CHEYENNE, Wyo. (AP) — Gov. Matt Mead is telling state lawmakers that if they won't approve a 10-cent a gallon fuel tax hike to help pay for state highways they should dip into revenues from state energy production to help cover the tab.

Mead addressed members of the Legislature's Joint Appropriations Committee on Monday in Cheyenne. The committee took no action on his recommendations and plans to meet this week to consider budget issues.

Mead told lawmakers his general budget proposal would reduce state agency budgets by an average of 6.5 percent, saving more than $60 million in the coming fiscal year.

Mead proposes to divert some state energy tax revenues from permanent savings toward project funding, a proposal that likely will face some opposition in the legislative session starting in January.