May 22, 1992

The Republican majority in the New Jersey Legislature overrode Gov. Jim Florio's veto today and made good on their promise to cut the penny from the state sales tax that the Democrats put there two years ago. The Republicans said they were acting to protect the taxpayers and spur the economy in reducing the sales tax to 6 cents a dollar from 7 and producing the largest tax cut in New Jersey history, $608 million in next year's budget.

President Bush's chief economist said today that because of recent signs of an economic pickup, the White House would soon raise its forecast for economic growth for this year. Michael J. Boskin, chairman of the President's Council of Economic Advisers, said that lower interest rates and increases in business and consumer confidence were among the reasons that the Administration would revise upward the growth forecast of 2.2 percent it made in January.

From the state that brought you Jane Fonda, water bars and brown rice risotto comes a new, potentially alarming trend: the stump-free campaign. California has a primary election coming up in less than two weeks, and a historic one at that, with two open United States Senate seats. But you wouldn't know it from following many of the candidates around. They don't hold campaign rallies or make speeches or attend Kiwanis club luncheons. In fact, some of them don't even bother to put out campaign schedules.

Residents of the New York area with pollen allergies are in the midst of a particularly miserable spell of sneezing and watery eyes. This year's cool, wet spring has contributed to one of the highest pollen levels in years. "It's been much worse than usual this year," said Michael Pignataro, a Queens accountant and longtime allergy sufferer. "Over the weekend, my head almost exploded." Confirming the Obvious

THE ECONOMY Broad changes for the mutual fund industry, both regulatory and legislative, were proposed by the S.E.C. If fully adopted, they would represent the most sweeping changes in the fund marketplace in more than 50 years. [ Page A1. ] The White House will soon raise its forecast for economic growth as a result of recent signs of an economic pickup, said Michael Boskin, Bush's chief economist. [ D1. ]