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The State at 1 p.m.

Associated Press

Posted on December 8, 2009 at 1:03 PM

The supervisor is Mark Carlson. We can be reached at (602) 258-8934 or toll-free at (800) 352-4093. AP stories, along with the photos that accompany them, can also be obtained from http://www.apexchange.com.

For technical problems call AP Services and Technology at (602) 258-5118 or (800) 423-7764.

To transmit a photo, call New York Photos toll-free at (888) 273-6867. For repeats or questions about GraphicsNet call 212-621-1905.

STORM-ARIZONA

FLAGSTAFF — Northern Arizona residents were digging out of a storm Tuesday that left record snowfall, knocked out power to tens of thousands, shut down two major interstates and kept children out of school. Flagstaff city officials encouraged employees not to rush to work on roads that were snowpacked and icy and delayed the work day for nonessential employees. Meanwhile, crews in metro Phoenix struggled to restore power to tens of thousands of customers. By Felicia Fonseca.

SHOPLIFTING-JURY TRIALS

PHOENIX — An Arizona appellate court on Tuesday revisits the issue of whether people accused of shoplifting are entitled to jury trials. The Court of Appeals will issue a decision in the case of a woman who was denied a jury trial for a case from Peoria.

By Paul Davenport

SUPERVISORS INDICTED

PHOENIX — Maricopa County prosecutors added heat to their battle with the county's supervisors on Tuesday, announcing a new indictment naming Supervisor Don Stapley and another naming Supervisor Mary Rose Wilcox.

POLYGAMIST TRIAL

ELDORADO, Texas — Texas Attorney General Greg Abbott made a surprise appearance Tuesday at the trial of a polygamist group member, to question potential jurors in the sexual assault case. Abbott appeared at the prosecutors' table for the start of jury selection in the case against 57-year-old Allan Keate. Keate faces up to life in prison if convicted of sexual assault of a child for his alleged "spiritual marriage" to a 15-year-old.

INDIAN MONEY

WASHINGTON — The Obama administration says it will spend more than $3 billion to settle a long-running and contentious lawsuit over royalties owed to American Indians. President Barack Obama hailed the settlement of the case, known as Cobell v. Salazar, as an important step to reconcile Indian tribes and the federal government. By Matthew Daly.

WILD HORSES

SPARKS, Nev. — A government plan to round up and relocate thousands of wild horses in the West faces opposition from advocates who say the proposal is inhumane and unnecessary. At a hearing near Reno, two dozen advocates pressed the U.S. Bureau of Land Management's National Horse and Burro Advisory Board Monday for a moratorium on roundups until an independent audit of mustang numbers can be conducted. By Martin Griffith.

AP Photos FX107, NY109, GFX317. AP Graphic WILD HORSES.

EARNS-KROGER

CINCINNATI — The Kroger Co. is hurting from California's especially soft economy and the overall bite of a dollar-by-dollar battle under way nationwide for recession-pinched households' grocery spending. The nation's largest traditional grocery chain reported Tuesday an $875 million third-quarter loss, largely because of a $1.05 billion charge to write down the value of its Ralphs division in California, which it acquired a decade ago. Even without that, its profit fell more than 25 percent. By Business Writer Dan Sewell.

AP Photo NYBZ164.

Also note:

— REC CENTERS-GUNS — Some Sun City residents are accusing the board that runs recreation centers of trampling on their Second Amendment rights.

— NAVAJO TRUST-UTAH — Lawyers for Utah's 7,500 Navajos say they're close to settling a lawsuit alleging Utah failed to properly manage a trust fund that collects royalties on reservation oil wells.

— DURANT'S FIRE — Firefighters say a blaze that broke out at the landmark Durant's steakhouse in central Phoenix on Tuesday was quickly controlled.

— ARIZONA BUDGET-BORROWING — The state says it's on track to obtain new financing that Treasurer Dean Martin says Arizona needs to avoid having to issue IOUs for state paychecks and other payments in February.

— SMALLER JURIES — Arizona law requires 12-member juries for trials of defendants facing prison sentences of at least 30 years, but a new court ruling says eight-member juries are OK when prosecutors commit that they won't seek sentences that long.

— POWER OUTAGES — Arizona Public Service Co. crews are busy attempting to restore power after a Monday night storm slammed the greater Phoenix area. APS spokeswoman Jenna Henry said about 9,500 customers are without power.

— POOL PLEA — The second of two brothers who co-owned a Yuma pool construction company faces up to a year in prison under terms of a plea agreement.

— APS RATE HIKE — Arizona Public Service Co. wants the rest of a rate hike it's been asking for since March 2008.

— EDC DIRECTOR — The Rhode Island Economic Development Corporation has approved a new leader, with a salary of two-and-a-half times that of her predecessor.

— COLANGELO-RESORT — Former Phoenix Suns owner Jerry Colangelo and others plan to acquire the bankrupt Wigwam Resort west of Phoenix for $45 million.

— CANAL-DRY UP — The Salt River Project has begun draining canals south of the Salt River for annual maintenance.

TOPIC: OVERDUE HEADSTONE

PRESCOTT — The deceased remain alive as long as someone remembers them, as the saying goes. Juanita Clarke Chesley probably is the only person alive who remembers her brother, Irvin Clarke. By Joanna Dodder Nellans.

AP Photo of Dec. 7: AZPRE101.

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