December 27, 1997

Class-action suit brought by 3,500 parents in Denver, Colo, underscores depth of support among black and Hispanic parents nationwide for publicly-financed vouchers to send children to private and public schools; although court challenges are legion, voucher proposals are being prepared in about half the states; of the handful that have been established, two largest are in Milwaukee in Cleveland, both of which serve largely black and Hispanic population; photo (M) serve largely black and Hispanic chil

Almost three years ago, Gov. John G. Rowland proposed what was to be the centerpiece of his efforts to rein in the cost of caring for the state's elderly people: a managed-care system that would cover everything from nursing home care to home visits by a cook. Now, months after the proposal was scheduled to be completed and with the state budget counting on saving $55 million with the program in its next fiscal year, Governor Rowland says the plan is virtually dead. Recent announcements from some managed-care programs about reduced benefits and higher premiums washed away enthusiasm for the plan, he said.

There had been a report of gunfire crackling from a rooftop, and the police had swarmed to the Glenwood Houses in Canarsie, Brooklyn. Guns were drawn, including that of Officer Michael J. Davitt, 36, who in 14 years on the force had fired eight times, shot two people and been sent down twice for weapons retraining. Danger swirled in the wintry air. All at once, William J. Whitfield, 22, who was wanted on minor assault and marijuana charges but who was not armed and apparently had had nothing to do with any shooting in the area, came out to find a pay phone and arrange to take his fiancee and their children to his mother's home for Christmas dinner.

Analysts say creation of common European currency over year from now will set stage for wave of consolidations in banking and industry over much of Continent; note acquisitions and other financial transactions will be undertaken free of European exchange-rate risks; monetary union is likely to push interest rates generally lower; while monetary union is expected to bolster region's economies, business casualties are likely as well; imposition of one currency will remove need for foreign-exchange dealers, and will deprive banks across Europe of $5 billion in commissions and trading profits in next five years; big unanswered question is how euro will fare against dollar (M)

Erskine B Bowles, Pres Clinton's chief of staff, has made no secret of his desire to leave the Administration early next year, leading to speculation over who might replace him and what shuffling of power might result; photo (M)

Sale to Marsh & McLennan Cos has driven wedge through clubby firm of Johnson & Higgins, with its cloistered partnership structure; retired directors, who maintained financial interest and voice in business, say they have been cheated out of their fair share of $1.8 billion selling price by acting directors who negotiated sale; contend that effort they put in over several decades helped make company such a rich prize and far exceeded accomplishments of some active directors; say firm's culture was grounded in understanding that incumbent directors would treat retired partners in same manner as they would treat themselves in event of sale; active directors argue that retired directors were treated fairly (M)

They came to 112th Street and Broadway yesterday to mourn the passing of a great icon of the 90's, to have their picture taken in front of the famous orange and blue neon Tom's Restaurant sign and perchance to see if the tuna salad really did have a hint of lemon in it. Fans of ''Seinfeld,'' the most popular television comedy series of the decade, were stunned at the news that Jerry Seinfeld had decided to stop producing his idiosyncratic homage to single life in the city at the end of this season. So they did what Jerry and his pals, Elaine, George and Kramer, would do in similar straits: they went to the coffee shop.

Pres-elect Kim Dae Jung of South Korea meets with nation's top labor leaders to try to persuade them to accept increasingly grim economic reality; nation's intensely militant labor force is not expected to react favorably to any fundamental shift in labor practices, like abandoning virtually sacrosanct job security; Kim had pledged during his presidential campaign not to allow corporate layoffs; he now says that if layoffs have to come in financial sector, only later will they come to manufacturing industries; one labor leader warns of grave difficulties if workers are dismissed unfairly or precipitously; graph (M)

Playoff football tends to simplify the game. The most embryonic play, when the quarterback hands the football to a running back, becomes the most essential one. So it will be at Giants Stadium Saturday, when the Giants and the Minnesota Vikings kick off the National Football League playoffs. For all the talk of Randall Cunningham and the Vikings' vaunted receiving corps, for all the talk of how the Giants' Danny Kanell will respond in his first playoff game, the Giants-Vikings game should come down to which side runs the football most effectively.

Decision by Federal Judge Stewart B Balzell overturning conviction of Lisa Michelle Lambert for 1991 murder of Laurie Shaw and, in unprecedented act, barring Pennsylvania from retrying her, has vaulted the case into contentious national debate over how active a role Federal judges may take in state matters; supporters of ruling say it is rare, shining example of the Federal court exercising its traditional authority as a last refuge against a rogue state prosecution; detractors say it is Federal overreaching at its most extreme, and have mounted campaign that is extraordinary even at a time of widespread criticism of the Federal judiciary; Dalzell's impeachment is sought, as well as legislation that would strip Federal judges of the power to ban many state retrials; photos (L)

Echoes of a Police Shooting There were cries of outrage and calls for patience yesterday as the authorities investigated why a New York City police officer had fatally shot an unarmed man. Page B1. Egypt Squeezes Farmers Since the time of Nasser's land reforms, poor farmers have eked out a living on cheap land along the Nile. But now rents are rising, and farmers are protesting. Page A6.

South Korea's plummeting stock market and currency have made its companies potential takeover targets for foreign corporations, just as International Monetary Fund's economic rescue is forcing nation to open up to foreign investments; most of country's family-owned conglomerates are either bankrupt or reeling under heavy debt, forcing fire sales of assets that took generations to acquire; chart (M)