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The above increase of $223,000 for the Office of Membership and Development brings the total of all budget increases for that office for fiscal year 1989 to $527,000. Previous increases accelerated the addition of staff in advance of fiscal year 1990, the year in which such staff support had already been budgeted. Approximately $100,000 in the most recent increase is unbudgeted in the outyears.

[[underlined]] Fiscal Year 1990 - Budget (Schedule E) [[/underlined]]

The final year 1990 trust fund budget remains the same as approved by the Regents at the September 1988 meeting. The Office of Planning and Budget is reviewing with all bureaus and offices fiscal year 1990 income and expense numbers. Any changes will be reported in September. The Federal budget has been revised to reflect the request to Congress, based upon the Office of Management and Budget passback as previously reported. The chart below summarizes the request to Congress.

(Dollars in thousands)
[[table of 4 columns]]
[[headers are underlined]]

Appropriation Account | Request to OMB | OMB Passback | Request to Congress

Salaries & Expenses | $232,102 | $227,737 | $227,737
Zoo Construction | 8,100 | 6,500 | 6,500
Repair & Restoration | 35,000 | 26,653 | 26,653
Construction | [[underlined]]13,985 | 10,000 | 10,000 [[/underlined]]
Total Smithsonian | $287,187 | $270,890 | $270,890
[[/table]]
Senate budget hearings were held on February 27, 1989 and House budget hearings were held on March 16, 1989. Answers to follow-up questions are being provided to both appropriations committees.

[[underlined]] Other Matters [[/underlined]]

Settlement of the National Museum of African Art properties occurred on January 18, 1989. Net proceeds after closing costs will total approximately $2,175,000, which includes $100,000 paid by Homecare to obtain an extension of the original agreement. These funds will be used to repay the Institution for mortgage costs originally incurred on said properties and to cover Quadrangle's construction costs associated with the space built to house the National Museum of African Art. Homecare has decided to return all the properties to residential use with the exception of the Frederick Douglass House which will be turned into a permanent memorial.

As provided by action of the Regents at their January 1989 meeting, and as subsequently approved by the Chairman of the Regents' Executive Committee, the Institution has entered into an agreement to purchase the Fox House adjacent to the Cooper-Hewitt Museum for $3.6 million plus closing costs. The building is contiguous with current museum property and is viewed as partial solution to critical space needs. The closing is set for early May. Funding for the property will be provided in the amount of approximately $2.6 million from the proceeds of the sale of the Rolls-Royce including earned interest, with the remainder advanced as risk funds by the Treasurer until the museum