COLUMBUS — Ohio is facing a $400 million deficit this year and could see a deficit twice that high next year, state leaders said Wednesday.

        Word of the deficit comes less than four months after lawmakers wrangled for weeks over how to close a previous $1.5 billion hole.

        “We are clearly facing a deficit for the current year,” said Gov. Bob Taft. “It could be in excess of $400 million at this time.”

        House Speaker Larry Householder said Ohio could see a $600 million to $800 million deficit next fiscal year, which begins in July.

        Mr. Taft said he'll announce a proposal to deal with the deficit next week, including additional use of the state's $1 billion rainy day fund. But he ruled out a tax increase.

        About $400 million of the rainy day fund has been set aside for meeting previous deficits but hasn't been used yet, said Timothy Keen, Mr. Taft's assistant budget director.

        Mr. Householder said House support for using more of the rainy day fund was unlikely. “The problem with the rainy day fund is once you use it all, then you're backed up against the wall.”

        From mid-December, when Mr. Taft signed the bill closing the $1.5 billion deficit, through February, the state took in $233 million less in taxes than predicted.

        Overall tax revenues for December were up by $13 million but fell $161 million below estimates in January and $85 million below estimates in February, said Sam Nemer, senior budget analyst for the Office of Budget Management.

        Sales tax revenues have remained above estimates, a sign that the economy is improving, he said. But income and corporate franchise taxes, which typically lag changes in the economy, remained below estimates, Mr. Nemer said.

        Mr. Keen said the state continues to hold off using any of the rainy day fund until absolutely necessary.

        Use of that fund “is the last resort, in our opinion,” he said.

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