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Business I Dl Phelps Dodge mining town on auction block Today- Rem goes here Ro 7: From Napolitano's first day as governor. Page Ai WEATHER Partly cloudy High 72 Low53 PageB12 )NS season. But, win Learn more on A2 TO READ THE REPUBLIC Final Chaser THE ARIZONA ffiPUMC TUESDAY JANUARY 7, 2003 50 CENTS Arizona Living I El Plus-size competition for Barbie I IV' -j WHASl Today's iMsii unvei GCOfKMIfl pian lop Inside Hopes bold proposal mutes criticism How the Bush plan stacks up vs. the Democrats' plan. A4.

receive an average $1,473 cut. Administration officials, bracing for more Democratic criticism that the plan tilts toward the wealthy, contended all citizens would benefit from more confidence in the financial markets. "When the stock market was going down, Democrats linked it to the economic health of the nation," a GOP official said. "Now they can't turn around and it's just an, elite thing." By Jonathan Wcisman and Mike Allen Washington Post WASHINGTON President Bush will unveil a $600 billion economic stimulus plan today that is far bolder than proposals under consideration only a week ago. The president hopes to answer Democratic criticism that he has done too little to boost the economy and conservative concern that his new economic team will be overly cautious.

The plan would eliminate all taxes on corporate dividends paid to shareholders, not just cut them in half, as originally proposed. It would accelerate income tax cuts planned as far forward as 2006, not just those scheduled for 2004 under current tax law. It would boost the child tax credit by $400 and accelerate tax relief for married couples, two proposals that were nearly dropped. White House spokesman Ari Fleischer said that under the proposal, each of the nation's 92 million tax filers would receive an average 2003 tax cut of $1,083, 46 million married couples would receive average cuts of $1,716, and 34 million families with children would GOVERNOR JANET NAPOLITANO: DAY 1 'Building a new Arizona' Smoking ban may go to vote But Tempe election faces many hurdles Li 1 Don't miss these local stories inside today's Republic: Puppy survives On Sunday afternoon, a 7-week-old German shepherd mix was tossed from a moving vehicle in far north Phoenix. The dog was nearly struck by two other vehicles before she was rescued.

Local, BL Rates changing Cox Communications will jack up rates on its high-speed Internet service and its most stripped-down television offering but will hold the line on its most popular cable package. Business, DL Out of time The Arizona Cardinals fired General Manager Bob Ferguson, offensive coordinator Rich Olson and defensive backs coach Kevin Ramsey on Monday in a house-cleanings Sports, CL Runway a 'go' After several years of planning and a failed attempt at an injunction by Tempe, the center runway at Phoenix Sky Harbor International Airport was closed on Monday for repaving. Local, Bl. High marks Fifteen Arizona cities grade above average for financial strength, despite growing pains and a weak economy, a new report says. Business, D4.

WORLD Ready for war Iraqi President Saddam Hussein accused U.N. weapons inspectors of espionage Monday and pronounced his nation ready for war, casting doubt on diplomatic efforts. AlO. 1 I By Alia Beard Rau The Arizona Republic The future of smoking in Tempe could be back in voters' hands after bar owners battered by a 6-month-old public smoking ban gathered enough signatures for a revote. But the battle is not yet won.

Elections i fi officials on Monday approved 12,299 signatures, about 400 more than needed. But they threw out 39 percent of the total Inside Most states get "F's" on anti-tobacco report cards. A9. "Wake-up call for Arizona." B6. 1 i A 22,316 signatures arid announced they would investigate the' petitions for fraud.

Smoking opponents are threatening a court challenge and the strapped city may be forced to either accept private funds for a special election or postpone a vote until 2004. And the final outcome does not affect just Tempe. Cities Valley-wide are closely watching the See SMOKING Page A2 Jack KurtzThe Arizona Republic Noon lanet Napolitano waves to the crowd Monday after being sworn in as Arizona's 21st governor, while her fa-liuun tneii eonar( shakes hands with former Gov. Rose Mofford. Napolitano optimistic as she becomes state's 21st governor ernor of Arizona.

