RICHMOND — A state correctional facility in Botetourt County will close, state colleges will lose more funding, and nearly 600 workers will lose jobs because of more budget cuts that Gov. Tim Kaine announced Tuesday.

Faced with a shortfall of $1.35 billion for the current fiscal year, Kaine outlined a plan that also calls for one day of unpaid leave for most state workers, a reduction in contributions to the state employee pension plan and another withdrawal from the “rainy day” reserve fund. This is the fourth time that Kaine has proposed cuts in the two-year budget that expires June 30, 2010, as the state copes with the effects of a severe recession.

The steps that Kaine outlined Tuesday will eliminate 929 positions in state government and result in 593 layoffs. Those figures don’t include layoffs that could occur at state colleges.

“My heart goes out to people who lose jobs under any circumstances, especially in this job market,” Kaine said in a news conference.

Kaine, who will leave office in January, proposed no tax increases and spared public schools from major cuts.

Kaine’s plan will close three correctional facilities, including the Botetourt Correctional Center in Troutville and the Natural Bridge Juvenile Correctional Center. The timing of the closings remains unclear because corrections officials must make arrangements to transfer prisoners to other facilities. The facilities would be sold.

The moves will result in at least 61 layoffs at the Botetourt facility and 68 at the Natural Bridge facility, according to information released by Kaine’s office. The Botetourt facility has 121 positions, according to the governor’s office, but state officials expect some employees to land jobs at other corrections facilities. The camp had an average daily inmate population of 336 as of June 2008, according to the state Department of Corrections.

Botetourt County Administrator Jerry Burgess said the loss of the Troutville facility, known locally as Camp 25, will be a blow to the region because it is considered a major employer. Botetourt residents also will see a decline in the care of roadsides and highway medians throughout the county, which relies heavily on inmate crews from the camp to do the mowing.

“It’s just not going to be as clean everywhere,” Burgess said. “They’ve always done an excellent job working with the sheriff and the parks and recreation department when we would have sites that needed cleaning up.”

State Sen. Ralph Smith, R-Botetourt County, called the closing “a big hit” and worried that displaced workers will be left with “not much of a second option.”

Kaine also called for another round of cuts to state colleges. He reduced state funding by as much as 15 percent for the colleges, but said he will seek to accelerate the use of federal stimulus money to cushion the impact of those cuts.

The governor has the authority to cut spending by up to 15 percent.

Kaine said stimulus money that had been earmarked for use by colleges in the 2011 fiscal year could be applied in the current year to hold the budget cuts to an average of 7.7 percent.

Kaine said the universities will be given flexibility to adjust their budgets and determine whether layoffs will be necessary.

Under Kaine’s plan, Virginia Tech would lose $21.8 million in general fund money this year. That total does not include $4.5 million in cuts to the Virginia Cooperative Extension and Virginia Agricultural Experiment Station at Tech. Nor does it include the estimated $1.2 million salary cut that Tech employees will face with a mandatory furlough day next spring.

Tech spokesman Larry Hincker called the latest cut to the university’s budget “the worst-case scenario.”

“It’s very likely there will be position eliminations and there could be layoffs,” Hincker said.

It likely will be weeks before administrators know how particular departments and divisions are affected. Each will come up with its own reduction plan, Hincker said.

Accelerating the use of federal stimulus funds could reduce Tech’s budget cut to about $12 million, but Hincker warned that such a move could leave the university with another major shortfall in 2011, after the stimulus money expires.

Kaine also cut $6.4 million in state funding to Radford University and $1.8 million to Virginia Military Institute. Radford Provost Wil Stanton told the faculty last month that the university would likely be unable to weather more cuts without reducing personnel. VMI is unlikely to reduce staff or services because of the cuts, said spokesman Col. Stewart MacInnis.

Kaine’s plan includes a one-day furlough for most state workers that would take effect on the Friday before Memorial Day next year. He also called for suspending employer payments to the state pension system in the final quarter of this fiscal year, but said the reduction won’t affect retiree benefits. Kaine indicated that his budget proposal for the following two years will require employees to assume a share of retirement plan contributions, which now are fully funded by the state.

The budget plan also will eliminate 70 administrative and support jobs and 13 direct care treatment jobs at mental health institutions throughout the state. The Department of Behavioral Health and Developmental Services has not determined how those cuts will be implemented, spokeswoman Meghan McGuire said.

Kaine and lawmakers revised the $77 billion budget earlier this year to account for a cumulative shortfall of $3.7 billion, but that plan projected a slight increase in tax collections for the fiscal year that began July 1. Kaine ordered more cuts after his administration determined that state revenue will decrease for a second straight year. The shortfall affects the general fund portion of the budget, which stands at $31.8 billion for the biennium.

“The governor’s announcement of immediate and proposed spending reductions is a sobering reminder of the difficulties families and businesses are facing while they cope with the worst economic crisis since the Great Depression,” said House Speaker Bill Howell, R-Stafford County.

Staff writer Rex Bowman contributed to this report.