When it comes to education, the Campaign for Fiscal Equity lawsuit is New York’s proverbial elephant in the room. Middle-class and aspiring middle-class families in the state’s under-resourced school districts will benefit when the state meets its obligation under the 2003 Court of Appeals decision to provide school funding sufficient for a “sound basic education,” including a “meaningful high school education” to all New York’s children. The state legislature can end the delay in complying with the court order by passing the Schools for New York’s Future Act (A 8700) sponsored in 2005 by former Assemblyman Steve Sanders, or similar legislation that would bring state funding into line with student needs throughout the state.

New York’s system of early childhood education also faces a severe shortage of resources. In 1997, New York aimed to create a voluntary, universal prekindergarten system, giving every four-year-old in the state an opportunity to attend preschool. With recent studies suggesting that each public dollar invested in preschool education saves taxpayers up to $13.00 in the future—a return higher than many of the state’s economic development programs—this project is more relevant than ever. Yet budget constraints have limited access to only one in four of the state’s preschool-aged children. Making good on the vision of universal preschool for all children should be a priority for legislators concerned with strengthening and expanding New York’s middle class.

Governor Pataki’s proposed SUNY and CUNY tuition increases for 2006-2007 would make college education less accessible to New York students and their families. The governor’s plan to make future annual tuition increases automatic would compound the problem, while his proposals to reduce Tuition Assistance Program grants to students taking fewer than 15 credits per semester would set new hurdles in the path of students struggling to balance work, family obligations and study. The legislature should reject these measures, which seek short-term savings at the cost of a less educated citizenry and workforce. On the other hand, Governor Pataki’s proposal to provide free tuition at public universities for students who agree to teach math and science in the state’s public schools is a practical response to the shortage of teachers in these subjects.

A number of proposals to make health care more affordable and accessible to poor and middle-class New Yorkers are on the agenda in 2006. Assemblyman Pete Grannis’ bill to enable the Insurance Superintendent to more closely regulate health insurance rates for individuals and small businesses, would rein in costs for the New Yorkers who currently pay the most exorbitant premiums. It should be passed by the Senate. Senators should also approve A 6199, sponsored by Assemblyman Richard Gottfried, which would make state health care dollars go further in a sophisticated plan to expand coverage for low-income workers who cannot afford to participate in the health care plans their employers offer. A third bill, complementary to the first two, was recently introduced by Senator Diane Savino. The Health Care Responsibility Act (S 6472) would require large retail employers to pay a minimum amount to provide their employees with health coverage. In the absence of this legislation, employees are uninsured or use public health programs like Medicaid and Healthy NY, leaving taxpayers to subsidize irresponsible corporate practices. A more expansive version of this legislation is being promoted by the Working Families Party, although it has not yet been introduced in the legislature. While all of these piecemeal bills would be positive, legislators should also seek out more comprehensive approaches to making sure all New Yorkers get the medical care they need.

Finally, state efforts to crack down on doctors, pharmacies and clinics that defraud the state out of billions of dollars in Medicaid funds are a clear health care priority for 2006. While Governor Pataki’s proposal to put more resources into identifying fraud is significant, the Attorney General’s office also needs enhanced investigative powers to prosecute Medicaid fraud. In addition, the state’s attempts to uncover fraud would be greatly reinforced by a False Claims Act. Modeled on the federal False Claims Act and successful examples in 14 states, such legislation would provide financial incentives for whistleblowers to come forward with cases of fraud and would impose civil penalties and damages on wrongdoers to deter fraud in the first place. Worthwhile False Claims Act legislation has been proposed by Senators Hugh Farley and John DeFrancisco and by Assemblyman Richard Brodsky.

