Baker pitches hydropower; education in state of the state
Antonio Caban/SHNS
Gov. Baker delivers the State of the Commonwealth address Thursday night.
Gov. Charlie Baker, in an unapologetic defense of his administration's focus on the nitty-gritty of governing, called Thursday night for a significant new investment in vocational schools while also pledging fiscal restraint.
In his first State of the Commonwealth address, Baker used his moment in the spotlight to both urge action on his key legislative priorities in the year to come, but also to reinforce the image of him and his administration as a team focused on making government work for people.
The speech balanced the light - jokes about snow and his penchant for selfies - with the more serious business of "breaking the back of this beast" of opioid addiction and confronting the region's energy needs.
"As the administration ends its first year in office, some have lamented how boring we are. I'll admit, that makes me smile," Baker said. He highlighted accomplishments such as a Health Connector website that works and shorter wait-times at the Registry of Motor Vehicles.
Addressing a House chamber packed with both state and federal lawmakers, including Sens. Elizabeth Warren and Edward Markey, judges and special guests, Baker said the budget he intends to file next week will include no new taxes or fees and would set aside some revenues for the rainy-day fund, which outside credit rating agencies have urged the state to beef up after rounds of withdrawals.
Baker promised without specifics that his budget will also include increases in "local and education" aid, as well as "generous support" for public transportation.
The parents of Corporal John Dawson and Gunnery Sgt. Tom Sullivan, who both died in service last year, attended the speech as special guests. The grandchildren of the late Gov. Paul Cellucci, under whom Baker served as a cabinet official, led the gathering in the Pledge of Allegiance.
Hinting at an economic development bill that he will discuss, according to aides, in greater detail Friday when he visits the Federal Reserve Bank of Boston, Baker called for a $75 million investment in vocational and technical schools.
"Our proposal will make it possible for these schools to build more partnerships with local businesses and higher education institutions, and serve more students," he said. "These schools are a pathway to bright future. The skills they teach are widely in demand, and many of them are already well plugged into the job creators in their communities."
Baker also said he intends to file legislation pertaining to the state's film tax credit, but instead of trying to eliminate the credit backed strongly by House Speaker Robert DeLeo and others, the governor said he will propose "a modest adjustment" that will produce savings that can be reinvested in affordable housing and an "improved tax climate" for Bay State businesses.
"We respect the Legislature's desire to retain the credit. Mr. Speaker, message delivered. But we believe it would be more cost effective to return to its original structure," Baker said.
After the speech, DeLeo appeared wary of the governor's plans to seek an adjustment to the film tax credit.
"As I do with everything the governor sends our way, I will of course take a look at it. But I just would like to say, that when you're taking a look at the film tax credit there's a little bit more than just the film being done," DeLeo said. He said, "There are a lot of people, quite frankly, who reap the benefits of the film tax credit. Anywhere from the people who prepare dinners and lunches, the hotels, the people with the flowers, the rental furniture place. There's such a ripple effect with the film tax credit."
An outside section of Baker's budget will seek to reinstate a per-project cap on tax credits and no longer allow the credits to be refundable. With the $43 million in estimated savings, Baker will propose to increase by $5 million the annual cap on low-income housing incentives to $25 million for five years to create 1,500 new units of affordable housing. He also wants to offer a "phased-in single sales factor tax system" for companies with a physical presence in Massachusetts that do business in multiple states to encourage them to expand here.
At several points in the governor's 31-minute speech, Baker, a Republican, thanked the overwhelmingly Democratic Legislature for not tuning him out and being willing to work collaboratively to accomplish things like the reform of the MBTA management structure.
The governor has ridden that spirit of cooperation and focus on management to sky-high approval ratings, and his relationship with the Legislature was on full display Thursday night as lawmakers gave him repeated standing ovations - the one exception being his targeting of the film tax credit.
"Thank you for putting partisanship aside and for engaging with us in good faith and good humor as we work to solve some very challenging problems," Baker said.
Not everyone enjoyed the speech.
The Massachusetts Democratic Party criticized the governor for what they saw as a lack of "vision" in his remarks, something former Democratic Gov. Deval Patrick excelled at with lofty rhetoric.
Reflecting back to how the early weeks and months of his governorship were hijacked by weather, the governor mused about the enduring lesson of his first year in office: "Stuff just happens," Baker said.
While Baker worked well over his first 12 months in office with both DeLeo and Senate President Stanley Rosenberg, the governor began to exhibit some impatience as he urged swift action on legislation to address energy, opioid abuse and charter schools.
Looking ahead to the Senate's efforts to craft a charter school expansion bill amidst uncertain support in the body, Sen. Benjamin Downing, who said he has voted to lift the cap on charter school seats in the past, said Baker did not likely sway the balance of votes in the Senate.
"I think the governor made a strong case for why the cap needs to be lifted. I'm not sure if he said anything that changes votes in the Senate just yet. But hopefully we can get there," he said.
DeLeo echoed some of the governor's rhetoric on charter schools, saying, "I think you have to give every child, no matter where they're from, the opportunity for a better education."
The governor used tough language to challenge doctors as he acknowledged that the Legislature is "close" to agreeing to substance abuse prevention legislation. The conference committee held its first meeting Wednesday.
"Prescribers in Massachusetts, and across this county, are far too casual about the addictive consequences of these medications," Baker said. "Parents, teachers and coaches don't know enough about opioids to protect their kids. And kids are mostly completely in the dark about what's at stake when someone says, 'Try this,'"
Stating that the region stands to lose enough power over the next few years - 10,000 megawatts - to supply Maine, Vermont, New Hampshire and Rhode Island combined, Baker said governors across New England are waiting for Massachusetts to act to "significantly increase the supply of clean and affordable hydropower."
The Environmental League of Massachusetts, even before the governor spoke a word, said it supports Baker's push for more renewable energy, including hydropower, but not if it means flooding the market with natural gas or comes at the expense of solar and off-shore wind. Many environmental and solar groups urged lawmakers to lift the cap, while Dan Dolan, president of the New England Power Generators Association, said Baker was "wrong to center this state's long-term energy future - potentially our most important economic policy decision - on purchasing power from Hydro-Quebec."
Baker said the state should support the growing solar industry, but not if costs two or three times as much as other renewable sources. He also said he would embrace wind options if new technology can generate a competitive price for energy.
"I urge the Legislature to move on this now," Baker said.
House Majority Leader Ronald Mariano, a Quincy Democrat, gave Baker credit for hitting upon the issues on people's mind and taking the T "head on," and as a proponent of the film tax credit he said he would reserve judgment until he saw the specific proposal.
"All in all I think he hit upon some great accomplishments in his first year. Obviously (GE relocating to Boston) is relatively big accomplishment in the first-year. He's got a lot that he can hang his hat on," Mariano said.
Overall, Rosenberg said, "I'm anxious to also continue the conversation with the governor and the speaker on what we can do for working families to continue to help improve their situation."
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