Mayor Vince Gray played the sunny optimist last night in delivering his second State of the District address. In a 54-minute speech before a packed house at Sixth and I Historic Synagogue, the mayor portrayed the District as an island of economic stability and growth in an otherwise tempestuous country.

A balanced budget, environmental sustainability, technological incubation and early-childhood education were among Gray’s key themes in the address. But he also ended on a somewhat somber, self-reflective note in admitting his own culpability for various missteps in his first year on the job. He repeatedly returned to his 2010 campaign slogan—”One City”—and attempted to define the phrase as something besides words on a lapel button.

“I understand why people were disappointed and I take full responsibility for those mistakes,” he said. Gray also spoke sternly of this week’s revelations that 150 current and former city employees were found to be drawing both their normal salaries as well as unemployment benefits, a scheme that has cost the District as much as $800,000 in excess jobless payments. Ninety city employees were placed on leave after the Post reported the double-dipping scheme on Monday. “We have no tolerance for fraud or malfeasance in our government,” Gray said.

Beginning by highlighting the District’s $240 million budget surplus left over from fiscal 2011, Gray took credit for an improving economy that added 9,500 jobs to the city last year and that, he said, should create another 45,000 by 2015. The District’s unemployment rate was 10.4 percent at the end of 2011, down from a peak of 11.2 last September, but still high. And though the joblessness rate is trending downward, Gray said he would like to see future economic growth be more equitable.

“While all of this economic growth is good for the city, some of our fellow Washingtonians have not yet benefitted from the economic turnaround,” he said.

To continue lifting itself up, Gray said, the District must focus less on the federal government and “ad hoc and reactive” real estate development. Instead, the mayor would like to focus on long-awaited developments, especially those east of the Anacostia River, that would boost the private sector.

Gray spoke at length of building a “new economy” for the District, a platform that includes a “cradle to career” educational path for the city’s youths. Having reached universal pre-kindergarten availability for 3- and 4-year-olds, Gray said the next focus area should be expanding D.C. Public Schools’ capacity for early-childhood education. He also boldly embraced charter schools, calling himself a “huge supporter” of such facilities. The mayor’s education-to-workforce program continued with school construction and greater investment in vocational training that adapts to 21st-century industries.

Gray also talked at great length about the District’s burgeoning high-tech sector, mentioning by name several homegrown companies that have emerged in recent years, perhaps most notably LivingSocial. He also said he’d like to bring more established tech companies to new business districts like the St. Elizabeth’s Hospital campus in Congress Heights. Though Gray did not mention the software giant by name, Microsoft announced last month it is opening an “Innovation Center” at the site.

While Gray received many rounds of applause in his description of the District’s current economic situation and future plans, perhaps the loudest came when he bragged about last year’s crime statistics. The District saw 108 homicides in 2011, an 18 percent drop from the previous year and the lowest since the early 1960s.

At time, reporters and other spectators’ eyes wandered toward the several dozen firefighters in the audience. Two weeks ago, a large group of firefighters, angry about city’s proposal to switch from 24-hour shifts to 12-hour rotations, staged a walkout at D.C. Fire Chief Ken Ellerbe’s “State of the Department” speech. Last night there was no walkout, but while others applauded the mayor, the firefighters remained still.

After the speech, several members of the D.C. Council DCist spoke with praised Gray’s acknowledgment of first-year scandals, while some also pointed to portions of the speech that touched on their favored issues. Jack Evans (D-Ward 2) said a proposed commission on business regulatory reform was a strong proposal.

“I think it’s a great idea,” he said. “Taxes and fees are too high on businesses. I think it’ll address some issues.”

Councilmember Tommy Wells (D-Ward 6) was also quick to offer effusive words for Gray’s fiscal stewardship. “He has been the best leader of all of us on financial management,” Wells said.

Pedro Ribeiro, a spokesman for the mayor, said that an outside speechwriter was brought in to help compose the address and was paid just under $5,000 out of the mayor’s office’s budget.

Read the full State of the District address. Sorry, we got it in ALL CAPS, too:
State of the District 2012