MetroNews reported earlier this week state revenue experts expect tax collections to miss estimates by approximately $100 million this fiscal year.

The governor says work in previous budget years will help in the downturn. "We're still in a position that we can manage ourselves through this," the governor said. "We do not have to cut the critical needed services to any person in West Virginia. We do not have to raise their taxes, but we have to be vigilant."

Revenue collections show significant declines in personal income tax and sales tax collections and generally across-the-board decreases in the numerous tax categories.

But the governor maintains there's a way to handle the decrease. "We've got to find every ounce of waste in state government. We've got to be more efficient," Manchin said. "We started this (responsible government) when times we're really good and we got our financial house in order, now we've got to become really good at doing it."

The governor and legislature will have to make a policy decision on how to handle less revenue. Manchin says there's $168 million left from the previous two state budgets. He tells MetroNews he's not in favor of dipping into the state's $500 million Rainy Day Fund at least for the next two budget years.

"Unless things change, they will be looking at making serious decisions about using Rainy Day in 2012 and 2013," the governor said.

Manchin's second four-year term is scheduled to end in January 2013.