Oregon Public Broadcasting

Oregon’s upcoming budget forecast could show a shortfall approaching one billion dollars, according to remarks Governor Ted Kulongoski made Friday to the state school boards’ association.

The next budget forecast is due Wednesday - and state officials say they see tax revenues declining further from September's prediction of a 550 million dollar shortfall.

Kulongoski continued to temper expectations Friday.

Ted Kulongoski: “Given the rising unemployment in Oregon, and the weakening corporate balance sheets, there is every reason to believe that this forecast, which I must use to draft my budget, will show an additional decline of several hundreds of millions of dollars.”

Kulongoski said that he would prioritize education - from Early Head Start through higher education.

The governor said transportation is important, too, but he wouldn't say where he's likely to cut.

The governor’s proposed budget is due December 1st.