SPRINGFIELD - Illinois officials have touched off a cola war in their bid to juice up state coffers.

Soft drink giants Pepsi and Coca-Cola submitted bids Friday to become the sole beverage supplier to more than 2,300 vending machines on state property, as well as the Illinois State Fair and the University of Illinois.

The final decision, however, won't be based on which cola tastes better.

Rather, officials will choose one or the other based on how much money the companies will pay the state to be the exclusive soft drink vendor in the Land of Lincoln.

"We wish there were 25 bidders, because of the competition, but we're satisfied there were two," said Mike Klemens, spokesman for the Illinois Department of Revenue.

The push for a statewide contract is just the latest move by the Blagojevich administration to squeeze money out of private industry in lieu of raising taxes. The state has sold a limited number of special sponsorships for various state programs, bringing in an estimated $3.4 million over the past three years.

It is not clear how much cash could be raised by handing Pepsi or Coke most of the state's business. But, bidding documents show the income stream from some of the vending machines totals more than $8 million.

Both companies employ high powered lobbyists with connections to the governor's office. Among Pepsi's lobbyists in the Statehouse is William Filan, cousin of top Blagojevich budget aide John Filan.

Coke's army of representatives in Springfield includes John Wyma, a top aide to Blagojevich during the governor's tenure in Congress.

The state is expected to choose a winner this spring with an eye on launching the program by July 1.

There are numerous examples of governments - including school districts and cities -inking deals with soda companies in exchange for an infusion of money. It is not clear whether there are any programs involving entire states.

"I'm not aware of any similar partnership," said Kevin Morris, spokesman for Niles-based Coca-Cola Bottling, which has 3,000 employees across Illinois.

While the proposal would be noticeable in places like state office buildings and interstate rest areas, it would not affect all state universities.

According to officials, universities were given the option of participating in the program. Only the University of Illinois and Northeastern Illinois University opted to participate.