Iowa Senators got down to work Thursday and approved a bill to cut the budget by $118 million.

deals with the shortfall in the state budget for the current fiscal year.

Two major items not seeing cuts include K-12 education and Medicaid.

Lawmakers say the shortfall came from a decline in state revenues.

State agencies are set to take the biggest cuts. Iowa's Department of Natural Resources would take $1.3 million, $1.2 million would come from the Department of Revenue, and the Department of Corrections would lose out on $5.5 million.

Higher education also takes some hits. The Department of education would lose more than $4.5 million. As for the state universities, Both Iowa State University and the University of Iowa would lose $8 million a piece, while the University of Northern Iowa would lose $2 million. $3 million would come from community colleges.

Senators also plan to move $25 million from various state funds. The fund giving up the most money is the Grow Iowa Values Fund at $12 million. The Iowa Cultural Trust Fund takes the next biggest hit at a little more than $6.1 million.

The bill now goes to the House, and if approved, to Governor Terry Branstad. It's set to take effect once signed by the Governor.