Long Island Workforce Housing Incentive Program Act (A 2050) sponsored by Assemblyman Thomas DiNapoli passed the Assembly but died in the Senate in 2005. In 2006, both chambers will again have an opportunity to pass the bill, spurring the construction of housing affordable to middle-class workers and their families in one of the state’s most exorbitant housing markets. For New York City, another area of the state that is becoming dangerously unaffordable, the year’s biggest state housing issue may be enabling the city to enact rent regulations on its own that are more protective than those available under state law. The failure of the state legislature to strengthen tenant protections in 2003 suggests that this type of local control would better serve the city’s middle-class and aspiring middle-class renters.

Tax cuts for those who need it least are the hallmark of Governor Pataki’s 2006 budget proposal, with the majority of benefits heaped on those earning more than $100,000 a year. Eliminating or reducing New York’s estate tax, for example, would mean those lucky enough to inherit a windfall have less responsibility to contribute to state revenues than New Yorkers who work for a living. By the same token, phasing out the state’s alternative minimum tax for businesses would enable the state’s most profitable corporations to avoid paying their share of taxes.

In Governor Pataki’s budget proposal even the more modest tax breaks that could benefit the middle class are laden with perverse incentives: one proposed tax cut would reward homeowners with a $400 rebate if they live in a school district that has decided not to increase its investment in children’s education. In other words, Governor Pataki proposes that New York pay more to educate the state’s children less. Legislators should reject such upside-down priorities, instead of eliminating regressive levies like the tax on clothing worth less than $110. Meanwhile, in 2006, the state’s decision last year to take over a share of local Medicaid costs should help municipalities to provide a much-needed break in property taxes for middle-class homeowners.

Many of the same workplace issues considered, but not resolved, over the past five years will once again be on the table in 2006. Workers compensation and disability insurance benefits continue to be too low to enable injured workers to recover without substantial economic hardship to their families. Senator Eric Schneiderman’s bill to increase these benefits (S 1967) provides an important remedy and deserves to become law. The Families in the Workplace Act (A 1301), Assemblywoman Catherine Nolan’s plan to use the disability benefits system to offer paid family leave, would substantially improve the lives of middle-class New Yorkers and their families who currently cannot afford to take time off when they or their children become ill. To minimize employers’ insurance costs as a result of this program, the legislature should also direct the State Insurance Department to conduct an in-depth inquiry, including public hearings, on whether current rates for workers’ compensation and disability insurance are warranted.

Legislators should also resist calls to erode significant workplace protections. Assemblyman Joseph Morelle’s bill (A 2946A) to weaken the scaffolding law, reducing employers’ legal liability for construction accidents that occur on their worksites, would be particularly detrimental to workplace safety and should be opposed.

The dismal record of New York’s many job creation and business incentive programs must be improved to stem the continuing tide of jobs flowing out of state. Assemblyman Richard Brodsky’s State Financial Incentive Protection Act which passed the Assembly in 2004 but died in the Senate, has been reintroduced this session as A 1213. The bill, which would help to ensure that the state’s existing job creation incentives actually produce the intended results, is more sensible than proposals like Senator James Alesi’s bill (S 3052) to create entirely new incentive programs without improving accountability for the multitude that already exist.

The high cost of insurance in New York State is among the most important but least discussed issues affecting the middle class. One bill that would address the problem is A 4029/S 6710. Sponsored by Eric Schneiderman in the Senate and Pete Grannis in the Assembly, the legislation provides policyholders with a remedy when their insurance companies deny or underestimate payment on a legitimate claim in bad faith. While policyholders can currently sue the companies to get their claims paid in full, this bill would also impose punitive damages on the companies to deter intentional denials of payment.

Another deserving consumer bill is Senator Liz Krueger’s Refund Anticipation Loan Act (S 3618A) which would rein in the abusive practices of tax preparers who offer “advances” on a customer’s expected IRS tax refund that are really loans with high fees and exorbitant interest rates. In addition to disclosure requirements, the bill would ban loans against New York State tax refunds, limit fees for all refund loans and allow customers to sue their lenders for damages and attorneys’ fees if the lender violates the Act.