New York, California and Florida are among states reportingrevenue collections trailing forecasts in the fiscal first quarter,prompting preparations for a fresh round of budget reductions.

California's receipts fell more than 3 percent short ofestimates for the three months through September, raising concernthat school aid may be cut. In fiscal 2013, New York state may facea $2.4 billion deficit because of smaller Wall Street bonuses andjob cuts, Comptroller Thomas DiNapoli said Oct. 11.

States are projecting combined budget gaps of $31.9 billion infiscal 2013, according to the National Conference of StateLegislatures in Denver. A 14 percent third-quarter drop in theStandard & Poor's 500 Index, the worst performance since theend of 2008, and concern that Europe's debt crisis may spread havedented consumer and business confidence, curbing tax receipts.