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)

Nassau County is rushing to meet a court deadline to fix its antiquated property assessments, but now several officials fear that new flaws in the revised tax rolls could perpetuate inequities for years. Critics say the discrepancies include the overpricing of vacant lots, whose assessments nearly tripled, and the underpricing of some prime waterfront properties by $100,000 or more -- at values even lower than what they actually sold for.

Bush administration will propose plan to eliminate all tariffs on industrial and consumer goods by 2015, eliminating about $18 billion in tariffs that American consumers pay each year; proposal plays to US strengths and will require most other countries to cut their tariffs more drastically and more rapidly than US; trade experts say administration may be trying to regain credibility on free-trade issues after giving in to demands for protectionist measures from steel industry and from American farmers earlier in year; proposal is almost certain to run into objections from many countries in Latin America and Asia, which are likely to argue that their domestic industries will have to endure severe competitive jolts on industrial side while still facing steep barriers to American markets for agriculture (M)

Yukos Oil plans 2003 production increase of as much as 18 percent; is second-largest Russian petroleum producer; now ships oil directly to United States (S)

Caryn James reviews new season of MTV program The Osbournes; photo (M)

Pres Bush signs legislation creating Department of Homeland Security and appoints White House domestic security coordinator Tom Ridge to run it; sets in motion vast bureaucratic reorganization he says will focus full resources of American government on safety of American people; sends Congress detailed plan for bringing department into being; nominates Gordon R England as Ridge's deputy and Asa Hutchinson, administrator of Drug Enforcement Administration, as undersecretary for border and transportation security; department will require largest reshuffling of governmental responsibilities since founding of Defense Dept after World War II, bringing together nearly 170,000 workers from 22 agencies; photos (M)

Jane E Brody Science Times article gives unsettling statistics about falling asleep while driving and explores challenges safety organizations face in preventing sleep related accidents; it is estimated that 20% of all driving accidents in US are related to driver fatigue; experts agree detection devices are needed, but none as yet have been found reliable for various people and situtations; best solution to date is to get off roadway and nap, but unfortunately many people feel unsafe doing so; charts; photo (M)

A judge ordered that 11,000 documents concerning the Archdiocese of Boston's handling of 65 priests accused of sexually abusing children be made available to the public. Article, Page A18.