By Spencer Hunt
Enquirer Columbus Bureau

COLUMBUS - Joining ranks with Ohio's smokers and drinkers, House lawmakers say they won't pass Gov. Bob Taft's plan to raise taxes on cigarettes and booze to balance the budget.

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House Speaker Larry Householder, R-Glenford, said he may instead push for a temporary 1-cent increase in the state sales tax in April, but only if state finances are still in the red. Until then, he said lawmakers will pass a bill that would cover $531 million of an estimated $720 million budget shortfall.

Though Senate Republicans refused to rule out increased "sin" taxes Friday, the House GOP's decision is a major blow to the governor's short- and long-term budget proposals. It dares Taft to follow through on his threat to cut education funding if lawmakers don't immediately double alcohol taxes and raise cigarette taxes 45 cents per pack.

The governor's spokesman, Orest Holubec, said that is just what will happen if the General Assembly passes an "incomplete" budget package.

"The governor thinks his plan is the only responsible plan on the table," Holubec said. "We can't wait two months to see if there is a problem."

On Friday, the governor's office sent press releases outlining specific education funding cuts to each of Ohio's 88 counties. Greater Cincinnati schools and universities would lose $20.8 million by June 30.

For example, the University of Cincinnati would lose $3.7 million and Cincinnati Public Schools would lose $2.9 million. Lakota Schools in Butler County would lose $1 million and Mason Schools in Warren County would lose nearly $500,000.

The governor wants to raise the tax on cigarettes to $1 a pack and increase the 10-cent tax on a six-pack of beer to 20 cents.

If passed by Feb. 20, the higher taxes would raise an estimated $160 million for the budget that ends June 30. The tax increases would produce another $742 million for the governor's proposed $49.2 billion two-year budget plan that takes effect July 1.

Tobacco and alcohol taxes play key roles in Taft's plans to fix Ohio's twin budget dilemmas. The $720 million deficit in the current budget feeds into an estimated $4 billion shortfall over the next two fiscal years.

House Republicans, who must deal with both problems, said they won't be rushed and argued the state's fiscal picture may not be as gloomy as the governor says.

"There is some conflict as to how big the (budget) hole really is," said Rep. Tom Raga, R-Mason.

Others such as Rep. Bill Seitz, R-Green Township, are simply opposed to raising taxes at all, especially the cigarette tax. Lawmakers raised that tax from 24 cents to 55 cents a pack in July to resolve an earlier budget crisis.

"We raised the cigarette tax 129 percent," Seitz said. "People are reluctant to single this out now."

Raga said it's possible that a bill the House may pass Wednesday could balance this year's budget without any tax increases at all.

The plan would cut $122 million from agency budgets, accelerate state sales tax collections to produce a one-time increase of $288 million and spend $121 million from rainy day and reserve funds.

If a deficit remains, Raga said he's willing to raise the state sales tax 1 percentage point for only two months.

Holubec said the governor's budget estimates are solid. He said there's no guarantee lawmakers can pass a sales tax increase in April if they can't pass increased sin taxes now.

"The problem with waiting until April or May is we're even deeper into the (current) fiscal year," he said. "We can't make the cuts then, because most of the money is spent."

Senate Republicans also haven't ruled out higher sin taxes.

Sen. Bill Harris, an Ashland Republican and leader of the Senate Finance Committee, said he's concerned that the House budget plan may not do enough to balance the current budget and could add to the shortfall lawmakers face in the governor's two-year budget plan.

"The (Ohio) Constitution is very clear. The budget has to be balanced," Harris said.

Raga said he believes lawmakers can work out a compromise that doesn't raise taxes and still balances the budget.

Said Raga: "I assume our leadership will talk to the governor's office enough so that the bill we pass will address any concerns the governor has."

E-mail shunt@enquirer.com