INDIANAPOLIS (AP) — A new Indiana revenue forecast projects the state will collect nearly $400 million less in tax revenue than lawmakers expected when they approved the $32.3 billion budget in April.

The Northwest Indiana Times reports that officials told the State Budget Committee Monday that 70 percent of the anticipated revenue reduction is due to a sharp decline in corporate income tax collections since the budget year began in July.

David Reynolds is a senior fiscal analyst for Senate Republicans. He says it’s clear that those revenues won’t increase as more businesses claim all the state tax credits they’re entitled to and take them immediately as refunds, rather than applying them to future tax liabilities.

The forecast also eliminates more than $170 million in corporate income tax revenue from current budget year projections.