State tax collections last month were down $90 million from forecasts and that is prompting warnings of additional layoffs and budget cutbacks.
State Senator Dave Owen is chairman of the Joint Budget Committee and says the picture isn't pretty right now.
He says there will be programs eliminated because of this. Owen says the lower income is because more Coloradans are out of work and consumers are spending less than expected this holiday season.
The legislature sent the governor a $13.8 billion spending plan in May, but that's down to $13.2 billion now.