LINCOLN, Neb. (AP) — Nebraska lawmakers have kicked off a contentious debate over a proposed $8.9 billion, two-year budget package in the midst of a projected revenue shortfall.

The measure debated Tuesday would balance the budget using a combination of tactics. The list includes drawing money from state cash funds, cutting money to agencies including the University of Nebraska, and relying on an increase in federal Medicaid dollars.

The package would increase funding for K-12 public schools and ongoing efforts to reduce prison crowding.

The budget could see more cuts depending on the outcome of a new state revenue forecast slated for Wednesday.

Sen. John Stinner of Gering is the chairman of the Appropriations Committee. He says the budget-crafting effort was one of the most difficult ones that longtime legislative staff members have seen.