CHARLESTON -- The state may end the year with $100 million less than it had originally projected, but whether or not that's a sign of years to come remains to be seen.

State officials are blaming the weak economy for weaker-than-expected tax returns. State lottery revenues also are down.

"At this time it appears we are going to be a little short," said Mark Muchow, deputy secretary of the state Department of Revenue.

West Virginia so far has avoided the budget problems plaguing other states during the recession. And a $100 million shortfall is a relatively small portion of a nearly $4 billion state budget.

However, the state budget was propped up by record coal severance collections and by generous lottery revenues. Few states rely as heavily on severance taxes to fill their coffers as does West Virginia, and only Nevada -- home of Las Vegas -- relies more on gambling revenue.

But both sources could dry up in coming years.

Proposed cap-and-trade legislation before Congress has at least the potential to put much of the state's coal industry out-of business, if critics of the bill are to be believed, and that could chip away at severance tax revenue. West Virginia generated a record $379 million in coal severance taxes last year, thanks to high coal prices. Some of that went to counties, but most of it went to the state.

At the same time, the state's gambling industry relies heavily on out-of-state gamblers to make a profit. But neighboring states are expanding gaming options in order to generate revenue and provide jobs. This week, Ohio voters approved a ballot measure allowing casinos in Columbus, Cleveland, Cincinnati and Toledo. The state typically generates $500 million to $600 million in lottery and excess lottery funds, which help pay for government functions that tax revenue would likely otherwise cover.

State officials have been projecting decreasing severance tax collections under the assumption that some cap-and-trade policy would pass. As for lottery, they are taking a wait-and-see attitude.

As for the immediate shortfall, Gov. Joe Manchin already has ordered state agencies to cut their budgets by 4 percent, largely by not filling vacancies and improving efficiency.

The state also has a rainy day fund equivalent to 13 percent of the state budget, Muchow said. Most states that rely heavily on severance tax collections maintain large rainy day funds because of the volatility of energy prices.