DES MOINES, Iowa (AP) – Gov. Terry Branstad says he will work with legislative leaders in response to lower-than-expected revenue for the upcoming budget, but he didn’t specify what cuts are possible. Branstad said Monday he wants to work with lawmakers to address “the financial realities” of the budget that goes into effect in July.

State budget experts released data recently that determined Iowa is taking in less revenue than expected. A new calculation means there is about $7.3 billion available to spend next fiscal year. Branstad had budgeted for more available funds. He said the new budget would be “extremely tight,” but he did not provide details on potential cuts. Branstad also did not specify whether the new figure would lower how much he recommends the state spend on basic aid for K-12 education.