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DUMPING GROUND: NUCLEAR WASTE
AND UTAH DON'T MIX
(Source: Tribune Editorial, 12/8/07)

Clouds are gathering. A perfect storm is brewing. A radioactive storm.

Circumstances - world-wide nuclear power proliferation in response to global warming, Nuclear Regulatory Commission reluctance to ban imported radioactive waste, the presence of a home-grown low-level radioactive waste dump in Utah, plans for a nuclear power plant in the state, and a low-pressure system resulting from short-sighted elected officials and an apathetic public - have combined to put Utah squarely in the storm's path.

The forecast is grim: There's a chance that Utah could become the dumping ground for the world's radioactive waste.

But if we act fast, if we put the pressure on our public officials, it's not too late to steer the storm away.

Here's some background information you'll find helpful as you lobby on our state's behalf.

The world is turning toward nuclear power to combat climate change. In the U.S. alone, the NRC expects to receive as many as 30 applications for new nuclear power plants by 2010. Other countries are doing the same. That means a lot more dangerous nuclear waste, everything from mildly-contaminated clothing to lethal spent fuel, will need to be disposed of - somewhere.

The fact that the NRC has set a dangerous precedent by allowing domestic disposal firms to import irradiated materials from other countries makes it more likely that significant amounts of the world's waste will come to the United States.

And Utah's low population and vast open spaces, plus the precedent that was set when we allowed a low-level radioactive waste dump to be foisted upon it, makes it more likely that this will be the place.

Add to that the fact that EnergySolutions, which owns and operates our radioactive waste disposal facility in Tooele County, is attempting to import 20,000 tons of irradiated waste from Italy, and, well, you see the big picture.

Of course, Gov. Jon Huntsman, EnergySolutions, and the politicians in its pockets, say not to worry. When the dump is full, we're done. End of story.

Don't believe it. The money is too tempting; the threat is real.

So call the governor, and your state and federal legislators, and express your concern about nuclear power and radioactive waste.

Tell them, in no uncertain terms, to tell the NRC to deny the request to import irradiated materials from Italy. Tell them Utah has already taken enough radioactive waste from elsewhere. Tell them we're not going to take it anymore.

There's a chance that Utah could become the dumping ground for the world's radioactive waste.

CHINA BALKS AT CO2 CUTS
(Source: Michael Casey, Associated Press, 12/9/07)

BALI, Indonesia -- Developing countries led by China squabbled with the West over mandatory emission cuts at the Bali climate change conference, as activists accused Canada of undermining the negotiations by insisting on targets for poor nations.

China, which some believe has surpassed the U.S. as the world's top emitter of carbon dioxide and other heat-trapping gases, questioned the fairness of binding cuts when its per capita emissions are about one-sixth of America's. China said that it has only been pumping pollutants into the atmosphere fora few decades, whereas the West has done so for hundreds of years.

"China is in the process of industrialization and there is a need for economic growth to meet the basic needs of the people and fight against poverty," said Su Wei, a member of China's delegation at the U.N. Climate Change Conference in Bali.

"I just wonder whether it's fair to ask developing countries like China to take on binding targets," Su said. "I think there is much room for the United States to think whether it's possible to change [its] lifestyle and consumption patterns in order to contribute to the protection of the global climate."

Delegates from nearly 190 nations are attended the Dec. 3-14 meeting in Bali and are likely to agree to launch negotiations that will lead to an international accord to succeed the 1997 Kyoto Protocol on global warming. They also are expected to set a deadline for completing negotiations and agree on some of the issues to Member of China's delegation at the U.N. Climate Change Conference be discussed.

The protocol, which was rejected by the United States, commits three dozen industrialized countries to cut their greenhouse gases an average of 5 percent below 1990 levels between next year and 2012, when it expires.

Indonesian Environment Minister Rachmat Witoelar, who is president of the conference, said discussions on starting post-Kyoto negotiations were on track and that "God willing" an agreement would be reached by next weekend.

