Gov. Linda Lingle, responding to the state's slowing economy, said today she will impose 4 percent general-fund spending restrictions next fiscal year for all state departments.

The restrictions, which will mean $33 million less spending starting in July, are on the supplemental state budget passed by the state Legislature last session. State lawmakers had trimmed Lingle's budget request by $44 million because of concerns about the economy.

Last month, the state Council on Revenues reduced its revenue forecast for this fiscal year to 3.3 percent, down from 3.9 percent in March. The council lowered the forecast for next fiscal year to 2 percent, down from 4.1 percent.

The Republican governor has been more optimistic about the economy than majority Democrats, who have warned about the impact of less state revenue on state programs. The administration described the new spending restrictions as "cautionary management."

"Every department must exercise prudence and practice sound management in how it spends public funds," Lingle wrote in a Monday letter to state departments. "Every expenditure must compete for priority in the state's spending plan relative to all other funding requirements of the state. Above all, you must guard against unjustified, unintended or automatic expansion of your budget base."

The governor, however, encouraged departments to speed up spending on capital improvement projects, which economists believe may help the construction sector of the economy.

Lingle also sent letters to state lawmakers, the Judiciary and the state Office of Hawaiian Affairs urging fiscal restraint next fiscal year.