TRENTON, N.J. (AP) - The first few months of Internet gambling have been a bust for New Jersey.

Online gaming is now projected to generate about $12 million during its first seven months. That's a far cry from the $180 million Gov. Chris Christie's administration originally forecast in online gaming taxes for the current state budget.

The state has revised revenues downward by $251 million, with about half of the decline coming from underperforming gambling taxes.

As state budget hearings got under way Tuesday, Sen. Paul Sarlo said a gas tax increase could fund transportation needs.

Sarlo, who heads the Senate Budget Committee, says a new revenue source is needed so the state can adequately invest in infrastructure.

The Legislature is debating Christie's $34.4 billion budget for the fiscal year that begins July 1.