ST. PAUL, Minn. (AP) - Minnesota's bad financial news continues.

A state budget update released Monday shows state revenue fell $11 million below projections in the last two months. That comes after state economic officials announced an anticipated state budget surplus had dropped from $1.2 billion to $900 million amid a slowing national economy.

The drop in state revenue in February and March was by less than 1 percent, but there are signs of larger trouble. A 6.5 percent decrease in the state's income tax collections was nearly offset by increases to corporate taxes and other revenue.

Monday's update doesn't mean the surplus continues to shrink. The report looks only at revenues and not spending patterns.