The State of the State Address -- 4 January 2001

>> Gary: JUST AHEAD ON "NEED TO KNOW", THE GOVERNOR LAID OUT HIS PLANS FOR THE STATE THIS WEEK, AND IT LOOKS AS THOUGH UPSTATE NEW YORK IS GETTING LOTS OF THE GOVERNOR'S ATTENTION. WE'LL HAVE EXCERPTS OF THE GOVERNOR'S SPEECH, REACTION FROM THE ASSEMBLY SPEAKER AND WE'LL HEAR FROM DEMOCRATIC AND REPUBLICAN LAWMAKERS IN THE STUDIO. IT'S ALL NEXT ON "NEED TO KNOW."

>> Gary: THANK YOU FOR JOINING US. THE STATE OF THE STATE SPEECH IS NOT JUST A YEARLY REFLEX OR A PRESS OPPORTUNITY FOR GOVERNOR PATAKI. IT'S THE WAY NEW YORK GOVERNORS MEET THEIR CONSTITUTIONAL DUTY. ACCORDING TO THE STATE CONSTITUTION, THE GOVERNOR SHALL, QUOTE, "COMMUNICATE BY MESSAGE TO THE LEGISLATURE AT EVERY SESSION THE CONDITION OF THE STATE AND RECOMMEND SUCH MATTERS TO IT AS HE SHALL JUDGE EXPEDIENT." THIS IS GOVERNOR PATAKI'S SEVENTH ANNUAL MESSAGE TO THE LEGISLATURE. THE STATE OF THE STATE SPEECH TRADITIONALLY KICKS OFF THE BEGINNING OF THE LEGISLATIVE SESSION. THIS YEAR IS NO DIFFERENT. THIS WEEK MARKED THE 224th ANNUAL SESSION OF THE NEW YORK STATE LEGISLATURE. TAX REFORM, SCHOOL AID REFORM, DRUG LAW REFORM, CENTERS OF EXCELLENCE, ALL TOPPED THE GOVERNOR'S SPEECH THIS WEEK. JOINING ME IN THE STUDIO TO TALK ABOUT THE UPCOMING LEGISLATIVE SESSION, AND TO COMMENT ON THE GOVERNOR'S SPEECH, ARE TWO STATE SENATORS FROM OUR AREA. DEMOCRAT RICK DOLLINGER, HE REPRESENTS THE 54th DISTRICT, AND REPUBLICAN JIM ALESI REPRESENTS THE 55th DISTRICT. GENTLEMEN, THANK YOU FOR JOINING US. BEFORE WE TALK, LET'S FIRST TAKE A LOOK AT SOME OF THE GOVERNOR'S SPEECH. FIRST UP HE TALKS TAXES AND ABOUT THE UPSTATE ECONOMY.

>> Governor George E. Pataki: I ASK YOU TO CUT TAXES ON THE PEOPLE OF NEW YORK FOR THE SEVENTH STRAIGHT YEAR. (Applause) THE BUDGET I SUBMIT WILL EXPAND THE MOST AMBITIOUS TAX-CUTTING PROGRAM IN THE NATION. THANKS TO STAR, THE AVERAGE SENIOR CITIZEN PAYS 55% LESS IN SCHOOL PROPERTY TAXES THAN THREE YEARS AGO. SOME 200,000 SENIORS NOW PAY NO SCHOOL PROPERTY TAXES AT ALL, NOT ONE DIME. WHEN STAR IS FULLY PHASED IN THIS YEAR, ALL OTHER HOMEOWNERS IN NEW YORK WILL HAVE SEEN THEIR SCHOOL PROPERTY TAXES REDUCED BY AN AVERAGE OF 27%.

(Applause)

BUT THE STAR PROGRAM ISN'T ABOUT NUMBERS AND PERCENTAGES; IT'S ABOUT REAL PEOPLE, PEOPLE LIKE CLAIR LANE OF GENESEE COUNTY, WHO SENT ME A LETTER SAYING THAT, QUOTE, "RELIEF FROM SCHOOL TAXES SAVED OUR HOME." WE'VE CUT SCHOOL PROPERTY TAXES. NOW IT'S TIME TO CUT COUNTY PROPERTY TAXES.

(Applause)

THIS YEAR I WILL PROPOSE ENACTING CO-STAR, WHICH WILL DRAMATICALLY REDUCE THE BURDEN OF COUNTY PROPERTY TAXES ON THE NEW YORKERS WHO NEED IT MOST, SENIORS AND FARMERS.

(Applause)

AND AS WE CONTINUE TO CUT TAXES ON WORKING FAMILIES, WE MUST ALSO CONTINUE TO CUT TAXES ON THE BUSINESSES THAT KEEP THEM WORKING. THEY SAY YOU CAN'T RUN A BUSINESS WITHOUT TAKING RISKS. SIX YEARS AGO, DOING BUSINESS IN NEW YORK STATE WAS THE RISKS. NEW YORK'S BUSINESSES WERE OVERREGULATED, OVERTAXED AND UNDERAPPRECIATED. WE CHANGED THAT. WE MADE IT CLEAR THAT THE REWARD FOR ENTERPRISE, INGENUITY, RISK, RISK-TAKING AND SUCCESS SHOULD NOT BE MORE REGULATIONS AND HIGHER TAXES. WE CUT THE TAXES THAT WERE KILLING SMALL BUSINESS, KILLING INVESTMENTS AND KILLING JOBS. THERE ARE THOSE WHO SAID THAT OUR SWEEPING TAX CUTS WOULD HURT OUR STATE'S FINANCES AND WEAKEN NEW YORK'S CREDIT. THEY COULDN'T HAVE BEEN MORE WRONG. MANY OF THE ADDITIONAL TAX CUTS I PROPOSE TODAY WILL BE AIMED AT FURTHER STRENGTHENING OUR UPSTATE ECONOMY, AND I'D LIKE TO DISCUSS THAT WITH YOU FOR A MOMENT. TODAY UPSTATE NEW YORK HAS MORE PRIVATE-SECTOR JOBS THAN AT ANY TIME IN ITS HISTORY.

