Democrats' Plan for Growth

For decades city Democrats have dreamed of the day when their party would control all three branches of the state government. If that happens, the city's legislative needs would no longer be held captive by a senate controlled by upstate and suburban republicans. Every day would be like Christmas. There would be the Taylor Law reform for the unions, the Urstadt Law repeal for tenants, and a reinstated commuter tax.

With a Democratic governor and assembly in place, just two Senate seats separate the dream from reality. However, three of those Republican seats are in New York City and one Republican seat straddles Queens and Nassau. As city Republicans generally vote along with city Democrats on city issues, the votes for the Democratic dream may be there now.

For years the Democratic city unions wanted The Employees Fair Employment Act of 1967, commonly referred to as the Taylor Law, repealed. A direct result of the disastrous transit workers strike of 1966, the Taylor Law fines workers one day's pay for each day on strike, gives hefty fines to the union and union officials who violate the law, gives jail time to those promoting a strike, and gives the city the right to suspend union dues. That's the stick side of the law.

The carrot part allows for the unionization of city and state workers and mandates collective bargaining on issues such as salary, benefits, and working conditions. The intent of the Taylor Law was to achieve that by encouraging negotiation. The law attempted to level the field by denying unions the right to strike. But by not imposing penalties on the city for not bargaining in good faith, all it did was to encourage the city not to negotiate. Bad faith bargaining is not a good business practice. As a result, the current Taylor Law fosters mistrust and unrest between the city and its unions.

City unions have stopped calling for Taylor Law repeal because they know it's a non-starter. They now focus on reform. They want an immediate cost-of-living adjustment to go into effect if there is no new contract and a requirement for binding arbitration if there is no substantial progress made towards a settlement within eight months. Senator Padavan of Nassau County in Queens said, "I have no problem with a Taylor Law requiring binding arbitration for both sides. City cops have it, why not all city workers?" The senator may get to put his vote where his mouth is. The city's Central Labor Council has placed Taylor Law reform high on its 2007 legislative agenda.

Tenants are another core Democratic group that has dreamed of Democratic control of the state legislature. With an estimated two-thirds of all New Yorkers renting, it is a sizable group. As a result, New York has seen some form of rent regulation dating back to Work War II. Support for rent regulation is the mantra of every Democratic politician. New York City's real estate circle knew this and in 1971 did something about it. They had the Urstadt Law passed.

The Urstadt Law is named after Governor Rockefeller's Housing Commissioner, Charles Urstadt. The law bars New York City and some other state localities from passing rent regulations that are more stringent than the state's. In effect, it makes the city's rent regulations a state issue. Left Wing housing advocates call it the "Rocky Horror Law" and have been lobbying for home rule ever since.

The current state rent regulations allow for an apartment renting at $2,000 to be deregulated upon vacancy. It also states that an occupied apartment renting at $2,000 can be deregulated if the combined family income is $175,000 for two years in a row. That's the salary of two teachers who have taught for 15 years.

With unspectacular two bedroom apartments in Harlem now renting for $1,750, it won't be long before the middle class goes the way of the buffalo and the city becomes a Disneyland for the rich. It's time to put rent regulations on an even keel. Urstadt repeal, maybe; reform of rent regulations, definitely. Without affordable housing there will be no middle class left in the city limits. That is definitely bad for business.

The last Democratic stocking stuffer is the commuter tax. It was killed back in 1999 and cost city coffers an estimated $500 million a year, which was denounced by Mayor Giuliani and the editorial boards of city papers. Hardly an onerous tax, it called for a tax of $0.45 on wages and $0.65 on self-employed income.

In real money, it meant about $450 a year to a married commuter with two children earning $100,000 in the city. With the Senate teetering on Democratic control, the push for reinstating this needed tax is a no brainer.

Politically, it may look like the Democrats hit the Trifecta at Churchill Downs if they get the Taylor Law reform, the Urstadt Law repeal, and a re-enacted commuter tax. Viewed in a corporate sense, however, it's just good business. A city work force that feels it is fairly paid and appreciated is good for business. Workers become more productive and experience less sick time.

Mr. Dunne is a retired New York City teacher and freelance writer.

Correction from May 10, 2007: A 0.45% tax on wages and a 0.65% tax on self-employed income comprised the commuter tax killed in 1999. The tax amounts were misstated in a column under the headline "Democrats' Plan for Growth" on page 9 of yesterday's New York Sun.