New York (Bloomberg) — Rhode Island officials said the state will collect $102 million less in revenue next year, largely as a result of a delay in a payment from American International Group.The state assumed it would get $80 million from New York- based AIG, the world's biggest insurer, which last year agreed to pay $1.64 billion to 46 states to settle allegations that it misled investors, faked bids and cheated workers-compensation programs. The payment has been delayed, exacerbating Rhode Island's budget gap, estimated at $360 million, officials said.

"The loss of the AIG payment is a significant hit to our projected revenue," said Russell Dannecker, the fiscal adviser to the state's Senate.

Dannecker and other officials from the General Assembly and Governor Donald Carcieri's administration met yesterday to hammer out a revenue forecast for fiscal 2008, which starts July 1. They agreed that the state will collect about $3.2 billion, which is $102 million less than previously forecast.

Carcieri in January proposed a $3.4 billion budget that increased spending on education and transportation and cut social-service programs to close the projected $360 million deficit. The governor later proposed furloughs for state workers and across the board reductions in state worker salaries.

"It is clear we have not done enough to get spending under control," the governor, a Republican in his second term, said in a statement today.

Carcieri also proposed selling $160 million in tobacco bonds, using the proceeds to pay for transportation projects.

The Democratic-controlled General Assembly hasn't produced a budget yet.