MONTPELIER, VT. >> Gov. Peter Shumlin is continuing to sound upbeat about Vermont's economy, despite a slight downgrade in the state's revenue forecast.

Consulting economists Jeff Carr and Tom Kavet told the state Emergency Board on Tuesday that they expect state revenues to fall just short of what they were forecast to be last July.

That's not good news for a state that is already facing budget shortfalls this year and next.

Vermont lawmakers are beginning a state budget process that is facing an expected $70 million shortfall for the fiscal year that begins July 1.

At Tuesday's meeting Shumlin said the revenue news makes the budget-writing more difficult, but still manageable.

Shumlin is expected to outline his budget plans Thursday in his annual budget address.