AUGUSTA – Even as work continued Monday on the state’s supplemental budget, majority Democrats in the House and Senate were asking the governor to consider new revenue sources, including possibly a penny increase in the sales tax, to fund a property tax relief plan.

Democratic leaders stopped short of saying that final approval of the $160 million budget plan would have to be linked to Gov. John E. Baldacci’s support of a property tax relief proposal. Still, John Richardson, House majority leader, signaled there were some members who may feel that way.

“There’s a certain reluctance to take a final vote on the budget prior to at least understanding what tax reform is going to look like,” said Richardson, a Brunswick Democrat.

Meanwhile, a scheduled meeting of the Legislature’s Appropriations Committee called to conclude action on the budget had not taken place late Monday afternoon. Legislative staff indicated that there were problems with the Democratic majority budget agreed to early Friday morning and that numbers had to be re-evaluated to ensure the plan actually balanced.

Appropriations Committee members divided along party lines on the Democratic majority budget plan that reflects much of Baldacci’s original proposal. New revenues from the state’s entry into the Powerball lottery will be relied upon partially to offset a $128 million Medicaid shortfall and infuse local education funds with an additional $15 million.

Baldacci originally proposed $80 million in cuts to an array of Medicaid programs, but those reductions were decreased to about $60 million under the Democratic plan. The proposal also contains revisions that have been characterized by Republicans as tax increases affecting hospitals, nursing homes and pharmacies.

Pending final action by the Appropriations Committee, the House is scheduled to take up the budget this week. House Speaker Patrick Colwell, D-Gardiner, told lawmakers that leadership would like to adjourn the special session by Friday.

Those plans could be complicated should Democrats insist on holding the administration’s feet to the fire over any one of a number of tax relief plans, including one that proposes to add another penny to the state’s 5 percent sales tax. If approved, the new tax would add another $150 million in revenue that proponents maintain would be used to beef up Maine’s Homestead Exemption Program and circuit breaker tax rebate program for renters and fixed income residents.

Senate Majority Leader Sharon A. Treat, D-Farmingdale, said the proposal has the support of some Republicans as long as the extra money is used exclusively for tax relief or additional educational funding.

“There are many people – particularly Democrats – who do not want to leave this building without having done something for property tax relief and reform as well as the budget,” she said.

House Republican Leader Joseph Bruno of Raymond said he didn’t know the source of Treat’s information about Republicans who he said would not support increased taxes.

“We don’t want to increase a tax so that we can lower a tax,” Bruno said.

“I agree; that’s a stupid idea,” said Senate GOP Leader Paul Davis of Sangerville. “[Democrats] have tried this over and over and it won’t work.”

Richardson sided with Treat saying something had to be done about tax relief. He expressed a willingness to consider a penny increase on the sales tax depending on “what other options were out there.”

Baldacci, according to administration spokesman Lee Umphrey, remained adamantly opposed to the notion of increasing the sales tax and reiterated Monday there was “no way” he would approve such a plan.

Bruno and other Republicans took little solace in Baldacci’s pledge, claiming he already had endorsed higher taxes on nursing homes and hospitals.

“He’s flip-flopped so many times, we don’t know what message he’s trying to send,” Bruno said.