Viewing page 26 of 119

This transcription has been completed. Contact us with corrections.

-24-

two figures, a difference which has already increased as costs escalate faster than income grows, is a rather precise, quantitative expression of our problem.

Ordinarily one might seek to solve this problem in either of two ways -- by increasing income or reducing expenditures. The first of these, increased income, we have seen above to be dependent upon several highly speculative actions over which neither the Smithsonian nor the Post Foundation has direct control. Unless the Smithsonian were to choose to divert funds of its own to the support of Hillwood (a course of action clearly out of keeping with both the letter and intent of the Agreement), no reliable and adequate source of additional income presents itself.

A solution dependent upon cutting our costs at Hillwood is similarly elusive. This year we have been forced by a continuing shortage of funds to maintain an even leaner posture at Hillwood than previously, retaining only the minimum skeleton staff necessary to keep the estate from falling into disrepair. At that, our costs will total nearly $500,000. To hope that we could find ways to open to the public in the manner required by the Agreement without immediately increasing that figure at least some 60% would be to deceive ourselves. Indeed, Haskins and Sells, the private consulting firm retained by the Post Foundation to study the Hillwood situation,