coming together for solutions to save jobs and city services? here. in san francisco. by the way, this has also been done with the account of the impact on working men and women in town. this is done deliberately. this is done smartly. during those long, long meetings during which we crafted this proposal -- i want to thank warren hellman for helping lead this charge. i want to thank all the sector unions. the public safety, the lawyers. everyone was at the table. i want to give an extra shot out to the chair of our public employees union from local 21. i am surprised his marriage is still together, the amount of hours he has spent on this. i want to knowledge everyone

surrounding us today. some of the other people working. i know tommy o'connor from the firefighters. the police representatives. along with the board of supervisors. there was a lot of number crunching to people were fully prepared when the move to the table. this is historic. i am really proud of both the public sector and the private sector that we can craft this kind of resolution. thank you. [applause] mayor lee: i also said the transparency was well beyond the labor unions as well, as well as our city workers. so, i know this transparency was reflected in the san francisco chamber of commerce and their ongoing participation. they listened very quickly to our efforts. >> thank you, mayor lee. the chamber of commerce and the

entire business community of san francisco want to thank you for your leadership, and supervisor tells burns -- supervisor tells burns -- supervisor elsbernd, for your leadership. businesses have had to reduce their work forces. we have 40,000 unemployed san franciscans. it was time that we faced the reality of helping the city of just -- i just needed pension reforms. we're pleased to be part of this process. again, the best kind of reform is consensus reform. there are many times when you see in front of you city leaders, labor leaders, business leaders agreeing this is the right solution of the right time. thank you, mayor, again for your leadership, and we look forward

to balancing the city budget and getting a raw economy back on track. thank you. [applause] mayor lee: by the way, if you are keeping count, i counted nine supervisors here. the other two who could not make it, i believe it was because they could not get here on time. we also have with us david metcalf from spur. we had a representative from the labor foundation. i also want to emphasize tim paulsen stood up for working families. that included rebecca ryan, roxanne sanchez, tom o'connor,

tim paulsen, and we are joined by the fire chief joann hayes- white. i want to make sure i recognize throughout the process that our city attorney contributed to all the legal questions that came up. knowing how difficult these aspects were, they stepped up to help us review all these proposals. with that, this press conference is concluded, and we will move forward. yes, we will take questions. >> [unintelligible] >> first of all -- [unintelligible] in this proposal, we're talking about 35%. how can we afford that? mayor lee: it does, but

obviously we have a long-term view on this. our talks relations indicates -- our copulations indicate this over 10 years. a lot will depend on how -- our calculations indicate the server 10 years. a lot will depend on how our investments do. we've always said employee contributions would be the major part and for a lot of current sacrifices are reflected. >> 35% -- it never gets to 35%. [unintelligible] mayor lee: it is a safety net. we have made the calculations just in case. >> [unintelligible] mayor lee: the very first year

this takes effect, we anticipate $60 million in year 2013. in addition to that, all the new hires will begin contributing in a different way beginning january of next year. that is the savings. there is no smoothing in this process, because there is no smoothing in the economics of what we are facing. so we did not consider that a dog. >> the 10-year plan will not get going before a couple of years. mayor lee: we do have labor contracts in place right now that we have to honor. we currently have a lot of obligations that we have to honor with current retirees. so we did not touch that the legal obligation. so we had to start making significant changes as of nest -- next fiscal year.

>> [unintelligible] mayor lee: the service employees are right here. they are right here among us. >> [unintelligible] can you talk about how they came on board? >> i would just say, we are happy to be here today. [laughter] i am the staff director in san francisco for the service employees. i am joined by members of our bargaining team. we are pleased to be here. we are especially thankful to warren hellman for his guidance and participation. we do have meetings with the mayor, issues we will be discussing. it is a healthy process and we're happy to participate. >> [unintelligible] >> we will be discussing with

the mayor. >> analysis negotiation different from previous years? >> negotiation is always a difficult process. both sides come in with their interests and ideas. what was different is we spent a great deal of time at the beginning and got beat up from the press because of the time that we did take because -- so that we fully understood what was going into the discussions. >> there is a particular elected official not ammonia. [unintelligible] mayor lee: i did meet with him yesterday. we explained our proposals. we will leave it to him whether he wants to present those or not. we to believe that our consensus approach is the right thing to do. it signals that if you do want a sacrifice, you have to work directly with people who will offer that sacrifice and will do

it in a way which is comprehensive and reflective of the values of san francisco. that is what we have done. i leave mr. adachi to his viewpoint. i am sure he has to recognize this is the official city family and he does not represent that. >> [unintelligible] do you think that was in his interest? mayor lee: i do not. the city attorney has been giving us advice. there is no doubt in my mind that that advice has been completely apart from anything that is political. we have kept politics out of this and focused on the numbers and the legality of the proposals we presented, and we are extremely confident this will pass before the board of supervisors and the public in november. mayor lee: >> lee: thank you.

