Viewing page 103 of 242

This transcription has been completed. Contact us with corrections.

7

4.  To provide new and renovated facilities at the Smithsonian's Washington, D. C. and field locations for purposes of facilitating research and educational programs. | Federal Appropriations

For the most part, the effects of inflation cannot be incorporated realistically into the Institution's resource forecasts for bureau and program operations.  Summary Table 1, however, attempts to show the general levels of resources that would materialize assuming legislated pay changes are forthcoming in the range of 4 to 5 percent per year and assuming federal nonpersonnel purchases occur based on price changes for future years as derived from indices supplied by the Office of management and Budget.  Similar patterns are incorporated for trust projections.  By FY 1988, resources from all sources required for various operations would increase from FY 1982 levels of approximately $253,000,000 to $419,000,000.1

Exclusive of legislated pay increases, federal salaries and expenses are projected to increase approximately $75,000,000.  Significant additions are forecast for such items as security and protection, utility costs, necessary pay increases, inflation in nonpay areas, equipping and operating the Museum Support Center and the Quadrangle, basic and interpretive research utilizing the collections and scientific and cultural information, improvement to technical and administrative support, and for physical plant operations and maintenance.

Operations supported with nonappropriated trust funds and federal grants and contracts are expected to increase by approximately $57,000,000.  These increases involve primarily the revenue producing activities, including the Magazine and the Smithsonian Press, where production expenses are predicted to increase considerably.  Detailed forecasting of federal grant and contract activities is difficult to achieve, but the Institution expects some increasing support for various operations in future years.  Finally, expenses associated with operations funded by restricted trust funds are expected to remain relatively stable, and these will continue to be accommodated largely by income related to restricted fund investments.

The trust fund forecasts assume the Institution will make measured progress in increasing its capital reserves (endowments), thus approxi-

[[horiz line]]

1  The Appendix presents a summary of those areas of operations for which inflationary effects have been incorporated into the projections, and converts institutional resource growth into constant FY 1982 dollars.