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-3- In his Secretary's Report, Mr. Adams raised for discussion a number of items which he will raise again at the meeting of the Board, including the statue of Air and Space magazine, the emerging Corporate Associate Program, a potential solicitation of voluntary donations by visitors at one or more of the museums, the status of residents on Smithsonian Environmental Research Center properties, the death of Anacostia Museum Director John Kinard, the location of headquarters of the Archives of American Art, and the recent publicity about Federally-supported art exhibitions. Commenting on the Financial Report, Miss Leven noted that the Institution has still not reached its goal of maintaining a fund balance of the 5% of the operating budget, or about $14 million. She added that disappointing summer visitation will require a downward revision of projected revenues from museum shops and restaurant concessions for fiscal year 1990. Turning to the Federal budget, Mr. Jameson reported that the House-Senate Conference Committee on the fiscal year 1990 appropriations is now expected to meet a few days prior to the meeting of the Board of Regents. The Executive Committee felt that the thorough report on site evaluation indicated clearly that both the Dulles and BWI facilities could amply accommodate the Extension of the National Air and Space Museum. The committee shared the Secretary's view that the agenda papers could not adequately convey the full extent of the respective states' ultimate offers of financial support, and to that end they encouraged the Secretary to talk with both governors prior to the Regents' meeting, if possible. Foreseeing further such talks after the Regents' meeting, the Secretary suggested that a committee of the Regents might be formed to help in pulling together comparative best and final offers for the consideration of the Board. In other discussions, the Executive Committee complimented the Secretary for initiating a process for the review of Smithsonian organization and management. The Committee felt that salary matters at the Institution were sufficiently problematic at the present that it should give priority to special initiatives rather than await uncertain solutions to the more general problems of pay throughout the Federal agencies. And the Committee indicated its support for the Secretary's accomplishments in dealing with the issue of Native American skeletal remains in the National Museum of Natural History. Finally, the Committee suggested that the Audit and Review Committee examine the proposed strategy for renovating the Natural History Museum and bring its recommendations to the Board at the January meeting. The meeting of the Executive Committee was adjourned at approximately 1:15 p.m. REPORT OF THE NOMINATING COMMITTEE Dr. Bowen reported on the activities of the Nominating Committee over the summer. The Committee-- consisting of Dr. Bowen, Mrs. Armstrong, and Mr. Johnson-- was able to meet with the Secretary in the two meetings in person, one telephone conference, and numerous additional conversations. The Committee
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