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SMITHSONIAN INSTITUTION FY 1997 Budget Request

Account FY 1996 Base FY 1997 Request

Salaries and Expenses $329,800,000 $346,046,000

Construction 38,700,000 16,000,000

Zoo Construction 4,950,000 5,000,000

Repair and Restoration 34.000.000 50.000.000

Sa*>' TOTAL $407,450,000 $417,046,000

Introduction

The Smithsonian Institution is dedicated to the "increase and diffusion of knowledge." Established by Congress in 1846 as an independent Federal establishment, the Smithsonian has long been recognized for its pre-eminence in astrophysics, tropical and environmental biology, the history of science, aeronautics and space science, art history, natural history and anthropological studies, and the conservation of materials. The Smithsonian is the world's largest museum, education and research complex with 16 museums and galleries and the National Zoo. Annual visitation is approximately 29 million. The total number of objects, works of art, and specimens at the Smithsonian is estimated at more than 141 million, of which 121 million are scientific specimens in the National Museum of Natural History. As one of the world's leading scientific research centers, the Institution has facilities in eight states and the Republic of Panama. Research is carried out in the museums themselves and in other locations all over the world.

This budget request has been developed based on receipt of the full FY 1996 Congressional request. Once Congress completes action on the 1996 appropriation, it will be necessary for the Institution to make adjustments to this request for FY 1997.

For FY 1997, the Smithsonian's request for all operating and capital accounts totals $417.0 million, an increase of $9.6 million over its fiscal year 1996 request. Of this amount, $346.0 million is for the Salaries and Expenses account, the Institution's basic operating budget; $16.0 million for the Construction account; $5.0 million for the Construction and Improvements, National Zoological Park account; and $50.0 million for the Repair and Restoration of Buildings account.

Salaries and Expenses

The Salaries and Expenses (S&E) request includes increases for critical core needs to support the daily operations of the Institution and reductions for workforce restructuring. The request includes mandatory increases for sustaining base operations for necessary pay requirements; utilities,

communications and postage costs; and space rental increases. These increases are beyond the Institution's control to manage and account for approximately 57% of the total S&E requested increase for FY 1997.

The Institution has identified priority program enhancements for FY 1997 in six major areas: the Smithsonian Astrophysical Observatory Submillimeter Array operations; the National Museum of the American Indian (NMAI) for continued development; the National Museum of Natural History East Court project; the electronic outreach initiative, which supports the Secretary's initiative to expand access to the Smithsonian; the International Environmental Sciences Program; and printing and photographic equipment replacement. The Institution requests 24 positions and $7,004,000 for these enhancements.

Specific details are provided within the Salaries and Expenses section of this request.

Capital Accounts

The request for the Institution's capital accounts includes funding for repair and restoration of facilities ($50 million) to achieve a balance between correcting the unacceptable condition of four older buildings and maintaining the current condition of other facilities through systematic renewal and repair. The Institution's construction request ($16 million) addresses requirements for physical plant expansion and modification to support program needs particularly in the area of collection storage and care. The FY 1997 request also includes funds to address portions of the National Zoological Park's Rock Creek Master Plan and renovations, repairs, and improvements at Rock Creek and the Conservation Research Center at Front Royal, Virginia ($5 million). Specific details of the capital accounts are provided within the applicable sections of this request.

Smithsonian Institution FY 1997 Budget Request by Appropriation Account

SMITHSONIAN INSTITUTION SALARIES AND EXPENSES

Summary of FY 1997 Change

FY 1996 Base

$329,800,000

FY 1997 Increases:

Mandatory Costs Increases Program Increases

9,242,000 7,004,000

FY 1997 Request

$346,046,000

SALARIES AND EXPENSES

1995 Appropriation $313,253,687

1996 Estimate $329,800,000

1997 Estimate 5346,046,000

This section provides specific details about the Institution's Salaries and Expenses budget request for FY 1997. Of the total amount of increases requested, approximately 57% is attributable to mandatory costs for pay, utilities and rent. The remainder is for priority program enhancements to continue critical on-going projects within the Institution.

FY 1997 MANDATORY INCREASES FOR SUSTAINING BASE OPERATIONS

The Smithsonian Institution seeks additional funds for costs that are beyond its control to manage. These costs result from legislatively-mandated pay increases, and escalating costs of insurance premiums, utilities, and rent. The Institution requests an increase of $9,242,000 for the mandatory costs shown below.

Necessary Pay and Benefits:

• Annualization of FY 1996 Pay Raises $1,299,000

• Proposed FY 1997 Pay Raises 5,031,000

• Health Insurance (Increase in Premiums) 1,040,000

• Federal Employees' Retirement System (FERS) 97.000

Total, Salary and Related Costs $7,467,000

Utilities, Communications, and Postage $1,265,000

Central Rental Space 510.000

Total $9,242,000

Necessary Pay and Benefit Costs - The Institution requests $7,467,000 for the projected higher salary and benefits costs in FY 1997 for FY 1996 staff as described below.

Annualization of FY 1996 Pay Raises - The Smithsonian has included an amount of $1,299,000 in its FY 1997 request to annualize the costs of the proposed 2.4 percent January 1996 pay raise.

FY 1997 Proposed Pay Raises - The Smithsonian requests an amount of $5,031,000 to fully fund the anticipated 3.1 percent January FY 1997 pay raise for three-quarters of a year.

Health Insurance - For FY 1997, the Institution requests $1,040,000 to cover the rising cost of health insurance premiums for employees. The Smithsonian's FY 1996 base is $13,677,000.

The requested increase includes the funds required to annualize the projected FY 1996 cost increase ($461,000 for one-quarter of the year) and to cover an estimated FY 1997 increase of $579,000 for three-quarters of the year.

Federal Employees' Retirement Service (FERS) - The Smithsonian requests an increase of $97,000 to cover the increased benefit costs of FERS participants in the Federal workforce. For FY 1997, the projected cost increase of former Civil Service Retirement System (CSRS) positions now in the FERS system amounts to $9,347,000. The Institution has in its base $9,250,000 to fund this shift, leaving a shortfall of $97,000. Additional funds will be required in the future, as the composition of the Institution's Federal workforce continues to shift from CSRS to FERS participation.

