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Facing Possible $1 Billion Shortfall, Massachusetts Governor Sticks to No-New-Taxes Pledge

Forecasting his second year in the Corner Office, Gov. Charlie Baker stood by his vow to hold the line on taxes even as storm clouds gather for the state's finances, offering a series of proposed tweaks to state government -- and reminders of his nuts-and-bolts approach -- in his first State of the Commonwealth address last night.

By Matt Stout

Forecasting his second year in the Corner Office, Gov. Charlie Baker stood by his vow to hold the line on taxes even as storm clouds gather for the state's finances, offering a series of proposed tweaks to state government -- and reminders of his nuts-and-bolts approach -- in his first State of the Commonwealth address last night.

The Swampscott Republican, foregoing the soaring rhetoric that sometimes defines such speeches, said he'll push new changes to the controversial film tax credit, offer $75 million in investments at career and technical schools and renew his call for "bold" action on the state's opioid epidemic.

But he also gave a reminder of his well-worn campaign pledge of no new taxes or fees -- a promise the Democrat-led House has stood by but one that could be tested with predictions of a shortfall of up to $1 billion looming when Baker files his budget proposal next week.

"The people of this state live within their means, and we should, too," Baker told a House chamber packed with lawmakers, mayors and other elected officials.

Joking that some have called his administration "boring" -- "no fights, no yelling, no partisan scrums" -- Baker said he's taking up a battle he lost a year ago: Making a "modest adjustment" to the controversial film tax credit, which has strong backing from House Speaker Robert A. DeLeo (D-Winthrop).

Baker said he wants to return the credit to its original form before it was expanded in 2007, by capping credits for large productions and barring companies from cashing in unused credits, moves his aides say will help save $43 million.

"We respect the Legislature's desire to retain the credit. ... Message delivered," Baker said as he turned to DeLeo on the rostrum. "But we believe it would be more cost-effective to return to its original structure," he said, adding that the savings will go toward affordable housing.

Baker's most direct comments came in addressing the opioid epidemic, pushing for the "bold" changes he proposed in legislation, including capping first-time prescriptions and creating measures for a 72-hour involuntary commitment. On average, four people per day died from overdoses last year, Baker said, calling the data "terrifying."

"Prescribers in Massachusetts -- and across this country -- are far too casual about the addictive consequences of these medications," he said.

In the speech's immediate aftermath, DeLeo and Senate President Stanley C. Rosenberg gave Baker largely positive marks, with DeLeo saying only he wished he heard more on gun violence, transportation and more budget details. He also reserved judgment on the film tax credit proposal, other than restating his support of it because of the impact movie productions can have on small businesses in the state.

"There's such a ripple effect with the film tax credit," he said.

(c)2016 the Boston Herald

Caroline Cournoyer is GOVERNING's senior web editor.
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