Recommendations concerning important federal statutory revisions, budget and appropriations items, and regulatory issues are offered in this booklet. Issues discussed are of particular concern to New York State. Recommendations include the following: (1) on the postsecondary level, federal and state programs serving the same students should be integrated into coherent plans, state and federal funds for students with special needs should be coordinated, and tax deferment accounts and tuition tax credits should be targeted for students with special needs; (2) issues of institutional integrity and program quality must be given careful legislative attention by adjusting institutional eligibility requirements for federal programs; (3) federal programs for the education of the handicapped need more flexibility and resources; (4) unemployment and underemployment of youth are urgent issues requiring comprehensive and long-range federal programs and federal, state, and local priorities linking education and employment; and (5) the federal role in child health and nutrition must be expanded to include preventive health care through the schools, and health professions legislation requires further review and extension. (Author/JM)