SPRINGFIELD -- As state revenues plunge, this year's proposed cuts to state parks and historical sites might only be the beginning, says a government watchdog group.

The Commission on Government Forecasting and Accountability says August revenues are down $457 million from the same time last year.

The reason for the state's deteriorating revenues is clear: the economy. Cash-strapped Illinoisans are shopping less, purchasing fewer lottery tickets and wagering less on riverboats.

"All that stuff means that we're looking at a pretty tough fiscal year. Even tougher than last year's," said Ralph Martire, executive director for the Center for Tax and Budget Accountability.

If lower than expected revenues continue, it could put lawmakers, like state Sen. Mike Jacobs, D-East Moline, in an uncomfortable position.

"You can't afford cable if you can't pay for it," Jacobs said. "I think Illinois needs to look around for things it can unplug."

Illinois is already in a budget crunch. Gov. Rod Blagojevich cut $1.4 billion from this year's budget and announced plans to eliminate 450 child social worker jobs and close 25 state parks and historic sites.

The biggest part of August's revenue drop was $330 million in federal payments for programs like Medicaid reimbursements. Those federal payments are designed to match what the state pays out in Medicaid but because the state is short on cash, it is not able to promptly pay medical providers, which ultimately costs it federal reimbursement money.

Experts say it's no surprise that personal income and sales taxes are sluggish given a growing unemployment rate and a poor economy.

"We certainly know that people are slowing down their purchases," said Thomas Johnson, president of Springfield-based Taxpayers' Federation of Illinois. "I think the executive and legislative branch have to get together and decide what it is state government can afford and come to some level of agreement."

Education and health care can typically avoid nasty budget cuts because they're politically popular, Martire said. But human services and natural resources could find themselves again under the budget axe if revenues continue to slide, he said.

In fact, those same groups are on the chopping block now. Hoping Blagojevich will reverse his decision to close state parks and layoff workers, lawmakers recently passed a $221 million bailout plan.

But Blagojevich has yet to sign or veto the measure that raids various special-purpose funds.

A gubernatorial spokeswoman said the governor's office has taken issue with parts of the plan.

"We are not even certain that the dollars from the funds they are targeting will actually be there," said spokeswoman Katie Ridgway. "Therefore it is premature to say anything about spending until we see what money is really available."

It's too early to worry about next year's budget, said state Rep. Lisa Dugan, D-Bradley.

"It's kind of early to call when you're only two months into a 12-month budget," she said. "I don't think I would be ready at this point to say that it's time to start panicking."

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