HARRISBURG — Gov. Ed Rendell is slashing at least $128 million more in state spending as Pennsylvania's financial outlook continues to unravel amid a deepening global financial plunge.

Rendell announced the budget cuts today in response to foundering state revenue collections that are $658 million behind expectations.

To date, Rendell has announced about $439 million in spending cuts.

He's withholding a cost-of-living raise of about 2 percent for thousands of nonunion state workers and will ask the state employees' unions to discuss cost cuts with him, too.

Some state legislative leaders are also saying they'll give back their 2.8 percent cost-of-living raises this year and will try to cut spending in their caucuses.

By The Associated Press