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structures for some of the business activities, and expenditure reductions of 10 percent in personnel costs of 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 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 costs and inflation, OMB's initiative to reduce the average grade level of staff, Gramm Rudman Hollings 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 officers.
The following motion was suggested and approved:
VOTED that the Board of Regents approves the Smithsonian Institution budget of appropriated funds for fiscal year 1993 for presentation to the Office of Management and Budget and authorizes expenditures by the Secretary in accordance therewith; any material changes in program plans incorporated in this budget shall be made only with approval of the Board of Regents or its Executive Committee.
[[underlined]]SMITHSONIAN REVISED INDEMNIFICATION RESOLUTION[[/underlined]]
Secretary Adams gave a brief synopsis of recent developments in the matter of the Smithsonian's indemnification of Dr. Richard Mitchell. In late July, the Smithsonian received a "Decision" from the General Accounting Office, which said, in part,
...the Smithsonian should not have used appropriations to finance the legal defense of a Department of the Interior employee detailed to the Smithsonian who