Inside story:
The system
at work...

For a closer look at the power of Albany insiders, read
'A Case Study
in Failure,'

Jay Gallagher's analysis of efforts to reform the Medicaid prescription-drug program in the state.

Insiders rule, New Yorkers suffer (conclusion)

Insiders pay to play
Bruno said the Senate wanted to change many of the laws that drive up insurance costs for businesses. But "the Assembly won't touch it," he said.

Silver, himself a trial lawyer, said the Assembly didn't make the changes because he wasn't convinced they were in the best interests of the people because they might have diminished protections for consumers. But Silver spokeswoman Eileen Larrabee said the Assembly rejected Pataki bills that would have weakened the state's Empire Zone program and another that would have increased taxes on insurance companies. And changes still could happen, she said.

The pro-business bills that passed "don't mean we did everything," Larrabee said. "More needs to be done.''

The business leaders say the political clout of lawyers and a health-care workers' union largely account for the Legislature's failure to act on issues like making it harder to sue employers and trimming Medicaid spending.

"It's those that pay that get to play,'' said Alesse, the small-business lobbyist.

"It gives the appearance that they have turned the process over to special interests,'' said Daniel Walsh, the head of the state's largest business lobby, the Business Council of New York State.

The state Trial Lawyers' Association spent more than $1.4 million — fifth- highest of any group — trying to influence state government last year through lobbying expenses and campaign donations, according to a new report from the New York Public Interest Research Group, a watchdog organization

The health-care workers' union that the business leaders decry, Local 1199 of the Service Employees International Union, ranked seventh, spending $1.276 million.

Walsh's group, the Business Council, ranked 11th , spending just over $783,000 on lobbying and campaign donations last year.

But that report overstates the financial power of the trial lawyers, since there are numerous groups on the other side of the issue, said Chris Goeken of the state Trial Lawyers' Association.

And Jennifer Cunningham, of the 237,000-member Local 1199, said the union makes the state's health-care system stronger, which is an asset to the state's economy.

"Since the health-care industry is such a fundamental underpinning of the economy, as well as a service that people need, it is highly irresponsible for the state to consider dismantling its health-care infrastructure to balance its books,'' she said.

One reason for the success of the trial lawyers and the health-care union at the Capitol is they're normally trying to prevent bills from passing, rather than pushing for any new measures.

"It's easier to play defense than offense,'' said NYPIRG's Blair Horner. "To play defense, all you have to do is get one of the three major entities to agree with you (the governor, Assembly or Senate), and you win'' since any of the three can block passage of any bill. All three have to agree before anything new can be adopted.

Nate Wright, a 40-year-old food-preparation worker at St. Luke's Hospital in Utica, is trying to play offense in a different way — to advance to a job that pays enough for him to support his five children. He made $13.50 an hour before being laid off two years ago from the Utica Boiler Co. He makes $7.50 an hour now.

"I'm definitely trying to get something that pays more,'' he said, with words that could be echoed by thousands of New Yorkers. "I need something better.''