DES MOINES - Iowa Gov. Chet Culver on Tuesday announced spending cuts he said would save the state around $77 million, including a state government hiring freeze and halting the construction of a new state office building approved by the Legislature.

Culver told members of the Iowa Taxpayers Association that the spending cuts will boost the state's ending balance after the fiscal year ends in June.

He said the ending balance would have been around $5 million without the cuts, a total he said would be dangerously low given current economic conditions.

"Having a healthy ending balance is not only good fiscal policy, it also provides security for Iowans," he said during his speech.

Culver estimated that freezing most personnel vacancies and new temporary positions will save $12.6 million.

He also said the state will cut down on travel expenses, new equipment purchases, service contracts and office supplies that could save a combined total of $6.5 million.

He's also asked the Iowa Board of Regents, the state judicial branch and the Legislature to trim 1.1 percent of their budgets, a move that could save $8.9 million.

Culver called for a transfer of $12 million into the state's general fund from the Iowa Alcoholic Beverages Division and the Iowa Homeland Security and Emergency Management Division.

If the Legislature follows through on Culver's request to pull the plug on the new state office building in Des Moines, that'll free up another $37 million that the state can put toward more pressing concerns such as disaster recovery, he said.

Culver said the steps outlined on Tuesday won't affect services the state provides to Iowans.

He said more cuts may follow if the state's Revenue Estimating Conference predicts a bleak state revenue forecast during its meeting on Friday.

Culver also said he wouldn't rule out a pay cut for himself and other state employees should such steps become necessary.

Iowa House Speaker Pat Murphy, D-Dubuque, issued a statement on Tuesday saying Culver's spending cuts will give the Legislature more of a cushion when putting together the budget during the session beginning Jan. 12.

"Governor Culver's plan to save $77 million this year will ensure our budget remains balanced this year while maintaining the priorities of Iowans in health care, renewable energy, and education," Murphy said

Contact Fred Love at (515) 422-9048 or fred.love@lee.net.