January 25, 2000

Gov Christine Todd Whitman, saying New Jersey's sustained economic boom and state's mounting surpluses has created an 'unprecedented opportunity,' proposes her most generous budget yet, $21.2 billion plan that increases spending by $1.3 billion for host of new programs, tax cuts and ambitious school and highway construction projects; Whitman also proposes two-year suspension of employees' contribution to unemployment insurance; other proposals outlined (M)

Republican presidential frontrunner Gov George W Bush and Democratic rival Vice Pres Al Gore are clear victors in Iowa presidential caucuses, with voters for first time affirming their positions as frontrunners for parties' nominations; Gore outpolls former Sen Bill Bradley 63 percent to 35 percent; Bush wins 43 percent of vote, with publisher Steve Forbes finishing strong second with 30 percent; Alan Keyes finishes third with 14 percent, outpacing Gary L Bauer who tallied 9 percent; Sen John S McCain, whose campaign skipped Iowa, wins 5 percent and Sen Orrin Hatch finishes last with 1 percent; Bush basks in 'record-shattering victory;' Gore thanks voters, but concedes he faces stiffer competition in New Hampshire; Bradley concedes loss; congratulates Gore; says he is gearing up for hard-fought battle in New Hampshire; comments by other Republican candidates noted; photos (M)

P.& G. Ends Merger Talks Procter & Gamble, the consumer products giant, ended merger talks with Warner-Lambert and American Home Products after investors expressed sharp disapproval by selling shares of P.& G. PAGE C1

Anna Kisselgoff reviews New York City Ballet performance of Twyla Tharp's new work, The Beethoven Seventh, at New York State Theater; photo (M)

Al Groh is named coach by New York Jets; Bill Parcells says that he will remain with team as director of football operations but will reassess future in few months; photo (M)