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reductions in personnel or regular hours or days of museum operations for visitors are not anticipated in fiscal year 1986, such measures would not be out of the question if fiscal year 1987 cuts are as severe as currently projected.) Mr. Adams pointed out that the preparation of the Five-Year Prospectus has been delayed so that the Institution can incorporate the OMB planning figures more substantially than in the past. He said that the requirement to effect reductions on a line-by-line basis is a severe handicap for the Smithsonian and suggested that the Institution, by its nature, would need to have the flexibility of making more discretionary cuts if it were to preserve its most vital activities. 

[[underlined]] ORGANIZATION [[/underlined]]

Mr. Adams reminded the Regents of their discussion of the organization of development operations at the September 16, 1985 meeting of the Board and reported that he had taken steps to partially decentralize the Institution's fundraising activities, recognizing that an increase of these activities will be of critical importance with the foreshortening of Federal resources. Under the new procedures, bureaus and offices are encouraged to undertake greater responsibility for their own development programs; to hire their own development specialists, in collaboration with the Development Office; and to report on their activities to the Development Office, which office will continue to handle projects costing over $100,000, those of a pan-Institutional nature, and those on behalf of bureaus and offices not building their own development staff.