"There is no deadlock," he said. "I would think about 85 percent of those in the room have the same direction."

But Climate Action Network Canada. a coalition of Canadian environmental groups, said Canadian negotiators in Bali have been told to "demand that poorer nations accept the same binding absolute emission reduction targets as developed nations."

The chief U.N. climate scientist. Rajendra Pachauri, said it was next to impossible to expect the developing world to agree to cuts when their per capita emissions are so much less than the West.

"What is absolutely essential is to see that the developed countries establish a record of action and commitment, which I think will induce and provide a moral basis for developing countries to assume the burden.- Pachauri said. "In the absence of that, I don't think anything is going to happen. With per capita levels being so different, it's not likely that anybody in the developing world would accept commitments."

Angus Friday, chairman of the Alliance of Small Island States — many of which are threatened by rising sea levels — said developed countries had a "moral responsibility" to show leadership on the issue and act first to tackle global warming since they have contributed far more to the problem than poor countries.

"The danger in the developed world is that the culture of entitlement is not being matched by the culture of responsibility," he said.

DATA SHOW 2007 EIGHTH-WARMEST YEAR FOR U.S.
(Source: Jennifer Kerr, Salt Lake Tribune, 12/14/07)

WASHINGTON — A vast swath of the United States was warmer than usual this year, leading to severe drought conditions and wildfires in the West and Southeast. Texas, the Lone Star state, stood alone, the only one to record below average temperatures.

Preliminary data released by federal scientists predict the annual average temperature for 2007 across the contiguous United States at near 54.3 degrees Fahrenheit – making the year the eighth warmest since records were first kept in 1895. Wordwide, the average temperature for the year, expected to be near 58 degrees Fahrenheit, is on pace to be the fifth warmest ever, said the report by NOAA's National Climatic Data Center.

"Within the last 30 years the rate of warming is about three times greater than the rate of warming since 1900," said Jay Lawrimore, chief of the climate monitoring branch at the center. "The annual temperatures continue to be either near-record or at record levels year in and year out."

In the U.S., the months of March and August were the second-warmest in more than 100 years. Six states -- Kentucky, Tennessee, South Carolina, Georgia. Alabama and Florida -- had the warmest August month on record.

In 113 years of record keeping, all but four states — Texas. Maine, New Hampshire and Vermont — experienced either above average or significantly above average temperatures from January through November. Wyoming had its second-warmest year; Idaho and Utah had the fifth-warmest dears on record.

North Carolina had the driest year so far. From midsummer into December, more than three-quarters of the Southeast was in drought, the report said.

The problem in Texas. Lawrimore said, was too much rain that led to flooding and the wettest summer on record. The cloudy and rainy weather for much of the year contributed to the cooler temperatures for the state, he said.

Globally, seven of the eighth warmest years on record have occurred since 2001, and the 10 warmest years have all occurred since 1997, said the report.

"When you see these numbers, it's screaming out at you, 'This is global warming.' " I said climate scientist Andrew Weaver of the University of Victoria in Canada. "It's the beginning and it's unequivocal."

Weaver said previous warm-weather records probably would have been broken this year were it not for some cooling toward the end of the year because of La Nina — a cooling of the mid-Pacific equatorial region.

At a U.N. climate conference on Bali this week, delegates from nearly 190 nations, including the United States, have been trying to hammer out a roadmap for negotiations fora new global warming pact that would take effect in 2012 after the current one expires. Former vice president and Nobel laureate Al Gore told delegates Thursday that the United States was "principally responsible" for blocking progress toward an agreement on launching negotiations to replace the Kyoto Protocol.

Gore won this year's Nobel Peace. Prize for helping alert the world to the danger of climate change. As the world warms, scientists fear an increase in disease, killer weather and the extinction of vast numbers of species.