Swarms of people were eager to press her flesh, wish her well and get some time with Arizona's acentralcom Read Janet Napolitano's inaugural address at links.azcentral.com. i INDEX REASONS TO READ THE REPUBLIC By Chip Scutari and Christina Leonard The Arizona Republic The new governor leaned out her ninth-floor balcony, standing on her tiptoes to soak up the majestic view of downtown Phoenix. A cloudy sky hovered and the faint sound of a mariachi band could be heard as crowds of people crawled like ants nine stories below. It was 10:45 a.m. Monday.

Janet Napolitano, who would be sworn in as Arizona's 21st governor in an hour, kept gazing up at the clouds to see if the weather would cooperate. Like an excited kid checking out a new toy, she walked back and forth from her new desk to the balcony. She paced around the hallways to calm her nerves. "It's a carpe diem, seize the day, type of moment for me," she said. "The weather just can't decide what it wants to do Hey, I can get used to this view." It was Janet Napolitano's first day as gov- new cruet executive.

There was one constant: At every event, in every meeting and in every car ride from start to finish, she was accompanied by her No. 1 fan and closest friend: her dad, Leonard. A YOGURT AND COFFEE 7:30 a.m.: Up for an hour, Napolitano, 45, is wearing a black smock tied around her neck as makeup artist Mary Fennello applies eyeliner. Her last breakfast as governor-elect: yogurt and French roast coffee. Hold the cream and sugar.

"The first thing I heard this morning is Market report: Dow industrials 171.88; NYSE 9.55Nasdaq 34.24; 20.42. Business, Dl. CLASSIFIEDS Today, there are 3,118 ads, including 2,275 for autos and 217 for homes. Classifieds, CL1, behind the Arizona Living section. See GOVERNOR Page A6 Arizona hits D.C.

bigger and stronger By Billy House Republic Washington Bureau WASHINGTON Arizona's new congressional delegation takes office today, bigger than ever and potentially more powerful. Members have gained or are retaking important Senate leadership and committee posts and occupy an additional two House seats. The state now has eight of the 435 House seats, with three of the eight held by freshmen. Not since Arizona elected a new senator and two new House members in the 1994 elections has its congressional delegation, and its potential clout on Capitol Hill, changed so dramatically. The state has two Republican senators, and six Republicans and two Democrats in the House of Representatives.

"Clearly Tennessee is the state that has gained the most, with the election of Senator (Bill) Frist as See ARIZONA Page A2 7 1 ipi.mii i Reason 7 BEHIND THE SCENES ON THE FIRST DAY We were with Gov. Janet Napolitano from sunrise to sunset, from her first cup of coffee to her last speech of the day. We drove with her from meeting to meeting in her private car, checked out her new view from the ninth floor balcony at the Capitol and watched her prepare her inaugural speech. Here is a look at her first day in office. Inside Photos of our new governor as day unfolds.

Plus, all the parties. A7. Speech highlights. A6. Top officials also sworn in.

State Capitol, B6. Next Sunday Where's the fat in Arizona's budget? AL Arizonans are mildly optimistic about the new leadership. Viewpoints. People E2 Puzzles E4.S Sports TV C2 Stocks OS Television E6 Things to do B2 Valley 101.... B12 Weather B12 Astrology E5 CU Comics E4, CL4 E5 Lottery B2 Montini B3 B8.9 BIO, 11:45 a.m.

David Napolitano cheers for his aunt during Napolitano's inauguration ceremony Monday. 1 113th year No. 234 A Gannett Newspaper Copyright 2003, The Arizona Republic News tips: i i 1 (602) 444-NEWS (6397) Circulation: (602) 444-1000 3 Classified: (602) 4447355 Jack KurtzThe Arizona Republic -5 RHPlDLICi mr i careeibuiirJer cut builder.