directly. a slowdown in china or turmoil in iraq or syria or anywhere can send the stock market reeling input california jobs in state revenues in jeopardy. in the battle far away, some comes right to our soil is the unprovoked and brutal attack in san bernardino. what occurs daily consummate -- what occurs daily in so many parts of the world could occur .ere area that is what we have to be prepared and vigilant. i wish that was not the case, but it is. at the state capital, we think we have more control over things that we actually do. the global events and policies set the pace and shape the world we live in. the challenge is to solve today's problems without making those of tomorrow even worse. we face a future that is partly determined, and yet in many ways unknown. our job is to face the fact that we do now and prepare for the many unknowns as best as we can. you are not going to hear me talk about new programs today. i'm going to focus on how we pay for the commitments we already have. let's start with the budget. since the second world war, we have experienced 10 recessio