By NATE JENKINS

Associated Press Writer

LINCOLN, Neb. (AP) -- Just three months removed from a painful round of budget-cutting, Nebraska lawmakers will have to find another $30 million, but a key senator thinks it can be done without hurting state services.

A state board whose estimates form the baseline for the state budget projected Friday that current-year revenues will be about $40 million less that previously predicted. The board projected revenues next fiscal year, which begin in July, will surpass a previous projection by about $9 million.

The upward revision for next year foresees significantly less growth than what was modeled by two firms whose projections the board uses to set new revenue forecasts.

"I think the economy's going to be flat; I think our receipts are going to be relatively flat," said Steven Ferris of Lincoln, a member of the Nebraska Economic Forecasting Advisory Board.

The extent of the overall downward revision, approved Friday, is close to what lawmakers expected. They have been looking for dollars to make the budget meet the new, official projections.

Roughly $18 million to $19 million in federal stimulus dollars could flow into state coffers.

In addition, "there's some different pots of money we could access" within state government, said Sen. Lavon Heidemann of Elk Creek. Heidemann, chairman of the budget-writing Appropriations Committee, says that means the roughly $30 million could be found without cutting state services.

In November, lawmakers reduced the two-year budget by $334 million to address lower-than-expected revenue. Those budget cuts could mean layoffs, fewer health care services for poor children and the elderly, and higher tuition at the University of Nebraska, among other possible effects.

Gov. Dave Heineman said Friday that the forecast indicates the state has more challenging times ahead, and that it's clear "the Legislature needs to enact additional spending reductions."

While Friday's revenue forecast sets a new budget bar for lawmakers, the tax season under way will be more important. If income tax revenues this spring fall below the projections set by the board Friday, the state could face serious budget problems.

Actual revenues so far this fiscal year, which began in July, already are about $34 million below earlier projections set by the forecasting board. Revenues for February could be another $16 million below projections.

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