That's Gov. Gary Locke's $504 million solution to closing a huge budget gap and balancing a $26.2 billion state budget without resorting to general tax increases. His "sin tax" plan hits drinkers, including beer-guzzlers, wine snobs, cocktail lovers, and even kids who quaff soda pop.

"I'm glad I drink water," quipped the new Senate budget chairwoman, Margarita Prentice, D-Seattle.

The alternative of a no-new-tax budget is too awful to contemplate, the lame-duck Democrat said Thursday in releasing his last budget plan before he leaves office in a few weeks.

Even with the new revenue, Locke is proposing $1.3 billion in spending cuts, assorted fund transfers and use of half of the state reserves.

His tax plan would raise the tax on a can of soda pop or beer by 5 cents, the wine tax by a quarter or more per bottle, and the excise tax on hard liquor by 5 cents per dollar spent, plus a liter tax increase of $1.

"I'm proposing increases that amount to a nickel on a can of pop or beer - and you all know that i love soda pop. I drink Pepsis all the time and I'm willing to pay 5 cents more. We're proposing a quarter on a good bottle of wine and less than $1.50 on a fifth of hard liquor, the good stuff."

The pop tax would generate $300 million in the next two years. The beer tax would produce $65 million, the wine excise tax would bring in $37 million and the two liquor taxes about $101 million.

The tax package was instantly assailed by Republican lawmakers, conservative groups and the potential GOP governor, Dino Rossi. They all said the state is just emerging from a recession and that the budget should be balanced within existing revenue.

"Washington state can live within its means and create a healthy climate so that businesses can grow and families can thrive," Rossi said. "Raising taxes will move us backward. We're going to move Washington forward."

Democrats and advocacy groups generally embraced both the Locke budget and the idea of new revenue, if not necessarily the specifics of either.

"It's a good starting point," Prentice said. "My colleagues will look at all these ideas - and more. We may look at a broader tax - a little pain for everybody."

House Speaker Frank Chopp, D-Seattle, said the budget debate will frame the question of "what kind of Washington we want for our future.

"We have to invest in education and we have to protect our vulnerable people. Governor Locke's proposal recognizes that."

Contractors working on the Capitol Campus frowned on the tax package, but said it might be better than other taxes they could think of.

"C'mon, tax my beer?" complained Charlie Nichols, 47, of Shelton. "Uncle Sam's already taken all my money! And I don't want to pay more for my vodka. What is all this?"

Brad Taylor, 32, of Olympia, said taxes seem inevitable, but that lawmakers should definitely leaves the gasoline tax alone. Locke isn't calling for a gas tax hike.

Locke rolled out two different budgets. As required by law, one is balanced within existing revenue. Locke called that one unacceptable, requiring education cuts, a lid on college admissions, and cutbacks in health care and other vital services.

The other plan, balanced with the tax package and a variety of cuts and fund shifts, would "buy back" many of the cuts, he said.

"This is a practical and realistic budget" that preserves core services, while the Republicans' goal of a no-new-taxes budget would clearly hurt education, colleges and services for the poor and vulnerable, the governor told a news conference.

Locke said he's never proposed a general budget tax increase, but that he now finds it necessary. He said the state has cut or frozen over $4 billion in the past two budgets, but that it's no longer possible to solve the financial crunch without new revenue.

"At some point, we have to say `enough is enough.' You destroy the core programs that the people of the state of Washington have come to expect and rely on," the governor said.

He predicted that something akin to his plan will eventually be adopted after he leaves office in January.

"We've got to keep investing in education and we can't turn our backs on the less fortunate among us," he said.

Locke also proposed $1.3 billion in assorted spending cuts, including a two-year slide in paying a huge contribution to the public pension system and $78 million trimmed from mental health. Fund transfers, use of the state reserves, cutting prison sentences and post-release supervision, and cutting back nursing home rate increases all are proposed.

Locke said the additional taxes would help finance class size reduction and 7,100 more college enrollment slots, sustain programs for vulnerable children and adults, maintain the Basic Health Program for the working poor, and boost Medicaid reimbursement rates so doctors don't stop treating low-income people.

The governor proposed raising $94 million through a 1 percent gross receipts tax collected from physicians. The money would be plugged back into higher Medicaid reimbursement. It also would finance Basic Health Program coverage for about 17,200 people.

Locke's budget provides a raise for state employees, teachers and college professors.

The governor also proposed a $2.9 billion construction budget, primarily for education and higher education and public safety facilities.

He proposed a transportation budget that speeds up construction of selected projects by providing an extra $60 million.