POLITICO Massachusetts Playbook: The state of the commonwealth is …

BY KELLY GARRITY AND MIA MCCARTHY With help from Lisa Kashinsky DOLLARS AND SENSE — Gov. Maura Healey has big spending plans for the next fiscal year. Wednesday night, in her State of the Commonwealth address, she started trying to convince Democratic legislative leaders to make them reality amid fiscal headwinds, ballooning emergency shelter costs and with the state still possibly out $2.5 billion to the federal government. Aside from her $4 billion housing bond bill — which the governor and Lt. Gov. Kim Driscoll will testify in support of at a House hearing Friday — Healey is eyeing a fiscal year 2025 budget that includes the nearly $590 million for early education and child care programs she announced earlier this week, plus $10 million for mental health services to help the “most vulnerable young people get the care they need.” She also floated some programs and fixes without a price tag: doubling the MBTA’s operating budget and funding a system-wide reduced-fare option for low-income riders, overhauling literacy curriculum in schools across the state and making multi-year investments in climate tech. Gov. Maura Healey called in her first State of the Commonwealth speech to increase spending on transportation, education and more. | AP 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.   JOIN 1/31 FOR A TALK ON THE RACE TO SOLVE ALZHEIMER’S: Breakthrough drugs and treatments are giving new hope for slowing neurodegenerative diseases like Alzheimer’s disease and ALS. But if that progress slows, the societal and economic cost to the U.S. could be high. Join POLITICO, alongside lawmakers, official and experts, on Jan. 31 to discuss a path forward for better collaboration among health systems, industry and government. REGISTER HERE .     DATELINE BEACON HILL BIPARTISAN AFFAIR — Among the big names on hand for Gov. Maura Healey 's big speech: Former Gov. Mike Dukakis , a Democrat, and former Acting Gov. Jane Swift , a Republican. Also spotted: Former House Speaker Bob DeLeo and past Senate President Stan Rosenberg (h/t GBH's Katie Lannan ) . AND YET — “MassGOP paints bleak picture of Massachusetts in rebuttal to Maura Healey address,” by Chris Van Buskirk, Boston Herald: “Massachusetts Republicans painted a bleak picture Wednesday night of a state spending billions on shelters, tax revenues in decline, residents fleeing for other parts of the country, and a lackluster education system for students. Sen. Peter Durant, a Spencer Republican, offered the stark and dark portrait of Massachusetts in response to Gov. Maura Healey’s State of the Commonwealth address, which cast the state as having a ‘strong’ economy and made clear some of the governor’s spending goals in the fiscal year 2025 budget.” HANDLING HOUSING — Both Healey and Boston Mayor Michelle Wu highlighted housing as a crucial issue in their respective table-setting remarks this year (Wu last week at the State of the City and Healey last night at the State of the Commonwealth). The Boston Globe’s Andrew Brinker breaks down some of the bold (and sometimes controversial) policies they’re pushing, and where they stand. — "MBTA receives $200.8M from the millionaire’s tax to address infrastructure, safety, hiring," by Lance Reynolds, Boston Herald: "A day after commuters couldn’t get to downtown Boston using the system’s three most popular lines due to an onslaught of issues, MassDOT’s Board of Directors approved transferring $200.8 million to the MBTA – $180.8 million for physical infrastructure improvements and the remaining $20 million for workforce and safety initiatives. The pool of money is the first allocation the MBTA has received from the Millionaire’s Tax, or what officials refer to as the Fair Share Amendment." FROM THE HUB — “Boston Mayor Wu punts rejected anti-terror grant back to City Council,” by Gayla Cawley, Boston Herald: “ Boston Mayor Michelle Wu has refiled a $13.3 million counter-terrorism grant ahead of next week’s City Council meeting, giving the body another crack at considering the federal funding its previous iteration voted to block last month.” — “ For Boston’s Mayor Wu, criticism from perhaps a surprising place: the left, ” by Danny McDonald, The Boston Globe DAY IN COURT — “SJC pauses state brothel ring cases; alleged buyers have until Mon. to file motions for closed hearings,” by Travis Andersen and Sean Cotter, The Boston Globe: “A single justice of the state Supreme Judicial Court on Wednesday postponed the legal proceedings against men suspected of buying sex from a high-end prostitution ring and gave them until Monday to contest a recent decision that magistrate hearings in their cases will be public. The Globe reported last week that 28 people accused of buying sex from the brothel ring that allegedly operated in Cambridge, Watertown, and the Washington, D.C. suburbs were slated to appear before a judge magistrate on Jan. 18, 19 and 22 to determine whether there is enough evidence for prosecutors to charge them criminally.”   