Viewing page 15 of 164

This transcription has been completed. Contact us with corrections.

– xii –

and for staff support for the submillimeter telescope array of the Smithsonian Astrophysical Observatory. In addition, the Institution plans (1) to comment on the impact of the reduction of $2.3 million to pay the District of Columbia for water and sewer services, (2) to acknowledge the support of the House in providing add-on funding for a number of needs or other initiatives, including $3.0 million for the Repair and Restoration of Buildings account, and (3) to include an impact statement for all other amendments to the budget request.

The Trust fund budget for fiscal year 1992 was presented for approval. The budget represents a revised 1991 budget, reflecting increases for staff compensation and inflationary factors, but no programmatic increases except $1.2 million for the fund-raising campaign for the National Museum of the American Indian (which may be partially offset by some portion of raised funds). In total, fiscal year 1992 trust fund expenditures are $4.9 million over fiscal year 1991 projections, and income projections are down $6.9 million (due to projected decreases in magazine earnings which are partially offset by increased income projections in several areas of activity). Since the resulting shortfall of $11.8 million is unacceptable, management is formulating a general plan for reducing it, including fund raising, implementation of an employee and/or public parking program, new ventures or pricing structures for some of the business activities, and expenditure reductions of 10 percent in personnel costs and 20 percent in other costs. These actions would result in a revenue shortfall for the year of $3.7 million; it is not deemed prudent to make further cuts at this time. The General Unrestricted Trust fund balance will drop to a level approximately $4.1 million less than the prudent equivalent of five percent of the total trust fund operating budget. It was

VOTED that the Board of Regents approves the proposed budget of the nonappropriated funds for fiscal year 1992 and authorizes expenditures by the Secretary in accordance therewith; any material changes in program plans incorporated in the revised budget or any changes of more than $250,000 in any general unrestricted Trust fund program or administrative expenditure shall be made only with approval of the Board of Regents or its Executive Committee.

The Regents' approval was sought for the fiscal year 1993 Federal budget for presentation to the Office of Management and Budget. The request, which totals $509 million for all operating and capital needs or $114.6 million over the original planning target, continues the emphasis on infrastructure which was the basis for the fiscal year 1991 and 1992 budgets. A significant portion of the unfunded infrastructure backlog identified in the fiscal year 1992 budget process appeared to be related to the erosion of funding from the Institution's operating base and is part of the fiscal year 1993 budget. This erosion (i.e., lost purchasing power) was a result of unfunded Federal Employees Retirement System (FERS) costs and inflation, OMB's initiative to reduce the average grade level of staff, Gramm Rudman Hollings (GRH) sequestration, and an across the board reduction to all Interior agencies made in fiscal year 1991. In addition to new or expanded programs in areas of education, global change, and cultural pluralism, the Institution's request includes funding for a corps of development officers to serve individual bureaus and offices.