Republicans will take control of the governor's office after eight years of Democratic control. Coakley has said she will not run for office again.
BOSTON — Republican Charlie Baker narrowly defeated Democrat Martha Coakley on Tuesday to retake the governor's office for the Republican Party after eight years of Democratic control on Beacon Hill.
Baker and his running mate Karyn Polito ran on a platform of growing the economy, improving schools and bringing, as Baker said this week, "the kind of fiscal discipline and balance and bipartisanship to Beacon Hill that voters are looking for."
The Associated Press called the race around 1 a.m. Coakley's campaign said she would not concede Tuesday night. With 98 percent of precincts reporting, there were 34,000 votes separating Baker and Coakley.
Baker took the stage at the his campaign headquarters at the Seaport Hotel approximately 20 minutes later and quickly thanked his supporters for staying up so late.
"You stood here and waited all night packed in next to each other in 90 degree heat past the time when I was kid that testing pattern would come on the TVB and Star Spangled Banner would play and you're still here," said Baker.
Baker said that his campaign spoke with Coakley and that they were going to give her until tomorrow morning so all the votes could be counted.
"That's the way it works folks and that's the way it should work," said Baker.
Baker campaign spokesman Tim Buckley said that Baker's speech was a declaration of victory.
Coakley did not concede the race in the pre-dawn hours Wednesday and left her campaign headquarters without addressing her supporters or the press. WBZ photographed her returning to her home not long after Baker declared victory.
Sources close to the Coakley campaign said she would not concede until all the votes were counted.
As of 2 a.m. both campaigns had not announced plans for Wednesday.
"We're within 1 percentage point and there are plenty of communities out there that have yet to count every vote," Steve Kerrigan, the Democratic candidate for lieutenant governor, told a crowd of supporters just after midnight. "Martha and I believe, as I know each of you do, that every vote cast here in the commonwealth of Massachusetts deserves to be counted."
The defeat was a devastating one for Coakley and Kerrigan, coming just four years after Coakley stunned political observers nationwide by losing a race for the U.S. Senate seat that had been held for decades by Sen. Edward Kennedy to Republican Scott Brown.
Coakley said during a recent debate that if she loses the governor's race, she will not run for office again.
Independents Evan Falchuk, Jeff McCormick and Scott Lively also appeared on the ballot. The three combined for 103,260 votes, approximately 4.9 percent of the vote.
Baker, 57, and his wife Lauren live in Swampscott and have three children. Baker served under former Republican governors William Weld and Paul Cellucci in the 1990s as secretary of health and human services, then secretary of administration and finance. He then became CEO of Harvard Pilgrim Health Care, an insurer that was failing financially. Baker turned around the company through moves that included outsourcing some work and pulling out of the Rhode Island health insurance market.
Baker ran for governor in 2010 against incumbent Democratic Gov. Deval Patrick and lost by 6 percent of the vote. He has since worked for venture capital firm General Catalyst Partners. The position caused problems for him on the campaign trail, after New Jersey officials began investigating whether Baker broke any laws by donating to New Jersey Gov. Chris Christie months before the New Jersey pension fund invested money with General Catalyst.
On the campaign trail, Baker stressed an economic plan that would lower taxes for small business while increasing the earned income tax credit. He talked about the importance of increasing local aid to cities and towns and the need to improve education, connect schools with job training programs, and lift the cap on charter schools. Baker criticized Patrick for management failures relating to the Department of Children and Families and a Health Connector website as he talked about the need to have balance on Beacon Hill, where the legislature remains controlled by Democrats.
Bill Pavlovsky, an architect and unenrolled Cambridge voter, said he voted for Baker because he thinks Baker will be better at creating jobs and helping small businesses. "I think he'll be better for the economy than Martha Coakley," Pavlovsky said. "He has more business savvy."
Coakley, 61, is a two-term attorney general who grew up in North Adams and lives in Medford with her husband, Thomas O'Connor. Coakley spent most of her career as a prosecutor in the Middlesex District Attorney's office. She was elected district attorney in 1998 and attorney general in 2006.
In her campaign, Coakley stressed the importance of investing in early childhood education and providing earned sick time for all workers. She appealed to women voters by stressing her support for abortion rights and equal pay. Coakley was hoping to become Massachusetts' first elected female governor.
Coakley started the race with an advantage in a state that leans Democratic. But Baker appealed to voters as a moderate Republican, who is fiscally conservative and socially liberal, in the model of former GOP governors Weld and Cellucci. When Coakley pointed out policy differences between the two, Baker tried to narrow the gap – for example, rolling out his own plan to provide earned sick time to workers.
Coakley became increasingly aggressive at the end of the campaign, attacking Baker for his work at Harvard Pilgrim and the investigation involving General Catalyst. She said frequently that the race was about "whose side are you on," and Baker would not help working families.
Baker kept his message largely positive, leaving the negative campaigning to outside organizations. His ads showed a softer side of him, featuring his family and countering Coakley's assertions that Baker cares about numbers, not people. He reached across the aisle, getting support from Democrats. His campaign created a sophisticated voter database.
Paul Santaniello, a Longmeadow selectman and Republican strategist, said during Baker's last campaign, he tried to show how bad a governor Patrick was. This time, Baker focused on a positive message. "When you're trying to knock down a candidate, it's hard to run your own race. This time, Charlie Baker is running his race," Santaniello said.
Coakley and Kerrigan raised just $4.26 million compared to $6.87 million for Baker and Polito. While Coakley spent a significant amount of money to defeat treasurer Steve Grossman and former Medicare executive Don Berwick for the Democratic nomination, Baker cruised to victory over Republican businessman Mark Fisher.
Outside independent expenditure groups widened the gap. A group funded primarily by the Republican Governors Association spent nearly $12 million on negative advertising against Coakley. Pro-Coakley PACs spent around $4 million.
"We haven't been able to compete with that on TV," said Massachusetts Democratic Party Chairman Tom McGee.
Coakley brought in top national Democrats to campaign with her, including first lady Michelle Obama and former Secretary of State Hillary Clinton. Coakley had a stronger ground game with more volunteers knocking on doors and making phone calls heading into Election Day. State Sen. Ben Downing, a Pittsfield Democrat who chaired the Democrats' coordinated campaign, said the party had 6,700 volunteers out on Election Day knocking on 470,000 doors and making 740,000 phone calls.
But it was not enough.
MassLive reporter Garrett Quinn contributed to this story.