State tax collections are lower than what revenue administrators expected.

That means deep spending cuts may be necessary.

The Department of Revenue's preliminary totals show personal, corporate income and the sales tax generated about $5 billion for the second half of 2007. That's an increase of less than one percent.

The state was expecting three percent growth.

That means state government will have $120 million less a year to spend.

Governor Doyle is expected to warn of an economic downturn in his "State of the State" address Wednesday.