we first estimated the total tax proceeds ftd city at approximately 3.2 billion. the state sets forth certain exclusions in article 13b these include debt service, federally mandated services, qualified capital outlays and certain hazardous waste programs. with these exclusions removed, the total appropriation subject to the limit are 2.7 billion. this leaves us approximately 81 million dollars below the limit for fiscal year 14-15. the last slide is historical list of amounts, how far the city was under the limit. you will notice that it appears we are approaching -- our appropriations are approaching the limit. as the san francisco economy continues to do well and outpace state inflation we creep closer and closer to the limit, so in the future it may be necessary to more closely scrutinize appropriations. i'd be happy to answer any questions. i have other copies of this presentation for any members of the public who would like one. thanks for your presentation. colleagues? mr. rose, can we move to your report, please? mr. chairman, members of the committee, we