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Report: Medicaid revision shorts Fla.

WASHINGTON - Florida, California and New York, home to 30 percent of the nation's poor, are among the biggest losers in the formula that sends federal money to health care programs for people who live in poverty, congressional investigators say.

The federal matching rate for Medicaid, the state-federal health care program for the poor, was designed to reduce differences in the ability of states to fund Medicaid services. The formula disproportionately rewards Alaska, Utah and other smaller states, however, while shortchanging California, Florida and New York, according to a new report by the General Accounting Office.

The report, due out Monday, compared Florida and Iowa, which contribute the same amount of state money per Medicaid recipient. After receiving federal dollars according to the formula, Iowa spent $6,729 a person, while Florida spent $3,160 a person.

COLUMBUS, Ohio - About 50 people spent eight hours at the Ohio State Fair slicing 4,250 pounds of potatoes, frying them in 710 pounds of soybean oil and adding 80 pounds of salt to set the record for the world's largest bag of potato chips: 1,082.5 pounds.

The bag holds 16,000 servings, 288,000 chips, 160,000 grams of fat and 2.56-million calories.

"They need the world's biggest container of chip dip to go along with it," onlooker Susan Kotowski, 23, said. "They have the cows. They could do it."

LOS ANGELES - President Bush stepped into California's recall election Friday, saying that he believes film star Arnold Schwarzenegger would make a "good governor," despite the White House's professed neutrality in the race.

"I'm interested in the process - it's fascinating to see who's in and who's out," Bush said in response to a question about the election and Schwarzenegger's campaign. "And, yes, I think he'd be a good governor."

The list of Republican contenders grew Friday as former baseball commissioner Peter Ueberroth announced his candidacy. Democrats scrambled to unite behind a strategy. Lt. Gov. Cruz Bustamante officially filed to run and insurance commissioner John Garamendi said some Democrats had pressured him to withdraw. He said he would not.

PETERSON AIR FORCE BASE, Colo. - The Air Force has dropped sexual assault charges against an officer accused of raping an Air Force Academy cadet last year, his lawyer said Friday.

Charges against 2nd Lt. Ronen Segal were dropped after the investigating officer said the woman had been capable of giving or withholding consent and "did not in any way object to or resist" Segal performing a sexual act on her earlier, the Air Force said.

IMPORTS TO RESUME: Restrictions on imports of Canadian game animals and certain boneless meat products will be lifted by month's end, the Bush administration said Friday. Trade bans have crippled the Canadian industry since a mad cow case was announced May 20.

VERIZON TALKS ON HOLD: Mediators called a break Friday in negotiations between Verizon Communications and two unions. Talks will resume Tuesday.