CARSON CITY -- Gov. Jim Gibbons on Wednesday asked all state agencies to reduce their requests for new funding in the upcoming two-year budget by a collective total of $111.8 million.

The request came as state revenue projections suggest new revenues will come in less that amount than originally projected in November by the Economic Forum.

The reduction in projected revenue growth is primarily a result of weaker than anticipated sales tax and business tax growth for the next biennium.

Gibbons identified three items that will not be affected by budget reductions: transportation construction, child welfare and public education.

Prior to the announcement, Gibbons met with legislative leaders to brief them on the new budget figures.

"We must live within our means to ensure a balanced budget," Gibbons said. "Therefore, I am asking Nevada's state agencies to re-examine their budgets for possible reductions to ensure that we are exercising responsible management of taxpayer dollars."

State Budget Director Andrew Clinger and Legislative Council Bureau fiscal staff have agreed that reductions will be necessary for the two-year budget that starts July 1 to comply with Nevada's constitutional requirement mandating a balanced budget.

"We must make sacrifices in order to comply with our constitutional requirements of a balanced state budget," Gibbons said.

"After a careful evaluation of projected revenues, I am confident that we will provide a budget that meets our needs and funds the programs necessary to the success of our state."

Gibbons has repeatedly stated that he will not support any tax increases to balance the budget.

The reduction represents less than 2 percent of the two-year, $6.8 billion budget submitted by Gibbons in January. It still will be nearly $1 billion higher than the current two-year budget.

Lawmakers became aware a few weeks ago, after a dismal December sales tax report, that revenue growth estimates probably would have to be reduced.

The Economic Forum will meet again on May 1 to finalize projections. But lawmakers said they needed to know the size of the cuts needed sooner so budget adjustments could be made over the next several weeks.

The announcement means many legislative proposals to spend money on projects and programs not in Gibbons' budget will face a tough time finding funding.

Both the Senate Finance and Assembly Ways and Means Committees heard bills Wednesday seeking funding for various programs outside of the budget, including a bill to allocate $20 million for transitional housing and support services for the homeless.