before i begin that, i want to give some thank you, and i would like to have pamela levin, our chief financial officer to come to the podium while i address her for a moment. pamela, i know that i speak on behalf of the board without consulting with them, but i'm going to say some things to you that i think are in the spirit of commendation for the hard work and efforts that you provided during the course of this transition. it isn't publicly maybe known that this past year the city and county of san francisco went through a whole massive change in the financial and budgeting system. new chart of accounts, all kinds of stuff that was supposed to be maybe done a year or two back or a year or two hence, but all came crashing down on your shoulders this past summer, and you gave great leadership to not only the work and the effect, the implementation of that system and this department, but also provided good guidance to collaboration with other departments within the city and county of san francisco, while maintaining your month in and month out reporting to this board on the assets of t

. >> pamela levin, chief financial officer. i am glad we already started thinking on the lines of the budget. i just want to quickly go over what our instructions are and talk a little about the next steps. so, last month the mayor's office released the 2018-19 and 19-20 budget instructions. as you know, we are on a two-year budget cycle and we do two budgets. these instructions are for our general fund budget and we also present our health care sustainability budget. and all that will come to you next month. the instructions were in response to the deficits from the five-year financial plan for 18-19 through 21-22. deficit for 18-19, 88.2 million, and 173.4 million in 1920. and it's based on current operation levels and estimated revenues. while this is a significantly lower amount than we have had in previous years, it's starting to increase again. so the plan has an increase in revenues but they are not growing fast enough to keep pace with the increases in expenditures. the projected deficit is primarily driven by increases

pamela levin. >> chief financial officer health service system. the report that is presented to you today goes through the trust fund and the general fund through september 30th, and then does a projection through june 30th, 2018. again, any projection that is done in for throw months and annualizeing it has the opportunity of having large swings during the year we do our best for little data, the trust balance at the end of june 30th, 2017, going in to this year, it was 72.5 million based on the activity through september 2017, the fund balance is projected to be at 67.3 million as of june 30th, 2018. this 5.2 projected decrease in the trust is primarily caused by subsidizeing the rates for city plan and unfavorable experience for most city plan and blue shield flex, the use of the healthcare sustain ability fund to fund the budget of expenditures and the use of performance guarantees to fund the adoption sur gough see assistance plan and pharmacy rebates for blue shield and favorable for delta dental self funded plan. new performance guarantees