are briefer today is our director, douglaslmendorf. he will do a short talk and then will be happy to take your questions. >> good morning, and thank you all for being here. cto released its annual budget update. our current projection of budget deficits is not much different om our previous projection in march. our current forecast of economic conditions is not much different from our previous economic forecast in january. unfortunately, this is a case where no news is not good news. the country faces serious budget problems and serious economic problems. let me summarize the key points of that report, and then my colleagues and i will be happy to answer your questions. i will begin with our outlook for the budget and then turn to our outlook for the economy. for fiscal year 2010, we estimate the federal budget deficit will be about $1.30 trillion. that is 7 $1 billn below last ye's total and $27 billion below our estate in march. relative to the size of the economy, this year's deficit is expected to be the second largest shortfall i