(Applause)

THROUGHOUT OUR HISTORY, MANY OF OUR UPSTATE COMMUNITIES THRIVED ON THE SUCCESS OF ONE OR A HANDFUL OF LARGE EMPLOYERS, USUALLY MANUFACTURERS, BUT FOR OVER A GENERATION, HUNDREDS OF THESE COMPANIES WERE FORCED OUT OF OUR STATE BY HIGH TAXES, IRRATIONAL REGULATIONS AND A HOSTILE BUSINESS CLIMATE. THE EXODUS OF THESE COMPANIES DEVASTATED THE UPSTATE COMMUNITIES THAT THEY ONCE SUPPORTED. LAST YEAR I ASKED YOU TO ABOLISH ONE OF THE LEADING PRODUCERS OF PINK SLIPS IN UPSTATE NEW YORK, THE GROSS RECEIPTS TAX ON MANUFACTURERS. I APPLAUD YOU FOR TAKING THAT GIANT STEP, AND IT IS A GIANT STEP, ONE THAT'S GOING TO LOWER THE COST OF ENERGY BY NEARLY $400 MILLION A YEAR.

(Applause)

NOW AS WE CONTINUE TO MOVE INTO COMPETITIVE ELECTRIC MARKET, WE NEED TO PROTECT CONSUMERS AGAINST UNWARRANTED PRICE SPIKES, LIKE THE OUTRAGEOUS DOUBLE-DIGIT INCREASES IN NEW YORK CITY LAST SUMMER. RIGHT NOW THE POWER TO PREVENT THAT FROM HAPPENING AGAIN RESTS SOLELY IN THE HANDS OF FEDERAL REGULATORS IN WASHINGTON. THAT'S WRONG. OUR STATE SHOULD HAVE THAT AUTHORITY, AND THIS YEAR I WILL ASK OUR CONGRESSIONAL DELEGATION TO JOIN ME IN THE FIGHT TO GET THAT AUTHORITY.

(Applause)

NOW THAT THE JOB-KILLING GROSS RECEIPTS TAX IS WHERE IT BELONGS, IN THE DUMPSTER, I IMPLORE YOU TO JOIN ME IN SUPPORTING A COMMON-SENSE THREE-POINT PLAN TO CONTINUE TO STRENGTHEN NEW YORK'S MANUFACTURING INDUSTRY. FIRST WE NEED TO FIX THE TAX ON MANUFACTURERS SO THAT IT LOOKS AS THOUGH SOMEONE ACTUALLY DESIGNED IT ON PURPOSE. IT'S ONE TAX, BUT IT TAXES BUSINESSES THREE TIMES, ONCE UNDER PAYROLL, ONCE UNDER PROPERTY, AND THEN AGAIN UNDER RECEIPTS. THAT'S TWO TIMES TOO MANY. THIS YEAR LET'S GET RID OF THE TAX ON PAYROLL AND PROPERTY SO THESE MANUFACTURERS CAN INVEST, GROW AND CREATE NEW JOBS RIGHT HERE IN NEW YORK STATE.

(Applause)

SECOND, THE ALTERNATIVE MINIMUM TAX SENDS A VERY CLEAR MESSAGE TO MANUFACTURERS. IT SAYS, IF YOU INVEST IN NEW YORK, YOU WILL BE PENALIZED. THAT'S WHY WE'VE CUT THAT TAX IN HALF SINCE 1995. THIS YEAR LET'S FINISH OUR WORK AND PUT THE ALTERNATIVE MINIMUM TAX IN THE TRASH CAN WHERE IT BELONGS.

(Applause)

THIRD, WE MUST RECOGNIZE THAT AN INVESTMENT IN THE TECHNICAL DEVELOPMENT OF OUR WORK FORCE IS A DOWN PAYMENT ON A BRIGHTER FUTURE. LET'S MAKE THAT INVESTMENT THIS YEAR BY PROVIDING ONGOING HIGH-TECH TRAINING TO THE MEN AND WOMEN WHO WORK IN MANUFACTURING.

(Applause)

>> Gary: SEVERAL EXCERPTS FROM GOVERNOR PATAKI'S STATE OF THE STATE MESSAGE. JOINING ME IN THE STUDIO, SENATOR RICK DOLLINGER AND SENATOR JIM ALESI. THANK YOU, GENTLEMEN, FOR JOINING ME. LET'S BEGIN WITH TAX CUTS, TAX CUTS, TAX CUTS, TAX CUTS, TAX CUTS, WHICH IS WHAT THE BASELINE MESSAGE THE GOVERNOR DID HAVE FOR REVIVING THE ECONOMY. BUT THERE'S TWO TACKS I WANT TO TAKE. WE'LL TALK ABOUT UPSTATE IN A MINUTE. BUT THE STAR TAX OR THE STAR TAX REDUCTION, WHICH USES STATE FUNDS TO OFFSET. IT DOESN'T REALLY CUT THE PROPERTY TAX, BUT IT MAKES THE PAYMENT FOR THE TAXPAYER OUT OF THE STATE'S FUND AS OPPOSED TO PROPERTY TAX FUND. NOW WE'RE TALKING ABOUT HAVING A CO-STAR PROGRAM, EXPANDING THAT PROGRAM, CUTTING BUSINESS TAXES. MY QUESTION IS, IN LIGHT OF WHAT PRESIDENT-ELECT GEORGE BUSH IS SAYING ABOUT AN ECONOMIC DOWNTURN, CAN WE LOCK OURSELVES INTO A RECURRING DEBT OF PAYING PROBABLY A BILLION-PLUS IN TAX CUTS ACROSS THE BOARD FOR EITHER STAR OR FOR BUSINESS TAXES? IS THAT A CONCERN OF YOURS?

