House and Senate Democrats are looking at further spending cuts in the state budget, in part to satisfy Gov. Mike Easley and pass a budget bill this week.

House Speaker Joe Hackney and Senate leader Marc Basnight are expected to receive options Wednesday from staff members and other lawmakers on where to cut.

Easley has urged legislative leaders for several days to pull back on spending because state revenues fell during May and June. Easley has suggested lawmakers cancel proposed tax cuts and credits to help make up the difference.

Legislators have been cool to his suggestions but on Tuesday acknowledged they would consider some spending cuts.

The $21 billion spending plan will adjust the second year of a two-year budget passed last summer. The start of the fiscal year began Tuesday.