More State Budget Cuts Loom This Year

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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.