Mr. President.
ACTING PRESIDENT GRIFFO:Senator O'Brien.
SENATOR O'BRIEN:Thank you, Mr. President. On the resolution.
ACTING PRESIDENT GRIFFO:Senator O'Brien on the resolution.
SENATOR O'BRIEN:The Governor is to be commended for presenting us some time ago a budget that didn't raise taxes. And I know that everyone connected to any of the several conferences that we have in the Senate now has been working diligently towards getting towards an on-time budget, both of which are extremely important to our stability as a state and preparing for our future.
But there's still great weakness in our economy. And we have to prioritize, in my view, those things that will help us move our economy forward. And I believe this resolution puts us on the right path by providing tax relief to families and helping job creators revitalize our state's economy.
I hear frequently from families struggling with high taxes, and I believe that many of the changes we're proposing today are going to be of significant assistance to them. The Family Tax Relief Act will provide more than $800 million in tax relief for middle-class families in the form of a number of tax credits and tax breaks.
We're also adding funding to help new businesses get off the ground by providing incubator services. These will include things like marketing assistance, help finding investors, presenting business plans, and providing expert advice on accounting and regulatory compliance.
Providing help to new small businesses and to families is one of the most certain paths to growing our state's economy. Small businesses are the engines of job growth. They're challenged now to find new ways to compete and prosper in a changing global economy, and we need to assist them.
At the same time, this bill makes it possible for families to stay in New York and spend more money here driving our consumer economy to new heights.
I support this resolution because its measures encourage job creators to locate and launch new businesses here and helps make sure that hardworking families have a bearable tax burden. We are growing a business-friendly climate in New York State and looking out for families through tax relief.
The provisions in this resolution, in my estimation, will significantly help our progress towards these goals, and for those reasons I support the resolution.
Thank you, Mr. President.
ACTING PRESIDENT GRIFFO:Senator Sanders.
SENATOR SANDERS:Thank you, Mr. President. On the resolution.
ACTING PRESIDENT GRIFFO:Senator Sanders on the resolution.
SENATOR SANDERS:Today I stand to encourage my colleagues on two issues, MWBE and TANF.
The Minority and Women-Owned Business Enterprise is the state's attempt to ensure an even playing field for all companies that are trying to use the state's purchasing. The Senate Majority is eliminating the $3 million that have been set aside to study the state's disparity. This is important because the 2010 study, which cost 1.$7 million and took 2.5 years to complete, studied only 39 state entities and focused on MWBE business activity.
The 2016 study which is needed is a much more comprehensive study, requiring a review of over a hundred state entities and must also include an analysis of workforce diversity with respect to state contracts, and will cost $3 million.
Another worthy issue is TANF, Temporary Assistance for Needy Families. This is the initiative that they put in what's called the welfare -- which is now called TANF -- is put in there to help people get off of welfare. It's a hand up, it's not a handout. And we are in the process of eliminating many of these initiatives.
This is the very thing that we want people to do -- we want them to leave the system, become taxpayers, become people who are able to take care of their families, and perhaps even become state senators one day.
We are eliminating some of these things, and that is not a wise move.
On my final thing that I wish to say, I want to reflect on how the children of New York City are being shortchanged by this budget. And yes, as it has been said earlier, it seems to be an argument of adults which is has far-reaching effect on the children. It seems to me that when the adults, instead of them going to the cool-out room or whatever we want to call it, we're sending the children over there.
So because of the shortchanging that we are doing for the children of New York City, I cannot support this resolution.
Thank you, Mr. President.
ACTING PRESIDENT GRIFFO:Thank you, Senator Sanders.
Senator Marcellino.
SENATOR MARCELLINO:Thank you, Mr. President. On the resolution.
ACTING PRESIDENT GRIFFO:Senator Marcellino on the resolution.
SENATOR MARCELLINO:Mr. President, working with the Governor and the Assembly, we are on track to pass the earliest state budget in more than 30 years, truly a worthy endeavor. The Senate budget is a responsible plan that controls spending, rejects new taxes, makes job creation a priority, invests in education, healthcare and New York's infrastructure.
Of the three budget proposals -- and this one I'm particularly proud of -- advanced this year, the Senate's budget proposal is the only one put together with input from both sides of the aisle.
