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-9- this project is provided below in the Agenda. Additional reductions below those imposed by the House totaled $1.7 million. Chief among these were reductions of $150,000 of the $200,000 request for the Chesapeake Bay Center's watershed monitoring system; $250,000 of the $1.0 million request for the Major Exhibition Program; and $500,000 of the $8,039,000 request for the restoration and renovation of the Smithsonian facilities. Finally, the conference Committee granted the Institution's request for flexibility in distributing the $800,000 reduction in the Special Foreign Currency Program between the American Institute of Indian Studies rupee reserve and the regular grants program. The Institution has submitted to OMB requests for supplemental funding in fiscal year 1981 totaling $5,519,800. Of this amount, $5,344,800 is required to fund fiscal year 1981 costs of legislated October 1980 pay raises, and $175,000 to defray increased costs associated with the international exchange of United States Government publications. --[[underlined]] Nonappropriated Trust Funds [[/underlined]]: FY 1981 budgets were prepared last summer on the assumption that the October federal pay raise, which is also given to trust fund employees of the Institution, would be an increase of +6.2%. As mentioned at the September meeting, the higher, +9.1%, increase that was given will have an impact on trust fund budgets of some $320,000 of increased costs for unrestricted funds, $40,000 for restricted funds, and $250,000 for federal grants and contracts. A portion of these costs will be reimbursable, from grants or overhead recovery; additional funds to cover these costs will be made available from salary lapse savings and tight hiring and other expense controls. While operating results of Auxiliary Activities are available from only the first two months of FY 1981, it appears that favorable trends for
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