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Fiscal Year 1988 - Budget (Schedule C)

Schedule C continues to reflect the Institution's trust fund budget as approved by the Regents at their September 1987 meeting. This schedule also contains the Federal budget as updated for the February 1988 Regents' meeting to reflect the actual appropriation contained in the Omnibus Continuing Resolution.

Fiscal Year 1988 - Projected (Schedule D)

[[underlined]] -- Federal Appropriations [[/underlined]] Schedule D has been adjusted to reflect reorganizations and the distribution of the OMB Grade Target Reduction of $373,000, which is imposed as part of a plan to improve the management of positions and to lower the average grade level in the 11-15 grade range. There is also a salary lapse reduction of $600,000. The appropriation for the new Federal Employees Retirement System (FERS) is $6,181,000. Based upon lower than anticipated participation in FERS, the current projected costs of FERS are only about half of the appropriation. A request to reprogram the excess to cover the unfunded cost of the January pay raise and higher health insurance costs is in preparation.

[[underlined]] Nonappropriated Trust Funds: [[/underlined]] Changes in the projected figures reflect action taken by the Regents at their February 1988 meeting and the first quarter review (as detailed in the March Newsletter to the Regents). The second quarter review is currently being conducted, but results are not yet available.

Not reflected in the figures are the proceeds from the Hirshhorn estate which have been determined to be $2,771,000. The Hirshhorn Museum and Sculpture Garden wishes to establish an endowment with these funds (net of costs associated with settlement of the estate). The terms of the bequest restrict the funds to the use of the Hirshhorn Museum without any further limitations. It is the intention of the Museum to establish an endowment and use it at this time exclusively for acquisitions. The Museum would also like to retain the flexibility to invade principal if necessary at some time in the future. The following motion is suggested:

VOTED that the Board of Regents authorizes the Secretary to establish, as part of the Institution's endowment funds, a quasi-restricted fund to be known as The Joseph H. Hirshhorn Bequest Fund and to authorize the transfer of the restricted monies identified for this purpose.

Also not reflected is $5,000,000 received from the Holenia Trust, established by Joseph H. Hirshhorn. This gift is for the benefit of the Hirshhorn Museum and Sculpture Garden without any limitations. It is the intention of the Museum to establish an endowment and use it at this time exclusively for acquisitions. The Museum would also like to retain the flexibility to invade principal if necessary at some time in the future. The following motion is suggested: