Despite a drop in revenues for the third straight month, Gov. Ed Rendell isn't ready to dip into the state's Rainy Day Fund.

At a news conference yesterday in Pittsburgh, Mr. Rendell said it was "premature" to talk about tapping the $750 million emergency fund even though state revenues are 4.7 percent below what was expected since the fiscal year began July 1.

"We've only gone through a quarter of the year in terms of our reports, a quarter of the fiscal year, and none of those were our prime tax-producing months," he said. "Until we see all of that input, there's no way to make a judgment."

Mr. Rendell said he has taken steps to react to the early shortfall and to "prepare for the worst" by ordering a hiring freeze and reductions in department and agency spending that will save an estimated $200 million and stepping up the collection of delinquent taxes in hopes of generating another $100 million.