Politics on the Hudson

Gov. David Paterson, Senate Democratic Leader John Sampson, D-Brooklyn, and Assembly Speaker Sheldon Silver, D-Manhattan, announced today that they have approved the state Division of Lottery’s recommendation to authorize Genting New York to develop and operate a video-lottery terminal facility at Aqueduct Racetrack in Queens. The offices of attorney general and state comptroller have to review and approve the plan before Genting can move forward.

“Genting emerged as the winner of a highly competitive process that saw potential bidders narrowed from an original pool of seven down to one,” Paterson said in a statement.

Genting has offered to pay $380 million as an up-front licensing fee, money that will help the state during troubled economic times. The VLT facility will generate an estimated $300 million a year for Lottery Aid-to-Education statewide, state officials said. During the construction phase, Genting will employ 1,300 jobs, and it will hire 800 employees to operate the facility. The company will donate 1 percent of net profits to the Queens community.

Three companies submitted proposals for Aqueduct in late June. The Lottery disqualified two of them last month because of problems with their proposals. On Aug. 3, the Lottery Division recommended the state choose Genting.

“We’re proud to be a part of this process carried out in such a businesslike and transparent manner, to award the contract to a company that promises to deliver much-needed economic development to the community along with a premier entertainment destination,” Lottery Director Gordon Medenica said in a statement. “Genting’s plan will support the Lottery’s mission to contribute to education for decades to come.”

Assembly Speaker Sheldon Silver, D-Manhattan, emphasized on Talk 1300 AM radio today that his chamber has already passed all the budget bills. The Senate has not, “and we’re here to see what we could do to help to make sure that the Senate can get that bill done.”

The one piece of legislation the Senate didn’t pass before leaving town for the July 4th weekend was the revenue bill. A number of members of the Democratic majority in the Senate want it to include the Higher Education Empowerment and Innovation Act, or at least a part of it that would allow the State University of New York to set tuition rates without legislative approval. Silver and the Assembly are strongly opposed to giving the authority to set tuition, saying that could price poor students out of public colleges and universities. Now a faction of the Senate is against giving tuition-setting authority for the same reason.

When asked on Talk 1300 whether the Assembly was willing to move on SUNY and some other issues, Silver said. “In order for them to do the one bill, they now need some modifications of some other things. I am willing to work with them in order to do something to make it easier for them to pass,” he said.

Regarding the governor’s threats to call special sessions every day, the speaker said he is focused on getting an agreement in the next few days and ”I think that’s something that’s off to the future, maybe that’s a threat with the Senate. He’s done it with the Senate before. Again, the Assembly has acted.”

Silver said he hopes senators get that “the governor is serious and I’m serious about finally putting this budget to rest. It is long overdue.”

Silver noted that not every member of the Senate Democrats (who hold 32 seats to the GOP’s 29) wants the SUNY legislation passed. Until now, “tuition has gone up and it’s been used for budget relief for the state, not to provide opportunity at those schools, not to make more classes, not to make more permanent professors. That’s what the problem is with this program, and to put the cost of the university education out of the reach of New Yorkers is something we do not want to do,” he said.

The speaker said legislative leaders and the governor’s administration are close to an agreement on a contingency plan for Medicaid money. ”We are prepared to take some action on it. Obviously to forestall any final decision, but still put in place a method by which if we don’t get the money that we will automatically be able to know where we’re cutting the budget, by how much,” he said.

New York Uprising, founded by former New York City Mayor Ed Koch, is asking candidates for the U.S. House of Representatives, state offices and the Senate and Assembly to pledge they will support non-partisan redistricting, strengthening ethics laws and reforming the budget process. Those who don’t sign up before Wednesday will be listed on the group’s website as “enemies of reform.”

“The Legislature’s a disgrace and to say they’re dysfunctional is to be moderate in your approach,” Koch said today. “They embarrass every New Yorker.”

So far, some 57 lawmakers and about 100 challengers have signed and returned pledges. All the candidates for governor are on board, but the Democratic leaders of the Legislature – Assembly Speaker Sheldon Silver, D-Manhattan, and Senate Democratic Leader John Sampson, D-Brooklyn – had not turned in their pledges as of Friday, Koch said.

