Topeka ? Gov. Kathleen Sebelius won’t rule out proposing a tax increase to finance state government but insisted Thursday that more savings can be found within agencies first.

During a news conference, she said raising taxes was one option “on the table” as she prepares her budget proposal for fiscal 2005. The budget will be presented to legislators in January.

“I think that there is every belief that we need some additional revenue in Kansas for some of the promises that the Legislature has made over the years that really aren’t being kept,” Sebelius told reporters.

In 1999, legislators enacted a 10-year, $13.6 billion transportation program and promised to increase spending on higher education. Since then, they’ve also discussed increased spending on public schools to boost teacher salaries and improve programs.

But slower-than-expected revenue collections have siphoned money from highway projects, prevented legislators from keeping their promise on higher education and kept the state from providing large increases in aid to public schools. Under the current budget, most of the state’s aid to cities and counties was eliminated.

During her 2002 campaign, Sebelius repeatedly promised a “top-to-bottom” review of state government, saying the efficiencies she’d impose would help the state preserve funding for education without higher taxes.

In one debate, she declared: “No one is talking about a tax increase. We need to do more with less.”

After the election, Sebelius said she could not ask struggling families to pay higher taxes until she could assure them that government was as efficient as it could be.

Senate President Dave Kerr said the governor’s latest statements also run contrary to her comments during the 2003 session. Then, Kerr said, Sebelius maintained that raising taxes in a down economy was not prudent.

“What has changed?” he said. “I do not see a robust economy.”

Sebelius suggested Thursday that the state could eliminate hundreds of positions that were currently being held open or by putting jobs performed by the Department of Administration in existing state agencies.

“We’re looking at the whole range of issues,” Sebelius said. “I am determined to find every possible savings and efficiency we can throughout state government before we look at imposing any new taxes on Kansans.”

In addition, Sebelius said Transportation Secretary Deb Miller was confident that the agency could trim $300 million from the transportation program.

The state relied heavily on bonds and motor fuels taxes to finance the program. Sebelius said refinancing the bonds and recalculating the costs of projects would save money and allow the program to be completed as promised.

Kerr said Sebelius’ top-to-bottom review, while finding savings, was coming up short nine months after the election.

“We just aren’t seeing the production that we were promised,” Kerr said.