MINING COMPANIES GET THE GOLD,
TAXPAYERS GET THE SHAFT
(Source: Jane Danowitz, Special to the Los Angeles Times, 12/14/07)

Gifts of jewelry - particularly gold - are a perennial favorite on Santa's list. And with the metal's price hovering near $800 an ounce, the tiniest golden bauble, bangle or bead will be a coveted commodity. But even if you don't elect to splurge on this luxury, it still will cost you plenty because mining companies from around the world can take gold from U.S. lands basically for free, leaving taxpayers with nothing but the cost of cleaning up the damage that mining leaves behind.

Although the practice seems naughty, it's all nice and legal because of an obsolete federal law. And although the House of Representatives recently passed legislation to close the loopholes, the metal mining industry's allies in the Senate might block the long-overdue reforms.

The mining of gold and other hard-rock minerals on public lands is governed by the General Mining Law of 1872, which has remained virtually unchanged since it was signed by President Grant to encourage settlement of the West. The statute was designed to reward pioneers who survived the trek across the frontier with the opportunity to mine gold and other metals freely and in unlimited amounts.

The prospectors are long gone, but the incentives remain. Today, the highly profitable hard-rock mining industry - much of it foreign-owned - continues to receive generous U.S. tax breaks. And it pays virtually nothing for gold and other precious metals it takes from public lands with few restraints. In sharp contrast, oil, gas and coal companies have been reimbursing taxpayers for decades with billions of dollars in royalties that were paid for resources removed from federal property.

Not surprisingly, such free and easy access has resulted in the United States joining the ranks of the world's top producers of gold, most of which ends up as jewelry. And despite its escalating cost, world demand is soaring. The United States now imports less gold than it sends overseas, predominantly to eager consumers in India, China and the Middle East.

The gold may be exported, but the mess made stays behind. The production of just one gold ring generates about 20 tons of waste, according to one mining policy organization, much of it left to litter the landscape as well as polluting rivers and streams. Today, most gold is mined from open pits, which can run a mile long and equally as deep. Utah's Bingham Canyon, which produces gold as well as copper, silver and molybdenum, forms a crater large enough to be visible from outer space.

Moreover, once the ore has been excavated, mining companies separate the gold from the rock with cyanide - a substance so toxic that voters in Montana have outlawed its use in outdoor chemical processing. According to the Environmental Protection Agency, taxpayers face a bill of more than $50 billion to clean up the waste and water contamination that gold and other hard-rock mining has left behind.

It's about to get worse. Driven by record demand and a weak U.S. dollar, investors and speculators are snatching up mining claims at an alarming rate. A recent analysis of government data by the nonpartisan Environmental Working Group found that, in the past five years, there has been an 80 percent increase in the number of new mining claims in 12 Western states, many within a stone's throw of Grand Canyon, Yosemite and other national parks.

A solution finally might be at hand. The House recently passed bipartisan legislation that would establish royalty payments and set up environmental standards for operations and cleanup, as well as provide special protection for parks, wild and scenic river corridors, and national forest roadless areas. The measure faces a tougher test in the Senate, where its important environmental and taxpayer protections could get watered down by mining industry allies.

Mining is an important part of the nation's economy. But it must be regulated by modern law - one that protects the environment and the taxpayers. It's time for Congress to stop playing Santa for a few companies and leave a little something for the taxpayers.
– * Jane Danowitz directs the Pew Charitable Trusts' Campaign for Responsible Mining.

U.S. BACKS DOWN, CLEARING WAY
FOR CLIMATE ACCORD
(Source: Charles J. Hanle, Associated Press, 12/16/07)

BALI, Indonesia - In a hushed conference hall, as envoys from 186 nations looked on, the world's lone superpower took a tongue-lashing from its most powerless, nation after poor nation assailing the U.S. "no" on the document at hand. Then the delegate from Papua New Guinea leaned into his microphone.

"We seek your leadership," Kevin Conrad told the Americans. "But if for some reason you are not willing to lead, leave it to the rest of us. Please get out of the way."

The U.N. climate conference exploded with applause, the U.S. delegation backed down, and the way was cleared Saturday for adoption of the "Bali Roadmap" after a dramatic half-hour that set the stage for a grinding two years of climate talks to come.

