Topeka Kansas is ending the 2009 fiscal year with its tax collections $126 million below estimates.
The total shortfall for the fiscal year that was ending Tuesday was slightly less than had been expected.
Gov. Mark Parkinson must now decide what to cut in the budget that takes effect Wednesday so that the state begins fiscal 2010 without a deficit.
Senate President Steve Morris says Parkinson should look at all areas of state spending, including education.
Parkinson is planning a news conference Thursday to outline plans to trim planned spending in the $13 billion budget. He has the authority to cut spending as he sees fit to balance the budget.