State agencies in Texas must propose 10 percent reductions in spending for the second time in four years.
Gov. Rick Perry on Thursday called for agencies to look for new ways to get leaner despite saying that more revenues are coming into the state. Agencies were also asked to identify 10 percent cuts prior to the last legislative session.
Lawmakers will ultimately decide what, if any, spending reductions will be made when the next session begins in January.
Republican House Speaker Joe Straus said the state must continue to "plan conservatively" despite healthy revenue growth.
Cost-cutting by the Legislature last year led to a $4 billion reduction in education spending to help balance the budget.
