CHEYENNE, Wyo. (AP) — Wyoming Gov. Matt Mead is proposing to reduce the rate at which the state puts money into permanent savings. He wants to free up funds for state projects in response to projected declines in energy revenues.

Mead released his proposed budget on Tuesday for the coming two-year funding cycle. He's calling for a $3.4-billion general fund budget, down about $200 million from the current budget.

Mead wants Wyoming lawmakers to reduce the rate at which state revenues go into permanent savings. He wants to direct the money instead into the state's so-called rainy day fund to allow nearly $450 million in spending.

The state hiked its permanent savings rate in 2006 when energy revenues were high. State analysts now project lower future revenues in response to falling energy prices.