Gov. Linda Lingle wants to close the state's $1.2 billion budget deficit through June 2011 by delaying tax refunds from April to July and scooping $99 million that counties now receive in hotel room taxes.

The governor's supplemental budget request would also generate revenue by raising taxes on the commissions from insurance sales, eliminating state payments for life insurance for state workers, and canceling state reimbursements of some Medicare costs for the spouses of retired state workers.

Lingle's proposal to divert hotel room tax revenues from the counties for the next three years is likely to be among the most controversial of her budget requests.

State lawmakers had considered scooping the hotel-room tax money from counties last session but decided not to take the money after appeals from county mayors.

The delay in tax refunds will be a one-time savings. The state, under the law, is allowed to delay tax refunds by up to 90 days, and the Lingle administration plans to take the time to help close the immediate budget gap this fiscal year.

Lingle's budget does not call for any additional layoffs for state workers.