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STATE HOUSE, BOSTON, January 18, 2006...Democratic legislative leaders gave Gov. Mitt Romney high grades on his State of the State address, while Democrats seeking to succeed the Republican governor were far more critical.

During his annual half hour address, Romney alternately called for tax cuts, record levels of local aid and school aid, new affordable housing, major new investments in job creation efforts, and said the state should not miss its opportunity to pass a law to ensure that all Massachusetts residents have access to health insurance.

Those running to become the next governor accused the Republican governor of exhibiting poor leadership, citing a housing crisis, young people leaving the state in record numbers, rising property taxes, and job losses.

“We can no longer wait for executive leadership from the Romney/Healey administration,” Democratic gubernatorial candidate Deval Patrick said in a statement released after he watched the governor’s address with residents in West Roxbury. “The Legislature must step up now and pass meaningful health care reform, restore aid to starving cities and towns, and invest in other economic stimulus measures so that we can get our people back to work and hopeful about the future.”

Attorney General Thomas Reilly, another Democratic candidate for governor, disagreed with Romney’s assessment of the state’s strength and claimed the governor lacked energy and enthusiasm in delivering his remarks.

“I see things differently than Governor Romney,” Reilly said outside the House chamber. “I see a state that has lost population in the last two censuses. I see a state that has lost thousands and thousands of jobs. I see a state where the third largest city in the state is on the verge of bankruptcy. I see a state through the eyes of regular people, of real people, who are struggling in this state. There is a distance between this governor and the people of this state. There’s a distance between this governor and the people in that chamber tonight.”

But the Democrats elected to work with the governor said he’d accurately portrayed a series of major accomplishments – new scholarship programs, tougher drunken driving laws, and property tax relief for seniors, for example - and indicated that even though Romney is not seeking re-election, they feel he is engaged in the public’s work and ready to help forge consensus on new public policies.

House Speaker Salvatore DiMasi and Senate President Robert Travaglini said Romney had hit the right notes.

“He still is the governor for the next year and we will be working with him,” said House Speaker Salvatore DiMasi. “After all, all of the accomplishments that he outlined tonight were done legislatively before he signed them and we’re hopeful that we’re going to accomplish much more in the future.”

Travaglini said Romney realizes that agreements on major pending policy matters surrounding job creation, welfare reform and health care may be important to Romney’s future, especially if he runs for president in 2008.

“The Speaker and I both thought that the governor’s speech tonight was well thought out, well put together and very focused,” Travaglini said. “The next several months are very critical for the citizens of the Commonwealth of Massachusetts and the decisions that the three of us make collectively will determine whether or not we maintain the momentum that we are experiencing here in Massachusetts and we maintain our attractiveness and our competitiveness.”

While cautioning about myriad spending pressures, neither Travaglini nor DiMasi outright rejected Romney’s revised plan to reduce the income tax from 5.3 percent to 5 percent over two years, instead of one. DiMasi said the state would spend excess tax receipts “wisely” and offered that January collections would be a telling indicator.

DiMasi said Romney’s plan to propose a $200 million reserve fund provides needed flexibility as lawmakers try to hash out details of an ambitious plan to extend health insurance access. “After we come to a conclusion on the final proposal, we will look at the revenue streams and sources that we need to pay for that health care,” DiMasi said.

Reilly said the next governor must be honest with the electorate before pushing an agenda.

“You can only do that when you’re focused on Massachusetts and the future of the people of Massachusetts and not your own personal future,” Reilly said. “That’s what’s missing here. He never stopped campaigning. He is a talented man. There is absolutely no question. He’s a very bright, talented man, who never focused on our needs and the needs of Massachusetts.”

House Minority Leader Bradley Jones (R-North Reading) criticized his colleagues, who in large numbers did not attend tonight’s address. Jones said he believes 14 senators attended and a “light number of House members.”

"If there’s criticism to be laid, the attorney general ought to talk to the Democratic leaders of his own party who didn’t even show up today,” Jones said. “All the Democrats are saying is local aid, local aid, local aid, and we’re delivering that.”

State Treasurer Timothy Cahill said he too is pleased the governor is proposing to spend more state aid on funding for cities and towns, but is concerned that the state, despite its rapidly growing reserve funds, will not have enough rainy day money to prepare for a economic downturn that emptied state coffers in 2001.

“I’m encouraged that he’s willing to compromise on the (income tax) rollback,” Cahill said, “but I’m still somewhat concerned that with the increase in revenue to cities and towns and the increase in health care, and then the tax cut, whether it all adds up in the end.”

Sen. Richard Moore (D-Uxbridge), the lead Senate conferee negotiating terms of the health insurance bill, said Romney’s pledge to set aside $200 million for health care was a “good start,” but called it a “major shift” in the governor’s plan to expand coverage.

Romney has said his plan will not cost additional taxpayer money, in part due to administrative savings and a reshuffling of services and existing pools of revenue. During his speech tonight, Romney said “uncertainty” over whether health care expansion could require new taxes could “stall our progress, or even end it.”

But Moore said lawmakers are committed to finding a solution. “We’re far more in agreement than in disagreement,” he said. “The disagreements between the branches aren’t ones that aren’t solvable.”

Rep. Michael Rush (D-West Roxbury) gave Romney high remarks on his speech, but said he looks forward to seeing the full details of the governor’s budget. “Everything sounded great, but of course everything needs to be funded,” Rush said. “As the line goes, show me the money.”

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