Last week a new budget forecast showed a possible $2.4 billion shortfall over the next two years, sending state lawmakers scrambling to see what can be cut and to make a plan that would cut as few of the services you may use, as possible.

“The thing that we want to protect and hold to the longest is to try and protect K-12. That’s a big priority for everyone,” said House Speaker Todd Huston.

But, that may be difficult to accomplish, said Mike Hicks, professor of Economics at Ball State University, pointing out that K-12 education makes up nearly half of Indiana’s state budgets.

“There are only two or three areas that we spend big money in: Medicaid and K-12 and higher education,” said Hicks on WISH TV’s All INdiana Politics.

Medicaid makes up about 22 percent of the state budget, with higher ed at nine percent.

Hicks blames the Trump administration’s tariffs for the shortfall.

But, former state senator Jim Merritt told WISH he believes his former colleagues should hold off on making cuts.

“We don’t know what tariffs are going to be permanent. There could be zero baseline tariffs with Mexico and Canada by ten days from now,” he said.

He suggests close monitoring of the budget and revenue forecasts and a possible special budget session next year, if it is needed.