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[[underlined]] DRAFT OF THE FIVE-YEAR PROSPECTUS, FISCAL YEARS 1992-1996 [[/underlined]]

The [[underlined]] Prospectus [[/underlined]] highlights the Institution's extensive backlog of programmatic infrastructure requirements in the chapter "Stewardship of the Public Trust."  These requirements continue to receive attention as the principal area needing operating support in future years.  Other chapters emphasize the Institution's global environmental research, cultural pluralism, facility repair and restoration, and construction plans.  The Institution added a chapter this year titled "Bringing Synergism to Contemporary Public Education," reflecting the recommendation of the Planning Advisory Group, appointed by the Secretary in the fall of 1989, to place greater emphasis on education.  The continued facility and program development of the National Museum of the American Indian and the Institution's planned events to commemorate the Columbus Quincentenary also receive major emphasis in the next five-year plan.

The Smithsonian faces uncertain times with regard to future funding growth as the government deals with budget balancing problems, as competition for donor and private funds increases and as the general economic climate continues to undulate.  The resource projections in the [[underlined]] Prospectus [[/underlined]] reflect this uncertainty.

[[underlined]] Operational Growth [[/underlined]]

The Institution currently projects Federal operating funding at $428 million in fiscal year 1996.  The projections contain virtually no new program growth expect for the National Museum of the American Indian, for which operating projections are preliminary.  Projections also reflect the estimated cost increase associated with a new Administrative Service Center and expected legislated pay actions and inflation.

Trust projections for future years remain conservative, with net revenues from unrestricted operations growing moderately.  Grant and contract activity is difficult to project because of the uncertainty surrounding Federal funding for source agencies in future years, but the Institution's objectives are to maintain at least a relatively stable level of funding.

[[underlined]] Construction, Repair & Restoration, and Improvements [[/underlined]]

Maintenance and preservation of facilities continues as one of the Institution's highest priorities.  In past years, funding for maintenance, repair, and preservation of buildings has not kept pace with need, resulting in a currently identified backlog of $229 million in repair and restoration requirements.  In fiscal year 1992 the Institution is seeking $35 million in Federal support.  The Institution will require this level of annual funding in order to make progress in eliminating the backlog.

The [[underlined]] Prospectus [[/underlined]] continues to highlight seven major construction objectives for the remainder of the decade:  completion of facilities for the National Museum of the American Indian; phased development of the National Air and Space Museum Extension; restoration of the General Post Office Building; construction of a maintenance facility at the Tropical Research Institute;