HONOLULU -- The state Legislature opens its 60-day session on Wednesday with lawmakers facing a $1.2-billion budget shortfall that is expected to get worse.

House Speaker Calvin Say said he fears the next revenue forecast in March will hike the predicted shortfall an additional $75 million.

With the huge budget deficit , lawmakers said spending will be bare and taxes and fees will be hiked.

"We are not going to get out of the deficit by just reducing expenses. It is too much already so I think we are going to have to look at some sort of revenue enhancement," Sen. Russell Kokubun said.

The notion of higher taxes did not sit will with downtown workers on their lunch break.

"I think the Hawaii people are taxed enough already. They have got to maybe cut back someplace else, but taxing the Hawaii people is pau already," building contractor Robert Bladet said. "I think they should all cut spending like we all have to."

"There is a lot of waste in government. Everyone knows that," Kaneohe resident Gwenette Higa said.

A clear sign there is no money to be given out this legislative session is no one walking the halls bearing gifts of candy and flowers, hoping to curry favor with the lawmakers just before the start of the session.

Say has drawn a chart in his office to show lobbyists and others the budget shortfall.

"There is no money at this point in time," Say said.

Says said tax raising possibilities include hiking liquor taxes and raising fees for fireworks.

He also wants to repeal the tax exemptions for hospitals and other nonprofits.

"We are looking at going after those special interest groups who have been exempt from the general excise tax," Say said.

The Senate will also consider a bill to hike the excise tax an additional 1 percent, but exempt food and medicine purchases.

Lawmakers Face Other Issues:

Some lawmakers this session will propose legalizing gambling in Hawaii to collect more revenue, but that is unlikely to fly because of too much opposition from the public. Even if gambling were approved, opponents said it would not be an immediate money fix for the huge looming state budget hole.

Kokubun, a gambling opponent, said it takes a long time to set up casino operations.

Another issue in the limelight this session will be the civil unions bill to give gay couples the same benefits as married couples. A civil unions bill is expected to win Senate approval very quickly. In the first week after the session opens Wednesday.

Kokubun said although he expects the bill will to get majority Senate support, he is not sure it will get the veto proof majority of 17 votes.

Say said the civil unions bill's fate in the House, where it will go after Senate approval will depend on many factors, including if it has veto-proof Senate support. It will be difficult to get house members to advance the civil unions bill in the Legislature if it cannot withstand a veto effort by Lingle, he said.

State lawmakers said reducing the number of school furlough Fridays will also be an important challenge. However, they said there is probably not enough time to end the teacher furloughs this school year.

The earliest relief could come for parents would be in the next fiscal year starting July 1, Say said. The effort would be to do away with all school furloughs in the next school year, he said.