It's going to be a tough two years.
Democratic Governor Granholm and Republican leaders in the House and Senate are bracing for another round of spending reductions and a more intense political environment. All three offices are up for re-election in 2006.
But the governor and new House Speaker Craig DeRoche of Novi are optimistic.
DeRoche will give a short speech during Wednesday's ceremonial kickoff of the 93rd Legislature. He will talk about the tough choices facing lawmakers in the new session.
Granholm says she's looking forward to a year of challenges and opportunities.
One of the first things to tackle is the state budget.