HARRISBURG -- The state's precarious fiscal situation is getting worse -- much worse, the chairman of the House Appropriations Committee said yesterday.

Rep. Dwight Evans D-Philadelphia, said the revenue shortfall for the current fiscal year, which ends June 30, is now projected to be "at least $3 billion."

That's $700 million more than the $2.3 billion that Gov. Ed Rendell forecast three months ago, and $400 million higher than some legislators forecast just a month ago.

"The numbers are staggering," Mr. Evans said. "We have a lot of work to do. Do we need to make decisions that are painful? Absolutely."

The state's original spending plan for fiscal 2008-09 was $28.26 billion, but that is being trimmed by more than half a billion dollars. The state Revenue Department is due to release the state's April revenue collections today.

"Given the national economic indicators, the [Pennsylvania revenue] numbers could be grim," said Rendell aide Chuck Ardo.

April collections are especially important because a large chunk of annual revenue, including personal incomes taxes, are paid in April. The monthly revenue totals are expected to be disappointing, causing the increase in the projected deficit.

Mr. Rendell, three months ago, released a plan to erase the projected $2.3 billion deficit. He is counting on $1.1 billion from the federal government in additional Medicaid funds; he will delay $200 million in contributions to an employee health care fund; shift $250 million from the state's Rainy Day Fund; trim 2008-09 spending by $557 million; and transfer $174 million from leases on Marcellus shale property.

Mr. Evans said he will release a budget proposal today to compensate for the added red ink.

There is still no agreement among legislators, however, on how to erase the current deficit. Legislators also don't agree on how large the new budget, for fiscal 2009-10, should be.

Mr. Rendell has proposed a $29 billion budget for the year beginning July 1, but Senate Republicans favor something closer to $27.5 billion.