Assembly Minority Leader Brian Kolb, R-Canandaigua, Ontario County, has signed the pledge and Senate Republican Leader Dean Skelos, R-Nassau County, has not, according to New York Uprising’s Web page.

Koch said Silver has said he does not sign pledges, and the group has told him it would accept a letter stating that he would seek to implement the reform legislation.

Silver spokeswoman Sisa Moyo said the speaker has a strong record on reform. “He was one of the original sponsors on public financing of campaigns and has passed legislation to deal with long-term fiscal reform and looks forward to continued dialogues on all of these issues,” she said.

Sampson spokesman Austin Shafran did not answer the question directly as to whether the senator would sign the pledge. He said Sampson has asked people not to “overlook what we have accomplished because of what we have not finished.” Democrats took control of the senate in 2009 for the first time in more than 40 years and have improved access and transparency and made a number of other changes, Shafran said.

“We promise to be more fair and open than the former majority. We will use the coalition’s of compact, low-deviation districts that adhere to city, town and county lines as our guide. Most importantly, we will put the people above politics and that’s something that has not been done in Albany in decades,” Shafran said.

(Low-deviation districts means minimal difference in the ideal population and actual population in districts.)

As for pledges, Shafran said, those are what Sampson makes to his constituents and the people of the state.

Emotions are running a bit high these days at the Capitol as lawmakers struggle to finish the state budget.

Sen. Ruben Diaz, D-Bronx and Sen. Kevin Parker, D-Queens, had a dust up on the floor of the Senate late Tuesday afternoon following a vote on a bill that would send youthful offenders to Office of Child and Family Services detention facilities after it was determined there were no other alternatives.

Diaz and Sen. Carl Kruger, D-Brooklyn, were set to vote against the measure, which would have failed without their votes, but the bill was pulled.

Parker, who isn’t shy about expressing his opinions, offered some colorful language in response to Diaz’s no vote.

According to Diaz’s account, Parker swore at him in anger.

“Senator Parker was saying eff this, eff that,” Diaz said. “In front of the ladies. It’s uncalled for. If I want to vote no on something nobody is going to tell me to eff me. What are we, babies?”

Parker doesn’t deny the encounter took place, but claims it was a private conversation.

In a statement, Diaz disputes that.

“Senator Kevin Parker’s use of obscene language directed toward me did not take place ‘member to member’ as he claimed,” Diaz said. “It happened in the Senate Chambers, publicly in full view of other Senators and several Senate staff.

Diaz, speaking on the floor immediately after the exchange, asked that Parker be reprimanded for using the language. So far, he has not been formally censured.

The bill in dispute was voted on again later Tuesday evening and passed with Diaz’s vote, 32-29.

It’s become a common sight to see the Senate pass measures on party lines.

That was the case today when lawmakers in that house approved tax increases for tobacco products, cigarettes and a plan to collect taxes from American-Indian reservations. The measure was backed 32-29, with all Republicans voting no. Sen. Tom Morahan, R-New City, Rockland County, was not present.

In the Assembly, where Democrats hold a huge advantage over Republicans, the bill was also approved, but by a relatively narrow margin: 77-64.

Lawmakers were hesitant to approve a tax increase, even if it was one on cigarettes.

“None of us want taxes, but you you have to make sure government stays open,” said Sen. Andrea Stewart-Cousins, D-Yonkers.

Senate Republicans knocked the passage of the tax increase, saying it was a sign that Democrats plan more taxes in the final version of the budget.

“Today we are seeing just the start of the tax increases that Democrats will resort to in order to close a $9.5 billion budget gap,” Senate Minority Leader Dean Skelos said in a statement. “With much of the budget passed, there is little left to cut but, I expect the Democrats will find a lot more to tax.”

The per-pack-tax now grows to $4.35. New York will keep its place as the highest-tax cigarette state in the nation, well ahead of border states Vermont, Connecticut, Pennsylvania and Massachusetts.

The plan comes as lawmakers try to close a $9.2 billion deficit and approve a budget, now more than two months late. The cigarette tax, which Gov. David Paterson first proposed back in January, will raise $290 million revenue. Collecting taxes on cigarettes sold to non-tribal citizens on reservations, will net $150 million, according to Paterson’s Division of Budget.

