Associated Press - December 1, 2009 10:25 AM ET

CHEYENNE, Wyo. (AP) - Wyoming Gov. Dave Freudenthal says falling energy revenues will force state government to cut spending over the next two years.

Freudenthal plans to release his proposed $3 billion, 2-year state budget Tuesday in Cheyenne. His proposal calls for $300 million less spending than in the current 2-year cycle.

Local governments would receive about $170 million from the state under Freudenthal's proposal, down from more than $400 million in the current budget.

Freudenthal also proposes no pay raises for state employees and cuts to state funding for highway construction.

State financial experts have lowered their projections of state revenue over the coming 2-year budget period by more than $380 million since early this summer.

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