November 26, 2002

National Governors Assn fiscal survey of states says plunging tax collections and soaring medical costs have created worst fiscal problems for states since World War II; says problems will force governors, many newly elected, to propose politically sensitive tax increases or drastic cuts in services; says Medicaid and other health benefits account for 30 percent of state spending and grew in 2001 by 13 percent, largest increase in decade; other findings detailed; assn executive director Raymond C Scheppach predicts huge cuts in Medicaid in coming year beyond cutbacks already enacted; says at time when revenues are declining, such growth is unaffordable and unsustainable; governors and state budget officials say fiscal condition of states is more dire than condition of national economy; photo; map (M)

Credit Suisse First Boston Denies Fraud Accusations Credit Suisse First Boston responded to a complaint filed by Massachusetts that accused the firm of securities fraud, denying the accusations and calling the complaint ''fundamentally flawed.'' Credit Suisse First Boston denied that it had used its investment advice and new shares issued by clients to reward companies and their executives for hiring the firm. The denials came in an answer to a complaint by William F. Galvin, above, the secretary of the commonwealth. [Page C11.]

Bill Pennington Sports of The Times column discusses wave of often-violent incidents involving college football fans who storm field after game to topple goal posts; nineteen years ago Harvard University freshman Meg Cimino was struck in head by falling post, and required years of rehabilitation to regain ability to walk and use arms; photos (M)

America remains as dependent as ever on Saudi Arabia for oil, nearly 12 years after Persian Gulf war when reliance on Saudi supplies prompted calls for US to diversify sources; Saudi Arabia supplies approximately one-sixth of US imports, but has considerable political strength as only producer with spare capacity to replace millions of barrels daily, which could be drained from market by US military action against Iraq; produces approximately eight million barrels per day; officials say it could raise output to 10 million barrels fairly quickly and to 10.5 million within three months; US Energy Department official Guy Caruso says if war halts Iraq's exports of between 1.5 million to 2 million barrels daily, situation would be manageable; says it would be harder to replace steeper decline in exports, which would occur if exports from other Persian Gulf suppliers are reduced by terrorist attacks or by prohibitive insurance premiums on oil tankers; graphs; chart (M)

SEC files first three cases against companies that it says violated new regulation barring selective release of important information, obtaining cease-and-desist orders against Siebel Systems, Raytheon and Secure Computing; fines Siebel $250,000 as well; lets Motorola off with only a report because it secured legal advice, even though that advice was wrong; appears to be trying to lay out clearly just what behavior is prohibited while trying to reassure companies that they will not be penalized if they act in good faith (M)