State lawmakers are in Lincoln for a special session to address a projected $334 million budget shortfall.

The special session begins Wednesday afternoon.

Gov. Dave Heineman has proposed across-the-board cuts to balance Nebraska's two-year budget. He also has proposed canceling a planned increase in state aid for K-12 schools in 2010-2011, as well as other cost-saving measures.

The Legislature's Appropriations Committee met on Tuesday to discuss his proposal and other ideas.

State officials have estimated the two-year budget approved last spring will be $334 million in the red because tax revenue has been lower than expected as a result of the recession.