LINCOLN, Neb. (AP) — Nebraska has started a new fiscal year with lower than expected tax revenue, a sign that the state’s projected budget shortfall could worsen.

The Department of Revenue announced Friday that net tax receipts in July totaled $235 million, which is nearly 8 percent lower than the certified forecast of $254 million.

Net sales-and-use taxes and miscellaneous taxes were higher than projected, but net income tax receipts from individuals and corporations were lower.

The Nebraska Economic Forecasting and Advisory Board set the forecast in February.

Lawmakers and Gov. Pete Ricketts are preparing for a tight budget during the 2017 session. Ricketts has directed state agency leaders to look carefully at whether new hires are necessary, limit travel and delay hardware and software purchases.