Governor says budget worsening

RALEIGH She said in a speech that she'll have to find more spending cuts than previously planned - almost $1 billion worth.

Earlier this week, she told reporters she would have $150 million less from the federal stimulus package than she projected last month. That meant finding additional cuts or new revenue sources to close a shortfall that could exceed $2 billion when the fiscal year ends June 30.

Perdue spokeswoman Chrissy Pearson said next year's gap between projected revenues and expenses could exceed $3 billion. Fiscal analysts at the General Assembly suggested that figure at the start of the legislative session last month.

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