This report to Mayor Edward Koch examines the problems facing New York, New York, and suggests long-range solutions. Information was gathered from experts from within and outside city government, invitational hearings, and commissioned studies in areas of special concern. The Commission found that the city's economy had recovered from the fiscal crisis of the 1970s. However, individual chapters report on serious problems in the following areas: (1) economic and physical development; (2) poverty and dependency; (3) education; (4) health; (5) crime; (6) housing; and (7) transportation. Conclusions include the following: (1) poverty is the city's most serious problem; (2) education must receive the highest priority as the long-term solution to poverty; (3) human services must be reorganized to combat poverty and prevent long-term dependency; (4) the physical city must be rebuilt in a manner that is beautiful as well as efficient; (5) the provision of affordable low- and moderate-income housing must receive the highest priority in rebuilding the city; (6) reorganization and accountability are required in most service areas; (7) all New Yorkers must accept responsibility for making New York a better place; (8) strategic planning is required to provide a long-term overview; and (9) all planning must take into account the diverse racial, ethnic, and religious make-up of the city. Statistical data are included on 14 graphs and tables. A list of the members of the Commission is also included. (FMW)