Viewing page 7 of 109

This transcription has been completed. Contact us with corrections.

-vi-

of pledges.  Also, the Cooper-Hewitt Council has recommended an increase in Cooper-Hewitt admission fees from $2.00 to $3.00 with half price for senior citizens and students.  This change brings the Cooper-Hewitt's fees up to the level of other major New York museums.  Without objection from the Regents, this increase will be implemented in late spring and incorporated in future budgets.

[[underlined]]Policy on the Use of Trust Funds[[/underlined]]

Introducing a paper on the Smithsonian's policy on the use of its trust funds, Mr. Adams said that interest in this matter has increased with the implementation of the initial Gramm-Rudman budget cuts and the prospect of still deeper cuts in the future.  In discussion it was pointed out that the Smithsonian's trust funds are quite limited in relation to the needs of the Institution and that the endowment, while significantly increased over the last decade, was still of relatively modest proportions for an institution of this size, especially in light of the fact that 54% of the endowment is restricted to specific purposes.  It was agreed that every effort should be made to maintain a certain level of flexibility in the budgeting of trust funds so that significant opportunities need not be foregone.  Toward this end, it was generally agreed that the Secretary should continue to adhere to the principles suggested in the existing policy.

Until the implications of Gramm-Rudman-Hollings for future federal budgets are clear, a final determination on this matter is not practicable.  In the context of formulating the fiscal year 1987 budget, the Institution will study its present uses of unrestricted trust funds to see if there are areas of possible savings and reductions and/or changes to guidelines that might be made to assure continued flexible use.  Recommendations will be prepared for the Board's actions on the appropriated and trust fund budgets at the September meeting.

[[underlined]]The Five-Year Prospectus, Fiscal Years 1987-1991[[/underlined]]

In accordance with the Regents' approval on January 27, 1986 and with the Executive Committee's final consideration on April 9, 1986, the [[underlined]]Five-Year Prospectus, Fiscal Years 1987-1991[[/underlined]] has been distributed to the Regents and chairmen of the Institution's Congressional committees.  The [[underlined]]Prospectus[[/underlined]] as approved incorporates the results of Congressional and Gramm-Rudman-Hollings actions on fiscal year 1986 appropriations and the Office of Management and Budget (OMB) decisions on the fiscal year 1987 budget.  Projections of federal support for fiscal years 1988-1991 have been revised downward substantially to reflect the uncertainties surrounding future year availability of resources; projections for these years are now based on the President's budget/planning figures for the Institution as maintained by OMB.

Gross trust fund revenues over the period are expected to reach $220 million to $230 million, with the principal differences in the projections since the September [[underlined]] Prospectus [[/underlined]] associated with expectations about the [[underlined]] Air & Space [[/underlined]] magazine.  Net unrestricted funds available for program support after deduction of auxiliary and bureau activity