Healey promised a budget that’s “balanced, responsible and forward-looking.” She argued that the state’s economy and fiscal health are “strong,” even as she acknowledged the uncertainty facing budget writers: “We need to be smart with how we spend our money,” she said. “Your money.” Left unmentioned: the recent cuts her administration had to make to the current budget, after revenue came in below benchmark for six months straight; the nearly $1 billion Healey’s team anticipates it’ll take to cover the state’s overwhelmed emergency shelter system into next year and the $2.5 billion the previous administration misspent in pandemic-era unemployment funds — which Healey could be on the hook for now. Despite the fiscal obstacles, Healey’s pricey priorities are likely to win some support in the Senate because she’s hitting on two of President Karen Spilka’s top issues: early education and child care, and housing. “We need to keep investing,” Spilka told reporters after the speech. “The best way to increase our state revenue is by creating jobs and helping our businesses not only thrive, but grow as well.” It’s less clear how much buy-in Healey will have in the House, where Speaker Ron Mariano said representatives will “look into the details” once Healey files her budget next week. Tax hikes don’t appear to be on the table, at least not right now, on the heels of a billion-dollar tax-relief package the Big Three have all touted as a way to make the state more affordable and competitive. “We've chosen a course of action … The competitiveness that the tax cut gets at is an important factor,” Mariano said. Tax increases are “not on the horizon.” Lawmakers have other levers to pull to help fund Healey’s plans, including the $1.3 billion they expect the state will raise through the so-called millionaire’s tax, which they can use to help cover transportation and education spending. But Republicans are calling for caution — even though they’re back to having little to no power over the state’s purse strings. “The budget was just reduced by a billion dollars. So you have to try to reconcile everything that was proposed tonight with a billion dollar budget reduction,” Senate Minority Leader Bruce Tarr told reporters. GOOD THURSDAY MORNING, MASSACHUSETTS . One unexpected element of the top Democrat’s speech: a thinly veiled jab at her Republican predecessor. Healey has in the past offered high praise for former Gov. Charlie Baker. But, after spending a year trying to get the MBTA back on track, she seemed to swipe at his administration’s oversight of the beleaguered transit system. “Now when we took office, the T was badly underfunded, very poorly managed and woefully understaffed,” she said. “It's no surprise the trains weren’t running on time.” TODAY — Healey, Driscoll, Housing Secretary Ed Augustus and Boston Mayor Michelle Wu testify on the administration’s housing bond bill at 11 a.m. at the State House. Tips? Scoops? Birthdays? Email us: lkashinsky@politico.com , kgarrity@politico.com and mmcarthy@politico.com.
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