Utilities. Communications, and Posta2e - The FY 1996 Federal base of $25,716,000 is available to fund the costs of electricity, steam, gas, fuel oil, water, sewer, communications, and postage for nearly all Institution facilities. In order to provide constant environmental conditions and to ensure continuous operating equipment and communications systems, the Smithsonian requires an increase of $1,265,000 in FY 1997 to cover anticipated costs. Fiscal year 1997 increases are attributable to projected rate increases from Potomac Electric and Power Company (PEPCO) and General Services Administration (GSA) in Washington, D.C. and Consolidated Edison in New York City; continued upgrading of exhibit halls; and new construction of the National Museum of Natural History East Court Infill. Continued increased usage of linked computer systems and the expansion of data networks throughout the Institution have also led to projected increases in communication costs.

The following table shows utilities and communications estimates from FY 1995 to FY 1997; detailed explanations of each line-item follow.

Federal Utilities and Communication Costs

FY 1995 - FY 1997

($000s)

Electricity - The major component of the Utilities account is electricity. As a result of an aggressive energy management program, the consumption levels for FY 1995 were consistent with prior years; however, costs continued to rise as utility rates increased. The FY 1997 estimate reflects the 3.8 percent rate increase granted in July 1995 for PEPCO and a projected annual rate increase of 3 percent for all the electricity accounts. The FY 1997 estimate also reflects consumption increases associated with the construction of the National Museum of Natural History East Court Infill, to be located on the Mall in Washington, D.C. The continued installation of additional personal computers and upgrading of exhibit halls in most Smithsonian museums will necessitate general increases.

Steam - Steam is used primarily for heating Smithsonian facilities, year-round humidification, and hot water production. The large consumption of steam is required to maintain an interior environment to preserve artifacts. The estimate for FY 1997 reflects a projected 3 percent annual rate increase from both GSA in Washington, D.C. and Consolidated Edison in New York City. The estimate also reflects consumption increases associated with the new construction of the Natural Museum of Natural History East Court Infill.

Gas - The FY 1997 estimate for gas reflects a projected rate increase of 4.64 percent.

Fuel Oil/Water - The FY 1997 estimate for fuel oil and water reflects a 6 percent rate increase, based on historical cost increases.

D.C. Government Water/Sewer - The FY 1997 estimate for D.C. government water and sewer costs are based on a 3 percent increase to the FY 1996 cost projection provided by the District government early this year. The actual FY 1997 cost will be based on the billing provided by the District government, expected later this year or in early 1996.

Communications - The FY 1997 estimate for communications includes a 6 percent increase for domestic services and a 7 percent increase for Smithsonian Tropical Research Institute in Panama. These projected increases are consistent with actual costs over the past several years. The FY 1997 estimate also reflects the expanded use of the Internet, increased access to off-site information sources, requirements generated by increased use of the Institution's automated systems, and higher overall usage. Management improvements have reduced the growth rate for local telephone services in recent years; however, access costs to external resources continue to grow.

Postage - The FY 1997 estimate for postage reflects the historical 5 percent annual growth rate in postage costs.

Rental Space - For FY 1997, the Smithsonian requests $510,000 for uncontrollable expenses in the central rental account. The increase reflects the annual cost increase specified in negotiated lease agreements, including projected inflationary adjustments, and takes into account the offsetting Trust fund contribution for shared administrative activities and office space occupied by specific auxiliary activities on the Mall. Leased Space at L'Enfant Plaza, 1111 North Capitol Street, Archives of

American Art space in New York and Boston, Fullerton Storage, and Smithsonian archival storage space provide critical housing and storage for administrative support and some program activities which provide valuable services to the Institution's exhibition, education, research and collection programs. The projected Federal increase for the central rental account is $510,000 over the FY 1996 base of $5,340,000.

The following table reflects the projected costs for rental space for fiscal years 1995 - 1997.

Federal Central Rental Costs

FY 1995 - FY 1997

$(000)s

FY 1997 PRIORrrY PROGRAM ENHANCEMENTS

The Smithsonian Institution seeks funds in FY 1997 to continue critical on-going projects. The total increase is $7,004,000 and represents approximately 43% of the total S&E request for FY 1997.

Smithsonian Astrophvsical Observatory Submillimeter Array Operations (0 FTK/$720.000) - Since FY 1992, SAO has been developing and testing in Massachusetts components for the submillimeter telescope array which will be located on Mauna Kea in Hawaii. Ground-breaking occurred in June 1995 with completion scheduled for late FY 1997. The Smithsonian requests an increase of $720,000 in FY 1997 to fund initial operations of the Hilo, Hawaii field station for the array. This funding will support beginning operations including communications, utilities, equipment, rent, supplies and materials, and other non-salary expenses. The last increment of funding required to fully fund the operation of the array, $1.2 million, will be required in FY 1998.

The submillimeter telescope array will measurably enhance the scientific competitiveness of the United States for ground-based astronomy—observing the skies with telescopes sensitive to submillimeter waves. Submillimeter observations will make fundamental contributions to our understanding of the processes by which stars form and of the mechanisms that generate prodigious

amounts of energy in quasars and in active galaxies. SAO scientists will play a major role in unlocking these secrets utilizing the array and its unprecedented combination of wavelength coverage and ability to resolve fine spatial details.

National Museum of American Indian Operations (7 FTE/$600.000) - For FY 1997, the Smithsonian is seeking 7 FTE and $600,000 for the continued development of the National Museum of the American Indian (NMAI). The Institution must strengthen its operation programmatically at its George Gustav Heye Center in New York City. It is of critical importance, given construction delays at other NMAI facilities, that the Institution respond to the needs of the American Indian community through the full operations of the Heye Center. Further, visitor needs at the Heye Center have exceeded the capacities of existing staff. The Institution seeks to increase public programs support services at the George Gustav Heye Center in New York City through staff increases for interpreters of exhibits and exhibits planning (3 FTE/$182,000) in FY 1997.

Outreach to the American Indian community, through training programs and educational products, needs additional resources. Requested funds and FTEs will be directed toward community services outreach through training programs and interaction with Native American communities (4 FTE/$328,000).

Additional resources ($20,000) are required to support repatriation activities such as repatriation visits and the transportation of repatriated human remains and funerary objects to tribes. In light of federal legislative mandates enacted by the Congress in 1989 and 1990, as well as NMAI's own repatriation policy, the needs in this area are acute. Collections inventories, required by statute and NMAI policy, were sent to hundreds of Native tribes and communities almost two years ago. The Institution is receiving numerous requests and applications that demand substantial amounts of additional research regarding our collection.

