PROVIDENCE - Rhode Island's two largest revenue sources dropped during the first 10 months of the current fiscal year, further complicating the state's budget crisis.

State Tax Administrator David Sullivan said sales tax collections were down $23 million - or 3.1 percent - compared to the same period in the previous fiscal year. Income tax revenue declined by $9 million - or 1 percent - in the first 10 months of fiscal 2008.

"There's been no signs now to show there's recovery," Sullivan said.

Rhode Island's unemployment rate also rose to 6.1 percent, with the state losing 7,200 jobs in the third quarter of last year.

Gov. Don Carcieri said in an interview on WSAR-AM Monday that as far as he's concerned, the state is already in a recession.

The governor and General Assembly face an estimated $400 million deficit as they continue working on a budget for the new fiscal year in July.

In one piece of good news, state lottery receipts were up more than 14 percent from this same time last year, thanks largely to activity at the state's two licensed slot parlors.