May 23, 2001

Nonpartisan fiscal analysts are predicting that New Jersey's budget next year will have $1.6 billion shortfall up from $1 billion deficit they were predicting just seven weeks ago; state taxes collected in March and April declined more than 2 percent from last year and unemployment rate rose to 4.2 percent in April from 3.8 percent in March (M)

Complaints of sexual misconduct on part of teachers and other employees in New York City school system have more than doubled since three well-publicized sexual abuse complaints were lodged against teachers or administrators earlier this month; Edward F Stancik, city schools special commissioner for investigation, and Thomas Hyland, deputy director of Board of Education's own office of special investigations, comment (M)

Israel reports ordering troops to 'cease fire' unless in danger; unexpected order seems to be effort to seize initiative in responding to new American-led international offensive to halt violence; Prime Min Ariel Sharon did not disclose new policy in rare television speech earlier in evening; repeated his view that Palestinians switched to violence eight months ago and his appeal that they abandon it; both Israel and Palestinians say they accept report of international fact-finding committee as basis for braking disintegration of their relationship; Palestinians score Israel's rejection of total freeze on settlement construction; Sharon says Israel will not seize new land to expand Jewish communities in West Bank and Gaza; graph of Mideast death toll; photo (M)

US Court of Appeals for 2d Circuit in Manhattan rules that pregnant women who are in country illegally have no right to prenatal care under Medicaid; also rules that children born to illegal immigrants are entitled to Medicaid benefits for first year of their lives (M)

Vivendi Seen in Early Talks To Buy Houghton Mifflin Vivendi Universal of France is in preliminary talks to acquire Houghton Mifflin, the venerable United States publishing house, people close to the discussions said. People involved in the talks said they were in very early stages and could still collapse. A price has not been settled on, they said. Shares of Houghton Mifflin gained $3.95, to $57.45, while the American depository receipts of Vivendi rose 43 cents, to $68.80. [Page C2.]

Montreal Expos defeat New York Mets, 3-0; photo (M)

German business confidence declined more sharply in April than most economists had predicted; decline causes some economists to predict that Germany might not meet lowered expectations of growing by 2 percent this year; German state of Brandenburg reports its inflation rate rose to annual rate of 4.1 percent (S)

Marks & Spencer says full-year pretax profit was 480 million pounds ($692 million), compared with 517 million pounds last year (S)

Ossia, group of new-music specialists, to present concert of works by Steve Reich at Miller Theater of Columbia University; photo; exhibition of large-scale works by Russian and American artists to be presented at 10 Jay Street, under Manhattan Bridge Overpass; National Academy of Design to present its 176th annual exhibition; photo; 25th-anniversary season of Spoleto Festival USA opens on May 25 (M)

Article in series Ms Moffett's First Year, following novice New York City teacher Donna Moffett; focuses on her struggle to be creative within school's highly organized approach to teaching, that sometimes involves using minute-by-minute script; table of day's schedule; photos (M)

Paul Blackman and 78th Street Theater Lab in Manhattan present Just As If: Life and Cabaret From the Paradise Ghetto Theresienstadt, show about cabaret at Nazi camp called Terezin, 40 miles north of Prague, with lyrics and some melodies by inmates, original music and musical direction by Sergei Dreznin and additional music by Gerhard Bronner; photos (L)

George Vecsey Sports of The Times column discusses future of Pittsburgh Penguins and its owner-player Mario Lemieux following loss of NHL Eastern Conference championship playoff series to New Jersey Devils; photo (M)