Finally, the Smithsonian requests resources to support enhanced technology to continue the digitizing of images of objects in the collections and to use technology in support of museum programs ($70,000). This activity is connected to the Institution's overall effort to expand its electronic database and to make that database accessible at remote sites. These funds are essential to make information, educational products and data regarding the museum collections accessible at remote sites, including Native communities, schools, and cultural institutions.

National Museum of Natural History East Court Project (6 FTE/$1.336.000) - The NMNH East Court building is being constructed to provide badly needed additional space for research, collections activities, and public programs and facilities. It will also provide swing space during the Major Capital Renewal Renovation project. A communications network, including both voice and data systems, must be installed as soon as construction is completed in late FY 1997. Additionally, facility management staff are needed to prepare and maintain the new building when it opens. Without funding for these two critical requirements, this Major Capital Renewal Renovation project will be delayed.

One-time funding is required for costs associated with the telephone system ($550,000) and data network ($360,000); these funds would be no-year in nature and are in addition to the $5 million available in the Institution's Construction account to furnish and equip the building. Permanent base funding of 3 FTE and $111,000 is needed for additional facility management staff at NMNH to maintain the new building. These 3 FTE, in addition to the 9 FTE requested in FY 1996, will

complete the complement of NMNH positions needed to support the maintenance requirements of this building.

Also included in this request are 3 FTE and $315,000 in the Office of Plant Services to support initial staffing during the construction of the East Court and the facility maintenance upon project completion. These engineer/system repairmen positions are necessary to maintain the building's physical plant; funds are also requested for necessary maintenance contracts on those systems as well as elevator maintenance, and for operational supplies.

Electronic Outreach (11 FTE/$3.548.000) - One of the Secretary's key priorities is to develop, across the Institution, the ability to make the Institution's collections and information more widely available to the public. The Institution has recently made major strides in the continued development of technology in support of electronic outreach, so that virtually every city, town and household in the nation will have access to the vast resources held by the Institution. The potential benefits of this electronic outreach to the American public are inestimable. For FY 1997, in support of this priority, the Smithsonian requests an increase of 11 FTE and $3,548,000 for the continued development of collections information systems (5 FTE/$ 1,793,000) and electronic outreach initiatives (6 FTE/$ 1,755,000). The six areas of increase for FY 1997 are described below.

Collection Information Systems On-going Initiatives:

Collections and Research Information System (CRIS) at the National Museum of Natural History (NMNH) - CRIS is an emerging electronic campus, intended to transform Natural History from an isolated destination to a hub on a national learning and research network. To meet the increasing demands for access to information about the national collections at NMNH, the Institution requests 3 FTE and $890,000 to continue acceleration of CRIS development and installation.

With the requested program increase, NMNH will further develop and install the CRIS multimedia catalog module, including 3-dimensional images; integrate the catalog with the transaction management module; make critical improvements to the CRIS public access module; develop and provide public access to new educational and scientific electronic resources; and implement necessary upgrades to the communications network. The requested funds will enable NMNH to hire three computer specialists to provide user services and local area network administration for deployment of the system; to purchase computer equipment and supplies for connectivity components, database server platforms, peripherals, personal computer replacements, and supplies and materials in support of digitization efforts; and contractual support for digitization, development and installation.

Art Bureaus Collections Information System (ARTCIS) - The six Smithsonian art museums (Cooper-Hewitt National Design Museum, Freer/Sackler Gallery, Hirshhorn Museum and Sculpture Garden, National Museum of African Art, National Museum of American Art and National Portrait Gallery) together house over 350,000 works of art and are visited by more than 2.3 million people annually. The Smithsonian art museums have undertaken a joint effort to implement a single, off-the-shelf, automated Collections Information System (CIS) that will answer internal collections management needs, provide access to collections information for scholars and the general public, and serve as the essential infrastructure through which

widespread public access can be achieved. This collaborative approach among the six museums will result in significant direct cost savings for this initiative through bulk purchase, and indirect savings through one single procurement action. The museums will also achieve operability in as short a time frame as possible through the concentration on existing systems rather than on more lengthy, and costly, custom development.

The requested funding (1 FTE/$703,000) will enable the Smithsonian to complete purchase of CIS software; acquire user licenses for necessary users in the six art museums; procure imaging equipment for interface with the CIS (to tie images of collection objects to their textual data, a key component of public access); secure dedicated servers to run the CIS; and hire a CIS system administrator.

Collections Information System (CIS) at the National Museum of American History (NMAH) - The National Museum of American History's strategic plan places a top priority on developing and implementing a fully automated collections information system to develop, preserve, document, explain and make accessible its collections and research to audiences nationally and around the world. The ultimate goal is to construct and equip a permanent reference center through which researchers and visitors can access electronic information about NMAH and its collections, research, and public programs. In FY 1995, NMAH was successful in procuring a commercial collections information system to serve as the foundation software for the reference center. In FY 1996, with additional Congressional support, NMAH will establish prototype public access stations for the pubkc's use and comments, upgrade the museum's computing and communications environment, and continue the digitizing of existing photographic, audio and video collections.

The requested funding of 1 FTE and $200,000 in FY 1997 will ensure that the museum reaches its goal of opening the reference center in FY 1998 with access to over half of its collections. Funds will support a computer specialist required in support of data entry and imaging technology needs; contractual support for "imaging" the collections (that is, making images of all objects in the collections and placing them on CD-ROM); and miscellaneous supplies, materials and equipment.

Electronic Outreach On-going Initiatives:

National Museum of American Art (NMAA) - Fundamental to American Art's mission of national outreach is an ambitious plan for providing online information, images, and education programs to the American people. In FY 1995, NMAA has positioned itself on the cutting edge in the use of electronic media through several initiatives: America Online, a World Wide Web site, long-distance learning projects with Nebraska and Texas, and a CD-ROM (to be published in January of 1996). This major effort has been accomplished through reprogramming existing base resources, grants from external sources, and the unusual dedication of staff willing to assume supplemental responsibilities. American Art's programs in electronic technology, however, now require technical expertise and consistent maintenance of information beyond its current capacity. In order to take advantage of opportunities to move beyond pilot projects into a meaningful national education effort, the museum must ensure integration of its image, text, and collections databases; consolidate staff efforts on electronic outreach; raise the equipment

standards and training for staff; and achieve these goals without having to reduce equally important programs of the museum.

To accomplish these goals, the Smithsonian requests 3 FTE and $199,000 to hire computer specialists and purchase necessary equipment. The computer specialists will provide essential integration and expertise for complex online and long-distance learning projects, coordinate maintenance of Internet program sites, and structure online information for longdistance learning. A small amount of equipment ($18,000) will be necessary to support these efforts.

