PHOENIX (AP) -- A new state report has both good news and bad news on Arizona state government finances being hurt by the current economic downturn.

The legislative budget staff says preliminary figures indicate tax collections in June - the final month of the last fiscal year - were $78 million below already reduced expectations.

That makes June the eighth straight month in which revenue collections were below those from the previous fiscal year.

On a brighter note, the budget staff says state agencies apparently trimmed their spending, adding $104 million to dollars expected to be left over at the end of the fiscal year.

That means less money than expected will be withdrawn from the rainy day fund to balance last year's books.

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