"This is the beginning, not the end," U.N. Secretary-General Ban Ki-moon, who made a plea here for action, later told the Associated Press.

The Bali conference, a contentious two-week affair that lapsed into an extra day, was charged with launching negotiations to replace the Kyoto Protocol when it expires in 2012. That pact requires 37 industrial nations to reduce greenhouse gases by a relatively modest 5 percent on average in the next five years.

As the "roadmap'" talks begin, the focus again will fall on the United States, the lone major industrial nation to reject Kyoto. Many will be looking to next year following the election of a new American President, one that may be wore willing to deal on deeper mandatory emissions cuts than President Bush who favors only voluntary approaches to reining in greenhouse gases.

What those negotiators decide by 2009 is likely to help set the course of global warming and climate change for decades to come.

In a series of pivotal reports this year, a U.N. network of climate and other scientists warned of severe consequences – from rising seas, severe weather, species extinction and other effects -- if sharp cutbacks
aren't made in emissions of the industrial, transportation and agricultural gases blamed for warming.

To avoid the worst, the Nobel Prize-winning Intergovernmental Panel on Climate Change said, emissions should be reduced by 25 percent to 40 below 1990 levels by 2020.

Those numbers, endorsed by the Europeans and other `Kyoto-ratifying nations, were written into early 'versions of this conference's final decision — as a guideline, not a binding target. The U.S. delegation, led by Undersecretary of State Paula J. Dobriansky, managed to get the figures expunged.

But it was a separate issue that precipitated the riveting, 11th-hour floor fight. India sought to amend the document to strengthen requirements for richer nations to help poorer nations with technology to limit emissions and adapt to climate change's impacts.

Undersecretary of State Paula J. Dobriansky, the leader of the U.S. delegation, objected. "We are not prepared to accept this formulation," she said, setting off loud, long boos in the hall.

America's isolation was complete. No one spoke in support. And Dobriansky capitulated, withdrawing the U.S. objection, to general applause.

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REPORTS SIGNAL ECONOMIC WEAKNESS
(Source: Martin Crutsinger, Associated Press, 11/30/07)

WASHINGTON - Consumers battered by a slumping housing market and a credit crunch have slowed the growth in spending to the smallest amount in four months. In another sign of weakness, construction activity fell by a larger-than-expected amount.

The Commerce Department reported Friday that consumer spending edged up 0.2 percent in October, the weakest showing since a similar increase in June. Individual incomes grew by just 0.2 percent last month, the poorest showing in six months.

Meanwhile, a separate Commerce report showed construction spending fell by 0.8 percent last month, the biggest decline since July. Activity in the besieged housing industry fell for a 20th straight month while nonresidential construction weakened as well.

The weakness in consumer spending, incomes and construction raised new worries about spreading economic weakness caused by the steepest slump in housing in more than 20 years and a widening credit crisis triggered by rising mortgage defaults. Consumers are also being battered by surging prices for gasoline and other energy products.

''Consumers are still spending, though not nearly at the pace they had been,'' said Joel Naroff, chief economist at Naroff Economic Advisors.

While economists are expressing growing concerns about a possible recession, Federal Reserve Chairman Ben Bernanke signaled in a speech Thursday night that the central bank is prepared to cut interest rates further if needed to keep the country out of a full-blown downturn.

His comments followed similar remarks by Fed Vice Chairman Donald Kohn and have raised hopes that the central bank, which has cut rates at its last two meetings, will reduce them further when Fed officials meet Dec. 11.

Fed officials have said the central bank needs to make sure inflation pressures do not get out of hand given the recent jump in oil prices to nearly $100 per barrel.

They got good news on that front Friday. A gauge of core inflation tied to consumer spending edged up 0.2 percent in October and is up 1.9 percent over the past year. That increase is within the Fed's 1 percent to 2 percent comfort range for core inflation, which excludes energy and food.