Cooper-Hewitt National Design Museum - The Institution requests an increase of 1 FTE and $306,000 to support electronic outreach projects at Cooper-Hewitt. Of this amount, $150,000 is for one-time funds to install a local area network and purchase necessary hardware and equipment upgrades. The remaining funding is needed to support on-going annual maintenance contracts and the salary and related support costs of a local area network manager. This funding will place Cooper-Hewitt in a position to effectively interconnect with other Institution electronic outreach efforts.

Office of Information Technology - The Smithsonian requests 2 FTE and $1,250,000 for continued support of electronic outreach-related projects promulgated through Internet. This request supports the Secretary's initiative to extend the reach of the Institution world-wide through the use of existing and emerging technologies. Using the Internet, this initiative extends access to a myriad of Smithsonian bibliographic records, collections data bases, and object images for scholarly research and education. It will provide for the migration of the Smithsonian's current research information system (SERIS) to an operating environment that will be more suitable and secure for public access. It will facilitate the enrichment of SIRIS data bases by enabling participating members to make textual and image information electronically available. The continued growth of SIRIS databases and improved information retrieval and presentation capabilities will benefit the scholarly and research needs of the Smithsonian as well as the domestic and international public.

International Environmental Sciences/Global Environmental Program (O FTE/$500.000) - The

International Environmental Sciences Program (IESP) is a multi-unit interdisciplinary effort to coordinate the Institution's long-term monitoring and evaluation activities being conducted at significant and keystone ecosystems in tropical and temperate sites throughout the world. The goal of the program is to provide other scientists, policy makers and the public sufficient information to predict and evaluate the impact of both natural and human influences which change these ecosystems. For FY 1997, the Smithsonian builds upon its two decades of monitoring data to address broader, more integrated research questions. This effort will incorporate all the Institution's biological and physical science units with oversight from the Office of the Provost. The IESP line item will be renamed the Global Environmental Program (GEP) and subsumed into the Office of Fellowships and Grants which provides support for pan-institutional and/or competitive, peer-reviewed research programs.

An increase of $500,000 is requested to initiate a Human-Natural Resources Interactions element in the GEP to extend the data provided by the former IESP monitoring base. Under the new Global Environmental Program, research will be carried out to explore in greater depth how

environments have changed over the history of human existence in an attempt to clarify current efforts to effectively manage our global landscape. By utilizing the strengths of all Smithsonian scientists and resources, new insight and understanding will emerge in ways other agencies cannot provide. The Institution will mount an aggressive development campaign to raise additional funds to support this program. The program will be coordinated with other U.S. and international agencies through the Federal Council on Science and Technology's Committee for the Environment and Natural Resources.

Printing and Photographic Equipment Upgrades (0 FTE/$300.000) - For FY 1997, the Smithsonian is seeking $300,000 for base support for the Office Printing and Photographic Services to replace aging equipment. The objective of this increase is to install a print-on-demand system for use Smithsonian-wide as the first step in replacing aging duplication equipment that has been discontinued, or for which repair parts are no longer available. This office, which serves the entire Institution, has 29 pieces of printing and duplicating equipment still in use which are more than 10 years old. Eleven of those pieces have been discontinued by the manufacturer and are costly to maintain. As a result, the unit is operating with several pieces of equipment which can no longer be repaired. This base increase will provide for the immediate installation of a print-on-demand system, followed by the phased replacement and upgrade of the unit's remaining equipment on a scheduled basis over an approximate five-year period. Over the longer term, this funding will allow for continuing phased equipment replacement to maintain state-of-the-art duplication services and avoid future repair crisis situations.

CONSTRUCTION AND IMPROVEMENTS NATIONAL ZOOLOGICAL PARK

1995 Appropriation $4,042,264

1996 Estimate $4,950,000

1997 Estimate $5,000,000

Appropriations to this account provide funding for repairs, alterations, and improvements to plant property; additions to existing facilities and minor new facilities, including exhibits; plans and specifications for construction; and renovation, restoration, and construction of new facilities outlined in the Master Plan.

The Zoo contracts for most construction and improvement projects. If contractor estimates are above acceptable cost levels, it is sometimes more economical to hire temporary laborers to accomplish the work. The account also funds related expenses such as relocation of animals during the renovation or construction of facilities and major grounds maintenance resulting from storm damage.

The National Zoological Park complex includes 163 acres in the Rock Creek Valley of Washington, D.C., and a 3,150-acre Conservation and Research Center located near Front Royal, Virginia. In keeping with the 1889 charter, the National Zoological Park endeavors to "administer and improve" the Zoo for "the advancement of science and instruction and recreation of the people."

The FY 1997 request is as follows:

Rock Creek Master Plan:

Grasslands $1,600,000

Renovation, Repair, and Improvements:

Rock Creek and Front Royal 3,400,000

TOTAL $5,000,000

ROCK CREEK MASTER PLAN

Grasslands ($1,600,000) - The Grasslands exhibit will consist of three distinct grassland habitats, each segment to be self-contained and of varying topography. Together, these three segments exceed six acres. These areas will depict three primary grassland habitats including the American Prairies (bison and prairie dogs), African Grasslands, and a Domestication area. Each exhibit will cover a wide range of topics on the central theme of grasslands through time. Topics include: the domestication of grains, human history on grasslands, the living world

beneath the surface of grasslands, medicinal and food plants of grasslands, and multiple use of grasslands throughout the world, past and present.

The American Prairies will be located between the Panda House and the bus lot bordered on the north by Olmsted Walk. This area will highlight bison and prairie dogs and include features such as the new panda house entrance with accessibility for the handicapped, an interpretation area, an expanded picnic area, a new rest room, expanded seating areas, a prairie pothole, and a prairie garden with interpretation of plants and their use for medicine and crafts.

The Domestication exhibit will be located west of the Small Mammal House and will display farmyard animals and domesticated plants. It also will feature rare cattle breeds, swine, and poultry; turf plots; and the major grains and vegetables of the world.

African Grasslands will be adjacent to the Education Building that can be entered and exited off Olmsted Walk. This exhibit will feature cheetahs and other diverse grasslands animals such as zebra, ostrich, meerkat, several species of gazelles, and vultures. The exhibit will include a subterranean segment that will highlight soil invertebrates, root systems, and abundant micro flora and fauna.

