State general fund receipts could be $190 million to nearly $220 million below the state's current target, Kaine said Monday.
The governor told legislative leaders last week that revenue collections for the year will be almost 8.5 percent to 8.8 percent below their 2008 levels.
Spending in the state budget is based on revenues declining by only 7.3 percent below their levels last year.
Kaine said he told state agency directors to look for opportunities to cut their spending, but did not tell them how much to cut.
More specific cuts are likely if the state's revenues don't improve substantially in the final two months of the fiscal year, the governor said.