Gov. Jerry Brown announced nearly $1 billion in new cuts to state spending on Thursday, slashing spending on higher education in California and eliminating funding for free school bus service but avoiding deeper cuts that many had feared.

The long-anticipated cuts are due to California’s tax revenue falling below the optimistic targets that Brown and legislative Democrats used when they approved the state budget in June. “This is not the way we’d like to run California, but we have to live within our means,” Brown said at a midday press conference.

But the governor tried to emphasize the positive. School funding was poised to be sliced by $1.5 billion. Instead, a burst of new tax revenue led Brown’s Department of Finance to raise its projections for California’s cash flow. Now schools will lose less than $80 million in direct funding.

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