"Anticipation" areas will introduce visitors to the exhibits. These areas will be places to rest and picnic and for children to play. Visitors will be educated on a variety of grasses from every imaginable viewpoint—from information about their luncheon bread (derived from a grass) to where they can learn more about grass in the exhibit and throughout the park. The current Panda Plaza will be one of these "anticipation" areas.

The Grasslands project encompasses three phases of design and construction for the American Prairies, Domestication and African Grasslands. Thus far, funds totaling $3,279 million have been appropriated through 1995 for this project. The Institution anticipates that by the end of FY 1995 a contract will be awarded for construction of the American Prairies area and that this phase of the Grasslands complex will open in spring 1998. The $1.6 million request for FY 1997 will complete the second phase of construction, the Domestication area.

RENOVATION, REPAIR, AND IMPROVEMENTS

The National Zoological Park is responsible for the repair and preventive maintenance of its facilities. The Zoo strives to maintain a safe environment for its visiting public and staff, provide ecologically suitable and comfortable enclosures for the animals, and maintain all buildings in good condition.

Rock Creek - The Zoo's Rock Creek facilities, include almost 500,000 square feet of buildings and more than 160,000 square feet of roofs. Along with the Park's perimeter fence, measuring 10,546 linear feet, the Zoo's in-ground utility distribution system includes more

than 4,600 linear feet of high-voltage electrical lines, approximately 4,000 linear feet of medium-voltage electrical lines, 16,000 linear feet of water mains, 6,000 linear feet of gas mains, 28,000 linear feet of sewer lines, and 14,000 linear feet of storm drains. The Park's preventive maintenance program includes the care of these systems to ensure safe operation of the total facility.

The FY 1997 repair and improvement program at the Rock Creek site proposes to procure professional services to plan and design various projects. Funds will also be directed to contracted maintenance services for HVAC systems and construction services for various repair and improvement projects.

Frnnt Roy al - The Zoo's Conservation and Research Center at Front Royal is a nonpublic facility devoted to the conservation of endangered wildlife through programs in propagation, research, and international biodiversity training. The 3,150-acre facility includes more than 89 structures ranging from animal shelters to research laboratories and residences. The property has more than 2Vz miles of roads, 20 miles of jeep trails, and 30 miles of fences.

The repair and improvement program at Front Royal for FY 1997 includes renovating, repairing, and upgrading the physical, environmental, and operating systems that impact the security for the facility and improve the efficiency of energy use and scientific operations.

The request of $3.4 million for FY 1997 will support those required activities at Rock Creek and Front Royal in order to maintain safe, environmentally efficient and sound facilities as well as continue the preventive maintenance program to maintain facility integrity.

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REPAIR AND RESTORATION OF BUILDINGS

1995 Appropriation $23,954,000

1996 Estimate $34,000,000

1997 Estimate $50,000,000

The Smithsonian Institution is steward of the valuable and visible buildings entrusted to it by the Nation. These buildings include 16 museums and gallery buildings in Washington, D.C. and New York City; restoration and storage buildings in Suitland, Maryland and New York City; and centers for research and education in Panama and eight states. These facilities total more than 5.5 million square feet of space and range in age from new to more than 140 years old. The Smithsonian Institution's facilities form a vital infrastructure for accomplishment of many programs and activities, provide safe haven to irreplaceable collections and allow public access to the collections and programs by millions of visitors and scholars. Without well maintained buildings, the Smithsonian cannot continue to meet these responsibilities. Additionally, the buildings themselves are important icons of the Nation's cultural heritage, and must be preserved.

Funding for maintenance and repair of the Institution's facilities has not kept pace with the need, and this has resulted in a serious deterioration of the Smithsonian's physical plant. In 1987, the Institution identified an unfunded requirement for repair and renewal of its facilities, except for those at the National Zoological Park, totaling approximately $216 million and requested a significant increase in annual funding beginning with FY 1989. Although funding levels increased over pre-1987 levels, annual appropriations never reached the required levels. The estimate of unfunded facilities renewal requirements has now increased to $250 million.

The Prnhlem: Current Conditions

As major components of building systems age, the risk of operational failure, unscheduled building closings, and damage to the collections increases dramatically. Despite heavy use of the buildings, the Institution's program of planned, preventive maintenance and repair extends the useful life of building systems beyond normal standards. However, as systems near or exceed their service life 1 , maintenance enters the "breakdown" mode and performing frequent emergency repairs is no longer economically justifiable.

The current state of the Institution's facilities was assessed using performance predictors of a building's service life, and positioning each major facility in relation to its expected life. Because buildings are composed of a number of complex interrelated systems, a composite rate of deterioration for all building systems over an estimated 40-year life span was made and placed on a curve based upon the estimated remaining useful life. The specific parameters used to assess existing conditions

The length of time a system or component is expected to provide an acceptable minimum level of shelter or service.

were:

• watertight enclosure;

• heating, ventilating, air conditioning and electrical systems age and condition; and

• compliance with current codes, legislation, and industry operating standards.

According to the Association of Higher Education Facilities Officers 2 , a nationally recognized organization, optimal performance decreases by 40% three-quarters of the way through a system's useful life, reaching the minimum acceptable performance level. From that point on, performance declines steeply, decreasing another 40% in the next 12% of the system's service life expectancy. This is the "breakdown" mode of operation. Once a building has reached this stage, it can no longer reliably provide necessary conditions to support the programs housed within. In the case of museum buildings, this usually means that the continuous close control of environmental conditions and refuge from the elements required to preserve collections cannot be guaranteed. In addition, it costs as much as five times more to achieve this minimally acceptable performance through "breakdown" maintenance — that is, repairing or replacing a system or component on an emergency basis when it fails. Resources spent to patch existing systems are essentially squandered when the systems require full replacement. More importantly, with high public visibility and approximately 29 million annual visits, the potential for irreparable damage to the collections and unplanned system failures carries major implications for the Institution. When a building has deteriorated to this point, major renovation and renewal is the only way to regain acceptable performance.

It is clear through this analysis that the National Museum of Natural History (the Smithsonian's largest building in terms of area) and the American Art and Portrait Gallery Building are already in seriously deteriorated condition. Two more buildings, the Smithsonian Institution (Castle) and Arts and Industries, are rapidly approaching the state where the increasing risk of failure of building systems and components threatens the closing of significant portions of the building to public and staff activities, and exposes the collections to risk of irreparable damage. All four buildings currently experience regular equipment failures that speed deterioration of the facilities. Together, these four buildings represent 30% of the Institution's usable area, and all four buildings contain significant amounts of public space. The estimated cost of bringing these facilities up to at least "Good" condition level is $200 million.

