"We are broke in this state. We have been broke for years. People have ignored that for years, and it's about time somebody stood up and told the truth."

Wisconsin's new GOP governor delivers the harsh news.

Gov. Scott Walker said Friday thousands of state workers would be laid off if the Legislature does not adopt his plan to repair the budget that includes cutting benefits and taking away almost all union bargaining rights from public workers.

Walker also signaled that in a larger budget plan coming later this month he would cut aid to local governments and let local officials deal with those cuts at least in part through savings on their employee costs. Walker wants the Legislature - which is controlled by his fellow Republicans - to act quickly on the plan, approving it by Feb. 25. It could move even faster than that, likely going before lawmakers next week.

The governor also said the National Guard is at the ready to take control of state prisons if correctional officers strike or take job actions. No union official has endorsed such a job action, but Walker said he was prepared for any contingency.