DOVER, Del.- More than 1,000 state workers gathered outside Legislative Hall in Dover on Wednesday night to protest a proposed 8 percent cut in their pay.

Workers chanted "No pay cuts" while others held up signs expressing anger toward Gov. Jack Markell, who introduced the idea of pay cuts earlier this year.

Markell said he is open to any ideas that can help stop state employees from taking a pay cut, but the budget situation is so bad he said state workers may have to make sacrifices.

The governor also said the failure of a bill to allow sports betting and increase taxes on casinos Tuesday means lawmakers may have to come up with another $55 million to trim from the budget. Right now the state deficit stands at $780 million. The governor, though, said he will continue to push for sports betting.

"We've got to keep fighting. The bottom line is we all want to improve upon the right percent pay cut, but we need the revenue to do so," Markell said. "If we are going to pay teachers and keep police on the streets we've got to generate revenue. We'll keep fighting."

Still, state workers say it has been three years since they have received raised and the cuts would be unfair.

State employee Anthony Episcopo said, "Its not that we won't take sacrifices but we've had increased volume in the work we're doing. We haven't had a pay increase in three years. We probably won't have another one for three years, and now their asking us to take a pay cut."

Lawmakers have until June 30 to decide on the pay cuts.