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large and important collection of modern art that he and his father put together over the last 30 years. 

Mr. Adams and Mr. Freudenheim briefly summarized the Smithsonian programs and activities centering around the Bicentennial of the Constitution, noting that, while these events are widely dispersed throughout the Institution, they account for more than $1 million in aggregate costs.

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

Introducing the report summarized below, Mr. Jameson emphasized that the cumulative effects of cuts in the fiscal year 1986 appropriations, together with the cuts mandated under the Gramm-Rudman-Hollings legislation, have resulted in a total reduction of 10% to the security program. He described steps which are being taken to maintain adequate levels of security for the museums, staff, and visitors, pointing out that, despite substantial budget cuts, measures have been taken to increase security at entrances to the museums and at all entrances to non-public areas.

Miss Leven outlined reasons for the improved outlook for the trust fund balance at the end of the current fiscal year, noting particularly the better-than-projected results from the auxiliary activities. She also pointed out that the Cooper-Hewitt Museum is intending to raise its admission fee to $3 and there was no objection from the Regents.

*  *  *  *

FISCAL YEAR 1986 - BUDGET AND PROJECTION

[[underlined]] --Federal Appropriations: [[/underlined]] A 4.3 percent reduction has been imposed on the Institution's fiscal year 1986 federal appropriations as required by the Gramm- Rudman- Hollings Act. The overall effects of the reduction are shown below by appropriation account:

(1,000's) 

[[4 column table]]
[[headings are underlined]]

Account | Original Appropriation | GRH Reduction | Adjusted Appropriation

Salaries & Expenses | 176,995 | 7,611 | 169,384

Construction:
-National Zoological Park | 5,518 | 237 | 5,281
-Restoration & Renovation of Buildings | 11,009 | 473 | 10,536
-Quadrangle | 3,76 | 171 | 3,805
Foreign Currency Program | [[underlined]] 2,485 | 107 | 2,378 [[/underlined]]
Totals | 199,983 | 8,599 | 191,384 
[[/table]]

All but $1 million of the $8.6 million reduction comes from operating funds. This sequestration follows a 2.6 percent base reduction and other cuts to the original fiscal year 1986 request. In total the Institution has sustained over $20 million in cuts from the amount originally requested from Congress for the year.  Compensating steps