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[[underlined]] Financial Report [[/underlined]]

Mr. Hohenlohe, Treasurer, reviewed the highlights of the Financial Report circulated in advance of the meeting.

Subsequent to the preparation of this report, the Institution was informed that the Senate Appropriations Subcommittee had taken action on the FY 1981 Congressional appropriations request, restoring $500,000 for Quadrangle planning denied by the House, and reducing requested Salaries and Expenses below House action by $3,117,000, National Zoological Park Construction by $500,000, and Restoration and Renovation of Buildings by $1,000,000.  The total Senate Subcommittee mark, expected to be passed by the full Committee, was a reduction of $4,117,000 below House action and $6,169,000 below the amended Smithsonian request.  All Senate cuts in excess of House action will be appealed to the Conference Committee.

Regarding the overall growth in the Smithsonian operating budget, from $204 million in FY 1980 to $258 million in the FY 1982 budget, Mr. Hohenlohe indicated that the $35 million increase in Federal appropriations was due to $10.7 million for inflation related costs, $4.5 million for Museum Support Center equipment and personnel, $10.0 million for a major collections acquisition program, and $9.6 million for other program growth.  This level of growth in federal operating funds represents the Institution's request to OMB, and is likely to be cut in some measure by both OMB and Congress.  The projected $19 million growth in trust funds is primarily in gross revenues of auxiliary activities (+$16 million, offset by expenses of the same amount) and federal agency grants and contracts to the Astrophysical Observatory and the Chesapeake Bay Center (+$3 million).