COLUMBUS — A temporary sales tax and new forms of gambling may be needed to pull the state through its financial crunch, according to the head of the Ohio Democratic Party.

        Denny White, who was elected to his leadership post in June, told The Enquirer the 31-cent cigarette tax increase put in place by Republicans in July won't solve the state's financial crisis.

        “We need to look at alternate sources of revenue,” he said, including “a temporary sales tax with triggers (that would decrease the tax) as the economy recovers.”

        In addition, Mr. White said, “gambling should be on the table.”

        Other Democrats, including gubernatorial nominee Timothy Hagan, were quick Wednesday to distance themselves from Mr. White.

        “Fortunately, Denny White is not running for governor. I'll take his political advice, but I'm not really interested in his policy initiatives right now,” Mr. Hagan said.

        “He's entitled to his opinion,” he added, “but I'm thankful he's not on the ticket.”

        Mr. Hagan said he would unveil his own approach to solving the state's fiscal approach after Labor Day. “People can then make a judgment about what (Republican Gov. Bob) Taft has done and what I'm willing to do.”

        Mr. Taft also hasn't laid out his plan to put state government in the black, but he hasn't ruled out tax increases, either. Orest Holubec, spokesman for Mr. Taft, said the governor is not interested in expanding gambling or in raising sales taxes, but added, “If a tax increase of that magnitude is to be considered, it would have to go before voters.”

        Going before voters may not solve the state's budget woes, though. More than $2 billion in rainy day and tobacco settlement funds spent to balance the budget this year won't be available in January when lawmakers sit down to work out a new two-year spending plan. Skyrocketing Medicaid expenses could require $2 billion more.

        While budget analysts say it's hard to imagine how state government can keep spending at current levels without massive cuts or a tax increase, voters have rejected attempts to expand gambling and sales taxes in Ohio.

        Voters in 1998 defeated a proposed 1-cent sales tax increase by a 4-1 margin. Since that crushing defeat, the proposal hasn't resurfaced in serious public debate.

        And a 1996 proposal that would have created riverboat casinos in Ohio was defeated with 60 percent of the votes cast against it.

        Mr. Taft has said he would not support video slot machines at Ohio racetracks without a similar vote of the people. Despite that, lawmakers and legislative leaders continue to hold out slots as a budget balancing option that could raise up to $200 million or more a year.

        Backers of expanding gambling say Ohio is losing millions of dollars to neighboring states that operate riverboats and give people more gambling options. Opponents, including the Rev. John Edgar, chairman of the United Methodist Church's anti-gambling task force, say new forms of gambling only increase addictions.

        “I find it baffling that the Ohio Democratic Party or any party would want to associate itself with something so harmful to our communities,” the Rev. Mr. Edgar said.

        Mr. White said allowing video slot machines at racetracks and other forms of gambling across the state could raise more money and ease the tax burden on homeowners and farmers. Citing a study by the Ohio Public Expenditures Council, Mr. White noted taxes on both property and agriculture have increased 98 percent in the last decade.

        He blamed Republicans who have long controlled state government for pushing local control and shifting the tax burden for education and other necessities to cities and townships. “Local control means higher taxes on your house and my house,” he said.

        Mr. White on Wednesday added that the only way a temporary sales tax should be considered is if the state also improved the economy and brought more jobs to Ohio. “You've got to put a program in where (a sales tax) wouldn't be permanent. You can't tax your way out of this problem,” he said.

        He added: “My job is to get Democrats elected. I shouldn't be out here saying what I would do. It's my personal opinion.”

        Dean DePiero, the Democratic House minority leader, said Mr. White is free to express his thoughts but added: “Whether it's a good solution or not is another story. I think the public is smart enough to realize he doesn't have a vote on what we do. I'd bet my house that Republicans will be talking about some kind of tax increase after the election.”

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