With the state facing a projected $2.3 billion budget deficit in its General Fund budget, Gov. Ed Rendell is looking to save money by putting the squeeze on state workers.

The Harrisburg Patriot-News reports Rendell is giving the unions representing state workers until the end of March to come up with concessions or face furloughs or layoffs.

From a story by reporter Charles Thompson:

"We've agreed to give the unions a couple of more weeks to look at the options and get back to us," Rendell said during a Capitol press conference. "But by the end of March, if we don't have an agreement ... I'm going to have to act."

Rendell said again that he is leaning toward a system of "rolling furloughs," in which certain, nonessential aspects of state government would close for a day at a time, causing cuts in hours for thousands of state workers.

"If there's a way that I can do this and minimize the number of layoffs, I will take that way," Rendell said. "I think it's better for everyone to lose X percentage of their wages than for 2,000 people to be thrown onto unemployment."

Union leaders have vowed not to take wage concessions back to their rank-and-file, making the case that they have accepted wage freezes and sacrificed in other ways during past contract negotiations with Rendell.

Read the full story, "Rendell gives unions ultimatum," at the newspaper's Web site.