Curtis, Valentine and Huntsman privately discussed the compromise Wednesday morning. And the Republican leaders agreed to talk publicly about the plan after it was mentioned to the Deseret Morning News.

"We still have work to do," Curtis said. "But (the tax cuts in the compromise) do fit overall into the framework" the majority Republicans have already agreed upon.

Tuesday, both the House and Senate caucuses agreed to set aside $300 million for tax cuts and road building.

The number is significant because for the first time in the 45-day session, which ends March 1, the ruling Republicans and Huntsman, also a Republican, have an overall number to work toward.

Here's how it adds up:

• Combine removing the state sales tax on food ($166 million) with the 5 percent flatter-rate income tax reform ($23 million or so) for around $190 million in tax relief.

• Add in some targeted business tax cuts for economic development — $10 million or $20 million — and there's still around $100 million left in ongoing tax monies to pay for needed road construction.

"It's a way to bring all parties together," Curtis said, to get at least most of the sales tax off of food. And fiscally conservative legislators — concerned about $500 million-plus in new tax revenue exploding the size of state government — are keeping $300 million from going toward general government growth.

In the compromise, however, some powerful GOP senators would have to back away from their preferred plan on the food tax — giving an income tax rebate of an estimated $75 to poorer Utahns to make up for the sales tax they pay on unprepared food.

Valentine said he didn't know yet whether there would be support among the GOP senators for the proposed compromise. Removing only the state's share of the sales tax on food "solves the concerns . . . but some of the local governments still have got some angst about it."

One Republican senator who isn't sold on the compromise is Bill Hickman of St. George. While Hickman said he'd like to see the sales tax taken off food, he doesn't think it can be done within the $300 million limit set for tax cuts as well as road funding.

"I support removing the sales tax off food as long as we can do the things we need to do as far as roads," he said. "At this point, it doesn't look like we can" even though lawmakers could dip into one-time budget surpluses to pay for transportation projects.

Hickman said he also doesn't like the governor's income tax plan. "I want to see personally a tax cut, not reform where some people would see a tax increase. . . . The governor's plan didn't convince me to pursue tax reform."

House leaders believe the compromise is a "cleaner hit" on removing the sales tax from food than the Senate's tax credit, meaning it is more likely to help people who most need it.

By cutting in half the lost revenue in the personal income tax, leaders may get the votes of some moderate Republicans, even some Democrats, who have opposed the so-called H3 income tax reform plan because it took $60 million out of the Uniform School Fund.

Hundreds of millions of dollars in one-time revenue surpluses could still go to roads, Curtis said. And even some conservative GOP lawmakers are looking at a $1.3 billion road bond

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