CHEYENNE -- Gov. Dave Freudenthal intends to present a conservative budget for the 2011-2012 biennium given an expected $200 million to $400 million less in revenues compared to projections made in May.

The slowing economy and decreases in commodity prices, particularly natural gas, have led forecasters from the legislative and executive branches of government to periodically revise downward revenue projections for easily available state funds for the 2011-2012 biennium.

Their October report is due next week.

In May the Consensus Revenue Estimating Group lowered revenue projections from January estimates by $517 million.

The May report estimated $3.28 billion in revenues to the general fund and the budget reserve account for the 2011-2012 budget period.

Freudenthal's requirement that state department heads cut their budget requests by 5 to 10 percent resulted in $239 million pulled out of the state budget recommendations.

During a news conference Wednesday, the governor said he believes the May projections are $200 million to $400 million too high.

He said he will be conservative in any event as he finishes drafting the new two-year budget.

His budget get must be presented to the Legislature by Dec. 1.

If he's wrong and the economy roars back and natural gas prices jump, Freudenthal said he will call a news conference and say so.

"You can always spend money you didn't expect," he said.

He said a sign of the economic slowdown in minerals is the increase in the number of shut-in wells on state lands. Another is activity by the Oil and Gas Commission regarding the abandoned wells fund to be sure companies have bonds to cover the cost of reclamation.

Contact capital bureau reporter Joan Barron at 307-632-1244 or joan.barron@trib.com