Arizona gov. tells agencies to prepare more cuts

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PHOENIX (AP) -- Arizona Gov. Jan Brewer ordered agencies to plan for possible budget cuts in the next fiscal year well beyond the reductions recently made to keep the current budget in the black.

A memo released Tuesday by Brewer's office instructs agency heads to prepare for possible cuts of 5, 10, 15 and 20 percent below the spending levels in place after the recent reductions.

Brewer budget director Eileen Klein's memo also instructs agency heads to explain "impacts" that the deeper cuts would have. It also states that Brewer hasn't made decisions and regards all options to be "on the table."

Brewer spokesman Paul Senseman noted that the fiscal 2010 shortfall could top $3 billion and said Brewer is also considering how to spend federal stimulus money.

(Copyright 2009 by The Associated Press. All Rights Reserved.)