HARRISBURG — Gov. Ed Rendell said only about 100 Pennsylvania state employees — out of tens of thousands on the payroll — will have to be laid off this year.

Rendell's administration originally estimated hundreds of employees would need to be let go to balance this year's $28 billion budget and make up for a smaller-than-expected chunk of federal stimulus money.

But at a news conference today, the Democrat said a larger-than-expected number of retirements helped keep layoffs to a minimum.

Rendell also said he is implementing his plan for offsetting the $282 million stimulus funding gap. It calls for an across-the-board spending cut, a reduction in the state education subsidy and money from the still-to-be-passed severance tax on natural gas drilling on the Marcellus Shale deposit.