>> I WOULDN'T MAKE THAT SUCH A CONCERN, AS LONG AS YOU UNDERSTAND THAT, WHATEVER THE LEGISLATURE DOES, THE LEGISLATURE CAN UNDO. AND I THINK THAT I PUT MY FAITH IN THE GOVERNOR'S VISION HERE, BUT IF YOU LOOK AT HISTORY TEN YEARS AGO OR SO WHEN THERE WERE PERSONAL INCOME TAX CUTS THAT WERE SCHEDULED IN THE LATE '80s, THEY WERE PUT OFF WHEN THERE WAS A FINANCIAL CRISIS LATER ON, I WOULDN'T HAVE THE SAME CONCERNS NOW BECAUSE WE HAVE A DIFFERENT GOVERNOR; AND I THINK THAT, WITH A SUSTAINED ECONOMY THAT WE'VE HAD, EVEN THOUGH THERE IS A SLOWDOWN, AND IT IS STILL A VERY STRONG AND HEALTHY ECONOMY...

>> Gary: PRETTY TOUGH GENIE TO PUT BACK IN THE BOTTLE THOUGH. ONCE PEOPLE ARE USED TO STAR AND THEY SEE WHAT THEIR PROPERTY TAXES REALLY ARE, BECAUSE IT SHIELDS THAT NUMBER FROM THEIR EYES, THAT WOULD BE A TOUGH GENIE TO PUT GENIE BACK IN THE BOTTLE, WOULDN'T IT?

>> SURELY, IT WOULD, BUT I THINK THAT THE LONG AND THE SHORT OF IT IS THAT, IN THE UNLIKELY EVENT THAT THAT WOULD HAPPEN, YOU STILL HAVE RECOURSE; AND I THINK THAT, KNOWING THAT, I'D BE CONFIDENT IN SUPPORTING THOSE KINDS OF TAX CUTS, IN FACT ENCOURAGING MORE KINDS OF TAX CUTS LIKE THAT, BECAUSE WHEN IT COMES TO PROPERTY TAX CUTS, THAT'S REALLY WHAT HELPS, AND THE PERSONAL INCOME TAX CUTS THAT WE IMPLEMENTED A FEW YEARS AGO, THOSE ARE THE KINDS OF TAX CUTS THAT HELP, AND THOSE ARE THE KINDS THAT, IF YOU DO RUN INTO A SITUATION, YOU WANT TO SUSTAIN THEM.

>> Gary: AND YOU CAN REVERSE THAT.

>> YES.

>> Gary: SENATOR DILLINGER, DO YOU HAVE ANY CONCERNS ON THAT?

>> FIRST UNDERSTAND, AND I THINK YOU POINTED OUT CORRECTLY, GARY, A LOT OF WHAT HE TALKS ABOUT WITH TAX CUTTING, BOTH WITH PROPERTY TAXES FOR SCHOOLS AND PROPERTY TAXES FOR THE COUNTY, ARE NOT TAX CUTS. WHAT THEY ARE IS SIMPLY TRANSITIONING SOMETHING I'VE SUPPORTED FOR A LONG TIME. USE OUR BROAD-BASED SALES AND INCOME TAX TO PAY FOR SCHOOLS. HELP THE COUNTIES OUT BY PUTTING MORE MONEY IN. THERE'S NO REDUCTION IN THE COST OF GOVERNMENT; THERE'S NO REDUCTION IN THE GOVERNMENT SUPPORT OF COUNTIES AND SCHOOL DISTRICTS. THEY'RE SIMPLY SHIFTING THE TAXES FROM THE PROPERTY TAX BASE, SOMETHING MOST OF US FEEL IS TOO ONEROUS IN CERTAIN INSTANCES, TO BROAD-BASED TAXES. BUT UNDERSTAND ONE OTHER THING: IN NEW YORK WE HAVE A TENDENCY TO BACKLOAD ALL OUR TAX CUTS. WE TAX -- WE IMPOSE A NEW LAW THIS YEAR THAT'S GOING TO CUT TAXES FOUR OR FIVE YEARS FROM NOW. IN MANY CASES, WE IN NEW YORK, THE MAJOR CONSEQUENCES OF TAX-CUTTING DONE IN THE MID AND LATE '90s HAS NOT EVEN COME TO ROOST YET, AND THERE ARE SIGNIFICANT OBLIGATIONS OUT THERE WE'RE GOING TO HAVE TO PAY FOR.

>> Gary: SO WE HAVE TO KEEP OUR EYE ON THAT.

>> YOU HAVE TO KEEP YOUR EYE ON THAT BECAUSE THAT'S GOING TO AFFECT OUR REVENUE PICTURE OVER THE SHORT TERM AND LONG TERM.

>> Gary: LET'S BACK UP A LITTLE BIT. THE GOVERNOR REALLY TALKED ABOUT UPSTATE A LOT. I IMAGINE A LOT OF THAT STEMMED FROM THE FACT THAT -- WHILE THE GOVERNOR'S MESSAGE IN THE PAST HAS BEEN UPSTATE ECONOMY'S JUST FINE; THINGS ARE TURNING AROUND. I THINK Mr. LAZIO MODELED THOSE WORDS WHEN HE RAN AGAINST HILLARY CLINTON LAST YEAR, AND I GUESS UPSTATE UNIVERSALLY VOTED WITH ITS FEET SAYING, NO, IT'S NOT SO GREAT UP HERE. I SEE A LOT OF TALK ABOUT CENTERS OF EXCELLENCE, WITH COMBINING EDUCATION, FEDERAL GOVERNMENT IN PLACES LIKE ROCHESTER, ALBANY, BUFFALO, SYRACUSE, UPSTATE. UPSTATE IN FOR A LOT OF ATTENTION THIS LEGISLATIVE SESSION?

