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elimination of a long-standing base deficiency in Protection Services. Each chamber approved all but $200,000 of the Smithsonian's request for $1.2 million for molecular biology initiatives. The Senate and the House reduced requests for utilities and the Federal Employee Retirement System based upon current estimates of need and modified Smithsonian estimates of lapse savings for new positions.

In the facilities accounts, the House approved the full request for the Repair and Restoration of Buildings, and the Senate reduced the amount requested for emergency repairs by $100,000. Each chamber approved requested amounts for the completion of the Whipple Base Camp and STRI laboratory construction. Also, each approved $750,000 of the $1.0 million requested for construction planning. The full Zoo Construction request was allowed. 

Of particular concern to the Institution were reductions by the House to Museum Support Center equipment, $2.0 million; Arts and Industries Building renovations, $660,000; National Air and Space Museum renovations, $520,000; rental space, $200,000; and Collections Information System, $150,000. In subsequent action the Senate accepted the House's recommended reductions of $660,000 for Arts and Industries Building renovations, $520,000 for National Air and Space Museum renovations, and $150,000 for Collections Information Systems. However, the Senate did not agree with the House reductions of $2.0 million for Museum Support Center equipment, and it levied a smaller reduction on the central rental account (only $36,000 versus the $200,000 House reduction).

The Senate denied all funding for "Necessary Pay," which would have the effect of imposing a $2.3 million reduction across-the-board for all bureaus and offices in proportion to relative staffing levels. This reduction reflects the view that the cost of within-grade salary increases and promotions can be covered by normal lapse and personnel turnover.

The Institution appealed to the Conference Committee and was successful on several items. The conferees restored the House cut to the Museum Support Center of $2.0 million and the Senate cut of $2.3 million for "necessary pay". They also agreed with the Senate's smaller reduction ($36,000) to the central rental account. The dollar level of the cuts for renovations in the Arts and Industry Building and the National Air and Space Museum were sustained. However, the cuts were changed to "general reductions" thereby allowing the Institution some flexibility in proceeding with these two important projects. Unsuccessful was the request to restore funding for the management of the Repair and Restoration Program. Also included by the conferees was the House add-on of $500,000, to contract with the National Capital Children's Museum for the development and implementation of a national educational outreach program.

[[underlined]] --Nonappropriated Trust Funds: [[/underlined]] There has been no change to the fiscal year 1989 Trust Fund budget as approved by the Regents last September. However, it is worth noting that as a result of fiscal year 1988 allotments from the contingency, these changes annualized into 1989,