FRANKFORT, KY. - Gov. Steve Beshear said Wednesday night that the budget he will propose to lawmakers later this month will include deeper cuts than those in his first term - and he again pitched expanded gambling and tax reform as key elements to boost revenue over the long term.

"We will be cutting. A lot," the governor said during his annual State of the Commonwealth Address to a joint session of the General Assembly in the House chamber.

The budget outlook, he said is "so wretched that we will be forced to carve into some of our most critical, basic services."

Details of the cuts will come in the budget Beshear will propose in two weeks. But Beshear spokeswoman Kerri Richardson said, after the speech, that as part of the budget planning process state cabinets have been asked to "prepare budget outlooks that could include a 7 to 9 percent reduction" over current funding levels.