Gov. Sonny Perdue wants state agencies to start thinking about tightening their belts.

Perdue will ask departments to submit plans to cut spending 3 percent to 4 percent over the next two fiscal years as a precaution against continued weakness in the state's economy, said Bert Brantley, the governor's spokesman.

A 4 percent cut would amount to about $800 million in a budget that funds education, transportation, prisons and other state departments.

"He is looking at the long-term picture," said Brantley.

And right now, that picture isn't bright.

May tax collections, which were released Monday, showed declines in sales and income taxes. Sales are down in several areas, especially those associated with the housing industry. Sales and income tax collections make up a majority of the state's revenue.

For the fiscal year, which ends June 30, tax collections are down slightly. If they remain flat this month, administration officials say the state will come up $525 million short for the fiscal year.

With $1.5 billion in reserves, the deficit will be covered. Also, state agencies will be returning millions of dollars that were budgeted, but not spent, during the fiscal year, padding the government's bank account.

However, if the economy continues to struggle and collections don't grow, Perdue wants to be ready to cut spending.

Reductions probably would not take place until early next year. Brantley said Perdue is also asking agencies to consider what programs they could trim in fiscal 2010, which begins July 1, 2009.

Perdue has asked agencies to come up with plans to cut spending before. The goal is for agencies to suggest cuts that would have the least direct impact on Georgians, Brantley said.

Previous reductions have included cuts in school funding. Local officials then raised property taxes, blaming the cuts in state funding.

House Appropriations Chairman Ben Harbin (R-Evans), applauded the governor's decision. But he said he hoped education wouldn't be hit.

"I think it's the responsible thing to do not to put ourselves in a hole," Harbin said. "But we don't want to cut the necessities like the dollars going into the classroom."

Lt. Gov. Casey Cagle also supported Perdue's move.

"During trying economic times, it is important that we all work to find ways to save taxpayers hard-earned dollars," he said. "It is good to see Gov. Perdue make the tough decisions necessary to assure our state remains fiscally sound and healthy."

Sarah Beth Gehl, deputy director of the Atlanta-based Georgia Budget and Policy Institute, said the state's reserves could help soften the blow. The institute is a think-tank that monitors government spending.

"Our hope would be that the governor would use the shortfall reserve -- which through his good management has gotten up to $1.5 billion -- so that the services that are so vital to a lot of people during an economic downturn are properly funded."