CHEYENNE, Wyo. (AP) — Gov. Matt Mead says he and state lawmakers are watching slack natural gas prices with concern as they consider how to craft the state budget for the coming two-year funding cycle.

Mead in December proposed a $3.4 billion state funds budget based on state revenue projections that called for natural gas to average $4 per thousand cubic feet this year.

Mead was forced to cut his spending recommendations by over $100 million after analysts cut their projected average gas price to $3.25 per thousand cubic feet in January.

Gas is currently trading at around $2.70 per thousand cubic feet at the Opal Hub in western Wyoming.

Mead noted that the Legislature's Joint Appropriations Committee recently recommended setting aside $150 million from state reserves in case gas revenues fall below projections.