December 14, 1990

The New York State Legislature reached agreement this morning on the largest package of mid-year spending cuts in the state's history, officials said. The plan, intended to close a $1 billion budget deficit, also authorizes the state's public universities to raise tuition by up to $300 a year, which would be the first such increase since 1983.

In an unexpected move that embarrassed the White House and underscored the chaotic state of the Republican Party, William J. Bennett announced today that he had changed his mind about becoming chairman of the Republican National Committee. In a letter to President Bush today, Mr. Bennett said he had determined, "with the deepest reluctance," not to take the job, because he was afraid his need to make additional outside income through books and speeches might create an appearance of impropriety.

The New Jersey Supreme Court ruled yesterday that municipalities may charge fees to developers to pay for affordable housing programs mandated by the state. Seventy-five towns in New Jersey have adopted ordinances requiring such fees to help pay for housing programs satisfying the state court's series of Mount Laurel rulings, which require all municipalities to provide housing opportunities for low- and moderate-income families.

The Economy The F.C.C. proposed new cable TV rules that would give communities more power to limit prices for local service. If enacted, the rules could give local governments a powerful new weapon in blocking rate increases. [ Page A1. ] Retail sales fell 0.1 percent in November, the Commerce Department said, as consumers pinched spending at the start of the key Christmas selling season. [ D1. ] The Treasury's $1 billion-plus in Bank of New England deposits are being looked into by the Senate Banking Committee and the G.A.O. [ D1. ] Losses at surviving S.&L.'s more than doubled in the third quarter, despite a crash program to close failed institutions. [ D5. ] Sales of U.S.-made vehicles picked up modestly in early December, prodded by record rebates and deliveries to rental fleets. But wary buyers kept retail demand soft. [ D6. ] Representatives of communications companies were grim when they spoke at the Paine Webber Media Forum. [ D9. ] California is moving to control the everyday tools of modern American living: gasoline-powered lawn mowers, leaf blowers, hedge trimmers, snow blowers and chain saws. [ A1. ] Improving automobile gas mileage would help the global environment, a new study says, but any gains would be more than wiped out by the rising number of automobiles on the road. [ A30. ] Companies Disney and the Henson family called off Disney's planned acquisition of Henson Associates." [ D1. ] Motorola will produce its next generation of memory chips in a Japanese factory as part of a venture with Toshiba. [ D1. ] Waterford Wedgwood announced that its crystal and ceramic operations would operate independently from now on. [ D1. ] Copyrights for Ashton-Tate's dBase line are invalid because of inequitable conduct, a judge ruled. [ D8. ] Germany's largest electric utility, RWE, agreed to pay $590 million for Vista Chemical. [ D5. ] Violence linked to the Daily News strike was cited in a $30 million class action suit filed by two newsstand dealers. [ B3. ] International The international community swung behind Bush's plan to help revamp the Soviet economy, but the U.S. continued to insist that Moscow make profound changes before it gets any money. [ A1. ] Bush's proposal on agricultural loans received a less-than-enthusiastic response in the farm community. [ A10. ] The collapse of global trade talks in Brussels in a dispute over farm subsidies does not mean the negotiators are finished. [ D2. ] Markets Oil prices rallied as traders renewed their focus on the possibility of war. Crude rose $1.07, to $26.42. [ D2. ] Stocks finished with a modest decline despite jitters over Mideast peace talks. The Dow ended at 2,614.36, down 7.92. [ D10. ] Treasury notes and bonds fell and interest rates rose on strong economic reports and a rise in oil prices. [ D18. ] Silver traded below $4 an ounce, hitting its lowest level in 14 years. [ D19. ] The dollar firmed slightly. [ D19. ] Today's Columns The politics and economics of oil have been complicated by another problem -- the threat to the environment and human life. Leonard Silk: Economic Scene. [ D2. ] D'arcy Masius Benton & Bowles is expected to announce the creation of an Asian agency network. Kim Foltz: Advertising. [ D9. ] The S.E.C. expanded its crackdown against penny-stock fraud in new civil complaints. Market Place. [ D10. ]

In a separation that could either save a four-year marriage or set the stage for dissolution, Waterford Wedgwood P.L.C., the troubled Irish maker of fine tableware, announced today that its crystal and ceramic operations would operate independently from now on. "Waterford Wedgwood will be very much a holding company now, instead of an operational company," said Robert Davies, its chief financial officer. Mr. Davies, who is heading the reorganization, has also been named acting chief executive of the Wedgwood operations.