An amendment to the state constitution that would allow New York’s governor to select a lieutenant governor in the event of a vacancy has passed was approved by the Senate today.

The issue became an urgent one during the leadership crisis last year in the Senate.

After David Paterson was elevated to governor, the lieutenant governor post was vacant. And when Sens. Pedro Espada, D-Bronx, and Hiram Monserrate, D-Queens, temporarily switched to the Republican fold, the GOP took control of the body. But then Monserrate switched back, essentially creating a 30-30 break between the two parties without a lieutenant governor to break a tied vote.

“This approach clears up any confusion over the authority and position of the governor, and ensures stability and certainty for our state’s highest office in the midst of critical moments that need a sure hand,” Senate Democratic Leader John Sampson said in a statement. “Though a vacancy seldom occurs, at those times the public deserves full confidence in the process.”

Paterson appointed Richard Ravitch to the post in an attempt to break the logjam, which lawmakers challenged (the state’s highest court later ruled in the governor’s favor and upheld the appointment).

Currently, without a lieutenant governor, the president of the Senate would hold the post. Since Paterson’s been in office there have been several senators to hold the title of president and lieutenant governor, including Joe Bruno, Malcolm Smith and Pedro Espada.

A companion bill in the Assembly remains in committee. View the entire legislation here.

The New York State County Executives Association plans a telephone press conference tomorrow to urge state senators “to get back to the people’s work” and deal with “end of session priorities pending before the New York State Legislature.”

Those expected to participate include:

Andrew Spano, Westchester County Executive

Scott Vanderhoef, Rockland County Executive

and

Putnam’s Deputy County Executive John Tully

   There are just two days to go until the start of a new legislative term, and three Democratic senators from New York City have not publicly said who they will support to lead the upper chamber. Democrats won a majority of Senate seats for the first time since 1965. But members of the so-called ”Gang of Three” (originally a “Gang of Four”) have considered backing Sen. Dean Skelos, R-Nassau County, so the GOP leader would continue as head of the Senate. They forged a deal with Sen. Malcolm Smith, D-Queens, to get some prestigious leadership posts in the Senate, but that quickly fell apart. The trio’s votes are so important because the margin between Democrats and Republicans is so close (32-30).

   Sen. Ruben Diaz, D-Bronx, who is one of the three, said today that he didn’t know who he was going to support as leader. “By Wednesday, maybe I’ll know what I’m going to do,” he said.

   Sen. Carl Kruger, D-Brooklyn, and Pedro Espada, D-Bronx, could not immediately be reached for comment today.

   Smith met with Diaz, Kruger and Espada on Sunday. Democrats and Republicans are scheduled to hold conference meetings tomorrow night. The session begins Wednesday in Albany.

In an interview on Talk 1300 radio in Albany this morning, Senator-elect Pedro Espada, D-Bronx, continued to rail against Senate Minority Leader Malcolm Smith, D-Queens, after a deal to unite Democrats under Smith and take over the Senate failed this week. 

Espada said Smith “misrepresented his authority” to negotiate on behalf of Democrats and is a leader who is ”not ready for prime time.” Democrats won enough seats in November (32 to the Republican’s 30) to take over the chamber for the first time since 1965. Espada and two other New York City Democrats—Ruben Diaz and Carl Kruger—have been considering backing a GOP leader. Democrats’ slim majority gives the three dissident senators a lot of power.

But the power-sharing agreement Smith arranged with the trio proved untenable for other Democrats and ultimately the three New York City Democrats.

Espada was a bit cryptic about who he would support as majority leader.

When asked if Bronx Democrat Jeffrey Klein would, Espada said he has known Klein for many years and, “That’s an intriguing idea.” Klein, whose district covers part of Westhcester County, is Smith’s deputy majority leader and was set to become Senate deputy president pro tempore.

Espada was generous in describing current Majority Leader Dean Skelos, R-Nassau County. The trio have been talking with Skelos and other leaders about backing a Republican as majority leader.

“Dean Skelos is a person of integrity. He’s a leader that has obviously show he can hold his conference together,” Espada said, clearly contrasting Skelos and Smith.