[applause]

>> i am so glad to be here and joining everyone here today. she has not gotten used to a real mustache. anyway, i am so glad to be here enjoying all of you on this very important day.

i do not know if you knew it, this is important because all of us up here and in particular, carmen and congresswomen spirit -- we are so much in charge with their huge decisions that affect everybody's lives. i have to say that a large part of my work as the mayor is trying to fill this $306 million gap. as you can imagine, we are short in the city by $306 million, and we have had some months to work at it, and then trying to work at it with every supervisor and every financial person in the city and community-based agencies, and it is a very tough job, but we will get through it and try to balance the budget as well, but for all of you, what i wanted to say this morning

about personal financial planning -- it is not only a good thing, it is absolutely a necessary thing. all of you know how much money there is not out there, but guess what? actually, money is out there. you just have to be able to know where it is and then, if you see it, you do not spend it right away. you manage it. managing money to me is one of the most important things people do. all of you have heard that once in awhile, you read about a famous actor or actress or famous sport per cent who has made millions and millions of dollars. they got a huge contract, whether they were a football player or a baseball player or basketball player, and suddenly, two or three years later, they cannot afford a house. what happens when they had all this money? then, you think yourself, "if i

had all that money, i would not squander it." even people who do not have the money, when they get a chance, if you do not have the knowledge to manage it, if you have not paid attention to debt vs credit, you may end up having lost the greatest opportunity of your life, which is to set yourself up with a good financial foundation and then allow yourself to have choices that make irresponsible way. for all of you who are young, it is hard to imagine now what there might be to make a whole lot of money peer over your lap times, you are probably going to make -- especially because you are here -- millions of dollars. it is what you do with it, how you use it, how you invest it. all of you are like me when i grew up. there's a lot of pressure. you want the car or that i had 2 -- the ipad 2 or the iphone

12. you can actually get the things that you want. but my mother and father taught me that if you want to make money, you have to deny yourself everything first because then you will put it in the bank and save it. i realize that is not the real true way or maybe not the modern way. you can do that, but do you have to deny yourself everything? i think if you have got financial planning like the kinds of expertise around here today, you can actually get the things you want, but you can set it up so that you still have a sound financial ability to pay for those things you want and keep your life going with a good financial foundation. you can form the things that you 1 years from now. the house or to be able to travel and do the things you want to do or have just a good education so you can open up your choices. i think it is no longer this generation when you deny yourself things.

you can be smart about it, put things away in a good investments and get the things you want to do today. you can only do that if you learn how to manage and how to make sure you are not in debt. make sure you build an opportunity for yourself, and the skills out here with all the agencies we have to afford the opportunities. i want to share that with you. we're trying to be smarter with your money and your parents money and your taxes. we're trying to plant five years in advance -- did you know the city never did a five-year budget before? i am amazed. while i am mayor we get to kick off the very first time. we're not just planning a year to your budget. we are planning out five years ahead so that the city can afford to do more things it wants to do and still keep their promise, which is that your taxes and the taxes your parents pay for do not go up extraordinarily and we still get good schools and great streets

and good parts to play in and all the other wonderful things that make the city successful. thank you very much, and congratulations on joining us. [applause] >> thank you, supervisor, and thank you for the great leadership you are showing our young people by posting this today with me and for the leadership you have shown. and don't we have a great mayor in ed lee? [applause] excuse me, there is a frog in my throat. i want to thank you for being here. vice principal, thank you as well. i understand that our treasurer is either here or will be here. is that correct? he is going to tell you something pretty exciting, and that is how you can save money for college, so listen up when he appears. i understand mario is here from

the youth commission. we want to thank you, as the director, for being here. [applause] aaron, where are you? somewhere. [applause] here at lincoln, you have done something that has not been done in many places around the country, and that is, you have created an identity theft council and taught more than 200 students about the problems with identity theft. how many of you are on the identity theft council, raise your hand. [applause] is kneel here? thank you for your leadership in bringing this council together and creating this kind of awareness among our youth. as many of you are probably already aware, more people every

year are victims of identity theft than those that are victims of burglaries, attempted burglary, arson, pickpocketing, purse snatching, auto theft, shoplifting, embezzlement and fraud combined. imagine all of those crimes, add them together, and there is still more identity theft going on in this country than all those other crimes. it is a huge problem. i just heard on the tv this morning sony -- playstation -- shut down its system today because someone hacked into the system and was able to get 2.5 million names and credit card numbers. so being smart about preventing identity theft is really a huge issue and a great skill to have. if you are interested in learning more about the program,

session two is one of the workshops that a that you should avail yourself of so you can learn more about identity theft. the mayor talked about the problems we are having with budgets on the city level. let me tell you about the problems we are having with budgets on a federal level. he was talking about hundreds of millions of dollars. how about talking about trillions of dollars? that is what the problem is on a federal level. $1.40 trillion is the deficit this year, and we have a debt of close to $14 trillion. that is not fair to carry that debt so that you as young people are going to find yourself paying more money to service the debt then you are to have services in this country. that is why we have got to fix that. one of the ways we have to fix it is to stop engaging in wars

