Governor Ted Strickland says he won't raise taxes but he warns that Ohio will have to make sacrifices.
The Democrat said in his State of the State address today that government programs will have to be reduced and a variety of fees will be increased.
Strickland told lawmakers that Ohio is in a "steadfast" state despite an economic recession and declining tax revenues.
He says he'll balance the two-year budget by reducing state spending by $3.2 billion and using $3.4 billion in federal aid to help cover a projected $7 billion deficit.
Strickland also proposed expanding health care coverage to offer insurance to every child in Ohio and restoring passenger rail service between the state's largest cities.