Gov. Olene Walker wasn't about to waste time settling into her gubernatorial office.

Rather, Utah's new governor hit the ground running Thursday in her first full day on the job, meeting with Republican legislative leaders, her staff and then a team of economic advisers.

And the news on the economy, while not as bleak as in recent years, was still far from what Walker had hoped.

"We're seeing a little light at the end of the tunnel," she said, "but we're not out in the sunshine."

Tax revenues are up almost $11 million over projections. But revenue growth remains anemic, and Walker admitted the projections for the current budget year and the next are probably not good enough to bolster education funding above current levels.

The governor revealed she will probably look to recapture general tax revenues now being spent on highways and water development, replacing them with user fees and redirecting the tax revenue to education. But even that won't be enough, given the state's population of school-age children.

So, does that mean a tax increase is in store?

"I will have to analyze that very carefully," she said. "At some point we will have to make very tough decisions."

Those tough decisions will require the assistance of the GOP-dominated Legislature, and leaders there have already indicated they do not support a tax increase.

Legislative leaders described their Thursday morning breakfast with Walker as "cordial," while Walker said it was a chance to renew old friendships.

"We have a lot in agreement and we see a lot of things the same way," said Senate Majority Whip John Valentine, R-Orem. "But we have a lot of disagreements, as well."

Perhaps the biggest is tuition tax credits. Walker has come out in opposition to the credits, while legislative leaders are united about moving forward with them in the general session.

Senate Majority Leader Michael Waddoups, R-Taylorsville, said much of the meeting was devoted to outlining an agenda for the legislative special session scheduled for Nov. 19. Among the items being considered are remedying the beer tax, amendments to state trust law, changes to state election law and changes to the law that allows special fire service districts.

Leadership was impressed with her grasp of the state budget and her charm while setting out her agenda.

"She wanted us to be comfortable with her as the governor and to let us know she knows our system," Waddoups said. "She was letting us know there will be a smooth, seamless transition, but with her own imprint."