COLUMBUS — Looking for help to tackle a growing $1.5 billion budget deficit, Gov. Bob Taft on Tuesday asked lawmakers to raise some business taxes, spend more “rainy day” funds and let Ohio join a multistate lottery.

        While Mr. Taft was touting his plan as the reasonable and responsible way to balance the $44.9 billion two-year state budget, majority GOP legislators offered little to no obvious support.

        Senate President Richard Finan, R-Evendale, held out hope Ohio's economy could rebound and revive sluggish tax revenues.

BUDGET PROPOSALS

Gov. Bob Taft outlined his proposals Tuesday to fill a $1.495 billion deficit in the state's two-year budget. Among his proposed sources of extra money:     • $600 million in spending reductions by state agencies.     • $465 million in tax-credit eliminations, including $125 million by taxing trusts and $80 million by taxing 800 telephone numbers and Wide Area Transmission numbers, or bulk-rate long-distance service purchased by companies or organizations.     • $279 million from the state's rainy day fund.     • $100 million from the state's share of the national tobacco settlement.     • $41 million by joining a multistate lottery, such as Powerball or the Big Game.     • $10 million from the state's funds for local governments.

        “I still believe in breaking this down incrementally,” Mr. Finan said. “I think the crucial time to get through is between now and the end of January of 2002.”

        Administration officials warned that a bad situation — which already promises state employee layoffs, shutdowns at mental hospitals and prisons, and higher college tuitions — will get worse if more money is not found.

        Budget officials painted a bleak portrait of the state's fiscal future, blaming it on a weak state economy that wasn't helped by the Sept. 11 terrorist attacks.

        Tuesday's projected $1.5 billion budget hole marks the third time in three weeks the deficit has grown.

        Funding cuts of 6 percent at most state agencies are expected to save $600 million.

        Mr. Taft wants lawmakers to pass a series of tax increases to help raise another $465 million by June 30, 2003.

        Among those increases is a new sales tax on the toll-free phone lines businesses offer customers and a plan to tax income from financial trusts.

        Lawmakers also were asked to release $279 million from the state's $850 million rainy-day fund. Another $100 million in tobacco settlement funds would be spent with a promise that it would be repaid by 2013.

        Mr. Taft renewed a request to let Ohio join a multistate lottery such as Powerball or the Big Game. That would raise another $41 million next fiscal year.

        The governor warned of a severe impact on state government services, focusing some of his comments on higher education.

        “I fear a tuition hike for students,” Mr. Taft said.

        Though prisons face a 3 percent cut, officials warn up to three facilities might be shut down.

        Reacting to the plan, Mr. Finan called the proposal to spend tobacco funds innovative, but said he's concerned about increasing taxes and spending rainy-day funds.

        House Speaker Larry Householder, R-Glenford, said he supports spending more rainy-day funds. He said it was too early to tell if any tax increases would pass.

        “I don't think we have any support for any kind of tax increases,” he said. Though later, he said, “I haven't looked at it enough to make a statement on it.”

        Neither legislator held out much hope for a multistate lottery.

        “That's not been very popular,” Mr. Finan said.

        Mr. Finan said he hoped to present an alternative plan within the next few days.

        He would not discuss what that plan might be.

        Other lawmakers said they think the governor could cut deeper. Rep. Jim Trakas, R-Independence, was critical of any tax increases and said more money might be saved by cutting high-salaried bureaucrats at various state agencies.

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