Oregon Public Broadcasting

Oregon Governor Ted Kulongoski sent a letter to legislative leaders Wednesday threatening to veto any budget that dips into state reserves more than he finds prudent.

Ted Kulongoski: “Since the very beginning of the legislature I've said that I thought that the legislature should take a long term view of our fiscal situation. Not just for this legislative session. And what I worry about is that in February when they come back in, what will be the state of our revenue at that time. And I've told them since I gave my inaugural address, that I am going to do every thing I can to protect those reserves.”

The debate concerns about $200 milllion -- a relatively small amount compared to the total budget. But Kulongoski says with unemployment at 12.4 percent and rising, he wants the reserves to be protected.

Speaker of the House, Dave Hunt responded to Kulongoski's letter saying he's confident lawmakers and the governor can work out their differences.