The future belongs to the nation that best educates its citizens, We have everything we need to be that nation ... and yet, despite resources that are unmatched anywhere in the world, we have let our grades slip, our schools crumble, our teacher quality fall short and other nations outpace us."

His solutions include teacher pay and charter school proposals that have met resistance among members of teachers unions, which constitute an important segment of the Democratic Party.

Obama acknowledged that conflict, saying, "Too many supporters of my party have resisted the idea of rewarding excellence in teaching with extra pay, even though we know it can make a difference in the classroom."

Despite their history on the issues, union leaders publicly welcomed Obama's words, saying it seems clear he wants to include them in his decisions in a way President George W. Bush did not.

"We finally have an education president."  president of the 1.4 million-member American Federation of Teachers. "We really embrace the fact that he's talked about both shared responsibility and making sure there is a voice for teachers, something that was totally lacking in the last eight years."