CHARLESTON, W.Va. -- West Virginia is looking to offset nearly $200 million in needed budget cuts with at least $34 million from its share of federal stimulus funds.

Lawmakers and Gov. Joe Manchin's office say the temporary federal dollars should help cushion the blow, but they add that most agencies and programs will still see their spending reduced by at least 2 percent.

"I'd say it will be across the board,' said House Finance Chairman Harry Keith White, D-Mingo. "Everyone will have to sustain a cut.'

The Legislature must pass a new state budget that is $197 million smaller than what Manchin first proposed in February. The recession has prompted the governor to scale back his revenue projections for general taxes and the state lottery by that amount. Even with that cut, the parts of the budget funded by those sources still will exceed $4.2 billion.

Lawmakers typically pass a new budget immediately after their annual, 60-day regular session. Uncertain over how severely economic troubles would hurt the Mountain State, they and Manchin opted to delay action when this year's session ended April 11.

With the budget year starting July 1, the House and Senate reconvene Tuesday to finish the spending plan. Buoyed by that month's stronger-than-expected revenues, lawmakers and the governor expect to stick with his reduced forecast.

A chunk of the federal stimulus money is meant to help states with their budgets, particularly in education. Of West Virginia's estimated $1.8 billion share of the stimulus, about $266 million comes from those "fiscal stabilization funds.'

Manchin spokesman Matt Turner said the governor's budget team and lawmakers might use $11 million for higher education and $23 million for public schools.

They also are weighing stimulus funds to soften the hit to the Department of Health and Human Resources, the second-biggest spender of general and lottery revenues after public education. Manchin's original budget proposal asked lawmakers to give the agency $871.9 million, or 20.1 percent, of the state's general fund budget.

Turner added, however, that Manchin still wants to avoid using temporary stimulus money in areas that require annual funding, given the specter of mounting deficits projected for subsequent budget years.

Turner also noted that the revised budget bill likely will not take final form until just before the extended session begins. Manchin officials and the staffs of the House and Senate finance committees have been exchanging draft proposals, he and White said.

White said his committee likely will keep the bulk of the governor's recommended cuts. Manchin had asked all state government to find ways to reduce spending when he revisited his revenue forecast.

Senate Finance Chairman Walt Helmick, D-Pocahontas, did not respond to messages requesting comment.