State agencies are being asked to review operations, space, travel and hiring to cut their budgets by 15 percent.

State tax collections were about $960 million, or 44 percent, less than expected for April, and Gov. Eric Holcomb said the state could see a drop of more than $3 billion in tax revenue over the next 14 months.

The total revenue generated by the state in April is nearly 50 percent less than projected. The state's budget director says, its hard to predict what might happen in May.

A memo issued this week by the State Budget Agency directs department leaders to take action for reducing expenses, along with no vehicle or furniture purchases.

Tax revenues came in about $63 million less in March than the state budgeted for. But Office of Management and Budget director Cris Johnston says that doesnt yet reflect a significant impact from the ongoing pandemic.

Sales, individual and corporate income taxes all bested projections, combining to set revenues more than $50 million ahead of expected levels.

State Budget Agency analysts say greater-than-expected sales tax revenues include payments from online sales tax, which many retailers are now paying for the first time.

Indiana tax collections have outpaced state budget targets in seven of the last 14 months.

The state didnt take in as much money in taxes in July as budget writers planned, but it was close.

Sales taxes, the states largest revenue source, did not meet projections, though theyre still on target for the overall fiscal year.