Ohio Gov. Bob Taft's order mandating a new round of budget cuts for this fiscal year and the next is a smart pre-emptive move that should forestall another messy fiscal crisis for Ohio.

While such mid-budget cuts are regrettable for unforseen impact they may have on many of those who depend on state services, Taft's action demonstrates that it was possible to trim state spending in many areas without devastating essential programs.

Taft made the new cuts Monday, after the Office of Budget and Management projected revenue shortfalls of $247 million for the remainder of fiscal year 2004, which ends in June, and $371 million for fiscal year 2005.

The culprit was lower-than-expected revenues from personal income taxes, although officials do see signs of recovery on that front in the coming months. Receipts from sales taxes, boosted by extra dollars from the one-cent surcharge set to expire in June 2005, are more on target.

Taft ordered 4 percent cuts to most agencies for the rest of fiscal year 2004, and will follow up with 6 percent cuts for fiscal year 2005. A large chunk of the gap will be made up through anticipated "underspending" of funds already allocated to the agencies.

Some agencies - mental health, corrections and Mental Retardation and Developmental Disabilities - will be cut only 1 percent this year, 2 percent next year. Exempted from the cuts: basic aid to K-12 schools, colleges and universities; student financial aid; job creation programs; the in-home program for seniors.

The new round will cause real difficulties for departments that now must scramble to make substantial trims quickly, with only four months left in the budget year. But the good news is that with signs of recovery ahead, this may be the last of several budget "corrections" the state has been forced to make in recent years. By doing it promptly, Taft may have relieved the pressure the state would feel next year to raise taxes further.

The new cuts should remind lawmakers that their next budget must take a prudent, balanced approach toward spending and taxes. The goal must be to ensure that Ohio offers stability in providing needed services while living within its means.