318 



Annals of the Smithsonian Institution 1999 



monwealth of Virginia, which includes providing the 

 basic infrastructure for roads, landscaping, and 

 parking. 



The Smithsonian has entered into an agreement 

 to purchase the Victor Building, an office building 

 near the Old Patent Office Building, which houses 

 the National Portrait Gallery, the National Museum 

 of American Art, and the Archives of American Art. 

 The purpose of the acquisition is to move adminis- 

 trative offices currently in leased space, reclaim 

 gallery space in the Patent Office Building by relo- 

 cating administrative and support functions, and 

 provide additional program space. Fund raising and 

 savings from amounts currently budgeted for leases 

 will service debt for this $106 million facility. 

 Planned occupancy is in fiscal year 2000. 



The groundbreaking ceremony for the National 

 Museum of the American Indian on the National 

 Mall was held in 1999. The musem is scheduled to 

 open in 2003. This project is being funded by a com- 

 bination of federal appropriations and private fund- 

 ing. At the end of the year, plans were under way to 

 raise the final 20 percent of the project costs. 



In support of these projects, the Smithsonian 

 established Smithsonian Business Ventures and 

 appointed Gary M. Beer, previously president and 

 CEO of the Sundance Group, as CEO of that organi- 

 zation. Smithsonian Business Ventures is a separate 

 entity within the Institution approved by the Board 

 of Regents with a goal of doubling business revenue 

 in five years. The Smithsonian's national capital 

 campaign, currently in its "quiet phase," continued 

 to significantly increase giving to the Institution. 



Fiscal Year 1999 Results 



Operating revenues received by the Institution in fis- 

 cal vear 1999 from all sources totaled $869.6 mil- 



FY 1999 Sources of Net Revenues 



General Trust 



7.5% 



Gov't Grants & 



Contracts 



9.9% 



Donor/Sponsor 



23.2% 



Federal 



Appropriations 



59.4% 



lion. Revenue from federal appropriations accounted 

 for S402.6 million, and nonappropriated trust funds 

 provided an additional $467.0 million. When 

 adjusted to remove auxiliary activity expenses of 

 $191.8 million, net revenues totaled $677.8 million. 

 The chart on this page reflects revenues by source 

 and broad purpose of use. 



Operations (Table 1) 



Federal operating revenue of $344.0 million pro- 

 vided the core funding for ongoing programs of the 

 Institution. The fiscal year 1999 federal appropria- 

 tion of $351.3 million represented a net increase of 

 $17.9 million over the fiscal year 1998 level. After 

 reduction of $3.4 million for one-time costs in the 

 fiscal year 1998 budget, increases totaled $21.3 mil- 

 lion. The increases included $9.1 million for manda- 

 tory increases in pay, utilities, and rent; $6.0 million 



Fiscal Year 1999 Sources of Gross/Net Revenues 



Operations 



Federal Appropriations 

 General Trust ** 

 Donor/Sponsor ** 

 Gov't Grants & Contracts 



Total Sources for Operations 



Gross 



Net* 



Percent 



Revenues 



Revenues 



Net Revenues 



($ millions) 



(S millions) 



(%) 



402.6 



402.6 



59.4 



242.7 



50.9 



7.5 



157.4 



157.4 



23.2 



66.9 



66.9 



9.9 



869.6 



677.8 



100.0 



*Net of expenses related to revenue-generating activities, e.g., museum shops, restaurants, publications, etc. 

 ** General trust is reduced from Table 1 by the Donor/Sponsor Contributions. 



