DENVER (AP) -- Republican House Speaker Frank McNulty says his party will work on reducing regulations on businesses and emphasized they will not budge on eliminating a property tax break for seniors like Democratic Gov. John Hickenlooper wants.

Hickenlooper says the state can't afford the whole tax break.

McNulty said Wednesday in his opening day speech that government doesn't create jobs and regulations on businesses must be eased. He acknowledged the session will be difficult but said he believes both parties can collaborate. But remarks from party leader only highlighted divisions.

McNulty called for lawmakers to press for scaling back growing Medicaid spending. Democratic House Leader Mark Ferrandino said in his speech that's not possible. He says Democrats will push for tax credits to invest in business startups and give universities money for technology research.