>> I THINK IT IS, AND I THINK THAT'S EVIDENCED NOT ONLY BY THE GOVERNOR'S REMARKS YESTERDAY OF UPWARDS OF $1 BILLION OF AN INVESTMENT INTO THOSE CENTERS OF EXCELLENCE, BUT WHAT'S ACTUALLY HAPPENING RIGHT NOW WITH OUR UNIVERSITIES AND WITH OUR BUSINESSES STARTING TO MARRY AND THE INVOLVEMENT OF THE STATE WITH MONEY AND MONEY THAT WE CAN LEVERAGE FEDERAL MONEY WITH IS A SECOND STEP IN MAKING ALL OF THAT GEL. SO I THINK IT'S A GOOD THING THAT THE GOVERNOR HAS SAID WE'RE HERE; WE'RE GOING TO JOIN IN THIS MARRIAGE AND WE'RE GOING TO MAKE IT HAPPEN.

>> I THINK THE GOVERNOR'S GOT A SALESMAN'S JOB TO DO. THERE'S NO QUESTION THAT RICK LAZIO CAME TO UPSTATE NEW YORK, A PLACE WHERE REPUBLICANS HAD ALWAYS WON TEN POINTS AHEAD OF THE DEMOCRATS IN A STATEWIDE RACE AND SAID "I THINK THE ECONOMY'S OKAY." NOBODY IN UPSTATE NEW YORK BELIEVED HIM, AND I THINK IT WAS BECAUSE WE HAVE LAGGED BEHIND THE RECOVERY IN THE BOON PERIOD FOR A PERIOD OF TIME, AND I THINK THE GOVERNOR HAS DONE A LOT OF THINGS TO TRY TO IMPROVE THE ECONOMY. HE JUST HASN'T CONVINCED THE PEOPLE IN THIS NECK OF THE WOODS THAT IT WORKS. MY GUESS IS HE'S STILL GOT A SALESMAN'S JOB TO DO.

>> Gary: OKAY. LET'S MOVE ON. WE HAVE FISCAL POLICY WASN'T THE ONLY THING THAT THE GOVERNOR WAS TALKING ABOUT, NOT THE ONLY THING ON HIS MIND. HE ALSO HAD SOME STRONG THINGS TO SAY ABOUT EDUCATION, ABOUT HEALTH CARE AND ABOUT VIOLENT ISSUES. LET'S TAKE A LOOK. >> Governor George E. Pataki: THE TIME HAS COME TO FIX THE FUNDAMENTAL FLAW THAT TIES THE HANDS OF LOCAL SCHOOL DISTRICTS, THE DINOSAUR THAT IS THE STATE SCHOOL AID FORMULA.

(Applause)

I WILL PROPOSE CONSOLIDATING ELEVEN DIFFERENT COMPLEX FUNDING FORMULAS THAT IN THE PAST HAVE TIED THE HANDS OF SCHOOL DISTRICTS INTO ONE FLEXIBLE, EASY-TO-USE AID CATEGORY. AND IN SO DOING, WE CAN SAVE FUNDS THAT ARE WASTED ON ADMINISTRATIVE COSTS AND INSTEAD SEND THAT MONEY INTO THE CLASSROOMS, WHERE IT'S NEEDED. LET'S MAKE THIS THE YEAR THAT WE PUT CONTROL OF OUR MAJOR URBAN SCHOOL SYSTEMS WHERE IT BELONGS, IN THE HANDS OF THE MAYORS.

(Applause)

THIS YEAR, I ASK FOR YOUR SUPPORT TO DOUBLE THE FUNDING FOR TEACHERS FOR TOMORROW AND TO EXPAND IT TO DRAW UPON ANOTHER UNTAPPED RESERVOIR OF POTENTIAL TEACHERS. OUR POWER PROFESSIONALS WHO WORK IN CLASSROOMS EVERY DAY, TEACHERS' AIDES HAVE SHOWN THEIR COMMITMENT TO OUR CHILDREN. LET'S PROVIDE THEM WITH A CAREER LADDER SO THEY CAN BECOME CERTIFIED TEACHERS TO HELP OUR KIDS.

(Applause)

AND THERE'S ANOTHER POOL OF POTENTIAL TEACHERS WE SHOULD DRAW FROM: RETIRED PUBLIC EMPLOYEES. FROM POLICE OFFICERS TO MEDICAL RESEARCHERS. MANY OF THESE RETIREES COULD MAKE OUTSTANDING TEACHERS. LET'S ALLOW THEM TO BECOME PUBLIC SCHOOL TEACHERS WHILE STILL RECEIVING THEIR RETIREMENT BENEFITS.

(Applause)

THE CHILD HEALTH PLUS IS A WONDERFUL PROGRAM. CHILD HEALTH EXPERTS ARE RIGHT WHEN THEY SAY IT'S A MODEL FOR THE REST OF THE NATION. I THINK I'M RIGHT TO SAY THAT BEING THE BEST SHOULDN'T PREVENT US FROM BEING EVEN BETTER. THAT'S WHY WE'RE MAKING THE SAME COMMITMENT TO ALL NEW YORKERS THROUGH FAMILY HEALTH PLUS, THE MOST COMPREHENSIVE HEALTH CARE PLAN IN THE NATION. STARTING THIS YEAR, WE WILL HELP UP TO 600,000 UNINSURED WORKING NEW YORKERS GET THE HEALTH COVERAGE THEY NEED AND DESERVE.

(Applause)

THIS YEAR, LET'S GIVE POLICE AND PROSECUTORS THE LAWS THEY NEED TO BUILD ON THE SUCCESS OF OUR DNA LAW. LET'S EXPAND THE DNA DATABASE TO INCLUDE ALL CONVICTED CRIMINALS.

