COLUMBUS — The state budget crisis continues to grow even as lawmakers work on a bill to fix it.

        Senators hearing testimony on a bill designed to plug a $1.25 billion deficit were told Wednesday the deficit through June 2003 is actually $1.75 billion.

        The Legislative Service Commission, a non-partisan agency that provides technical and research services to the General Assembly, reported that Ohio faces a $250 million deficit before June 30, and another $250 million in fiscal year 2003.

        That's on top of the $1.25 million deficit already projected by the governor's Office of Budget and Management.

        “I think the situation is still pretty fluid,” said David Burnson, a division chief with LSC. “I think there is still a good deal of swing left in these numbers.”

        Swing or not, it appears lawmakers are preparing for a worsening situation.

        Sen. Jim Carnes, R-St. Clairsville, said he expects the budget bill to pass his Senate Finance Committee next week, with a 50-cent cigarette tax increase intact.

        “Hopefully we'll not only solve our tremendous deficit, but we'll stop some kids from smoking,” Sen. Carnes told a room packed with anti-smoking advocates prior to Wednesday's budget hearing.

        In addition to what's already in the bill, lawmakers reportedly are looking at deeper budget cuts, possibly even to previous untouchable areas such as Medicaid and primary and secondary education.

        Sen. Lynn Wachtmann, R-Napoleon, said he expects to see items in the bill that will entice some fence-sitters to vote in favor of the cigarette tax.

        He expects that to include additional cuts.

        Gov. Bob Taft does not support cuts to education, “but everything else is on the table,” said spokesman Joe Andrews.

        The Legislature also may give Mr. Taft the ability to temporarily furlough state employees.

        Mr. Taft has discussed the possibility of laying off employees for up to 10 weeks at a time.

        “These are all things we'd like to have in our pocket in case we need them,” Mr. Andrews said.

        The big debate Wednesday was over the cigarette tax, which will increase from 24 cents to 74 cents under the new bill.

        Anti-smoking and health advocates rallied wearing “50 cents makes sense for kids” T-shirts. They argued that raising the tax will help price kids out of the market.

        On the other side, a coalition of tobacco and business supporters gathered to protest the tax increase, saying it will destroy some merchants and drive customers to border states or the Internet.

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