Starting something of a tradition, the governor chose a site away from the Capitol renovation for his second annual review of the state - Bountiful's Washington Elementary School gym - as a jumping-off point to pitch his economic development, tax reform and education initiatives Tuesday.

Choosing to stay behind the scenes as the 2006 Legislature opened this week, the governor emerged into public view, using his speech to rally public support for his ideas and his method of funding them. With a $1 billion surplus looming, lawmakers and the governor are verbally wrangling over how to cut taxes and by how much.

Huntsman removed all doubt of his preferences Tuesday, firmly carving out a position in favor of eliminating the sales tax on food at the cash register. Noting the tax was imposed 73 years ago, during the Great Depression, Huntsman called the tax on food a "drastic measure adopted as a temporary fix for a different time."

"We can provide Utahns immediate relief at the checkout counter," the governor added. "Now is the time. Let's rally together once and for all and remove the sales tax on food."

Huntsman's sales tax cut is similar to one promoted by House Republican lawmakers. Senators have suggested a $75 tax rebate Utahns would apply for when they file their taxes.

Cutting the sales tax on food would take about $160 million out of state coffers. To make up the difference, Huntsman says the state can gather uncollected taxes on Internet sales, increase local governments' share of the sales tax and use projected surpluses in state revenue.

While pledging his support for cutting the food tax, the governor also reminded lawmakers of his plan to slice the state's income tax from 7 percent to 5 percent, a "simpler, flatter and fairer" tax.

Huntsman says the two legs of his tax reform package are critical to the economic health of the state. He figures lower taxes will make Utah more competitive with neighboring states in the Intermountain West.

In addition to streamlining the state's tax system, the governor wants to capture the economic development potential of technological advances at Utah's universities. He has carved out $62 million to incubate start-up companies that spin off from the colleges - the Utah Science, Technology and Research Initiative, or USTAR.

"We will be uniquely positioned to produce the next generation of both life-saving discoveries and award-winning researchers if we will take this crucial step forward," he said.

Finally, with school principal Carolyn Ingles on stage, Huntsman used the makeshift surroundings to remind lawmakers of his budget priorities, including a 5.5 percent increase in per-pupil spending, $7 million to expand all-day kindergarten and math and science teacher training and incentives.

"Building intellectual infrastructure by way of brainpower is as crucial to our state's success as building roads, bridges and dams," he said. "If we fail our children, we have failed our future."

Tuesday night, disagreements between the governor's office and legislative leaders seemed to melt away. Both House Speaker Greg Curtis and Senate President John Valentine found little fault with the governor's initiatives. If anything, they wanted more detail from Huntsman. The sticking points inevitably will come with carving up the state revenue pie.

"He's really thrown down quite a challenge to us," said Valentine.

And Curtis said lawmakers likely will approve much of the governor's agenda. But the dollar amounts might change. For example, his student funding percentage might be shaved slightly to pay for the math and science initiative. Likewise, USTAR will be funded, but perhaps not at the level the governor would like.

"The governor provides the broad vision. The Legislature provides the detail," Curtis said. "It's a good time. We've got plenty of money. But it spends quickly when you spend it in $100 million chunks."

Gov. Jon Huntsman Jr. on:

TAXES

TRANSPORTATION

* 5.5 percent increase in spending per student.

* $7 million voluntary, all-day kindergarten for Title I schools.

* To seek funding for training and incentives for fourth-, fifth- and sixth-grade math and science teachers.

* "If we fail our children, we have failed our future."

Taxes: "We can provide Utahns immediate relief at the checkout counter. Now is the time and this is the session to remove the sales tax on food!"

* Increase the share of sales-tax revenue retained by local governments, collect sales tax on online purchases and use anticipated new revenue from economic growth to eliminate tax on food.

* A flatter tax that lowers the percentage paid by the taxpayer from 7 to 5 percent.

"There were many who said it could not, would not, be done. However, thanks to many of you, traffic will soon flow on the Legacy Parkway."

* Continued investment in roads, rails.

* Preserve routes for future roads, plan for public-private partnerships and enhance use of high-occupancy vehicle lanes for green vehicles.

* "My budget calls for unprecendented increases in transportation funding. When it comes to improving old roads and investing in new ones, the time is now."