Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Rod Bourgeois. You may ask your question.
Rod Bourgeois - Sanford Bernstein
I guess John Morphy, you gave some information on why your HRS revenue growth will accelerate in fiscal ’09 relative to where it was in Q4. I was hoping you could also give some similar visibility into your float earnings growth assumptions. In other words, the yield and the client funds balance growth. And then also some more color on where your payroll revenue growth will come from because that growth rate may need to accelerate a little bit from the Q4 level as well to hit your guidance for next year. So more visibility into the float earnings assumptions but also the payroll revenue growth assumptions.
John M. Morphy
On the float earnings, basically we’ve gone through what we project float income to be, and we’ve got the database that’s got all the investments in it. We make no assumptions on changing rates. We know what we can invest at, we know about where we are on taxables and tax exempts. I gave you the quarterly data to basically steer you into the best number I have. I don’t know what more to do. I mean, we’re usually pretty accurate so I think you should look at those ranges and pick the middle of them, or sometimes we even gave you a single point and that’s what you should load in. You can work it backwards but I don’t know any better way to do it than that.
Rod Bourgeois - Sanford Bernstein
John, if I assume 3% client funds balance growth, that implies -- your guidance then implies a yield for fiscal ’09 of about 2.7%. Does that sound about right?
John M. Morphy
Sounds about right but I don’t look at it -- you know, I’ve got treasury people that know that exactly. I would say the client funds increase balance was somewhere between 3 and 4, the estimate, maybe a little better but not much. You know, you passed a number -- I --
Rod Bourgeois - Sanford Bernstein
All right, then your yield will still be in the 2.65 to 2.7 range, if your guidance plays out?
John M. Morphy
That’s probably true, and we told you how much a change of 25 basis points would be, so I don’t know -- I think I’ve given you all you need.
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