ANNAPOLIS — Gov. Larry Hogan delivered his inaugural address Wednesday afternoon, promising to usher in a new era of bipartisan cooperation and fiscal restraint.

“I am prepared to create an environment of trust and cooperation, where the best ideas rise to the top based upon their merit, regardless of which side of the political debate they come from,” he said to thousands of onlookers in front of the State House in Annapolis.

Hogan is this state’s second Republican governor in 45 years, and his term will be the first time since 2006 that the Democratic party won’t dominate decision making in Annapolis. The state’s last Republican governor, Robert Ehrlich, was the first speaker at the ceremony and noted the historic significance of the change in power.

Hogan’s inauguration comes a day before he plans to introduce his budget proposal, which promises cuts to agencies such as the University System of Maryland for the fiscal year beginning on July 1.

Hogan’s first challenge as governor is to fix the state’s $750 million budget deficit, which he inherited from previous Gov. Martin O’Malley. Earlier this month, O’Malley attempted to ease the budget crisis by issuing immediate budget cuts for all state agencies. The university system’s budget was cut $40.3 million, with $15.6 million coming from this University.

University President Wallace Loh announced Friday a second semester tuition increase of $152 for full-time resident undergraduate students, as well as furloughs for faculty, staff and administrators. Loh blamed these cuts on a drop in federal spending, rather than state policy.

“The economy of Maryland is very much affected by federal spending, a very significant portion of the workforce in Maryland is related to federal spending, federal contractors and so forth,” Loh said. “When the federal government cuts back because of sequestration… that impacts workers in Maryland, which affects the income and affects the revenues that the state of Maryland receives.”

Loh, who attended Wednesday’s inauguration, said Hogan’s message of economic development and job growth connected with the university’s mission. Loh has met with Hogan, and says he will continue to lobby in Annapolis for university funding throughout the spring legislative session.

Sen. Jim Rosapepe (D-Prince George’s), who represents College Park, said university funding is one of his main priorities, and he remains uncertain where Hogan will choose to make budget cuts.

“I’m concerned that there is the danger that the state investment in higher education may go down and that may have a direct impact on students in college,” Rosapepe said.

In his speech, Hogan stressed that government spending must be reduced to ease the burden on taxpayers.

“We must get the state government off our backs and out of our pockets so that we can grow the private sector, put people back to work, and turn our economy around,” Hogan said to the loudest applause of the afternoon.

New Jersey Gov. Chris Christie, head of the Republican Governors Association, spoke to the crowd before Hogan, expressing his confidence for the state’s new leader.

“Let me tell you why I like Larry,” Christie said. “I like him because he stands up strongly for his principles, because hes blunt, direct and he says what he believes. But he also knows that his job as Governor is to get things done for the people of Maryland because that is what Maryland needs the most.”

Hogan’s running mate, Boyd Rutherford, was sworn in as Lieutenant Governor after his son introduced him. Rutherford emphasized that he and Hogan have the same agenda and will work together.

“We will have a united executive branch, working together, serving all the people of Maryland,” Rutherford said. “One staff on the second floor working to carry out Gov. Hogan’s vision.”

Breyer Hillegas, president of this university’s College Republicans chapter, attended the inauguration and praised Hogan’s bipartisan message.

“It’s obviously going to be hard to have a Governor that’s the opposite party of the State House, but I think he will do better than most republicans would in that position,” Hillegas said. “They’re going to debate, talk about what’s best for Maryland and it sounds like its going to be everyone coming together, having discourse, talking about it, finding out where to make cuts, and I think they’ll be able to work together pretty well.”