CHICAGO (AP) -- As the Blagojevich administration prepares a budget for next year that could have a significant deficit, an official said a $750 million hole in this year's budget needs to be filled.

Comptroller Dan Hynes said the state is entering an "extraordinarily challenging period" because it failed to prepare for an economic downturn as it struggles to pay a backlog of bills.

Hynes told the Chicago Tribune's editorial board Illinois still has a serious budget deficit.

Blagojevich will unveil his new budget February 20, but his administration acknowledged Monday leaders also must close the $750 million hole in the current budget that was fused together in a bitter legislative overtime session. The governor's figure is higher than the $600 million shortfall projected by the legislature's budget forecasters.