The Senate budget includes elements of our Senate Republican Blueprint for Jobs, including tax relief to small businesses, manufacturers, lower energy costs for every New Yorker and every business, and sweeping reforms to cut red tape. The Senate's proposal eliminates the 18-a assessment to reduce energy costs for businesses and consumers. We reduce the corporate franchise tax for manufacturers and eliminate it altogether over the next four years so that they can use the resulting savings to increase new jobs and grow.
To help middle-class families meet the rising cost of living, we increase the dependent exemption from $1,000 to $2,020 per dependent. We provide a new supplemental child tax credit of $500 per family and restore the STAR exemption rebate for seniors this year.
Our plan imposes a permanent tax spending cap, a measure that the Republican-controlled Senate has repeatedly passed but the Assembly has refused to take up.
Over the past two years, the state has saved $18.6 billion -- let me repeat that. Over the last two years, the state has saved $18.6 billion by adhering to a self-imposed 2 percent spending cap. By making the cap permanent, New York will save $11.2 billion over the next four years.
Mr. President, there's a lot more in this budget that's worthy and should be mentioned, but I'm not going to do it now in reference to time. But I urge everyone, everyone -- it's not a perfect budget by any means, but I urge everyone to vote for this budget because it gives us a good start in our negotiations with the other house and with the Governor. I look forward to passing this budget on time and early, first time in 30 years.
Thank you, Mr. President.
ACTING PRESIDENT GRIFFO:Thank you, Senator Marcellino.
Senator Carlucci on the resolution.
SENATOR CARLUCCI:Mr. President, on the resolution.
I want to thank my colleagues for putting forth this important resolution, this important budget resolution.
Over the past session I've had the distinct privilege of serving as chairman of the Mental Health and Developmental Disabilities Committee, and this budget shows our commitment, government's commitment to say that we have to fulfill our responsibility to take care of our most vulnerable populations. And we believe we have to balance the budget, and we will balance the budget, but we're not going to do it on the backs of people with developmental disabilities.
So I commend my colleagues for working diligently to reinstate $120 million so we don't have that across-the-board cut where families and people with developmental disabilities will suffer.
I also commend my colleagues for fully restoring "prescriber prevails." We have to make sure that medical professionals, that doctors, psychiatrists have the end say, that they're the ones with the experience, with the degrees, saying which medications patients should get. Particularly when we talk about mental health, and we talk about the importance of mental health, we have to make sure that psychiatrists and doctors can prescribe atypical antipsychotic medications that they believe are appropriate.
I also want to thank my colleagues for standing up for veterans. Believe it or not, right now our young men and women coming back from Afghanistan suffer from an unemployment rate that's double that of their civilian counterparts. That's outrageous. But our Senate is standing up and doing something about it.
With Jobs for Heroes, we're providing tax credits, tax credits for smart employers that want to employ veterans coming back from Afghanistan, and rewarding employers for high-paying jobs. So we're not just giving a blanket tax credit, but we're rewarding employers for high-paying jobs. Up to 15 percent of that salary will go to a tax credit for hiring an unemployed veteran.
Also, we're fulfilling our commitment and saying that we must raise the minimum wage. It's time we raised the minimum wage, and we have to have a solid foundation if we're going to allow people working to get out of poverty and get into the ranks of the middle class.
And of particular importance when we talk about the middle class, we're really fulfilling our commitment to make sure that we recognize that the middle class is the economic driver of this state and this nation. And by reinstating the STAR rebate check, we're going to allow people to stay in the middle class. We're going to allow families to stay in their homes in the suburbs and throughout New York State. And this STAR rebate check could mean the difference between a family staying in their home or having to go into foreclosure.
So over the coming weeks I look forward to working with my colleagues to continue fighting and making sure that these provisions stay in the budget and that we make sure we continue to move New York forward.
Thank you, Mr. President.
ACTING PRESIDENT GRIFFO:Thank you, Senator Carlucci.
Senator Krueger.
SENATOR KRUEGER:Thank you, Mr. President. I think I have the honor of closing tonight, but perhaps others have something to say.
