CARSON CITY, Nev. -- Nevada Gov. Jim Gibbons said education reforms and smaller government overall are needed to ease the state's financial crisis and close an $880 million shortfall.

In a special "State of the State" address, the first term Republican also announced a Feb. 23 special session of the Legislature to deal with the state's worsening money problems.

He also said he would be donating 6 percent of his salary to help teachers but that state workers would experience layoffs. He also said Nevada needs to add more green energy jobs.

The governor said that 23 percent of Nevada schools are failing and that "the problem is our system."

Gibbons has called a special session for Feb. 23.

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A staunch no-tax proponent, Gibbons said the state must make tough decisions and raising taxes is not an option. He blamed Democrats in the Legislature for Nevada's budget crisis.

Gibbons gave no new specifics on how he intends to fix the budget.