• Tourism and business travel remain San Francisco's number one industry, attracting 16 million visitors who spend $8.4 billion annually with a record 44.5 million passengers passing through San Francisco International Airport in 2012, up 8.6 percent from last year;
• The City is home to more than 1,800 tech companies with 42,000 employees, up 50 percent since Mayor Lee took office;
• Small business and local manufacturing sectors are growing;
• Results from Mayor Lee's Invest in Neighborhoods initiative that supports small businesses;
• Results from the Mayor's effort to reform the City's business tax structure by replacing a job punishing tax system to one that is more fair and transparent and includes new revenue for housing, infrastructure, small business and economic development;
• Progress on infrastructure projects from San Francisco General Obligation bonds for parks and playgrounds; street paving; retrofits to fire stations and the emergency water supply system; the rebuild of San Francisco General Hospital; and the City's Branch Library Improvement Program;
• Progress on the Transit Center District Plan – approved in September and anchored by the new Transbay Center – which will provide 27,000 jobs, more than 4,000 homes, 1,000 hotel rooms, and 12 acres of open space, with the Transit Tower, the tallest building west of the Mississippi, at its centerpiece; and
• Status of waterfront projects, including mixed use developments at Seawall lot 337 and Pier 70 and Pier 30-32 that in less than five years will be the home of the Golden State Warriors and the new Exploratorium that will open on Pier 15.

In terms of housing, Mayor Lee says that last year, voters approved a tool to replace redevelopment funding with a Housing Trust Fund, a $1.5 billion stream of funding over the next 30 years to re-envision housing for people of all incomes in San Francisco including first-time homebuyer assistance for families and first-responders.
In addition to implementing the Housing Trust Fund, Mayor Lee revealed his intention to “fundamentally re-envision the manner in which government provides housing to its lowest-income residents.”

Mayor Lee tasked City Administrator Naomi Kelly and Mayor's Office of Housing Director Olson Lee to partner directly with US Housing and Urban Development and San Francisco Housing Authority staff to develop a set of recommendations by July 1st to provide comprehensive recommendations to re-invent the governance and management of public housing, up to and including replacing the Housing Authority with a new model—a model that relies on public-private partnerships and builds on the Housing Trust Fund and HOPE SF.

Check back later today for more on the state address as it relates to education and transportation.