SILVERTON, Ore. (AP) - Gov. Ted Kulongoski said he will propose a major transportation package in January that could create thousands of family-wage construction jobs, but left it up in the air how the state would pay for it.

The aim, the Democratic governor said, is to give more people the chance to earn a living in the midst of the economic downturn.

"This is the time when you start investing in things that put people to work," Kulongoski said Monday at an economic development forum.

Kulongoski said the transportation package he will propose will be larger in scale than one approved by the 2003 Legislature, which created up to 5,000 construction jobs and raised new vehicle fees to pay the $1 billion cost.

A state task force is studying ways to pay for such an expansion in the coming two years, he said, adding that a higher gas tax should at least be considered as one of the funding sources.

"For me, it is part of the mix. I've said nothing is off the table," Kulongoski said about raising the tax on fuel to pay for modernizing the state's highways and bridges.

In his remarks to business and government officials who attended Monday's forum, Kulongoski said the state must look beyond the current financial crisis.

"If we want to move Oregon forward in good times, we have to stay optimistic and make the right choices in bad times," Kulongoski said.

For that reason, he said he his 2009-2011 budget proposal to the Legislature will focus on investing in the state's economic future.

He said his next budget will propose to maintain progress in education because of its role in work force training and skills for Oregon's economy. Extending health care to children younger than 19 and a continuing focus on renewable energy also will be key, he said.

(Copyright 2008 by The Associated Press. All Rights Reserved.)