(Applause)

WE MUST ALSO RECOGNIZE THAT THE PASSAGE OF TIME DOESN'T MAKE A HEINOUS CRIME ANY LESS HEINOUS. BECAUSE DNA TECHNOLOGY ALLOWS US TO SOLVE CRIMES COMMITTED TEN, TWENTY OR EVEN THIRTY YEARS AGO, WE MUST GET RID OF A LAW THAT PROTECTS THE GUILTY. THERE IS NO STATUTE OF LIMITATIONS ON VICTIMS, AND THERE SHOULD BE NO STATUTE OF LIMITATIONS FOR VIOLENT PREDATORS.

(Applause)

WE'VE TAKEN THE RIGHT STEPS ON GUNS. TOO MANY GUNS ARE COMING INTO NEW YORK FROM STATES THAT HAVE THEM. THIS YEAR WE WILL REINFORCE OUR GUN LAWS WITH AN AGGRESSIVE NEW INITIATIVE AIMED AT STOPPING ILLEGAL WEAPONS BEFORE THEY CAN GETS INTO OUR STATE AND SEIZING THOSE THAT ALREADY HAVE. I'VE DIRECTED THE STATE POLICE TO SPEARHEAD THIS EFFORT WITH A NEW SPECIAL UNIT CALLED SWIFT, THE SPECIAL WEAPONS INTERDICTION FIELD TEAM. THIS ELITE TEAM OF SPECIALLY TRAINED AGENTS WILL GATHER INTELLIGENCE TO IDENTIFY, ARREST AND PROSECUTE GUN TRAFFICKERS. THEY WILL WORK...

(Applause)

THEY WILL WORK WITH LOCAL AND FEDERAL LAW ENFORCEMENT OFFICIALS TO ESTABLISH A STRONG PRESENCE ALONG THE ROUTES GUN TRAFFICKERS USE TO MOVE ILLEGAL WEAPONS. THEY WILL TRACK THEM DOWN, PUT THEM IN PRISON, AND DESTROY THEIR WEAPONS. TO DO THAT MORE EFFECTIVELY, I WILL ALSO PROPOSE LEGISLATION TO TOUGHEN THE PENALTIES FOR THOSE CAUGHT TRAFFICKING ILLEGAL WEAPONS.

>> Gary: AND MORE OF THE GOVERNOR'S STATE OF THE STATE MESSAGE. YOU'RE BACK WITH STATE SENATOR RICK DOLLINGER AND STATE SENATOR JIM ALESI. LET'S START WITH EDUCATION. THE HOLY GRAIL OF EDUCATION, PARTICULARLY... BUT THE STATE SENATE PARTICULARLY, IS HOLD HARMLESS. MY SCHOOL DISTRICT AND MY DISTRICT SHALL NOT GET A PENNY UNDER WHAT IT GOT LAST YEAR. THE GOVERNOR'S SAYING LET'S SCRAP THAT PROGRAM, AND I'VE GOT TO BELIEVE THAT IS GOING TO BE THE BOSNIA OF ANY OF HIS PROPOSALS. IS IT DOA?

>> I WOULD NOT SAY IT'S DOA, AND I HOPE THAT IT ISN'T FROM THE STANDPOINT THAT EVERYBODY RECOGNIZES THAT THE FORMULAS THAT HAVE BEEN USED HAVE BOTHERSOME AND TROUBLESOME, AND IN MANY CASES THEY HAVE DENIED NEEDY SCHOOL DISTRICTS WHAT THEY NEED, AND IN SOME CASES THEY'VE OVERPAID NON-NEEDY SCHOOL DISTRICTS WHAT THEY DON'T NEED. SO ANY APPROACH TO RESOLVING THAT SITUATION IS WORTH EMBRACING AND WORKING FOR. BUT AS FAR AS BEING DOA, I THINK THAT THOSE PEOPLE WHO ARE FEARFUL THAT THEIR CONSTITUENCY WILL LOSE OUT WILL BE VERY LOUD VOICES IN THIS WHAT YOU CALL BOSNIA, THIS POTENTIAL BOSNIA. BUT I THINK THE GOVERNOR IS ABSOLUTELY ON TRACK WITH THE EFFORT, WITH THE EFFORT TO RESOLVE A SITUATION THAT IS ARCHAIC AND THAT IS UNFAIR.

>> Gary: JIM, THIS MAY BE ONE OF THE GREAT TIMES TO BE IN A MINORITY (Laughing) IN THE STATE SENATE. THERE WAS A COMMENT ON THAT. I PUT THE SAME QUESTION TO YOU.

>> WELL, YOU CALL IT THE HOLY GRAIL. I CALL IT THE ROSETTA STONE. IT'S WRITTEN DOWN BUT NOBODY CAN UNDERSTAND IT. IT'S GOING TO TAKE -- I MEAN, PEOPLE HAVE TRIED. MEMBERS OF THE LEGISLATURE HAVE TRIED AND CAN'T FIGURE IT OUT. IT'S ABSOLUTELY INDECIPHERABLE. BUT I THINK THAT THIS IS THE MARK. RATHER THAN TINKER AROUND WITH THE STATE SCHOOL AID FORMULA, WHICH IS A POLITICAL CONUNDRUM WE'RE NEVER GOING TO GET TO; I THINK IT'S A WONDERFUL IDEA, IT'S A LAUDATORY GOAL, BUT IT'S JUST NOT GOING TO HAPPEN. THE BETTER THING TO DO IS TO USE THE REGION'S APPROACH, WHICH IS TO SAY WE NOW HAVE STANDARDS IN PLACE. WE CAN TELL WHICH SCHOOL DISTRICTS ARE FAILING TO MAKE THOSE STANDARDS, AND THAT'S THE AREA WHERE WE NEED TO PUT MORE RESOURCES. PUT A STANDARD COMPLIANCE POOL TOGETHER. THAT'S WHERE THE MONEY OUGHT TO GO.