So, you know, I do want to apologize to my colleague and friend John DeFrancisco. I learned after our earlier discussion that Syracuse had a really bad basketball game recently. So that apparently condolences to the Syracuse fans here, and I guess hooray for the Georgetown fans, whoever they are.
But to get back on message tonight, so we've just been debating and talking on a one-house budget resolution. Again, it's not a bill. It doesn't have any standing in law. It's a resolution. It's a resolution that, when we add it up, it appears would put us in the hole about $4.5 billion into the future in financial plans, with no way to actually pay for it, if you were to accept the full resolution, because it's putting a supermajority requirement on any future tax increases or even continuations of revenue that might be sunsetting.
So it's a $4.5 billion year after year budget gap we'd be creating with no ability to really pay for it. That seems like a problem.
It is true it has some individual items that people like. Senator Carlucci just talked about a veterans tax credit for hiring veterans; I like that program. That's about a $15 million expense for the state. I think it's worthwhile. But I don't really know why we would be giving the wealthiest New Yorkers $70 million in new itemized deductions, royalty income, vending machines not having to pay taxes.
So this resolution gives $20 million in new aid to local governments through $20 million in AIM, but then it's going to cut the taxes for vending machines by $20 million. Which, by the way, is simply saying if you're a small business who sells candy and salty snacks and soda, you have to collect and pay the tax, but if you're a vending machine company you're competing with, they don't have to collect or pay the tax. So I'd say that's really an inequitable tax change.
And of course we want to give a cigar tax cap for the expensive cigars and a private-aircraft tax exemption for people with their private airplanes.
But there are a couple of nice things in there, like the $15 million for vets. But what did we take out? We took out all the funding to operationalize the SAFE Act to protect citizens from the types of guns that shouldn't be on our streets. We passed that law, but now apparently in this resolution we're not going to fund the money the State Police need to operationalize it. That should concern us.
As Senator Espaillat pointed out, we're going to cut the funding for the Tenant Protection Unit, affecting hundreds of thousands of residents in apartments in New York State.
We're going to redirect the housing capital money from the Mortgage Insurance Fund that was supposed to go, at about $100 million a year, towards preservation and expansion of affordable housing. We're going to take that and we're going to stuff that into the General Fund to help pay for something because we're cutting all these taxes.
There's no Foundation Aid for education, so I'm delighted that we're putting money into education. But I have to question how this resolution is doing it, because I hear that school districts are desperate for Foundation Aid and that there's court precedent for how we should distribute our money. But that's not how this budget does it.
Actually, we don't really know how this budget resolution does it because I still haven't gotten an explanation of how the education dollars would be distributed in runs, because there's no runs attached to this education money being put back in.
As were highlighted by several of my colleagues, there's no funds for the DREAM Act, which would help ensure that children raised in this state, living in this state, dreaming of being taxpayers and someday citizens of this state still won't have an ability or a fair shot to go to our colleges, which harms us all.
There was a nice section of the Governor's bill that would strengthen the Public Service Commission's ability to hold utilities accountable for their failure to do right by people during times of crisis, like after Sandy with LIPA. I have no idea why that section got removed from the Governor's budget. Because I'm a big believer in strengthening oversight and accountability for the utilities.
There's a lot of confusion about that minimum-wage proposal. Somebody just said they're proud there's minimum-wage language in this resolution. Well, I've read the minimum-wage resolution language. I don't even understand what it is. Something happens over three years, if people study it and decide they want to do that. But when I'm reading my smartphone while sitting here on the floor, Senator Skelos says he doesn't even agree with the language that went into the resolution.
So I don't think anybody is actually supporting a minimum-wage increase in this resolution. But I know I am, and I'm waiting to see a real one.
One of my colleagues said "Finally, something for unemployment benefits" and that she's proud that that's in there. Well, you know, when you read the proposal that the Governor made and how it's placed here in the resolution, it actually risks lowering unemployment benefits or doing away with them for some of the lowest-wage workers and part-time workers. It takes to 2026 to see any significant increase in the incredibly low unemployment benefit payout for workers, $5 a year -- $5 increase in the maximum per year.
Let's talk about our own pay. Let's talk about inflation. Let's talk about why we need a minimum-wage increase. I'm not sure you can really with a straight face say "great victory" when we lowered benefits for some people to guarantee an increase of $5 per maximum benefit for others. That's not what I think is employment benefit reform.