Although other major Smithsonian buildings are not yet below a "Good" range in overall condition, periodic routine repair of the individual systems and components in these facilities is necessary to prevent further deterioration. Failure to renovate and renew in a timely manner hastens decline of the overall building condition.

2 „ "Understanding the Life Cycle of Buildings and Structures," by Chris Hodges, President, Facility Engineering Associates, P.C, published in

Proceedings of the 1994 Educational Conference and 8]st Annual Meeting ofAPPA: The Association of Higher Education Facilities Officers, July 10-

12,1994, San Antonio, Texas.

ThP Solution

The Institution seeks to achieve a balance between correcting the unacceptable condition of its four older buildings, and maintaining the current condition of its other facilities through systematic renewal and repair. The Smithsonian has projected the conditions of its buildings by FY 2000 under three different funding scenarios for Repair and Restoration of Buildings beginning in FY 1996: an annual level of $24 million (which represents the funding levels appropriated in recent years), an annual level of $40 million, and an annual level of $50 million. The implications of each funding scenario are described below and are as follows:

Scenario 1: Increasing Decline

If funding for Repair and Restoration of Buildings is limited to a $24 million annual level, the Institution cannot arrest the deterioration of its buildings. The Natural History, American Art and Portrait Gallery, Arts and Industries, and Smithsonian Institution (Castle) buildings will all reach the end of their useful service lives within a five-year time span. Before they reach that point, however, building systems and components will fail at an increasing rate, resulting in closings, damage to collections, and dislocation of program and administrative activities, and increased operating and repair costs. Furthermore, increasing amounts of resources will be needed on an emergency basis to maintain only marginal performance.

Scenario 2: Halting the Decline

At $40 million annually, the Institution can arrest the rapid rate of decline in the four buildings with the greatest need. However, the remaining facilities will forgo much necessary scheduled maintenance and repair, resulting in a decreased service life. With the accelerated rate of decline, the need for renewal and repair becomes more urgent. If the minimum level of acceptable performance is to be maintained across the Institution, resources will not be available to improve the overall condition of marginally performing buildings.

Scenario 3: A Planned Program of Systematic Renewal

At the $50 million level of annual funding, the Institution can manage over time a planned program of systematic renewal, and gradually achieve the desired balance between maintaining acceptable performance in some of our newer buildings, while improving the overall condition of our older buildings which have reached or exceeded their service life. The result will be a comprehensive improvement in building conditions across the Institution.

Planned Artinn: FY 1997 Rpqiipst

The Institution's goal is annual funding at the $50 million level for Repair and Restoration of Buildings. The $50 million level requested for FY 1997 represents an incremental increase over the expected FY 1996 request of $34 million, and will move the Smithsonian in the direction of more responsible stewardship of its physical plant assets.

The following chart provides a summary of projected expenditures by category of work for FY 1997-FY 2001.

C/3

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CO

CONSTRUCTION

1995 Appropriation $29,244,000

1996 Estimate $38,700,000

1997 Estimate $16,000,000

The Smithsonian needs facilities expansion and modification to support program needs, particularly in the area of collection storage and care. Plans for facility development in the coming years represent a major investment in the continuing vitality of existing programs, including collections management, research, public exhibitions and education. The Institution requests $16 million in FY 1997 to carry out these plans. The five-year program is summarized on the chart following the narrative.

This year's Construction request is as follows:

Major Construction:

National Museum of American Indian, Mall Museum $4,000,000

Air and Space Museum Extension 7,000,000

Minor Construction:

Alterations and Modifications 4,500,000

Planning: 500,000

TOTAL $16,000,000

MAJOR CONSTRUCTION

The magnitude of the collections held by the Smithsonian is estimated to be 141 million objects and specimens. Providing adequate and appropriate space for these collections emerges repeatedly as the most critical collections management priority. Because of the inadequate space, objects are stored in potentially dangerous conditions. Causes of damage to the collection range from environmental and biological factors to theft, vandalism, and natural disasters.

Many of the museum buildings are not adequately constructed to provide the quality of space needed to protect the collections. Building constraints include inadequate building closure and antiquated mechanical, plumbing and electrical systems. To compensate for their inadequacies, many museum buildings require additional environmental monitoring equipment.

Placing collections in space not intended for their storage, even temporarily and out of necessity, has both harmed the collections and limited their accessibility to staff and researchers. Because storage areas are so crowded, objects are often placed wherever space can be made. Some objects are located on top of storage cabinets, for example, rather than inside them. Overcrowding

also makes it difficult for staff to perform routine cleaning and conservation needed to protect objects from deterioration. Lack of adequate storage has forced museums to restrict their acquisition of new collections, even to the point of declining worthy bequests. As a consequence, off-site storage has become increasingly critical to the Institution.

The highest priority in the Institution's long range capital program is to meet the requirement for adequate and appropriate space in which to house, care for, and study the collections. The staff has developed a comprehensive plan to satisfy space needs for the care of its diverse collections for the next 20 years. Components of this program include the Cultural Resources Center of the American Indian Museum, the Air and Space Extension, and the Suitland Collections Center.

The other important issue addressed by the Smithsonian's capital program is the need for space for exhibitions and public activities associated with displaying current collections, such as the Museum of the American Indian Mall Museum and the Air and Space Extension. The Smithsonian requests funding in FY 1997 for expansion projects in both of these areas.

National Museum nf American Indian, Mall Museum ($4,000,000): In keeping with Public Law 101-185, which created the National Museum of the American Indian, the Institution will construct a new building on the National Mall near the foot of Capitol Hill. The location, adjacent to the world's most frequently visited museums, will provide excellent exposure for Native American artifacts and related museum activities centered on Native American culture. This facility will house permanent and changing exhibitions, reference and resource areas, an auditorium and conference center, integrated performance and retail areas, and space for other public programs.

The Institution has completed overall programming and planning for the new Mall Museum. The planning process incorporates the considerations identified by Native American groups in a series of consultations to define the programs of the new Museum as well as ideas about the physical characteristics of the building. The Smithsonian began design of the Mall Museum in FY 1995; design will be complete in Spring 1997. The initial funding request for actual construction will be made in FY 1998. The preliminary schedule calls for completion of the building and public opening in the year 2001.

