(RALEIGH) -- Governor Bev Perdue has signed a bill into law that directs her to cut $540 million from the current state budget.

Republican lawmakers say the measure will help prepare for next year's projected budget shortfall. According to the latest estimates from legislative staffers, that budget gap is now roughly $1.9 billion.

The governor had previously vetoed a similar bill because it would have cut funding for economic development programs. The latest version now gives her flexibility to make those decisions.

Perdue spokesperson Chris Mackey says the governor has already identified $400 million in cuts. Perdue has until the end of June to find the remaining $140 million in spending reductions.