Gov. Linda Lingle will ask state lawmakers in January to move $40 million from the state's rainy day fund to cover a budget deficit for the fiscal year that ends in June.

The emergency request is part of $221 million in spending cuts and savings imposed by the Lingle administration to close the deficit. Deeper spending cuts are possible, however, after the state Council on Revenues meets in January to review the state's revenue forecast.

The council has estimated a 0.5 percent decline in revenue for the fiscal year but revenues are coming in 2.6 percent lower through the first five months of the fiscal year. If the council lowers its projection, the administration will have to propose additional spending cuts.

Lingle, at a news conference at the state Capitol this afternoon, discussed how she would approach the deficit this year and released the details of her two-year budget plan for fiscal years 2010 and 2011.

Lingle proposed an $11.1 billion operating budget for 2010 and an $11.3 billion budget for 2011, along with a $2.9 billion capital improvement spending plan. The general fund portion of the budget, over which lawmakers and the state have the most discretion, is $5.3 billion in 2010 and $5.4 billion in 2011.

The governor is calling for $209 million in general fund spending cuts in 2010 and $186 million in cuts for 2011. The cuts would be achieved through a combination of program reductions, tightening tax laws, transferring money from special funds, and debt restructuring.

Two of the programs proposed for elimination are voluntary Healthy Start and adult dental services. The administration would also set a lifetime limit of one-year for people on general assistance.

Lingle did not call for any layoffs of state workers but repeated that the administration would not propose any pay increases for state workers in contract negotiations. The governor has also urged lawmakers to defer pay raises that are scheduled to take effect in January.