RIO DE JANEIRO (AP) — Rio de Janeiro's acting governor says the state's finances are "tragic," adding he has "never seen anything like it."

Francisco Dornelles says that the situation is so bad that the state that's slated to hold the Aug. 5-21 Olympics needs to look into the possibility of selling off property.

He said plunging tax income was behind the state's financial crisis. Much of Rio's tax income came from the Petrobras oil company, which is embroiled in a massive corruption scheme.

News reports have suggested the financial crisis might derail promises to unveil a state-funded subway extension in time for the Olympics.

Dornelles, 81, is standing in for Rio Gov. Luiz Fernando Pezao, who is on leave for cancer treatment.

He was speaking in an interview Wednesday with Rio's O Globo daily.