State legislative leaders will be back to work on Sunday trying to minimize what some call "horrendous" budget cuts

The state's income is about $17.5 billion, leaving it with a shortfall of about $4.4 billion for next year.

House Appropriations Chair Mickey Michaux (D-Durham) said the state is trying to withstand a storm.

"We don't have any reserves at all," Michaux said. "If a hurricane should hit now, we just wouldn't have any money to cover any of the damages that [the hurricane] would cause."

Michaux said deep cuts will have to be made, including 10 to 15 percent cuts in education, Health and Human Services and public safety.

"In all of these areas that people depend on, they're going to be horrendous cuts. The only hope we have is if we can put together some kind of finance package," Michaux said. "That would mean taxes."

Michaux said there's only so much you can tax -- just as the state is suffering so are its citizens. But he says there are options.

"We've got income taxes sitting out there; we've got sales taxes sitting out there; we've got lots of taxes. A lot can be done sometimes if we go in and close up a lot of loopholes," Michaux said.

House Republican Leader Skip Stam (R-Wake) agrees loopholes could be closed, but insisted it doesn't have to come down to raising taxes.

"There's hundreds of millions in giveaways in the budget that have nothing to do with health or education and public safety," Stam said. "The quickest way to extend a recession is to raise tax rates."

Michaux said House appropriations chairs will meet Sunday to try and nail down the budget, with hopes of rolling out a budget on Tuesday. He said he expects a full House vote next week.