Utah's educational system is producing quality while dealing with quantity, the state superintendent told Gov. Norm Bangerter Thursday.

The annual report, presented by James R. Moss, outlined "excellent progress in the past year." The state continues to provide its students "the best possible education at the least possible expense."Moss, who is required by law to make the annual report, told the governor that the 1988 report concentrates on key issues. Some of the issues were based on Bangerter's requests during his 1988 State of the State address.

They include how education is becoming more accountable, how quality is being generated, how student equity is protected, how innovation and reform are being incorporated into the program and how education is addressing the future of economic development in Utah. (See box.)

Moss said his visits to the state's 40 districts indicate they are among the most cost-effective in the country.

Bangerter accepted the report, saying it will be reviewed by his office and by the Legislature.

"We are all aware of the challenge we face to provide new tools to keep our young people competitive," Bangerter said. He pledged his continued support for a strong educational system in the state.