that we are not paying for. [applause] i am going to test the historical wizards in the room. the hubble event two wars that we have not paid for. we have not paid for the iraq/afghanistan/libya war. we borrowed money in order to engage in those three wars. there is only one other war in the history of this country that we did not pay for, that we borrowed money in order to pay for. [inaudible] did you all hear that? [laughter] he was right. the revolutionary war. the revolutionary war, we borrowed money from france. every other we have engaged in we paid for as we went, but we have not paid for this war or these wars, and the cost is now over $1 trillion. what is worse is that detail on

that war, and i mean the fact that all those and wounded warriors that come home that have suffered traumatic brain injuries or serious injury -- the cost of providing health care to them for the rest of their lives is going to make the cost of these wars close to $3 trillion. so why am i telling you this? i am telling you this because it all relates back to you and your life, whether or not there is going to be dollars spent on the kinds of programs you want on a federal level, there will be a student loan program where -- when you are in college. we have maximized the student loan program on a federal level by getting rid of, interestingly enough, the banks that were making $60 billion a year servicing those loans. we decided that we could do that as a federal government. so we are all looking at ways to tighten our belt. how many of you think your parents do not spend enough money on things for you? [laughter]

how many of you think they are taking that money and stalking away for your college education? [laughter] you know they are. that is really what this is all about -- prioritizing what is important and putting the money away. as much as you want that new ipad 2, think about how much you will save by putting that money away, gaining some interest on it now, but using it for your college education. most kids i talk to in college to they have hundreds of thousands of dollars in loans that they are saddled with that they end up having to pay over a long time into their adult lives. you will want to be there -- you do not want to be there. and you certainly do not want to get these credit cards that you might find at a giants game where they are going to give you a free tall, and you sign up only to find out that it is a

29% interest rate -- i love the giants, do not get me wrong. i go to as many games as i can, but we have got to be smart. whenever anyone is trying to offer you something to get you to do something relative to credit, think about it. ask them what the interest rate is. ask them how much it will cost you per month. you are going to learn a lot today, and i think it is going to be a great opportunity for you. let me just begin by telling you this -- people in this country are saddled with debt. personal debt, much like the federal government is saddled with debt. for the longest time, we thought that we could basically put it on plastic. that has been the american way. unlike many european countries where they do not have a lot of credit, we have used the credit card in ways that we should not have. so that now, the credit card debt in this country is it

hundred $66 billion. that is the equivalent -- $866 billion. that is the equivalent of every american -- man, woman, and child -- having credit card debt that equals almost $3,000. imagine $3,000 of debt that you are paying interest on every month. so you never can get out from under that. you are going to learn lots of things here today. i hope one of the most important things you learn is that money does not grow on trees. you should always have money stocked away for emergencies and all those great new fan a gold video equipment and games and things that you want to have today, that you just have to have today -- wait a couple of days and see if you still have to have it. or that dress or those pair of shoes or that hers. more often than not, what happens to all of us is it looks

great for about 20 seconds, and then we have lost interest in it. so enjoy the day, and i am delighted you are all here to gain greater experience of our financial literacy. [applause] >> we have been joined by our treasurer. i do want to give him the opportunity to say a few words. >> thank you, everyone. thank you, supervisors, mayor. it is great to be here as the city's treasurer. our office has the responsibility for handling the city's money. that is a big job. that is a lot of money that we collect, that we spend, that we used to provide valuable services all across the city. i am excited to be your with you today because in our office, we want to do everything we can to make sure you have all the information and tools and resources to handle your money successfully. it is so important that every

community, every household in our city is able to be successful, save for their future, and make themselves and their kids financially successful going forward. i'm excited to be your today. i'm going to be back in a few minutes, i understand, to introduce our keynote speaker. i am excited about that, and i will be telling you more about what we're doing in the treasurer's office to help families in san francisco and even an exciting new program helping public school system in san francisco have a chance to save for college. thanks so much for being here. learn a lot. [applause] >> i will just keep my comments brief. i hope you do learn a lot. you're going to see a lot of financial institutions around the rim, talk to them, speak with people can talk to you about financial aid. a lot of departments might have summer job opportunities. talk to them. make sure you use all the resources today, learn about what you should be thinking about in the future. the covers woman was talking earlier about identity theft

here i will tell you, i myself actually was a victim of identity theft. someone opened a cell phone account under my name just this past year, and i cannot tell you how much time it has taken for me to go and talk to credit bureaus and try to sort out the whole mess. i will just tell you, it is something that happens to a lot of people. you might not think it is you, but it is something that is good for you to start thinking about. i will not be saying anything further except to thank the people who have helped us today. principle pain, thank you for the use of your wonderful facility -- about princ -- principal payne. in my office, tammy as the one who pulled all this