MADISON, Wis. (AP) -- Wisconsin's state budget condition has worsened to the point that Gov. Scott Walker and the Legislature will need to take emergency steps to avoid being out of balance before the end of June.

The nonpartisan Legislative Fiscal Bureau on Thursday released the new projections that show the budget will be $143 million short of balancing at the end of the two-year period.

Fiscal Bureau Director Bob Lang says in the memo to co-chairs of the Legislature's budget committee that the Walker administration is looking to address the problem through debt refinancing and restructuring.

At the time of the last estimate in October, the state's budget was projected to end with a positive $73 million balance.

A large reason for the change is a projected $273 million loss in tax collections.

Gov. Scott Walker says the state is still headed in the right direction despite the new revenue forecast.

Walker noted in a statement Thursday that there is projected to be a surplus at the end of the first of the budget this July.

Walker didn't detail what he would do to deal with the projected shortfall next year, other than promising not to raise taxes.

Walker says he is confident the state will be able to balance the budget.