NASHVILLE, Tenn. -- State officials have been told to expect to cut up to $380 million more in spending before the fiscal year ends in June.

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The State Funding Board on Tuesday heard revenue outlooks from University of Tennessee economist Bill Fox, the General Assembly's Fiscal Review Committee and the state Department of Revenue.

The experts projected a shortfall ranging from $271 million to $380 million for the current year. That's on top of the $180 million decline Gov. Phil Bredesen had projected in February.

Officials said cutbacks could be very noticeable.

"We have to make some substantial ones, and they’re pretty much going to be in every facet," said Rep. Craig Fitzhugh.

For the budget year beginning July 1, analysts predicted $420 million to $560 million less than Bredesen's budget proposed.

Analysts attributed the bleak numbers to the plummeting housing market, high oil prices and lower than expected sales tax revenue.

It is up to Bredesen to propose a revised budget, but lawmaker said everything from TennCare to higher education is on the table.

The proposed 2 percent raise for state employees could also be on the chopping block.

"I think we would certainly try to do the best we could to give some kind of cost of living in face of the economy that state employees as well as other citizens face out there," said Fitzhugh.

Bredesen’s proposed pre-K expansion and money promised to local school boards last year could also be cut, but the money for the school boards will be high priority, lawmakers said.

"I think this budget had about $86 million that was scheduled to be funded for the local systems this year, so that would certainly be No. 1," said Sen. Randy McNally.

As far as taxes go, some question whether or not to repeal the cuts to the grocery tax.

Lawmakers said it might also be difficult to give tax holidays like the one last weekend.

The board is supposed to decide Thursday which revenue estimate will be used.

Right now, Bredesen doesn't know when he'll announce his budget revisions. It will be up to lawmakers to pass his budget and its revisions.