There are some challenges so large that we can only address them together; things like harnessing the job creating potential of innovation, improving public safety and public education, and restoring the health of the Chesapeake Bay. As we reminded ourselves during this week's inaugural activities, we are "One Maryland," and we can only move forward by working together.

In this new global economy, we are in a fight for our economic future. Some states will win, and some states will lose.

Here in Maryland, we are in a stronger position than other states to make this new economy ours because of the tough choices we are making together. Given our competitive strengths, there is not another state better positioned to transform the global challenges we now face into new jobs and new opportunities for Maryland's innovation economy.

During this year's legislative session in Annapolis, I will introduce legislation that will build on our state's competitive strengths and that is focused on creating jobs and protecting the priorities that will allow us to make this new economy ours.

I'll be asking for the General Assembly's help in creating a new InvestMaryland initiative to grow our state's knowledge-based industries and generate up to $100 million in private venture capital funds to create thousands of jobs. To create new "green" jobs for Marylanders, I will introduce legislation to spur wind energy generation off Maryland's coast.

On Friday, I submitted a balanced, fiscally responsible budget that cuts state spending by $1.4 billion and further reduces the size of the state's workforce. For the fifth year in a row, our budget proposal comes in below the spending affordability guidelines set by the legislature, and it brings our five year state spending reductions to $6.6 billion.

At the same time, we're making the tough choices to protect strategic investments in our children's future. My budget proposal asks the General Assembly to defend our largest-ever, $5.7 billion investment in public education to ensure that tomorrow's work force has the skills they need to compete in the global economy. And after freezing college tuition for four years in a row, we are keeping college affordable at our four-year public colleges and universities to make certain that anyone who works hard for a better future can have access to a college education.

With our capital budget, we will support nearly 15,000 jobs through investments in our state's infrastructure. To help our growing biotechnology and life sciences sectors, we'll invest in biotechnology tax credits and stem-cell research, and as we look to grow our economy in more sustainable ways, we'll create jobs and promote economic development in our state's urban centers through the Sustainable Communities Tax Credits.

While we are once again faced with tough choices to bring Maryland out of this global economic downturn, the great thing about the people of our state is that in times of adversity we don't make excuses; we make progress.

Lt. Gov. Anthony Brown and I have always been open and honest with the people of our state about the choices and challenges we face. Addressing the budget shortfall we face this year will require sacrifice from all of us and many tough decisions. With 87 cents of every dollar we spend allocated to public safety, public education and public health, there are no easy answers.

We cannot allow the challenges of today to deter us from advancing the promise of the future. We must continue to defend and advance priorities like improving public education, which will allow us to make this new economy ours. While cutting and balancing are important, they are not enough by themselves to create jobs in the new economy.

—Martin O'Malley is Maryland's governor.