CARSON CITY, Nev. (AP) — Budget reductions recommended by Gov. Jim Gibbons' office late Wednesday include laying off 234 workers, roughly 10 percent spending cuts to education and most other agencies, and closing the aging Nevada State Prison in Carson City.

But even if all the governor's recommendations were enacted, they'd cover less than half the anticipated $880 million funding gap facing the state for the rest of the biennium that ends June 30, 2011 — meaning more cuts or added revenues must be found.

"We're squeezing the blood out of every rock," Chief of Staff Robin Reedy said after a three-hour meeting with legislative leaders.

Administration officials said all options remain on the table, and notices are being prepared and will be sent this week to classified workers who may be affected by job cuts. State law requires they be given 30-days notice.

Gibbons proposed shutting down the aging Nevada State Prison during the 2009 Legislature, but lawmakers rejected the move. This time may be different.

"Some of the things we didn't agree to last time, the circumstances are very different now," said Senate Majority Leader Steven Horsford, D-Las Vegas.

Horsford said no agreement with the governor's office was reached, but lawmakers will study Gibbons' proposals, come up with some of their own, and try to reconcile any differences before a special session likely later this month.

"They're all very, very ugly options," Horsford said.

Assembly Speaker Barbara Buckley, D-Las Vegas, said besides the job cuts, the governor's proposal includes eliminating 362 positions already vacant. They would be on top of 1,400 state positions lost since the recession began in late 2007.

"It's an incredibly dire situation," Buckley told reporters. To emphasize the point, she said the state could lay off every worker whose salary is paid out of the general fund — and still have a $300 million shortfall.

Buckley said lawmakers will go over the governor's lengthy detailed list and meet with administration officials again early Thursday. She said many programs targeted for 10 percent reductions are "things that no one wants to see happen."

Gibbons will detail the depth of the state's financial problems and outline his proposals for dealing with it in a televised speech Monday night. He also will call for a special session of the Legislature.