The budget deficit was the talk of the State House last week as Gov.-elect John Lynch’s transition co-chair, Stan Arnold, outlined the financial mess facing the next administration. Although it was no surprise to anyone who has followed the state’s financial problems, the former revenue administration commissioner said there is a $300 million hole in the next biennium’s budget due to the loss of federal Medicaid enhancement money, inflation, population growth and unrealized savings.

If state education aid is considered, the deficit becomes much larger. Department of Education figures indicate the state has to spend $55 million more in each year of the two-year budget cycle. That would mean the hole is actually $410 million.

To fix that, more than zero-based budgeting and an increase in the cigarette tax would be needed. Some people believe they have the answer.

Freshman Rep. David Bettencourt of Salem — where Rockingham Park is located — has filed a bill to permit casino gambling.

Bills are expected from Sens. Lou D’Allesandro and Ted Gatsas to allow video slot machine gambling. D’Allesandro would restrict it to the state’s four racetracks; Gatsas would allow it at other facilities.

Other possible bills would expand high-stakes poker beyond just charity events.

Lynch, unlike former Gov. Jeanne Shaheen, is not a proponent of video slot machines, but he has not ruled them out. He has said he would have to be convinced that form of gambling would not be a detriment to the state. The deadline for requests to draft bills is Wednesday. The next few days will reveal how some lawmakers would address the financial problem.