The 0.8 percent drop in construction was far bigger than the 0.2 percent dip that had been expected. Private residential construction fell by a sharp 2 percent, the 20th straight decline in this troubled sector.

Private nonresidential construction, which had been helping to cushion the housing downturn, dropped by 0.5 percent, the first decline in this category in 13 months. The only strength came in government activity, which was up 0.8 percent as spending on state and local projects hit an all-time high.

Analysts said the 0.2 percent gain in consumer spending represented a slow start to the fourth quarter with even further weakness expected as the full impact of recent declines in consumer confidence weigh on holiday spending.

Ian Shepherdson, chief U.S. economist at High Frequency Economics, predicted that consumer spending would rise by 1 percent to 1.5 percent in the current quarter and he said a reading below 1 percent can't be ruled out. In the third quarter, consumer spending posted a solid 2.7 percent rate of increase.

The 0.2 percent October spending advance was slightly below the 0.3 percent increase analysts had been expecting.

Consumer spending is closely watched because it accounts for two-thirds of total economic activity.

GOOD NEWS FOR MINE COUNTRY
(Source: Paul Beebe, Salt Lake Tribune, 12/6/07*)

Carbon and Emery counties, still coping with the Crandall Canyon mine collapse, got some good news when Sorenson Communications Inc. said it will open a call center in Price that is expected to employ more than 100 people by the end of next year.

The two central Utah counties have been hit hard by the coal mine catastrophe in August, when six miners were entombed and three rescuers were killed. Hundreds of miners working for UtahAmerican Energy and its parent, Murray Energy Corp., have been laid off or idled.

Now, Price is getting an economic boost from Salt Lake City-based Sorenson, which provides communications services to the deaf and hard-of-hearing.

About 50 people are scheduled to go to work in January or February in a temporary center in the former Utah Division of Wildlife Services building. Additional employees will be hired as demand increases.

"It's a ray of sunlight in a cloudy sky. I think it's wonderful, but it would be welcome anytime," Price Mayor Joe Piccolo said after a news conference at Sorenson's headquarters. Piccolo's father was killed in a mining accident 50 years ago.

The center will help deaf and hard-of-hearing people communicate from any computer or mobile device with hearing telephone users. A hearing-impaired individual will send text messages through the Internet to a Sorenson employee who will call the hearing person and read the message. The hearing person responds orally, and the employee types the message back to the hearing-impaired person.

At the news conference, Gov. Jon Huntsman Jr. lauded Sorenson executives for choosing Price for the center. Emery and Carbon counties have suffered greatly in the past four months, the governor said.

"And now we have Sorenson Communications that steps up and does what I think is one of the most important things that anyone can do in a community . . . and that's offer jobs, because in the end there's nothing more powerful that you can give a family or an individual than a job," Huntsman said.

The center will move next summer to a larger building under construction at 600 West and 200 South, Nola said.

About 60 percent of the jobs will be full time, paying $9 an hour, plus health insurance, a 401(k) retirement program and vacation benefits. Part-time workers will earn $9.50 an hour but will not receive health benefits. They will be eligible for the 401(k) program if they work at least 1,000 hours a year.

"Price is a terrific city," Nola said. "We think it's going to be a beautiful fit between our company and the citizens of Price. We think it's a great work opportunity."

The unemployment rate in Carbon County was 4.1 percent in October, according to the Utah Department of Workforce Services. It was 3.6 percent in Emery County, home of the Crandall Canyon mine. The state's rate is 2.8 percent.

Mike McCandless, Emery County's economic development director, welcomed Sorenson's announcement, noting that the economies of both counties are intertwined.

"Carbon and Emery counties are one economic unit, and certainly any new business helps us both. . . . We're thrilled to have any kind of employment."

McCandless is concerned that Sorenson's wages may be higher than those offered by five other call centers in coal country.

"Is a wage war bad for the county? No, as long as it doesn't hurt the ability of existing businesses to keep their workers," he said.

"Our labor market is tightening up. Hopefully, we can coordinate with the owners of the new call center so it's good for everybody," McCandless said.

