DES MOINES -- Republicans who control the Iowa House are expected to unveil a state budget plan this week that includes big tax cuts for elderly Iowans but no tax increases for smokers or beer drinkers.

Last week, the House voted overwhelmingly to provide $280 million in annual tax relief to retirees, including a five-year phase-out of the state tax on Social Security and pension income.

The massive measure also includes a Democratic-backed provision that would erase income taxes for middle and low-income seniors starting in 2008.

Republican budget writers will need to make room for those new tax cuts when they release their spending targets early this week. But the GOP's Fiscal Year 2007 budget blueprint likely will not include cigarette or beer tax increases sought by Gov. Tom Vilsack, a Democrat.

Vilsack wants an 80-cent-per-pack cigarette tax hike to pay for health-care initiatives and a 10-cent-per-gallon beer tax increase to beef up the general fund. House leaders oppose both proposals, which would collect an extra $136 million combined annually.

"We're not raising taxes," House Speaker Christopher Rants, R-Sioux City, said recently after college students rallied at the Statehouse in support of a tobacco tax hike.

Senate Republican leaders say their budget targets will be virtually identical to the House GOP plan. Senate Republican Leader Stewart Iverson of Clarion said his caucus also supports the tax cuts for seniors approved by the House.

"I'm certainly hopeful that we can debate and pass the same bill," Iverson said.

But the tax cuts, which have the support of most House Democrats, may create a problem for Senate Democrats who are pushing for a 6 percent, or $157 million, increase in K-12 school funding.

It's uncertain if the state can afford give both a $280 million tax cut and a big increase in school funding. Senate Democrats released a survey of school superintendents last week showing that districts need the extra money to pay higher teacher salaries, improve programs and cover rising energy and transportation costs.

The House Republican budget includes a 4 percent school funding increase that adds up to roughly $100 million.

"We're going to continue to push for 6 percent. We think we have enough votes from key Republicans to pass 6 percent back to the House," said Senate Democratic Leader Mike Gronstal of Council Bluffs.

"The school districts are anxious to get the resources."

Heated debates over TouchPlay lottery games and reinstatement of the death penalty will remain on the Legislature's front burner next week.

Senate Republicans who support capital punishment want to hold a special committee meeting on the issue at noon Tuesday. But Democrats who oppose the death penalty said last week they would cancel the meeting.

Sen. Larry McKibben, R-Marshalltown, the Senate's lead death penalty backer, said he would take his case to Iowans.

"If this subcommittee doesn't happen, I'll be on the road next week," McKibben said,

A task force appointed by the governor to study the swift growth of TouchPlay electronic lottery games is scheduled to meet on Friday. Last week Rants, the house speaker, accused Iowa Lottery CEO Ed Stanek of misleading lawmakers by claiming legislative authorization for deploying the games in convenience stores and groceries.

Critics of the games say they look like slot machines and represent a major expansion of gambling not envisioned by lawmakers. There are 5,000 games at 2,600 locations in the state and another 5,500 are on order, according to lottery officials.

Contact Todd Dorman at (515) 243-0138 or todd.dorman@lee.net.