The state’s Economic and Revenue Forecast Council this morning adopted a new projection of tax collections that dropped anticipated reserve accounts from about $730 million to just $163 million. This comes not even a day after the governor signed the state’s new two year budget into law.

You can find the forecast here.

If there is a silver lining, it’s that the budget cycle doesn’t end until June 30, 2013, leaving lots of time for economic improvement that could push the state onto stronger fiscal ground. The Council is due to issue a new forecast on September 15 and another on November 17.

The latter forecast is the one the governor will use to write the supplemental budget she’ll propose to the Legislature in December. Lawmakers will then convene in January to draft their own plans for a budget rewrite.