DENVER -- Issues that will hit close to home for residents will dominate the legislative session that opens on Wednesday.

Lawmakers have put a top priority on jump-starting the economy to ease government budget woes. They also want to agree on a plan to cope with the worst drought in recorded history.

Gov. Bill Owens and his fellow Republicans believe the best recipe for fixing the economy is adding value to an expected national recovery, spending what money they can find on transportation and education, rebuilding the tourist economy and reducing government mandates.

Democrats who want to return to grassroots support will focus on what they call "the forgotten middle class" -- ranchers facing water crises and small business owners coping with skyrocketing insurance costs.

"This is definitely the year of the consumer. The question is, on whose backs will all of this be balanced," Senate Minority Leader Joan Fitz-Gerald, D-Golden, said.

"None of this is going to be pretty. Republicans were elected by consumers, but they're going to be at odds with special interests this year."

For the first time in two years, the Legislature will be controlled by Republicans. There are 37 Republicans to 28 Democrats in the House, and 18 Republicans to 17 Democrats in the Senate.

Senate Majority Leader John Andrews, R-Centennial, said he would oppose any attempt to raise taxes. He also said it is a good time to tackle water issues as the state enters its fourth year of drought.

"It's imperative for Colorado while the public is focused on water that we take advantage of a moment of political will to get this done," Andrews said.

Dozens of bills are expected to be introduced on the issue, calling for expansion and repair of existing facilities and another attempt at a bonding program to provide funds for big projects, similar to one that failed during a special session last summer.

Health care will be another key issue, ranging from Medicaid to drug costs.

Fitz-Gerald would like to reduce the cost of prescription drugs even though a federal appeals court struck down a Maine program that provides prescription-drug discounts. The court ruled that it illegally expanded the Medicaid program.

The Maine program required drug manufacturers to provide prescriptions at Medicaid prices to residents who earned up to three times the federal poverty level. The pharmaceutical industry challenged it and won.

Sen. Bob Hagedorn, D-Aurora, said he has a plan to get around court objections by expanding the use of generic drugs, which cover 95 percent of the prescriptions issued.

Republicans say reducing the number of illnesses insurance companies are required to cover would do a better job of lowering costs.

Sen. Ken Gordon, D-Denver, said reducing health care coverage and removing marginal people from the Medicaid rolls would only shift costs, because people who get sick will still get care and someone has to pay.

Another key issue is the budget crisis. Lawmakers are expected to start off by cutting an additional $151 million from the budget to make it balance this fiscal year, bringing total cuts to about $850 million for the year.

At the end of the last legislative session, lawmakers gave Owens the authority to make the budget cuts. Fitz-Gerald has told Owens that lawmakers should make those decisions this year. Owens has agreed.

"We have such a short time to get the job done. Senate Democrats are serious about rolling up their sleeves and being part of the solution," she said.

Fitz-Gerald said the state should do all it can to avoid cutting government jobs to balance the budget.

"It's OK if you think we don't use government. I represent a district where people are independent in a lot of ways, but we use government services every day," she said.

Owens said he would rather scrap the current no fault auto insurance system and let people go straight to court instead of keeping the low $2,500 threshold that allows people to take their case to a judge.

"We're now getting the worst of both systems," Owens said.

Democrats said they are still studying the issue and have not taken a position.

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