The mayor joined new chancellor Cheryl Hyman at Olive Harvey College on Chicago's South Side.
Hyman and Gery Chico, City Colleges' new chairman of the board of trustees, announced their first budget which totals more than $457 million.
The budget would help pay for new technology, programs and education initiatives.
Mayor Daley says this give students the skills they need for the jobs of tomorrow.
"The only priority should be the quality of education that we give to all of our children. That is essential as a nation. It is essential for national defense, our national security. It's essential for the growth of our communities. It's essential for the American dream," said Mayor Daley.
Public hearings on the proposed budget will be held next week at City Colleges throughout Chicago.