SALEM, Ore. -- Oregon lawmakers are bracing for a drop in revenue.

An updated revenue forecast, released Wednesday, indicates a $142 million shortfall in the current biennial budget and projects a $1.3 billion deficit in the 2009-11 biennium, according to Senate President Peter Courtney.

The Associated Press projected a slightly smaller budget shortfall of more than $800 million.

 Background: Breakdown of state revenue shortfall

 Also: Washington deficit tops $5 billion

Gov. Ted Kulongoski called Wednesday for his administration to reduce agency spending in order to prevent the General Fund deficit projected in the current biennium.

Kulongoski and legislative leaders have asked state agencies for a list of potential cuts for the next six months on top of bigger cuts expected over the next two years.

"This recession demands tough decisions and requires shared sacrifice -- and today's actions is the first of many difficult decisions that lie ahead," he said in a press release.

Kulongoski said the updated forecast highlighted the economic uncertainty facing Oregon and the rest of the United States in this recession.

The reductions will be equally distributed, according to the governor's office, and will slash approximately 1.2 percent from each agency budget in the current biennium. However, the cut will be nearer to 5 percent of what each agency has left to spend.

State Senate President Peter Courtney said the budget shortfall "was not unexpected" and that legislative fiscal officials have until Dec. 1 to identify reductions for the current budget along with the 2009-2011 budget.

Kulongoski is also set to release the recommended budget for 2009-2011 on Dec. 1. He says state agencies should expect future budgets to be aligned to current economic realities, and reduce accordingly.

The Associated Press contributed to this report.