SALEM, Ore. (AP) -- Gov. Ted Kulongoski has threatened to veto the Legislature's K-12 funding plan, throwing months of work spent balancing a deflated state budget in jeopardy.

At issue is just how much lawmakers ought to keep in reserve funds to help guard against further drops in state revenues during the coming year.

Democratic lawmakers want to commit $5.8 billion to K-12, leaving the state's reserve at about $500 million. The governor thinks the state should only commit to $5.6 billion and allocate more later if the economy allows.

Legislators are advocating a bigger budget after hearing school districts were budgeting too conservatively -- laying off more teachers than necessary and cutting the school year too severely.