objective, no marrer how hard the quest. I do not urge the 

 avoidance of all potentially controversial exhibitions. When 

 they are done well, they respect both subject and audience and 

 promote genuine understanding of tough issues. 



The Smithsonian's budget problems are very real. We have 

 received sympathetic treatment in Congress which, at this 

 writing, has saved the planned Cultural and Conservation 

 Center of the National Museum of the American Indian 

 (although completion will also require the expenditure of 

 some private funds raised by the museum) and increased our 

 repair and renovation budget by 30 percent (a welcome 

 enhancement to address serious facility problems). However, 

 by not funding mandatory wage and inflationary increases 

 Congress has effectively cut our base budget by 4 to 5 percent. 



Since we cannot assume that this base cut is a one-year 

 phenomenon, it is clear that change in the management 

 structure and style of the Institution is required to prepare the 

 Institution for the challenges of the 21st century. We must 

 continue to reconfigure ourselves and to make permanent 

 reductions and consolidations. To that end, our newly tormed 

 Provost's Office (which replaces three Assistant Secretary- 

 offices) will emphasize service to the museums, research 

 institutes, and other program and support offices; coordinate 

 central oversight more efficiently; decentralize 

 decision-making; and encourage greater coordination and 

 cooperation among the various program units across the 

 Institution. 



I end this report on my first year as Secretary with an 

 enthusiastic look ahead at our 150th year celebration in 1996. 

 We see the 150th anniversary as an opportunity to say "thank 

 you" to the American public, which has supported the 



Smithsonian for all these years, by offering many of our best 

 exhibits and programming. 



Although there will be special exhibitions and events here 

 in the nation's capital, the Institution's home, the most 

 ambitious projects for our celebration will bring the national 

 museums to millions of people who may not plan to visit 

 Washington next year. If they cannot come to us, we will go 

 to them. These include a wonderful traveling exhibition, 

 "America's Smithsonian," which will take highlights from the 

 national collections to people around the country, and 

 television programs throughout the year on CBS. And we will 

 continue to expand and enhance the role of the "Electronic 

 Smithsonian." 



As we end the fiscal year, Discover Card and Intel have 

 joined the Smithsonian's Corporate Partner Program, which 

 will support the network television programming, the 

 traveling exhibition, and a celebration on the National Mall 

 in Washington on August 10, 1996, the actual anniversary of 

 the Act of Congress that established the Institution. Thanks 

 to their cooperation, the Smithsonian will be able to touch the 

 lives of Americans nationwide in ways new to all of us. 



I hope that these activities will both reinforce the splendor 

 and importance of the Smithsonian in the minds of Americans 

 and lead to expanded private support for our undertakings. 

 We have entered an era in which the Smithsonian must rely 

 more heavily on private support from individuals and 

 corporations, and this presents us with both challenges and 

 great opportunities. 



/. Michael Heyman 



Secretary 



September 30. ipp5 



