The state's general fund is expected to face cash flow shortages of more than $1.3 billion at various points this summer, according to the quarterly DOA report sent to Joint Finance members this week.

The report from Administration Secretary Mike Morgan says the state may have to notify the committee of the need to delay payments and possibly prioritize which bills it pays out of the general fund during those low balance periods.

The report does not give an update on where the state's overall budget shortfall now stands amid reports that weakening tax receipts are pushing the shortfall higher.

But the details of the state's looming cash flow problems underscore the difficult budget situation lawmakers face.

Morgan notes in the report that the "forecast is preliminary in nature and is subject to ongoing revisions due to the unknown timing of certain significant provisions of the Governor's proposed budget." The forecast also doesn't include receipts from potential operate note proceeds in fiscal year '10.

Find the report here.

-- By JR Ross