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The report further finds that if the Institution is successful in winning Congressional approval for its proposed Smithsonian Senior Service, our Federal and trust funded compensation programs would then enjoy rough comparability -- which is important to a sense of common enterprise and healthy morale. As a contingency measure, the report further suggests that if the 1991 Federal raise (or other future raises) should fail to materialize, Smithsonian management consider taking whatever steps it can afford in order to offer its senior Federal staff appropriately compensated trust fund positions And as an overall consideration, the report recommends that in the future market considerations be relied upon wherever possible to guide decisions in [[underlined]] both [[/underlined]] the Federal and trust fund senior compensation programs of the Institution.

Fiscal year 1990 would be a transition year, during which the salaries of present trust fund senior staff would be recomputed to a 75th percentile base, with full implementation of internal review boards and other policy mechanisms to be achieved by the end of fiscal year 1991. To assure equal treatment throughout the senior ranks, actual salary adjustments for trust funded staff would not be made until the effective date of the legislation benefitting the Federal staff. At the earliest, this would be January 1, 1991. The Institution's overall trust expenditures would then grow by approximately $450,000 for fiscal year 1991, with a full year cost in fiscal year 1992 of $600,000.

This paper, complete with its attachments, seeks the Board of Regents' permission to adopt this proposed new trust fund salary system for Smithsonian executives, with the understanding that staff will report back to the Board on any budget adjustments required to support the increases in question.

Accordingly, the following resolutions are suggested:

VOTED that the Board of Regents adopts the proposed policy statement on compensation and authorizes the Secretary to implement adjustments to Trust fund salaries as recommended on or about January 1, 1991. Other recommendations regarding administrative procedures should be implemented as soon as practicable.

VOTED that the Board of Regents endorses the provisions of H.R. 3661, legislation sponsored by Messrs. Conte, Whitten, and Mineta to ensure equitable pay for senior Federal staff at the Smithsonian through the establishment of a Smithsonian Senior Service. The Board requests all its congressional members to support this initiative.