INDIANAPOLIS, In (WIBQ)-Indiana's revenue picture is showing no signs of improving.

Tax collections for February fell $86 million below a revised December forecast. Revenue is down $166 million in the first three months since that forecast.

Revenue has fallen $895 million below a May forecast that lawmakers relied on to pass the current two-year budget in June.

Gov. Mitch Daniels has imposed hundreds of millions of dollars in budget cuts already, but the state will exhaust what was a $1.3 billion surplus by the time the current budget cycle ends in June 2011 if revenue trends continue.

The state would be operating in a deficit at that point unless further steps are taken.