EUGENE, Ore. - The economic crisis is hitting Oregon--and hard.  The state is now expecting a serious money shortfall.  These are the numbers: economists say state programs face an immediate $140 million shortfall.

The governor is ordering across-the-board cuts for all programs.

Then in 2009 to 2011, it gets worse.  State government will be more than $800 million short, to maintain current services.

Not only is the revenue forecast bad news for the state.  Local programs that receive state money will also feel the hit.  Kids at-risk for neglect or abuse could be unintended victims.

They've been in the business of healing families for a long time, but that healing work of the Relief Nursery is about to become harder, because state revenue is taking a dive.

Vulnerable, defenseless, impressionable.  Those are the kids at the Relief Nursery.

140 kids come through the doors each week along with their parents. Families that are under stress...with risk factors including unemployment, high stress, or domestic violence.

"Investing in young children is the greatest investment you can make," says Executive Director Irene Alltucker of the Nursery.  But will the state have to cut back on that investment?

Alltucker says the timing couldn't be worse.  Demand for services is rising, while the economy is tanking. 

"People being laid off that never imagined themselves needing support, under stress, that their families are at a crisis point," explains Alltucker. 

She says state money to the Nursery could be cut as much as 8 percent--a big hit for it's Healthy Start program.  That's a home visitation program that helps first-child families.

Here's where the rubber meets the road at the Relief Nursery. The very important 1 on 1 counseling sessions.

You're getting a rare glimpse at a counseling session with Kevin Burns.  He's working with a mom and child and a learning tool called the feelings board.

Burns says, "...and you guys are both being mad at each other. How do you guys fix the problem, so we can have the 'happy' come out?"

Therapeutic pre-schools program manager, Deborah Dreiling, has been with the Relief Nursery seven years.  In the beginning, she saw kids and families with perhaps ten to 15 risk factors.  Now--Dreiling says families are arriving with 18, 19, 20 risk factors.

She tells KVAL, "I think what scares me the most is we have such a high need and it's very important to the overall health of the community that we continue to provide services."

Nursery officials say they'll have to rely on grants and more private fundraisers to try to make up the gap.