Budget Crisis, Gulf Get Intense Public Scrutiny : Survey: A monthly News Interest Index shows gasoline prices and tax proposals are being closely watched. Political races are being noticed less.

Americans are becoming more concerned with the domestic consequences of the Persian Gulf crisis, particularly rising gasoline prices, according to a survey released today that registers public response to the news.

In addition, Americans seem to have grasped many of the particulars in the federal budget crisis and their familiarity with the details may have negative political consequences for the Republicans. And while only 2 in 10 Americans were closely following German reunification, that was more than were paying close attention to the upcoming elections in the United States.

The results were contained in the latest News Interest Index, a monthly survey measuring public attention to the news. The index is sponsored by Times Mirror Co., owner of the Los Angeles Times and other communications properties.

More than 6 in 10 Americans said that they were paying “very close attention” to stories about rising gasoline prices, a marked increase from a month ago, the survey found. About the same number said that they were closely following news in general about the Iraqi invasion of Kuwait and the resulting U.S. troop deployment in Saudi Arabia, the survey found.

In contrast, the number of people who said that they were very closely following the plight of Western hostages held by Iraq fell to 47%, down from 57% a month ago.

The survey, conducted between Oct. 4 and 7, interviewed 1,213 adults and has a margin of error of plus or minus three percentage points. The wording of the questions and other difficulties can introduce bias into polling results.

The federal budget crisis that interrupted government operations over the weekend was not as closely watched by survey participants. Even so, large percentages of the population were able to volunteer details about the proposed budget package devised by White House and congressional negotiators.

While only 34% reported following news of the budget impasse “very closely,” for example, 45% volunteered that a higher gasoline tax was part of the package, 38% knew that a cigarette tax increase was included and 40% knew that the tax on alcohol would be affected.

Nearly half the survey group, 44%, also knew that President Bush was pressing to cut capital gains taxes, a proposal that primarily would benefit the wealthy. Just 27% thought that the President opposed such taxes.

Overall, the survey found public opinion to be narrowly against the budget package, with 41% opposed and 35% in favor.

The results seemed to translate into political gain for the Democratic Party. In marked contrast with almost a decade of survey research, the index found that a slightly larger group (29%) said that it had “the most confidence” in Democratic leadership to make “wise decisions” on reducing the deficit than the group (25%) that expressed confidence in the Republican President. A smaller percentage (18%) put its faith in Republican congressional leaders, while an equal percentage expressed confidence in “none” of the choices.

Americans paid little attention to the reunification of Germany, the survey found, with only 22% following the event very closely, a result that differed little from one age group to another.

But the elections in this country attracted even less attention. Only 18% said they were following news about elections in their state very closely. The lack of interest was evident even in states such as California and Texas with closely contested races for the U.S. Senate and the governor’s office.

The month’s instant celebrity appeared to be Supreme Court nominee David H. Souter, who was identifiable to 51% of respondents, even though only 15% closely followed his confirmation hearings.