This morning, Mayor Vince Gray presented his fiscal year 2012 budget to the D.C. Council inside a packed room of Councilmembers, staff and press. At first glance, the District will solve its $322 million budget gap with $187 million in cuts, $127.2 million in revenue increases and $7.9 million in added “leasing, sales and advertising.”

A few early observations from the reports streaming in: Big spending cuts in Human Services ($113M), economic development ($22M) and education ($18M). In terms of taxes — Gray has proposed the creation of a new 8.9 percent income tax bracket for those making more than $200,000 a year. He has also proposed raising the tax on parking garages to 18 percent, extending sales tax to theatres and increasing taxes on cigarettes. Gray added funding for 120 new police officers, but also proposed raising Circulator fares to $2 and closing Martin Luther King, Jr. Memorial Library on Sundays.

For those interested in the petty political stuff: the budget’s cover is somewhat Fenty-centric, featuring both a renovated library and a Circulator bus. And the title? “One City…Rising to the Challenge.” (Of course.)

Gray told the Council during the reveal that “it could have been a lot worse” and called the creation of the budget “a very difficult process.”

“We have significant reductions,” the Mayor added. “This is a budget that is painful…but provides a foundation for the future.”

The budget will be released online later today. Curious about the budgetary process in general? Check out this informative post from the D.C. Fiscal Policy Institute. Obviously, we’ll have more analysis on Gray’s proposal as the day goes on.