Delynn Fielding, Carbon County's economic development director, said Sorenson is a "very progressive, rapidly growing company" whose presence will help the area's economy.

Five years ago, Sorenson employed 35 people. Today, the company has 3,500 employees, including 500 in Utah.
---
* Mike Gorrell contributed to this story.

EXECS LESS CONFIDENT ABOUT ECONOMY
(Source: The New York Times, 12/7/07)

Surveys of corporate chief executives and chief financial officers show sharp declines in optimism about the economy and business conditions, providing more evidence that the economy is slowing.

Just 9 percent of chief financial officers said they were more optimistic about the economy in December than they had been three months earlier, a record low. "We've never seen anything like that," said John Graham, a finance professor at Duke University, which conducted the survey with CFO Magazine. "CFO optimism is spiraling downward."

The monthly survey of chief executives released found that 41 percent expected employment in the economy would decrease over the next three months, by far the largest such figure since the survey began in late 2002. Only 16 percent forecast an improvement in employment, with the rest expecting no change. As recently as July, only 12 percent forecast the employment situation would worsen.

"CEOs have been clear over the past several months that they are worried about the economic climate," said Edward Kopko, the publisher of Chief Executive magazine.

"The recent dramatic drop in confidence may suggest that the worst is yet to come," Kopko said.

Overall, the CEO confidence index fell for the fourth consecutive month, and was the lowest since May 2003.

TOP WORRY: HEALTH COSTS
(Source: Paul Beebe, The New York Times, 12/7/07)

The cost of employee health insurance is the top worry of Utah executives in a Zions Bank economic forecast that also shows optimism about the state's economy is softening.

It was the first time that health insurance costs have topped the list of concerns of Utah business leaders, according to the bank's latest Utah Quarterly Economic Forecast, out Thursday.

Zions has issued forecasts gauging the health of the Utah economy from the perspective of senior executives every three months since the second quarter of 2006. The forecasts are prepared by research firm Dan Jones and Associates.

During the previous five quarters, the cost of employee health insurance has always ranked as the No. 2 concern, behind finding enough qualified workers when unemployment is at historic lows.

Rob Brough, Zions executive vice president of communications and marketing, said the rise of health care costs to the forefront of the business leaders' thinking may be related to the annual period in late fall when most companies announce adjustments to their health care plans. In recent years, those adjustments have often been painful.

"Certainly, at that time employees are more aware and more conscious of the premium increases in health insurance. Because of that, [the issue] raises itself on CEOs' radar screens because they are hearing from more employees about perhaps it being an issue," Brough said.

The cost to insure a Utah family rose 71.8 percent from 2000 to 2006, to $10,832 annually, according to a report by Families USA, a nonpartisan consumer health care advocacy group. During the same period, median earnings of Utah workers increased 9.9 percent, to $23,620.

The need to reform health care "is huge. It is a big deal. It's the No. 1 issue that we're working on," said Michael De Groote, a Salt Lake Chamber spokesman.

The level of concern about health insurance costs was pegged at 5.6 on an index that ranges from 1 to 7. Scores between 5 and 7 are said to be high-level concerns, according to Zions.

Pat Jones, co-owner of Dan Jones and Associates, said the results mirror what she has been hearing in focus groups she has conducted across Utah on behalf of various clients.

"The lack of affordability of health insurance is impacting employers' decisions about [whether a company will hire workers] and who are hired," Jones said.

Other top economic concerns among executives during the quarter were finding qualified employees (5.5), keeping qualified employees (5.13), gasoline prices (5.04) and the cost of salaries and wages (4.84).

Among the top worries, the cost of health insurance was the only one with an increased level of concern compared to previous quarters of this year.

Zions said executives are more guarded in their optimism abut the financial future of their companies than they were during previous quarters.

"With the exception of the fourth quarter of 2006, this continues a trend towards 'somewhat optimistic,' rather than 'very optimistic,' " the bank said.