The Institution projects the total cost of construction of the Mall building to be approximately $110 million, assuming a construction start in FY 1998. The Smithsonian plans to fund two-thirds of the cost from Federal sources and expects that the balance will result from the national fund-raising campaign. A total of $6,260,000 was appropriated between FY 1990 and FY 1995, but $987,000 of this amount was rescinded in FY 1995. While Congressional action on the FY 1996 request is not complete, the Institution does not expect to receive the $3 million requested since it is not included in either version of the bill. The Institution therefore requests $4 million in FY 1997 to complete design. Approximately $3.7 million in nonappropriated funds will also be used for design.

Air and Space Museum Extension ($7,000,000) - On August 2, 1993 President Clinton approved Public Law 103-57 authorizing the Institution to plan and design the Air and Space Museum

Extension at Washington Dulles International Airport and authorizing appropriations of $8 million for this purpose. This facility will permit many of the collections currently stored at the Museum's Garber facility and many airplanes, spacecraft and other artifacts kept outdoors to be safely housed in structures built to museum standards. It also will provide a restoration facility capable of handling the largest artifacts in the collection in full view of visitors, and exhibit production and visitor services facilities.

The Commonwealth of Virginia affirmed its support for a combination of financial resources to build the Extension, including commitments made in the Commonwealth's biennial budget. This unique partnership will ultimately include not only the Federal and State governments, but also the regional business community, and private sponsors from around the nation.

In keeping with its commitment to the Commonwealth of Virginia, the Smithsonian is completing the master plan of the Extension using previously appropriated Construction Planning funds. The Institution received $4 million in FY 1995 to complete detailed planning and begin design, but the funds were later rescinded. The Institution will use the $1 million expected in the FY 1996 appropriation, along with funds from the Commonwealth of Virginia, to prepare schematic design of the Extension. The Smithsonian requests $7 million in FY 1997 to complete design.

MINOR CONSTRUCTION, ALTERATIONS AND MODIFICATIONS

The Smithsonian requests $4.5 million to continue the program of Minor Construction, Alterations and Modifications. These projects are all under $1 million in construction cost and enable the Institution to provide efficient space in which its many and varied programs can operate.

CONSTRUCTION PLANNING

The Institution requests $500,000 to continue planning for future construction requirements in conjunction with its programmatic goals. The planning process will provide well defined plans and cost estimates for construction and operations prior to seeking funding or authorization of the project.

Realization of the projects in the current program will support the Institution's mandate to maintain responsible custody of the artifacts of history, culture, and natural and physical environments that it holds in trust; conduct cutting edge research; and contribute to the educational and cultural foundation of our society.

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SMITHSONIAN INSTITUTION Board of Regents

THE SECRETARY

Inspector General

Office of Planning, Management and Budget

Office of General Counsel ^-^ Office of Government Relations -Office of Communications

Under Separate Boards of Trustees

JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS

NATIONAL GALLERY OF ART

WOODROW WILSON

INTERNATIONAL

CENTER FOR SCHOLARS

Secretariat

The Under Secretary

Assistant Secretary

for

Finance &. Administration*

Other Functions*

The Provost*

Assistant Provost for Arts & Humanities

Assistant Provost for the Sciences

Assistant Provost for Educational and Cultural Programs

Assistant Secretary for Institutional Advancement*

The Under Secretary

Assistant Secretary

for

FINANCE & ADMINISTRATION

Office of [he Comptroller

Office of Contacting and Property Manage mem Office of Equal Employment and Minority Attain Office of Facilities Services

Office of Architectural History and Historic Preservation i

Office of Design and Construction

Office of Environmental Management and Safety

Office of Plant Services

Office of Protection Services Office of Human Resources Office of Pruning and Photographic Services Office of Risk and Auel Management Office of Sponsored Project* Ombudsman

OTHER FUNCTIONS

Businea* Activities**

Smithsonian Magazines

Senior Business Officer

Office of Telecommunications

Smithsonian Press The Smithsonian Associates Senior Information Officer

Office of Information Technology

* Interim Organization

Assistant Secretary

for

INSTITUTIONAL ADVANCEMENT

Nauonal Campaign for the National Museum

of the American Indian Office of Development

Contributing Membership Office of Special Event* St Conference Services

The Provost

Assistant Provost- Sciences

Conservation Analytical Laboratory Nauonal Museum of Natural History

Museum Support Center Nauonal Zoological Pari Office of Fellowships and Grant* Office of Smithsonian Institution Archives Smithsonian Astrophysical Observatory Smithsonian Environmental Research Center Smithsonian Institution Libraries Smithsonian Tropical Research Institute Office of International Relations

Assistant Provost- Arts & Humanities

Anacostia Museum Archives of American An Arthur M. Sackler Gallery and

Freer Gallery of An Center for Museum Studies Cooper-Hewitt, Nauonal Deaign Museum Hirahhorn Museum and Sculpture Garden Institutional Studies Office National Air and Space Museum National Museum of African An Nauonal Muaeum of American An

Renwick Gallery National Museum of American History

Nauonal Postal Museum National Museum of the American Indian National Portrait Gallery Office of Exhibits Central Smithsonian Institution Traveling Exhibition Service

Assistant Provost- Educational & Cultural Programs

Center for FolkJife Program* and

Cultural Studies National Science Resource* Center Office of Elementary and Secondary Education

March I, 1995

NONAPPROPRIATED SOURCES OF FUNDING

In addition to support provided by Federal appropriations, the Institution receives nonappropriated funds to expand and enrich its programs. The Institution presents an explanation of sources of nonappropriated funds (Trust funds) along with this Federal budget request to provide an overview of all applications of funds for informational purposes.

The Institution's Trust funds include unrestricted funds, restricted funds, and government grants and contracts. The estimates are subject to the uncertainty of the size of donations, grants, and contracts; to fluctuations in visitor attendance; and to the volatility of the economy, which directly affects the return on the endowment; restaurant, mail order, and museum shop revenues; Associates' memberships; and other auxiliary activities. The Institution's gross operating revenue, less the expenses of the auxiliary activities, represents the net operating revenue available for programmatic and other worthwhile purposes. The following table provides a summary of the sources of nonappropriated operating funds.

