Georgia Preparing for Sharp Cuts

ATLANTA (AP) - Georgia agencies are preparing for sharp budget cuts by freezing open positions, slashing travel expenses and delaying new hiring.

Some are even forcing state employees to take time off without pay.

The cuts are a reflection of Georgia's mounting $1.6 billion budget deficit, which forced Gov. Sonny Perdue to order most state agencies to cut their budgets by 6 percent. Perdue also asked the agencies to prepare for broader cuts if tax collections continue to plummet.

The revamped budgets are due next month, and many planners are still scrambling to prepare.

Perdue said he has had little choice but to call for the budget slashes amid the sluggish economy. Tax collections are down, and lagging revenues have already forced Perdue to use $600 million in reserves to make ends meets.