operating expenses operating expenses were $ 2.9 billion , an increase of 8% ( 8 % ) over 2000 .
adjusted for the formation of citistreet , operating expenses grew 10% ( 10 % ) .
expense growth in 2001 of 10% ( 10 % ) is significantly lower than the comparable 20% ( 20 % ) expense growth for 2000 compared to 1999 .
state street successfully reduced the growth rate of expenses as revenue growth slowed during the latter half of 2000 and early 2001 .
the expense growth in 2001 reflects higher expenses for salaries and employee benefits , as well as information systems and communications .
o p e r a t i n g e x p e n s e s ( dollars in millions ) 2001 2000 1999 change adjusted change 00-01 ( 1 ) .

( dollars in millions )
2001
2000
1999
change 00-01
adjusted change 00-01 ( 1 )
salaries and employee benefits
$ 1663
$ 1524
$ 1313
9% ( 9 % )
11% ( 11 % )
information systems and communications
365
305
287
20
22
transaction processing services
247
268
237
-8 ( 8 )
-7 ( 7 )
occupancy
229
201
188
15
16
other
363
346
311
5
7
total operating expenses
$ 2867
$ 2644
$ 2336
8
10
number of employees
19753
17604
17213
12

( 1 ) 2000 results adjusted for the formation of citistreet expenses related to salaries and employee benefits increased $ 139million in 2001 , or $ 163millionwhen adjusted for the formation of citistreet .
the adjusted increase reflects more than 2100 additional staff to support the large client wins and new business from existing clients and acquisitions .
this expense increase was partially offset by lower incentive-based compensation .
information systems and communications expense was $ 365 million in 2001 , up 20% ( 20 % ) from the prior year .
adjusted for the formation of citistreet , information systems and communications expense increased 22% ( 22 % ) .
this growth reflects both continuing investment in software and hardware , aswell as the technology costs associated with increased staffing levels .
expenses related to transaction processing services were $ 247 million , down $ 21 million , or 8% ( 8 % ) .
these expenses are volume related and include external contract services , subcustodian fees , brokerage services and fees related to securities settlement .
lower mutual fund shareholder activities , and lower subcustodian fees resulting from both the decline in asset values and lower transaction volumes , drove the decline .
occupancy expensewas $ 229million , up 15% ( 15 % ) .
the increase is due to expenses necessary to support state street 2019s global growth , and expenses incurred for leasehold improvements and other operational costs .
other expenses were $ 363 million , up $ 17 million , or 5% ( 5 % ) .
these expenses include professional services , advertising and sales promotion , and internal operational expenses .
the increase over prior year is due to a $ 21 million increase in the amortization of goodwill , primarily from acquisitions in 2001 .
in accordance with recent accounting pronouncements , goodwill amortization expense will be eliminated in 2002 .
state street recorded approximately $ 38 million , or $ .08 per share after tax , of goodwill amortization expense in 2001 .
state street 2019s cost containment efforts , which reduced discretionary spending , partially offset the increase in other expenses .
state street corporation 9 .

Question: what is the growth rate in the number of employees from 2000 to 2001?
Answer: 12.2%

Question: what is the growth rate in the number of employees from 1999 to 2000?
Answer: 2.3%

Question: what was the percent change in salaries and employee benefits between 1999 and 2000?
Answer: 16%