According to Zions, 79 percent of executives surveyed during the third quarter said they were optimistic about the financial futures of their firms. That was down from 85 percent in the previous quarter and lower than the fourth quarter of last year, when optimism last peaked at 88 percent of the respondents.

Jones said much of the growing uncertainty comes from worries about the subprime lending crisis and weaker housing markets that are suffering from declining sales and falling prices.

"The uneasiness - I call it the blanket of uncertainty - is having a ripple effect on many different industries. Companies are not as certain as they used to be that they can sustain the way they've been doing business for the last few years," Jones said. 

HUNTSMAN'S BUDGET: WE LIKE HIS PRIORITIES
(Source: Tribune Editorial, 12/11/07)

Gov. Jon Huntsman's latest budget strikes us as a plan that follows the news, and that's a good thing.

Utah teachers are leaving the profession or fleeing to neighboring states for higher pay. Huntsman has responded with a proposed 7 percent boost in the basic funding formula for schools that should result in teacher raises. Plus, he has put aside extra money for math and science teachers.

The state's prison system has farmed out inmates to county jails, but high-profile escapes this year have proved some of those jails are not secure. They also lack treatment programs. The Republican governor's budget responds to both problems and would expand the Gunnison prison faster.

The burgeoning population is putting increased pressure on roads, and the state's bridges are falling apart. Huntsman's budget would provide $220 million in cash for 16 choke-point projects, corridor preservation and congestion relief, and to repair bridges.

Opinion polls say health insurance is a major voter concern. Huntsman will soon propose a state-based overhaul plan, and his budget includes a $30-million down payment.

But something is missing from this budget: tax cuts. That's also a good thing. We agree with him that now is a good time for a tax-cut holiday.

Yes, the Utah economy remains strong and there is once again a significant state revenue "surplus."
But the national economy's clouds are darkening and Utah is not immune.

Besides, the governor and Legislature have done quite a bit of tax tinkering in recent years and no one knows what the long-term consequences will be. They have removed a portion of the sales tax on food and created a modified flat income tax. How those changes will affect state revenues, particularly in a recession, is anyone's guess.

On another tax front, legislators are hearing a lot of griping from taxpayers in a few pockets of the state who are complaining of steeply rising property taxes. But most of those beefs are attributable to the failure of county assessors to keep valuations current, not to an underlying flaw in the property tax system.

The subprime lending crisis already is moderating growth in Utah real estate prices. So, again, now is not the time to be tinkering with property taxes.

Overall, we like Huntsman's priorities. We hope the Legislature will, too.

INFLATION AT FASTEST RATE IN 34 YEARS
(Source: The Associated Press, 12/13/07)

WASHINGTON - A record jump in gasoline prices pushed up wholesale inflation in November at the fastest pace in more than three decades, while retail sales showed unexpected strength.

The Labor Department said Thursday that wholesale prices rose by 3.2 percent last month, the biggest increase in 34 years. The jump reflected a 34.8 percent surge in gasoline prices. Outside of energy and food, core inflation posted a 0.4 percent jump, double what was expected.

But in more upbeat economic news, the Commerce Department reported that retail sales increased by a better-than-expected 1.2 percent last month. It was the biggest sales advance in six months and evidence of widespread strength in a number of areas, from department stores to clothing shops and furniture stores.
Economists said the retail sales gain should ease concerns the economy is about to tumble into a recession, although they said overall growth in the current quarter is still likely to be weak given the headwinds battering
consumers. Those troubles include the slump in housing, a severe credit crunch and surging energy costs.

All of these problems have pushed consumer confidence down to the lowest point in two years, leading economists to forecast a subpar performance by holiday shoppers this year.

The big jump in wholesale prices was worrisome, economists said, because it was not limited to energy.
That suggests that the relentless surge in energy prices could be spreading into more widespread inflation, something that would raise alarm bells at the Federal Reserve.

''The Fed has some worries on inflation,'' said David Wyss, chief economist at Standard & Poor's