ATLANTA -- The chairman of the Senate Appropriations Committee renewed his call for an overhaul of the state's sales tax, saying the current budget deficit could provide the spark to make changes.

Sen. Jack Hill, R-Reidsville, told a group of advocates for greater spending on social services Thursday that this fiscal year's budget deficit could balloon to $2 billion and require cutting as much as 11 percent of the budget to balance it. That could cause leaders to consider changes in where the revenue originates.

One area for reform, said Hill, is the current sales-tax system, which had not been growing in recent years as the state's population and overall economy had expanded before the recession began.

"I would not argue that our revenue structure, particularly the sales-tax side, does not reflect the growth in the economy," he said. "Our sales-tax revenue is essentially flat. ... Our sales-tax structure does not cover the present purchasing of services and the way we spend our money that has moved away from the items that are covered."

He has often proposed a commission to study the matter and offer recommendations. He said he favors adjustments that would not bring in more taxes immediately but would grow faster when the economy did.

Hill made his comments at a seminar hosted by the Georgia Budget and Policy Institute which issued a recommendation to raise some taxes and limit breaks given to businesses and parents. The added money would reduce the need for budget cuts.

Raising the income tax from the maximum 6 percent to 7 percent on couples that earn more than $400,000 would bring an additional $220 million, for instance, according the policy institute's figures. More revenue could come from limiting the child-care credit that high-earning families claim, delay implementation of a tax break for insurance companies selling high-deductible health plans and boost the cigarette tax $1 per pack.

The tax increases are necessary, said Policy Institute Director Alan Essig, because there is little waste left to cut out of state spending.

"We are going to either have a state budget that does less -- and this is not a state that does a hell of a lot now -- or do something to enhance revenues," he said.

There is little mood among lawmakers to raise taxes, though.

Hill said he favored freeing up cash by eliminating duplication in state government and improving efficiency.

Asked specifically about the prospects of increasing the tobacco tax, which polls show would be the one proposal supported by a large majority of the public, Hill was doubtful.

"I guess it depends on the case that could be made for it," he said. "... I would say the chances for it in the Senate would be dim."

Changes in the tax system come slowly, he said, and all of the state leaders need to agree first.