MONTPELIER — By now it is probably no surprise to most Vermonters that the upcoming legislative session will likely be dominated by money. Or more accurately lack of it.

Money for roads, money for schools, money for programs that serve the disabled or elderly and money simply to run the state government.

Yet, despite several rounds of cuts and an expected shortfall in the fiscal year 2010 budget that may be close to $200 million, there will be more to this year's lawmaking session than simply writing budgets, reducing spending and increasing taxes.

And Senate President Pro Tem Peter Shumlin said last week he is optimistic about what will be done during the session — in part because of the fiscal and economic crisis facing the state and the country.

"I don't think this is going to be a doom and gloom session. I think there is going to be an opportunity to solve problems that have plagued Vermont for a long time," the Windham County Democrat said.

From economic growth to telecommunications infrastructure to health care changes — with expected help from the federal government — the state can make progress, Shumlin said.

"With Obama sharing our priorities for change we have a real opportunity to finally provide universal health care, have high-speed Internet and cell service across Vermont and make huge improvement in renewable energy," he said. "At the same time that everyone is struggling as Vermonters we have an opportunity to make government good again. I think there is huge potential here."

Gov. James Douglas said Wednesday that lawmakers should make economic recovery and the budget — both adjustments to the current year spending plan and the upcoming one — their priorities.

He would also like to see legislators move forward on a package of public safety initiatives drafted during the off session that deal primarily with sexual offenses, the governor said.

But those can encompass a wide range of parts of state government and bills, from an economic growth proposal to reconsidering how the state government spends its money.

Among the ideas Douglas will ask legislators to consider — some of which have been rejected in the past — are changes in permitting and tax incentives for some technology businesses and for those who renovate and live in downtown areas.

The federal government can have a greater impact on the economy — for one thing it is more able to borrow money for such spending — but the state can do something as well, Douglas said.

"States are competitors to some extent," he said. "We have to be competitive."

Vermont may also benefit if the federal government moves forward on a potential to use several states as laboratories for health care reform experiments.

Vermont is uniquely positioned to be one of those, and not just because of the Catamount Health insurance program, said Sen. Susan Bartlett, D-Lamoille.

What few realize is how far Vermont has moved toward using information technology to improve and make efficient health-care delivery, Bartlett said.

"Vermont is way ahead of the curve on that and Washington is very interested in that," she said.

Property taxes and school spending may also be an issue again this year, with money as tight for taxpayers as it is, added Bartlett, chairman of the Senate Appropriations Committee.

Given rising property values and the common level of appraisal, even towns that hold their own school spending under control are "getting hammered" with property tax increases, Bartlett said.

"Under the pressure of money being so tight I think you might see some interesting coalitions," she said.

Still the budget and state revenue will likely dominate the work of the lawmakers.

"I think most people in the state and therefore most legislators, don't know how serious the financial situation is," she said.

How long they will be at that work remains to be seen.

Given that it will be important for lawmakers to keep the session short to save money, Shumlin said.

One idea, that of lawmakers leaving Montpelier during some weeks of the session to give time for budget writers to do their work with the federal stimulus package will likely not happens, he said. But he and leaders in the House are committed to keeping the legislative session — budgeted for 18 weeks — to a maximum of 16 weeks, Shumlin said.

"Everybody is making sacrifices and it is important that the Legislature do the same," he said.

Beyond the broad issues of the economy and the state budget there will, as always, be work on a variety of problems or initiatives as well. Here are a few of them:



Health care

With severe budget problems facing the state, any major health-care reform efforts are off the table this year, unless President-elect Barack Obama's new administration comes through with federal assistance.

Legislative fights may center on the future of Catamount Health, the insurance program launched in 2007 that subsidies health care for Vermonters without coverage. In an era where all possible cuts are on the table, Catamount could be seen as low-hanging fruit.

Advocates in the field will fight to retain the program — and argue for lowering the monthly premiums to make it more accessible — while others may push to scrap the program or increase the costs to those using the program.



Prisons

A new commissioner of the Vermont Department of Corrections comes in just as the state is making dramatic changes in how we punish and incarcerate people.

Lawmakers are expected to continue pushing for reforms in how the state releases and monitors offenders released from prison. They will also be closely watching the prison reorganization, which has offenders and staff shuffled around the state in an effort to save money.



Gay marriage

Eight years after Vermont paved the way for a new era of rights for gays and lesbians, some lawmakers believe it is time to take another step by legalizing marriage for same-sex couples.

There is strong evidence that this debate will not be as decisive as the one over civil unions, including that a commission created by the Vermont Legislature held hearings and gathered testimony on the topic in 2007 and 2008.

Sen. John Campbell, D-Windsor, has promised that the Vermont Senate will pass a gay marriage bill before town meeting in February. Gov. James Douglas believes that civil unions brought full equality, although he has not indicated if he would veto a gay marriage bill.



Doctor-industry transparency

Lawmakers and advocates will push this year for greater transparency between doctors and health professionals in Vermont and the medical industry, including the companies that make the medications doctors prescribe.

The Vermont Attorney General's office issues a report annually that details how much money the medical industry gave in gifts and donations to doctors — but that list contains loopholes that allow for under-reporting and are difficult to use.

Lawmakers say they want to strip the "trade secrets" provision from the state law and set up an online database for health care consumers to determine if their doctors have relationships that are troubling or if their hands are clean.

Expect the pharmaceutical industry to fight this change hard.