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129 APPENDIX SMITHSONIAN OPERATING RESOURCES FY 1975 - FY 1988 IN CONSTANT 1982 DOLLARS [[horiz line]] This appendix eliminates inflation from the projected funding levels for FY 1982 through FY 1988 in the Prospectus and compares the resulting real (constant dollar) growth for this period to that experienced in previous years. Chart A displays resources of the Institution in constant 1982 dollars, or current purchasing power. Information for FY 1970 is also included for comparative purposes. Table 14 sets forth 1975, 1982 and 1988 financial resources by source of funds, in both actual as well as constant 1982 dollars. Federal fund estimates for FY 1983-88 have been discounted in accordance with inflation indices provided in the summer of 1982 by the Office of Management and Budget; and, in a similar fashion, trust fund estimates have been discounted by a factor of 3 percent computed cumulatively, a figure that units were instructed to use when materials were being assembled for the Institution's budget planning reviews. For FY 1970 and FY 1975, resources were inflated to 1982 constant dollars based on the Consumer Price Index. [[underlined]]FY 1975-82[[/underlined]] In constant FY 1982 dollars, growth from FY 1975 to FY 1982 equates to some $53,000,000, virtually all of which occurred in trust fund operations. FY 1975-82 was a period of healthy expansion of trust activities and associated resources. Gross trust fund income, composed of gifts, investment income and revenues generated by the auxiliary and bureau activities, expressed in constant FY 1982 dollars, grew by over $59,000,000 during this period. Most of this growth resulted from expanded Associate programs, primarily the [[underlined]]Smithsonian[[/underlined]] magazine; expanded operations of the museum shops; and new activities including the Mail Order Division, the Food Services Department, and the Direct Mail Division of the Press (formerly Smithsonian Exposition Books). In generating trust income, however, the expenses of the auxiliary and bureau activities increased in constant dollars by almost $58,000,000, and net real income provided from all nonappropriated trust fund sources increased by only $1,000,000. Inflation has had the effect of virtually negating the impact of real program growth in federally funded activities. Adjusted for inflation, real program growth over the period totals less than $3,000,000, in spite of major new federal support for operation of the museums, galleries and research facilities; initiation of the collections inventory; and equipment appropriations for the Museum Support Center. Even more dramatic is the effect of inflation on federal grant and contract levels, which, although increasing in actual dollars during FY 1975-82 by over $1,000,000, have declined by almost $9,000,000 in terms of constant dollars. [[underlined]]FY 1982-88[[/underlined]] As detailed in earlier sections of the Prospectus, an increase in gross operating revenues of over 166,000,000 is projected for the period