State Government Career
In the late 1980s, Baker was hired as codirector of the newly founded Pioneer Institute, a Boston-based libertarian think tank. Lovett C. Peters, the institute's founder, later recommended him to William Weld, the incoming Republican Governor of Massachusetts. Weld took office in January 1991 and hired him as Undersecretary of Health and Human Services.
In cutting back state programs and social services, Baker caused controversy from early on. However, some government officials called him an "innovator" and "one of the big stars among the secretariats and the agencies". Baker was promoted to Secretary of Health and Human Services in November 1992, and was later made Secretary of Administration and Finance, a position he continued to hold after Weld resigned in 1997 and Paul Cellucci took over as acting governor. In mid-1998, Cellucci offered him the lieutenant governor spot on the ticket, but Baker declined.
As Secretary of Administration and Finance, Baker was a main architect of the Big Dig financing plan. In 1997 the federal government was planning to cut funding for the Big Dig by $300 million per year. The state set up a trust and sold Grant Anticipation Notes (GANs) to investors. The notes were secured by promising future federal highway funds. As federal highway dollars are awarded to Massachusetts, the money is used to pay off the GANs.
According to a 2007 blue-ribbon panel, the cost overruns of the Big Dig, combined with Baker's plan for financing them, ultimately left the state transportation system underfunded by $1 billion a year. Baker defended his plan as responsible, effective, and based on previous government officials' good-faith assurances that the Big Dig would be built on time and on budget. However, as he was developing the plan, Baker had also had to take into account that Governor Cellucci was dead-set against any new taxes or fees. Former State Transportation Secretary James J. Kerasiotes, the public face of the Big Dig, praised Baker's work on the financing and said, “We were caught in a confluence of events," adding that “Charlie had a job to do, and he did his job and he did it well".
Read more about this topic: Charles D. Baker, Jr.
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