INDIANAPOLIS -- As the state's reserves dwindle toward zero, some lawmakers appear confused over the division of the state's surplus funds.

The state surplus is made up of four separate funds that were rolled into one general surplus several years ago, 6News' Norman Cox reported.

The Tuition Reserve Fund is the biggest at $425 million, the Rainy Day Fund is second at $380 million, the General Fund, which most people think of as the whole surplus, is actually only $144 million, and the Medicaid Reserve has $60 million.

Together, they total $1.009 billion dollars, and that's the entire surplus now being spent.

"They're all the same funds," said State Budget Director Chris Ruhl. "We projected to close the budget biennium $1 billion in reserve. Given the $1.8 billion reduction in our forecast, we plan on using every nickel of all of those reserves, no matter what fund they're comprised of."

Still, many people -- including lawmakers -- appeared to be confused about the handling of the surplus.

Last week, the Indiana State Teachers Association came up with a plan to use the Tuition Reserve Fund instead of the state surplus, when the two are actually the same thing.

Even knowledgeable lawmakers on the Ways and Means Committee indicated they thought the Tuition Reserve Fund could be tapped instead.

"We do have a Tuition Reserve Fund that many of us have worked on for years for specific times like this," said Rep. Sheila Klinker, D-Lafayette.

Gov. Mitch Daniels stressed in a recent news conference that once the reserves are spent, no matter what they're called, they're gone.

"The debate over the reserves is over," he said. "We are using them."