TALLAHASSEE -- The state's barebones budget now has a $2.1 billion hole, state economists said in a Friday forecast that all but guarantees Gov. Charlie Crist will call a special legislative session to manage the deficit and consider what was once a non-starter: tax increases.

Due to the tight credit market, moribund housing industry and global financial crisis, economists projected the state will take in $1.39 billion less in tax collections than they had anticipated in August. Before Friday, the state already had a deficit of nearly $800 million.

As revenues decline and needs increase, the forecast is even bleaker for the next budget year starting July 1: a gap of up to $5.8 billion.

If all that money were cut, next year's budget would stand at roughly $60 billion -- slightly more than the 2004-05 spending plan. It would also mark an 18 percent decline in state spending in just three years.

Crist said Friday that it's ''not unlikely'' that he'll call a special session, but first he wants to ``take the temperature of the House and Senate [and] have a chance to really digest the numbers over the course of the weekend and consult with our economic advisors and decide by next week or so.''

Crist favors cutting state agency budgets and scouring savings accounts to plug the deficit. But he left open the possibility of eventually raising at least one tax -- $1 per cigarette pack that could generate $1 billion in a year.

''I haven't reached a conclusion on that,'' Crist said. ``I'd rather not if we don't have to.''

The date of a special lawmaking session is unclear. Crist laughed and said ''no'' when asked if he'll delay the call for a special session due to his Dec. 12 wedding.

House Democratic leader Franklin Sands of Weston praised Crist for considering revenue increases, but blamed the ''economic tailspin'' on GOP tax policies.

Democrats and advocates for schools, children, the poor and the elderly say the state can cut no more from the budget -- $4 billion smaller than last year's -- without causing serious harm to the most needy Floridians. They say Crist and his fellow Republicans need to consider new taxes, more efficient government and the elimination of tax exemptions.

Crist already took half of the $1.3 billion Budget Stabilization Fund to help plug the revenue hole identified in August, when the state's Revenue Estimating Conference projected a $1.8 billion hole. This time, he might tap the Lawton Chiles Endowment for healthcare -- a move that concerns Alex Sink, the state's Democratic chief financial officer.

The Chiles investment fund has lost a third of its value since June. It now has only $1.4 billion left. And cashing out investments is questionable because the state is doing so at the bottom of the market and won't get a good return.

''We're suffering a perfect storm with our investment portfolio,'' said Jerry Bowman, senior economist in Crist's office.

Of all the state revenue estimates that fell, investment earnings tumbled the worst -- almost by half. The earnings will reap the state $143 million now.

The Friday forecast shows that the ripple effect of the bad economy has become a tidal wave swamping Florida's finances. Only court fees and hospital fees will generate more money than expected this year -- the former because the Legislature increased them and the latter because of the increase in Medicaid payments from local governments.

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