LINCOLN, Neb. (AP) — The board that projects Nebraska’s tax revenue is predicting the state will collect less than expected, creating an estimated $132 million budget shortfall.

New estimates approved Friday could force lawmakers to make cuts within the current two-year, $8.7 billion budget that was approved last year. It also could complicate efforts to pass tax cuts and other spending priorities.

Sen. Heath Mello of Omaha, chairman of the Appropriations Committee, says lawmakers will have to work through an “extremely lean” legislative session next year.

Gov. Pete Ricketts says he will work with senators, tax experts and others to prepare tax proposals, while taking steps to control state agency spending.

The new estimates were approved by the Nebraska Economic Forecasting Advisory Board, which reduced its revenue forecast by $154 million.