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funds in fiscal year 1978 to the unrestricted endowment fund as compared to $5,500,000 in fiscal year 1977. As of September 30, 1978, this fund amounted to about $17,000,000, producing annual income of some $750,000. In the Institution's fiscal year 1979 budget, the Board approved the transfer of a further $2,000,000 to the endowment. Future transfers of approximately $2,000,000 a year are projected in the fiscal year 1980 and subsequent year budgets.

The endowment's principal will not be invaded except to meet some extraordinary requirement that could not be foreseen and could not be met in any other way. In such a situation, the Board of Regents would approve a budgetary transfer and report such action to the appropriate Congressional committees.

As annual income from the unrestricted endowment fund rises, requests for federal appropriations for specific categories of expense can be expected to decline. At some point, the Board of Regents expects that some programs will be funded at the full level from income derived from the endowment. The Board will keep the Congress informed of progress toward this objective.

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VOTED that the foregoing statement of use of nonappropriated funds shall be transmitted to the Office of Management and Budget, and the Committees on appropriations of the House of Representatives and the Senate.