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State agencies will feel the first hit of the economic slowdown when Gov. Martin O'Malley proposes at least $250 million in budget cuts Wednesday.

Those who will feel the pain have taken different tacks — from colleges, which are cutting back in order to save money, to advocates for the developmentally disabled, who this week launched a campaign to persuade state leaders to take services off the chopping block.

"Sometimes in the ebb and flow of life, you take five steps forward and one step back," O'Malley (D) said. "It doesn't mean that we won't recoup this lost ground in the future, but right now some of these cuts are going to appear that we're moving backwards rather than moving forward."

The state's $15 billion general fund is falling short by about $400 million. State agencies, asked last month to identify how their budgets could be cut by 5 percent, have prepared a list totaling $396.6 million.

A small surplus fund allows O'Malley to forgo any immediate cuts beyond $250 million, O'Malley spokeman Shaun Adamec said.

The cuts are expected to be presented to the Board of Public Works on Wednesday. But because the revenue shortfall could grow to $1 billion next year, O'Malley may be inclined "to go beyond the bare minimum" when he proposes cuts, Adamec said Thursday. And more cuts could be made before O'Malley presents his fiscal 2010 budget in January.

One proposal would reduce the rate for health-care providers under the Department of Health and Mental Hygiene by half, saving $26.3 million.

Advocates for the developmentally disabled are trying to get clarification of the proposal. They fear it includes a partial cut to a 2.7 percent cost of living increase for community health providers that they fought hard to gain.

Speaking to reporters on Tuesday, O'Malley said he would make the cuts "in a way that still protects our priorities and preserves the safety net for people that are displaced in this economy."

Among the potential cuts is $30 million to the University System of Maryland and $16.3 million for community colleges.

The state's community colleges get roughly a third of their funding from their respective counties. Combining county woes with the state's "would be a substantial hit for the community colleges," said H. Clay Whitlow, executive director of the Maryland Association of Community Colleges.

Students and parents should not rule out a possible midyear increase in tuition. "That's certainly a possibility," Whitlow said. "That would depend on the college."

O'Malley has said he is determined to maintain a tuition freeze for state universities.

Still, the University System of Maryland froze hiring across its 13 schools three weeks ago when it learned of possible cuts to its budget, said Joseph Vivona, the system's chief operating officer and vice president of administration and finance.

The university system will unveil its fiscal 2010 budget proposal in December; Vivona said he is already anticipating a 1 percent cut in the spending plan.

Failure to constrain spending is why the state finds itself so far in the hole already, Senate Minority Leader Allan H. Kittleman said Tuesday.

During the 2007 special legislative session, called to fill a $1.5 billion budget gap, the General Assembly rejected a Republican proposal to reduce spending over two years.

"We're going to have to do some belt tightening that is going to be harsher than had we taken those steps two years ago," said Kittleman (R-Dist. 9) of West Friendship.

"We can go back to what Gov. O'Malley inherited," said Del. John L. Bohanan Jr., the House chairman of the legislature's Spending Affordability Committee. The state saw "some strong spending" under Gov. Robert L. Ehrlich Jr. (R), he said.

The proposed cuts include $38 million to a funding formula designed to funnel state aid to school systems where the cost of education is highest. If cut, it would slash by half a much-ballyhooed budget priority for O'Malley.

O'Malley is continuing to discuss the prospect of cutting education funding and of a six-day furlough of state employees that could save $48 million, and has not ruled out either, Adamec said.

"He's being fair about it," said Bohanan (D-Dist. 29B) of California. "Some of these are his own initiatives."

This week, "BusinessWeek" magazine included Maryland in a look at 10 states where tax revenues have tanked. California, which last week told the federal government that it could request $7 billion in aid, tops the list of 31 states where the potential budget shortfalls could total $53.4 billion, the report said.

O'Malley said this week that he is confident that Maryland will fare better than other states.

"I think that the state — one of only seven that has a triple-A bond rating — I think we'll be able to weather this downturn better than other states," O'Malley said. "But it's not going to be without a lot of pain."

Staff Writers Alan Brody and Marcus Moore contributed to this report.

Gov. Martin O'Malley is considering $396.6 million in potential cuts to the state's $15 billion operating budget. Among the actions being considered:

No additional contribution to future retiree benefits: $52 million

Six-day unpaid leave for state employees: $48 million

Cut Geographic Cost of Education Index: $37.9 million

Cut university system grant and reclaim surplus: $30 million

Cut provider rate increase by 50 percent: $26.3 million

Abolish 400 vacant state government positions: $20 million

Cut funding for nonpublic higher ed institutions: $8.4 million

Cut community college funding: $16.4 million

Cut aid to local jails by 25 percent: $6 million

Freeze child care subsidies for 2,500 children: $5.3 million

Freeze state trooper hiring: $4.5 million

Reduce Stem Cell Research Fund to fiscal 2007 level: $4 million

Cut community mental health services by 1 percent: $3.6 million