January 9, 1997

Saying that tax-cutting has helped reinvigorate the economies of both states, the governors of New York and Connecticut used their introductory addresses to their legislatures yesterday to urge the lawmakers to continue on that path to assure continued growth. In his Albany address, Gov. George E. Pataki promised to send the state ''roaring into the next century,'' and vowed to cut property taxes while increasing spending on schools. But Democrats reacted skeptically to his plans, expressing concern that continued tax cuts would only end up hurting education in the state.

Texaco Inc, acting on report by Michael Armstrong, Manhattan attorney hired as an outside investigator by company, dismisses David Keough, senior executive, cuts off benefits to Robert Ulrich, former company treasurer, and Richard Lundwall, former senior coordinator for personnel services in Texaco's finance department, and suspends without pay Peter Meade, manager in marketing department; report is immediately turned over to Federal prosecutors who are investigating possible obstruction of justice by company executives; Texaco declined to make report public, fearing it would interfere with criminal investigation, but documents obtained by The New York Times indicate that Armstrong found executives made statements that violated company policy and failed to report any conversations to company officials (M)

Community gardens in some of New York's poorest neighborhoods will be destroyed as Giuliani administration begins selling off its nontaxable vacant lots so that they can be developed for low- and moderate-income housing; Greenthumb, city agency that leases vacant lots to gardeners, expects to lose at least half of its 750 gardens to development over next few years; Manhattan Borough President Ruth Messinger acknowledges need to built housing, but says city is disposing of its vacant land with no regard to surrounding context or long-term development goals; photos (M)

New Jersey state officials warn members of Jersey City, NJ, City Council that they could each be fined $25 a day unless they adopt budget by Jan 30 (New Jersey Daily Briefing) (S)

New Jersey Education Comr Leo F Klagholz says state's new school financing plan will eventually allow students to attend schools outside their home districts at no cost, but not anytime soon (New Jersey Daily Briefing) (S)