CHARLESTON, W.Va. (AP) — Most West Virginia agencies must cutspending by 7.5 percent for the 2013-2014 budget year, to avoid adeficit threat blamed on rising Medicaid costs, the sluggishnational economy and slumping coal production, Gov. Earl RayTomblin announced Monday.

Several agencies and programs are exempt from the cuts includingMedicaid, state funding for public schools and prisons, RevenueSecretary Charles Lorensen has told agency chiefs in a memo.

"Simply stated, anticipated revenues are not expected to keeppace with costs for current programs," Lorensen's memo said.

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