>> Gary: LET'S MOVE ON TO SOME OF THE VIOLENCE ISSUES AND CRIME ISSUES. ONE THING WE DIDN'T SEE BUT HE DID MENTION, UNDER NO UNCERTAIN TERMS, WHICH I THINK IS GOING TO BE ANOTHER TOUGH THING FROM COVERING THE LEGISLATURE MY YEARS IN ALBANY, IS THE ROCKEFELLER DRUG LAWS. BECAUSE WE'VE HAD STUDY AFTER STUDY, AND I'M SURE THE ASSEMBLY MAJORITY HAS ALWAYS BEEN SAYING WE HAVE TO REDUCE THE WHAT THEY CALL ONEROUS SENTENCES FOR MINOR DRUG OFFENSES OR NON-VIOLENT DRUG OFFENSES. BUT HERE YOU'RE ASKING THE LEGISLATURE TO VOTE AGAINST TOUGH DRUG LAWS, TO IN A SENSE TO REDUCE TOUGH DRUG LAWS. THAT'S GOT TO BE A TOUGH PILL TO SWALLOW, PARTICULARLY FOR THE MORE CONSERVATIVE MEMBERS OF YOUR PARTY. YOU REPRESENT YOUR CONSTITUENCY, AND YOU HAVE MODERATE CONSTITUENCY AND YOU HAVE ALWAYS BEEN A MODERATE SENATOR. BUT LOOKING AT SOME OF YOUR CONSTITUENTS IN THERE, CAN YOU SEE VOTING AGAINST TOUGH DRUG LAWS?

>> I THINK THERE'S SOME SENSE TO THE ARGUMENT THAT IT'S TIME TO REVISIT THAT, AND IF YOU LOOK AT THE FACT THAT TWO OUT OF EVERY SEVEN INMATES ARE THERE FOR -- DIRECTLY BECAUSE OF DRUG POSSESSION, AND YOU HAVE TO BALANCE THAT WITH THE KNOWLEDGE THAT EVERYBODY THAT'S INVOLVED IN THE DRUG TRADE IS PART OF THAT ENTERPRISE, AND THAT ENTERPRISE IS ONE THAT DEALS WITH DEATH AND MURDER AND DESTRUCTION OF HUMAN LIFE. ON THE OTHER HAND, YOU HAVE TO SAY THAT TREATMENT AND REHABILITATION MIGHT BE THE AREA WHERE WE SHOULD BE EMPHASIZING RIGHT NOW.

>> Gary: I JUST LOOK AT MONROE COUNTY WHERE WE HAVE SOMETHING SIMILAR WITH THE DRUG COURT WHICH IS SAYING LET'S GO FOR TREATMENT INSTEAD OF INCARCERATION AND JUST THE FIGHT THAT KICKED OFF WITH THE CONSERVATIVE PARTY IN PARTICULAR. THAT'S GOING TO REPRODUCE ITSELF STATEWIDE, DON'T YOU THINK?

>> IT WILL BE VERY DIFFICULT TO VOTE AGAINST THAT, AND I'LL GIVE YOU THE BEST EXAMPLE. THE SPEAKER OF THE ASSEMBLY, SHELLY SILVER, WHO GENERALLY IS A LIBERAL ON THESE ISSUES, WAS FEARFUL OF BEING PORTRAYED AS SOFT ON CRIME, AND THAT'S WHY HE DID NOT SUPPORT THE REPEAL OR THE RELAXATION OF THE ROCKEFELLER DRUG LAWS. I THINK MAYBE THAT THAT WILL HAPPEN THIS YEAR, BUT WHEN YOU HAVE THE SPEAKER OF THE ASSEMBLY, WHO REALLY IS ALMOST AFRAID TO TOUCH IT BECAUSE OF THE REPERCUSSIONS THAT HE -- AND YOU HAVE TO SAY CONSERVATIVES WOULD HAVE THE SAME FEARS. BUT I THINK IT IS TIME. I THINK THE GOVERNOR'S RIGHT ON THE MARK HERE, AS LONG AS THE FOCUS IS ON TREATMENT AND EDUCATION.

>> WELL, THAT'S WHERE THE PROOF IN THE PUDDING'S GOING TO COME, GARY. THE DRUG COURT IN MONROE COUNTY DREW A HUGE CENSURE WHEN IT STARTED. BUT I THINK PEOPLE HAVE RECOGNIZED OVER TIME THAT APPROACH WORKS. GET PEOPLE IN TREATMENT; DON'T PUT THEM IN JAIL. MY SENSE ABOUT THE ROCKEFELLER DRUG LAWS IS THAT A NUMBER OF PEOPLE IN THE STATE PRISON SYSTEM THAT WOULD ACTUALLY BE EFFECTED IS GETTING SMALLER AND SMALLER OVER TIME. DALE, THE CHAIRMAN OF THE SENATE CODE COMMITTEE, TOLD ME HE THOUGHT A REPEAL WOULD AFFECT ONLY 2,500 OF THE 75,000 PEOPLE WHO ARE ACTUALLY IN THE STATE PRISON SYSTEM; SO IT'S NOT GOING TO HAVE THAT BIG OF AN IMPACT. I THINK JIM IS RIGHT. I THINK THERE ARE LOTS OF PEOPLE OUT THERE WHO SAY YOU CAN'T BE SOFT ON CRIME. BUT I THINK THE GENERAL SENTIMENT AFTER 25 YEARS OF ROCKEFELLER DRUG LAWS CLEARLY DIDN'T WORK. THEY WEREN'T A DETERRENT, AND THEY'VE REALLY BEEN A FAILURE AND WE HAVE TO RE-EXAMINE IT.

