The state's revenue collections in May fell $104 million below earlier projections.
Preliminary estimates for June are expected to be issued Tuesday, and another month of lower-than-expected revenue could mean more cuts in the budget.
A new budget year begins Wednesday. On Thursday, Gov. Mark Parkinson will meet with reporters to explain his plans for balancing the budget. The governor has the authority to cut spending as he sees fit to balance the budget.
The new $13 billion state budget already reflects cuts made by lawmakers earlier this year.