January 21, 2002

Experts agree that political war now escalating over budget will revolve, in part, around interests and apprehensions of older Americans; both political calendar and issue agenda are pushing parties toward rough debate about who has elderly's best interests at heart; this year's critical Congerssional elections will play out amid increasing strains of aging society, slugging economy, resurgence in health care costs and disappearing budget surplus (M)

Florida's thriving economy is exemplified by Port St Lucie; in last year, Port St Lucie metropolitan area has had fastest growing economy in Florida, and Florida has had fastest growing economy in United States; data and economists say that state may not be booming the way Port St Lucie is, but it is holding up better than almost anywhere else; state's relative strength goes long way toward describing current recession; Florida economy has comparatively little manufacturing, sector hit hardest in this downturn, and many of items Florida does make, like boats and orange juice, are selling better than clothing, lumber, steel and semiconductors from other regions; photo; map (L)

Pittsburgh Steelers defeat Baltimore Ravens, 27-10, in second round of playoffs; advance to AFC championship game against New England Patriots; photo (M)

Business Digest column

States, which have been building more prisons for three decades and passing tougher sentencing laws, are being forced by budget deficits to close some prisons, lay off guards and considering shortening sentences; in last month, Ohio, Michigan and Illinois have each moved to close a prison, laying off guards in process; California, which led nation's prison-building boom, will close five small, privately operated minimum security prisons when their contracts expire this year; photo (L)

Joyce Purnick Metro Matters column discusses ambiguities in welfare numbers following Sept 11 terrorist attack on New York (M)

Investigation into whether ImClone Systems misled investors is making some investors wary of biotechnology field; risks are underlined by setbacks or failures in clinical trials reported by several other companies, with corresponding sharp drops in share prices; Dr John Mendelsohn, ImClone board member who developed its cancer drug Erbitux, says it is not fair to compare company to debacle at Enron, where he is also board member, saying ImClone's problems will mean only 'small delay' in 20-year process of bringing Erbitux to market (M)

Lawyer for Enron chief executive Kenneth L Lay says Lay repeatedly used millions of dollars in Enron stock to repay loans made to him by company last year as Enron shares declined in value; says Lay's decision to dispose of Enron shares late in year reflected need to raise cash, not a concern about health of Enron (M)

Elvis Mitchell assesses awards ceremony for this year's Sundance Film Festival; photo of Gordy Hoffman accepting Waldo Salt Award for writing Love, Liza (M)

UNSETTLED CLAIMS -- Enron's bankruptcy has frozen settlement negotiations and trials for victims of a 1996 explosion involving an Enron subsidiary in Puerto Rico. PAGE A12 SENATOR UNDER FIRE -- Drawing critics from both sides of the aisle, Senator Joseph I. Lieberman embodies how Enron's collapse has tied the capital in political knots. PAGE A13

People of Town of Brookhaven, LI, are set to vote on referendum to change way six Town Council members are chosen, abandoning at-large system in which candidates run townwide for one in which six equal population districts would each elect one council member; issue is hotly contested; opponents say districts would be throwback to big-city wards that would increase government costs and deprive residents of right to vote for five other council members; backers say that town government has been riddled with scandal and wastes millions of dollars under at-large system and that proposal would bring home rule closer to people and make elected representatives more responsives to planning, zoning and other local issues; photos; map (M)

16th annual Brooklyn Tribute to Dr Martin Luther King Jr to begin Jan 21; Second New York Flamenco Festival opens on Jan 25; photo; five one-act plays to be presented by Youngblood, Ensemble Studio Theater's company of emerging playwrights under 30; exhibition Painted Ladies: Portraits of Women at the Court of Charles II, 1660-1685, to open at Yale Center for British Art in New Haven; photo (M)