- Associated Press - Sunday, January 22, 2017

BOSTON (AP) - Republican Gov. Charlie Baker and his top aides are putting the finishing touches on his state budget proposal for the state’s next fiscal year.

Baker is scheduled to file the annual spending plan with the Democratic-controlled Legislature on Wednesday. It’s expected to be in the neighborhood of $40 billion.

State officials are projecting tax revenues to increase by a modest 3.9 percent in the 12 months starting July 1 but many analysts continue to urge fiscal caution and some Democratic lawmakers are calling for new taxes.

Among other initiatives, Baker is likely to propose several changes in the state’s Medicaid program, including fees on private employers that do not offer health insurance to their workers.

Once filed, the budget will be reviewed first by the House, and later the Senate.

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