Plunging natural gas prices are prompting

some concern from state leaders as lawmakers continue discussions

on cutting the state’s income tax and developing a budget for the

upcoming fiscal year that begins July 1st.

State lawmakers are projected to have an estimated $6.6 billion

to spend on the fiscal year 2013 budget, but that estimate was

calculated with a projected price of natural gas of $3.64 per 1,000

cubic feet. The price of natural gas closed Friday at $2.19 per

1,000 cubic feet.

House Republican budget chairman Representative Earl Sears says

those negotiating a planned cut in the state’s income tax are

"very concerned about the drop in the price of natural gas."

But the governor’s finance secretary says high oil prices will

more than offset lower natural gas prices.