Governor: “There is a Much Larger Storm Looming”

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Governor Strickland says he has ordered $540 million in new cuts and other state budget adjustments as revenue shortfalls continue.

Strickland said Wednesday the latest moves come on top of $733 million in cuts he ordered in February.

The governor says he’s asking for a 4.75 percent cut in all state agency budgets. He says vital programs such as a homestead tax cut and an expansion of children’s health care will be maintained.

The Democrat says he won’t ask the Legislature to tap the state’s $750 million rainy-day fund because that money may be needed in the future if the economy continues to worsen. (Copyright 2008 by The Associated Press. All Rights Reserved.)