Gov. Jim Gibbons

Gov. Jim Gibbons: Getty Images PhotoGov. Jim Gibbons announced Thursday that last month's tax collections from the state's gaming industry were far lower than projected, a development that could lead to further economic hardship for the state.

Gibbons said in a statement that the tax haul from the state's casinos in June was $19 million less than last June, and "significantly worse" than an economic panel predicted just weeks ago.

Gov. Jim Gibbons: Getty Images PhotoGov. Jim Gibbons signed into law Monday seven bills passed by the Nevada legislature during the body's special session last week.

By signing the bills, Gibbons agreed to cut $275 million from the state's two-year budget, slicing a number of programs -- including a $47 million fund for school textbooks and supplies -- and avoiding a tax increase, which Gibbons and legislative Republicans adamantly opposed.

Last Thursday, Gibbons gave a televised address challenging the legislature to reduce the budget without increasing taxes or cutting educational programs.

In a statement released Monday afternoon, Gibbons praised the legislature for reaching the agreement, but took exception to some of the changes:

'I’m pleased that lawmakers came together to balance this shortfall without increasing taxes,' Gibbons said.

"In the end, the agreement lawmakers reached was very similar to my recommendations. With the discretion I gave them, though, they included some measures that I would have preferred been excluded, particularly reducing the funding for textbooks for our school children. I believe it would be more prudent to have targeted reductions to operating budgets of state agencies and protect these valuable resources. Still, I commend the Legislature for their willingness to make these difficult choices in these tough economic times."