>> Gary: OKAY. THE GOVERNOR WASN'T THE ONLY ONE TALKING YESTERDAY. THAT WAS A ROYAL OPPOSITION. IN THIS CASE, THAT'S DEMOCRATIC SPEAKER OF THE ASSEMBLY SHELDON SILVER. HE HAD HIS CHANCE TO COMMENT ON THE GOVERNOR'S ADDRESS. LET'S HEAR IT.

>> NEW YORK IS FACING A BRIGHT FUTURE. NO, WE CANNOT ERASE THE UNCERTAINTY INHERENT IN A FAST-PACED, HIGH-TECH WORLD. YOUR GOVERNMENT CAN ENSURE THAT THERE IS A SOUND FOUNDATION BENEATH YOUR FEET WHATEVER YOUR GOALS AND ASPIRATIONS. BE ASSURED THAT YOUR NEW YORK STATE ASSEMBLY WILL BE WORKING TO SHORE UP THAT FOUNDATION, BY WORKING TO ENHANCE YOUR LOCAL ECONOMY, REDUCE YOUR ENERGY COSTS, IMPROVE YOUR SCHOOLS AND THE CALIBRE OF EDUCATION THEY PROVIDE. ESTABLISH A HEALTH CARE SYSTEM THAT IS AFFORDABLE AND ACCESSIBLE, FAIR AND OF THE HIGHEST QUALITY, AND BY ADVANCING CRIMINAL JUSTICE POLICIES THAT ARE TOUGH AND INTELLIGENT. ALL OF THESE THINGS CAN BE ACCOMPLISHED THROUGH MUTUAL RESPECT AND BIPARTISAN CO-OPERATION. THAT'S HOW WE SHOULD BEGIN THE NEW MILLENNIUM.

>> Gary: AND THAT WAS ASSEMBLY SPEAKER SHELDON SILVER TALKING ABOUT BIPARTISANSHIP. THAT SEEMS TO BE THE CALL BOTH FEDERALLY AND ON THE STATE LEVEL. I WANT TO TOUCH ON THAT. BUT FIRST, ONE OF THE THINGS THAT I DID SEE IN Mr. SILVER'S REMARKS WAS A REMARKABLE -- NOT, YOU KNOW -- WE DON'T DISAGREE VERY MUCH WITH THE GOVERNOR ON THIS. AS A MATTER OF FACT HE'S SAYING WELCOME ABOARD. A LOT OF THINGS WE'VE BEEN TALKING ABOUT, YOU'RE NOW TALKING ABOUT. IS THAT THE GENERAL REACTION YOU GENTLEMEN HAVE?

>> I THINK THE POLLS HAVE SHOWN, AND WE GO BACK TO CLINTON AND LAZIO. I MEAN, THIS STATE HAS BEEN MOVING TO THE MIDDLE. IT'S BEEN VERY MODERATE. I THINK THE ACTION OF MY COLLEAGUES IN THE STATE SENATE, FOR THE FIRST TIME LAST YEAR, THROUGH THE LEADERSHIP OF JOE BRUNO, I THINK DRIVEN IN PART BY ELECTION CONSIDERATIONS. WE DID GUN CONTROL, HATE CRIMES, CLINIC ACCESS, AND JIM WAS IN THERE IN THAT THAT ROOM DEBATING ALL THOSE IN THE SENATE MAJORITY; BUT THERE'S REALLY BEEN A TREND TO GET IN THE MIDDLE. I THINK THAT'S WHAT THE GOVERNOR IS DOING. I THINK WHAT THE SPEAKER IS SAYING IS HE'S TRYING TO DECLARE WE SORT OF HAD THE MIDDLE FIRST. AS STAKING OUT HIS TURF, THIS MAY BE THE FIRST SHOT IN THE POTENTIAL McCALL, PATAKI...

>> I THINK THAT THAT'S MADE POSSIBLE BY THE PREVIOUS SIX YEARS, WHERE A LOT OF THE CONTENTIOUS ISSUES, WHETHER IT WAS RENT CONTROL, WORKER'S COMP ISSUES, THE BUDGET DEFICIT LEFT OVER BY THE COMEAU ADMINISTRATION, ARE NOW BEHIND US. THE EMERGENCY SURGERY, WHICH IS ALWAYS SO CONTENTIOUS IN THE LEGISLATURE, IS BEHIND US. SO NOW WE'RE GOING INTO AN ERA WHERE THE THINGS THAT CAN BE DONE AND NEED TO BE DONE CAN BE DONE IN A BIPARTISAN WAY BECAUSE THE CONTENTIOUS PART OF ALL OF THOSE OTHER ISSUES ARE GONE. AND SO I THINK THAT, WHEN YOU HEAR PRESIDENT-ELECT BUSH SAY THAT; WHEN YOU HEAR THE GOVERNOR SAY THAT IN THE STATE OF THE STATE; WHEN YOU HEAR THE SPEAKER SAY THAT, THAT WE ARE MOVING INTO AN ERA OF MODERATION, MOVING INTO AN ERA OF BIPARTISANSHIP, BUT WE MUST DO THAT WITH THE KNOWLEDGE THAT, IN THE LEGISLATURE, YOU'RE ALWAYS WALKING A MINEFIELD.

>> Gary: LET ME SAY THAT, BEING IN THE MEDIA, I AM NOT CYNICAL, BUT I AM SKEPTICAL (chuckling) AND I THINK THERE'S A BIG DIFFERENCE BETWEEN THE TWO. AFTER COVERING ALBANY FOR SO LONG AND COVERING POLITICS FOR SO LONG, I'M LOOKING AT THIS LEGISLATIVE SESSION AND SAYING, UNDERNEATH ALL OF THIS TALK, REAPPORTION IT, WHERE THE MAJORITIES IN BOTH HOUSES ARE GOING TO SIT DOWN AND DRAW THE DISTRICTS WHICH YOU GENTLEMEN WILL RUN IN, AND THERE'S GOING TO BE AN ENORMOUS BATTLE BECAUSE YOU'RE PROTECTING THE MAJORITIES OF BOTH HOUSES, NOT TO MENTION THE CONGRESS ISSUES. BUT, FOR EXAMPLE, YOU TWO GENTLEMEN MAY END UP IN THE SAME DISTRICT AND YOU MAY HAVE TO RUN AGAINST EACH OTHER, SO HOW DO YOU WORK TOGETHER WHEN YOUR SITUATION IS BEING REPRODUCED ACROSS THE STATE?

