And while Senate President Bill M. Harris, R-Ashland, remains uncommitted to any particular budget solution, he said yesterday that the Democrat-backed income-tax plan would be bad for small business and, in turn, bad for jobs.

Voters will decide Tuesday whether casinos should be built in Columbus, Cleveland, Cincinnati and Toledo. Meanwhile, some in the Statehouse are looking for wiggle room in the constitutional amendment that could benefit the state budget, even though most revenue is earmarked for local governments.

Gov. Ted Strickland has proposed, and the Democratic-controlled House has passed, a plan to delay the 4.2 percent state income-tax cut that took effect Jan. 1. That would generate money to replace what was lost when the Ohio Supreme Court blocked Strickland's plan to place slot machines at racetracks without a statewide vote.

The plan now sits in the lap of the GOP-controlled Senate, which is not expected to take action for at least three weeks. A number of Republicans have labeled it a tax increase, including Sen. Keith Faber, the Senate's No. 3 Republican.

"I'm a little concerned and troubled that we are looking at a way to balance this budget hole that raises taxes on small business," the Celina Republican told state Budget Director J. Pari Sabety during a lengthy committee hearing on the income-tax plan.

Later, Harris said: "All of the small businesses that I've talked to, including my sons', feel that it is absolutely a tax increase."

Harris has been adamant in the past that he will not vote to raise taxes. Democrats have called the plan a tax-rate freeze, not an increase.

"We feel that especially small business would be very adversely impacted, and the result of that is to eliminate jobs," Harris said. "Any job that we have we need to hold onto with both hands and do anything we can to protect it."

Harris said his members are still examining all budget ideas.

One option could take advantage of the $200 million in casino-licensing fees that would be paid to the state if Issue 3 is approved. The proposal says the money is to be earmarked for "state economic development programs which support regional job training efforts."

Some lawmakers say higher education is the ultimate job-training effort.

"That's fairly broad, non-specific language," Sen. Mark Wagoner, R-Toledo, said of the amendment. "A lot of the discussion of education reform we've had over the last six months is the role of education in economic development. You could make a good-faith argument that we could use that

$200 million and put it into education."

Sen. Bill Seitz, R-Cincinnati, agreed. "There is no question in my mind that the $200 million could be applied to programs by the Board of Regents, and then that (state tax) money could be redirected to (grades) K-12."

Sabety said she wouldn't rule out the possibility, but added that it could face legal hurdles, noting that parts of the amendment say casino money cannot supplant state money.

Sen. John A. Carey Jr., chairman of the Senate Finance Committee, was not enthusiastic about the idea.

"I don't think that's our caucus position at this point," the Wellston Republican said. "Individual senators may think that's a good idea."

Senate Democrats, joined by a number of labor union leaders, yesterday urged Republicans to pass the income-tax plan. The bill also includes a 5 percent salary cut for lawmakers.

"It is so troubling to me when I see elected officials who have the responsibility to lead, playing games," said Sen. Ray Miller, D-Columbus. "Bottom line, there is no room for partisan posturing and small-room bickering."

jsiegel@dispatch.com