Indiana tax revenues have come in just below expectations for most of the fiscal year.
The new revenue forecast includes optimistic expectations for individual income taxes.
Through a third of the current fiscal year, revenues are about $61 million below target. That's about 1.3 percent off the mark.
Indiana revenue for the month of July was lower than expected, however better than expected income tax payments helped improve the August numbers.
The 2 percent cut totals about $27 million for the state's colleges and universities.
Despite the good news, the state still isn’t meeting its total target with only two more months left in the fiscal year.
State tax revenues are more than $70 million below expectations through the first quarter of the fiscal year.