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million transfer to the endowment. The Secretary's strategic planning initiative is anticipated to reduce long-term expenses with some impact on fiscal year 1996 expenses. Additionally, proceeds from the Institution's 150th anniversary promotions are expected to increase net revenues, but accurate projections have not yet been defined. As a result, the fiscal year 1996 deficit is anticipated to decrease from the amount shown above.

The following motion is suggested:

VOTED that the Board of Regents approves the proposed budget of the nonappropriated funds for the fiscal year 1996 and authorizes expenditures  y the Secretary in accordance therewith; any material changes in program plans incorporated in the proposed budget or any changes in excess of $250,000 in any unrestricted Trust fund program or administrative expenditure shall be made only with approval of the Board of Regents or its Executive Committee.

Fiscal Year 1997 (Schedule 2)

Information is provided in Schedule 2 on the fiscal year 1997 Federal Budget request only. The Institution will not formulate the fiscal year 1997 nonappropriated Trust fund budget until mid- to late-fiscal year 1996, and will seek apprival at the Regents' September 1996 meeting. Federal Appropriations: The budget request, once approved by the Regents, will become the Smithsonian's submission to the Office of Management and Budget. The fiscal year 1997 budget request totals $417.1 million for all operating and capital needs, $9.6 million over the fiscal year 1996 request pending before Congress and $53.9 million above the fiscal year 1995 budget.

Salaries and Expenses

As presented on Schedule 2, the Institution's Salaries and Expenses request to the Office of Management and Budget for fiscal year 1997 is $346.1 million. The request includes increases for mandatory cost items, such as utilities, rent, and pay raises ($9.3 million); and the following program costs ($7.0 million):

● continued support for the Smithsonian Astrophysical Observatory's submillimeter array operations ($720,000);

● continued, but limited, support for the National Museum of the American Indian for Heye Center critical needs and Indian community outreach ($600,000);

● start- up funds for the National Museum of Natural History's East Court project ($1,336,000), which includes $910,000 in one-time costs:

● continued support for the electronic outreach-related and collections information systems projects at Natural History, the Art museums, American History, and the Office of Information Technology ($3,548,000);