Gov. Charlie Baker signed the state budget for this fiscal year Friday afternoon, giving his final approval to a $38.1 billion compromise spending plan that boosts tax credits for poor working families and gives him greater control over the MBTA's finances.

Before Baker put his signature on his first budget as governor, he used his veto powers to remove $162 million to bring the budget in line with his spending goals. Baker identified $38 million of that amount as earmark spending including by lawmakers during their budgeting process. Among the most drastic vetoes Baker delivered were cuts to aid for poor families with children, rental vouchers and grants to expand kindergarten.

Baker is eager to get to work with his new powers over the MBTA's finances. He swore in several new members of the MassDOT board who will work exclusively in overseeing the financial success of the beleaguered agency.

"This budget creates a fiscal and management control board for the MBTA, expands the MassDOT board and includes a number of important tools in the toolkit to help us fix the T," Baker said outside his office Friday during a press conference.

The budget greatly increases tax credits for poor working families through the Earned Income Tax Credit, a high priority for both Baker and the Senate.

The Democrat-controlled Legislature could vote to override Baker's vetoes as early as next week.