The 1988 distribution of the total appropriation for Howard University reflects the Administration's commitment to encouraging the University's financial self-sufficiency. Thus, $500,000 of the 1988 appropriation. has been made available for use in the endowment fund in accordance with Howard University's general authorizing legislation. (20 U.S.C. 123), as amended by P.L. 98-480. (The Congress could not provide funds under the Howard University Endowment Act (P.L. 98-480) because that specific authorization for appropriations had expired.) In the event that the full amount of the grant cannot be matched before the end of the fiscal year, a reappropriation is requested to extend the availability of the remaining funds so that the niversity may have additional time to rais the required matching funds.

1989 Budget Proposal

The 1989 request for the endowment fund is $3,500,000, ar increase of
$3,000,000 over the $500,000 provided in 1988. This substantial increase
for the endowment grant program demonstrates the commitment of the Admin-
istration and the University to building the endowment to reduce Howard's
dependence on direct Federal appropriations. Funds would remain available
until expended and would be spent in accordance with the provisions of the
Endowment Act, including the matching requirements.

The Administration plans to work with Howard to develop a plan for reducing
long-term needs for direct appropriations. Over time, funding for endowment
grants would increase while direct support for operations would decrease.
The long-term goal will continue to be the reduction of Howard's dependence
on the Federal Government, by gradually replacing direct appropriations
with private gifts from alumni and corporations as well as other non-Federal
revenue-enhancing measures.

To increase the incentives for donations and to encourage Howard to formulate a sound fundraising plan, the Administration is proposing legislation. to reauthorize the Endowment Act and to increase the Federal match as Howard University raises additional funds: a one-to-one match for the first $2 million and a two-to-one match for additional amounts.

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Federal funding of research activities was first proposed ir. 1985 as a supplement to improve Howard's capacity to compete for and acquire research grants. The research activity funds post-doctoral fellowships and laboratory equipment, primarily in scientific disciplines. Howard University's research activity is current funded.

Accomplishments

In 1987, $3.2 million of the research funds were used to purchase research
equipment and renovation of research laboratories. To support the develop
ment of multi-disciplinary research activities, Howard expended $1 million.
The University provided $600,000 ir. funding for individual faculty research
projects. Howard anticipates new thrusts in research programs and continued
strong support for individual faculty research efforts, particularly among
new and young members of the faculty. Enhancing research resources and
capabilities campus-wide remains a priority. By developing these strengths,
the faculty will be in a better position in the future to compete for funding.
1989 Budget Proposal

The 1989 budget request of $4,787,000 is the same as the 1988 appropriation. This level will continue to provide a Federal appropriation to help improve Howard University's ability to compete for research grants. In addition, funds to renovate research laboratories and purchase laboratory equipment will reduce accreditation deficiencies in the School of Engineering.

Howard University Hospital provides both inpatient and outpatient services and serves as a facility for training physicians, nurses and other professional and technical health care personnel. Operations of the Hospital are partially financed by the Federal appropriation and by receipts from medical services rendered by group and individual hospitalization policies, funds supplied by the Medicare program, and contractual agreements for patient care services with the District of Columbia government and other local jurisdictions. Howard University Hospital is current funded.

Accomplishments

Howard University Hospital serves as a major acute and ambulatory care
center for the inner city of Washington, D.C. It is a 515 bed inpatient
hospital with emergency facilities, and it operates 74 specialty clinics in
its Ambulatory Care Department. It is a major teaching facility that
trains physicians in 19 specialty areas. In addition, the Hospital serves
as a laboratory for numerous nursing and other paramedical trainees from
both Howard University and other training institutions. It continues to
provide leadership in many areas, most notably in the fields of radiation.
therapy, organ transplant, and renal dialysis. In 1987, the percentage of
revenue from patients amounted to approximately 46 percent of Howard's

revenue.

1989 Budget Proposal

The 1989 budget request of $21.2 million for the Howard University Hospital
is the same as the 1988 appropriation. The University agreed that the
hospital would become more self-supporting over time, as stated in the
law that transferred Freedmen's Hospital to Howard University. Over the
last few years, the hospital has become less dependent or Federal support.
As a percentage of the operating budget, the Federal appropriation has
declined from 53 percent in 1976 to 16 percent in 1987.