HARRISBURG — A top Republican state senator said today Pennsylvania's budget situation is worsening and says it's reasonable to expect a $1 billion deficit by July 1.

Senate Appropriations Committee Chairman Jake Corman said today that disappointing March tax collections are likely to bring the state's fiscal year shortfall to at least $700 million.

With three months to go in the fiscal year, the Centre County Republican says a $1 billion deficit, or more than 3 percent, is possible.

Corman says Democratic Gov. Ed Rendell should consider additional cuts in this year's budget.

In addition, he says next year's spending should be around this year's $27.8 billion level. That would be more than $1 billion less than the budget proposed by Rendell and passed last week by the Democratic-led House.