There is no solution for the SUNY medical schools and particularly the SUNY Downstate Hospital in Brooklyn that so many of my colleagues talked about.
So we took gambling out. And I'm not saying I'm not happy that we took gambling out. But the one thing we left in about gambling is we're going to allow those under age 21 to play Quick Draw? I object. I really don't think we should be expanding gambling to those under the age of 21. And since we took everything else about gaming out of the Governor's budget in this one-house resolution, I think we should have taken out the underage gambling as well.
There's some strange Article 7 language. And I confess we didn't have that many hours to look at all this. And actually a couple of the bills we only saw about two hours before we came to the floor here today. But there's a strange Article 7 section, again, about the brownfields proposals. And I have to say I don't necessarily agree with my colleague's staff that this won't cost anything. I suspect that's exactly why this is in here, to give some significant new tax credits to perhaps some of the worst polluters of land in the state, and I worry about that.
I worry that there's complex Article 7 language about using the RGGI funds intended for clean energy, the tax credits that you trade back for not polluting that's supposed to go into clean energy. And there's some interesting and complex language there that appears to expand some good things but then allow it to be shifted into property tax reductions for coal plants. I think everybody ought to take a serious look at that one before they vote yes.
There's also something about farm assessments. Now, I agree that there's a real problem with property taxes for farms. But if you cap the assessment at 2 percent instead of 10 percent -- and that's how I read that Article 7 language -- you're basically saying to the localities with lots of farms: We're reducing your property tax revenue.
And I don't know about you, but I keep hearing that everybody is in a panic about reduced property tax revenue. We already capped at 2 percent the residential property tax. And if we go ahead and lower their tax revenue from farms and there are a lot of farms in their district -- I know, Mr. President, you have a lot of farms in your district. I would really want to look very carefully at the impact on my localities from that specific Article 7 language.
Now, I don't actually have any farms in my district, so I probably won't get a lot of angry people about that one. But other people here might get some calls when the localities learn they're getting even reduced property tax through that move.
Again, we delay the diesel emissions requirement. Well, I've been here since 2002. We passed a requirement to apply higher standards for diesel vehicle emissions soon after I got here. And what have we been doing ever since? We just keep delaying it.
So when you pass a good environmental law but then you just delay out forever ever implementing the law, don't pretend you really passed a good environmental law. So we do that again today.
There are so many reasons not to vote for this budget resolution. Not because there aren't some good things there. But it's one house. It has a life today that ends tomorrow. And for me, I'll sleep better at night knowing that I told my constituents why I had to vote no on this even though it's true and many of my colleagues stood up and talk about the good things that were in here.
We all want to do the good things. We also have a responsibility to do a balanced budget. And we also have a responsibility to not do resolutions in dark of night and no time for the public or half the colleagues on this floor to really delve into it. And I suspect a bunch of my colleagues on the other side of the aisle didn't look through all that Article 7 language all that carefully either.
So I'm urging a no vote on this bill, Mr. President. Thank you.
ACTING PRESIDENT GRIFFO:Senator DeFrancisco.
SENATOR DeFRANCISCO: I'm just going to be very brief as everyone will give a sigh of relief. I'm not going to respond to every point. But I just want to say one thing.
Any bill from any house is going to have things in it that people don't agree with. I don't agree with everything in the bill. There were several things I wanted in that weren't in there.
However, this has been done in a bipartisan way. Many of the same questions and concerns at the budget hearings that I raised and other Republicans raised were raised by Democrats in the budget hearings as well. The same concerns that we had on the major issues were mentioned during the budget hearings.
The point of the matter and the fact of the matter is the major issues, as were commented on by many of the speakers on both sides of the aisle, many good things are in this budget. I would just urge everybody, even though you don't like everything in the budget or something is omitted that you really wanted there, I think it gives us a better bargaining position, the final negotiations from here to the final budget, if we've got a bipartisan and a strong bipartisan "yes" vote on this resolution.
And I would urge everyone that they reconsider some of the drawbacks in the bill and try to look at the good things to give us more ability to get those in the final budget.
Thank you, Mr. President.
