Budget Director Linda Luebbering says this year's projected 4 percent revenue decline is too rosy, as is next year's 1 percent increase.

Luebbering blamed the news on the economic recession, but says the federal stimulus will help.

Actuality:  LUEBB5.WAV

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Description: "So, although the stimulus package will improve things, relatively speaking, the economy itself is probably a little bit further behind where people anticipated it would be at this point in time. So they offset each other."

The state needs the tax revenue to pay back the $325 million it has borrowed from reserves this year.

Luebbering says the state will "absolutely" make the May 15 deadline for paying the money back.