HARRISBURG — Pennsylvania state government's tax collections fell short by $390 million in the important month of April, raising the likelihood of more spending cuts or tax increases.

House Democratic Appropriations officials said this morning there are signs of an economic recovery, despite the $1.1 billion shortfall for the first 10 months of the budget year.

More specifics are to be available later today. The figures will have an impact on budget negotiations between Gov. Ed Rendell and legislators ahead of the July 1 start of the new fiscal year.

Income-tax collections fell short in April, but income tax withholding was above estimates. Democrats say that means people are going back to work.

Motor vehicle sales tax collections are strong, which Democrats say means people are purchasing big ticket durable goods.