ACTING PRESIDENT GRIFFO:Thank you, Senator DeFrancisco.
Senator Klein.
SENATOR KLEIN:Thank you, Mr. President.
I want to thank my colleague Co-President Dean Skelos for his cooperation during this very short time frame.
Today, for the first time in modern history in the New York State Senate, we're voting on a budget resolution crafted by a bipartisan coalition of Democrats and Republicans.
And I think of course this is our first round, now that we enter budget negotiations with the Governor and the Assembly. But I think what we're putting forth today is a smart, responsible and fair proposal.
I just want to touch on some of the issues that are included in here that I think are extremely important. And I want to thank Senator Malcolm Smith and Senator Andrew Lanza, the two cochairs of the bipartisan Task Force on Sandy Recovery, and all the members that were involved, because I think we took a very important bold step in moving forward, in making sure that relief comes to those who were harmed during Superstorm Sandy. And I think we really have a roadmap in place to make sure we can protect the residents of the State of New York from future disasters.
For the first time in memory in the Senate, we're creating an independent office of risk management, something that could potentially save the taxpayers of the State of New York close to $100 million a year by preparing for emergencies, by making sure we put in stopgap measures so the state doesn't constantly get sued, like they did last year to the tune of $200 million. So I think that's going to be money well spent and certainly will pay for itself.
I also want to thank my borough president in the Bronx, Reuben Diaz, Jr., who put forth something that was very, very important, a gun crime database, something that will now post as part of the pistol database that will come into effect. So what we're doing here today is amending the Governor's proposal and expanding the database that was proposed in the SAFE Act to also include anyone who commits dangerous crimes using a gun. That's something that the borough president supported in his State of the Borough, it's something that I support, and I'm hopeful that we can actually include that in our final budget.
I also want to thank my colleague Senator David Carlucci for really being a leader in restoring the $100 million to the Office for People With Developmental Disabilities. This is something that is very important to I know all of us, both Democrat and Republican. Because I think we're sending a very simple message that we can't balance this budget on the backs of the mentally disabled.
We also have in this one-house budget resolution for the first time a teen health education program where we're going to address specific needs of teenagers around the State of New York like obesity, ovarian cancer. We're looking at things as far as diabetes that certainly hit inner-city kids. And I think the result will be healthier teens around the State of New York.
As Senator Carlucci mentioned, something that's very important and I think is quite historic is a veterans tax credit. We're going to provide a tax credit to every business who hires a returning veteran.
Presently the unemployment rate is high. But if you look at the numbers among veterans in New York State, unemployment among returning veterans from post-9/11 conflicts and wars is close to 12 percent. We can do better. I think we should be sending a message to those men and women who are returning from overseas after defending their country that we should have a job waiting for them when they come back.
And I think by providing that incentive to businesses with a tax credit, we'll not only reduce unemployment but I think we'll make sure that our returning veterans have their rightful place in our society with a job.
Also as was said by my colleague Diane Savino, the chair of the Labor Committee, in this one-house resolution we make a commitment to look at increasing the minimum wage. That's something that I think is an issue of fairness. I also believe it's good business. Because when you give a minimum-wage worker a boost in their salary, they're going to spend it. And where are they going to spend it? They're going to spend it at local businesses. So we're going to boost our local economy.
So that's something that, moving forward, I hope we can achieve in our final budget plan.
I also want to say a special thank you to the staff. They have worked very, very hard, both the IDC staff, the Democratic staff, as well as the Republican staff, in a very short time frame. I want to thank my chief of staff, John Emrick, and I know I also want to thank Robert Mujica, the Republicans' Finance director, and everyone involved, because I know there's too many to thank. But they did such a tremendous job under a very small time frame in making sure that we had this one-house resolution ready for today.
So again, I want to thank my colleagues. And of course, Mr. President, I vote yes on this historic one-house budget resolution.
ACTING PRESIDENT GRIFFO:Thank you, Senator Klein.
To close debate tonight, the chair recognizes Senator Skelos.
SENATOR SKELOS:Thank you very much, Mr. President.
And I want too want to thank Senator Klein, co-leader, Senate Finance Chair John DeFrancisco, and all the staff that have worked diligently on bringing this budget resolution before us for a vote today.
