In the first known Cambridge "State of the City Address" last night, Mayor Anthony D. Galluccio lauded the city's efforts to improve city services and create affordable housing, and called on residents to maintain the city's diversity and improve education.

"Cambridge is a world-class city of unlimited potential," Galluccio said to a crowd of 700 at the Kennedy School of Government's ARCO forum. "You should be proud of of the accomplishments we have made as a city. But there is also pressure to build a better city."

The major focus of Galluccio's speech was improving youth services and public education. He praised the city's efforts to increase literacy, provide jobs for youths and create child care and youth centers.

"I can say with confidence tonight that Cambridge cares about its children," Galluccio said.

But he called for drastic improvements to the public education system through efforts such as increasing the technology training that students receive.

He announced a new partnership between the city, Harvard, MIT and Lesley University to focus on improving Cambridge's schools.

"After lengthy discussions, they have agreed to develop a 'Charter of Responsibility' that reflects how these world-class institutions will help ensure that Cambridge has world class public schools," Galluccio said.

While discussions are still in their infancy, the partnership will focus university resources on improving specific areas of public education.