The state of Oregon is facing an immediate 140 million dollar shortfall in revenue, prompting Governor Ted Kulongoski to order across the board cuts in all state agency spending. The new revenue forecast predicts the state will be more than 800-million dollars short of the amount needed to maintain current services through 2011. State economist Tom Potiowsky says the economy could get worse before any recovery begins.

Meanwhile, Senator-elect Chris Telfer admits legislators will have tough decisions ahead of them as state lawmakers mull over the latest downturn in the economic forecast. Instead of across the board cuts, she would prefer to see prioritization of budgets. Representative-elect Judy Stiegler says the decisions will reflect what Oregonians think are important. She says consideration should be given to health care for kids, education, and taking care of veterans.