Romney sets big goals on jobs, health

Marking the midpoint of his first term, Governor Mitt Romney declared in his State of the State speech last night that "Massachusetts is back" from the economic doldrums and ready to take huge strides to improve education, expand healthcare coverage, and create more jobs.

Romney also urged lawmakers to revamp welfare rules, build more housing, pay for English classes for immigrants, cut property taxes for seniors, and reduce auto insurance costs.

And he said he wants to give Bay State drivers a break on tolls by using more than $170 million he says can be gleaned immediately by merging the Turnpike Authority and the Highway Department.

Romney, often accused by Democrats of being disengaged from his job, delivered an address that appeared to be designed to demonstrate his enthusiasm for being governor and his willingness to work with Democrats. He said in December he plans to run for reelection, dampening speculation he is primarily focused on running for president in 2008.

"Two years ago, I said that if we exercised fiscal responsibility, we would one day be able to reach for our dreams and to fulfill the vision of our potential; I believe that time has come," the Republican governor said. "And having spoken with [Senate] President [Robert E.] Travaglini and [House] Speaker [Salvatore F.] DiMasi, I am confident that in large measure, we share a common vision."

Romney, who has spent much of the past two years portraying the Legislature as an obstacle to change, adopted a conciliatory tone when he reviewed his time in office last night.

"I asked you to help me reform government, to streamline and eliminate excess. I asked you to join with me to hold the line on taxes, to exercise fiscal responsibility. And you did," he said, prompting a round of applause in the House chamber.

Nevertheless, the probable Democratic challenger to Romney in two years, Attorney General Thomas F. Reilly, described the speech as "pretty much the same old, same old."

"The question isn't whether Massachusetts is back. Is he back? And if he's back and if he's committed and if he's determined to work with people and listen, then we can get some things done," Reilly said. "People of this state are very smart. They see through things, and they expect results."

The governor's pledge to file a jobs bill next month was new. Romney, who took office in January 2003, ran for the corner office on a pledge to create jobs. Since employment growth resumed last March, the state has added about 24,000 jobs, but Massachusetts still has 195,000 fewer jobs than it had at its peak in February 2001.

Providing few details, Romney said his "economic stimulus and jobs bill" will promote the construction of more housing in order to bring down costs; streamline permitting for business expansion; increase the state's investment in emerging technology and establish a sales and marketing team in a bid to attract more businesses to Massachusetts.

"We all like to talk about jobs," he said. "Let's do what it actually takes to create them."

DiMasi agreed that "job creation is a very important aspect of what we should do," but argued that Romney has not been able to fulfill his campaign promise.

The Legislature has shown enthusiasm for economic stimulus packages in recent years. But many economists are skeptical about their effectiveness.

"If the government does a good job with the schools and the roads and law enforcement, then that is the best way to attract citizens and businesses," said Daniel R. Feenberg, an economist with the Cambridge-based National Bureau of Economic Research, who said he was expressing his own views and not those of that organization. Feenberg acknowledged that Massachusetts could spur the construction of housing by relaxing development rules.

On education and healthcare, the governor repeated ideas he has put forth in recent weeks. To improve struggling schools, Romney wants to lengthen the school day, and pay teachers based on performance, instead of seniority.

To expand healthcare coverage and reduce costs, Romney wants to employ a system of carrots and sticks to persuade businesses that don't provide health insurance to their workers to do so. He also wants to change state regulations to allow insurers to offer bare-bones health plans to small businesses and individuals.

"Massachusetts can be the first state in the nation where every one of its citizens has healthcare coverage," Romney said.

For most of the year, the governor and Legislature jockey for control of the agenda on Beacon Hill. But on the night of the State of the State address, the governor has the stage to himself, complete with the ceremonial trappings of his office and a sizable television audience. As is customary, Romney walked a red carpet from his office to the House chamber for last night's speech, and his arrival was heralded by officers wearing top hats and carrying maces.

Romney ended up getting much of what he asked for in last year's speech: The Legislature relaunched the state's stalled school building program, made it easier for cities and towns to cut costs on public construction projects, and revamped zoning laws to encourage more housing. It also approved Romney's scholarship plan for students with high MCAS scores, and raised K-12 spending by more than $100 million.

But lawmakers rejected some of the governor's other initiatives, opposing his proposed merger of the Turnpike Authority and the Highway Department, and declining to support full-day kindergarten for struggling school districts, mandatory parent-preparation courses, or more power for principals to hire and fire teachers. With the exception of full-day kindergarten, all of those proposals made another appearance in last night's speech.

This year, Travaglini and DiMasi have highlighted healthcare and education as top priorities. But unlike many legislators, Romney doesn't believe that a huge infusion of money is the best way to help under-performing schools, and he insists he can achieve his healthcare goals without new spending or requiring employers to provide coverage.

Finding common ground on those issues may be difficult, but other issues may be less complex. Both Travaglini and DiMasi have expressed support for giving some form of property tax relief to seniors, for example.

Expanding adult education programs for immigrants also may be appealing to lawmakers. Statewide, according to the Department of Education, 18,000 people are waiting to get into English classes. Cheng Imm Tan, director of the city's Office of New Bostonians, said an English class costs an average of $2,000 per student for a year, so clearing the waiting list would cost at least $36 million.

The audience interrupted Romney's 25-minute address with applause nearly two-dozen times, but the longest and loudest ovation was for Andrea Couture of Sterling and Peter Damon of Brockton, two National Guard members who served in Iraq. Damon lost parts of both arms.

Raphael Lewis and Yvonne Abraham of the Globe staff and Globe correspondent Janette Neuwahl contributed to this report.