"And tobacco revenues increased by about 10 percent despite the fact that shipment volume went down slightly."

Liggett gets much of its tobacco revenue from discount cigarettes, which provide a lower profit.

The income tax would only be a fallback, or insurance, if the state's tobacco revenues were not sufficient to meet debt obligations, officials said.

But, he continued, "you might say the state is addicted to tobacco revenues."

He said that receiving tobacco revenue all at once would not increase the state's debt.

All of the additional money sought by Mr. Clinton would be derived from an increase in tobacco revenue.

Domestic tobacco revenue rose 8.8 percent, to $3 billion.

In a news conference, the governor was adamant that the state's fiscal health hinged on securing the tobacco revenues.

But that amount would be $234 million less than the $588 million in tobacco revenues the county would otherwise receive.

The tobacco revenues come from a settlement reached in November 1998 between 46 states and the major tobacco companies.