Carney and Lt. Gov. Bethany Hall-Long, also a Democrat, took their oaths of office Tuesday morning in a rain-soaked ceremony on the steps of Legislative Hall.

Carney acknowledged the state's challenges, including significant state budget problems and unabated gun violence in Wilmington, the state's largest city, but said they can be met with hard work and cooperation among state and local officials.

On the economy:  "Our administration will work to lead our state through a transition to an innovation economy, where we're not only the First State when it comes to incorporating a company but also the First State when it comes to growing a company and deepening its roots here in Delaware."

On the budget: "The hardest truth may be that we can't do anything else unless we get our state's finances under control. We have a revenue problem; but we also have a spending problem. In the coming months, we'll put forth a plan for addressing our budget crisis not just for one year, but for years to come."

On Wilmington crime: "Working hard and working together, with our new mayor and new county executive, we must break the poverty to prison pipeline. In the short-term, we will get serious about our crime problem. We'll target resources to the most crime-ridden neighborhoods. And we will better prepare ex-offenders to come back to the community. Wilmington residents and the tens of thousands who commute into the city deserve to feel safe and feel proud of where they live and work. Businesses should feel confident investing there. We all have a stake, and a compelling responsibility, to make Wilmington healthy again."

On education: "Every Delaware child deserves a world-class education.  Many of our schools have made great strides in recent years, and we have a lot to be proud of.  But the truth is, we need to do better, especially for poor and minority students. Our Department of Education will be an agency that offers support to teachers. We will hold schools accountable, yes. But above all, we will partner with teachers and parents in serving the best interests of our students."

Carney was elected governor eight years after losing a hard-fought Democratic primary to Gov. Jack Markell.

He went on to serve as Delaware's lone representative in the U.S. House in 2010.