Topeka ? Gov. Bill Graves said Wednesday that the state may have to layoff or furlough employees to avoid having a budget deficit at the end of June.

Graves released preliminary figures that showed the state received $50.3 million less than expected in revenues in April, something he and the Department of Revenue attributed to a slump in the economy last year.

He said revenues are likely to fall short of expectations again in May, and Budget Director Duane Goossen said it is possible for the state to end its fiscal year with revenues $100 million less than estimated.

That could leave state government with budget deficit of more than $60 million, which forces Graves to consider immediate cuts in spending or simply postponing bills until after the next fiscal year begins July 1.

To underscore the seriousness of the state’s financial problems, Graves disclosed that the state has delayed part of an aid payment to public schools for the fourth time in five months. The state owed school districts $208 million Wednesday but paid only $104 million, with the rest delayed at least a week.

Graves made his comments as hundreds of advocates and activists for the disabled rallied outside the Statehouse, demanding an increase in funding for social services. The event was sponsored by InterHab, which represents community organizations providing services to the disabled.

Asked during a news conference about furloughs or layoffs of state employees, Graves said they were possibilities, adding, “Right now anything is a possibility.”

Graves said he hasn’t formed a plan yet for avoiding a budget deficit.

“We’re going to sit down and look at our options,” he said.

Legislators convened their wrap-up session Wednesday already needing to close a projected $700 million budget shortfall. Word of the preliminary April collection figures came Tuesday night.

“It’s very disturbing and disheartening and compounds the problem,” said House Appropriations Committee Chairman Kenny Wilk, R-Lansing. “Fifty-million dollars in April is a big miss that’s just a big miss.”

The preliminary tax collection for April was $419.5 million. State officials had expected almost $470 million. Collections in March were $27 million below the official forecast.

“I think it doesn’t bode well for the coming months or the next legislative session,” said Rep. Rocky Nichols, D-Topeka, a member of Wilk’s committee. “It’s a devastating, brutal dose of reality.”

Legislators learned of the numbers after InterHab and education officials called on legislators publicly to put more money into aid for public schools and social services.

By law, legislators must use the official March 8 estimates the ones that lawmakers said are too optimistic in completing a budget. But Nichols said the latest collection figures are the “pink elephant sitting in the corner of the room” and can’t be ignored.

Wilk said, “We’re nowhere near the bottom of the Kansas economy.”

Before the latest revenue collection figures became public, education officials said during a news conference that schools can be funded adequately only with a tax increase of at least $300 million.

At a separate news conference, InterHab threatened to sue unless funding for the developmentally disabled rises. Its officials did not specify where or when a lawsuit might be filed.

InterHab officials said the state underfunded services for the developmentally disabled by $32 million in the fiscal year that ends June 30.

A $4.4 billion compromise budget drafted by House and Senate negotiators last week would keep aid to public schools at its current $3,870 per pupil in fiscal 2003, which starts July 1.

The compromise budget would use $110 million in cash reserves to finance ongoing government programs but still would require $222 million in higher taxes to balance. Those figures don’t take into account the shortfall in revenue collections in March and April.

A measure before the Senate would increase a wide array of taxes to generate $335 million.