Topeka ? The lines deepened Friday between those wanting a tax increase and those wanting more cuts as a new revenue estimate revealed a $510 million state budget hole and a shaky economy.

State Rep. Kevin Yoder, R-Overland Park, (left) and chair of the House Appropriations Committee, talks with Gov. Mark Parkinson's budget director Duane Goossen on Friday at the Statehouse. New revenue figures showed the state in an estimated 10 million hole. Parkinson has called for a tax increase, but Yoder and House Republican leaders oppose new taxes.

Given the revenue free-fall over the past year of recession, Gov. Mark Parkinson’s budget director Duane Goossen said the dropping revenue figures were expected. Previously the shortfall had been in the $450 million neighborhood.

Alan Conroy, director of the Kansas Legislative Research Department, said the state economy shows “flickers of hope” but added, “at best, the economic recovery is anemic at this point.”

The new report, produced by state budget experts and economists, gives the Kansas Legislature a target when it returns April 28 to write a budget during the wrap-up session.

Reaction was quick.

Parkinson said a tax increase is needed to shore up the staggering state budget, which has already been cut by $1 billion. He has proposed a temporary state sales tax increase of 1 cent from 5.3 cents per dollar to 6.3 cents per dollar, plus a 79-cent per pack increase in the cigarette tax.

“This hole is too big to fill with additional cuts. $510 million in cuts would decimate our schools, public safety programs and safety net services for our most vulnerable Kansas,” Parkinson, a Democrat, said.

He was backed up by advocates for public schools and higher education.

Kansas Board of Regents Chair Jill Docking said additional budget cuts “would devastate a system already crippled by cuts.” Higher education has been cut 13 percent over the past year, which has led to layoffs, fewer class offerings and tuition increases, she said.

Kathy Cook, executive director of Fund Our Public Schools, said, “We have only once chance to educate the next workforce for Kansas; if we destroy our education system we destroy our chance for economic recovery.”

House Democratic Leader Paul Davis of Lawrence said public schools, higher education, and Kansans with disabilities could not take another round of budget cuts. “Now, it’s time to make the tough choices that we knew were inevitable,” he said.

But House Appropriations Chairman Kevin Yoder, R-Overland Park, said a tax increase would hurt Kansans who are struggling and that the major problem in the state is unemployment. “Would a tax increase help small business hire people again? I don’t think it will,” Yoder said. Yoder and House Republican leaders back a budget plan that keeps the lid on state taxes, but critics say will force local property tax increases to make up for lost school funding.

Conroy said the major problem facing the state now is the unemployment rate of 6.9 percent, which is expected to hover around that level for the next year. Conroy said the high jobless rate reduces individual income taxes, one of the major sources of state government revenue.

The new revenue estimate showed an immediate $70 million shortfall in the current fiscal year that ends June 30. The hole could grow from $450 million to $510 the next fiscal year.

Meanwhile, the anti-smoking group, Tobacco-Free Kids, said the Legislature could raise $100 million through a $1 per pack cigarette tax increase, and similar increase on other tobacco products.

The organization said the proposal should be a no-brainer for legislators because a recent poll showed 69 percent of Kansans support the $1 per pack increase.

Whatever the solution, legislators said they faced a tough road ahead. “There is no good or popular option that will get the job done,” said Senate Republican Leader Derek Schmidt of Independence.

Budget committees will start meeting next week to prepare for the wrap-up session.