Gov. Mike Johanns still believes the state's budget can be balanced without tax hikes. His statements come after the state's official revenue forecasting board increased Nebraska's budget gap from $211 million to $315 million.
The governor says deeper cuts than the ones he originally proposed to lawmakers back in January may be needed to solve the shortfall.
Despite the downsizing of revenue numbers, forecasting board members say the economy is improving.
They point to last year's $756 million shortfall as a sign of that improvement.