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Trust fund expenditures continuing to outstrip unrestricted Trust fund income, and the prospects for significant additional Federal support dim, management has concluded that financial equilibrium cannot be attained without significant changes. The final five-year prospectus will reflect a Congressionally approved reduction and reallocation plan and will be presented for the Regents' approval at their May 1993 meeting.

DEVELOPMENT OF A SMITHSONIAN POLICY STATEMENT ON EDUCATION

At the request of the Secretary, the Assistant Secretary for Education and Public Service drafted the Smithsonian Policy Paper on Education to stimulate discussion and debate about the nature, basic mandate, organization, and management of education at the Smithsonian. The Secretary has expressed his belief that the Smithsonian should accept the challenge of coordinating its activities in such a way that educational programming acquires a more specific identity within the Institution. The dialogue is expected to continue throughout the spring of 1993, with a view toward presenting a draft policy to the Regents at their May 10 meeting.

HISTORY OF THE ESTABLISHMENT OF THE NATIONAL MUSEUM OF THE AMERICAN INDIAN

The history of the National Museum  of the American Indian, excerpted and summarized from the Regents' minutes since 1976, was presented.

STUDY ON THE MATTER OF THE DISPERSION OF SMITHSONIAN ACTIVITIES

An examination of the minutes of the Board of Regents and related documentation makes it clear that approval by the Regents for operations beyond the historic center of the Smithsonian, in fact, has been limited and granted only in circumstances that have enable the Institution to:

(1) provide nearby space for the support of existing activities;
(2) carry out specialized research initiatives; or
(3) preserve the integrity of significant collections.

In recent years, the absence of cultural amenities in certain geographical areas of the Nation or the economic development interests of various communities have resulted in proposals for new satellite museums or research facilities under the Smithsonian aegis. Invariably, the proposals have been rejected by the Regents because of the burdens they would impose on current activities and their inconsistency with Institutional needs and priorities.

The Board of Regents had previously approved a motion and reaffirmed the position that it

...considers it to be the policy of the Smithsonian Institution to support other museums by supplying technical assistance, guidance, and advice... but not to be responsible for the operations and maintenance of such facilities.

A key element of this report focused on ways other than physical presence by which Institutional resources are made available to national