Indiana lawmakers will have about $2 billion more to use in the new state budget after an updated projection of state tax revenues was unveiled Thursday.

State budget officials project Indiana will have a $1 billion hole in its budget by the end of the current fiscal year, even with the state's significant financial reserves.

The Schahfer, Michigan City, Petersburg and Rockport coal plants will be fully or partially closed by 2028. Thatll likely mean less tax revenue for things like schools.

The state is covering its shortfall through cuts to state agencies, federal help and its budget reserves -- with $1.4 billion still left in state coffers.

A recent study by Ball State University economists shows local county-level revenues may be down an average of between 2.4 and 6.8 percent this year from 2019.

Officials say they expect a $1.7 billion shortfall this fiscal year (which ends in two weeks) and another roughly $2 billion loss next fiscal year.

State revenue numbers were about $220 million below projections, or about 20 percent. Year-to-date revenue collections are almost $1 billion less than budgeted for.

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.

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

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.