The Murphy administration ordered state agencies to freeze pay raises for some employees, slow down hiring and plan for spending cuts.

The state is in a deficit right now. This means that the state is spending more than it is taking in in tax revenue.

“I’m confident the revenue in the medium and longer term is going to be where we hope and want it to be,” Murphy told News 12 during the “Ask Gov. Murphy" program. “But right now, I want to pull our belt in, trim our sails and make sure that we're no longer spending more than we're taking in."

The news comes months before Gov. Phil Murphy’s next budget address in February.