greg wagner chief financial officer. so, we are here to present on the second hearing of our opposed proposed budget for fiscal years 16-18. so that is our update to our rolling committee budget for fiscal year 16-something the additional proposed responses for 17-18. as you know, the last hearing we discussed the initiatives required to meet our general fund revenue targets for the -will do this on the fly-the feast hearing at this hearing. we will talk about some additional initiatives were proposing to fund within our budget. were also meeting a requirement under the budget instructions. i want to look at some of these tables up here, but i want to just set in context a little bit what we are looking at today. as you know, we do have a rolling two-year budget. so, in last year's budget cycle we adopted a two-year budget to couple your fiscal years 15-16, the current year, and 16-17 the coming year. all the initiatives adopted in that budget remained in the base budget, and they don't show up on the presentation that's

phase of the waiver think that is good, i want to acknowledge both greg and the staff that seems prudent to looked at forward. >> so mr. wagner on this same page on page 9 could you explain the use of priority of your research and when does that run out that is kind of where you are talking to try to balance this also. >> yeah. so in the real short answer is that we're still developing but that is going to look it over time this is the first year we've actually used

phase of the waiver think that is good, i want to acknowledge both greg and the staff that seems prudent to looked at forward. >> so mr. wagner on this same page on page 9 could you explain the use of priority of your research and when does that run out that is kind of where you are talking to try to balance this also. >> yeah. so in the real short answer is that we're still developing but that is going to look it over time this is the first year we've actually used the new policy so there is some things we need to decide to figure out how we're going forward the short answer we have at the end of the year last year, we had identified a couple of specific items that we had identified as risks the biggest ones were the reduction the capitated rate for medi-cal expansion population and this is about 167 $167 million and an associated i g t that rates had been going to i pack we had the fund retired we're drawing them out in fiscal year 2016-2017 to cover that shortfall in fiscal year 2017-2018 we are doing a similar we're taking a similar approach to draw fund reserved but we anticipate is that we'll be doing that in a one time

phase of the waiver think that is good, i want to acknowledge both greg and the staff that seems prudent to looked at forward. >> so mr. wagner on this same page on page 9 could you explain the use of priority of your research and when does that run out that is kind of where you are talking to try to balance this also. >> yeah. so in the real short answer is that we're still developing but that is going to look it over time this is the first year we've actually used the new policy so there is some things we need to decide to figure out how we're going forward the short answer we have at the end of the year last year, we had identified a couple of specific items that we had identified as risks the biggest ones were the reduction the capitated rate for medi-cal expansion population and this is about 167 $167 million and an associated i g t that rates had been going to i pack we had the fund retired we're drawing them out in fiscal year 2016-2017 to cover that shortfall in fiscal year 2017-2018 we are doing a similar we're taking a similar approach to draw fund reserved but we anticipate is that we'll be doing that in a one time