TRENTON, N.J. (AP)  -- A rough week looms for New Jersey's already cash-strapped budget proposal, but it may not be as bad as what was once feared.

Assembly and Senate budget committees will meet Tuesday and Wednesday to hear new tax collection estimates from state and legislative budget officials.

Most expect the figures, coming amid national and state economic struggles, will predict less tax revenue than expected when Gov. Jon S. Corzine unveiled a $33 billion spending plan in February.

"My expectation is, based on how the economy is performing, is that if there are going to be surprises, it's probably going to be lesser revenues," Corzine said.

That could make it difficult for legislators to find alternatives to the $2.7 billion in cuts already proposed by the Democratic governor. It could also mean deeper budget cuts would be needed to balance state spending without moves such as a tax increase.

But Senate Budget Chairwoman Barbara Buono expects the shortfall will be $100 million to $200 million, not as bad as the $500 million shortfall Corzine speculated was possible a few weeks ago.

And Buono said the good news is twofold, the projected shortfall for next fiscal year is less than initially thought, and collections for the fiscal year ending June 30 could be about $600 million higher than expected.

Lawmakers and Corzine must agree to a budget plan by July 1.

Corzine has said he won't approve spending more than what the state brings in through tax collections.

"It may have to go down even more because of the recession, not taking in as much revenues as we had anticipated, and that has real implications on spending, and we're not going to go out and borrow against that," Corzine said. "We're going to actually match what our revenues are."

Corzine's budget plan proposes cuts in state funding for property tax rebates, cities and towns, hospitals, state colleges and universities, and nursing homes, along with new and higher fees for a drug program for the elderly and some Medicaid services.

New Jersey isn't alone this year.

According to The Center on Budget and Policy Priorities, 28 states are predicting budget deficits for next fiscal year.

New Jersey legislators said they're ready for a tough road ahead, but acknowledge the need to cut spending.

"We're all in the same ballpark," said Senate President Richard J. Codey, D-Essex.

Senate Majority Leader Stephen Sweeney said he's hopeful the tax numbers won't be too different from what was predicted but said that wouldn't make things any easier.

"We can't spend money we don't have," said Sweeney, D-Gloucester. "Everyone talks about restoring things, but we can't restore everything. That's impossible."

He predicted "a whole lot of wrangling" in developing a final budget plan.

"It's a budget nobody likes, but we just can't make things up," Sweeney said. "The problem is we're broke."

Buono continued to emphasize she intends to push to restore municipal aid and prevent legislators from adding their own pet projects to the budget, as they typically have done.

"I'm standing firm on no new legislative additions," said Buono, D-Middlesex.

Many legislators have decried Corzine's cuts.

Assemblyman Harvey Smith, D-Hudson, for instance, has criticized plans to put a $100,000 household income limit on a popular community college scholarship program.

"We're attaching a dollar sign to people's live and I have a problem with that," Smith said.

Corzine noted "arguments on about what we're spending," but said, "One way or the other, we're not going to spend more than we take in this year. We're going to hold firm to that."

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