>> WELL, I THINK PART OF IT IS, I THINK JIM AND I WOULD PROBABLY AGREE. WHEN YOU LOOK AT THE CONSTITUENT BASE; YOU LOOK AT THE PEOPLE YOU REPRESENT. THAT'S WHERE OUR FEALTY HAS TO BE. AND WE LOOK AT -- I THINK JIM IS RIGHT WHEN HE SAYS WE DID REAL TOUGH SURGERY IN A PERIOD COMING OUT OF THE RECESSION, AND WE WERE ACTUALLY BLESSED, AND WE GOT THE BEST OF ALL POSSIBLE WORLDS. WE HAD ENOUGH INCOME COMING IN THROUGH, OUR STATE TAX RECEIPTS, SO WE COULD BOTH CUT TAXES AND RAISE MONEY FOR NEW PROGRAMS. WE PUT A FAMILY HEALTH PLUS PROGRAM IN PLACE. WE PUT AN EPIC ADJUSTMENT, WHICH IS GOING TO COST 3 OR $400 MILLION. WE WERE ABLE, BECAUSE OF A BOOMING ECONOMY, TO DO THOSE THINGS. TO THAT EXTENT, I AGREE WITH JIM. I THINK A LOT OF THE VERY CONTENTIOUS ISSUES, THE VERY IDEOLOGICAL ISSUES THAT DREW THE PARTIES APART, HAVE NOW BEEN RESOLVED OR AT LEAST MOVED FORWARD. SO NOW WE'VE GOT DEMOCRATS AND REPUBLICANS IN THE MIDDLE WHO ARE GOING TO FIGHT FOR THIS VERY SMALL PART OF THE MIDDLE. I THINK THAT'S WHAT THE PRESIDENTIAL RACE WAS ABOUT.

>> Gary: WELL, AND THERE'S GOING TO BE FEWER UPSTATE LAWMAKERS. THERE'S A SHIFT IN POPULATION FROM UPSTATE TO THE CITY. THERE COULD BE FEWER OF YOU AND, YOU KNOW, WITH LITTLE -- A LARGER DISTRICT, AND AGAIN REALISTICALLY, HOW DIFFICULT IS IT GOING TO BE TO TALK ABOUT BIPARTISAN AND WORKING TOGETHER WHEN YOUR VERY FUTURES, YOUR VERY SEATS ARE UP FOR GRABS?

>> I THINK IT WILL BE EASIER THAN YOU MIGHT EXPECT. AND THE REASON FOR THAT IS THAT THIS IS GOING TO BE A TWO-YEAR PROCESS. IN FACT THE GOVERNOR MENTIONED THAT HIMSELF, AND IT'S NOT GOING TO HAPPEN IMMEDIATELY. THERE WILL BE A LOT OF SHIFTING AND RESHIFTING. THE MAJORITIES OF BOTH HOUSES WILL CONTROL THAT PROCESS TO SOME EXTENT, AND I THINK THAT THAT IS A REALITY THAT WON'T GO AWAY; BUT WHEN YOU LOOK AT OUR REGION HERE, THERE MAY BE SOME SUBTLE CHANGES, BUT I THINK YOU'RE CORRECT IN SAYING THAT THE BIG CHANGES WILL HAPPEN DOWN STATE WHERE THEY'LL HAVE TO ADD PERHAPS A FEW SEATS IN THE STATE SENATE AND MAYBE IN THE ASSEMBLY BECAUSE OF THE POPULATION GROWTH THERE. IN THE WESTERN PART OF THE STATE HERE, BUFFALO AREA, THEY'VE LOST ABOUT 50,000 PEOPLE OR SO. SO THERE WILL BE A VACUUM THERE. WILL THE VACUUM TRANSFER TO -- IN OUR DIRECTION TO MONROE COUNTY? I DON'T THINK SO. I THINK WHAT WILL HAPPEN IS THEY MAY LOSE A SEAT THERE THAT WILL GROW SOMEPLACE DOWN STATE.

>> Gary: SENATOR, I THINK YOU HAVE JUST HAD OUR LAST WORD. I WANT TO SAY THAT'S OUR TIME FOR THIS PROGRAM. IT WENT BY VERY QUICKLY. I HOPE TO HAVE YOU GENTLEMEN BACK AGAIN TO TALK ABOUT MORE AS THE LEGISLATIVE SESSION GOES ON. MY THANKS TO SENATORS JIM ALESI AND TO RICK DOLLINGER. I WANT TO SAY, IF YOU WANT TO GO TO nyelection.org, YOU CAN GET TRANSCRIPTS OF THE GOVERNOR'S SPEECH AND TRANSCRIPTS OF SHELDON SILVER'S REMARKS YESTERDAY. ALSO IF YOU WANT TO COMMENT ON THIS PROGRAM CALL US 258-0250, OR YOU CAN GO TO wxxi.org, AND CLICK ON "COMMUNITY" AND THEN ON "NEED TO KNOW." WE'LL HAVE A TRANSCRIPT OF THIS PROGRAM AVAILABLE FOR YOU IN A FEW DAYS AS WELL. THAT'S OUR SHOW TONIGHT, AND SEE YOU NEXT WEEK. THANKS.

(Music)

BACK