Tax collections are running close to estimates halfway through Massachusetts fiscal year but the $36.5 billion state budget is out of balance by more than $500 million, according to Governor  Charlie Baker, ensuring that efforts to fix that problem and draft a balanced budget for the next fiscal year will consume much of the energy of Beacon Hill leaders over the first half of 2015.

The situation would appear to give an advantage to Baker since there’s been no talk of challenging his opposition to new or higher taxes, giving the governor an opportunity to cut into some areas of state spending that he feels are not efficient and to propose other savings-minded reforms.

Baker is gearing up to roll out his plan this week, which culminates with the annual meeting of the Massachusetts Municipal Association, traditionally a place for governors to highlight their support for local aid and other issues important to mayors, city councils and other town officials.

Maura Healey of Charlestown and Deb Goldberg of Newton settle into their four-year terms as attorney general and treasurer, respectively, after they are sworn in on Wednesday. Secretary of State William Galvin and Auditor Suzanne Bump were re-elected and will also commence new terms this week. In contrast with his fellow constitutional officers, Galvin’s ceremony will be private, his office said. They are all Democrats.

 

For Susan Kaplan’s conversation with Matt Murphy about the week ahead on Beacon Hill, click the audio player above.