Southfield (WWJ)  -- Michigan lawmakers will have to make cuts in order to balance this year's state budget.  And at the same time work to eliminate a shortfall for the 2009 budget year that begins in October. 

The state treasurer and directors of the Senate and House Fiscal agencies said Friday revenues for the current budget year will be about $61 million less than they expected in January. That's a small amount in a $43.6 billion budget.

As for the budget year that starts Oct. 1, the state likely is facing a shortfall of $170 million to $350 million.

That could mean K-12 schools, universities and some programs may not get as much as Governor Jennifer Granholm has proposed.

A statement from the governor's office says the nation's economy has entered recession, which is impacting Michigan significantly.  Examples include:

--The federal stimulus package, designed to help combat the national recession, will cost Michigan an additional $96.5 million by the end of fiscal year 2009. 
--The depressed housing market will cost the state more than $200 million over these two years as lower home values reduce property tax collections. 
--Soaring fuel prices mean consumers are spending less money on other goods, lowering tax collections.

The statement says state government will cut 60.2 million dollars without requiring executive order cuts.  

State lawmakers and the governor are expected to start discussing final budget details in the coming weeks.  

Also affecting the budget are the cost of the state's new film industry credits.  

The results of Friday's Consensus Revenue Estimating Conference showed the state bringing in $472.3 million less revenue in FY '09 than experts projected in January, according to MIRS. 

During the conference,  University of Michigan economists George Fulton and Joan Crary said Michigan's economy will continue to struggle through the end of 2009, but turn around in 2010.  

Fulton said while jobs requiring less education have been declining at a steady rate,  jobs requiring higher education have actually increased slightly.