New economic forecasts in Rhode Island predict the state will take in about $60 million more than expected this fiscal year.
State budget and financial experts calculated the number Thursday.
The good news is likely to reduce the need for sharp budget cuts or tax hikes as lawmakers work to craft a new state budget.
Older revenue projections had suggested that the state faces a budget deficit of $117 million in the fiscal year that begins July 1, but that number could be cut by more than half when the new estimates are factored in.
The revenue estimating panel plans to submit its final forecasts to lawmakers next week.
The General Assembly uses the revenue estimates to set each year’s state budget.