In the 1983-1984 school year, postsecondary-level proprietary vocational schools served 160,000 students in the State of New York. About 30 percent of the students received public assistance before enrolling and 68,000 students completed a wide array of programs; according to state data, most found employment related to their training. As private for-profit businesses, New York proprietary schools contributed to the state's economy by employing 7,700 people and creating more than 15,000 private sector jobs (through a multilayer effect). School expenditures generated almost $1 billion of private sector sales in the state and $341 million in personal income. Proprietary schools were found to respond quickly to shifts in employer and student demand. However, proprietary school students lack equal access to important sources of both federal and state financial assistance. Despite the proven effectiveness of New York's proprietary schools and benefits to the state's economy, state and federal regulations were found to impose significant costs on them. It was therefore recommended that New York (1) integrate its proprietary schools more completely into its postsecondary education system, (2) streamline regulations governing proprietary schools and make them equally applicable to public and private schools, and (3) educate policymakers as to the economic impact of proprietary schools. (MN)