Governor Tim Kaine is asking for even more budget cuts to make up for expected shortfalls in revenue.

Tuesday, he asked state agencies to cut budgets by another half percent for the current fiscal year that ends in June. He also asked them to slash three percent for the next two-year budget.

Kaine proposes taking $162 million more from the state's so-called rainy day fund, which would bring the total withdrawal from the fund up to $423 million.

He says the plan may affect more than state budgets.

"I think it is certainly the case that there will be some layoffs that would associate with some of those plans," says Kaine.

He says the cuts are required, because the state will bring in nearly $1.5 billion less than expected through 2010.

The General Assembly will consider this plan in its budget deliberations. It does not include any tax increases.