SAN FRANCISCO (AP) — State community college leaders are warning of an unexpected budget shortfall that could lead to reduced courses, staff and services this year.

California Community Colleges Chancellor Jack Scott says the 112-campus system faces an additional $149 million deficit because of lower-than-expected property tax revenue and greater demand for student fee waivers.

The shortfall comes on top of a $400 million budget cut for the current fiscal year and a $102 million midyear cut triggered because state revenues fell below projections.

Scott says most of the new shortfall comes from a dramatic increase in students receiving fee waivers because of the weak economy.

The chancellor says he is working to convince the governor and Legislature to restore funding to the community college system.

Copyright 2012 The Associated Press.