WASHINGTON (AP) ― President Barack Obama is urging a divided Congress to boost job creation and strengthen the middle class through a package of government-backed proposals.

In his State of the Union address, Obama is calling for increasing the federal minimum wage, spending more to fix the nation’s roads and bridges, and expanding early childhood education.

Obama says his proposals would not increase the deficit “by a single dime.” But with unemployment persistently high and consumer confidence falling, he is pressing a progressive case for Washington’s role in reigniting the economy.

Pledging to revive a “rising, thriving middle class,” President Barack Obama promised Tuesday night to create solid new jobs without raising the federal deficit. He’s calling for a “smarter government” but not a bigger one.

In excerpts released ahead of his State of the Union address, Obama called job creation his “North Star” and implored a divided Congress to center its work on attracting more jobs to the U.S., equipping Americans to compete for those positions and making sure hard work leads to a decent living.

“It is our unfinished task to restore the basic bargain that built this country ― the idea that if you work hard and meet your responsibilities, you can get ahead, no matter where you come from, what you look like, or who you love,” Obama said.

The president said his proposals to increase spending on manufacturing, infrastructure and clean-energy technologies would be fully paid for, though he did not specify in the excerpts how he would offset the cost of his proposals.

“Nothing I’m proposing tonight should increase our deficit by a single dime,” Obama said. “It’s not a bigger government we need, but a smarter government that sets priorities and invests in broad-based growth.”

In focusing his annual address on jobs and the deficit, the president is underscoring the degree to which the economy still threatens to disrupt his broader second-term agenda. Despite marked improvements since he took office four years ago, the unemployment rate is still hovering around 8 percent and consumer confidence has slipped.

White House officials said Obama was offering an outline for job creation, though much of his blueprint apparently includes elements Americans have heard before, including spending more money to boost manufacturing and improve infrastructure. Getting that new spending through Congress appears unlikely, given that it would require support from Republicans who blocked similar measures during Obama’s first term.

Florida Sen. Marco Rubio, a rising Republican star, was to deliver his party’s response. In excerpts of his remarks, Rubio also appealed to the middle class, but sought to draw a distinction with the president by citing “our free enterprise economy” as the source of prosperity, not the government.

The president was expected to be uncompromising in his calls for lawmakers to offset across-the-board spending cuts that are scheduled to begin March 1 with a mix of tax increases as well as targeted budget cuts.

The president hasn’t detailed where he wants lawmakers to take action, though he and his aides often mention as examples of unnecessary tax breaks a benefit for owners of private jets and tax subsidies for oil and gas companies. Such measures are modest, however. Ending the corporate plane and oil and gas breaks would generate about $43 billion in revenue over 10 years.

That appeal for new revenue is getting stiff-armed by Republicans, who reluctantly agreed at the start of the year to increase tax rates on the wealthiest Americans in exchange for extending Bush-era tax rates for the rest of taxpayers.

“He’s gotten all the revenue he’s going to get,” Senate Minority Leader Mitch McConnell, R-Ky., said. “Been there, done that.”

Obama proposals on jobs and taxes

Jobs

l Raise the minimum wage to $9 per hour, up from the current level of $7.25 per hour by the end of 2015. Ensure minimum wage keeps pace with inflation.

l Spend $1 billion to create a network of 15 manufacturing institutes across the country. Three will be launched this year through the Energy and Defense departments with help from community colleges, universities and private businesses.

l Invest $50 billion in infrastructure, including $40 billion for urgent fixes for deficient bridges.

l Ask Congress to support a $15 billion construction program to rehabilitate or demolish foreclosed and vacant properties.

l Host a “Select USA Investment Summit” to match offshore businesses with local governments seeking to attract foreign investment and businesses.

l Boost exports by launching trade talks with the European Union and completing the Trans-Pacific Partnership.

l Create “Promise Zones” in 20 communities to provide” intensive technical assistance“ with existing programs and opportunities to help create jobs.

Taxes

l Urge Congress to lower the corporate rate. Establish especial rate for manufacturers that is even lower.

l Create an “off shoring tax” to set a minimum tax on offshore earnings to encourage domestic investments, prevent” race to the bottom” in corporate tax rates.

l Expand the research and development tax credit, and make it permanent. This also would require Congressional approval.