YOUR GUIDE TO EMPIRE STATE POLITICS : From the newsroom that doesn’t sleep, POLITICO's New York Playbook is the ultimate guide for power players navigating the intricate landscape of Empire State politics. Stay ahead of the curve with the latest and most important stories from Albany, New York City and around the state, with in-depth, original reporting to stay ahead of policy trends and political developments. Subscribe now to keep up with the daily hustle and bustle of NY politics.      TRUMPACHUSETTS BALLOT BATTLES — Attorneys for Donald Trump asked the Massachusetts Ballot Law Commission to dismiss challenges to the former president’s eligibility to appear on the state's GOP primary ballot in a motion filed on Wednesday. Trump's team argued that Congress, rather than the state commission, “is the proper body to resolve questions concerning a presidential candidate’s eligibility.” Free Speech for People and influential labor attorney Shannon Liss-Riordan filed the initial challenges arguing that Trump is ineligible to appear on the ballot under the 14th Amendment. Pre-hearing conferences are scheduled for today. MEANWHILE, IN MAINE — "Maine court puts decision barring Trump from the state's primary ballot on hold," by NPR. THE LOWELL CONNECTOR — “Lowell legislators testify in support of free and fair elections in Cambodia,” by Peter Currier, The Lowell Sun: “Legislators from Lowell testified before the Joint Committee on Veterans and Federal Affairs Tuesday in support of resolutions filed in the state Legislature that would condemn ongoing political oppression and encourage free and fair elections in Cambodia.” THE LOCAL ANGLE — "Dozens of Massachusetts districts have faced attempts to remove books from schools," by Christopher Huffaker, The Boston Globe: "At least 10 districts removed or placed restrictions on at least 17 books in their curriculums, classrooms, and school libraries," — “Pembroke schools reject effort that would ban Pride flags,” by Diane Adame, GBH: “Following a contentious three-hour meeting on Tuesday, the Pembroke School Committee unanimously rejected a proposal that would prohibit teachers from displaying gay Pride flags and symbols of political activism in classrooms.” — “Cape base cleanup: Why an environmentalist flagged 'hidden danger' in EPA report,” by Walker Armstrong, Cape Cod Times: “The federal agency recently completed a Superfund site review of Joint Base Cape Cod, a five-year overview of the base assessing cleanup sites ranging from PFAS groundwater plumes to areas contaminated by munitions.” MEANWHILE IN NEW HAMPSHIRE TRAIL MARKERS — Trump and former South Carolina Gov. Nikki Haley are escalating their attacks on each other . Meanwhile, Florida Gov. Ron DeSantis is defending his decision to keep decamping to South Carolina in the days leading up to the New Hampshire primary. POLL — "Trump holding on to first place, but Haley continues to cut into his lead, tracking poll shows," NBC10 Boston/The Boston Globe/Suffolk University. Here's where the candidates (who are in the state) are today: HALEY — holds meet and greets at 9 a.m. at the Alpine Grove Event Center in Hollis and at 12:30 p.m. at Robie's Country Store in Hooksett with Gov. Chris Sununu and participates in a CNN town hall at 9 p.m. DEAN PHILLIPS — has a discussion on AI with Andrew Yang at UNH in Manchester at 12:30 p.m. and rallies with Yang at the Hanover Inn at 5 p.m. MARIANNE WILLIAMSON — is at the Keene Public Library at noon. HEARD ‘ROUND THE BUBBLAH TRANSITIONS — Lauren Scribi has joined Benchmark Strategies as vice president of public affairs. HAPPY BIRTHDAY — to former Sen. Paul Kirk and David Jacobs, publisher of the Boston Guardian. Want to make an impact? POLITICO Massachusetts has a variety of solutions available for partners looking to reach and activate the most influential people in the Bay State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness among this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com .   Follow us on Twitter Lisa Kashinsky @lisakashinsky Kelly Garrity @KellyGarrity3   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our politics and policy newsletters FOLLOW US

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