ms. howard about prop h. i saw that the mayor proposed pulling the trigger, which i think reduces the cash contribution fo. i know in the past we have done that because of awful budget years, not at this year is perfect, but it does improved. maybe i could get the mayor's rationale for pulling the trigger once again. >> i can mention the role and then ms. howard can comment on the policy implication. the voter mandate for proposition h. did allow for the mayor and the board of supervisors to reduce the voter adopted funding allocation to the school district. the shortfall exceed $100 million. that leaves this option open for the board and mayor. >> supervisors, a kid howard. budget director. the threshold was met. as you recall, the projected to shortfalls at the time of the report were $170 million and $312 million. for that reason this seem to be an appropriate part of balancing. you will note the budget does on the full transfer of the rainy day fund to the school district. supervisor wiener: i am not expr

ms. howard please give a brief introduction to the budget? if we can, right after your brief introduction, we might go right into the revenue letter. after that, we will come back for a quick overview on redevelopment agency, given that the overview will have bits and pieces of the reconfiguration within. >> thank you. happy to be with you this morning to talk about and provide an overview to you of our first ever two year budget. so, if i could have the overhead, victor? i would briefly walk through what is happening in fiscal 12, 13, and 14, talked a bit about what is driving the growth. share some highlights of our budget with you. and then talk a bit about how we balance. so, at the highest level, our fiscal 1213 budget is for the whole city $7 billion, of which $3.5 billion is in the general fund. the number of employees in the city is willing to 26,878. we came to agreement with our labor unions and from the general pattern in the first year, the furlough day that had previously been agreed to expired. that was worth about 4.62% of wage

before joining united nations,ms howard ran modeling teams -- the most recent book is the measure of the nation how to regain america's competitive edge and boost our. please join me in, welcoming our gust. -- guest [applause] [inaudible] before i get into the talk itself. i can't but lock around the rooe and see the flags and think thc ispl a terrific place are for someone coming from the united nations to talk and give history that relate it is to. it's a great location because of the fact of the whole idea ofo looking at different textbooks is so great at what goes on here at the counsel.l with that said, i want to talk about the idea of competitive intelligence and start with that [inaudible] this is a idea that is used allk the time..time companies exam who theirwi c competitors are, what their competitors competitors are doing well, where are they lagging behind. when companies do that to try tl identify what they can their advantages, havthey learn those and opportunities to take best practices. standard practice in the corporate world not so much in the corporate world. my bo