CHEYENNE, Wyo. (AP) — Gov. Matt Mead says Wyoming's budget woes aren't as bad as predicted, but he says the state still faces big challenges with funding its public K-12 school system.

Mead said Wednesday that the state general fund is exceeding projections by about $70 million. Other revenue, including various school funds, also are doing better than anticipated.

However, the Republican governor says that's still isn't enough to overcome the estimated $250 million a year shortfall expected in education.

While there's talk of more cuts and new revenue, Mead says everyone is waiting for a report from consultants on whether Wyoming should change how it funds schools.

Separately, Mead says he opposes sanctuary cities and doesn't agree with letting the federal health care law fail on its own without a replacement.