Our budget is a responsible plan that controls spending, rejects new taxes, and makes job creation a priority. It eliminates the horrendous 18-a assessment, a job-killing surcharge that increases the cost of energy for businesses and consumers and holds New York back.
The budget includes elements of our Senate Republican Blueprint for Jobs to revitalize and rebuild our economy. We reduce the corporate franchise tax for manufacturers and eliminate it altogether over four years. To help middle-class families meet rising costs, we increase the dependent exemption from $1,000 to $2,020 per dependent; provide a new supplemental child tax credit of $500 per family; and restore the STAR rebate checks for fixed-income seniors.
Our plan imposes a permanent state spending cap passed repeatedly in this house. Over the past two years, the state has saved over $18.6 billion by sticking to a self-imposed 2 percent cap. By making the cap permanent, New York will save $11.2 billion over the next four years.
To help local governments, we accelerate the takeover of local Medicaid, saving counties millions of dollars. That's real mandate relief. Our budget reaffirms the Senate's commitment to education by increasing state aid. We restore millions of dollars to critical women's health and wellness programs, including funding for rape crisis centers, the Adelphi University Breast Cancer Program, WIC and others. And we restore the cuts to the Office for People With Developmental Disabilities to ensure the state continues to protect the most vulnerable New Yorkers.
In the Senate we have taken a good budget and made it better. Working with the Governor and the Assembly, New York is on track to have its earliest budget in 30 years. Let's finish the job.
ACTING PRESIDENT GRIFFO:Thank you, Senator Skelos.
The question is on the resolution. All in favor signify by saying aye.
(Response of "Aye.")
ACTING PRESIDENT GRIFFO:Opposed?
(Response of "Nay.")
ACTING PRESIDENT GRIFFO:The resolution is adopted.
SENATOR GIANARIS:Show of hands, Mr. President.
ACTING PRESIDENT GRIFFO:A show of hands --
SENATOR LIBOUS:Excuse me, Mr. President.
ACTING PRESIDENT GRIFFO:Senator Libous.
SENATOR LIBOUS:We respect your enthusiasm. But this resolution is a little different, because it has fiscal implication. It is a roll call just like a fast roll call.
So if members wish to vote no, all they need to do is raise their hand. So if we could --
ACTING PRESIDENT GRIFFO:Senator Libous, I was about to instruct, at the request of the call for a show of hands, that we so order. All those in the negative please raise your hand.
(Members raised their hands.)
ACTING PRESIDENT GRIFFO:The Secretary will re-call the roll.
(The Secretary called the roll.)
ACTING PRESIDENT GRIFFO:The Secretary will announce the results.
THE SECRETARY:Those recorded in the negative are Senators Adams, Breslin, Dilan, Espaillat, Gianaris, Hassell-Thompson, Hoylman, Krueger, Montgomery, Parker, Peralta, Perkins, Rivera, Sampson, Sanders, Serrano, Squadron, and Stewart-Cousins.
Ayes, 45. Nays, 18.
ACTING PRESIDENT GRIFFO:The resolution is adopted.
Senator Libous.
SENATOR LIBOUS:Mr. President, has the desk received an announcement from the Assembly?
ACTING PRESIDENT GRIFFO:We have, and it is filed in the Journal Clerk's office.
Senator Libous.
SENATOR LIBOUS:Mr. President, is there any further business at the desk?
ACTING PRESIDENT GRIFFO:There is no further business before the desk.
SENATOR LIBOUS:Mr. President, I do have a very important announcement. I know sometimes I say that and then we adjourn --
ACTING PRESIDENT GRIFFO:Could we have some order, please.
SENATOR LIBOUS:-- but I do have an important announcement.
We expect that sometime hopefully within the hour that the General Conference Committee will convene this evening. I can't give you a time, but we expect that the General Conference Committee will convene hopefully within the hour. So that's a bit of information. Do with it as you please.
And there being no further business before the Senate this evening, I move that we adjourn until Tuesday, March 12th, at 3:00 p.m.
ACTING PRESIDENT GRIFFO:On motion, the Senate stands adjourned until Tuesday, March 12th, at 3:00 p.m.
(Whereupon, at 5:24 p.m., the Senate adjourned.)
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