GUELPH, Ont. - Premier Dalton McGuinty is warning of belt-tightening ahead of the fall economic statement but says raising taxes is not part of the plan.

McGuinty says government finances have taken a hit from the recession, and that means caution is needed when it comes to funding increases for any program.

McGuinty isn't saying whether those tough choices mean things like job or program cuts, but adds tax hikes are not on the table.

He says the government will still support key priorities like health, education and social programs for the most vulnerable.

Athough the Children's Aid Society says it's facing a $67-million shortfall and is calling on the government for help, McGuinty would only say that the government and agency will have to find a way to work together through the economic downturn.

It's a similar message he had for the province's hospitals a day earlier -- saying that while he'll try to help them out of their current shortfalls, hospitals shouldn't expect as much funding as in the past.

McGuinty also admits the $1 billion spent to bring health records online -- a goal still years away -- was "unhelpful" as he advocates restraint, but says the government is working to turn that debacle around.

The premier and finance minister have said there will be tough decisions ahead as the province struggles to get out of deficit, a feat no longer expected to be achieved by 2015.