Topeka ? Gov. Kathleen Sebelius said Friday she would propose a plan to raise revenue — without increasing state taxes — as the 2003 legislative session reached its midpoint and tax receipts continued to plummet.

“We need some additional revenue in order to close the books on this session,” Sebelius said at her weekly news conference, promising to unveil a revenue package by March 17.

Shortly afterward, the state released preliminary figures for February that showed falling tax collection and a struggling economy.

“We’re going to have a problem balancing the budget at the end of the session,” said Senate President Dave Kerr, R-Hutchinson. “At the end, something is going to have to give.”

The debate now is whether state officials will enact deeper budget cuts, including a whack at public schools, increase taxes or approve a combination of reductions and tax hikes.

Most state agencies have been cut recently by about 7 percent, but public school funding has remained relatively the same.

Sebelius, a Democrat, said she would not cut school funding and that there was little left to slice elsewhere in the budget. She also spoke against increasing taxes, but the only revenue generator she mentioned was expansion of gaming.

House Speaker Doug Mays, R-Topeka, said increased gaming wasn’t a realistic fix. Even if the Legislature approved one of the various proposals, it would take a long time to establish and produce revenue for the state, he said.

“Gaming is not the answer to our immediate problem. We are either going to have to make some further cuts or taxes will be increased,” he said.

Tax revenue figures for February continued to paint a bleak fiscal picture. Receipts were $18.5 million under projections for the month, bringing the revenue drop-off to $50 million for this fiscal year.

Sebelius called for a new revenue estimate to be made March 7, saying she would release her revenue package seven to 10 days after the recalculation of how much the state will collect in taxes.

But top legislators are refusing to allow their budget staffs to participate in the March 7 exercise.

Kerr and Mays said it was difficult to get an accurate revenue estimate in early March because most people hadn’t filed their tax returns.

“It’s not helpful to have multiple targets,” Kerr said.

But Kerr and Mays said they would eagerly await Sebelius’ package of revenue enhancements. Kerr noted that Sebelius won a statewide election in November saying she could fix the budget without cutting schools or raising taxes. “We are trying to defer to her wisdom,” he said.

The Senate on Friday approved a measure that was seen as the first step toward Kansas taxing Internet sales.