Continued from page 1

Courts would be cut by $300 million, and another $240 million would be saved by delaying courthouse construction projects.

Mr. Brown said his administration will work with state employee unions to achieve the 5 percent savings, either through a straight pay cut or reduced work hours. He issued a detailed plan for public employee pension reform earlier this year, but his proposal has not gained much traction in the Legislature, which is controlled by Democrats.