President Barack Obama Monday said the United States was facing an "untenable fiscal situation" and would have to get serious about tackling its federal deficit.

The U.S. budget deficit is forecast at a record $1.47 trillion in the fiscal year that ended on Sept. 30, 2010.

Obama said that emergency government spending measures he took to support growth and hiring when he took office last year had temporarily added to the funding gap, but the deficit had to be tackled going forward.

"I realize that we are facing an untenable fiscal situation," he told a meeting of his economic recovery advisory board to discuss strengthening the partnership between community colleges and the private sector. "What I won't do is cut back on investments like education."

Obama's Democrats, who face punishment in upcoming Nov. 2 congressional midterm elections from voters worried about the country's high deficit, argue their Republican Party rivals would cut spending on education.

He said that "just doesn't make sense" at a time when the economy's struggling and other countries are becoming fiercer competitors.

Obama announced a new initiative called "Skills for America's Future" that aims to promote partnerships between America's top companies and community colleges.

Obama also said on Monday the prospect of a consumer-driven, "V-shaped" economic recovery was less likely because Americans were trying to save more and reduce debt in the aftermath of a deep recession.