Sources of Nonappropriated Operating Funds

FY 1994 - FY 1996

($000s)

The Institution applies Trust funds in the following manner: Unrestricted Funds

The sources of unrestricted Trust funds are investment income; unrestricted endowment income; net proceeds from the museum shops, mail order, and food service concessions; sales of Smithsonian books, records, and other products based on designs and objects in the collections; theater/planetarium operation of the National Air and Space Museum; rental of exhibits for the Smithsonian Institution Traveling Exhibition Service; the Smithsonian Associates' programs (including the Smithsonian and

Air and Space magazines); the sale of posters, exhibit brochures, and publications; museum membership and admission fees; and overhead recovery on government grants and contracts the Smithsonian receives. Overhead recovery is the principal source of Trust support for central management and administrative service units of the Institution, including legal counsel, accounting, personnel, procurement, and budget. Unrestricted Trust funds also support various activities of units such as the Cooper-Hewitt National Design Museum, Center for Folkkfe Programs and Cultural Studies, Office of Development, Office of Telecommunications, Smithsonian Tropical Research Institute, Visitor Information and Associates' Reception Center, and a variety of Institutional and unit-based programs. The Board of Regents approves allotments to these activities. In addition to the support of operations, unrestricted Trust funds support the Institution's fellowship and award programs and exhibitions, as further described below.

The Institution uses unrestricted Trust funds to support various fellowship programs with projected FY 1996 expenditures of $1.7 million. The Institution also uses unrestricted Trust funds to make awards under its Collections Acquisition, Educational Outreach, and Scholarly Studies programs. In the FY 1996 budget, a total of $2.2 million has been allotted for these awards. Funding among these programs is to be distributed as follows: $631,000 to purchase exceptional objects important to the collections; $278,000 to conduct a wide range of educational outreach programs of benefit to the public, with special focus on diverse cultural audiences; and $1.3 million for innovative scholarly research projects. These include multi-disciplinary research projects initiated by the Institution's research staff, occasionally in collaboration with scholars from other institutions.

The Institution supports exhibition programs with Federal funds and donations from individuals, foundations, and corporations as well as with its Special Exhibition Fund (SEF). This unrestricted Trust fund, with $1.3 million projected in FY 1996, provides additional funds for temporary and permanent exhibitions proposed by Smithsonian units that, regardless of scale, are of outstanding educational value to the public. The SEF gives special consideration to exhibitions that approach content in imaginative ways; that allow units to explore new or expand current interpretive or exhibition techniques; that are worthy but, by their nature, unlikely to attract major private contributions; and that are likely to reach previously underserved audiences.

Restricted Funds

Restricted Trust funds include gifts, grants, and endowments from individuals, foundations, organizations, and corporations that specify the use of the donation or bequest. Projected FY 1996 restricted funds total $39.4 million, a $2.5 million increase from FY 1995. Generally, these funds provide support for a particular exhibit or research project. The Freer endowment, the largest restricted endowment, accounts for nearly one quarter of the Institution's endowment principal.

Government Grants and Contracts

Various Government agencies and departments provide grants and contracts for special projects that only the Smithsonian can conduct because of its expertise in a particular area of science, history, art, or education and because of its ability to respond quickly to certain needs. For FY 1996, government grants and contracts for operations are projected to be $45.0 million, a $4.6 million increase over FY 1995.

SPECIAL FOREIGN CURRENCY PROGRAM

Program of Grants for Research - The Smithsonian Institution, through its Special Foreign Currency Program, makes grants to United States universities, museums, and other institutions of higher learning, including the Smithsonian itself, primarily for research and advanced professional training in fields of traditional Smithsonian competence.

Excess currencies appropriations directly funded the program through FY 1986. Outlays from the budget authority appropriated through FY 1986, including the Forward-Funded Reserve for the American Institute of Indian Studies, will continue through the 1990s. In addition, since FY 1986 the Smithsonian has received allocations of U.S.-owned Indian rupees from the funds appropriated to the Department of State in FY 1985 for the establishment of the U.S.-India Fund for Educational, Cultural, and Scientific Cooperation.

For the past 30 years, the Special Foreign Currency Program has been a major source of support for research carried out by United States institutions in those countries for which excess foreign currencies are available. The full responsibility for the design, execution, and publication of research results rests with a scholar working within the program of a United States institution. Smithsonian foreign currency grants strengthen the fundamental research and training activities of collaborating institutions abroad, since most projects directly involve host country institutions and scholars. Enduring professional ties, which result from joint efforts and scholarly exchange, contribute to the strongest form of United States cultural relations with other nations. These ties also contribute to the global integration of research data in the sciences. As a result of this interaction, the gap between industrial and developing nations' scholars has narrowed. Moreover, research sponsored by the program aims, in part, to improve understanding of the environment and the management and conservation of scarce natural and cultural resources that are threatened by the rapid growth of world population and technological development.

In FY 1995, ongoing research supported by these grants included projects in archeology, anthropology, art history, biology, and astrophysics.

Forward-funded Reserve for the American Institute of Indian Studies - Since 1967, the Smithsonian has provided annual funding through the Special Foreign Currency Program to the American Institute of Indian Studies (AQS) for its fellowships, research, symposia, and publications programs, as well as its administrative costs. The Smithsonian has helped sustain this Institute and other American research centers abroad for the last 29 years because of their significant contributions to scholarship and science without regard for national boundaries and because of their special service to American scholars.

With Special Foreign Currency Program funding received from FY 1980 through FY 1985, the Smithsonian established a forward-funded reserve of $7,170,000 equivalent in rupees. This reserve enabled the AIIS to sustain its programs after the removal of India from the excess currency list in 1985. Since FY 1986, ADS, with oversight from the Smithsonian, has drawn upon the funds from this reserve for its fellowship program and administrative costs in India. The Institution continues to examine annual proposals through its peer review system before releasing funds from the reserve

account to AQS. The reserve should support AIIS programs through the 1990s in conjunction with continued support from the U.S.-India Fund. In 1990, the U.S. Congress authorized the deposit of the reserve in interest-bearing (rupee) accounts, a plan that will help to continue the viability of the fund for many years. In FY 1993, the first deposits totalling an equivalent of $4 million were made to the interest-bearing accounts. Most of the funds remaining in the reserve were deposited into interest-bearing accounts in FY 1995.

U.S.-India Fund for Educational. Cultural, and Scientific Cooperation - In FY 1985, Congress appropriated $100 million equivalent in U.S.-owned Indian rupees to the Department of State to establish the U.S.-India Fund for Educational, Cultural, and Scientific Cooperation. Since FY 1986, the Smithsonian has received allocations from this fund to continue programs in India similar to those administered under the Special Foreign Currency Program, which would otherwise have ended when India lost excess currency status in 1985. The Institution has received a total of $16.8 million from FY 1986 through FY 1995 and expects to receive $1.0 million in FY 1996 through the U.S.-India Fund. Based on current usage, the fund will be totally liquidated by FY 1997.